How long does the ATO give you to pay a tax bill?
Short answer
It depends on the bill, but usually a few weeks. Lodge your own return by 31 October and a tax bill is due 21 November. If the assessment issues later, it is due 21 days after the notice. Quarterly BAS is due on the 28th after the quarter ends. No grace period: interest starts the next day. If you need longer, a payment plan is how you get it.
The standard due dates
| Bill | Payment due |
|---|---|
| Individual income tax, self lodged between 1 July and 31 October | 21 November |
| Individual income tax, assessment issued after 31 October (including most agent-lodged returns) | 21 days after the notice of assessment issues |
| Quarterly BAS | 28 October, 28 February, 28 April, 28 July (about 2 extra weeks if you lodge online, and more time through a registered agent) |
| Monthly BAS | 21st of the following month |
| Companies | Set by the ATO based on size; medium and large taxpayers required to lodge by 31 October pay by 1 December |
The date on your notice of assessment or activity statement is the one that counts. If it disagrees with the table, the notice wins.
What happens the day after the due date
Nothing dramatic, but the meter starts. General interest charge (GIC) applies from the first day the amount is overdue, currently 11.43% per year compounding daily, and it is no longer tax deductible. There is no free week. The ATO then contacts you by SMS, myGov message, letter or phone, and any refund you become entitled to is offset against the debt.
How long before firmer action follows is not fixed. The ATO says it is more likely to act against people who ignore reminders and refuse to engage. Someone who calls the week after the due date almost never sees a garnishee. Someone who is still silent months later is in the group the ATO targets. Our ignoring ATO debt page has the timeline.
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How to get more time to pay
The ATO does not extend the due date for an ordinary tax bill, but it does offer instalments. If your total debt is under $200,000 you can set up a payment plan online through myGov or Online services for business without speaking to anyone. Larger debts are negotiated by phone on 13 11 42. Plans of one to two years are common; longer is possible with justification.
- A plan stops firmer action and credit reporting while it is kept.
- Interest keeps accruing inside the plan unless you ask for GIC remission.
- The plan is only available if your lodgements are up to date.
If you can pay most of it but not all, pay what you can by the due date. Interest is charged on the shortfall only. If you can pay none of it, look at what to do when you can't pay a tax bill before the first reminder rather than after the third.
What to do next
- Find the due date on your notice of assessment or activity statement, not on a general calendar.
- If you can pay part of it, pay that part on time so interest only runs on the balance.
- If you need instalments, set up the plan before the due date if you can. Waiting adds interest and reminders, not options.
Related questions
Does using a tax agent give me longer to pay?
Often, yes. Agent lodgement programs run well past 31 October, and if your assessment issues after 31 October the bill is due 21 days after the notice. Lodging later through an agent therefore usually means paying later too. The debt itself is not smaller, but the due date moves.
Is there a grace period before interest starts?
No. GIC applies from the day after the due date. The ATO can remit interest where the delay was caused by circumstances outside your control, but it does not waive the first few days automatically.
Can you pay the ATO in instalments?
Yes. The ATO will not move the due date, but it will accept instalments through a payment plan. If the total you owe is $200,000 or less and your lodgements are up to date, you can set the plan up yourself in ATO online services; larger or more complicated debts are negotiated by phone. Interest keeps running inside the plan, so the shorter the term you can genuinely hold, the less it costs. See how ATO payment plans work.
Need more time than the ATO gives?
Free matching with a specialist who can help set up terms you can keep.
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