Do you find yourself worrying each quarter when your BAS is due or maybe it’s your PAYG? It’s a common dilemma that many business owners are in and with no money tree in the back yard it’s important to plan.
You do have an option for paying down this debt!
Setting up a Payment Plan with the ATO is an option that many are opting for to assist with cashflow. There are set considerations outlined below that the ATO look for when agreeing to a payment plan.
- All lodgements must be up to date
- Amount of outstanding debt
- Length of Payment Plan
- Agreed Payment Amount (weekly/fortnightly/monthly)
- 5% – 20% deposit
- Previous cancelled payment plans that have been re-negotiated
- Defaulted payment plans
The last two of the above have a huge impact on you being able to re-negotiate or to set up a new payment plan, so we advise to avoid cancelling or defaulting if possible.
Where the outstanding debt is a large amount, the ATO will request details on the following to determine capacity to pay:
- Current bank balance
- Average monthly income
- Average monthly expenses
The best option of course is to plan for your ATO obligations.
Author
Emma Pickens
