Can I get my debt taken back from the collector?
Short answer
In practice, yes. The ATO never handed your debt over, so you can deal with the ATO directly at any time. You simply engage with the ATO, most often by setting up a payment plan, and once the account is being managed the collector's involvement usually ends. If nothing is resolved, the file returns to the ATO anyway. Read ATO debt collectors for the full process.
The ATO still owns the debt
A referral to recoveriescorp is a contract for contact, not a sale. The debt sits on your ATO account throughout, the ATO is still the creditor, and the ATO's own phone lines and online services keep working for you. Nothing about the referral stops you from ringing the ATO on 13 11 42 or setting up a plan yourself.
That is why the practical answer to getting a debt back is to make the collector unnecessary. Recoveriescorp exists to get a response from people the ATO could not reach. When you become the person who is responding, there is nothing left for it to do.
How to move it back in practice
- Check your account. Log in to ATO online services, confirm the balance and see whether any returns or BAS are outstanding.
- Set up an ATO payment plan. Online for debts up to $200,000, or by phone above that or if you want to discuss terms. If you prefer, tell the collector you are doing this with the ATO directly.
- Ask for the referral to be noted. When you speak to the ATO, say the account was referred and ask them to record that you are now engaging.
- Keep the plan. Two defaulted or cancelled plans in 12 months closes the online channel and makes the next referral or firmer action more likely.
If you dispute the amount rather than just wanting more time, tell both the collector and the ATO, and look at how to dispute an ATO debt. A genuine objection or review request is itself a form of engagement.
Prefer to deal with the ATO directly?
A specialist can deal with the ATO for you and put an arrangement in place.
When it goes back without you
Referrals run for a set period. If the collector cannot get a resolution, the account is returned to the ATO. That sounds like good news, but it usually is not. A file that comes back unresolved has already been through a warning letter and a collection cycle, and the next step is often a garnishee notice to your bank or employer, or a director penalty notice if the debt is a company's.
The window while the collector is involved is generally the easiest time to get an arrangement accepted. If the numbers do not work, a tax debt specialist can help you work out what to offer before the ATO moves on.
What to do next
- Log in to ATO online services and confirm your balance and any outstanding lodgements.
- Set up a payment plan with the ATO directly, or through the collector, and note the confirmation.
- If you dispute the amount, lodge the objection or ask for a review rather than ignoring the contact.
Related questions
Can I refuse to speak to recoveriescorp?
You can choose to deal with the ATO instead, and many people do. What you cannot do is refuse to engage with anyone and expect the debt to stay quiet. If neither the collector nor the ATO hears from you, the file goes back to the ATO for firmer action.
Does the ATO know what I told the collector?
Yes. Recoveriescorp reports back to the ATO on contact made, arrangements discussed and whether you engaged. Anything you agree with the collector should match what your ATO account shows, so check online services after any arrangement is made.
Prefer to deal with the ATO directly?
A specialist can deal with the ATO for you and put an arrangement in place.
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