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K24jazz(Newbie)Newbie
19 Mar 2025

Hi,


For the past two years I have suffered from illness which has also lead into mental illness and also no work in this period of time.


After ringing ATO it seems the only option offered for my debt is a payment plan even tho I have no income. Is there any other options for debts being put on hold? Or is the only option to go bankrupt?


Thank you.

646 views
2 replies
646 views
2 replies

Most helpful response

Most helpful reply

BrookeATO(Community Support)Community Support
20 Mar 2025

Hi @K24jazz

 

We just want to add some extra info to @YellowPotato’s response which could help further –

 

  • We can place your debt on hold. You still owe the amount, it's just on hold until you're able to address it. You should note that any refunds that arise from lodgments will offset the debt you have on hold.
  • We can compromise your tax debt. Which means both yourself and the ATO will come to an agreement to accept a lesser amount to satisfy your tax debt or not pursue the balance. However, there is quite a strict criterion for us to accept.

 

We'd also suggest reaching out to the National Debt Helpline – they’re a great organisation and can help you work out the next steps in addressing any debt.

All replies

Most helpful reply

BrookeATO(Community Support)Community Support
20 Mar 2025

Hi @K24jazz

 

We just want to add some extra info to @YellowPotato’s response which could help further –

 

  • We can place your debt on hold. You still owe the amount, it's just on hold until you're able to address it. You should note that any refunds that arise from lodgments will offset the debt you have on hold.
  • We can compromise your tax debt. Which means both yourself and the ATO will come to an agreement to accept a lesser amount to satisfy your tax debt or not pursue the balance. However, there is quite a strict criterion for us to accept.

 

We'd also suggest reaching out to the National Debt Helpline – they’re a great organisation and can help you work out the next steps in addressing any debt.

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Any alternative options other than payment plan? | ATO Community