Beginning 1 July 2017, the Australian Taxation Office (ATO) will possess the ability to disclose business debt information to credit reporting bureaus. This new policy is only applicable in a scenario where a debt greater than 10,000 combined with a 90-day debt age has been accumulated. Your business liquidity, development opportunities, and financial flexibility could be severely hindered unless you take advantage of existing avenues to cover your debts such as the “Sale-Back” method or using a confidential debtor finance facility.
Key Takeaways:
- Starting in 2017, the ATO may report debts in excess of $10000 and 90 days old to credit reporting bureaus.
- If your company has an arrangement with the ATO, they will not report your debt.
- The sale-back method is an option your company may take to repay debts.
“According to a recent announcement from the ATO, the office will officially be able to disclose your tax debt information to credit reporting bureaus as of 1 July of this year, potentially affecting your ability to seek funding for further business development ventures.”
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