Offsetting debts on hold

We're writing to small businesses with debts on hold greater than $10 that may be affected by offsetting.

When a debt is on hold, we don't try to collect it, however, 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.

After offsetting, you don't need to do anything, any balance still payable remains on hold. We'll continue to offset any credits or refunds until the debt on hold is paid in full.

Debts on hold and offset transactions are shown on your statement of account or in ATO Online services. Our website has instructions on how to view these transactions.

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

Remember, registered tax and BAS agents can help you with your tax.