‘Need to do more’: ATO tries to claw back $50bn in debt

Australia owes the tax office a staggering $50bn, with the one per cent of taxpayers who are responsible for $11bn of that debt being warned they are in the ATO’s sights. The Australian Taxation Office commissioner Rob Heferen said his office “needs to do more” to recover the $50bn in debt. “This debt is not disputed, most of it has been self-reported, and a significant portion is made up of amounts that have been withheld from employees’ wages and collected from consumers as GST – but not passed on to government,” Mr Heferen said. “We’re directing our firmest efforts toward the 22,000 taxpayers who owe $11bn. “That’s just one per cent of debtors, but they account for 20 per cent of the total collectable debt. “It’s a significant priority for us, and we’re using every tool available to recover what’s owed from those 22,000 – using statutory demands for payment, wind up processes, director penalty notices, garnishee notices and departure prohibition orders.” Mr Heferen warned “firmer actions” would be applied to those not paying their tax “It’s always worth clarifying that the government will not be financing anyone’s ski trip to Colorado through unpaid tax obligations,” Mr Heferen said. With the October 31 tax deadline creeping up, only 6.1 million Australians have lodged their tax returns. “As of August 24 …(The ATO) has issued over 4.5 million refunds, totalling $12bn with an average refund of $2639.”