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samanthamaree(Newbie)Newbie
26 June 2024

Hi,


I’m currently paying previous financial year tax debt however am expecting to receive a refund this year. My understanding is the amount owed to me this following year will not be returned to me as a cash return but deducted from my outstanding tax balance. Is this correct despite being in a payment plan and I’m unable to request the return to be paid out? I was hoping to put half the amount towards the tax debt and withhold the remaining amount as an emergency fund.


Thank you

12,016 views
1 replies
12,016 views
1 replies

Most helpful response

Most helpful reply

RileyATO(Community Moderator)Community Moderator
27 June 2024

Hi @samanthamaree,


We're required to redirect any overpaid tax to pay off existing debts with us or other government agencies. This is still the case even if you have a payment plan set up.


That said, if redirecting your tax refund to pay your debt would cause serious financial hardship, get in touch with us. We may be able to pay you the refund instead.

All replies

Most helpful reply

RileyATO(Community Moderator)Community Moderator
27 June 2024

Hi @samanthamaree,


We're required to redirect any overpaid tax to pay off existing debts with us or other government agencies. This is still the case even if you have a payment plan set up.


That said, if redirecting your tax refund to pay your debt would cause serious financial hardship, get in touch with us. We may be able to pay you the refund instead.

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Will my tax return automatically go towards my current tax debt (payment plan)? | ATO Community