ATO faces close to $50B tax shortfall

• The Australian Taxation Office may lose $49.8 billion in uncollectable small business tax debt.
• Small businesses currently account for 66% of the total uncollected taxation debt.
• The government agency agreed to eight recommendations to improve its debt collection strategies.

The Australian Taxation Office faces a $49.8 billion shortfall as uncollectable small business debts rise.

Collectable debt for small businesses grew by 118% between 2018-19 and 2024-25.

"The Albanese government cannot control its spending," said Coalition Treasury Spokesman Tim Wilson.

Small businesses owe an average of $26,797 across 1.3 million separate enterprises.

The federal government recently made the small business instant asset write-off permanent.

The tax office agreed to adopt eight performance recommendations to improve future data use.