11 January 2018

Transparency of business tax debts

The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, today released exposure draft legislation and explanatory material for public consultation that will authorise the Australian Taxation Office (ATO) to disclose business tax debts to credit reporting bureaus where the businesses have not effectively engaged with the ATO to manage their debt.

The draft legislation requires the ATO to consult with the Inspector General of Taxation before tax debt amounts are reported to credit reporting bureaus. 

"Improving transparency by making overdue tax debts more visible will provide businesses and credit providers with a more complete assessment of the creditworthiness of a business," Minister O'Dwyer said.

"This will reduce the unfair advantage obtained by businesses that do not pay overdue tax debts, and encourage businesses to engage with the ATO to manage their tax debt."

The exposure draft legislation and explanatory materials are available on the Treasury website, and interested stakeholders are encouraged to provide their views by Friday 9 February 2018.

Submissions can be emailed to businesstaxdebt@treasury.gov.au during the consultation period.