ATO reporting business tax debts to credit agencies

The ATO can report a business’s tax debt to credit reporting bureaus if the business has an ABN, owes at least $100,000 that is more than 90 days overdue, and is not engaging with the ATO to manage the debt. The ATO sends a notice of intent first, and the business has 28 days to act, for example by entering a payment plan it keeps to. Once reported, suppliers, lenders and landlords who check the business’s credit file can see the debt.

The four criteria

All of these must apply before the ATO can report:

1. ABN and entity type. The business has an ABN and is not an excluded entity. Deductible gift recipients, complying super funds, registered charities and government entities are excluded.
2. Debt size and age. The business has one or more tax debts, and at least $100,000 is overdue by more than 90 days.
3. Not engaging. The business is not engaging with the ATO to manage the debt.
4. No complaint. There is no active Tax Ombudsman complaint about the ATO’s intention to report.

What counts as engaging with the ATO

• a payment plan you are keeping to;
• an application for release from the debt;
• an active objection, review or court appeal about the debt; or
• an active Tax Ombudsman complaint about the debt.

The 28-day window

If the business meets the criteria, the ATO sends a written notice of intent to disclose. You have 28 days from receiving it to take action. Cash-flow problems or financial hardship alone are generally not treated as exceptional circumstances that would stop the reporting.

Why it matters

• Suppliers may tighten terms or ask for payment up front.
• Lenders may decline or reprice finance, just when the business needs it.
• It signals the debt has reached firmer action, alongside garnishee notices and director penalty notices.

If a payment plan is not realistic

Agreeing a plan just to stop the reporting can backfire if the business cannot keep it. If the business cannot pay its debts as they fall due, look at the formal options: small business restructuring, voluntary administration or liquidation.

Common questions

When can the ATO report my business tax debt to a credit agency?

When all of these apply: the business has an ABN and is not an excluded entity; it has at least $100,000 of tax debt overdue by more than 90 days; it is not engaging with the ATO to manage the debt; and it has no active Tax Ombudsman complaint about the ATO’s intention to report.

Will I be warned before the ATO reports my debt?

Yes. The ATO sends a written notice of intent to disclose, and you have 28 days from receiving it to take action.

How do I stop the ATO reporting my tax debt?

Engage with the ATO within the 28 days, for example by entering and keeping to a payment plan, lodging an objection or seeking review of the decision behind the debt, or paying the debt in full.

Is cash-flow trouble enough to stop the reporting?

Generally not. The ATO may hold off in exceptional circumstances outside your control, such as serious illness or a natural disaster, but cash-flow problems or financial hardship alone are generally not considered exceptional.

Is the report removed once the debt is dealt with?

The ATO says reported information is removed once you no longer meet the criteria, for example after the debt is paid.

Sources: Australian Taxation Office, Criteria for reporting business tax debts; Australian Taxation Office, Firmer action we may take (last updated 17 September 2026). This page is general information, not advice about your circumstances. Last reviewed: 9 October 2026.