If you’re facing financial challenges, you might qualify for a payment arrangement with the ATO.
If you get a tax bill, it’s important to pay it on time to avoid extra charges. But if you’re having money problems, you might be able to set up a payment plan. You can do this online or by phone if your tax bill is up to $200,000.
Before starting a payment plan, make sure your business is doing well. Payment plans need an initial payment, and you should finish them as quickly as possible to avoid extra charges.
Paying your bill in full and on time is better than a payment plan because there are extra charges called general interest charges (GIC) on overdue tax debts. The GIC rate is 11.15%, and it adds up every day. For example, if you have a $20,000 tax bill and set up a 12-month payment plan, you could end up paying an extra $2,359.82 in GIC during the plan. Keep in mind that the GIC rate can change.
We’re here to help small businesses facing financial difficulties. If you’re struggling, get in touch with us before the due date. It’s best to ask for help as early as possible, even if you already have a debt.