The ATO has signaled it may soften its approach to debt collection as businesses deal with rising fuel costs and supply challenges.
“The business community, including small businesses, can be assured that the ATO will take a practical and proportionate approach to administering the taxation law,” a spokesman said.
“The ATO understands some small businesses may be facing challenges associated with rising fuel costs and uncertainty around supply. Where a business is genuinely experiencing cash flow difficulties, we encourage them to contact their bank or credit provider, speak to us, or speak with their registered tax professional early.”
“Early engagement gives the ATO the best chance to work with viable businesses to help them meet their obligations while managing short-term challenges.”
This is a very measured statement from the ATO. While I suspect that they won't make the same mistakes they did through COVID, and go too soft, there is plenty of scope for them to loosen requirements around payment plans, restructuring plans, and DOCAs to make a material difference to businesses that do the right things and engage with formal processes to manager their tax debts early.