An insolvency and restructuring firm has urged small business owners to be aware of heightened ATO activity as its debt book continues to grow.
The ATO’s annual report, released on 31 October, revealed that the total tax-debt book had jumped from $86.1 billion to $101.4 billion from 2023–24 to 2024–25, marking the largest year on year increase since 2003, insolvency and restructuring firm Worrells says.
Worrells noted that there had been a 28 per cent increase in the amount of tax debt transferred in the insolvency category, from $14.3 billion to $18.4 billion, indicating the ATO’s tougher stance on tax debt collection.
“This is the largest increase since [the] financial…