From August 2025, the ATO is progressively including ‘debts on hold’ in relevant taxpayer ATO account balances.

A ‘debt on hold’ is an outstanding tax debt where the ATO has previously paused debt collection actions. Tax debts will generally be placed on hold should the ATO decide it is not cost effective to collect the debt at the time.

From August 2025, the ATO will begin including debts placed on hold in the taxpayer’s ATO account balances.  However, only debts placed on hold post 1 January 2017 will be reinstated to the client’s ATO account.

Taxpayers with ‘debts on hold’ of $100 or more will receive (or Kelly & Associates will receive) a letter before it is added to their ATO account balance.  The balance can be viewed in the ATO’s online services or the statement of account.

Taxpayers with a ‘debt on hold’ of less than $100 will not receive a letter, but the debt will be included in their ATO account balance.

Importantly, the ATO will begin charging the general interest charge (‘GIC’) six months from the day the taxpayer’s ‘debt on hold’ has been included in their account balance.

Clients are advised to contact our office should they have a debt on hold and wish to discuss their options.