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Changes to offsetting debts on hold

The Government has announced it will give the Commissioner of Taxation the discretion not to apply refunds or credits to debts on hold.

Last updated 27 March 2025

Info Alert
The Australian government is now in Caretaker.

Announced measures that are not yet law will be subject to consideration by the incoming government. In these circumstances, you need to self-assess based on the current law. If you choose to anticipate new law in line with the announcement and it is not enacted, you may need to seek an amendment.

 

For more information, see Administrative treatment of retrospective legislation.

On 14 May 2024, as part of the 2024–25 Budget, the Government announced it will provide the Commissioner of Taxation with the discretion not to apply refunds or credits owing to a taxpayer against debts that:

  • were put on hold before 1 January 2017, and
  • the Commissioner is not currently pursuing recovery of that debt, and
  • the taxpayer is an individual, small business or not-for-profit entity.

This measure is not yet law.

More information:

QC102082