We are currently seeing a lot of ATO action at present in the debt recovery area.
Here are a few things you need to know about you need to ensure you don’t default on your payment plan:
- You need to make these payments on time and the full amount
- If you default on one payment your whole plan is in default and it may be more difficult to negotiate next time
- If you are finding the original payment plan to onerous and you are having trouble meeting the repayments call the ATO and explain your circumstances again and arrange a new payment plan before they call you.
- If you are paying using BPAY remember it takes 2 working days for these payments to clear, so make your payment 2 working days before the due date so it is not deemed late (we have seen payment plans considered as defaults due to this issue)
Any of the items above will cause your payment arrangement to go into default. If you default on your payment arrangement, the ATO may enforce more stringent requirements on your payment plan. Even, if you are only a day late with your payment. So the easiest way to not default would be to set up an automatic BPAY through your internet banking.