ATO refers hundreds of thousands of taxpayers to a private debt collector – including people on Centrelink benefits

Suzanne, who was on Centrelink benefits, says she was in a ‘cycle of financial catchup’ while paying off her modest tax debt.
Photograph: Hilary Wardhaugh/The Guardian

Suzanne was having enough trouble making ends meet when a modest tax debt she had been paying off was referred to an external collector.

On 15 April, the Australian Taxation Office-appointed debt collector, Recoveriescorp, gave her one week to pay $2,590.33, or risk further recovery action, which it said included possible legal proceedings.