How to set up an ATO payment plan yourself

If you owe the ATO more than you can pay by the due date, a payment plan lets you pay it off in instalments. Many people can set one up themselves in a few minutes. This guide covers what to prepare, the three ways to apply, and the situations where the ATO will want a proper conversation first.

Before anything else: lodge. A payment plan covers debts the ATO has raised. If returns or activity statements are still outstanding, get them lodged first – the ATO generally expects your lodgements to be up to date before it agrees to a plan.

Can you do it yourself?

You can usually set up a plan yourself, online or by the self-help phone line, if you owe $200,000 or less. You will need to phone the ATO's lodge and pay enquiry line instead if you:

• owe more than $200,000
• tried online or by phone and were not successful
• need to renegotiate a plan you already have
• need more than 2 years to pay
• are in serious financial hardship, insolvent, bankrupt or in dispute with the ATO
• have had a warning of firmer recovery or legal action in the past 6 months
• have defaulted on or cancelled 2 or more payment plans in the past 12 months

If you are in that second group, it is worth having us prepare the case before the call – see the end of this guide.

What to have ready

• Your TFN and/or ABN. Individuals and sole traders use their TFN; a company, trust or partnership uses its ABN.
• The exact amount of each debt. Check your latest ATO notice or your account in online services. If you owe on more than one account – for example income tax and an activity statement – note each amount separately. Don't add them together: each account needs its own plan.
• A realistic instalment. Before you apply, work out what you can genuinely pay each week, fortnight or month after your essential costs. The Moneysmart budget planner is a quick way to do it.
• The account you will pay from. A direct debit from a bank account is the easiest way to keep up. You can also use a debit or credit card – but after 30 June 2027 the ATO no longer accepts credit card payments, so a plan linked to a credit card will need a different payment method by then.
• For the online option: a myGov account linked to the ATO (individuals and sole traders), or access to Online services for business.

If you end up phoning the ATO, it will also ask why you can't pay on time, for your bank balances and lines of credit, and for your income, expenses and assets – so have those to hand too.

Option 1: online

Individuals and sole traders: sign in to ATO online services through myGov, then select Tax, Payments, Payment plans.

Businesses: sign in to Online services for business, then select Accounts and payments, Payment plans.

The ATO will show an upfront amount and suggested instalments, based on what has worked for people in similar circumstances. You can change both, within limits. You can set up only one plan at a time this way.

Option 2: the self-help phone line

For debts of $200,000 or less, the ATO's automated phone service can set up a plan. Have your TFN or ABN and the full amount owing ready. Numbers are on the ATO's contact us page – there is one line for individuals and sole traders and another for businesses. Again, one plan at a time.

Option 3: talk to the ATO

If you can't use the first two options, phone the ATO's lodge and pay enquiry line (also on the contact us page). Expect to be asked about your circumstances in detail and to make a proposal you can back up with figures.

Keeping the plan

• Interest keeps running on the unpaid balance (the general interest charge), so the sooner it is paid, the less it costs. Pay more whenever you can.
• Use direct debit and turn on the SMS or email instalment reminders when you set the plan up.
• Keep lodging on time. New debts and late lodgements are the usual way a plan falls over.
• If an instalment is going to be missed, deal with it before the due date rather than after. A plan in default is much harder to replace with a new one.
• Paid off early? Cancel the plan in online services so the remaining direct debits stop.

When to get help

Payment plans are harder to get than they used to be, particularly for larger debts, repeat defaults or anyone who has already had a warning letter. If you need to phone the ATO, are in hardship, or the online system will not offer you an instalment you can afford, we can prepare the figures and the proposal, deal with the ATO for you and set the plan up as your registered tax agent. See disputes and compliance or ask us a question.