ATO Payment Plans (Online Services for Business)
Also known as: ATO payment plan, ATO payment arrangement
Payment plans you may be able to set up yourself for tax debts of $200,000 or less via Online Services for Business or the self-help phone line. Higher amounts and complex cases via the assisted line.
Interest (GIC) is the main cost, and it keeps building daily while the plan runs. Security isn't automatic, but the ATO can require it in some cases. If it takes security, or has already started recovery action, you pay those costs too.
National
About this service
If you owe $200,000 or less, the ATO says you may be able to set up an arrangement online through Online Services for Business or through the self-help phone line. For tax debts above $200,000, or where the situation is complex (multiple debts, prior defaulted arrangements, behind on lodgements), the assisted business line on 13 11 42 handles the case. Important: General Interest Charge (GIC) and Shortfall Interest Charge (SIC) are no longer tax-deductible for charges incurred from 1 July 2025. The GIC rate for the Oct–Dec 2026 quarter is 11.51% annual / 0.03153425% daily, compounding. Where business circumstances justify it, the ATO may remit GIC — talk to a financial counsellor before lodging a remission request.
When to use
You owe the ATO, you can see how to clear it within 12–24 months, and your lodgements are up to date.
When not to use
You can't see how to clear it on any plan. You've already defaulted on a prior arrangement. Your lodgements are outstanding (lodge first, even if you can't pay — reporting PAYG withholding or GST more than three months late is what locks in personal director penalties).
Who they help
Any taxpayer with an ATO debt — sole traders, companies, partnerships, trusts. The ATO usually expects lodgements to be up to date.
Who they don't help
If you genuinely can't see how you will pay even on the longest plan, a payment arrangement may make the situation worse — call the Small Business Debt Helpline first to map options including SBR, voluntary administration, or remission.
Strengths
Online setup for many common cases. While you keep to the plan, the ATO generally doesn't escalate recovery; a plan doesn't stop interest (GIC) building.
Limitations
GIC continues to accrue, compounding daily, and is now non-deductible for charges from 1 July 2025. A defaulted plan is harder to renegotiate.
Often used alongside
Small Business Debt Helpline
Free, confidential, specialist financial counselling for sole traders and small business owners — tax debt, BAS, supplier pressure, insolvency options.
Australian Small Business and Family Enterprise Ombudsman
Federal statutory ombudsman for small business. Free assistance with disputes against other businesses or government, plus a Tax Concierge for ATO matters.
Free assistance. A $100 first-hour co-payment applies for the Small Business Dispute Help legal-advice service and for the Tax Concierge Service.
We do not refer to commercial debt-relief operators.
Every service we point you to is free or low-cost, government-funded or not-for-profit, and independent of creditors. If a paid operator is offering to negotiate your ATO debt or run a Part IX agreement for a fee, talk to the Small Business Debt Helpline first — 1800 413 828, free.
TEKVA provides information, not financial counselling or legal advice. Phone numbers, URLs, and operating hours were checked on 6 October 2026.