Insights · ATO debt · 31 October 2026

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ATO payment plans: how to set one up and keep it

If you cannot pay a tax debt in full, an ATO payment plan lets you pay it off in instalments. Interest keeps accruing, so the aim is the shortest plan you can actually keep.

Setting one up

• $200,000 or less: you may be able to set up a plan yourself through Online services for business (Accounts and payments, then Payment plans) or the ATO's automated phone service. Your registered tax or BAS agent can also set it up.
• Over $200,000, or needing more than two years, in hardship, or after defaulting on two or more plans in 12 months: you need to call the ATO and give details of your income, expenses, assets and bank balances.
• Income tax and activity statement debts need separate plans.

The cost

The general interest charge keeps running on the balance: 11.51% a year for October to December 2026, and not deductible. See what a tax debt really costs.

Keeping it on track

1. Keep lodging and paying new BAS on time. New debts can break the plan.
2. Set instalments you can meet from a realistic 13-week cash flow forecast.
3. Put tax money aside in a separate account: how much to set aside.
4. If you are going to miss a payment, call before it is due.

Directors: unpaid PAYG withholding and super can become personal: director penalty notices. Want us to handle the ATO? See what we fix.

Quick answers

Can I set up an ATO payment plan online?

If you owe $200,000 or less, you may be able to through Online services for business or the ATO automated phone service.

Does interest stop on a payment plan?

No. General interest charge continues to accrue on the unpaid balance.

Sources

• ATO: Setting up a payment plan
• ATO: Accounts and payments in Online services for business

General information only. This article does not take into account your circumstances and is not tax, legal or financial advice. Rates and rules change; check the sources above and get advice for your business before acting.