Businesses with large tax debts may become available to credit reporting
- Arnold Shields
- Sep 4, 2019
- 2 min read
Updated: May 21
If your business has an outstanding tax bill with the Australian Taxation Office (ATO), especially one exceeding $100,000, now is the time to act.
The government is proposing amendments to tax legislation that will allow the ATO to disclose significant tax debts to credit reporting agencies. Under the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No.1) Bill 2019, businesses listed on the Australian Business Register that have overdue tax debts over $100,000, and are not actively engaging with the ATO, could have their debt information made public via credit bureaus.
What This Means for Your Business
This change will directly impact your creditworthiness and reputation in the market. Once disclosed:
Your business credit rating may be downgraded
Access to finance and trade credit may be restricted
Suppliers and customers may reconsider working with you
The intent of the proposed law is two-fold:
To encourage businesses to proactively manage their tax obligations
To alert other businesses to potential payment risks
The Importance of Early Engagement
The best way to avoid being exposed under this measure is simple: engage with the ATO. Whether through a payment plan, dispute resolution or formal communication, active engagement demonstrates responsibility and reduces the risk of public disclosure.
If you're struggling with mounting tax debts or unsure how to navigate the system, now is the time to act.
How Dolman Bateman Can Help
At Dolman Bateman, we understand the serious consequences that come with tax debt. Our team of experienced accountants and business advisors can:
Assess your current financial position
Negotiate with the ATO on your behalf
Develop cash flow solutions to help you meet your obligations
Protect your credit standing
Don’t wait until your business is flagged as a credit risk. Call Dolman Bateman on +61 2 9411 5422 for a confidential, obligation-free discussion or book a meeting below.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
