Finance News
ATO DEBT COLLECTION TO RAMP UP
01 Apr 2022

We have been receiving a lot more phone calls and letters from ATO this year and clearly, the focus of these has been to inform individuals and clients of their existing tax debts and to try and enter into a dialogue with them. This communication generally had not given any deadlines or issued any threats of escalation.

Unfortunately for those with tax debts, this next step is about to commence with the ATO announcing they will be sending out correspondence to certain taxpayers with tax debts of their intention to notify credit agencies of this debt. The ATO will give taxpayers 28 days to respond and engage with the ATO to avoid this communication being sent and the associated impact on the taxpayer’s credit rating. The ATO is seeking to have the debts paid in full or at the very least a payment arrangement agreed to.

We strongly recommend taxpayers start to put plans in place and allocate cash flow to begin paying these tax debts. This means not only will taxpayers need to pay a committed regular amount (usually each month) to reduce their tax debts, they will also have to budget for lodging and paying all future tax commitments on time and in full (otherwise they will breach the terms of the ATO payment plan). It is important to plan for this and engage the ATO in the right manner to get the best payment plan in place.

If you need assistance with your tax debt, please do not hesitate to contact us on 9720 6811.

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