Up until now any debt you had with the ATO did not affect your credit rating.
However, from the 1st July 2017, the ATO will now tell Credit Rating Bureaus about businesses that have not “effectively engaged” with it about their tax debts.
This is a huge change and it is now more important than ever the keep on top of your tax debt.
Initially the measure will only apply to businesses with tax debts over $10,000 that are at least 90 days overdue.
If you have a tax debt you will need to make a payment arrangement and make sure that the payments are made on time. While the initial roll out is for larger debts in coming years you can probably expect these measure to be rolled out for much lower debts if the future.
Remember, some issues you could encounter by having a black mark on your credit rating are problems getting
- home loans
- business loans and
- credit cards.
These issues would have an effect on your future and are easily avoidable if you stay on top of your tax debt. If you are having cashflow issues and need assistance please contact our office sooner rather than later.