ATO’s Bringing Old Debts Back Into the Spotlight

What’s more exciting than seeing old tax debts rise from the dead?

From August 2025, the ATO will begin including previously “on hold” debts back into account balances. That means these amounts will now show up again ,even though the ATO isn’t actively collecting them.

Here’s what to know:

• These debts were placed on hold because collecting them wasn’t cost-effective at the time.

• Any future credits or refunds will automatically be used to reduce the debt.

• For debts of $100 or more, expect a notification letter. Smaller amounts will simply appear in your balance.

• The General Interest Charge (GIC) will remain remitted for six months after inclusion — after that, interest may start to apply.

The takeaway: If you have a debt on hold, it hasn’t disappeared. It’s just been waiting quietly in the background. This change is designed to give taxpayers a clearer picture of their total ATO balance.

If you’re unsure how this might affect you or your clients, our team at ZT Partners can help you review your ATO account balance and plan ahead with confidence.

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