• Managing debt collection


    Small businesses, accounting for over 60% of total collectable debt, remained a key focus of our debt collection and support strategies. Throughout the year, we maintained our support for viable small businesses willing to work with us in addressing their tax debts. This support included payment arrangements aligned with each business's cash flow and capacity to pay.

    We also provided support, using a range of debt relief options, to over 15,000 taxpayers experiencing serious hardship or financial difficulty. These relief options, available under tax and other laws, include release from payment of certain tax debts, remission of interest and treatment of debts as uneconomical to pursue.

    Table 2.7 Debt relief provided, 2011–12 to 2012–13

     

    2011–12

     

    2012–13

    No. $m

     

    No. $m

    Full or partial release

    2,439

    60.6

     

    2,525

    61.8

    Waiver

    <5

    0.2

     

    <5

    0.4

    Compromise

     

    <5

    4.0

    Debt uneconomical to pursue

    1,761

    49.9

     

    1,938

    50.1

    Penalty and interest remission

    1,019

    10.9

     

    656

    9.6

    Any decision to waive a debt is made by the Minister for Finance and Deregulation (or delegate). We provide information to assist the minister or delegate in making this decision. In some instances, more than one of the options listed above may be used to provide debt relief to a taxpayer.

      Last modified: 31 Jul 2015QC 42684