Debts on hold

About debts on hold

We may place a debt on hold if we decide that taking active steps to collect the debt is not an economical option for us.

While a debt is on hold we do not try to collect it. However, any credits or refunds you become entitled to are used to pay off the debt. This is required by law.

When we make the decision to place a debt on hold:

• we tell you by letter that we have paused debt collection, but any credits or refunds you become entitled to will be used to pay off the debt
• you will see a transaction with the description ‘non-pursuit’ on your statement of account or you can view it in ATO online services
• your debt on hold will not show as an outstanding balance on your account, as we have made it ‘inactive’, but the debt is still on your record
• although we have placed your debt on hold, the debt remains payable.

You can get more details in PS LA 2011/17 Debt relief, waiver and non-pursuit.

If you need support or help understanding your debt on hold, contact us, or talk to your registered tax or BAS agent or financial adviser.

Making payments towards your debt on hold

Even though we do not try to collect a debt that's on hold, you can pay all or part of it at any time.

To start making payments towards your debt and have it included in your account balance, contact us. You can also ask us about payment options like payment plans.

Offsetting credits or refunds

While we don’t try to collect a debt that is on hold, the law requires us to use any credits or refunds you become entitled to, to pay off the debt. We call this offsetting.

When we use a credit or refund to pay your debt on hold, an offset transaction can be found on your statement of account or in ATO online services with the description 'offset'.

You don't need to do anything when we offset your debt on hold.

After offsetting, any balance still payable will remain on hold. You don't need to do anything. We will continue to offset any credits or refunds until your debt on hold is paid in full.

Discretion not to offset

There are limited circumstances in which we have the discretion not to offset, and to instead issue a refund.

You can find out more in PS LA 2011/21 Offsetting of refunds and credits against taxation and other debts.

Reactivating debts on hold

We may reactivate a debt on hold (take a debt off hold) if new information suggests collection is now an economic option for us.

This will usually happen when:

• you have requested to pay
• we have reason to believe you may now be able to pay the debt.

When a debt is reactivated, we remit any general interest charge (GIC) that accrued during the time that it was on hold.

Notifying you of a reactivated debt

When a debt is reactivated:

• it will show as an outstanding balance on your statement of account and in ATO online services, as we have made it ‘active’
• we may also notify you or your authorised representative, either by phone or in writing.

Your statement of account and tax account in ATO online services will show one of the following transactions to reflect the debt on hold has been reactivated:

• re-raise of non-pursuit
• partial re-raise of non-pursuit
• cancellation of non-pursuit.

What to do if your debt is reactivated

When we tell you your debt has been reactivated, you need to pay the outstanding amount in full by the due date advised. If you cannot pay by this date, you may be able to set up a payment plan to pay by instalments.

If you're experiencing financial difficulties and need support, you can refer to:

• Tax support for individuals
• Tax support for businesses and not-for-profits

View your debts on hold or offset transactions

Individuals and sole traders:

• visit ATO online services
• select the Tax drop-down menu
• select Accounts
• select Tax accounts
• choose the account you want to view
• select Filter
• update the 'from' date to 01/01/2000
• scroll through the account or download CSV (Excel) file and search for the following transactions
  • for debts on hold search ‘non-pursuit’, 're-raise of non-pursuit', 'partial re-raise of non-pursuit' and 'cancellation of non-pursuit' – the net amount of the debits minus the credits is the remaining balance of the debt on hold
  • for offsetting search 'offset' – this shows the amount of credit or refund that's been used to offset the debt.

Registered tax professionals:

• visit Online services for agents
• select View client list or Favourite clients (if you have added client to favourite list)
• choose Client identifier
• select the Accounts and payments drop-down menu
• select Tax accounts
• choose the account you want to view
• select Filter
• update the 'from' date to 01/01/2000
• scroll through the account or download CSV (Excel) file and search for the following transactions
  • for debts on hold search ‘non-pursuit’, 're-raise of non-pursuit', 'partial re-raise of non-pursuit' and 'cancellation of non-pursuit' – the net amount of the debits minus the credits is the remaining balance of debt on hold
  • for offsetting search 'offset' – this shows the amount of credit or refund that's been used to offset the debt.

Businesses:

• visit Online services for business
• select the Accounts and payments drop-down menu
• select Tax accounts
• choose the account you want to view
• select Filter
• update the 'from' date to 01/01/2000
• scroll through the account or download CSV (Excel) file and search for the following transactions
  • for debts on hold search ‘non-pursuit’, 're-raise of non-pursuit', 'partial re-raise of non-pursuit' and 'cancellation of non-pursuit' – the net amount of the debits minus the credits is the remaining balance of debt on hold
  • for offsetting search 'offset' – this shows the amount of credit or refund that's been used to offset the debt.

What debts on hold are and how we offset credits and refunds against them.