ATO Payment Plans - A Guide to the Tax Office

ATO Payment Plan for Tax Debt

Regardless of a business size, most need to obtain a payment plan for tax debt such as BAS, or income tax at some point.  Firstly, it's important to realise that securing an ATO payment plan can be daunting. However, leaving a tax account in default or unpaid could cause you more issues. Therefore, an ATO payment plan is usually the first solution sought.

Securing a suitable payment plan can alleviate risk from the Tax Office plus potentially prevent a large lump sum payment or insolvency. Consequently, consider a Tax Debt Payment plan as an option.

Summary: ATO Tax Debt Payment Plans

  1. Firstly, Automated tax payment plans over the phone for tax debt <100k.
  2. Preferred 18 Month Tax Payment Term (Max 2 year term). However, there are exceptions for longer payment terms.
  3. Personal Circumstance required as a reason for tax debt.
  4. Your cash flow must be able to meet the ato payment plan + ongoing obligations.
  5. Also, at times a 20% or more upfront payment is required to enter an ATO payment arrangement.
  6. Finally, superannuation debt has more diligent attention and action.

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 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, be prepared for your conversation. Above all, do not allow your tax debt payment plan or any agreements 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, 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, plan to request your lowest monthly payment amount, and base this on the turnover months with the lowest cash flow, and highest expenses. As a result, you can be sure to keep your monthly arrangement without strain.

Be aware of tax debt payment plan limitations:

First of all, the Australian Taxation Office prefers to have a mitigating circumstance (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, 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 payment plan payment is not feasible consider negotiating your tax debt or 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.

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.