The Australian Tax Office closes from midday on 24 December through to 2 January 2026. Phones go to voicemail, offices go dark, and if you need urgent assistance, you’ll be waiting until the new year.
The problem? Your compliance obligations don’t stop just because the ATO does.
What Stays Active During the ATO Shutdown
While ATO staff are on leave, the systems they’ve built keep running. Here’s what doesn’t pause for Christmas:
Statutory deadlines remain in force. Lodgement due on 28 December? Payment deadline on 31 December? Those dates stand. Miss them and you’re facing penalties and interest from day one of the new year.
Active audits and reviews don’t go on pause. If the ATO has requested documents with a deadline falling over the holidays, that deadline remains enforceable. You can’t respond to an officer who isn’t there, but the clock keeps running.
Debt collection activity continues through automated systems. Outstanding tax debt with a payment arrangement? Those payments still need to be made on schedule. Default over Christmas and you could face Director Penalty Notices or garnishee orders when business resumes.
Director penalty provisions under the Corporations Act don’t take holidays. If your company has unpaid PAYG or superannuation liabilities, directors can become personally liable—and those 21-day notice periods don’t stop for Christmas.
The Christmas Compliance Gap
Most business owners don’t realise how exposed they are during this period until something goes wrong. An ATO notice arrives on 27 December with a response deadline of 3 January. Your accountant is away. The ATO is unreachable. You’re stuck trying to figure out your obligations without professional guidance.
Or worse: you return from holidays on 4 January to discover a deadline passed, penalties have been applied, and your compliance status has deteriorated—all because nobody was available to manage the situation.
The regulatory framework doesn’t accommodate the reality that businesses shut down over Christmas. Your obligations remain active whether you’re staffed up or not.
Why Continuous Support Matters
When deadlines don’t observe holidays, your advisory team shouldn’t either.
At Saby+ Partners, we maintain full operations throughout the Christmas and New Year period because this is when clients are most vulnerable. While the ATO is closed and most firms are on skeleton staff, we’re here handling:
- ATO correspondence and notices that arrive during the shutdown
- Urgent compliance matters that can’t wait until mid-January
- Director obligations under the Corporations Act requiring immediate attention
- Tax debt management including payment arrangements and penalty mitigation
- Audit responses and documentation to meet holiday deadlines
What You Should Do Now
If you’ve got outstanding ATO matters, unresolved notices, or pending deadlines, get them sorted before 24 December. Check your ATO portal for outstanding lodgements or correspondence. Review your payment arrangements. If you’re a director, understand any outstanding PAYG or superannuation liabilities.
If there’s any doubt about your compliance position heading into the holidays, get advice now while there’s still time to act.
The Bottom Line
The festive season is meant to be a break. But for business owners and directors, it can become a minefield if compliance matters aren’t properly managed. The ATO might close its doors, but the obligations they’ve created remain very much in force.
Make sure you’ve got support in place that doesn’t clock off when everyone else does.