Richard Colbeck (Tasmania, Liberal Party, Minister for Aged Care and Senior Australians) Share this | Link to this | Hansard source

I table a response to a question taken on notice by the Assi

Leave granted.

The document read as follows—

Dear Senator

I write regarding your question asked during the committee-of-the-whole phase of the Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019, regarding ATO practice. Specifically, you asked about situations where a good corporate citizen has not been paid for work it has done, and is faced with the choice between using cash reserves to pay either a subcontractor or a tax liability.

The ATO recognises that small businesses may, on occasion, experience cash flow issues for a number of reasons, including in very unfortunate situations due to the actions of others who engage in illegal phoenixing activity, that prevent them paying on time.

The ATO encourages all small businesses who may experience difficulty in meeting any of their obligation to contact the ATO to discuss their circumstances. The ATO will work with the business to understand their situation and consider the best assistance that may be available for them. There are a range of options available, depending on their individual circumstances— including for example tailored payment plans or remission of interest charges. Last year, more than 800,000 payment plans were entered into with small businesses.

For more information about assistance options that may be available, please refer to the following pages on the ATO website:

Help with paying Remission of interest charges Supporting Small Business Tax Professional Cash flow Coaching Kit

I trust this information will be of assistance to you.

Yours sincerely

Senator the Hon. Jane Hume