Debts placed on hold by the ATO

Debts Placed On Hold By The Ato

The ATO has provided some brief updated guidance on the treatment of tax debts that are placed on hold (not pursued). These will not be visible on the balance of the taxpayer’s accounts. However, taxpayers should receive written notification of the decision to place the debt on hold. The ATO guidance also sets out how these debts can be viewed by using online services, for both the taxpayer and registered tax professionals.

Generally, these debts will not be subject to any collection action because it is not considered economical to do so. A debt deemed uneconomical for collection action will however be re-raised at a later date if the taxpayer becomes entitled to credits, which will be applied to reduce the balance, or if their circumstances change.

Where credits arise the ATO will notify the taxpayer when a debt is re-raised to offset the credit. Read more information here: Non-pursued debts

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