ATO TO DISCLOSE TAX DEBT DETAILS TO CREDIT REPORTING BUREAUS
One of the tax related measures the Federal Treasurer announced as part of his Mid-Year Economic and Fiscal Outlook 2016-17, to apply from 1 July 2017, was to allow the ATO to disclose to Credit Reporting Bureaus/Agencies the tax debt information of businesses that have not effectively engaged with the ATO to manage those tax debts.
The ATO does not currently provide this information to the Credit Reporting Bureaus/Agencies. This measure will initially only apply to businesses with a tax debt of more than $10,000 that is at least 90 days overdue.
From 1 July 2017 Businesses will need to take more care to manage their ATO tax debts, by for example, contacting the ATO to make arrangements to put in place an authorised payment arrangement. Businesses that ignore their ATO tax debts could have their credit rating adversely affected, making make it more difficult and/or costly to obtain finance.