Crisis resources

If you owe the ATO and can't pay in full, a payment plan is usually the first step. The ATO will accept payment plans for amounts under $200,000 mostly online or via the ATO app — no phone call needed. For amounts above that, or where the debt is older or in collections, you'll need to call 13 11 42.

A payment plan accrues General Interest Charge (GIC) — currently 11.36% per annum (FY 2025-26). From 1 July 2025, GIC is no longer tax-deductible. Factor that into the cost.

ATO Online Services — set up a payment plan

If paying the debt would leave you unable to afford basic living expenses — food, accommodation, medical care, clothing, education — you may be eligible for full or partial release of the debt under section 340 of Schedule 1 to the Taxation Administration Act 1953.

Eligibility is for individuals only (not companies, not trustees) and assessed case-by-case. The ATO looks at total income, total assets that could reasonably be sold, dependants, medical circumstances, and ongoing capacity to pay.

Apply via the ATO online or by writing to the ATO. Decisions can take 28 days or longer. While the application is being considered, ATO debt-recovery action usually pauses.

Hospital stays, documented serious illness, family crisis, and domestic violence circumstances strengthen the application.

Statutory provision: TAA 1953 Schedule 1 s 340.

Even if you can't get full debt release, you may be able to get the GIC component remitted (waived) where the circumstances that caused the debt were outside your control — natural disaster, serious illness, death of an immediate family member, financial hardship — or where remission would be fair and reasonable.

Apply via the ATO online or in writing. Provide supporting evidence (medical certificates, hospital records, evidence of the triggering event).

Statutory provision: TAA 1953 s 8AAG (Commissioner discretion to remit GIC).

If you've received a Director Penalty Notice, the 21-day window starts from the date on the notice — not the date you received it. Missing this window can make the director personally liable for the company's PAYG withholding, SG, or GST debt — and the personal liability cannot be discharged in many circumstances.

See What to do if you got an ATO letter for the operational response. Get advice from a registered tax agent or insolvency practitioner immediately if the company is unable to pay.

Statutory provision: TAA 1953 Schedule 1 Division 269.

If you can't afford a registered tax agent, the National Tax Clinic program provides free tax help for eligible individuals and small businesses. The program runs through university and TAFE campuses in every Australian state and territory, with students (supervised by qualified clinic managers and tax professionals) providing the advice.

Eligible if: not represented by a tax professional, unable to access tax advice due to economic, social, or personal factors, and an Australian resident.

Locate your nearest clinic at nationaltaxclinics.gov.au. New clinics from 2025 include Chisholm (Dandenong VIC), University of Notre Dame (Kimberley region WA), Sunshine Coast Tax Clinic (Moreton Bay QLD), and TAFE NSW Tax Clinic (Ultimo NSW).

Funded by the ATO; independent advice. No referral required; you contact the clinic directly.