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Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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Re: Retaining Cashflow Boost for ATO Debt

Newbie

Views 873

Replies 4

Hi All,

 

Just wondering if anyone else has had their cashflow boost retained and offset a previous periods debt.  The ATO web page states that:

 

"The cash flow boost will be applied to reduce liabilities arising from the same activity statement."

 

"To support eligable entities during the period associated with COVID 19, any excess credit from the activity statement that received the cash flow boost amount will be refuded to you, rather than offset any other tax debts you have."

 

I have been told that "any other tax debts" does not include BAS owing and hence the full cashflow boost (I am talking about the first one which I have now only just received).  Has this been the experience of anyone else?  It seems counter intuitive to me - how is paying a tax debt boosting the economy?

 

Anyone else been in this position?

 

Thanks

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 1

Hi @FrustratedATO

 

I see what you will receive  as detailed above is what our website clearly defines.

 

If the Cash Flow Boost credit has been offset towards a liability other than a debt that was raised on the same period within your integrated client account (BAS) you may need to contact us and request a reversal of any incorrect offsetting that has occurred.

 

Hope this helps.

 

 

4 REPLIES 4

Devotee

Replies 3

My understanding is that the legislation allows the ATO to withhold the cash flow boost. They have stated (as you've pointed out) that the policy to to pay it, but they can withhold it if they choose to. How long has your debt been outstanding for?

Newbie

Replies 2

Thanks for your information.  Debt is about 12 months old but is under a payment plan which I am adhering to.

 

The wording on the website about this is misleading and false in my view.

Most helpful response

Devotee

Replies 1

Hi @FrustratedATO

 

I see what you will receive  as detailed above is what our website clearly defines.

 

If the Cash Flow Boost credit has been offset towards a liability other than a debt that was raised on the same period within your integrated client account (BAS) you may need to contact us and request a reversal of any incorrect offsetting that has occurred.

 

Hope this helps.

 

 

Newbie

Replies 0

Hi Denise

 

Thank you for your advice - very much appreciated.  I have called the ATO aghain as you suggested and the $10K is being transferred within the next 2 weeks.

 

This is a more logical outcome than the advice I received from the person working in Escalations and Complaints who told me "that is the way it is" and if I wanted to pursue it, to write to my local Federal MP.  I did send that email yesterday but will call up today and advise issue is resolved.

 

Thanks again.

 

Cheers

 

Adam