If you’re running a business and owe the Australian Taxation Office (ATO) more than $100,000, and it's been outstanding for over 90 days, this article is for you. 

Ignoring your debts with the ATO could not only harm your business but also your credit profile. 

If you want some support, reach out to us and let’s see if we can help. 

What can happen?

The ATO has the power to disclose your business debt to credit reporting agencies. If they do, this information will appear on your credit file, whether you're operating as a company or as an individual with an ABN. This could severely limit your ability to apply for loans, purchase stock on credit, or open new accounts, as creditors may refuse to deal with you or put you on cash-on-delivery terms.

You may think, "I’m making small payments to the ATO, so I’m okay." But unless you’ve set up a formal payment plan with the ATO, they won’t recognize this as a proper arrangement. Informal payments, no matter how regular, won’t stop them from reporting your debt.

The criteria for reporting

The ATO will report your debt if:

• You have an Australian Business Number (ABN).

• Your tax debt is over $100,000 and overdue by 90 days or more.

• You aren’t engaged with the ATO to manage your debt.

How to prevent reporting

If you’re engaging with the ATO by setting up a payment plan or lodging an active complaint, they won’t report your debt. For example, they offer options such as:

• A formal payment arrangement, as long as you comply with the terms.

• Active complaints or reviews regarding the debt with relevant bodies.

• Exceptional circumstances (e.g., serious illness, natural disasters) can also delay reporting if you notify them in advance.

What can you do?

If you’re in this situation, act quickly. If the ATO decides to report your debt, they will send you a written notice, giving you 28 days to take action before the disclosure. Ignoring this can have long-term consequences for your business.

Need help?

If you’re unsure about what steps to take or need help negotiating with the ATO, get in touch. We can help you protect your credit and find a solution before it’s too late.

If you want some support, reach out to us and let’s see if we can help.