Old debts and time limits: your questions answered
In plain English
Tax debt in Australia does not expire, and debts the ATO shelved years ago are being re-raised. Why an old balance has appeared, why your refund went to it, and how to check what you actually owe.
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These are short, direct answers. The complete picture is in Old ATO debts resurfacing.
Does ATO debt expire?
No. ATO debt does not expire. There is no time limit on the ATO recovering a tax debt in Australia, so a debt from 5,...
Answer →Is there a statute of limitations on ATO debt?
No. There is no statute of limitations on the ATO collecting a tax debt.
Answer →What is an ATO debt on hold?
A debt on hold is a tax debt the ATO has paused collecting because it decided collection was not cost effective at the...
Answer →Can the ATO chase a 10 year old debt?
Yes. The ATO can chase a 10 year old debt, and right now it is doing exactly that for many people.
Answer →Why was my refund used to pay an old debt?
Because the law requires the ATO to use any refund or credit to pay down a tax debt you owe, and that includes old...
Answer →How do I check what I owe the ATO?
Log in to ATO online services through myGov (individuals and sole traders) or Online services for business, go to Tax,...
Answer →Being chased over a debt from years ago?
There are limits on what the ATO can still recover, and they are not obvious. A specialist can tell you where yours sits.
Why do I owe the ATO money on my tax return?
You owe money because the tax paid on your behalf during the year was less than the tax your return says you owe for...
Answer →The ATO says I owe money I don't recognise. What do I do?
Do not pay it and do not ignore it. First confirm the contact is really from the ATO, then find the debt on your own...
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