How to Set Up an ATO Payment Plan When You Cannot Pay Your Tax Debt in Full
Arrange instalments for an ATO tax debt, find the online and phone options, and understand why interest may continue while you repay it.
AU Australia
Taxes & Money ~ 4 min read
6 FAQ
Updated 2026-09-25
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If you cannot pay an ATO tax debt in full, check whether you can set up a payment plan through ATO online services linked to myGov. Self-service options may be available for debts of $200,000 or less. If you cannot afford the offered plan or owe more, contact the ATO to discuss your circumstances. General interest charge can continue on the unpaid balance.
What you need
- The amount and type of ATO debt shown on your account or notice.
- A myGov account linked to the ATO if you want to use ATO online services.
- A realistic instalment amount and repayment frequency based on what you can afford.
- Information about your finances if the ATO needs to discuss an arrangement that is not available through self-service.
Eligibility
An individual who cannot pay an ATO debt in full may be able to arrange payment by instalments. Self-service may be available when the debt is $200,000 or less, but the ATO must offer an arrangement suitable for the account. If the offered instalments are unaffordable, the debt exceeds $200,000 or the self-service option is unavailable, contact the ATO to discuss other options.
How to do it
- Check your ATO account or notice for the debt amount and payment due date. Contact the ATO before the due date if you already know you cannot pay in full.
- Work out an instalment amount you can maintain, allowing for other tax obligations and interest that may accrue.
- Sign in to myGov and open your linked ATO online services account. Check whether a payment plan option is available for the debt and review the proposed payments before accepting.
- If you cannot use the online option, ask the ATO about a plan by phone. For an arrangement you cannot afford online or a debt over $200,000, call the ATO debt line on 13 11 42 to discuss your circumstances.
- Keep paying the agreed instalments and meet new tax obligations as they arise. Contact the ATO promptly if you cannot make a scheduled payment.
Can you pay an ATO tax debt by instalments?
The Australian Taxation Office (ATO) may allow you to repay a tax debt through a payment plan when you cannot pay the full amount by its due date. Contact the ATO before that date if possible. A plan sets out instalments you need to maintain; it does not automatically stop general interest charge on the unpaid amount.
If you believe the assessment itself is wrong, first check the separate process for objecting to an ATO assessment. A payment plan addresses how an existing debt is paid.
How do you set up the plan?
For a debt of $200,000 or less, the ATO says you may be able to use its online services or a self-help phone service. To use online services as an individual, sign in through a myGov account linked to the ATO, find the payment plan option for your debt and review the proposed arrangement. Availability depends on your account and the option the ATO offers.
If you owe more than $200,000, cannot afford the plan offered online or cannot set one up through self-service, call the ATO on 13 11 42 to discuss your circumstances. The ATO may need more information about your ability to pay. If you have both an income tax debt and an activity statement debt, the ATO says you need separate payment plans.
What should you check before agreeing?
Choose instalments you can pay while keeping up with new tax obligations. The ATO provides an online payment plan estimator to help you assess an affordable arrangement. General interest charge can continue to accrue while tax remains unpaid, so a longer repayment period can increase the total you pay. The ATO does not list a separate fee for requesting a plan or publish one guaranteed processing time for all arrangements.
What happens after the plan starts?
Make each agreed payment and continue lodging required returns on time. If an instalment will be difficult to pay, contact the ATO promptly to discuss your options. The ATO says repeated defaults on agreed plans can lead it to take firmer debt recovery action. It may also use future tax refunds or credits to reduce an outstanding debt.
Frequently asked questions
Can I set up an ATO payment plan online?
You may be able to if your myGov account is linked to the ATO and the self-service payment plan option is available for your debt.
What if I owe more than $200,000?
Contact the ATO on 13 11 42 to discuss your payment options rather than relying on the self-service arrangement.
Does interest stop when I start a payment plan?
No. General interest charge can continue on the unpaid tax balance while you repay the debt.
What if the instalments offered online are too high?
Do not agree to an arrangement you cannot maintain. Call the ATO on 13 11 42 to discuss your circumstances and other options.
Can one plan cover my income tax and activity statement debts?
The ATO says separate payment plans are needed if you have both income tax and activity statement debts.
What should I do if I may miss an instalment?
Contact the ATO promptly to discuss the arrangement. Repeated defaults can result in firmer debt recovery action.
Official sources
Australian Taxation Office — Setting up a payment planAustralian Taxation Office — Payment plansAustralian Taxation Office — If you don't payAustralian Taxation Office — Top call centre questionsRelated procedures
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