Heferen said the debt is equal to about one-sixth of all collections in the last financial year, and includes withheld pay-as-you-go tax and superannuation.

“Largely due to adjustments through COVID, collectable debt is now over $50 billion, with our broader debt book over $100 billion, compared to total collections in 2023–24 of around $600 billion,” he said in a speech to the Tax Summit.

“It’s the largest it’s ever been.”

$100 billion is almost double the annual defence budget, triple the government’s new housing investments over the last two years, and roughly equal to federal health spending. 

“It’s money that could be benefitting all Australians,” Heferen said.

“This debt is not disputed, most of it has been self-reported, and it’s largely made up of amounts that have been withheld from employees’ wages, and collected from consumers as GST – but not passed on to government.

“Even more worryingly, it includes some employee entitlements, such as superannuation.”

After the ATO took a more lenient approach to tax collection as the businesses reeled under the economic impacts of the pandemic, it has more recently been taking a stricter course of action, which Heferen said would continue.

“We will be firmer and faster in dealing with unpaid GST, PAYGW and super,” he said.

“We have also tightened up on payment plans and general interest charge remissions, and will be looking closely at lodgment deferrals and penalty remissions, to reinforce the level playing field.

“In all this I can assure you that we will treat people fairly and with respect.”

Heferen was appointed to the ATO’s top job in March.

He said not collecting unpaid tax would disadvantage businesses that are paying their fair share.

“Unpaid tax and super contradicts a fair tax system… paying tax isn’t optional and it’s our responsibility to ensure a level playing field.

“This is critical for supporting other creditors and businesses who are doing the right thing and paying on time, and who themselves can often be left out of pocket by businesses who aren’t taking steps to manage their financial situation.”