You’ve sorted all the receipts, waded through the paperwork, been to see the tax agent and your returns are finally ~finally~ up to date. Even better, you’ve been told there is a tax refund coming – YAY!
Except …. no tax refund arrives.
Did you know that the ATO uses tax refunds to pay debt(s)?
If you have a tax debt and you’re due to receive a refund, the ATO is required by law to use the refund or credit to reduce your debt. AND if you have a debt owing to other Australian Government agencies, eg. overdue child support payment or Centrelink debt, then part or all of your tax refund will be paid to the Department of Human Services.
Once all your debts have been cleared, any remaining refund will be credited to you.
Exception to the rule …
If you need the refund payment to avoid serious hardship, the ATO may be able to pay it to you instead. For further information visit the ATO website.
At Life After Debt ® we know that many families rely on that “bonus” of receiving an annual tax refund. If it doesn’t arrive then it can have serious implications for how they will cope with bills and debts to pay. You do not need to struggle on with unmanageable debt – let us take the stress away. Lose your debt, not your dignity. Contact one of our friendly and sympathetic debt consultants today for your free and confidential debt solutions assessment. Debt relief is just a phone call away.
We deal with the ATO and Department of Human Services (Centrelink debts) every single day when finding debt solutions for our clients. If you would like to discuss a tax debt, Centrelink debt, credit card debt, personal loan debt or even just the debt that Aunty Gladys loaned you – then give us a call.