PAYING AN ATO DEBT
Whenever you have a debt to the ATO there is usually a due date for the payment when it is first incurred. Such debts will accrue a General Interest Charge (GIC) until the payment is made so it is very important that debts are not allowed to accumulate.
If you or your business are experiencing financial difficulties paying an outstanding amount for income tax, activity statements or Superannuation Guarantee accounts, you may be eligible to set up a payment plan.
This would allow you to break down the payment into smaller amounts that are made by instalments and are spread over the shortest possible fixed period of time.
These payments can be made weekly, fortnightly or monthly until the balance is paid.
You will still have to continue to lodge your obligations and pay any associated liabilities on time in addition to the payment plan.
If your circumstances change, you can make additional voluntary payments or pay off the debt at any time.
There are tools on the ATO website that can be used to assist you to calculate an affordable scenario to use as a guide to setting up a plan for income tax and activity statement debts; however, for Superannuation Guarantee accounts, direct contact with the ATO will be required regarding plan calculations. Alternatively, we can help you to calculate a workable solution.
Once a plan is set up and approved, it is important to make the payments as they fall due. If you fail to make a payment, a letter will be issued advising what action needs to be taken before the payment plan defaults. If that happens, a new plan will have to be done.
For further information, please contact our office.