Compliance
Navigating Compliance: New Transparent Debt Reporting and GIC Relief for Held Debts
The ATO has changed how debts on hold are reflected in taxpayer accounts and begun remitting interest charges for many—crucial changes for individuals and SMEs.
By NomadicTax Research Team • 5-8 min read • April 29, 2026
## What’s New in Debt Reporting and Interest (GIC)
Recently the ATO announced it will **include debts on hold** in taxpayers’ account balances—something previously excluded for many. Alongside this, for those debts, the ATO will remit General Interest Charge (GIC) for a specific period. ([ato.gov.au](https://www.ato.gov.au/media-centre/deputy-commissioner-anna-longleys-speech-to-the-tax-institute-tax-summit?utm_source=openai))
Debts placed on hold nationally have been subject to **offsetting against refunds or credits**, but until now many were invisible in account balances. Now password notifications and transparent reporting will make these obligations visible. Importantly, while the debts show up in balances, **active recovery is not pursued while on hold**. ([ato.gov.au](https://www.ato.gov.au/media-centre/deputy-commissioner-anna-longleys-speech-to-the-tax-institute-tax-summit?utm_source=openai))
GIC remittance also applies for additional months—after inclusion, the ATO will continue remitting GIC for **six months** before interest applies. This provides breathing space to understand the full liability. ([ato.gov.au](https://www.ato.gov.au/media-centre/deputy-commissioner-anna-longleys-speech-to-the-tax-institute-tax-summit?utm_source=openai))
## Who’s Affected?
- **Individuals**, **small businesses**, and **not-for-profit** entities—debt-on-hold inclusion and GIC relief applies particularly to these groups. ([ato.gov.au](https://www.ato.gov.au/media-centre/deputy-commissioner-anna-longleys-speech-to-the-tax-institute-tax-summit?utm_source=openai))
- Debts placed on hold **since January 2017** are currently excluded from this treatment unless notified otherwise. ([ato.gov.au](https://www.ato.gov.au/media-centre/deputy-commissioner-anna-longleys-speech-to-the-tax-institute-tax-summit?utm_source=openai))
## Action Steps: What You Should Do
1. **Check your ATO account statements**: Log into your personal or business myGov/AusTax record and verify if any debts on hold are now listed.
2. **Review past notifications**: The ATO is sending letters to taxpayers or tax agents—if you’ve received one, it will explain amounts and next steps. Missing notifications may affect your planning.
3. **Plan for cashflow implications**: Though debt recovery isn’t proceeding during the ‘hold’, the amounts could interact with refunds or offsets. Forecast whether your refunds may be impacted and confirm eligibility.
4. **Monitor GIC accrual**: Since interest will begin after six months, understand whether your debt-on-hold status could turn into interest liability. If possible, resolve or negotiate debts before then.
## Practical Example
- **Scenario**: Joanne, a small business operator, had a $5,000 debt on hold since 2022. Previously, it wasn’t showing up, and she didn’t realise it offset her GST refund. Under the new system, she sees it in her balance now; the ATO remits GIC until six months after inclusion, giving her time to resolve it—perhaps by setting up a payment plan or clearing it before GIC kicks back in.
## Key Takeaways
- This transparency reduces **surprise debts** and supports financial planning.
- Relief on interest (GIC) provides short-term buffering; if debts are large, consider negotiating settlement or proactive repayment.
- Consult your tax agent if you have concerns—especially around refunded amounts or cashflow due to offsetting of debts.