Can ATO debt collectors add fees?
Short answer
No. Recoveriescorp is engaged and paid by the ATO, and it cannot add its own collection fees, commissions or charges to what you owe. Your debt is whatever your ATO account shows. What does keep growing is the general interest charge, currently 11.43% a year, which the ATO applies whether or not a collector is involved. See ATO debt collectors for how referrals work.
What can and cannot be added to your debt
Only the ATO can put an amount on your tax account, and it can only do so under tax law. A collector has no power to raise a charge, so anything described as a collection fee, agency fee, recovery cost or administration fee is a red flag for a scam rather than a real ATO cost.
The amounts that genuinely can grow while a collector is involved are:
- General interest charge (GIC) at 11.43% for July to September 2026, compounding daily, on any overdue balance. Since 1 July 2025 it is no longer tax deductible.
- Failure to lodge penalties if returns or BAS are still outstanding: $364 per 28 days or part, up to five units for a small entity.
- Card surcharges if you choose to pay by credit or debit card. This is a payment cost, not a collection fee, and BPAY avoids it.
If your balance has gone up by more than GIC and any penalties explain, the extra is not from the collector. Check your ATO statement and call the ATO on 13 11 42 to ask what the entry is.
How to check your real balance
Never rely on a figure quoted over the phone. Log in to ATO online services through myGov (individuals and sole traders) or Online services for business, and open your account statement. The balance there is the debt. It shows each period, each GIC entry and each payment.
If a caller quotes a different, higher amount and pushes you to pay it today, do not pay. Verify the caller by ringing recoveriescorp on 1300 323 495 or the ATO on 13 11 42 using numbers you looked up yourself, and read ATO scam or real for the signs to look for.
Interest growing faster than you can pay?
A specialist can help you ask for remission and set a plan you can keep.
Reducing what you owe
Because the extra cost is interest rather than fees, the way to keep the debt down is to stop interest growing. Paying what you can now reduces the base the GIC is calculated on. A payment plan does not stop GIC on its own, but it protects you from firmer action and it is the point at which you can ask for GIC remission. Small remission requests are commonly decided on the phone, larger ones in writing.
Penalties for late lodgement can also be reviewed once you lodge. See penalty remission for what the ATO tends to accept.
What to do next
- Check your balance in ATO online services rather than relying on the figure a caller quotes.
- Pay what you can now to reduce the amount interest is calculated on, using BPAY to avoid card surcharges.
- Once a plan is in place, ask the ATO about remitting interest and any penalties if you have a genuine reason.
Related questions
Does the ATO charge me for using a debt collector?
No. The ATO pays the collector under its own contract and does not pass that cost on to you. Your account only carries tax, interest and penalties raised under tax law.
Can a debt collector charge interest on tax debt?
No. Interest on tax debt is the general interest charge, set and applied by the ATO. A collector cannot apply its own interest rate. If someone quotes an interest rate that is not the ATO's GIC rate, treat it as a scam and verify the contact.
Interest growing faster than you can pay?
A specialist can help you ask for remission and set a plan you can keep.
Get help nowMore questions: 12 Debt collectors and credit reporting questions answered · Full guide: ATO debt collectors