The regulator advises that when a debt is on hold, it doesn’t try to collect it, however, any credits or refunds the fund may become entitled to are used to pay off the debt.
“This is called offsetting and it’s required by law,” the ATO stated.
After offsetting, the ATO said an SMSF doesn’t need to do anything as any balance still payable remains on hold.
The Tax Office will continue to offset any credits or refunds until the debt on hold is paid in full.
Debts on hold and offset transactions are shown on the fund’s statement of account or in ATO Online Services.
The ATO website has instructions on how to view these transactions.
It says an SMSF can pay all or part of its debt at any time.
“If you want to start making payments towards your debt on hold and have it included in your account balance, you can contact us. You can also ask us about payment options such as payment plans,” it said.
Meanwhile, the ATO is encouraging SMSF advisers, members and practitioners to register for the upcoming webinar on SMSFs.
Guest speaker, Kelly Grant, director, SMSF trustee risk and strategy will give an overview of the ATO’s SMSF compliance program for 2023.
The webinar will cover key risks in the sector, the results of the ATO’s compliance program and its compliance focus for 2023–24.
The open forum will also cover a range of topics including SMSF identity fraud and common issues that affect the compliance of SMSFs with super laws.
There will also be discussion on broader issues including lodge and pay covering tax-time education and awareness and obligations approaching tax time.
The open forums are interactive webinars where participants can hear the latest updates and are able to raise questions.
The webinar will be held on 14 June and although they are not recorded, a copy of slides is provided to attendees after the session.
