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Australia How to Pay the ATO Guide

paying the ATO. The guide covers: the payment methods for the individuals (the "personal tax payments") — the individual can pay the ATO through: (a) the "BPAY" (the "BPAY biller code 75504" and the "customer reference number" from the notice of assessment), (b) the "credit card" (the "Visa, the Mastercard" — the "card payment fee" of approximately 0.4% to 1.5% applies), (c) the "direct debit" (the "direct debit from the bank account" — the "set up through the ATO online services" in the myGov), (d) the "Australia Post" (the "over-the-counter payment" at the "Australia Post outlet" — the "max payment of $10,000 per the transaction"), (e) the "EFTPOS" (the "at the ATO shopfront" — the "limited locations"); the payment methods for the businesses (the "business tax payments") — the business can pay the ATO through: (a) the "Business Portal" — the "direct debit", the "BPAY" and the "credit card" options, (b) the "Standard Business Reporting (SBR)" — the "direct debit linked to the BAS lodgement", (c) the "electronic funds transfer (EFT)" — the "direct bank transfer to the ATO bank account" for the large payments, (d) the "PAYG withholding and the BAS payments" through the "BPAY View" or the "direct debit"; the payment processing times (the "clearing times") — the BPAY payments: 1 to 3 business days, the credit card payments: 1 business day, the direct debit: 1 business day (the "same day for the early lodgement"), the Australia Post: 1 to 3 business days, the EFT: 1 business day; the checking the payment (the "verifying the payment") — the taxpayer can check the payment status through: (a) the "myGov — the ATO online services" — the "Tax account" — the "Payment history", (b) the "ATO app" — the "Payments", (c) the "Business Portal" — the "Payment history".

Payment Plans and Deferrals

  • Payment plan application: The taxpayer who cannot pay the full amount by the due date can apply for the "payment plan" (the "instalment arrangement" with the ATO). The payment plan: (a) can be set up online through the "myGov — the ATO online services" for the debt up to $100,000 (the "automatic payment plan" for the debt under $100,000), (b) requires the regular instalments (the "weekly, the fortnightly or the monthly payments"), (c) accrues the "GIC" (the "11.54% per annum") on the unpaid balance.
  • Deferral of the payment: The taxpayer can request the "deferral of the payment" (the "extension of the payment due date") for the specific tax payment. The deferral request must explain the reasons and provide the expected payment date. The ATO may grant the deferral for the up to 12 months in the exceptional circumstances.
  • Release from the GIC: The taxpayer who experiences the "serious financial hardship" may apply for the "release from the GIC" (the "GIC remission"). The remission application must demonstrate the hardship and the inability to pay the GIC. The ATO may remit the GIC partially or fully.

For the help with paying the ATO and the hardship support, see our Help with Paying the ATO Guide →.

Payment for the BAS and the PAYG

  • BAS payment methods: The business can lodge and pay the "Business Activity Statement (the BAS)" through: (a) the "Business Portal" (the "direct debit, the BPAY, the credit card"), (b) the "accounting software" (the "Xero, the MYOB, the QuickBooks" — the "automatic lodgement and the payment through the SBR"), (c) the "paper BAS" (the "post the BAS with the cheque or the money order").
  • PAYG withholding payment: The employer must pay the "PAYG withholding" to the ATO through: (a) the "monthly reporting" — the "monthly payment by the 21st of the following month" for the "large withholder" (the "total withholding of $25,000 or more per the month"), (b) the "quarterly reporting" — the "quarterly payment by the 28th of the month following the quarter" for the "small withholder".
  • Superannuation guarantee charge: The employer who fails to pay the superannuation guarantee by the quarterly due date (the "28th day after the end of the quarter") must pay the "superannuation guarantee charge (the SGC)" to the ATO. The SGC includes the "shortfall amount, the interest (the 10% per annum) and the administration fee ($20 per the employee per the quarter)."

For the BAS lodgement and the GST obligations, see our GST Guide →.