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Small Business Debts to the Tax Office may be reported to credit agencies

From 1 July 2017 the ATO has the power to report small business tax debt for debts of over $10,000 to credit reporting agencies under a new measure announced in the federal government's mid-year budget update.

Taxpayers who effectively engage with the ATO to resolve their debt will not have it reported.

Under the current plan (which may change) tax debts will only be reported where:

  • the debt is for a taxpayer that has an ABN
  • the debt is over $10,000 and unpaid for over 90 days
  • the debt is not in dispute
  • no payment plan has been established or an existing payment plan has defaulted

The ATO will notify a taxpayer that it intends to refer its tax debt to a credit reporting bureau before it passes on the information. A Tax Office statement with further information can be found here

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