Can I have two ATO payment plans at once?
Short answer
Yes, for separate accounts. The ATO sets up payment plans per account, so you can have one plan on your income tax account and another on your activity statement account at the same time. What you cannot do is stack a second plan on the same account, or assume a new debt will be folded into an existing plan. See our ATO payment plan guide for the basics.
Why you might end up with two plans
Most taxpayers have more than one ATO account without realising it. Common ones are:
- Income tax account for tax on your return and PAYG instalments
- Activity statement account for GST, PAYG withholding and instalments reported on a BAS
- Super guarantee charge account for unpaid employee super
The ATO's rule is that if you owe on more than one account, each account either needs to be paid in full or covered by its own payment plan. Leaving one account uncovered can trigger firmer action even while the other plan is going well. Company and sole trader debts are also separate, so a director may have a personal plan and a company plan running side by side.
What the ATO expects when you have two plans
Every plan carries the same conditions: lodge everything on time, pay every instalment, and pay any new tax debt in full by its due date or put it under a separate plan. That last condition is where most people get caught. If a new BAS falls due while you have a plan, the new amount is not added to the plan. You either pay it in full or arrange a second plan for it. Missing it counts as breaking the conditions of the first plan.
In practice this means two plans means two direct debits, two sets of dates, and one shared risk. A default on either plan can lead the ATO to treat you as no longer engaging on the whole account. Two defaults or cancellations within 12 months shuts the online channel for all future plans, as explained in what happens after two defaults.
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Keeping two plans manageable
- Line up the dates. Set both direct debits for the same day of the month, a few days after your main income lands.
- Total the instalments. Add the two figures together plus your next BAS. That is your real monthly commitment. If it does not fit, fix the term before you start, not after. See how much to offer per month.
- Watch interest on both. GIC runs on each account separately at 11.43% and is no longer deductible. More detail at GIC remission.
- Ask about consolidating by phone. Online you cannot merge accounts, but if the combined picture is complex, a phone negotiation can sometimes produce one arrangement that covers everything. See can one plan cover income tax, BAS and super?
What to do next
- Log in to ATO online services and check every account with a balance, not just the one you were thinking about.
- Make sure each account with a debt is either paid or under a plan.
- Add up all instalments and your next BAS to confirm the total is affordable.
- If it is not, call the ATO before the first missed payment and ask about restructuring the terms.
Related questions
Will a new BAS debt be added to my existing ATO payment plan?
No. A payment plan covers only the debt that existed when it was set up. Any new BAS, PAYG instalment or return debt must be paid in full by its due date or placed under a separate plan. If it is not, the existing plan is in breach and can default.
Can my company and I both have ATO payment plans?
Yes. A company and its director are separate taxpayers with separate accounts, so each can have its own plan. Be aware that a company plan does not remit a director penalty notice, so if a DPN is in play, the plan alone is not enough protection.
Juggling more than one ATO debt?
A specialist can help you get every account covered in one conversation. Free, confidential.
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