The ATO use effective approaches to collect small-business debt with the aim of returning to pre-pandemic levels are one of the major focus areas for the ATO in 2022-23, it states in their latest corporate plan.
The ATO utilize the debt collection industry to “use data-driven insight” and “resume firmer and tougher lodge and pay actions” to address the increase in debt during COVID, although the ATO would be “balancing debt renewal with small business support” as they improved their tax function.
Another major focus towards the ATO’s system is the modern and protected IT structure by transferring to a new data center which is a safer place for the ATO to store all their valuable information like client details, business information, etc. It allows a new digital investment by recognizing efficiencies to recalibrate certain areas of work.
The ATO’s data collection is the most critical area to focus on. The modern-day business registry project increased the use of STP, in-depth cyber security and creating a “digital first tax ecosystem” for small businesses to improve their “tax performance and participation.”
Commissioner Chris Jordan works with the ATO and said that “COVID proved the fundamental role that the ATO played in supporting the community through a difficult period”. People’s small businesses were falling apart from the impact that COVID had affected lots of small businesses.
The Commissioner also said that they “delivered vital stimulus to millions during the pandemic and proved we are much more than a revenue collection agency”, he stated. The Commissioner also states that they are the “cutting edge of government service delivery, and that they are continuing to undertake significant programs of work.” He also says that they are acknowledged as the world-leading taxation authority.
The importance of data collection is major by creating tax assessments right the first time and said that the ATO was aware of the need for the heightened security for the sensitive information they collected.
One of the ATO’s most exciting and key areas of work is with the use of data and digital. The data that they use underlines the client’s services, their early intervention activities and the ATO’s goal to avoid serious matters from happening. So, the ATO have made it easier for people to use the system by simplifying it so people can get things right up front with minimal interference from the ATO.
The ATO having one of the largest data stores in Australia, keeping all information safe and secure is a major responsibility and that is the driver for cybersecurity and the transition into their new data center. The data stores are growing every single year, so keeping systems safe and protected is necessity during this time.
Finally, small businesses across the country, should undertake targeted approaches and strategies to address their collectable debts, re‑engaging with clients to tailor solutions to their situations, and doing so with compassion and understanding.
Feel free to contact Lana and her team at Matovic Business Accountants if you would like to discuss your business’ accounting and bookkeeping needs.
Email us at info@matovicaccounting.com.au or call (07) 3557 5721.
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