Outstanding balances of $100,000+ owed to the ATO that are more than 90 days in arrears are being recorded as a default over a business with ASIC and all external credit reporting agencies. Thus, this is impacting a business’s credit score and its ability to obtain finance facilities.
From July 2022 to June 2024, The ATO has increased its General Interest Charge for outstanding amounts owed by 3.34% up to 11.34%
From 1/7/2025 this ATO General Interest Charge will no longer be tax deductible, adding to the overall cost of a repayment arrangement and a business’s bottom line.
It will continue to be harder for a business to navigate cash flow when the largest “creditor” in the land is becoming increasingly aggressive in its attempt to collect billions of dollars in outstanding taxes and, as it has said, “not be seen as a line of credit.”
Corporate insolvencies reach record-high numbers, with the ATO being a major player in these business wind-ups.
Keep your cash flow constant and stay ahead of the game by using your Key Factors / BCashflowPositive facility that moves in line with the “ebbs and flows” of your business, allowing you to cover any challenges as presented.
