Home topics news ATO Assistant Commissioner Angela Allen News News Small firms urged to separate accounts as debt collection accelerates Yajush Gupta February 9, 2026 The ATO is encouraging small businesses to reset their compliance habits for 2026, warning that avoidable mistakes contribute to a $27.2 billion income tax gap. What’s happening : The Australian Taxation Office is encouraging small businesses to start 2026 with stronger compliance habits as it accelerates efforts to collect more than $50 billion in unpaid tax. Why this matters: ATO Assistant Commissioner Angela Allen says avoidable mistakes contribute to the $27.2 billion small business income tax gap, urging owners to seek professional advice and implement practical cash flow management systems. The Australian Taxation Office is urging small businesses to reset their compliance habits as the new year begins, warning that failure to address tax obligations now could result in firmer recovery actions later. ATO Assistant Commissioner Angela Allen said the calendar year provides an opportunity for businesses to establish practices that will prevent problems throughout 2026 and beyond. Small business owners face multiple pressure points, from keeping accurate records to managing cash flow effectively. Part of the $27.2 billion small business income tax gap stems from mistakes rather than deliberate evasion, making professional guidance particularly valuable for navigating complexity. Allen emphasised that taking small practical steps immediately can make a substantial difference, whether setting funds aside to cover GST and PAYG withholding, staying current with ATO debts, or establishing calendar reminders for lodgement deadlines. The