ATO to launch online tax training portal for small businesses as it stares down $44 billion in collectable debt

The Australian Taxation Office (ATO) is developing a new online training portal for small businesses, containing free courses designed to improve tax compliance — and help the tax office whittle down some $44 billion in collectable debts.

On Wednesday, ATO deputy commissioner Will Day announced the development of the Essentials to strengthen your small business website, which is scheduled to launch in 2023.

“This will be a one-stop-shop for short, free and flexible online courses that will sharpen your knowledge of tax, super and the core aspects of effective small business management,” Day said.

In addition to the resources already available through the ATO, a spokesperson told SmartCompany the new, self-directed courses will address business requirements across the “lifecycle stage, structure and industry”, helping small businesses to manage their financial reporting, business sustainability, and tax obligations.

The ATO, accountants, and business advisers will be able to direct small business leaders to the site as a “single, authoritative point of reference” on tax matters, the ATO spokesperson added.

The decision to package those education tools as self-directed courses came as the result of feedback from small business operators, who told the ATO that timing and flexibility were key components of any new training resources.

New site comes as ATO targets collectable debts and ‘shadow economy’ activities

The Essentials to strengthen your small business site will arrive following two years of pandemic-era leniency, which saw the ATO take a gentle approach to small businesses struggling to remain solvent during lockdowns and strict density limits.

In the 2021-22 Commissioner of Taxation annual report, released last month, the ATO said it is now focused on collecting the business debts which mounted over the past few years.

“As the economy recovers, one of our key priorities is to address the collectable debt that has accrued over the past three years,” the ATO said.

“This has increased from $26.5 billion at 30 June 2019 to $44.8 billion at 30 June 2022 — up $18.3 billion or 69%.

“The increased debt is a result of disrupted economic activity due to lockdowns and cash flow impacts on small businesses and households.”

The new website also arrives during a renewed crackdown on so-called ‘black economy’ or ‘shadow economy’ activities undertaken outside of the ATO’s purview.

An ATO spokesperson said the website will help small businesses that inadvertently fall into that category by misunderstanding their tax responsibilities.

“The Black Economy Taskforce Report, October 2017 recognises that ‘some businesses also fall into the black economy due to a lack of knowledge around their obligations,’” they said.

“The site is being designed with scenarios and activities and will provide small businesses with educational resources on topics that they find more difficult to understand, so are more likely to make mistakes in,” the spokesperson added.

More information on the site is expected in the months to come.