A new rule making outstanding tax debts more expensive to pay off has kicked in as the Australian Tax Office chases a record $50 billion in unpaid tax.
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A new regulation that makes settling tax debts more costly has been implemented as the Australian Tax Office pursues a record $50 billion in tax arrears.

Since July, the 10.78 per cent interest rate on the ATO’s two-year payment plans is no longer tax deductible.

This means people in the red may end up paying back more. 
A new rule making outstanding tax debts more expensive to pay off has kicked in as the Australian Tax Office chases a record $50 billion in unpaid tax.
A new rule making outstanding tax debts more expensive to pay off has kicked in as the Australian Tax Office chases a record $50 billion in unpaid tax.(9News)

Sole traders and small businesses with outstanding activity statements, who are unable to refinance, may be eligible for the ATO’s 12-month interest-free arrangement.

There are also 20 free tax clinics around the country for those on a low income and in hardship. 

In serious situations, the ATO could be asked to wipe away the interest owed.

“There is the possibility that it can be written off, but you do need to show cause for that,” Tax Clinic director Connie Vitale said.

The information provided on this website is general and does not represent personal financial advice. It has been compiled without considering your personal objectives, financial situation, or needs. Before using any information on this website, you should assess its relevance given your objectives, financial situation, and needs.

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