The Australian Tax Office (ATO) is getting stricter in following up outstanding lodgements and debts. It is important that you are on top of these and also what you need to ensure happens so that you do not breach your payment plan.
Here are a few things you need to know about your payment plans.
- You need to make these payments on time.
- If you default on one payment your whole plan is in default.
Below are a few common mistakes people make when dealing with ATO payment plans.
- Making part payment of the agreed amount, you must pay the full amount of the agreed amount.
- If you are finding the original payment plan to onerous and you are having trouble meeting the repayments. Please call the ATO and explain your circumstances again and arrange a new payment plan.
- Remember it takes 2 working days for BPAY payments to clear, so make your payment 2 working days before the due date.
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 two days late with your payment. A default payment arrangement may result in the ATO requesting the debt to be paid out in full immediately.
The easiest way to not default would be to set up an automatic BPAY through your internet banking.