ATO payment plans are still possible, and why you need to get in contact with us

Over the past few years the Australian Tax Office has tightened the criteria for repayment plans. While these arrangements are still available, they are no longer a simple checkbox approval.

In the past, businesses could enter into payment plans with relative ease, even when their financial position was not ideal. But after many of these arrangements collapsed, the ATO now demands proof that the business can sustain ongoing payments.

Here is what has changed

• The ATO often requires a significant lump sum upfront, sometimes $50k to $60k.
• The company must remain BAS compliant throughout the plan.
• Every quarter, new BAS payments must be paid on top of existing repayment amounts.
• The ATO assesses the business’s genuine capacity to pay before approval.

For many companies this shift creates financial pressure, transforming what was once a manageable plan into a real strain.

How to improve your chances of approval

• Work with your accountant or tax agent to prepare accurate cash flow forecasts.
• Be transparent about what your business can afford.
• Consider short-term funding or restructuring options if cash flow is tight.

Repayment plans are still possible, but only if your proposal demonstrates a clear, consistent ability to meet both old and new tax obligations.