As of February 21 2020, the ATO will disclose tax debts that are overdue by more than 90 days to Credit Reporting Bureaus (CRB). Business owners historically have used the ATO as a “bank” by not paying their tax commitments on time, rather than utilise their own capital or commercial working capital products to help with their cash flow needs. If reported to a CRB, this can affect their credit score through comprehensive reporting changes and restrict their ability to access credit. As per the ATO “Disclosure of business tax debts” reference material, the ATO will only disclose tax debt information of a business to a CRB if the business meets all of the criteria outlined on their site. Read more here.
To help business owners combat this, start by understanding their cash flow needs and if required, help them set up an appropriate working capital facility. To learn more about working capital facilities and cash flow products contact us on 1300 861 143 or clientservices@heart1stop.com
Your Choice Mortgage Brokers Pty Ltd atf Halo Innovation Trust trading as Heart Mortgage Services - Australian Credit Licence 38643.
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