Financial counsellors are calling on the tax office to give small businesses and individuals more time to pay tax debts, as the level of money owed sees calls to the debt helplines hit unprecedented levels.
More than 65 per cent, or $36.6 billion, of the $55.9 billion in total debt owed to the Australian Taxation Office (ATO) is owed by small business, according to the agency, which said much of that is undisputed debt.
But the ATO’s increased use of its extraordinary powers to recoup tax debts is sending more small businesses under, and putting people into severe financial hardship.
“We’ve seen increased activity across that full spectrum of debt collection methods,” Australia’s Tax Ombudsman Ruth Owen said.
“My concern is about how they…