Stricter ATO Policies on Tax & Super Debt: What You Need to Know

Stricter ATO Policies on Tax & Super Debt: What You Need to Know

Posted 1 Nov '24

Stricter ATO Policies on Tax & Super Debt: What You Need to Know

The ATO has confirmed it is changing its approach to collecting unpaid tax and superannuation debts.

Their new strategy aims to act more firmly and swiftly regarding outstanding obligations, making it essential for business owners to stay informed and take proactive steps.

What’s New from the ATO?

Here are some key points from the recent ATO update:

  1. Early Engagement: The ATO is shifting to an earlier engagement model. They will start reaching out as soon as they detect signs of financial distress or non-payment. This proactive approach is designed to resolve issues before they escalate into larger debts.
  2. New Payment Plans: For those facing temporary financial difficulties, the ATO is introducing tailored payment plans that take into account specific circumstances while still prioritising timely debt resolution.
  3. Enhanced Digital Support: The ATO is improving its digital services to help businesses understand their obligations and manage payments more effectively. This includes the ability to set up direct debit arrangements and access new tools to track due dates and outstanding amounts.
  4. Serious Consequences for Non-Compliance: Businesses that persistently fail to meet their tax and super obligations can expect more severe recovery actions. This includes garnishee notices and, if necessary, legal action. Continuous non-compliance may also lead to being reported to credit agencies.

Why Being Proactive Matters

Taking a proactive approach to tax and super obligations is crucial for business success. Engaging early with your accountant can help you navigate these changes effectively and avoid potential issues down the line. By staying ahead of your obligations, you can mitigate the risk of penalties, ensure compliance, and maintain a positive relationship with the ATO.

Not paying tax impacts not only your business but also the wider community. The ATO is focused on preventing businesses from putting other small enterprises and employees at risk. Acting early enables you to get back on track and sustainably manage your finances.

What Can You Do?

Here are a few steps you can take in light of the ATO’s revised approach:

  • If You Can Pay: Prioritise your tax and super obligations. Paying on time can prevent interest accrual and firmer collection actions from the ATO.
  • If You’re Facing Hardship: If you are unable to pay in full and on time, explore available options, including setting up payment plans. If your debt is less than $200,000, you can establish a plan online through the online services for business.
  • For Genuine Financial Hardship: If you are experiencing genuine financial hardship, additional options may be available, such as deferring payment due dates and interest remissions.

Final Thoughts

The key takeaway is clear: if you can pay, you should do so. If you need more time, do not ignore your obligations—acting early to set up a payment plan or seeking assistance is essential. Engaging with your accountant can make all the difference in navigating these changes successfully.

For the full details on the ATO’s revised approach, check out the official ATO link here: We're changing our approach to collecting unpaid tax and super.

How can we help?
We provide business advisory services including cash flow planning to our business owner clients.
Let’s work together to ensure you stay informed and compliant during these changes. If you have any questions or need further assistance, feel free to reach out.

Further Information
Contact Jenna Lawes of this office on 0418 303 323.


    Related News


    As the end of the year creeps up, it’s the perfect time to step back, review your business finances, and get ahead of the game before tax planning season hits. A little proactive planning now can save your small business money, keep the ATO happy, and make your life a whole lot easier. Here are five practical tax tips to help your business wrap up the year on a high note.


    Need a hand? We’re here to make tax time simple, so you can get back to doing what you do best—running your business. Get in touch with us today to start planning.

    Let’s keep things stress free and set you up for success in 2025.

    Further Information
    Contact Jenna Lawes of this office on 0418 303 323.


    On 18 September 2024, the ATO announced important updates regarding payday superannuation obligations. Key changes include streamlined reporting requirements for employers and new deadlines for contributions. These updates aim to enhance compliance and ensure that employees receive their superannuation on time.

    Stay informed keeping your business compliant and to make the most of these changes! 

    Further Information
    Contact Jenna Lawes of this office on 0418 303 323


    Queensland businesses: Have you heard about the Business Basics Grant? It’s a fantastic opportunity to receive up to $7,500 in funding for strategic planning, cash flow forecasting, and more!

    This is Round 6 of the Business Basics program, focused on business enhancement. Successful applicants can use the grant to boost core skills and adopt best practices.

    Further Information
    Contact Jenna Lawes of this office on 0418 303 323


    Contact Us

    07 5222 9920

    hello@jlbusiness.com.au

    PO 3066 GYMPIE DC QLD 4570

    Wed - Fri 8:30AM - 3:30PM

    Like many small business owners, we are available by appointment outside of regular hours.