Situation
You can't pay the ATO
If you owe the ATO and can't pay in full, you have options — but they only stay open while you are engaged and your lodgements are up to date. Payment plans of up to $200,000 are self-service; larger or complex cases need a phone call. The Small Business Debt Helpline (1800 413 828) is free and specialist.
Three things to do right now
- 1
Lodge everything outstanding today.
Even if you cannot pay a cent, get the returns in. Late lodgement of BAS, IAS, and SGC statements is what locks in personal director liability and turns a payment problem into an insolvency one.
Today
- 2
Call the Small Business Debt Helpline on 1800 413 828.
Free, specialist financial counselling. They will help you assess whether a payment plan is realistic, whether you should be requesting GIC remission, and whether a more formal option (SBR, voluntary administration) needs to be on the table.
Today, Mon–Fri 9am–5:30pm AEST
- 3
Do not borrow from a 'tax debt loan' operator before this call.
Many of the search results for 'ATO debt help' are paid ads from operators who refinance you into worse terms. SBDH is free, independent, and will tell you honestly whether the situation needs a loan, a payment plan, a remission, or a more formal option.
Before any commercial commitment
Key facts (checked May 2026)
- Payment plans up to $200,000 are self-service
- If your business owes $200,000 or less, you can set up a payment plan via Online Services for Business or the self-help phone line. Above that, call 13 11 42.
- GIC is currently 10.96% annual, compounding daily
- General Interest Charge for the Apr–Jun 2026 quarter is 10.96% annual (0.03002740% daily). GIC compounds daily and continues while a payment plan is on foot.
- GIC and SIC are no longer deductible
- From 1 July 2025, General Interest Charge and Shortfall Interest Charge incurred from that date are no longer tax-deductible — the effective cost is higher than the headline rate.
- Lodge first, even if you can't pay
- Late lodgement of BAS, IAS, or Super Guarantee Charge statements is what converts a recoverable problem into a Lockdown Director Penalty Notice. Lodging on time preserves your options.
The longer version
Step 1 — Map the debt.
Write down every component: BAS arrears, GST, PAYG withholding, super guarantee charge, income tax. Note whether the underlying returns have been lodged and whether GIC is accruing. This is the first thing SBDH will ask you for.
Step 2 — Decide whether a payment plan is realistic.
A payment plan only works if you can show a credible path to clearing the debt while paying current obligations. If you cannot, a plan is not the answer — and may make things worse. SBDH will help you stress-test this honestly.
Step 3 — If circumstances warrant, request GIC remission.
Section 8AAG of the Taxation Administration Act allows the ATO to remit GIC where remission is fair and reasonable. Genuine business hardship — illness, natural disaster, key supplier collapse — can support a request. SBDH can help with the wording.
Step 4 — Set up the plan.
Plans of $200,000 or less can be set up online through Online Services for Business or through the self-help phone line. Larger or complex cases call 13 11 42. A defaulted plan is harder to renegotiate, so set it at a level you can actually sustain — not a level you hope you can.
Who to call
Free or low-cost. Independent of creditors. Checked May 2026.
Small Business Debt Helpline
Free, confidential, specialist financial counselling for sole traders and small business owners — tax debt, BAS, supplier pressure, insolvency options.
Free, specialist. Will help you map options before you commit to a plan.
ATO Payment Plans (Online Services for Business)
Self-service payment plans 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.
The official ATO setup path. Use this after the SBDH conversation.
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.
If the underlying tax matter is in dispute, ASBFEO's Tax Concierge service supports ART matters.
Beyond Blue NewAccess for Small Business Owners
Free six-session mental health coaching for small business owners under stress. Coaches have small business backgrounds. No GP referral required.
Six sessions of free mental health coaching while you navigate the next few months.
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.
Frequently asked questions
- Can the ATO take my house if I can't pay?
- Not directly and not immediately. The ATO can pursue recovery action — including garnishee notices, statutory demands against a company, and bankruptcy proceedings against an individual — if engagement breaks down. Engagement, including a payment plan you can actually sustain, prevents most of this. Call the Small Business Debt Helpline on 1800 413 828 before anything escalates.
- What is the largest ATO payment plan I can set up online?
- Plans for $200,000 or less can be set up through Online Services for Business or the self-help phone line. For amounts above $200,000, or for complex situations involving multiple defaults or behind-the-line lodgements, call the ATO's business line on 13 11 42.
- Will the ATO remit my interest?
- The ATO has discretion under section 8AAG of the Taxation Administration Act 1953 to remit General Interest Charge where remission is fair and reasonable. Genuine, documented business hardship can support a request. A free financial counsellor at the Small Business Debt Helpline can help you draft a remission request that addresses the relevant factors.
- Is a 'tax debt loan' a good idea?
- Almost never. Many commercial operators advertising tax debt loans refinance you into a higher-cost product, often with personal guarantees. The ATO's own interest, while not deductible from 1 July 2025, is typically still cheaper than commercial alternatives, and an ATO payment plan does not require personal guarantees. Call the Small Business Debt Helpline on 1800 413 828 before any commercial commitment.
- What if I default on a payment plan?
- The ATO will normally try to engage before escalating, but a defaulted plan is harder to renegotiate than a first plan. If you can see a default coming, contact the ATO and a financial counsellor before it happens — they will sometimes restructure the plan rather than terminate it.
Sources
- ATO — Setting up a payment plan
- ATO — General Interest Charge rates
- Taxation Administration Act 1953 — s8AAG (GIC remission)
TEKVA provides information, not financial counselling or legal advice. Use this page as a starting point, then talk to a free specialist. The Small Business Debt Helpline is 1800 413 828.
This can get clearer from here.