$4.3 billion late: construction tops ATO tax list

Businesses, builders and developers top Australia’s worst tax debt list, with construction firms racking up $4.3 billion in unpaid taxes and pensions last financial year.

The shocking figure was revealed in a breakdown by the Australian Taxation Office, which revealed that more than 14,600 construction companies were classified as “non-paying taxpayers” in the last financial year – failing to contact the authorities to pay their debts.

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The ATO will issue travel ban orders to taxpayers who owe $50 billion in tax and capital obligations. Source: ATO

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The $4.3 billion figure includes debts of more than $100,000 that are more than 90 days past due, excluding construction firms with active payment plans or bankruptcy, foreclosure or disputed debt transactions.

An ATO spokesperson told the Courier-Mail “most of the unpaid tax debt owed by businesses is related to GST, pay as you go and superannuation guarantee levy. These are amounts withheld from employees or customers but not passed on to employees or the government.”

The ATO has now stepped up action against company directors nationally across all industries for failing to settle $50 billion in overdue GST, PAYG and compulsory superannuation payments.

“Where there is evidence of willful non-payment and a risk to income, stronger actions such as DPOs (travel ban orders) can be used to prevent the taxpayer from leaving Australia until the debt is dealt with,” an ATO spokesperson said.

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Unpaid GST debts, including those arising from property or development transactions, are among the biggest types of debt, the ATO said.

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“Unpaid GST debts, including those arising from property transactions or developments, are among the major types of debts that may lead to the Commissioner issuing a Departure Prohibition Order (DPO).”

In the past six months, the ATO has stopped 21 people at the border, preventing them from leaving the country for business-related debts – more than the total number of DPOs issued in the previous financial year.

The tax office has also issued notices of director’s fines, endowments, referrals to credit reporting agencies, and call-off requests.

Asked if a person’s assets, including property, were taken into account when assessing ability to pay, an ATO spokesperson said “the ATO looks at their financial situation in its entirety, including assets, income, and overall circumstances to determine debt recovery and the most appropriate course of action”.

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The ATO is focused on “ensuring that taxpayers meet their obligations. Source: ATO.

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A consistent stance was taken across industries, with a strong focus on “ensuring that taxpayers meet their obligations”.

While construction led the pack with 14,674 taxpayers fired in 2024-25, the next highest was professional, scientific and technical services at 4,850.

Accommodation and food followed at 4,195, then administrative and support services at 3,290, and transport, postal and warehousing at 2,936 – rounding out the top five sectors with the worst potential tax liability.

The ATO said each case would be considered on its own merits and individual circumstances before deciding the most appropriate course of action.

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