What does this ATO Payment Plan Calculator do?
This calculator helps you to work out what sort of payment plan you may be able to negotiate with the ATO.
You can use it to calculate:
- how much you will need to pay per week/fortnight/month in order to pay off your debt in a set period of time (up to 36 months), or
- how long it will take you to pay off your debt if you pay a set amount each week/fortnight/month
The calculator incorporates the ongoing general interest charge that the ATO charges, based rate as at 1 July 2022, which is 8% per year (compounded daily).
How is this different from the calculator on the ATO’s website?
The ATO has a payment plan estimator on its website.
The ATO’s estimator contains strict rules which the ATO doesn’t always enforce. For example, the ATO’s estimator will only work if you are able to pay a lump sum upfront (10% of the debt in 7 days). In my experience, the ATO doesn’t enforce this rule strictly and it is possible to enter into a payment plan without making an upfront payment.
The ATO’s estimator also only calculates a plan for a maximum of 2 years. In my experience, it is possible to negotiate a plan for up to 3 years (or longer if you can provide security or another good reason for a longer plan).
This is why I have built this calculator – to give you a better idea of what you may actually be able to negotiate with the ATO.
This calculator does not constitute legal advice. The results of this calculator are not a guarantee by Hartigan Law that the ATO will accept a particular payment plan proposal from you. Your ability to negotiate a payment plan will depend on a lot of different factors, including whether your lodgments are up to date, your financial circumstances and your past compliance history.