THE HON. KEVIN HOGAN MP
FEDERAL MEMBER FOR PAGE
SHADOW ASSISTANT TREASURER
SHADOW MINISTER FOR FINANCIAL SERVICES
DEPUTY MANAGER OF OPPOSITION BUSINESS
SMALL BUSINESS ALWAYS GETS THE ROUGH END OF THE ATO STICK
The ATO’s controversial credit card ban has renewed scrutiny of its treatment of struggling small businesses, with a Tax Ombudsman investigation exposing a doubling of refusals for small business tax debt interest relief under Labor.
Shadow Assistant Treasurer Kevin Hogan said the findings raised serious questions about the ATO’s treatment of small businesses and the expectations of the ATO set by the Treasurer.
“Small businesses are being squeezed from every direction,” Mr Hogan said.
“Everyone should pay the tax they owe. But small businesses genuinely trying to repay their debts and get back on their feet deserve a fair go. Under Labor they’re not getting one.”
In March, the Tax Ombudsman’s investigation found the ATO had tightened its approach to interest relief since 2023. The investigation warned that small businesses trying to repay overdue tax had been unfairly denied interest relief, with serious consequences.
“For some, the outcome was bankruptcy or insolvency when a more fair and reasonable approach could have been found,” the report stated.
The report found around one in four relief requests from smaller businesses was rejected by the ATO, compared with one in six from large businesses.
Small business insolvencies have exploded under Labor, with 14,722 companies entering external administration in 2024–25 and 14,153 in 2025–26 – three times the amount recorded under the Coalition while in Government.
“The responsibility for these failures comes from the top. The Government has a responsibility to set clear expectations for the ATO. Yet after four years in the job Jim Chalmers has never updated his statement of expectations for the regulator,” Mr Hogan said.
“This is basic stuff. With the Treasurer failing to set expectations for the ATO, is it any wonder they keep going after small business?”
“Small businesses deserve a Treasurer that isn’t asleep at the wheel.”
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