Debts on Hold - approach and web content consultation
The ISG met out of session, Assistant Commissioner Anita Challen led the consultation on the ATO’s administration of debt on hold, including our approach to making these debts visible in a taxpayer’s accounts:
- The ATO may place tax debts on hold when we determine that the cost to collect is greater than what we might expect to receive in return. While we pause action to collect these debts, they are legally due and payable and can be taken off hold if the taxpayers’ circumstances change.
- Historically, the ATO removed debts on hold from total account balances when they were placed on hold. The ATO is planning to ensure these debts are included within taxpayer account balances, which means that while these debts remain on hold, taxpayers and their agents will have visibility of all the taxes that they owe.
- The ATO provided information to the Individuals Stewardship Group (ISG) on the work to make debts on hold visible.
- The ATO sought feedback from ISG members on the web content that aims to support taxpayers with additional information they may need to help their understanding of debts on hold that is made visible again.
- ISG members advised that the concepts relating to a debt being on hold will be challenging for some taxpayers to understand, the language the ATO use in communications needs to be simple and easy to read. Members advised that some taxpayers will be relying on support persons, carers or financial counsellors to help them understand their situation so communications to support these third parties should be considered.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Robert Thomson, Individuals and Intermediaries (Chair) |
|
ATO |
Anita Challen, Frontline Risk and Strategy |
|
ATO |
Emma Chamberlain |
|
ATO |
Louie Markovski, Superannuation and Employer Obligations |
|
ATO |
Melanie Casey, Individuals and Intermediaries |
|
AMES Australia |
Maria Tsopanis |
|
Australian Shareholders Association Limited |
Eden Zanatta |
|
Financial Counselling Australia |
Lynda Edwards |
|
Financial Counselling Australia |
Zyl Hovenga-Wauchope |
|
People with Disability Australia |
Julian Laurens |
|
Treasury |
Richard Maher |
|
Treasury |
Tom Pollock |
Apologies list
|
Organisation |
Attendee |
|---|---|
|
AMES Australia Chris Pierson |
Chris Pierson |
|
Australian Securities and Investments Commission |
Andrew Dadswell |
|
Federation of Ethnic Communities' Council of Australia |
Beth Hall |
|
First Nations Foundation |
Emma McCashney |
|
National Seniors Australia |
Brendon Radford |
|
Real Estate Institute of Australia |
Jock Kreitals |
|
Tax Clinic |
Connie Vitale |
|
Treasury |
Bede Fraser |