The Government is seeking stakeholder views on exposure draft legislation that increases the rights of small businesses to contest the ATO’s collection of disputed tax debts.
In the 2021‑22 Budget the Government announced that it would extend the power of the Administrative Appeals Tribunal (AAT) to pause or modify ATO debt recovery action in relation to disputed tax assessments under review by the Small Business Taxation Division (SBTD) of the AAT.
The exposure draft legislation amends the Taxation Administration Act 1953 to:
- allow the AAT to make orders that stay or modify the Commissioner of Taxation’s debt recovery actions in relation to tax assessments under dispute in the Small Business Tax Division of the AAT,
- enable small businesses (i.e. businesses with an aggregated annual turnover of less than $10 million) to seek AAT orders that prevent the Commissioner from taking debt recovery actions, like commencing winding up proceedings or issuing garnishee notices, until the underlying dispute is resolved, and
- empower the AAT to order the Commissioner of Taxation to offer instalment arrangements including 50/50 payment arrangements and to accept security in lieu of immediate recovery.
Further details on the draft legislation are contained in the explanatory memorandum.
You can submit responses to this consultation up until 19 January 2022. Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
View our submission guidelines for further information.
How To Respond
Address written submissions to:
Tax Administration Unit
Individuals and Indirect Tax Unit
Parkes ACT 2600