ATO patience runs out as small business tax debt hits $35b

Unpaid tax debts from small businesses have soared to $35.2 billion, with ATO Commissioner Rob Heferen signalling the agency’s patience has run out after the COVID-19 pandemic.

Small business is by far the largest slice of the ATO’s $52.8 billion debt pile, and its collectable debt, contested debt and insolvency debts all rose last financial year. Overall unpaid debts grew by 5.2 per cent in the financial year, prompting new “deliberate action” to chase repayments by the ATO.