In the past the ATO have not been permitted to disclose debt information to credit agencies……but that may all change.

If the proposed legislation is passed, the ATO will start reporting outstanding debts, subject to certain conditions, to credit agencies. What does this mean? Fail to pay your ATO debts on time and your credit rating will suffer.

The proposed legislation is aimed at businesses that meet the following conditions:

If legislation passes, businesses that meet the above criteria may find it difficult to obtain supplier credit accounts, approval for chattel mortgages, leases and hire purchases, apply for overdraft facilities, refinancing and even more scrutiny by your bank come time for your annual review.

Once the ATO notifies the credit agencies of a default, it stays on your credit report for 5 years – even if you pay the debt off within that time. 

So, if you have been having trouble paying your tax debt, or perhaps you just put the ATO at the bottom of your ever increasing pile of bills, it is time to take action and avoid that dreaded strike against your credit score. 

The good news is we can help you.

Here at Maxwell & Cameron we work closely with businesses to offer strategic business planning and advice with an aim to improve profit and cash flow. Now is the time to start managing your business. Speak with us today before it is too late.New Post