‘Insolvency Tsunami’ of Small Businesses Could Be Coming as ATO Aggressively Chases Debt

Calls to the Small Business Helpline surged 82 percent compared with last year, as the ATO takes an aggressive approach to debt collection.

The sign of an Australian Taxation Office shopfront is seen in Canberra, Australia, on May 9, 2014. AAP Image/Lukas Coch

Australian small businesses are becoming insolvent at a rate faster than what was seen during the global financial crisis, as the Australian Tax Office (ATO) aggressively pursues billions of dollars of debt.

As a result, call volumes at the Small Business Debt Helpline have surged by 82 percent compared with last year. That compares with a 17 percent rise for the broader-focused National Debt Helpline.