Tax debt

Credit Reporting Bodies to start reporting on tax debt

Back in 2019, the Federal Government passed a law to allow the Australian Taxation Office to start reporting tax debts to Credit Reporting Bodies. Thankfully this was put on hold in response to COVID-19. However, we are now being warned that the Australian Taxation Office is likely to resume its pursuit of unpaid tax debt.

Reports on a desk calculating tax debt

So what does this mean for you?

If you have a tax debt of greater than $100,000 without a payment plan in place or being negotiated, the Australian Taxation Office can report this debt to Credit Reporting Bodies. This can affect your credit score and potentially your ability to secure future lending.

How do you avoid being reported?

If you have a debt of less than $100,000 you don’t have to worry at this stage. If you have a debt that is greater than $100,000, ensure you are arranging a payment plan for this. Speak to your accountant if you are unsure if this will apply to you or how it can affect you.

How can we help?

We have lenders that we can work with to free up your cash flow and relieve the pressure on your ATO tax debt.

Contact us today to discuss your situation and how we can help.

Phone:  07 4639 1011 or submit an enquiry

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