Debts on hold
An update on debts on hold and upcoming changes to include tax debts on hold in taxpayer's account balances was presented, following a previous presentation to the Individuals Stewardship Group (ISG) in November 2024.
Commencing in August 2025, the Australian Taxation Office (ATO) are progressively including debts placed on hold in account balances.
These are tax debts where recovery action has been paused and the amount of the debt has not been included in client account balances.
We will issue taxpayers with debts on hold over $100 a letter before these are included into accounts. As a result of previous feedback regarding potential disruption and concern for taxpayers receiving correspondence relating to low value debts, we will not send a letter where the debt on hold is below $100.
The letter will provide clarity for taxpayers to understand that the debt will be included in their account balance and remains on hold. It also confirms that all interest accrued during the time it was removed from their account balance will be remitted. With no action required from taxpayers, the ATO will ensure that interest will also be remitted for a further 6 months. Further remissions may be considered upon request, after the initial 6 months, on a case-by-case basis.
The letter includes details about where the debt came from, but there will be no requests for payment and no payment details in the letter. Taxpayers who can and want to pay these debts, can make payment using online services once the debt is included in their account balance.
There will be a notification in online service regarding the inclusion of a debt on hold, which will be visible to taxpayers, and for agents via Online services for agents.
Member feedback
A suggestion was made that an update be provided to financial counsellors and tax help volunteers, recognising that interactions they have with taxpayers at Tax Time are an opportunity to review and help with matters such as this.
Members noted it was positive that a message will be displayed in online services, as accessing letters can be difficult for those living in remote communities.
Vulnerability Framework
The Vulnerability Framework consultation period ran from 12 June 2025 to 18 July 2025, with a significant number of written feedback submissions from a range of stakeholders representing a large cross section of the Australian community.
The ATO thanked members who provided comments and submissions during the consultant period.
The ATO is now working through the feedback received and following this, additional considerations around accessibility of the document will be undertaken.
We are also progressing with the consideration and implementation of the Tax Ombudsman's recommendations following their review into the identification and management of financial abuse within the tax system. Amongst other things, this includes reviewing our staff training and what documentation victims may have readily available that could be used to demonstrate their circumstances whilst seeking to limit any experience of reliving trauma.
Member feedback
Examples of current practical changes to processes to increase support for taxpayers experiencing vulnerability was raised.
Members conveyed they were pleased that the ATO was working on a process for taxpayers to seek support with consideration of how to limit the reliving of trauma.
Members emphasised the need by the ATO the consider safety and non-taxation impacts on individuals that may result from ATO decision making and action.
Community environmental scan
Non-government members were asked to provide insights on what issues and drivers their organisations are currently experiencing.
Members raised awareness of a newly identified scam, targeting remote First Nations communities with illegal online gambling, disguised as playing an online game.
Government members reported focus on implementation of new measures and upcoming economic reform discussions.
The ATO noted an upcoming membership review, welcoming all current non-government members to consider submitting an expression of interest in being a continuing member of the ISG.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Rowan Fox (Chair), Individuals and Intermediaries |
|
ATO |
Anita Challen, Frontline Operations |
|
ATO |
Beth Strods, Individuals and Intermediaries |
|
ATO |
Melanie Markham, Individuals and Intermediaries |
|
ATO |
Patrick Healey, Individuals and Intermediaries |
|
ATO |
Paul Delahunty, Superannuation and Employer Obligations |
|
ATO |
Robert Thomson, Individuals and Intermediaries |
|
ATO |
Tara Pamula, Frontline Operations |
|
Australian Shareholders Association Limited |
Eden Zanatta |
|
Financial Counselling Australia |
Lynda Edwards |
|
First Nations Foundation |
Leah Bennet |
|
Real Estate Institute of Australia |
Shalini Raj |
|
Treasury |
Richard Maher |
Guest attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Yolanda Applebee, Frontline Operations |
|
ATO |
Chanara Fraser, Individuals and Intermediaries |
Apologies list
|
Organisation |
Member |
|---|---|
|
ATO |
Andrew Watson, Individuals and Intermediaries |
|
ATO |
Melanie Casey, Individuals and Intermediaries |
|
ATO |
Trevor Schloss, Superannuation and Employer Obligations |
|
AMES Australia |
Maria Tsopanis |
|
Australian Securities and Investments Commission |
Andrew Dadswell |
|
Federation of Ethnic Communities' Council of Australia |
Emanuel Valageorgiou |
|
Financial Counselling Australia |
Zyl Hovenga-Wauchope |
|
National Seniors Australia |
Brendan Radford |
|
People with Disability Australia |
Julian Laurens |
|
Tax Clinic |
Connie Vitale |