As of July 1, 2017, the Australian Taxation Office has been able to disclose information about business with an Australian Business Number to credit reporting agencies.
This can have major ramification for a business as it will make it harder to find the funding, when you require a loan to grow your business to stay competitive.
Debts will only be reported where:
- The debt is for a taxpayer that has an ABN
- The debt amount is over $10,000 and unpaid for over 90 days
- The debt is not in dispute
- No payment plan has been established or an existing payment plan has defaulted.
Taxpayer debts will only be reported to a credit reference agency if the taxpayer remains disengaged after the ATO has exhaustively pursued all options before lodging procedures to collect the overdue debt.
Debts genuinely in dispute will not be reported nor will debts under payment arrangement. Taxpayers who are working with the ATO to resolve their debt will not have it reported.
When the ATO, is going to notify the credit reference agency that business will be notified prior to them passing on the information to the agency.
Current rate 8.73% Compounding per year