From 1 July 2017, the Australian Taxation Office (‘ATO’) will be allowed to disclose to credit reporting agencies the tax debt information of businesses that have not effectively engaged with the ATO to get those debts under control.
The measure will initially only apply to businesses with a tax debt greater than $10,000 and is at least 90 days overdue.
Businesses that fail to address outstanding debts prior to the financial year 2017 – 2018, can expect their credit rating to be adversely affected.
If businesses don’t secure payment arrangements with the ATO prior to 1 July 2017, this could greatly impact their ability to secure finance in the future or to secure supplier credit arrangements.
For further information, contact Stephen Rockliff of Rockliffs Lawyers.