We have considerable experience in negotiating payment plans with the Australian Taxation Office to the mutual benefit of all concerned when liquidity is temporarily strained, as it may be in these difficult economic times.
It is important there be regular communication with the ATO and, as your tax agent, we are well placed to assist you and facilitate resolution of any income tax or integrated client account debt. Our access through the tax agent hotline and/or the portal is likely to achieve a faster outcome.
The ATO expects that debt repayment under a negotiated plan will be completed within two years. Of course, the plan is conditional on future obligations and liabilities, as far as lodgements and payments are concerned, being met as they arise over the life of the payment plan.
It is worth noting that any late lodgements or payments will automatically default the payment plan which then must be renegotiated, usually supported by statements of income, expenses, assets and liabilities etc.
In short, defaulting a payment plan should be avoided; this includes allowing for Bpay processing time of two or three days as even a day late will trigger a default.