Micro enterprise collectable tax and superannuation debt is currently over $9 billion, representing about two-thirds of outstanding collectable debt. We therefore place a strong focus on managing tax and superannuation debts in this segment.
We take a balanced and differentiated approach, based on a consideration of each business's individual circumstances. Where businesses face short-term difficulties but work with us to address their tax debts, we offer support. We balance this support with firmer action where businesses choose not to work with us, repeatedly default on agreed arrangements or do not have the capacity to pay. This ensures a level playing field for business.
When taking firmer action, we may use a range of available administrative and legal options, including garnishee notices, director penalty notices, claims, statutory demands and commencement of bankruptcy or wind-up proceedings.
If a business has a history of defaulting on payment arrangements or an escalating debt, we may ask for an upfront payment or request that payments are made by direct debit before agreeing to a payment arrangement.
Concerns we may have about the viability of a business will need to be addressed before we agree to a payment arrangement. When assessing a business's viability, we look at its ability to pay outstanding debts and to meet ongoing commitments.
We have a range of services to help viable businesses having difficulty paying their tax debts including:
- flexible payment arrangements aligned with cash flow
- remission of general interest charges where appropriate.
Businesses experiencing difficulty meeting their obligations should contact us early to discuss their situation and the assistance options available to them.
Sections within Micro enterprises
Last Modified: Friday, 1 July 2011