In some cases we offer payment arrangements for activity statement debts free of GIC for up to 12 months. These arrangements are aimed at helping small businesses that have a good history of meeting their tax lodgment and payment obligations but are experiencing short-term financial difficulties.
GIC-free payment arrangements
When does the GIC-free period start?
It starts on the day you enter into the GIC-free payment arrangement. This will usually be earlier than the date on which your first payment instalment is due.
Can I get a GIC-free payment arrangement if my activity statement debt is with an external collection agency?
You can still enter into a GIC-free payment arrangement under these circumstances. You will need to negotiate this with the external collection agency.
What is a direct debit payment arrangement?
A direct debit payment arrangement is where we automatically deduct instalments from the payer's bank account. The direct debit process is established at the start of the arrangement.
Why does the ATO expect me to enter into a direct debit payment arrangement?
A direct debit payment arrangement is a simple way to help businesses pay their instalments on time, every time. They help you commit to meeting the instalments and reduce your risk of defaulting on the payment arrangement by forgetting to pay.
I am already in a payment arrangement. Am I still eligible for a GIC-free arrangement?
You are still eligible if you satisfy the eligibility criteria.
You can renegotiate your payment arrangement at any time. Normally, a payment arrangement would be renegotiated where your circumstances have changed.
GIC-free payment arrangements can not be backdated. The GIC-free period starts from the date you enter into the new arrangement.
What if I default on my GIC-free payment arrangement?
If you default on your GIC-free payment arrangement, the GIC-free period will end immediately.
We may take firmer action to collect the debt. This may involve issuing garnishee notices, taking legal action to recover the debt and initiating proceedings leading to insolvency.
If you are having difficulty meeting the terms of your GIC-free payment arrangement, you should contact us as soon as possible on 13 11 42. We will work with you to help you meet your taxation obligations.
Why does my payment arrangement letter state that GIC will apply when I have entered into a GIC-free arrangement?
Provided you meet the terms of your arrangement, the GIC will be remitted for the period you maintain your arrangement, up to a maximum of 12 months.
Will I receive a running balance account statement after entering into a GIC-free payment arrangement?
We will not automatically send you an account statement. However, if you require a statement, phone us on 13 11 42 between 8.00am and 6.00pm, Monday to Friday.
If I already had a payment arrangement in place and then negotiated a GIC-free arrangement, will the previous arrangement appear as 'defaulted' on my record?
The previous arrangement will not appear as 'defaulted'. Before entering you into a GIC-free payment arrangement, we will cancel your previous arrangement.
How does the annual turnover used to determine eligibility for a GIC-free payment arrangement relate to GST turnover?
The annual turnover question is the general turnover of the business. It is not GST-specific.
Last Modified: Monday, 13 May 2013