Do I pay the debt collector or the ATO?
Short answer
Pay the ATO, not the collector. Even when recoveriescorp is handling your account, the debt is still owed to the ATO and payment goes to your own ATO payment reference number (PRN). The collector can explain how to pay and help set up a plan, but it should never ask you to send money to its own bank account. See ATO debt collectors for how referrals work.
Why the money goes to the ATO
The ATO does not sell tax debts. When it refers an account to an external agency, the agency is paid by the ATO to make contact and encourage payment. Your debt stays on your ATO account, interest keeps being calculated by the ATO, and the balance is whatever your ATO account shows.
Because of that, every payment is processed against your ATO account, using the same payment reference number you would use if no collector were involved. Your PRN is printed on your notices and shown in ATO online services. Paying with it means the amount is credited straight away and you can see it on your statement.
This is different from a bank or telco debt that has been sold to a collector, where you genuinely do pay the new owner. Tax debt does not work that way.
Safe ways to pay
| Method | What you need |
|---|---|
| BPAY | ATO biller code 75556 and your PRN |
| Card (online or by phone) | Your PRN; a card fee applies |
| ATO online services or myGov | Log in and use the payment option on your account |
| Payment plan instalments | Direct debit set up through ATO online services or on the phone |
If a collector asks for payment by gift card, cryptocurrency, a wire transfer to an individual, or a link in a text message, stop. Genuine ATO and recoveriescorp contact never uses those methods. Check the contact by calling recoveriescorp on 1300 323 495 or the ATO on 13 11 42, and read how to check an ATO call in 60 seconds if you are unsure.
Not sure how to handle the collector?
A specialist can deal with the ATO for you and set up a plan you can keep.
What if I cannot pay in full?
You do not have to choose between paying everything and paying nothing. Recoveriescorp can help you set up an ATO payment plan, and the instalments are still paid to the ATO. If you would rather deal with the ATO yourself, you can set up a plan through ATO online services for debts up to $200,000 or call the ATO directly, and that is a perfectly normal choice.
Keep in mind that interest at 11.43% continues to accrue inside a plan, so a plan you can afford to keep, plus a request for GIC remission if you have a genuine reason, is usually better than a plan that is stretched too thin. If the debt is not one you can realistically pay, look at your options when you cannot pay a tax bill before you commit.
What to do next
- Find your payment reference number on an ATO notice or in ATO online services before you pay anything.
- Pay by BPAY, card or through your ATO account, and keep the receipt.
- If you cannot pay in full, set up a payment plan with the ATO or through the collector and confirm the instalments come out on time.
Related questions
I already paid the collector. Have I been scammed?
If you paid using your ATO payment reference number through BPAY, card or ATO online services, the money went to the ATO and you are fine, even if the collector walked you through it. If you sent money to an account the caller gave you, contact your bank straight away, then report it to the ATO scam line on 1800 008 540.
Will the collector confirm my payment to the ATO?
The collector reports engagement back to the ATO, but your proof is your ATO account itself. Log in to ATO online services a few days after paying and check that the payment shows on your statement. If it does not, call the ATO on 13 11 42 with your receipt number.
Not sure how to handle the collector?
A specialist can deal with the ATO for you and set up a plan you can keep.
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