Behind with the ATO? Understand your options in plain English.
No jargon, no judgement. Work out what your letter means, what happens next, and what you can actually do about it - then talk to a specialist if you want one.
I got a letter
DPNs, garnishee notices, warning letters - what yours means and how urgent it is.
Decode your letter → $I can't pay
Payment plans, interest remission, and what to do when a plan is rejected or defaults.
See your options → ⟳Is my business finished?
Usually not. Restructuring, administration and when liquidation is actually the right call.
Rescue options → ⚖Am I personally liable?
When company tax debt becomes yours - DPNs, guarantees, and what's actually at risk.
Check your exposure →Not sure where to start? Take the 60-second triage - four questions, plain-English read on where you stand.
Where are you on the ATO's escalation path?
Tax debt follows a predictable sequence. Knowing your step tells you how much time you have.
- 1
Warning letter
Reminders, firmer letters
- 2
Interest piles on
GIC ~11% p.a., no longer deductible
- 3
Credit disclosure
Debt reported to credit agencies
- 4
Garnishee
Money taken from bank / debtors. What a garnishee notice means →
- 5
DPN
Debt becomes personal - 21 days. Received a DPN? Start here →
- 6
Legal action
Statutory demand, wind-up, bankruptcy
Full decoder: every ATO letter explained, in escalation order →
84,529
Director Penalty Notices issued by the ATO in 2024-25 - more than double the year before
11.43%
Current general interest charge (Jul-Sep 2026) - and it's no longer tax-deductible
$200k
The threshold under which you can set up an ATO payment plan yourself online
21 days
What a DPN or statutory demand gives you - counted from the date it was posted
How this site works
Read
Plain-English guides to every letter, deadline and option - written to answer what the ATO's own pages don't.
Understand your options
What usually matters for your structure, debt size and deadline - so you're not deciding blind.
Talk to a specialist (if you want)
We can match you with a tax-debt specialist and email you their introduction. We may receive a referral fee - disclosed here.
Not sure where to start?
Tell us your situation and we'll match you with a specialist. No cost, no judgement.
Common questions
Can you negotiate tax debt with the ATO?
Yes - payment plans, interest remission and (for companies) formal restructuring are all forms of negotiation the ATO engages with every day. What you can't usually get is a simple "write-off". Start with payment plans and what debt forgiveness really means.
What happens if I just ignore it?
Interest compounds at over 11% (non-deductible), then enforcement escalates: credit disclosure, garnishee notices, director penalty notices, and eventually legal action. The timeline: what actually happens if you ignore ATO debt.
Is this site the ATO or a government service?
No. We're an independent information site. We don't provide tax agent services - we explain your options and can refer you to independent specialists. About us and how we make money.
Does it cost anything to be matched with a specialist?
No - the matching and the first call are free for you. If you engage a specialist, you pay them directly for their services; we may receive a referral fee from them, which is fully disclosed.