Letters to be sent to clients with debts on hold

The Australian Taxation Office will be sending letters to clients to advise them of their debt on hold on 20 September.

by | Sep 12, 2022

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This is a follow-up from letters sent in May 2022.

This is being used as a reminder that any refunds and credits may be offset against their on-hold debt.

The ATO has advised tax agents their clients may notice that the refund amount they receive is less than expected. In some cases, the ATO may use credits clients received from other government agencies to pay off their tax or super debt.

Tax agents can view these offset transactions in online services for agents — clients will also receive a statement of account (SOA). Tax agents can access clients’ SOA via online services for agents under communication history.

To check if clients have a debt on hold, follow the steps outlined in debts on hold.

If a client has a residual debt after any offsets, they can avoid further general interest change (GIC) by paying in full. If they cannot pay in full, tax agents can set up a payment plan on their behalf.

If clients are experiencing hardship, tell them about the options available to them, or direct them to our website.

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