with Nathan Jammal, Director, O’Brien Palmer
Nathan Jammal, Director at O’Brien Palmer, sits at the coalface of business turnarounds in Western Sydney. In 2025, he sees a perfect storm forming: aggressive ATO recovery action, squeezed margins from rising costs, and directors pushed into decisions they never anticipated.
“The ATO does not accept ‘COVID’ as a valid excuse for business failure. If your debt dates from before or during COVID, that’s proof you didn’t mitigate risks.”
Nathan Jammal
In this post, we explore the pressures Nathan is seeing, the strategies OBP is employing, and what directors need to know before it’s too late.
1 | The ATO is Coming Harder Than Ever
Nathan emphasises that one of the biggest shifts in 2025 is how relentlessly the ATO is pursuing outstanding tax debt.
- In FY 2024–25, the ATO issued approximately 84,000 Director Penalty Notices (DPNs) – three times what was issued in the previous year.
- Previously more lenient in post-COVID times, the ATO is returning to business-as-usual enforcement across GST, PAYG withholding, and superannuation.
- The ATO’s total debt book has ballooned to over $105 billion, with around $46.4 billion deemed collectible.
Nathan warns: “Garnishee orders, wind-up applications, reporting to bureau agencies — all being used more frequently. Businesses that depend on credit will suffer.”
2 | Cost Pressures, Interest Rates & Market Conditions
Even directors who are compliant with tax obligations are feeling the squeeze.
- Interest rates increases have raised the cost of servicing loans.
- Rising costs of inputs, labour, rent, and utilities are squeezing margins, especially in hospitality, construction, and transport.
- Many businesses simply cannot pass on these costs without losing customers.
Nathan points out that these external pressures force directors toward restructuring not because of mismanagement, but because the environment has changed fundamentally.
3 | Small Business Restructuring (SBR) – Still Valuable, But Tougher
Nathan describes how the SBR regime has helped many businesses, but cautions that it’s no longer a guaranteed solution.
- In past years, SBRs were often approved when the ATO was the majority creditor, provided dividend rates (e.g. 15–20 cents in the dollar) were acceptable.
- Now, the ATO demands stronger evidence of future viability, risk mitigation, and director commitment to compliance.
- Nathan suggests the “sweet spot” dividend rate has shifted upward. He’s seeing rates closer to 25–26 cents as more realistic.
- In one logistics example, debts increased (new creditors appearing), diluting the original dividend pool. The final negotiated dividend was 26 cents, payable over six months via a payment plan.
He also notes: for larger debts (above SBR thresholds), voluntary administration + Deed of Company Arrangement (DOCA) may be more appropriate.
4 | What Shifts the ATO Now Looks at
Nathan and OBP are working proactively with key stakeholders and advisors to anticipate:
- Director history with the ATO, how compliant the director has been in past years.
- Mitigating steps taken before seeking help (i.e. demonstrating efforts to reduce obligations).
- Business trajectory – whether the restructuring is more than a survival act and shows a credible path forward.
- Blame allocation & transparency – the need to explain why debt accrued and what safeguards will be in place post-restructure.
He says: “The ATO doesn’t just want your proposal, they want your narrative, your plan, and your commitment.”
5 | A Call to Early Action & Expert Guidance
Nathan’s message is urgent: waiting costs more than money.
“As a director, it’s your duty to understand your business, your liabilities… especially personal exposure under DPNs or wind-up threats. Early intervention is key.”
OBP in Western Sydney is doing exactly that, taking on cases that others deem hopeless and navigating them toward compromise, survival, or a dignified exit. Nathan’s reputation is built on empathy, strategy, and restoring hope where it seems lost.
Don’t wait until it’s too late. Contact our team today for a confidential discussion on how we can help.
Liam Bailey, Managing Partner
O’Brien Palmer
📞 Need advice? Call us at (61) 2 9232 3322 for a confidential chat.
📩 Email us at: obp1@obp.com.au
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