Managing your tax obligations is vital to running a business. The Australian Taxation Office (ATO) offers ATO payment plans for businesses and individuals struggling to meet their tax obligations. If your debt is between $1 and $200,000 and your tax returns are up to date, you may be eligible to apply for a payment plan.
Setting up payment plans in ATO can be done online through your myGov account or through ATO’s online services for business if you’re a company. The ATO provides flexible options, including adjusting instalments and upfront payments to suit your financial situation. However, they may require financial documents like profit and loss statements to assess your ability to repay the debt.
If you cannot set up a plan online or owe more than $200,000, use the ATO contact payment plan directly for assistance. Be prepared to provide detailed financial information, such as your income, expenses, and current debts. Registered tax or BAS agents can also help set up and manage an ATO payment plan for businesses on behalf of their clients.
Acting early gives you more options and helps avoid additional interest or penalties. It’s always best to address tax debts as soon as possible to ensure your business remains financially healthy.