From August 2025, the ATO will progressively include ‘Debts on Hold' in taxpayers' account balances. These are debts the ATO previously paused collection on. The ATO is looking to collect payment of these tax debts (e.g., by offsetting any refunds or credits otherwise owed to
the relevant taxpayer).
What is a Debt on Hold? See here for further information.
Key points to consider:
🔍 Debts placed on hold before 1 January 2017 will NOT be included for certain taxpayers - subject to pending legislation that will give the ATO discretion NOT to offset tax refunds or credits against these debts.
🔍 Clients with debts on hold ≥ $100 will receive a letter before the debt is added to their account.
🔍 Debts < $100 will be silently included (meaning no letter, but visible in ATO online services and statements).
🔍 You can view details of your’ debts via Mygov.
⏱️ The ATO will stop remitting GIC on these debts six months after they are included in clients’ account balances. After that, GIC will start accruing.
📌 Tip: Now’s the time to review client accounts and plan for any reactivated debt.
What is a Debt on Hold? See here for further information.
Key points to consider:
🔍 Debts placed on hold before 1 January 2017 will NOT be included for certain taxpayers - subject to pending legislation that will give the ATO discretion NOT to offset tax refunds or credits against these debts.
🔍 Clients with debts on hold ≥ $100 will receive a letter before the debt is added to their account.
🔍 Debts < $100 will be silently included (meaning no letter, but visible in ATO online services and statements).
🔍 You can view details of your’ debts via Mygov.
⏱️ The ATO will stop remitting GIC on these debts six months after they are included in clients’ account balances. After that, GIC will start accruing.
📌 Tip: Now’s the time to review client accounts and plan for any reactivated debt.