Setting up ATO Payment Plans
If you are struggling to pay your tax debt in full you may be eligible to set up a payment plan with the ATO. This will enable you to pay your debt by instalments over a period of time but be aware, payment plans incur interest and all future lodgements (of annual tax, BAS etc) need to be made on time and amounts owing need to be paid on time and in full to avoid defaulting on this arrangement.
Setting up a Payment Plan with the ATO
When you set up your payment plan you can set up payments to be weekly, fortnightly, monthly, or pay a lump sum (within 60 days). To start your payment plan you’ll need to make an up-front payment, usually 5-10% of the debt, followed by regular instalments. To keep you from paying too much interest, you should complete your payment plan in the shortest possible timeframe that fits with your circumstances.
INDIVIDUALS
- To set up a payment plan you will need to have the ATO linked to your myGov
- From the menu select Tax
- Payments
- Payment plans.
- This should bring up the 'Payment plans' screen allowing you to select the button to Add a payment plan.
- For further assistance you can call the ATO on 132865
BUSINESSES
- Payment plans can be set up using Online services for business.
- At the Accounts and payments menu select Payment plans
- select Add
- select account for payment plan and the amount
- select payment method and frequency
- enter payment date, upfront payment and instalments then select Calculate payment plan
- select Next and review the payment plan
- select the declaration then Submit
- You will receive a message with a receipt number once the plan has been submitted successfully.
- For further assistance you can call the ATO on 137226
