Take action now on unpaid Tax and Super

New ATO Approach: Collection of Unpaid Tax & Superannuation

 The Australian Taxation Office (ATO) is changing its approach to collecting unpaid taxes and superannuation, focusing on businesses that have not responded to reminders. If you have overdue obligations, it’s crucial to act now to avoid serious consequences.

What’s Changing

 The ATO is now prioritizing businesses that consistently ignore their reminders about unpaid tax and super. This targeted approach will focus on businesses that haven't responded to SMS and letter notifications.

If you haven't set up a payment plan for any unpaid GST, PAYG Withholding, or Super, the ATO is likely to move quicker to action Director Penalty Notices (DPNs).

Also, if you are a director of multiple companies the ATO will look at the total debt across all your related entities. Failure to engage with the ATO could put your personal assets at risk.

What You Should Do Now

1. Pay in Full or Set Up a Payment Plan - If you can pay your tax or super obligations, do so as soon as possible. If not, set up a payment plan.

2. Explore Additional Options If You’re Facing Hardship - If you’re experiencing genuine financial difficulties, options like deferring payment due dates, interest remissions, or compassionate release of super may be available. 

3.Act Early - Don’t Ignore It - It is important not to delay. Acting early can help you avoid interest charges and more severe collection measures from the ATO.

The ATO’s updated approach aims to make the system fairer for businesses that meet their obligations to ensure all businesses are on the same playing field.  For more details on the consequences of unpaid tax, or to learn more about your options, visit the ATO website or contact the team at Aegis Business Services.