How do I set up a payment plan?

If you need to manage your tax liabilities, the Australian Taxation Office (ATO) provides options to set up a payment plan, especially if you’re unable to pay your tax debt in full by the due date. Here’s how to go about it:

1. Determine If You’re Eligible

You can generally set up a payment plan if:

• You have a tax debt (income tax, GST, etc.)

• You are unable to pay by the due date

• You can commit to making regular payments

2. Choose How to Set It Up

Online (for Individuals & Sole Traders)

• Log in to your myGov account linked to the ATO.

• Select Tax, then go to Accounts & Payments > Payment Plans.

• Follow the prompts to set up a plan. You can often do this without speaking to anyone if your debt is below a certain threshold (e.g., under $100,000).

Online Services for Business

• Businesses can use Online Services for Business (replaces the Business Portal).

• Log in via myGovID.

• Navigate to Accounts & Payments > Payment Plans.

By Phone

• Call the ATO directly at 13 28 65 (individuals) or 13 72 26 (businesses).

• They can help set up a tailored payment plan.

3. Understand the Terms

• Interest generally applies to payment plans.

• You must stay up to date with future tax obligations while on the plan.

• The ATO may require financial information for larger debts.

4. Modify if Needed

If your circumstances change:

• You can re-negotiate the plan online or by calling the ATO.

• Missing payments without notifying the ATO can cancel the arrangement and lead to penalties.

5. Consider Professional Help

If your situation is complex:

• A registered tax agent or accountant can assist.

• You can also contact the National Tax Clinic Program for free help if eligible.