Article
Struggling to pay your tax bill in full or on time?
Speak to your local TaxAssist Accountant if you need support to create a payment plan.
You should always aim to pay your tax bill in full and on time. This will help you avoid paying the general interest charge (GIC), which is currently 11.34% and accrues daily for any overdue debts.
What to do if you can’t pay your tax bill?
If your business is dealing with some financial difficulties, if you are eligible, you may be able to set up a payment plan. It’s important that you address any overdue debt as soon as possible and do not ignore the situation. A tax professional – such as your local TaxAssist Accountant - can help you by discussing your options.
What is a payment plan?
A payment plan allows you to break down your payment into smaller amounts that are made via instalments and are spread over the shortest possible fixed period of time. When you set up a payment plan, you pay an agreed sum of money weekly, fortnightly or monthly until the balance is cleared.
Tax debts on a payment plan continue to accrue GIC, which compounds daily. Paying your debt in the shortest period of time will help reduce the GIC that you’ll pay.
Could I be eligible for a GIC remission?
It is possible for the ATO to cancel your GIC.
They will look at the request and take into account whether you paid your tax bill late because of circumstances that were:
- beyond your control and what steps you took to relieve the effects of those circumstances
- within your control but led to results that you couldn't foresee.
How we can help
Your local TaxAssist Accountant will be glad to help with all of your tax and accounting needs. Call us on 1300 513 332 or contact us here. We also offer a free 20 minute initial consultation.
Date published 28 May 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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