This is the exact opposite of that.
The ATO has decided that debts they’ve had “on hold” for you (which sounds friendly, like they were babysitting it for you) are now going to show up in your ATO account balance..
Basically, it’s when the ATO has gone: “Look, it’s not worth chasing you for this tax debt right now. We’ll just… pop it on the shelf.”
While it’s on that shelf...
But don’t be fooled.
It’s still there, waiting. 👻
As of 1 August 2025, these shelf-dwelling debts are making their big comeback tour by appearing in your ATO online balance.
So if you thought you had a nice clean $0 balance… surprise! It might just mean your shelf debt hadn’t been unwrapped yet.
If you have debt on hold, you will receive a letter from the ATO advising you of this (unless the debt is under $100).
While the debt was hidden, no interest piled up. Nice.
Once it’s in your account balance, you’ve got six months’ grace where it’s still interest-free.
After that? The interest meter starts ticking like a taxi parked in traffic.
If you have debt on hold, you have a six-month window before the debt starts to grow again.
Which means now’s the time to...
✅ Check your ATO account. Don’t trust the $0 balance. It might be a mirage.
✅ Think about paying some off early. Even a chunk knocks the future interest down.
✅ Have that chat with your accountant. Yes, the awkward one about tax debts. They’ll help you work out a plan that doesn’t ruin your sleep schedule.
“Debts on hold” were never gone, they were just playing hide-and-seek.
Now the ATO has turned the lights on. You’ve got six months to make a move before interest starts piling up.
👉 Want to get ahead of it? Call us. We’ll help you dust off those shelf debts and keep the ATO gremlins from chewing through your sleep at night.
– The team at PAL (making accounting slightly less boring since way back when)
Disclaimer: This article is here to give you general info only, not professional advice specific to your unique situation. While efforts are made to ensure accuracy, the content may change over time. We can’t take responsibility for any decisions based on the contents of this article, so be sure to chat with your accountant or advisor first!
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