From August 2025, the ATO will change the way your tax account appears, which may affect what you see when you log in.
Until now, any “debts on hold” weren’t included in your account balance. That sometimes made it tricky to get a clear picture of what was owed. From August, these debts will start appearing in your account, giving you (and your bookkeeper or BAS Agent) better visibility of your full tax position.
What Is a “Debt on Hold”?
A debt on hold happens when the ATO pauses collecting money you owe. This usually happens if the amount is small, or it wasn’t worth chasing at the time.
While the debt is on hold:
- The ATO doesn’t contact you about it.
- Any future credits or refunds are automatically used to reduce the debt.
Up until now, you couldn’t see these amounts in your account balance. From August, that changes.
Debts put on hold before 1 January 2017 aren’t included yet, as the legislation around those is still being finalised.
What You’ll Notice
Here’s what the update will look like in practice:
- If you have a debt on hold of $100 or more: You’ll get a letter before it’s added to your account.
- If it’s under $100: It will be added automatically, without a letter.
- If you’re already on a payment plan: The ATO will consult with your BAS Agent before adding a debt on hold.
Once added, you’ll also be able to see details such as:
- What type of tax the debt relates to
- The periods it covers
Your BAS Agent will also see this information when viewing your account.
Interest and Payments
While a debt is on hold, no interest is charged. Once it’s added to your account balance, the ATO will continue to waive interest for six months.
After that, interest may begin to accrue.
The good news? You can pay off all or part of the debt at any time to avoid future interest.
Why This Matters
This change is designed to make your tax account more transparent. By showing all debts in one place, you’ll be able to:
- See your true account balance at a glance.
- Plan ahead with more accurate information.
- Work with your bookkeeper or BAS Agent to make smarter payment decisions.
- Avoid unexpected interest charges.
In short, you’ll have a clearer picture of your obligations and more control over how you manage them.
