ATO 'Debts on Hold' Are Now Showing in Account Balances
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Primary tax-year context: Current Australian tax settings
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General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
What changed
The ATO announced that, from August 2025, it would progressively include “debts on hold” in account balances. These debts were previously not visible in balances but could still be offset against refunds.
The ATO also notes that some older debts (particularly those linked to pre-2017 periods under separate legislation) are not yet included in the on-hold balance display. When a debt is added back to the balance, the ATO applies a temporary remission of general interest charge for six months before standard interest rules apply.
Why it matters
If you or your business have historical tax debts, the visible account balance may increase. This can affect cash flow expectations, refund timing, and your ability to set up payment arrangements.
What to do now
- Check your ATO account for newly visible balances.
- Compare the on-hold amounts with historic BAS, PAYG, and income tax records.
- If the debt seems incorrect, contact the ATO or your tax agent before it starts accruing charges.