So, You Have A Tax Debt, What Happens Next?

So you have a Tax debt! Although not ideal, this is just a reality of life and business. Once the ATO has issued a notice of assessment you have two options to pay the tax debt by the due date. 

  1. You can pay the tax debt in full by the due date (via credit card or bank transfer etc).
  2. If you can not pay in full by the due date, you can set up a payment plan and pay off your debt via regular payments. This can be done via your MyGov account. 

Important to note: If you do not have a payment plan and the debt remains unpaid the ATO will send your debt to the debt collector and may have it noted on your credit file. 

For debts larger than $100k without a payment plan, the ATO can place a notice on your credit file which will be reported to anyone who reviews your credit report. This could include suppliers, customers and lenders. If you have received a credit report notice, the ATO can remove it within 7 days of setting up a payment plan. Please get in touch if you would like assistance with setting up an ATO payment plan or if you need your personalised payment options.

Any information provided in this blog does not constitute binding professional advice. Seek professional consultancy for advice on your particular circumstances.
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