The Government plans to introduce measures to allow the Australian Taxation Office (ATO) to disclose tax debt information of businesses to Credit Reporting Agencies.
The measure will commence from the date of Royal Assent and the ATO will have the ability to report on any tax debt in excess of $10,000, which is more than 90 days overdue for payment or where there is no formal arrangement in place to repay the debt, or this arrangement has defaulted.
The default would remain recorded on the businesses credit file for up to five years, even if paid in full. This could create difficulties for you to obtain credit from lenders in the future, as some lenders take a dim view of tax debt.
If you have current ATO debt we strongly recommend you discuss this with your Bookkeeper or Accountant to ensure action is taken to avoid any default listing.
