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ATO gloves off on small business debt

BASAAG Co-Chair, Kerrie Jarius, recommends BAS Agents raise debt concerns with clients urgently, with ATO now enlisting external debt collectors.

New ATO debt collection initiatives, which include the appointment of external debt collection agencies, insist small businesses must address their debt.

Australian Bookkeeper’s Association (ABA) Director and Co-Chair of the ATO’s BAS Agent Association Group (BASAAG), Kerrie Jarius, said that the issue of debt collection has been a huge topic for BASAAG which small business owners can no longer ignore.

Collections for small businesses ramp up further

“The gloves are off,” said Kerrie. “The ATO is putting into place more initiatives that leave no place for small businesses to hide. Credit agency referrals by the ATO could mean your suppliers know that you owe the ATO money and their use of Director Penalty Notices (DPNs) will have dire personal consequences for some directors.  

“The ATO has enlisted the support of external collection agencies specifically to handle small business debt,” continued Kerrie. “No longer are just large debts chased in the tens and hundreds of thousands, with businesses receiving phone calls for even small debt amounts.”

BAS Agents in best place to raise concerns with clients

Kerrie says that BAS Agents are well placed to raise the importance of this issue early with struggling clients, and new ATO online functionality can help ease the administrative burden.

“Bookkeepers are normally the closest adviser and first to see when a client is struggling,” said Kerrie. “Sometimes clients stick their head in sand when struggling, but if they stick their head in sand too long then it may be too late.

Improved ATO online services available to BAS Agents

“Raise your concerns early with your clients, and work with them and their accountant to tap them into ATO debt arrangements,” said Kerrie. “Really, if it’s not the bookkeeper, then who will?

“BASAAG welcomed one initiative that has increased the debt amount that BAS Agents can arrange a payment plan via Online Services for Agents (OSfA) from a maximum of $100,000 to $200,000,” said Kerrie.  “This is a win for BAS Agents, reducing the time it takes to phone the ATO for clients.

“There is also a more streamlined short-term lodgement deferral process available on OSfA to BAS Agents which can have deferral requests assessed as quickly as 48 hours.”

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Category
ABN
Published
12 Jul 2024
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