According to a recent article published online by ABC, taxi drivers, doctors, lawyers, farmers, cleaners, and tradespeople could be majorly impacted by a proposed law which would enable the ATO to report tax debts to credit reporting agencies.
If the Federal Government get the green light, then all small business debts could be disclosed to credit agencies. With the potential to destroy individuals livelihoods by receiving black marks on their credit files, there is, understandably, a lot of push-back from lobbyists on the matter.
As tax debts to the ATO reach almost $25 billion, there is a fear that not enough is being done to protect the taxpayer from the introduction of these laws that are seemingly being hurried through the system.
If this goes ahead, it will apply to any businesses that hold Australian Business Numbers and have tax debts totalling more than $100k, which are at least 90 days in arrears.
While there are talks about pushing back the arrears window from 90 to 120 days, it is still likely that this law will become applicable, in some form in the near future.