November 28, 2025
ATO Debts on Hold Are Back – What You Need to Know
If you thought those old ATO debts were gone for good, think again! The Australian Taxation Office (ATO) has started reinstating debts that were previously placed “on hold” into taxpayer account balances. These are amounts the ATO paused collecting—often because you were doing it tough financially or because chasing them wasn’t worth the effort at the time.
What’s Changed?
From August 2025, these debts are now visible in your online ATO account. Even if you haven’t heard about them for years, they’re back. While the ATO won’t immediately start knocking on your door for payment, these debts are still legally payable and will attract General Interest Charges (GIC) six months after being reinstated.
Will You Get a Heads-Up?
- Debts over $100: You’ll receive a letter before it’s added to your account.
- Smaller debts: These will quietly appear without notice.
So, don’t be surprised if your account balance suddenly looks a little healthier (for the ATO, that is!).
Why Does This Matter?
This change could catch many taxpayers off guard. If you’ve been budgeting based on your current balance, an unexpected increase could throw things out of whack. Planning ahead is key—especially if you’re managing cash flow for your business or household.
What Should You Do?
- Log in to your ATO account and check your balance.
- Review your position—do you have old debts that have resurfaced?
- Plan for repayment before GIC kicks in (six months after reinstatement).
- If you’re unsure or need help negotiating a payment plan, reach out to us for assistance.
Where to Get More Info
The ATO has published an update on this change. You can read the full details
here.
Bottom line: Those “forgotten” debts aren’t forgotten anymore. A quick check now could save you stress (and interest charges) later, that are no longer tax deductible.
