Expert Lawyer Shares Tips on Obtaining Payment Plans Despite ATO’s Tougher Debt Collection Approach

In the midst of concerns about the Australian Taxation Office’s (ATO) stricter approach to debt collection, specialist lawyer Olga Koskie from Tax Assure has reassured businesses that obtaining payment plans spanning two or three years is still possible.

Despite the ATO’s emphasis on not using tax debt as a form of easy finance, Koskie highlighted that there are still options available for businesses actively addressing their tax debts. She mentioned that the ATO is willing to accept payment plans that are sustainable for businesses, sometimes extending over two to three years.

However, Koskie cautioned that the ATO considers various factors when deciding on payment plans, including the taxpayer’s compliance history and the viability of the business. She advised against repeatedly contacting the ATO for payment plan requests, as it could negatively impact the client’s compliance record.

By preparing the application correctly and demonstrating the business’s ongoing viability, Koskie believes it is still possible to secure a favorable payment plan with no upfront payment and repayments spread over a few years. She emphasized the importance of understanding the ATO’s guidelines and taking all relevant factors into consideration during the application process.

Overall, despite the ATO’s tougher stance on debt collection, businesses can still navigate the system and secure manageable payment plans with the right approach and preparation.