Announcements
We understand 2020 has been difficult and we're here to try and make it easier during tax time. Search posts, read articles or ask a question.

ATO Community

Outstanding previous year's tax bill and refund this year

This post is archived and may not be up-to-date.

Highlighted

I'm new

Views 1293

Replies 1

Hi

I have an outstanding tax bill that I pay off in monthly installments and have recently submitted this year's tax return which looks like having a fairly decent tax refund due to me.

 

Will the refund be paid to me or used to repay the outstanding bill ?

 

Thanks :-)

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @Sunnymd44

 

The answer to your question is a credit will  offset to pay the any debt on  the account, there is some circumstances where this may not occur.

Offsetting is where we use a credit or refund from one account to pay off an outstanding debt on another account with the ATO or another Commonwealth agency. Generally, offsetting is automatic and all credit refunds will be offset against tax debts before any other government agency.

Many business taxpayers have a range of different accounts in relation to their various tax obligations. Generally, where one of your accounts is in credit - that is, we owe you money – we are required to refund that amount to you. You may, however, receive a reduced refund, or no refund at all for a number of reasons, including:

  • having an outstanding debt with us for another type of tax – for example, your activity statement refund may be offset against an income tax debt that you owe
  • having an outstanding debt to another government department or agency which required us to pay any refund to them to cover other debts – for example, Centrelink.

Please see, https://www.ato.gov.au/business/business-activity-statements-(bas)/in-detail/where-is-my-bas-refund-...

 

Regards, Tracey

 

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
1 REPLY 1
Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @Sunnymd44

 

The answer to your question is a credit will  offset to pay the any debt on  the account, there is some circumstances where this may not occur.

Offsetting is where we use a credit or refund from one account to pay off an outstanding debt on another account with the ATO or another Commonwealth agency. Generally, offsetting is automatic and all credit refunds will be offset against tax debts before any other government agency.

Many business taxpayers have a range of different accounts in relation to their various tax obligations. Generally, where one of your accounts is in credit - that is, we owe you money – we are required to refund that amount to you. You may, however, receive a reduced refund, or no refund at all for a number of reasons, including:

  • having an outstanding debt with us for another type of tax – for example, your activity statement refund may be offset against an income tax debt that you owe
  • having an outstanding debt to another government department or agency which required us to pay any refund to them to cover other debts – for example, Centrelink.

Please see, https://www.ato.gov.au/business/business-activity-statements-(bas)/in-detail/where-is-my-bas-refund-...

 

Regards, Tracey

 

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time