ATO tipped to pounce once JobKeeper Ends!
If you owe money to the ATO now is the time to start thinking about paying it down!
Although 2020 saw a temporary lull in the ATO and State Revenue Office’s usual activity level due to the COVID-19 pandemic, 2021 is already set to be as busy as ever when it comes to audits and reviews initiated by government revenue authorities.
Since the pandemic began in early 2020, the ATO has paused its audit and compliance work in view of the stresses the business community has been suffering due to the economic downturn.
These measures have led to an increase in the total debt book to over $53 billion from $45 billion the previous year. This record-high figure cuts across various categories including insolvency debt, collectable debt, and debt subject to objection or appeal.
According to the ATO, this shortfall is due to having been forced to switch gears from pursuing revenue to assisting with stimulus measures to combat the economic impact of the pandemic.
The ATO has been responsible for the administration of two major stimulus measures extended by the Federal government. This included the $1,500 fortnightly JobKeeper wage subsidy and the $20,000-$100,000 tax-free cash flow boosts.
Thus far, the ATO has not fully resumed its normal pursuit of debt and compliance-related work. They did begin to re-engage with debt clients across the country, except for Victoria, in late 2020.
With the new financial year only months away, it’s time to start thinking about budgeting to pay back any ATO debt. Talk to us about how we can help with your cashflow and liaise with the ATO to get you back on track.
