ATO Payment Plan Calculator — Stop Interest Growing 2025-26
Owe the ATO money you can't pay in full? Calculate an affordable payment plan based on your real financial position — and generate a professional hardship letter to submit with your request. The ATO GIC is currently 11.38% p.a. — every day you wait costs money.
Step 1 — About Your ATO Debt
How the ATO Decides Whether to Accept a Payment Plan
For debts under $200,000, most plans are approved automatically online if the debt is paid within two years and you keep future lodgments up to date. The ATO looks at your compliance history, whether earlier plans defaulted, and whether the proposed instalment is realistic against your income and essential outgoings.
General interest charge keeps accruing on the unpaid balance for the life of the plan, so a shorter term always costs less in total — the calculator shows the trade-off between instalment size and total interest.
If paying anything at all would leave you unable to cover food, housing or medical costs, ask about serious hardship release instead: the ATO can permanently write off some or all of the debt for individuals in genuine hardship, which is a different process from a payment plan. Businesses cannot apply for hardship release, but they can still negotiate longer terms, interest remission or a deferral when cash flow is genuinely temporary.
Frequently Asked Questions
How do I set up a payment plan with the ATO?+
Via myGov/Business Portal online, by phone (13 11 42 for business, 13 28 65 for individuals), or by written request with financial information for complex cases or plans over $100,000.
Will the ATO accept a payment plan?+
Generally yes, when you demonstrate genuine inability to pay in full and a realistic ability to meet regular payments. Proactively contacting the ATO before debts are overdue significantly improves approval chances.
What is the ATO General Interest Charge rate 2025-26?+
11.38% per annum, applied daily on outstanding tax debts. The GIC rate is updated quarterly by the ATO based on the 90-day bank bill rate plus 7 percentage points.
Can the ATO waive interest on a payment plan?+
Yes, the ATO can remit GIC in certain circumstances: hardship, circumstances outside your control, good compliance history, or ATO error. A separate written application is required — it's not automatic.
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Explore all Business calculators →This tool provides estimates and letter templates for informational purposes only. The generated letter and payment plan calculations do not constitute legal or tax advice. ATO decisions on payment plans are at the ATO's discretion. For advice specific to your situation, consult a registered tax agent. GIC rate based on ATO published rate for FY 2025-26.