December used to be the quiet month for tax debt. Not anymore. 

In this edition: a shift in how banks view ATO debt and what you can't let slip over the break. Plus a one-minute favour to shape what we cover in 2026.

"The ATO might slow down over Christmas. The debt doesn't."

– Olga Koskie, Tax Assure

Tax Assure directors, Olga Koskie and Michael Moon sat down to share what you need to know and do this time of year, and why December isn't the breather it used to be.

Key takeaways:

• The ATO doesn't take a Christmas break. Statutory demands and statements of claim keep coming.

• If you're in a payment plan and miss the upcoming BAS, the arrangement defaults automatically.

• "Rolling the BAS in" doesn't work like it used to. It's a new application now, not a quick fix.

• The ATO will generally vary or renegotiate, but only if you engage before the default.

▶️ Watch: Why businesses shouldn't take a holiday from the ATO »

A big four bank asked me to present to their business banking and credit team this month.

A bank wanting to talk about tax debt? That's new. But $56 billion will get anyone's attention.

What surprised me wasn't the invitation. It was the questions.

Not "does this client have debt?" but "why did it happen, and has it been sorted?"

That's the 3 C's of lending: capacity, collateral, character. When tax debt's in the picture, character is the one that counts. Payment plan in place. Not a pattern. Context, not just numbers.

The week before, I was in a room full of business owners. Different room, same shift. Faces changed when they realised they weren't the only ones drowning.

For years, shame kept this conversation from happening. Business owners carried it quietly. They didn't ask for help because they didn't want anyone to know.

That's breaking. Banks are asking better questions. Business owners are finding out they're not alone.

But it only counts if compliance holds. A payment plan only works if it's current. A sorted debt only stays sorted if the next BAS gets lodged.

The ground is shifting. Don't wait. Stay on top of compliance. Work with specialists.

December Checklist

• Convert voluntary payers into formal plans. Payments without a reference number don't protect clients. Formalise before you close for the year.
  

• Address the upcoming BAS now. Another BAS is due before the break for monthly reporters. For quarterly, it's February – right when holiday costs, insurance renewals, and cash flow gaps hit at once. If clients can't pay, engage before it defaults existing arrangements.
  

• Flag statutory demand risk. Non-compliant clients who haven't heard from the ATO in a while? That silence may not last.
  

• Recalculate the cost of waiting. GIC at 10.61%, compounding daily, non-deductible. Show clients what delay actually costs.
  

• Refer complex cases before the break. If something needs specialist help, now's the window.

1. The conversation is changing. Banks are starting to ask about context, not just debt. That only matters if there's a plan in place.
   

2. The BAS trap is real. Missing it defaults existing arrangements, even if clients keep paying.
   

3. Statutory demands change everything. Once one lands, 30–50% upfront becomes the starting point.

We're planning 2026 content and want to make sure it's useful.

Four questions. One minute.

Get it sorted before you log off.

We're here until 19 December and back 12 January.

Need specialist help? Book a consultation before we close.

Urgent matter over the break? Call 1300 952 295.

THAT’S IT FOR 2025!

Wishing you a safe and restful break.

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^{Disclaimer: The information provided is for general purposes only and should not be considered as specific financial, tax, or legal advice. We recommend consulting with a qualified tax professional or advisor to discuss your specific circumstances before making any decisions or engaging with the Tax Assure team directly.}