Can I get a payment plan for BAS or GST debt?
Short answer
Yes. BAS debt, including GST, PAYG withholding and PAYG instalments, can go on an ATO payment plan like any other tax debt. Up to $200,000 you can set it up online. Small businesses may even qualify for an interest free version. The catch is that each new BAS still has to be paid in full while the ATO payment plan runs.
How a BAS payment plan works
Everything reported on your activity statement sits on one ATO account, so one plan covers the GST, PAYG withholding and PAYG instalment amounts together. The mechanics match any other plan: an upfront amount, then weekly, fortnightly or monthly instalments by direct debit, with general interest charge at 11.43% accruing on the balance unless remitted.
Conditions you agree to when you set it up:
- Every future activity statement is lodged on time.
- Every future activity statement is paid in full on the due date, or a separate plan is set up for it.
- Refunds and credits, including GST credits, are offset against the debt and do not count as instalments.
The second condition is where BAS plans fail. Quarterly GST landing on top of the instalments is the single most common reason plans default. Build the next BAS into your budget before you choose the instalment amount.
The small business interest free option
BAS debt is the one kind of debt where the ATO offers a standing interest concession. If your turnover is under $2 million, the activity statement amounts are $50,000 or less and no more than 12 months overdue, you have no outstanding activity statement lodgements, no more than one default in the last 12 months, and you cannot get finance elsewhere, the ATO will remit the interest automatically while you pay the plan out by direct debit within 12 months.
It is not available online. Call the business enquiries line on 13 28 66 and ask for it by name. The full criteria are at can I get an interest free ATO payment plan.
BAS debt growing faster than you can pay?
A specialist can structure a plan around your cash flow and check your director exposure.
The director trap with BAS debt
If the debt belongs to a company, a payment plan protects the company but not necessarily you. GST, PAYG withholding and super guarantee charge are all covered by the director penalty regime, which makes directors personally liable for unpaid amounts.
LODGE WITHIN 3 MONTHS
If a BAS is lodged more than 3 months after its due date, any director penalty on the amounts in it becomes a lockdown penalty. A lockdown penalty can only be remitted by payment. A payment plan, restructuring or liquidation will not clear it.
Two practical consequences. First, lodge every BAS on time even if you cannot pay it; the plan can catch up the money, but nothing can undo a late lodgement. Second, a payment plan on company BAS debt does not stop the ATO issuing a DPN, and a payment plan does not remit a DPN once issued. Directors of companies with significant BAS debt should read the BAS debt guide and think about personal exposure alongside the plan.
What to do next
- Lodge any outstanding activity statements now, even if you cannot pay them.
- Work out the instalment you can afford after allowing for the next BAS in full.
- Set the plan up in ATO online services if the debt is under $200,000, or call 13 28 66 if you want to ask about the interest free small business plan.
Related questions
Can I put just the GST on a plan and pay the PAYG withholding separately?
Not as separate plans. GST and PAYG withholding sit on the same activity statement account and a plan applies to the whole balance. You can, however, make extra voluntary payments at any time, so nothing stops you paying the PAYG withholding component down faster if that reduces your director exposure.
Does a payment plan stop the ATO reporting my BAS debt to credit bureaus?
Generally yes, while you keep to it. Disclosure applies to business debts of $100,000 or more that are more than 90 days overdue where you are not effectively engaging, and a payment plan you are meeting counts as engaging. If the plan defaults and you do not re-engage, the ATO can resume the disclosure process.
BAS debt growing faster than you can pay?
A specialist can structure a plan around your cash flow and check your director exposure.
Get help nowMore questions: 26 ATO payment plans questions answered · Full guide: ATO payment plans