Will the ATO give me a payment plan if I have unlodged returns or BAS?

Why the ATO wants lodgements before a plan

A payment plan is an agreement to pay a known amount over a fixed period. If you have unlodged returns or activity statements, the ATO does not know the total. Any plan set up now would be based on a figure that changes the moment you lodge, and a new liability landing on the account can push the plan into arrears.

That is why the standard conditions of every plan include lodging all your obligations on time and paying new debts in full as they fall due. The ATO applies the same logic before it agrees to a plan. Online services will often let you set up a plan on the debt currently showing, but the missing lodgements are still overdue, still attract failure to lodge penalties, and the ATO can raise a default assessment in your place if it decides to.

What to do if you cannot lodge yet

Lodge what you can, as soon as you can, even if you cannot pay. Lodging on time and not paying is a much better position than not lodging at all. If the records are a mess, these steps usually help:

• Lodge the most recent periods first if the older ones need reconstruction. The ATO tracks current compliance closely.
• Ask a registered tax or BAS agent to help with the backlog. They can also see your ATO account and check what is actually outstanding.
• If you are a company director, lodge BAS within 3 months of the due date wherever possible. Lodging later than that turns any director penalty into a lockdown DPN, which a payment plan cannot fix.
• Call the ATO on 13 11 42 and tell them you are catching up. A documented lodgement timetable is often enough to hold off firmer action while you get the returns in.

Setting the plan up once everything is lodged

Once the account reflects the real debt, the usual rules apply. Debts up to $200,000 can be set up through ATO online services or the automated phone line. Larger debts, or a history of two defaulted plans within 12 months, mean a phone negotiation with evidence of capacity to pay.

Remember that lodging a backlog usually creates penalties and general interest charge on top of the tax. Ask about remission at the same time as you set up the plan. The ATO looks more favourably on someone who has just brought their lodgements up to date and is proposing a realistic arrangement than on someone who is still behind.

What to do next

1. Log in to ATO online services and list every return and activity statement showing as outstanding.
2. Lodge them, or engage a registered agent to lodge them, starting with the most recent periods.
3. Once the account shows the full debt, set up a payment plan online if it is under $200,000, or call 13 11 42 if it is larger.

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