ATO Chasing More Taxpayers for Decades-Old Deb

The move has drawn comparisons to the ATO’s controversial 2023 “robotax” initiative, which was suspended following public backlash.

Under this new campaign, some Australians have discovered previously unseen debts appearing on their online tax portals, in some cases dating as far back as 2006. Several taxpayers have reported receiving persistent calls from the ATO demanding repayment, even when they have no record or documentation to verify the alleged debt.

For many, the experience has been stressful and confusing, particularly as they struggle to prove their case without access to records well beyond the standard five-year retention period.

The reappearance of these old debts is part of an ATO initiative that began in August. The tax office has started reintroducing debts that were previously “on hold” back into taxpayer accounts. The stated goal was to improve transparency and ensure individuals have a full picture of their financial standing with the agency. However, the move has reignited debate over the fairness of chasing such historic liabilities, especially when taxpayers had no prior notice or opportunity to dispute them.

The situation bears strong resemblance to the 2023 “robotax” scheme, which sought to recover more than $15 billion in uncollected debts. That program relied heavily on automated systems and was widely criticised for targeting taxpayers with limited ability to respond or verify the claims. Following widespread complaints, the scheme was suspended for debts accrued before 2017.

ATO Commissioner Rob Heferen has previously stated that the agency must address the growing $50 billion in collectible debt. Current tax law allows the ATO to defer pursuing certain debts until it is deemed cost-effective to do so. This means taxpayers can suddenly face demands for repayment many years later.

While the ATO insists that debts affected by pending legislative changes are not currently being pursued, questions remain about why some old debts are being revisited. As public frustration mounts, calls are growing for clearer communication and fairer procedures so taxpayers are not unfairly burdened by historic claims they can no longer substantiate.