As mentioned previously, the ATO is now chasing small business debts and encouraging companies to get back on track by returning to pre-pandemic compliance.

In a recent address to the Tax Institute, the ATO deputy commissioner said businesses “now needed to move from the Covid payment culture into a normal payment culture.” More than $50 billion in overdue tax payments is currently owed to the ATO with small businesses contributing $33 billion to that debt. Top areas of concern are unpaid superannuation guarantee charges (penalties), the $23 billion in unpaid BAS payments, and debts that are more than two years old.

With the ATO moving toward more aggressive debt collection to recover the billions that remain unpaid, businesses are reminded to make allowances for their regular monthly GST payments, withholding tax, and super payments.

While many businesses may be struggling in this uncertain environment with higher interest rates and rising inflation as we head toward Christmas, the tax office is always open to making arrangements for those who are genuinely struggling. The key is using a qualified tax adviser who can advise you about your options, payment plans and, if needed, to liaise on your behalf.

Don’t wait for the ATO to knock on your door. Get in touch with our friendly accounting team for an appointment as soon as possible. It might be the biggest stress reliever you’ve ever tried.