With collectable tax debt now at $44.8 billion, the ATO is starting to take firmer action.

The concessions during the pandemic including a very soft approach to compliance with debt and lodgement is now coming to an end.

The Tax Office started 476 wind-up proceedings in the first seven months of 2023, compared with just 14 in the same period last year.

This is however at the extreme, and provided that businesses and taxpayers engage with the ATO, they are willing to accept payment arrangements and engage to get compliance up to date.

For small businesses with turnover of less than $10 million, there is currently a lodgement amnesty in place for any penalties for unlodged income tax returns, fringe benefits tax returns or business activity statements.

The ATO General Interest Charge is currently 10.90%, the highest level in 11 years, and remissions are getting more difficult to negotiate.