The ATO has made significant changes to how it handles unpaid tax and superannuation. This shift primarily targets businesses that refuse to engage.
What’s Changed?
The ATO is now taking a firmer stance on businesses with overdue tax and superannuation obligations. This includes:
- More aggressive use of Director Penalty Notices (DPNs)
- Increased disclosure of business tax debts to credit reporting agencies
- More frequent garnishee notices to third parties (e.g., your bank or debtors)
- Stricter enforcement of superannuation guarantee obligations
Who Is Most at Risk?
Businesses that ignore ATO correspondence, fail to lodge on time, or consistently pay super late are the primary targets. The ATO distinguishes between businesses that are genuinely struggling (and engaging) and those that are simply not complying.
How to Protect Yourself
- Always engage — if you receive ATO correspondence, respond promptly. Ignoring it makes things worse.
- Lodge on time — even if you can’t pay, lodge your BAS and tax returns by the due date.
- Set up payment plans — the ATO offers payment arrangements for businesses experiencing genuine difficulty.
- Pay super on time — super is due quarterly. Late payments attract the Super Guarantee Charge (SGC), which is not tax-deductible.
Contact us if you’re behind on tax or super obligations — we can help you get back on track.