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  • Increased powers for the Administrative Appeals Tribunal in relation to small business taxation decisions

    On 8 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will make it easier for small business to pause debt recovery action.

    This measure is not yet law.

    The changes will allow the Administrative Appeals Tribunal (AAT) to pause or modify ATO debt recovery actions, such as garnishee notices and the recovery of general interest charge or related penalties until the underlying dispute is resolved by the AAT.

    Small business entities (including individuals carrying on a business) with an aggregated turnover of less than $10 million per year will be eligible to use this streamlined approach.

    Currently, small businesses are only able to pause or modify ATO debt recovery actions through the court system, which can be costly and time consuming. These new powers for the AAT will be available for proceedings commenced on or after the date of royal assent of the legislation.

    See also:

      Last modified: 11 May 2021QC 65619