Reduced tax return as Tax office chases historic debts

Australian Treasurer Jim Chalmers Source: AAP / LUKAS COCH/AAPIMAGE

Hundreds of thousands of people could receive a reduced tax return this year after the Australian Taxation Office quietly reactivated the debts of nearly 300,000 people.

The historic debts were placed on hold during the 2020 Black Summer Bushfires and the COVID-19 pandemic, but the ATO has now decided to recoup at least $274 million of the debts owed to them.
McCann Financial Group director Phil McCann says the A-T-O is legally required to pursue debts, but more notice should be given to people who owe money.
The ATO says they have written directly to some taxpayers or their registered tax agents notifying them of their debt on hold, and to remind them that the ATO has recommenced offsetting any credits and refunds against their on-hold debts.