How to set up a payment plan
There are a few ways to set up a payment plan. Your registered tax or BAS agent may also be able to set a payment plan up on your behalf using Online services for agents.
If you owe $200,000 or less, you may be able to set up a payment plan through:
If you have both income tax and activity statement debts, you'll need to set up separate payment plans.
When you will need to contact us
You will need phone our lodge and pay enquiry line to set up a payment plan, and we'll ask you for more information about your circumstances if you:
- owe $200,000 or more
- haven't been successful in setting up a payment plan through our online services or the self-help phone line
- need to re-negotiate your existing payment plans
- need additional support due to significant financial hardship
- are insolvent, bankrupt or in dispute
- need a repayment timeframe beyond 2 years.
Additionally, you may need to contact us if you have:
- received a warning of firmer recovery or legal actions in the past 6 months or we have progressed with these actions
- defaulted on or cancelled 2 or more payment plans in the past 12 months.
If you already have an active payment plan, you can check or make some changes through Managing your payment plan.
Online services
If you owe $200,000 or less, you may be able to set up a payment plan through our online services.
If you are:
- an individual (including a sole trader), you can use ATO online servicesExternal Link. You will need an active myGov account linked to the ATO. Once you are logged into ATO online services, select Tax, then Payments, then Payment plans.
- business, you can use Online services for businessExternal Link. Once you're logged in, select Accounts and payments, then Payment plans.
When you set up a payment plan, we will help you save on interest by guiding you to pay what you owe in the shortest time. We will provide you with:
- an upfront amount you need to pay
- suggested instalment amounts that have been manageable for clients with similar circumstances to yours.
You can vary the upfront and instalment amounts above or below the amounts provided, up to certain values.
You can only set-up one payment plan at a time using online services.
Self-help phone line
If you owe $200,000 or less, you may also be able to use our:
Before you begin, make sure you have:
- your tax file number (TFN) and/or Australian business number (ABN)
- details of the full amount owing.
If you have multiple debts, don't combine the amounts. You can find your specific debt amount for each account by reviewing the latest notice we have sent you or checking your account in online services.
You can only set up one payment plan at a time using the self-help phone line.
Contact us
If you owe more than $200,000 or you can't set up a payment plan online or through the self-help phone line, you will need to phone our lodge and pay enquiry line.
Before you phone, make sure you have:
- your tax file number (TFN) and/or Australian business number (ABN)
- other information you need to prove your identity
- details of the full amount owing.
We will ask for more details about your situation, including:
- why you can't pay by the due date
- your bank details, including current account balances and any lines of credit
- your income, including if it can meet the proposed payment plan
- expenses
- assets.
To prepare for this conversation, you can visit Moneysmart.gov.auExternal Link and use their budget plannerExternal Link. This can help you understand your financial position so you can make a suitable payment proposal.
We will ask extra questions about your situation if you have:
- received a warning of firmer actions or legal actions in the past 6 months (or we have progressed actions against you)
- defaulted on or cancelled 2 or more payment plans in the past 12 months
- requested additional support due to serious hardship.
Setting up a direct debit
The easiest way to stay on top of your payment plan instalments is to set up a direct debit. You can set up direct debit payments at the same time you set up your payment plan – from either a financial institution (bank) account or a credit or debit card.
No card payment fees apply to debit card payments. Fees apply to payments made with other cards.
Only the card holder can set up a direct debit payment plan using a debit or credit card. Alternatively, you can pay individual instalments with your debit or credit card, or any of the other payment options available for paying the ATO.
If a scheduled direct debit falls on a weekend or public holiday, it will be processed on the next available business day. Direct debits scheduled during our annual end-of-year office closure will be processed on the first business day in January. These aren't considered late payments.
Additionally, if your payment plan is paid off early, you'll need to cancel the plan in online services or contact us to stop the remaining direct debit instalments.
Setting up instalment reminders
To help you stay on track with your payment plan instalments, you can select to receive SMS or email reminders. You can do this when you set up your payment plan using online services or when you contact us.