Debts placed on hold prior to 1 January 2017
As part of the 2024–25 Budget, the Government has announced it intends to change the law in respect to debts placed on hold prior to 1 January 2017. Subject to the passage of legislation by Parliament, the Government intends for us to have the discretion not to offset refunds against tax debts of individuals, small businesses and not-for-profit entities, where the debts were placed on hold prior to 1 January 2017 and remain on hold. This measure is not yet law.
Until the measure is law, we will continue to pause offsetting of debts of individuals, small businesses and not-for-profit entities that were placed on hold prior to 1 January 2017 and remain on hold.
You can check if you have a debt on hold, including when it was placed on hold.
Other debts on hold
The proposed new law is not intended to apply to:
- debts that were placed on hold on or after 1 January 2017
- debts of large businesses, super funds, multinationals and wealthy groups that were placed on hold prior to 1 January 2017.
The law requires us to offset these debts using any credits or refunds to which taxpayers become entitled.
You can check if you have a debt on hold, including when it was placed on hold.
About debts on hold
We may place a debt on hold if we decide that taking the action required to collect it is not an economical option for us.
Even when a debt is placed on hold it remains legally payable. We do not actively try to collect the debt, but any credits or refunds you become entitled to will be used to pay it off. This is called offsetting.
You may have a debt on hold that does not currently appear on your account – even if your current account balance is zero. You can check if you have a debt on hold, including when it was placed on hold.
If we offset your debt on hold, it will reduce any expected refund. When this happens, a transaction on your statement of account and in ATO online services will reflect all or part of the debt on hold back onto your account to allow the offset to occur.
In some cases, your credit or refund from one account may be used to offset your debt on hold from another account. For example, your GST credit may be used to offset your income tax debt on hold. In these cases, transactions will be shown on both accounts to reflect:
- all or part of the debt on hold back onto your account to allow the offset to occur, and
- the transferred credit or refund offset against the debt taken off hold.
Follow the instructions to find out how to view these transactions in ATO online services.
We may take debts off hold if new information causes us to conclude that collection is now an economic option for us.
You can get more details in PS LA 2011/17 Debt relief, waiver and non-pursuit.
If you need support or help understanding your debt on hold, contact us, or talk to your registered tax or BAS agent or financial adviser.
Offsetting credits or refunds
While we don’t try to collect a debt that is on hold, the law requires us to offset the debt using any credits or refunds to which you become entitled.
You'll be able to see if we've offset your debt on hold by checking your statement of account or in ATO online services.
You don't need to do anything when we offset your debt on hold.
Example: offsetting a tax refund against a debt on hold
In September 2019, Hannah lodged her tax return for the 2018–19 financial year, which resulted in a tax debt of $100.
After pursuing payment, we placed Hannah's $100 debt on hold because she stopped lodging and couldn't be located.
In October 2023, Hannah lodged her tax returns for the 2019–20 to 2022–23 financial years, which resulted in expected tax refunds totalling $900.
We offset her expected tax refunds of $900 against her $100 debt on hold. This reduced her tax refund to $800.
Hannah can see if offsetting has occurred by checking her statement of account or in ATO online services.
End of exampleDiscretion not to offset
As part of the 2024–25 Budget, the Government has announced it intends to change the law in respect of debts placed on hold prior to 1 January 2017. Subject to the passage of legislation by Parliament, the Government intends us to have the discretion not to offset refunds against tax debts of individuals, small businesses and not-for-profit entities, where the debts were placed on hold prior to 1 January 2017 and remain on hold. This measure is not yet law.
There are currently limited circumstances in which we have the discretion not to offset, and to instead issue a refund.
You can find out more in PS LA 2011/21 Offsetting of refunds and credits against taxation and other debts.
Making payments towards your debt on hold
Even though we do not try to collect a debt that is on hold, you can pay all or part of it at any time.
To start making payments towards your debt and have it included in your account balance, contact us. You can also ask us about payment options like payment plans.
Taking debts off hold
We may take debts off hold if new information causes us to conclude that collection is now an economic option for us.
This will usually happen when:
- you have requested to pay
- we have reason to believe you may now be able to pay the debt.
When a debt that does not currently appear on your account is taken off hold, we remit any general interest charge (GIC) that accrued during the time that it was on hold.
Notifying you that we have taken a debt off hold
When a debt is taken off hold:
- it will show as an overdue balance on your statement of account and in ATO online services
- we may also notify you or your authorised representative, either by phone or in writing.
Follow the instructions to see if your debt has been taken off hold.
What to do if your debt is taken off hold
We may take action to recover your debt. You need to pay the overdue amount in full. While the debt remains unpaid, GIC may continue to apply.
If you cannot pay by this date, you may be able to set up a payment plan to pay by instalments.
If you're experiencing financial difficulties and need support, you can refer to:
View your debt on hold transactions
You can use the below instructions to view the original debt on hold and when a debt has been taken off hold:
If you need further information about your debt on hold you can contact us.
Individuals and sole traders
Follow these steps:
- visit ATO online services
- select the Tax drop-down menu
- select Accounts
- select Summary
- choose the account you want to view
- select the Filter drop-down
- update the 'from' date to 01/01/2000
- select Order date by to sort from Oldest to Newest
- select Filter to sort and view transactions.
Scroll through the account onscreen or download a CSV (Excel) file. You can search for transactions as follows:
- To view the original debt on hold, search ‘non-pursuit’.
- To view when a debt has been taken off hold, search 're-raise of non-pursuit' and/or 'partial re-raise of non-pursuit'.
- The net amount of the debits minus the credits is the remaining balance of the debt on hold.
Registered tax professionals
Follow these steps:
- visit Online services for agents
- select View client list or Favourite clients (if you have added client to favourite list)
- select a client
- select the Accounts and payments drop-down menu
- select Accounts Summary
- choose the account you want to view
- select the Filter drop-down
- update the 'from' date to 01/01/2000
- select Order date by to sort from Oldest to Newest
- select Filter to sort and view transactions.
Scroll through the account onscreen or download a CSV (Excel) file. You can search for transactions as follows:
- To view the original debt on hold, search ‘non-pursuit’.
- To view when a debt has been taken off hold, search 're-raise of non-pursuit' and/or 'partial re-raise of non-pursuit'.
- The net amount of the debits minus the credits is the remaining balance of the debt on hold.
Businesses
Follow these steps:
- visit Businesses and organisations online services
- select the Accounts and payments drop-down menu
- select Account Summary
- choose the account you want to view
- select the Filter drop-down
- update the 'from' date to 01/01/2000
- select Order date by to sort from Oldest to Newest
- select Filter to sort and view transactions.
Scroll through the account onscreen or download a CSV (Excel) file. You can search for transactions as follows:
- To view the original debt on hold, search ‘non-pursuit’.
- To view when a debt has been taken off hold, search 're-raise of non-pursuit' and/or 'partial re-raise of non-pursuit'.
- The net amount of the debits minus the credits is the remaining balance of the debt on hold.