The ATO have recently released their 2023-24 Corporate Plan, and it clearly demonstrates they mean business. With $45 billion in unpaid business tax debt, and $30 billion of this owed by small business, the ATO are very clear in expressing the measures that will be taken to retrieve this debt and to work with businesses to prevent debt accumulating.

As the ATO keeps pace in times of change, their approaches are adapting and evolving to support business whilst serving as Australian Government’s principal revenue collection agency.

With addressing collectable debt articulated as one the eight key focus areas in the plan, we can certainly expect to see stronger active debt recovery actions taken in the coming year.

Key takeaways from their plan include:

Data intelligence will drive strategy

With the ATO continuing to invest in data and digitalisation, there will be greater use of client segmentation to assist predict payment behaviours and enable the creation of diverse treatments based on this knowledge. Actions here will be tailored to accelerate payment outcomes for each segment.

Differentiated and targeted debt collection interventions will be implemented

Whilst targeted strategies have always been part of the plan, there is a real emphasis on differentiation this year, so we expect to see a range of interventions uniquely tailored to address collectable debt. High value and aged debts are a clear target. We can expect to see continued increases in the number of Director Penalty Notices, and their new weapon against persistently non complaint businesses owing $100,000 or more: credit referrals. We can also expect to see DPN’s issued without prior warning where companies have failed to make their obligated payments.

There will be increased resourcing focused on debt collection

ATO efforts to strengthen debt prevention and debt recovery initiatives will be enhanced. If you have the capacity to pay, and you fail to comply, stronger actions will be instigated. Resources will focus on timeliness of payments to ensure compliance with employer obligations.

There are no secret approaches

Communication is key here. The ATO intend on full transparency of their debt recovery initiatives. The business community can expect great clarity on payment expectations and there will be no ambiguity around the consequences for clients who choose not to engage. At Tax Assure, we make sure you are kept in the know, and can understand what to expect if you face business tax debt.

With firmer actions a given, the ATO are clear on their intent to act swiftly with clients who avoid their payment obligations. The take home message from here is well defined. Any pandemic related grace periods or softer approaches have long passed. If you have a business tax debt, you need to face it head on, engage with the ATO with the intention of becoming compliant.  

At Tax Assure, we understand how dauting and stressful paying off tax debt can be, and that is precisely why our niche expertise exists. We step in to assess your situation, map out solutions, and where required, negotiate on your behalf with the ATO.

Compliance doesn’t necessarily mean paying in full, it means being in compliant ATO payment arrangement. Working with the ATO, and other financial providers where necessary, we can step in to collaboratively activate a plan that satisfies the compliance requirements of the ATO without compromising cash flow and business continuity.

Contact us today to gain help in relieving the burden of your tax debt.

Get the tax debt specialists working for you

Whether you are in the situation of a business tax debt or individual ATO debt, there is one team that has you covered.

The experts at Tax Assure are able to take you through your tax debt so you are clear on what exactly is owing and the special step-by-step approach to manage that debt.

There is great peace of mind knowing that you have a team who are able to help you with your ATO debt in the most effective and efficient way.

It’s time to take the worry and stress out of the equation. The best time to deal with your debt is right now.

Contact us today for a better financial future.