Tax debts to appear on credit rating

Businesses with a tax debt greater than $10,000 will have the debt reported to credit reporting bureaus from 1 July by the ATO. This may affect a business’s credit rating and their ability to obtain future finance in an attempt to increase the transparency of tax debts throughout business circles.

Should the measure get through the parliamentary process, it will also provide opportunities for businesses to vet their customers’ tax credit history. Credit check providers can help a business rely on the ability for larger customers to pay debts on goods and services provided.