ATO’s New Approach to Unpaid Tax and Super: What You Need to Know as a Small Business Owner

The ATO’s New Approach to Unpaid Tax and Super: What You Need to Know

Hey, business owners!

The ATO has recently changed how it handles unpaid tax and super, and it’s important to know what’s happening. As of October 2024, the ATO is focusing on businesses that don’t respond to their reminders. If you’ve been ignoring those texts or letters, now’s the time to act.

Why Is the ATO Cracking Down?

Unpaid tax and super not only affect the ATO but also put other small businesses and employees at risk. The ATO wants to ensure businesses that do the right thing are not unfairly impacted, which is why they’re being tougher on businesses that don’t engage with them.

What’s Changing?

If you owe the ATO for GST, PAYG withholding, or employee super and you’re not responding, the ATO will take stronger action faster. Here’s what might happen:

1. Director Penalty Notices (DPNs): If you’re a director, you could become personally responsible for unpaid debts.

2. Garnishee Orders: The ATO can take money directly from your bank accounts if you ignore their reminders.

3. Multiple Company Directors: If you’re a director of more than one company, the ATO might go after all your unpaid debts across your businesses. This could put your personal assets at risk.

How to Avoid This?

Don’t worry—you can easily avoid these tougher actions if you take steps early:

1. Pay or Set Up a Payment Plan: If you can pay in full, do it. If not, set up a payment plan to manage your debt. If your debt is under $200,000, you can even set it up online. Don’t wait—reach out to the ATO or your BAS agent (that’s me!) for help.

2. Financial Hardship Options: If you're struggling, there are other options like delaying payments, interest waivers, or even accessing super early in some cases.

Key Message: Act Now!

The main takeaway is simple: don’t ignore your tax and super payments. If you can pay, do it. If not, set up a plan. Ignoring the problem will only lead to tougher actions, which can make things harder down the road.

If you have any questions or need help setting up a payment plan, reach out to me. I’m here to help you stay on track!

Let’s tackle this together!