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ATO Payment Plan Request for a Tax Debt (Australia)
If you owe the Australian Taxation Office more than you can pay at once, a payment arrangement lets you clear the debt by instalments — and a well-presented proposal is far more likely to be accepted than a bare request. Our Australian template proposes an instalment arrangement to the Commissioner of Taxation under section 255-15 of the Taxation Administration Act 1953 (Cth), with a financial position statement, a viability case, a general interest charge remission request and, for individuals, the serious-hardship release pathway.
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Request for a Tax Debt Payment Arrangement
Proposed Instalment Arrangement Under S 255-15 Of The Taxation Administration Act 1953 (Cth) · 9 June 2026
Harbourline Joinery Pty Ltd
Unit 5, 12 Forge Street, Maitland NSW 2320
0455 760 219
accounts@harbourlinejoinery.com.au
9 June 2026
The Commissioner of Taxation
Australian Taxation Office
GPO Box 9990
Sydney NSW 2001
GPO Box 9990
Sydney NSW 2001
REQUEST FOR PAYMENT ARRANGEMENT — TAX DEBT
TFN/ABN: ABN 64 117 305 882 · Ref: RBA 64 117 305 882
Dear Commissioner,
I ask the Commissioner to agree a payment arrangement for my integrated client account debt comprising GST and PAYG withholding for the 2025 quarters of approximately 48,250.00 AUD, to be paid by instalments under section 255-15 of Schedule 1 to the Taxation Administration Act 1953 (Cth). I set out the proposed instalments, my financial position and my plan to meet ongoing obligations below, and I ask that recovery action be held while this request is considered.
I ask the Commissioner to agree a payment arrangement for my integrated client account debt comprising GST and PAYG withholding for the 2025 quarters of approximately 48,250.00 AUD, to be paid by instalments under section 255-15 of Schedule 1 to the Taxation Administration Act 1953 (Cth). I set out the proposed instalments, my financial position and my plan to meet ongoing obligations below, and I ask that recovery action be held while this request is considered.
1.
APPLICANT DETAILS
Name: Harbourline Joinery Pty Ltd
TFN / ABN: ABN 64 117 305 882
Taxpayer type: Company or trust
Address: Unit 5, 12 Forge Street, Maitland NSW 2320
Telephone: 0455 760 219
Email: accounts@harbourlinejoinery.com.au
TFN / ABN: ABN 64 117 305 882
Taxpayer type: Company or trust
Address: Unit 5, 12 Forge Street, Maitland NSW 2320
Telephone: 0455 760 219
Email: accounts@harbourlinejoinery.com.au
2.
THE TAX DEBT
Total debt: 48,250.00 AUD
Account / reference: RBA 64 117 305 882
What the debt is: integrated client account debt comprising GST and PAYG withholding for the 2025 quarters
Account / reference: RBA 64 117 305 882
What the debt is: integrated client account debt comprising GST and PAYG withholding for the 2025 quarters
3.
PROPOSED PAYMENT ARRANGEMENT
Upfront payment: 8,000.00 AUD on commencement
Instalments: 2,000.00 AUD per fortnight
Proposed term: 20 fortnightly instalments (approximately 10 months) after the upfront payment
This is the highest rate my circumstances reasonably allow. I will keep all future lodgments and liabilities up to date alongside the arrangement, and I ask that the instalment amount be reviewed with me if my circumstances change rather than the arrangement simply being cancelled.
Instalments: 2,000.00 AUD per fortnight
Proposed term: 20 fortnightly instalments (approximately 10 months) after the upfront payment
This is the highest rate my circumstances reasonably allow. I will keep all future lodgments and liabilities up to date alongside the arrangement, and I ask that the instalment amount be reviewed with me if my circumstances change rather than the arrangement simply being cancelled.
4.
CIRCUMSTANCES
A major customer entered administration owing us 61,000 AUD, which created a temporary cash-flow gap. Our order book has since recovered and we can sustain the instalments proposed below while keeping all future obligations current.
5.
FINANCIAL POSITION STATEMENT
So that the Commissioner can assess the arrangement on the facts, my financial position is as follows:
Income / cash inflows: Average monthly turnover of about 92,000 AUD with net cash profit of about 11,000 AUD per month after wages and materials; the order book is committed 4 months ahead.
Essential outgoings / commitments: Wages of about 38,000 AUD per month (6 staff), rent 6,200 AUD per month, materials and overheads about 36,000 AUD per month.
Assets and liabilities: Plant and vehicles valued at about 145,000 AUD; equipment finance of 52,000 AUD; the bad debt of 61,000 AUD is the subject of a proof of debt in the customer administration.
These figures show the instalment proposed above is realistic and sustainable, and that a higher rate would put my essential commitments at risk.
Income / cash inflows: Average monthly turnover of about 92,000 AUD with net cash profit of about 11,000 AUD per month after wages and materials; the order book is committed 4 months ahead.
Essential outgoings / commitments: Wages of about 38,000 AUD per month (6 staff), rent 6,200 AUD per month, materials and overheads about 36,000 AUD per month.
Assets and liabilities: Plant and vehicles valued at about 145,000 AUD; equipment finance of 52,000 AUD; the bad debt of 61,000 AUD is the subject of a proof of debt in the customer administration.
These figures show the instalment proposed above is realistic and sustainable, and that a higher rate would put my essential commitments at risk.
6.
VIABILITY AND ONGOING COMPLIANCE
Viability: The business is solvent and trading profitably; the debt arose solely from a one-off customer insolvency, not from an ongoing inability to pay. The proposed instalments are covered by current monthly net cash profit with margin to spare.
All my lodgments are up to date, which I understand is a condition of a payment arrangement — a current lodgment record lets the Commissioner see the full picture of the account.
Ongoing obligations: We will continue to lodge and pay each future activity statement, PAYG withholding and superannuation guarantee obligation in full and on time, separately from this arrangement.
All my lodgments are up to date, which I understand is a condition of a payment arrangement — a current lodgment record lets the Commissioner see the full picture of the account.
Ongoing obligations: We will continue to lodge and pay each future activity statement, PAYG withholding and superannuation guarantee obligation in full and on time, separately from this arrangement.
7.
INTEREST CHARGE — REMISSION REQUEST
Because a payment arrangement under section 255-15 does not stop the general interest charge accruing on the unpaid balance — currently 10.96% per annum for the April–June 2026 quarter, and for charges incurred on or after 1 July 2025 no longer tax-deductible — I ask the Commissioner to remit the general interest charge under section 8AAG of the Taxation Administration Act 1953 (Cth) for the period of the arrangement, on the basis that I am paying at the highest sustainable rate and the circumstances make remission fair and reasonable.
Grounds: The debt arose from a customer insolvency outside our control; we acted promptly to propose an arrangement and to keep all current obligations up to date.
Period: From the original due dates of the affected quarters until the arrangement is completed.
Grounds: The debt arose from a customer insolvency outside our control; we acted promptly to propose an arrangement and to keep all current obligations up to date.
Period: From the original due dates of the affected quarters until the arrangement is completed.
8.
ACKNOWLEDGEMENT AND NEXT STEPS
Please acknowledge receipt of this request in writing, confirm the arrangement (or propose terms you can accept), and hold recovery action while it is considered. If any further financial information would help, please contact me and I will provide it promptly. I am committed to clearing this debt and to meeting my future obligations on time.
YOURS FAITHFULLY,
Harbourline Joinery Pty Ltd
Applicant
Date: ____________________
APPLICANT
Harbourline Joinery Pty Ltd
Date: ____________________
Available as a print-ready PDF or an editable Microsoft Word (.docx) file.
What Is an ATO Payment Plan?
A payment plan is an arrangement with the <strong>Commissioner of Taxation</strong> to pay a tax debt by instalments under <strong>section 255-15 of Schedule 1 to the Taxation Administration Act 1953 (Cth)</strong>. A plan can generally be set up online or through the self-help phone line where the debt is <strong>$200,000 or less</strong>; above that, or where your circumstances need explaining, you arrange it with the ATO directly — and a written request puts your proposal, financial position and viability case on the record.
A plan manages how you pay; it does not change when the debt is due. The general interest charge keeps accruing on the unpaid balance at <strong>10.96% a year</strong> for the April–June 2026 quarter, and since 1 July 2025 that interest is no longer tax-deductible — so the template also asks the Commissioner to remit the GIC for the period of the arrangement under section 8AAG. A refused plan can lead to firmer recovery, such as a garnishee or a director penalty notice, which is why how the proposal is presented matters.
The ATO assesses a plan on capacity and, for businesses, viability: it wants to see income against essential commitments, that the business can pay the instalments and keep meeting new obligations like PAYG and superannuation, and that all lodgments are up to date. For individuals, there is a further option — a <strong>release from the debt on the ground of serious hardship</strong> under Division 340 — which can extinguish the debt rather than merely defer it. The template builds all of this so the proposal answers the questions the ATO will ask.
What's Covered in This Template
The letter is structured the way the ATO assesses a payment arrangement — the debt, the proposed instalments, your financial position and your viability — and adds the interest and hardship layers.
Section 255-15 Instalment Proposal
Sets out the upfront payment, instalment amount, frequency and term as an arrangement under s 255-15 — the statutory basis for paying a tax debt by instalments.
Financial Position Statement
Income or cash inflows against essential outgoings, plus assets and liabilities — the figures the ATO assesses a plan against.
Viability & Ongoing Compliance
Shows the business is genuinely viable and commits to keeping future PAYG, activity statement and superannuation obligations current alongside the plan.
GIC Remission Request
Because the general interest charge keeps running during a plan and is no longer deductible, the template asks for it to be remitted under section 8AAG for the plan period.
Serious-Hardship Release (Individuals)
For individuals and sole traders, runs the Division 340 (s 340-5) release as an alternative that can wipe the debt, with a priority-handling request.
$200,000 Threshold Aware
Built for debts that need a written proposal — larger debts, or circumstances that need explaining beyond the online self-service path.
Recovery Hold Request
Asks the ATO to hold recovery action while the request is considered, and to discuss the instalment rate rather than simply cancel a plan if circumstances change.
Single-Signer Letter Format
Letterhead, the Commissioner of Taxation as recipient, subject line and a single applicant signature block — ready to send or upload.
How to Create an ATO Payment Plan Request
Five steps from a tax debt to a proposed arrangement.
- 1
Confirm the Debt
Note the total debt, your running balance account or reference, and what the debt is for — income tax, GST, PAYG or super guarantee charge.
- 2
Propose Instalments You Can Sustain
Set an upfront payment if you can, an instalment amount and frequency, and a term. Offer the highest rate you can genuinely maintain — shorter terms are accepted more readily.
- 3
Set Out Your Financial Position (Expert)
Provide income or cash inflows, essential outgoings, and assets and liabilities so the ATO can see the instalment is realistic.
- 4
Make the Viability and Interest Case (Expert)
Show the business is viable, confirm lodgments are up to date, commit to future obligations, and ask for the general interest charge to be remitted for the plan period.
- 5
Lodge and Keep the Record
Send the request to the ATO, ask for recovery to be held meanwhile, and keep a dated copy. Provide any further financial information the ATO requests promptly.
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Legal Considerations
A payment arrangement is granted on capacity and viability, and the interest position needs managing alongside it.
This template provides general information for Australian taxpayers and is not financial, tax or legal advice. For larger debts, insolvency risk, director penalty notices or serious-hardship applications, get advice from a registered tax agent, accountant or financial counsellor — the National Debt Helpline (1800 007 007) offers free financial counselling. The Inspector-General of Taxation and Taxation Ombudsman handles complaints about ATO debt conduct.
Reviewed for Australian tax law
Paying by Instalments (s 255-15)
Under <strong>section 255-15 of Schedule 1 to the Taxation Administration Act 1953 (Cth)</strong>, the Commissioner of Taxation may, having regard to your circumstances, permit you to pay a tax-related liability by instalments under an arrangement. The arrangement does not change the day the amount is due and payable — which is why the general interest charge continues to accrue and why the template addresses interest remission directly.
The $200,000 Self-Service Threshold
A payment plan can generally be set up online or through the self-help phone line where the debt is <strong>$200,000 or less</strong>. Where the debt is more than $200,000, or your circumstances need explaining, you arrange the plan with the ATO directly. A written request like this one is suited to those cases, setting out your proposal, financial position and viability so the ATO can assess it on the facts.
Interest Keeps Running — and Is No Longer Deductible
Because a plan does not change the due date, the general interest charge accrues on the unpaid balance throughout — currently 10.96% a year — and GIC incurred on or after 1 July 2025 is no longer tax-deductible. The template asks the Commissioner to remit the GIC for the arrangement period under section 8AAG, on the basis that you are paying at the highest sustainable rate.
Serious-Hardship Release for Individuals (Division 340)
A plan defers a debt; a serious-hardship release can extinguish it. Under <strong>Division 340 (s 340-5) of Schedule 1 to the Taxation Administration Act 1953 (Cth)</strong>, an individual (or the trustee of a deceased estate) may apply to be released, in whole or in part, from a tax debt where paying it would cause serious hardship — meaning they could not provide the basic necessities of life for themselves and their dependants. Companies and trusts cannot apply. The Expert section runs this as an alternative to the plan.
How This Fits the Other ATO Templates
A payment plan manages a debt you accept you owe. If you dispute the assessment, lodge an objection first — our ATO income tax objection or ATO GST / BAS objection template — because an objection can reduce the debt. To challenge penalties and interest separately, use our ATO penalty and interest remission request. For a Centrelink overpayment debt rather than a tax debt, see our Centrelink debt dispute letter.
Frequently Asked Questions
Propose a Plan the ATO Can Say Yes To
Create your ATO payment plan request in minutes: a section 255-15 instalment proposal, a financial position statement, a viability case and a GIC remission request, in formal Australian letter format. Download the PDF free, or unlock Expert for the full financial, viability and hardship sections.
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