From the 1st of July, the ATO are now allowed to disclose tax debt information of any business that has not effectively engaged with them to manage those debts.
Initially, this new procedure will apply to ABN holding businesses with a tax debt of more than $10,000 that is at least 90 days overdue.
It is important to note, once the report is on the business credit file, it will remain there for a period of five years.
With over $19 billion in overdue tax owing to the ATO, including a massive $13 billion by small business with a turnover of $2 million or less, the government estimates this measure will assist with collecting some of this debt, but also allow credit managers to identify high risk businesses.
Most mainstream banks will not approve loans when a business has an outstanding ATO debt.
This measure will also provide a competitive edge to businesses with good payment and compliance history.
If you would like some further information, please feel free to contact our BizTax team on 03 9690 5700.