Firmer action approach to debt collection

You can download a printable version of Firmer action approach to debt collection (NAT 73708, 152KB) in portable document format (PDF).

Our firmer action approach

To ensure that we maintain a level playing field for taxpayers, there are situations where we need to take firmer action to recover outstanding tax debt. Our approach takes into account individual circumstances to determine the best way to clear your debt. For businesses, we may also review viability to determine the appropriate firmer action to take.

Firmer action will not be taken if you are complying with an agreed payment arrangement, including lodging and paying current obligations on time.

When is firmer action taken?	you choose not to work with us despite multiple attempts by us to contact you you repeatedly default on your payment arrangements your debt is escalating and there is no evidence that you will be able to meet your ongoing tax obligations you have been subject to an audit where deliberate avoidance was detected and payment avoidance is continuing for business operators, where there is evidence that liquidation is being used to avoid financial obligations, without risking assets and with the full intention of resuming business operations through a new entity (known as 'phoenix' activity).
What is firmer action?	One or more of the following actions: issuing a notice to a third party (for example a bank) who owes you money or holds money on your behalf requiring them to pay all or part of that money to the ATO (known as a garnishee) initiating bankruptcy or wind-up proceedings, beginning with the issuing of a summons/statutory demand pursuing company directors personally for the unpaid superannuation guarantee charge and the PAYG withholding component of the debt (director penalties) issuing a writ/warrant of execution authorising the seizure and sale of your property to pay a judgment debt plus costs in rare circumstances requiring you to pay a bond or provide security in respect of any tax-related liability that we think may be at risk of not being paid.
What can you do if firmer action is being taken?	pay in full, or we will consider deferring firmer action if you make an agreed lump sum payment towards your outstanding tax debt and enter into a direct debit payment arrangement for the balance of the debt businesses may need to demonstrate their viability before firmer action is deferred. We will explain to you the information required to assess the viability of your business.

More information

• Visit www.ato.gov.au/debt
• Phone 13 11 42 between 8.00am and 6.00pm, Monday to Friday.

If you do not speak English well and need help from the ATO, phone the Translating and Interpreting Service on 13 14 50.