INTHEBLACK June 2025 - Magazine - Page 42
P O D C AS T
WITH INTEREST PODCAST
The With Interest podcast features economic updates and developments
for the business world. Here are some highlights from a recent episode.
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ATO GUIDE FOR BUSINESS OWNERS AND TAX PRACTITIONERS
Navigating the complexities of the Australian tax system requires up-to-date
knowledge. David Allen, second commissioner of frontline operations at the
Australian Taxation Office (ATO), provides key insights for what to expect in 2025.
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to the full
podcast episode
“I think the starting point with general interest charges (GIC) is to
remind ourselves that it’s a really important part of the overall tax
system and the GIC rate has been deliberately set high to encourage
the timely payment of tax.”
DAVID ALLEN, AUSTRALIAN TAXATION OFFICE
DEBT COLLECTION FOCUS
“The tax debt is definitely a priority for
the organisation. The debt book did double over
the COVID-19 period from about A$25 billion
to nearly A$50 billion. Of that debt, 65 per cent
is owed by small business. The positive news
is that we’ve actually stemmed that growth.
We’re starting to see payment come back
and we’re starting to see trending down
in the debt book, which is very positive. I think
it’s also worth noting that the majority of
taxpayers do pay and lodge on time.
“22,000 taxpayers are responsible
for A$11 billion of the total tax debt value.
In context, that’s around 1 per cent of the total
debtors responsible for about 20 per cent
of what’s owed. So our focus at the moment
is very much around poor payment behaviours.”
42 INTHEBLACK June 2025
4 TAKEAWAYS FOR TAX
PRACTITIONER CLIENTS
“The first one is: if they can pay, please do.
And if they can’t, don’t ignore it. Act now,
check if you can put a payment plan in place.
Otherwise, reach out to us to get some help.
“The second one is: don’t let those obligations
of pay-as-you-go withholding, goods and
services tax (GST), and super guarantee
accumulate. It’s very difficult for businesses
to deal with legacy debt while they’re managing
the current obligations.
“The third one is: we will be focusing on those
debts and we will be taking firm action earlier.
And that is a bit of a shift.
“The last point: we are increasingly taking
action on entities and directors who don’t
respond to director penalty notices (DPNs).
Directors have got to understand that they’ve
got a responsibility in terms of how that
business is being run, what their liabilities are
and their obligations, and that they will become
personally liable for those liabilities if they
aren’t managed.”
