ATO Resuming Offsetting of Debts Previously on Hold!

  1. Home
  2. /
  3. Featured
  4. /
  5. ATO Resuming Offsetting of Debts Previously on Hold!

The ATO’s automated system to re-raise ‘aged debts’ was paused in January 2020, allowing credits that would otherwise have been applied to those debts to instead be refunded to taxpayers to assist them through the COVID pandemic.

 

From May 2022, some clients of agents may receive a letter to their postal address reminding them of their ‘aged debt’.

 

An ‘aged debt’ is an uneconomical non-pursued debt that the ATO placed on hold and has not undertaken any recent action to collect.

A client’s non-pursued debt amount does not show as an outstanding balance on their account as the ATO made it ‘inactive’.

However, the ATO has advised that from June 2022, it will recommence offsetting customers’ tax refunds or credits to pay off their debts on hold.

Some of you may notice that your refund is less than expected as the ATO use a tax refund or credit from one account to pay off outstanding debt on the same or another account.

In some cases, the ATO may use credits customers receive from other government agencies to pay off their debt too.

If this happens to you, then you will receive a Statement of Account.

It is always a good idea to get on the front foot with the ATO and work out a payment plan to help you meet your obligations without added stress. Let us know if you need help.

Have a great day!

 

Read more of our daily blogs in our Chasing the Dream Facebook Community

Share This

Related Posts

investing in small business development
Featured
4 Min Read

Investing in Business Development

Business development is a crucial aspect of any organisation, big or small. It involves identifying and pursuing new opportunities for growth, as well as cultivating relationships with customers, partners, and other stakeholders. A strong focus on…
Read Full Article
Featured
4 Min Read

On the 25th Day of Christmas …

Merry Christmas, Chasers! I hope that you enjoy this special day with your loved ones, celebrating one of life’s greatest but simple pleasures – time with each other. Have an amazingly great day!   Read more…
Read Full Article