Interest-free payment arrangements for activity statement debts
If you’re a small business with an activity statement debt you may be able to pay it off interest-free over 12 months. You need to have a good history of tax lodgments and payments. To apply:
- Check your eligibility.
- Use the online payment arrangement calculator to work out a suitable payment plan.
- Phone 13 28 66 (8.00am to 6.00pm weekdays) to set up the payment plan
- Registered agents call 13 72 86 (fast key code 1 2 2) to discuss your client’s circumstances.
You’re eligible for an interest-free payment plan if your business:
- has an annual turnover of less than $2 million
- has a recent activity statement debt of $50,000 or less, which has been outstanding for no longer than 12 months
- has a good payment and lodgment compliance history, including
- no more than one payment plan default within the last 12 months
- no outstanding activity statement lodgments
- is unable to obtain finance (such as a loan) through normal business channels
- is able to demonstrate ongoing viability.
You have to agree to a payment plan that allows the debt to be paid by direct debits within 12 months. Even if you receive a letter stating that interest will apply, it will be remitted as long as you maintain your payment plan.
While you’re paying off the debt:
- you can check your running account balance by logging into the Business PortalExternal Link or phoning us on 13 28 66 (8.00am to 6.00pm weekdays)
- you must meet all of your other tax payment and lodgment obligations.
If you default on the plan, the interest-free period will end immediately.
If you’ve already entered into a payment plan with us, you can ask that it be changed to an interest-free payment plan if you satisfy the eligibility criteria.
If we agree, we’ll cancel your previous plan. The interest-free period will start from the date you enter into the new plan.
If your debt is with an external collection agency, you can still enter into an interest-free payment plan but you’ll need to negotiate this with the collection agency.