News
Pausing debt recovery action now easier for small businesses
The Government will allow small businesses to apply to the Administrative Appeals Tribunal (AAT) to pause or modify ATO debt recovery actions where the debt is being disputed in the AAT.
Previously, small businesses have only been able to pause or modify ATO debt recovery actions through the court system, which can be both costly and time consuming. Small business will now be able to pause ATO debt recovery actions until their case is decided by the AAT.
The Government hopes that by applying to the AAT instead of the courts, small businesses will save several thousands of dollars in court and legal fees, and as much as 60 days of waiting for a decision.
Specifically, the changes will allow the Small Business Taxation Division of the AAT to pause or modify any ATO debt recovery actions, such as garnishee notices and the recovery of General Interest Charge or related penalties, until the underlying dispute is resolved by the AAT.
Small business entities (including individuals carrying on a business) with an aggregated turnover of less than $10 million per year will be eligible to use this streamlined approach.
These new powers for the AAT will be available in respect of proceedings commenced on or after the date of Royal Assent of the legislation.
Date published 12 May 2021 | Last updated 13 May 2021
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