Question 1

How do I set up a payment plan with the ATO?

Accepted Answer

You can set up an ATO payment plan online through myGov or the ATO's Business Portal, by phone on 13 11 42 (business) or 13 28 65 (individuals), or by lodging a formal written request. For plans over $100,000 or involving complex circumstances, a written request with supporting financial information is usually required.

Question 2

Will the ATO accept a payment plan?

Accepted Answer

The ATO generally approves payment plans when you can demonstrate a genuine inability to pay in full and a realistic ability to meet regular payments. Factors that help approval include: proactively contacting the ATO before the debt is overdue, demonstrating a consistent payment history, providing detailed financial information, and proposing realistic payment amounts. The ATO is generally willing to work with businesses facing genuine hardship.

Question 3

What is the ATO General Interest Charge rate 2025-26?

Accepted Answer

The ATO General Interest Charge (GIC) rate for FY 2025-26 is 11.38% per annum, applied daily on outstanding tax debts. This is compounded daily, meaning interest accrues on both the original debt and accumulated interest. The GIC rate is updated quarterly by the ATO based on the 90-day bank bill rate plus 7 percentage points.

Question 4

Can the ATO waive interest on a payment plan?

Accepted Answer

The ATO can remit (waive) GIC interest in certain circumstances, particularly where: the debt arose due to circumstances outside your control, you have a good compliance history, you're experiencing genuine financial hardship, or where the GIC was due to an ATO error. You need to formally request remission in writing and demonstrate your circumstances. Interest remission is not automatic and requires a separate application.

ATO Payment Plan Calculator — Stop Interest Growing 2025-26

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