From July 1 businesses competing for Federal Government contracts will need to have a clean bill of health from the Tax Office, including 4 years of records. The policy was a recommendation from the black economy taskforce, which found poor supply chain practices could result in tax avoidance and that governments had a role in preventing this.
The record check will confirm that a company is up to date with registration requirements. To get a satisfactory record, a business cannot have debts of more than $10,000 unless they’ve entered into a payment plan with the Tax Office.
This of course highlights the importance of having a reliable finance solution in place before embarking on the tendering process. Businesses should plan for the long term with a strong financial plan and a funding partner with the flexibility to support them through periods of growth.
Government tenders were worth a combined $71 billion in the 2018 financial year.
Read more here about how having an ATO tax debt may not need to be a deal breaker.