Offsetting credits and refunds from debts on hold

From October 2023, ATO has been writing to small businesses with debts on hold greater than $50.

When a debt is on hold, any credits or refunds you become entitled to are used to pay off the debt. This is called offsetting and it's required by law. When you lodge your tax return or BAS, you may find your credit or refund is less than expected or reduced to zero.

Even if you don't receive a letter, you may still have a debt on hold.

You can see if you have a debt on hold or if offsetting has occurred by checking your statement of account or ATO Online services.

You can pay all or part of your debt on hold at any time. If you want to start making payments towards your debt on hold and have it included in your account balance, you need to contact ATO. You can also ask about payment options such as payment plans.

Linkinks is a registered tax agent and we can help you with your tax. Talk to us today for more info.

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Disclaimer:
The information and content provided in this publication are purely for informative purposes. It is not meant to serve as advice, and decisions should not be made solely based on this information. .