Institute of Certified Bookkeepers

The Australian National Audit Office (ANAO) has released its report on the way the ATO handles it debt management role:

The ATO requested review was to assess

- ATO effective arrangements for managing...

- ATO processes provided for consistent management....

- ATO effectively monitors and reports.....

small business tax debt

Download the full report



7. The ATO’s management of small business tax debt has been largely effective.

8. The ATO’s organisational structures and processes support the effective management of small business tax debt. The ATO has introduced a number of initiatives to improve coordination between small business compliance, dispute and debt activities, drawing on stakeholder views and international practices.

9. There are limitations on the effectiveness of the ATO’s processes that support consistent management of small business tax debt. The ATO has largely effective automated processes for lower impact debt activities such as prompting debtors to pay. However, quality assurance processes over firmer and stronger debt actions do not provide sufficient visibility about the effectiveness of controls.

10. The ATO’s framework for monitoring and reporting of its management of small business tax debt is largely effective. The ATO has extensive internal monitoring on characteristics of tax debts including for small business. A performance framework for debt management has been developed, which includes measures that are relevant and reliable but provide an incomplete view of the efficiency, effectiveness and consistency of the ATO’s debt management.

  • 2nd June 2019