Times are getting tough, and sometimes you just can’t pay the ATO the money that’s due on time. Companies had tax bills due on the 15th of May, and the ATO doesn’t send out reminders for that; they just send a letter saying, “Hey, you didn’t pay it.”
We always give you a payment estimate when we do your company tax return, but because it’s so far away, you might forget about it. If you’re in a situation where you can’t pay your ATO bills—whether it be income tax, GST, PAYG, or super—you can make a payment arrangement with the tax office.
This can be done via the Tax Office portal, by the business portal, or we can ring up, but generally, they want it done via the portal. They will want 20% upfront, and then you can make equal payments for 12 months.
However, there are two critical things to consider:
- They will charge interest, which is currently about 14%.
- If you are on a payment arrangement with the tax office, you need to ensure that all your other lodgements are lodged on time and paid on time.
ATO payment arrangements are definitely doable, despite the high interest rate and the requirement to lodge on time. If you want to discuss it further, just give us a call.
In conclusion, while navigating financial challenges and ATO obligations can be daunting, understanding your options and taking proactive steps can make a significant difference. Don’t hesitate to reach out for help and guidance in managing your tax responsibilities effectively.