Equifax has signed an agreement with the Australian Taxation Office, which will supply commercial tax default data to the credit reporting company.

Equifax said it would use the data in commercial credit reports, saying it will greatly improve its commercial reporting.

At June 30 last year, the ATO had around A$38 billion of collectable debt, with small business accounting for $24.3 billion.

“Outstanding tax debts indicate either an inability to pay or a wilful decision not to pay tax. Bother are indicators of risk that our customers be able to see,” said Equifax general manager of commercial and property services, Scott Mason.

The ATO may report a business tax debt to a credit reporting agency if it meets the following criteria: that business has an ABN and is not an excluded entity, such as a super fund or registered charity; at least $100,000 is overdue by more than 90 days; and it is not engaging with the ATO to manage the debt.