ATO’s New Debt Collection Measures
We want to inform you about significant changes the Australian Taxation Office (ATO) has implemented regarding the collection of unpaid taxes and superannuation obligations. Our goal is to ensure you understand these changes and their potential impact on you and your business.
Key Changes To Be Aware Of
- Disclosure of Business Tax Debts to Credit Reporting Bureaus (CBRs):
- The ATO is actively issuing notices of intent to disclose overdue tax debts exceeding $100,000 that are more than 90 days overdue.
- Businesses have 28 days to engage with the ATO or arrange payments to prevent disclosure. Disclosed debts may affect your credit ratings, financing options, and supplier relationships.
- Director Penalty Notices (DPNs):
- Company directors may be personally liable for unpaid PAYG withholding, GST, and superannuation obligations.
- Non-engagement may lead to garnishee notices, legal actions, or bankruptcy proceedings
- Garnishee Notices:
- The ATO can recover debts directly from financial institutions, employers, or other holdings funds on your behalf
- Tailored Support Available:
- The ATO emphasizes early engagement and offers payment plans or alternative arrangements to manage debts. For debts under $200,000, these plans can be arranged online or via their automated service.
Below is a comparison of the current debt collection process and the new measures recently introduced:
How Can We Assist
We strongly encourage you to review your ATO accounts and ensure all obligations are up-to-date. If you’re unable to pay your tax debt in full, please contact your account manager to discuss:
- Setting up a payment plan with the ATO
- Addressing any concerns or queries regarding your accounts
- Exploring options to avoid escalated collection actions.
It is crucial to address these matters promptly to minimise potential consequences to you and your business. Our team is here to assist you with navigating these changes.