Why is the ATO ramping up enforcement?
If you’re feeling the pressure from the Australian Taxation Office (ATO) right now, you’re not alone. After a few quiet years during COVID, the ATO is back in full swing — ramping up debt collection and compliance activity nationwide.
To help explain what’s going on, we sat down with Andrew Crawley, Director, Hall Chadwick, who shared some key insights into the ATO’s renewed focus and what business owners need to be aware of.
“During COVID, everything eased off,” Andrew explains. “The ATO were very understanding — enforcement activity stopped, and even debt collection was put on hold. But now we’re a few years down the track, and things have gone back to normal.”
The ATO’s recent surge in activity shouldn’t come as a surprise. After a period of leniency, the agency is once again pursuing overdue tax debts, issuing warning letters, and following through on Director Penalty Notices.
“Initially, they were fair about it,” Andrew continues. “They sent out letters giving everyone a chance to catch up. But now, they’re fed up. They expect directors and business owners to meet their obligations.”
What this means for business owners:
Expect increased contact from the ATO — from reminder letters to legal notices.
Don’t ignore communication — early engagement is key.
Work with professional advisors to negotiate manageable repayment terms.
If you’ve received an ATO warning letter or are behind on your tax obligations, BDK Risk Management can help you get back on track.