Why You Shouldn’t Default Your ATO Payment Arrangements

Nowadays, the ATO are less lenient with clients who are entering into payment arrangements.

The criteria and guidelines have increased and more often than usual, you are required to provide in-depth details about your financial situation and circumstances before a payment plan will even be considered.

In most cases, this is due to the number of prior arrangements that have defaulted from failure to comply with the ATO conditions of the arrangement. When an arrangement is approved, you are agreeing to the following terms:
• All payments will be made by the dates on the payment schedule
• Any new ATO obligations within the period of the payment arrangement will be lodged and paid in full and on time

In the event that you do default against your payment plan, the ATO will impose sterner requirements making it extremely difficult to negotiate another arrangement.

So if you find yourself in a position where you need to enter into a payment arrangement with the ATO, we encourage you to follow their guidelines to minimise the restrictions should you need to enter into another arrangement in the future.

We suggest you propose a longer repayment term to ensure all future payments are more achievable, giving you the best chance of maintaining the agreement and avoiding default.

If you have any unpaid ATO debts, please give April or Megan from HQB Chartered Accountants a call to assist you with this process.

– Posted 6.6.17

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.