ATO debt on hold notices

Nov 20, 2023

Please be aware the Australian Taxation Office can put a debt on hold if they determine it is uneconomical to pursue. This could be due to one of the following reasons: the age of the debt, the anticipated cost of future recovery is likely to exceed the amount of the outstanding debt, the asset position of the taxpayer, etc.

If a debt is put on hold, you will receive a letter notifying you of this. Your ATO account will also display a transaction labeled “non-pursuit” for the on-hold debt amount. While a debt is on hold the ATO does not try to collect it. However, as required by law, any credits or refunds you become entitled to are used to pay off the debt. This ‘’debt on hold’’ amount will still remain on your ATO records.

This debt on hold amount can be reinstated and you will be notified by a letter or phone call. You will be advised of the amount along with the due date. Even if the debt is not reinstated you can pay off your on-hold debt at any time.

For more information surrounding on-hold tax debts visit the Australian Tax Office website here. Alternatively, contact us with any questions you have and we can help you make payment arrangements with the ATO.

Disclaimer: This article contains general information only. The information contained in this article is not designed to be a substitute for professional advice as such a brief guide cannot consider and cover all individual needs, objectives, circumstances and conditions applying to the law as it relates to these items mentioned in this article. No responsibility can be accepted for errors, omissions or possible misleading statements or for any decisions or actions taken as a result of any material in this communication. Appropriate expert advice should always be considered from a professional financial adviser prior to making any financial decisions. Liability limited by a Scheme approved under Professional Standards Legislation.
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