The ATO has reached out to small businesses who may have recently received a letter advising that they have a debt on hold, and any credits or refunds would be offset against this debt.
As a result, some may find that their refund or credit is less than expected.
The ATO paused offsetting refunds or credits temporarily during the pandemic, however since June 2022, a restart to offsets of refunds and credits will be utilised to pay off debts on hold.
‘Awareness letters’ were also sent to some not-for-profits and individuals in September 2022, similarly advising them that credits or refunds would be offset against existing debt.
Taxpayers can use Online services for business to search for debts that were previously put on hold and not included in their account balance.
A debt on hold remains payable and collection action may recommence if:
- the taxpayer’s circumstances change, and the ATO has reason to believe they are now able to pay the debt;
- the taxpayer agrees to pay their debt; or
- the taxpayer has a refund or credit balance which will automatically be offset to their debt on hold.
Robinson Voss Partners can provide further information and support if needed, and we welcome you to contact us to find out more about the restart to offsets. Phone our team on 03 9708 8801 or email firstname.lastname@example.org.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.