If the 28 October BAS is going to be tight, the worst move is to say nothing. The ATO has a clear process for paying in instalments, and acting early keeps you in control of the conversation.
How an online plan works
You may be able to set up a payment plan yourself in Online services for business if the debt is under $200,000. Log in, choose Accounts and payments, then Payment plans, then Add. You choose the account, the amount, how often you will pay and any upfront payment, then calculate the plan, review it, tick the declaration and submit. You will get a receipt number when it goes through.
The ATO's payment plan estimator shows your likely upfront payment, minimum repayment and estimated interest first, though it does not guarantee approval.
Things to know
- One plan at a time online. If you have both income tax and activity statement debts, you will need separate plans.
- Larger debts need a call. Above $200,000, or if the online request is not accepted, contact the ATO directly.
- Interest still applies on most plans. General interest charge generally keeps running on ATO debt, so a plan manages the debt but does not make it free.
- An interest-free option may exist. The ATO says some small businesses with an annual turnover under $2 million and a smaller, recent activity statement debt may be eligible for an interest-free plan. Check the criteria on its alternative payment plans page.
What to do
- Lodge first. Get your BAS lodged on time even if you cannot pay in full. Lodging late adds penalties on top.
- Work out what you can afford. Use a realistic figure so you do not default.
- Ask for help if the numbers do not work. Your accountant can help you set a plan you can actually meet.
This is general information only, so check how it applies to you.