ATO Payment Plans - A Guide to the Tax Office

ATO Payment Plans - Why use them to pay your Tax Debt?

Regardless of business size, most need to obtain ato payment plans for BAS or income tax at some point. Consequently, if you cannot meet your obligations, the ATO will be assessing if your business is viable and if it should remain open. As such, many businesses close as a result of not meeting ato obligations. For that reason, it is essential to obtain approval for a tax debt payment plans.

Changes in PAYG requirements require payment plans for tax debt

The Australian Tax Office is opposed to keeping ongoing tax debt outstanding. As such, don't make a mistake as a result of managing obligations incorrectly. Because what was previously accepted has changed; and the ATO now wants tax paid as you go (PAYG). As such, business can find this difficult and ato payment plans are required.

It is important to plan your approach and have an understanding of ATO policies. As the ATO will make decisions based on your information provided; ensure you submit accurate information. Also, if your information does not fully meet the ATO policies, your payment plan will be rejected, or the payment terms will be inappropriate.

  • Firstly, securing an ATO payment plan can be daunting, causing you to delay. However, leaving a tax account in default or unpaid could cause you more issues. Indeed, as the ATO will make decisions based on that information. Therefore, ATO payment plans should be the first solution sought.
  • Secondly, securing a suitable payment plan can alleviate risk from the Tax Office; plus potentially prevent a large lump sum payment or insolvency.
  • Thirdly, keep in mind that a payment plan for your tax debt may be a temporary fix; as the payments may be over a two-year term and consequently too high to manage long term.

Read on to gain valuable information on the ato payment plans to assess your best move forward.

An Overview of ATO Tax Debt Payment Plans

There are a few general points to remember when planning your tax debt payment plan with the ato. As such, there are some precise policies; however, these are a general overview. Consequently, they are to provide an understanding of what you can achieve and some general options.

  1. Firstly, you can set up automated ato payment plans over the phone for tax debt <100
  2. Secondly, the preferred tax payment term is eighteen months to a maximum two-year term. However, there are exceptions for longer payment terms.
  3. Thirdly, personal circumstance are required as a reason for tax debt.
  4. Also, all financials will need to be lodged for the current financial year. Indeed, even if your tax debt relates to a specific financial year other than the current financial year.
  5. Also, bas will need to be lodged and up to date..
  6. Indeed, your cash flow must be able to meet the ato payment plan + ongoing tax obligations.
  7. Plus, at times a 20% or more upfront payment may be required to enter payment plans or tax debt.
  8. Finally, superannuation debt has more diligent attention and action by the ato.

Read below for further information on establishing an ATO payment arrangement. Otherwise, complete the form below for specialist advice on tax debt payment plans.

If you have failed a payment plan or been rejected for an ATO payment plan then contact Loan Saver Network on 1300 796 850. Certainly, request a free consultation via the form below.

Let's talk about a tax debt solution that suits you

Automated ATO Payment Plans

If your tax debt is under $100,000, you can contact the ATO and be directed to an automated payment plan service to request, extend, or manage your payment terms. Above all, if your account is deemed as non-compliant you will be redirected to an operator. Therefore, you need will need to be prepared for a conversation with the ATO.

The number to contact the ATO is: 13 72 26

Contacting the ATO 

First of all, prepare for your conversation. Above all, do not allow your payment plan for ato debt or any current arrangements to lapse before calling them. Finally, If you cannot meet an agreed payment then call the ATO ahead of time.

Preparing for discussion with the ATO

  • First of all, check the tax account when determining your amount owed. As such, don't rely on statements from the ATO as they could have added fees, interest and penalties.
  • Know the ATO payment plan repayment you can afford. Also, if you are arranging a lump sum payment confirm how you will make the tax payment.
  • Above all, your tax debt payment plan request should be your lowest affordable monthly payment amount. In this situation, base your payment on the turnover months with the lowest cash flow, and highest expenses. To put it another way, be sure to keep your monthly arrangement without strain.
  • Related Information on ATO Payment Plans

Be aware of tax debt payment plan limitations:

First of all, the Australian Taxation Office prefers to have a mitigating circumstance (a personal issue or illness, etc.) to secure a long-term ato payment arrangement.

  • Secondly, the ATO prefers to have the debt paid off within 24 months.
  • In contrast, a superannuation tax debt can involve shorter payment time frames, as issues can arise with employees’ investment returns.
  • Ensure you can meet your payments on time. however, if you cannot meet your ATO payment plan obligations contact the ATO immediately.
  • Also, try to make additional payments when you can to put you ahead of your payment plan. As a result, this will allow a buffer in case you face a tough month.
  • Finally, if your ato debt payment plan payment is not feasible; consider negotiating your tax debt balance, tax debt penalties and the general interest charge. Otherwise, paying out your ato debt with a tax debt loan,

You can calculate your ato payment plan payments using the ATO’s smartphone App ¬– search for ATO in your app store for more details, speak to the ATO or seek professional advice.

Loan Saver Network Can Help

Loan Saver Network can offer advice on ato payment plans, negotiation of Tax debt, help with tax debt loans, and tax debt insolvency issues. If you're looking for professional debt help, contact Loan Saver Network on 1300 796 850 today.