Appendix 6: Debt management
The following tables show statistics around debt holdings and debt not pursued.
Small businesses continue to account for the majority of collectable debt and are a key focus of our payment and debt strategies. We recognise that small businesses may occasionally experience short-term cash flow issues that prevent them paying on time. To assist, we offer payment plans tailored to their individual circumstances. In 2018–19 we granted over 800,000 payment plans to small businesses to help them get back on track.
|
Activity |
2016–17 ($b) |
2017–18 ($b) |
2018–19 ($b) |
|---|---|---|---|
|
Individuals |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
2.3 0.3 0.5 |
2.7 0.2 0.4 |
2.9 0.2 0.4 |
|
Small business |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
13.9 1.8 4.0 |
15.1 1.0 3.7 |
16.5 1.4 3.9 |
|
Privately owned and wealthy groups |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
3.8 1.2 2.4 |
5.0 3.0 2.6 |
5.6 3.4 2.8 |
|
Public and multinational businesses |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
0.7 4.7 0.3 |
0.7 5.5 0.3 |
1.1 6.3 0.4 |
|
Not-for-profit organisations |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
0.1 0.0 0.0 |
0.1 0.0 0.0 |
0.2 0.0 0.0 |
|
Self-managed super funds |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
0.1 0.1 0.0 |
0.1 0.1 0.0 |
0.2 0.0 0.0 |
|
Superannuation funds |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
0.0 0.0 0.0 |
0.1 0.0 0.0 |
0.1 0.0 0.0 |
NOTE
(a) The sum of collectable debt, debt subject to objection, review or appeal under Part IVC of the Taxation Administration Act 1953 (TAA) and insolvency debt in this table will vary from the 'value of debt holdings by main revenue type' table as only the main revenue types are included there.
The proportion of debt accounted for by activity statement debt, income tax debt and superannuation guarantee charge debt is reasonably consistent over time.
|
Activity |
2016–17 ($b) |
2017–18 ($b) |
2018–19 ($b) |
|---|---|---|---|
|
Activity statement |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
11.3 0.6 4.3 |
12.3 0.8 4.1 |
14.3 0.9 4.2 |
|
Income tax |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
8.8 7.3 2.2 |
10.3 8.6 2.0 |
10.8 10.0 2.3 |
|
Superannuation guarantee charge |
|||
|
- collectable debt - debt subject to objection or appeal - insolvency debt |
0.7 0.0 0.7 |
0.9 0.1 0.9 |
1.1 0.1 1.0 |
NOTE
(a) The sum of collectable debt, debt subject to objection, review or appeal under Part IVC of the TAA and insolvency debt in this table will vary from the 'value of debt holdings by client experience' table as only the main revenue types are included here.
Determining that some debts are either uneconomical to pursue or irrecoverable at law helps ensure that we are focusing our collection activities on the right debts.
|
Activity |
2016–17 |
2017–18 |
2018–19 |
|---|---|---|---|
|
Value of debt: ($b) |
|||
|
- uneconomical to pursue - irrecoverable at law |
1.4 2.5 |
1.1 3.7 |
1.4 2.8 |
|
Ratio of debt uneconomical to pursue to ATO net cash collections |
0.4% |
0.3% |
0.3% |
NOTE
(a) If a decision is made to not pursue a debt on the basis that it is uneconomical to do so, the debt can be pursued at a future time. A debt that is irrecoverable at law is effectively extinguished.
Visit
https://www.transparency.gov.au/annual-reports/australian-taxation-office/reporting-year/2018-2019-63