ATO Payment Plan Request Letter

Template letter for requesting a formal payment plan from the ATO when you cannot pay a tax debt in full by the due date. Covers debt identification, proposed instalment schedule, income and expenses summary, and hardship circumstances. The ATO can set up plans online for debts under AUD 200,000 for individuals or AUD 200,000 for businesses with up-to-date lodgements; larger or more complex debts require written or phone negotiation.

Last reviewed: 27 May 2026

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What it contains

Payment plan request letter addressed to the ATO identifying: total debt amount and type (income tax, GST, PAYG, etc.), the assessment periods in debt, proposed instalment amount and frequency, proposed start date and duration, summary of financial position (income, essential expenses, assets, other debts), hardship circumstances, and a request for GIC remission where applicable.

How to use it

Confirm your total debt position

Log in to myGov or ATO Online Services and check your account balance. Note each debt type (income tax, GST, PAYG withholding, super guarantee charge) and the period it relates to. Ensure all outstanding returns are lodged; the ATO will not approve a payment plan if lodgements are overdue.

Calculate what you can afford

List your monthly income and essential expenses (rent/mortgage, food, utilities, insurance, existing loan repayments, medical). The surplus is your maximum instalment capacity. The ATO expects the plan to clear the debt in the shortest time you can manage; propose a realistic amount you can sustain without defaulting.

Try the online option first

For debts up to AUD 200,000 with all lodgements current, use the ATO's online payment plan tool via myGov. It provides an instant decision. Use this letter template for debts above the threshold, complex situations, or where you also need to request GIC remission or serious hardship consideration.

Lodge the letter and keep paying

Post or email the letter to the ATO debt team (contact details on your statement of account). Start making payments at your proposed instalment amount immediately, even before the ATO confirms the plan. This demonstrates good faith and reduces the GIC accruing. If the ATO proposes different terms, negotiate before signing.

Copy the letter text

Prefer not to download? Copy the text below and paste into your own document.

[Your full name / Business name]
  [Your address]
  [City, State, Postcode]
  [Date]

  Australian Taxation Office
  Debt Management
  [Relevant ATO address from your statement of account]

  TFN: [Your TFN]
  ABN (if applicable): [Your ABN]

  Subject: Request for payment plan - tax debt of AUD [total amount]

  Dear Sir or Madam,

  I am writing to request a payment plan for the following tax debt, which I am unable to pay in full by the due date.

  1. DEBT DETAILS

  Debt type              Period                Amount
  [Income tax]           [YYYY-YY]             AUD [X]
  [GST]                  [Quarter ending date]  AUD [Y]
  [PAYG withholding]     [Quarter ending date]  AUD [Z]
  [Super guarantee charge] [Quarter]            AUD [W]

  Total debt outstanding: AUD [X + Y + Z + W]
  General interest charge accrued to date: AUD [GIC amount]
  Total amount owed: AUD [total including GIC]

  2. PROPOSED REPAYMENT SCHEDULE

  - Instalment amount: AUD [amount] per [week / fortnight / month]
  - Proposed start date: [date]
  - Proposed duration: [number] months
  - Payment method: [direct debit / BPAY / credit card]
  - Estimated completion date: [date]

  3. FINANCIAL CIRCUMSTANCES

  Monthly income:
  - Salary / business income: AUD [A]
  - Other income (Centrelink, rental, etc.): AUD [B]
  - Total monthly income: AUD [A + B]

  Monthly essential expenses:
  - Rent / mortgage: AUD [C]
  - Food and household: AUD [D]
  - Utilities (electricity, gas, water, phone, internet): AUD [E]
  - Insurance: AUD [F]
  - Transport: AUD [G]
  - Medical / health: AUD [H]
  - Existing loan or credit card repayments: AUD [I]
  - Child support / dependant costs: AUD [J]
  - Total monthly expenses: AUD [C+D+E+F+G+H+I+J]

  Monthly surplus available for debt repayment: AUD [income minus expenses]

  Assets:
  - [Property / vehicle / savings / superannuation balance - list with approximate values]

  Other debts:
  - [Creditor, amount owing, monthly repayment]

  4. REASON FOR THE DEBT / HARDSHIP CIRCUMSTANCES

  [Explain clearly and specifically why you are unable to pay in full. Examples:
  - Loss of employment on [date]
  - Business downturn due to [specific cause]
  - Unexpected medical expenses of AUD [amount]
  - Natural disaster affecting business operations
  - Relationship breakdown and associated costs
  Be factual; avoid vague statements.]

  5. LODGEMENT STATUS

  I confirm that all outstanding tax returns and activity statements have been lodged up to and including [latest period lodged]. [If any are overdue: "The following returns are currently being prepared and will be lodged by [date]: [list]."]

  6. REQUEST FOR GIC REMISSION (if applicable)

  [If requesting GIC remission, state: "I request remission of general interest charge under section 8AAG of the Taxation Administration Act 1953, on the grounds that [circumstances beyond my control / serious hardship]. The relevant circumstances are set out in section 4 above. I refer to PS LA 2011/12 for the ATO's remission guidelines."]

  [If not requesting remission, delete this section.]

  7. SUPPORTING DOCUMENTS ENCLOSED

  1. Most recent notice of assessment or statement of account.
  2. [Pay slips / business financial statements for the last 3 months].
  3. [Bank statements for the last 3 months].
  4. [Medical certificates or other evidence of hardship, if applicable].
  5. [Letter from employer confirming redundancy / reduced hours, if applicable].

  I undertake to maintain all future lodgement and payment obligations while this plan is in place. If my financial circumstances change, I will contact the ATO immediately to renegotiate the plan terms.

  If you require any further information, please contact me using the details below.

  Yours faithfully,

  [Signature]
  [Printed name]
  [Phone]
  [Email]

  Notes for the sender (delete before sending):
  - For debts under AUD 200,000 with current lodgements, try the ATO online payment plan tool first.
  - GIC continues to accrue on the outstanding balance even under a payment plan.
  - If you default on two consecutive instalments, the ATO may cancel the plan and pursue recovery action.
  - All lodgements must be up to date before the ATO will approve a plan.
  - PS LA 2011/12 governs GIC remission; serious hardship provisions are in section 340-5, Schedule 1, TAA 1953.