Why We’re Bringing You In Brief

At Tax Assure, we work closely with advisors and businesses to navigate tax debt and stay ahead of ATO changes. A big part of our approach is education and knowledge sharing. And that’s why we’ve created In Brief—a simple way to share key insights and strategies for managing tax debt, delivered straight to your inbox each month.

In this edition—and every edition that follows—we’ll break down the latest updates and resources to keep you informed and equipped to better serve your clients in this volatile landscape.

“The only thing more expensive than paying tax is not paying it.” - Unknown

As of this month, $60 billion in ATO debt remains outstanding. The need for clear, actionable strategies is urgent. If you think we’re near the end, think again—we’re still in the midst of the storm.

The ATO is now focused on reducing total debt. Businesses can no longer rely on leniency, and accountants will notice the shift in how tax debt is managed.

Instead of seeing the ATO as an obstacle, businesses should work with them and specialists to find solutions that ensure compliance and help them move forward without accumulating more debt.

The ATO is modernising the tax system, with small businesses at the heart of the changes. What’s being dubbed Tax Administration 3.0 aims to simplify tax, but like any digital transformation, consultation, planning, and execution will be key to success. In positive news, it seems the ATO has recognised this and will focus on a consultation process first.

What’s on the Agenda for the Next System Upgrade?

• More frequent tax reporting 📊

• Digital tools to catch errors early ⚡

• Simplified PAYG quarterly instalments 💵

• Third-party data for better compliance 📑

• Easier tax payments 💳

What Should You Do Now?

Stay tuned for more details, or engage directly with the ATO’s consultation process.

For full insights, see Assistant Commissioner Michael Morton’s comments, as reported by Accountants Daily following his recent session at the Accounting & Business Expo 2025. Read the full article here.

While the shift to digital will take time, it promises to make tax simpler in the long run. We’ll update you as more information becomes available.

The ATO collections campaign is ongoing, and businesses are under increasing pressure. This has been the case for the last 18 months, so it’s vital to understand the current context. Many businesses are still hoping the situation will change, but waiting is not a strategy.

What’s Happening
The ATO continues to ramp up its enforcement efforts, with small businesses being a primary target. With the largest tax debt the ATO has ever seen, it’s clear they’re not easing up. For clients and businesses with unpaid debts, the number one piece of advice is to take action now. Daily penalties are increasing, and the ATO is issuing DPNs, wind-up notices, and automatically garnishing what’s owed—taking action sooner can save businesses from harsher consequence.

What It Means 
If your clients are behind, act now—before the ATO issues DPNs or garnishes accounts.

There are two key things to understand about payment plans:

1. If you have tax debt, you need to get into one ASAP.

2. Not all payment plans are created equal.

While the ATO offers flexible options for businesses that need to negotiate their debt, the default payment plan—dividing total debt by 12—is rarely feasible for businesses struggling to pay back their debts.

Key Takeaway for Advisors
✅ Yes to payment plans, but no to the default version. Work with specialists and you’ll get better results because they know the right buttons to press and how to navigate getting the best outcomes for your clients.

🚨 What’s The Deal?

The planned changes to tax law, which would impact GIC and SIC charges, have been stalled after Parliament adjourned without a final vote. A decision is now delayed until at least March 25, or likely later, as an election is expected to be called, which would further postpone the decision.

What’s Changing?
From July 1, 2025, businesses may lose tax deductions for GIC & SIC on unpaid tax debts—making tax debt more expensive.

What This Means?
Businesses with tax debt could face higher costs, cash flow pressure, and difficulty securing finance. SMEs will be hit hardest, and there’s concern this could lead to more business failures.

Key Insights for Advisors
Prepare as if these changes will happen—help clients get compliant now. This means addressing tax debts early, considering financing options, engaging with the ATO, and planning for potential impact.

For a full breakdown of the proposed tax reform changes, Robyn Jacobson from The Tax Institute’s article in Accountants Daily is a must-read. Read it here.

Clients with Outstanding Tax Debt? Here’s Your Checklist

Here are 4 steps businesses should consider now:

1. Tackle tax obligations: Don’t wait—address outstanding debts now in case the changes come into effect.

2. Consider loans: Carrying rising tax debt could be worse than financing it

3. Engage with the ATO: Struggling? Reach out for support now. Early action beats waiting.

4. Prepare for change: While the timing is unclear, get ready for how these changes could impact your business.

Actionable Solutions, Not Scare Tactics
We’re sure you’re as tired of the headlines as we are. But it’s time to ditch fear-based strategies. With the right advice, most businesses can move forward. Help your clients secure tailored ATO payment plans to ease their financial burden and avoid further penalties.

But isn’t tax debt an accountant’s job?
Tax debt was once solely an accountant’s job, but today, it’s a critical business issue. The stakes are higher, and businesses need expert help to negotiate and secure the best outcomes. The reality is, accountants don’t get paid for this kind of work, and it takes significant time to negotiate and work with the ATO. That’s where tax debt negotiators come in to bridge the gap and provide the expertise needed.

Olga Koskie recently joined Carlo Colangelo on the Broker’s Lounge podcast for an in-depth discussion on this very topic. It’s a must-listen for anyone looking to get a firm grasp on the current situation. Watch the video here.

Tip: Play at 1.5x speed for a quick 15-minute dive and go from unsure to equipped.

Case Study Spotlight

A farming business hit hard by droughts, was forced to sell livestock, and left with a crippling $250,000 interest charge on a 20% loan.

Challenge: The business had paid off its ATO debt by securing a loan from a private lender. However, the high repayments and 20% interest rate were overwhelming. They had already been denied assistance by the ATO and needed specialist help to reduce the financial pressure and work with the ATO.

Solution: Tax Assure intervened, successfully reversing the $250,000 interest charge. This allowed the business to pay off the high-interest loan, providing much-needed breathing room for recovery.

Outcome:

• $250,000 in interest charges were reversed.

• The business cleared the high-interest loan, freeing up cash flow.

• With rainfall returning, the business was able to get back on its feet.

To see the details of this case study, watch this video with our advisor Henry Jervis, who shares the behind-the-scenes story with Olga Koskie.⬇️

What You Can Do Now to Help Your Clients

🔑 Proactive Action: Stay ahead of ATO deadlines and encourage clients to act now, rather than waiting for an ATO notice.

📞 Connect with Tax Assure: We’re here to guide you and your clients through the most complex tax debt scenarios. Book a consultation.

Extras To Note

📅 Deadline Alert: Planned changes to scrap GIC and SIC could take effect as early as July 1. The best move is to tackle tax debt now to avoid being caught out and facing more to pay.

📚 Tax Debt Resources: We’ve got 20+ hours of tax debt content, including case studies, interviews, and industry updates. Access the video vault now.

💡 Upcoming Webinar: Join our live session on “Avoiding ATO Penalties: Real Strategies” with Michael Moon and Olga Koskie. Register your interest here.

That’s it! Thank you for being on board from the beginning, for our first edition of In Brief. Stay tuned for more insights on tax debt and practical ways to navigate this.

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