Posts tagged "ato debt recovery"

Imagine believing you owed nothing to the ATO, and finding out decades later that you did, and that the tax office had been accruing interest and penalties on it for decades.

The ATO currently has about $50 billion worth of collectible debt, which is the highest it's ever been. It’s an 89% increase on pre-COVID figures. 

Australia’s latest lockdowns pose a challenge for the ATO: start collecting the business debts outstanding from 2020 and risk putting companies under further pressure, or allow those debts to continue to grow.

The Morrison government has proposed to give small businesses an easier way to pause debt recovery action pursued by the tax office.

The ATO will resume issuing penalties and taking compliance actions against businesses that have outstanding debts or lodgement obligations, after pausing this activity during the pandemic.