Credit reporting bureaus may soon find out when some small businesses fall behind on their taxes.
The government has introduced a bill into parliament that “deals with a number of activities that exploit the taxation system”, according to assistant treasurer Michael Sukkar.
One of the bill’s measures would give the Australian Taxation Office the discretion to disclose to credit reporting bureaus the tax debt information of businesses “that are not effectively engaging with the ATO” to manage their tax debts.
“This information can only be disclosed when certain conditions and safeguards are met, including that at least $100,000 of the debt is overdue for more than 90 days,” he said.
“This will reduce the unfair advantage obtained by businesses who do not pay their tax debts and will encourage businesses to engage with the ATO to manage their tax debts.”
The government is seeking the community’s views on this exposure draft legislative instrument. Small businesses and other members of the public have until August 21 to respond.