Life situations: your questions answered
In plain English
Tax debt rarely arrives on its own. Death, divorce, moving overseas, Centrelink, gig work, a business closed years ago: what changes in each situation and where to start.
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These are short, direct answers. The complete picture is in Can't pay your tax bill.
What happens to tax debt when you die?
The tax debt becomes a debt of the estate. It is paid from the deceased person's assets before anything goes to...
Answer →Who pays the tax debt in a divorce?
As far as the ATO is concerned, the person named on the assessment pays.
Answer →Is my spouse liable for my tax debt?
No. Your spouse is not liable for your tax debt just because you are married or in a de facto relationship.
Answer →I left Australia with a tax debt. What happens when I come back?
The debt will be waiting, larger than when you left, and you become much easier to collect from once you are back.
Answer →Can the ATO chase me overseas?
Yes, though how hard depends on where you are and what you left behind.
Answer →I am on Centrelink with an ATO debt. What are my options?
You have more protection than you might think, and real options.
Answer →Tax debt stress: where to start when you can't face it
Start with one small thing, not the whole problem. Tonight, that can be opening the envelopes.
Answer →Rideshare and gig drivers with ATO debt: why it builds and what to do
Rideshare and gig debt builds because nothing is taken out before the money reaches you.
Answer →Tax debt landed on you through your circumstances?
Illness, separation, a partner's business. A specialist can tell you what you are actually liable for.
Tradies with ATO debt: why it builds and what to do
Tradie tax debt builds because you are paid gross and taxed later.
Answer →Does ATO debt affect my visa or citizenship application?
A tax debt is not, by itself, a ground for cancelling a visa, and the ATO does not routinely report it to the...
Answer →I owe tax on crypto I no longer have. What now?
Yes, the tax is still owed, but it can be managed. CGT is worked out when you dispose of crypto, so a gain from a sale...
Answer →Tax debt from a business I closed years ago: do I still owe it?
Usually, yes. Tax debt in Australia does not expire, so a debt from a business you closed years ago is still owed...
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