How to make an ATO Payment Arrangement
The best way to avoid stronger ATO recovery action is to either pay your debt in full or enter into an agreed payment arrangement with them.
The first step to apply for a payment arrangement is to call the ATO’s automated phone payment service on 137 226 for business and 132 865 for individual debts less than $100,000.
To prove your identity, you will need your business Tax File Number (TFN) and an ATO issued Document ID number. This can be found on a recent letter or document issued by the ATO.
Prepare yourself for this conversation with the ATO by understanding what you can realistically afford as both an upfront payment and ongoing payments. Don’t overcommit and put yourself under cashflow pressures.
You will either be advised that your offer of payment is accepted during the call or the ATO will advise if you don’t meet their criteria for a payment plan. If unsuccessful, you will need to follow the prompts to continue through to an ATO officer to discuss further.
If your debt is over $100,000 the process is a bit more involved. You will need to call the ATO on 131 142 to discuss with an ATO officer further information required to complete your application for a payment plan. This may include detail of how you have tried to finance the debt with your bank, details of outstanding invoices that you could collect to make payment and business financials and bank statements.
It’s important to remember when you are on a payment plan that the ATO expect all future lodgments and payments are on time, or your payment plan will be in default. If you have outstanding obligations such as a BAS that is due, it may be best to get these finalised before agreeing to a payment plan, so you include that debt in the arrangement.
Of course, we are here to help if you need us, please just give us a call on 1300 995 128.
We may be able to contact the ATO to negotiate a payment plan on your behalf.