“The ATO is chasing me”
Unpaid PAYG, GST or super? ATO letters stacking up? Hiding cash under the mattress or hiding your head in the sand are both bad ways to deal with the tax office. Like many things in life, a business tax debt is best solved by addressing it early.
01 · What it means
In plain English
Up-to-date and prompt lodgement, plus working with a trustworthy adviser, may help you negotiate a repayment arrangement with the ATO. There are no guarantees, but you should get a dialogue going sooner rather than later.
A director of a company must make sure the company meets its Pay As You Go (PAYG) withholding and Superannuation Guarantee Charge (SGC) obligations. If they aren’t met in full by the due date, directors can become personally liable.
If you’re an employee and your super hasn’t been paid
If you have not been paid your super, or the employer has not paid your entitlements, you may be able to access the Fair Entitlements Guarantee (FEG).
02 · Your options
There’s usually more than one way through
Do it yourself
Go to your ATO portal and follow the prompts to request a payment plan.
Ask your accountant
If you have a tax agent registered on your ATO account, they can apply for you.
Talk to a Solver
We can help you put together a proposal, including negotiations with the ATO.
Restructure the debt
Where the business has a future, a formal restructure such as Small Business Restructuring (SBR) may be an option. Eligibility rules apply — including that tax lodgements and employee entitlements are up to date.
Short-term cash flow finance
Be careful taking a loan to pay an existing debt. Still, you may be able to get finance to cover a shortfall caused by tax obligations you can’t meet right now — get trustworthy advice on the terms first.
03 · This week
What to do this week
- Open every ATO letter and put them in date order. Note any deadlines.
- Bring your lodgements (BAS, STP, super) up to date, even if you can’t pay yet.
- Check your director and company details are correct with ASIC.
- Don’t sign up with anyone promising an easy way to ‘hide’ assets — creditors, liquidators and the regulator will defeat sham deals.
- Call us for a free, no-obligation first conversation.
The information on this website is general in nature and does not take into account your circumstances. It is not legal, financial or tax advice.