The ATO\u2019s debt recovery activity and economic headwinds have combined to hit NSW hardest with insolvency appointments up 62 per cent in the first half of 2022-23, Insolvency Australia says.<\/p>\n\n\n\n
This is particularly concerning for small business in the current climate of interest rate rises, inflation and resourcing.<\/p>\n\n\n\n
A reinvigorated tax office resulted in NSW suffering almost as many insolvencies over six months, 2,153, as the entire previous year when there were 2,402.<\/p>\n\n\n\n
The ATO has come down harder on those with tax debt, resulting in increasing external administration.<\/p>\n\n\n\n
Since the beginning of the year, the ATO has issued 80,000 warning letters to directors as it ramps up its debt recovery program.<\/p>\n\n\n\n
We have had many conversations with Insolvency practioners in the first 3 months and the ATO seem to have again stepped up recovery efforts in 2023 with high levels of winding up filings and statutory demands popping up, sometimes also accompanied by a DPN.<\/p>\n\n\n\n
What can you do?<\/strong><\/p>\n\n\n\n There are 3 main strategies to employ.<\/p>\n\n\n\n