ATO payment plans have changed
The ATO is offering tailored payment plans for some businesses affected by rising fuel and supply chain costs. For some, this creates breathing room. For others, it creates an opportunity to review longer term options.
Extended repayment timeframes possible
Interest and penalties may be remitted
Tailored arrangements for eligible businesses
Earlier advice means more options
The ATO has introduced tailored repayment support for eligible businesses affected by rising fuel, transport and supply chain costs.
Depending on the situation, arrangements may include:
• extended time to repay tax debt
• consideration of interest or penalty remission
• reduced immediate enforcement activity while arrangements remain in place
These arrangements are designed to support viable businesses experiencing cost pressure.
Eligibility
Eligibility depends on demonstrating that rising operating costs have affected your ability to meet tax obligations.
The ATO is generally supporting businesses experiencing pressure from fuel, transport, or supply chain impacts rather than broader or long-term financial difficulty.
This may include:
✅ increased fuel or freight costs
✅ logistics or supply chain disruption
✅ reduced capacity to service existing tax debt
✅ lodgements kept substantially up to date
This checklist helps you assess whether your business may qualify for ATO repayment support and whether it may be time to review your position.
It may be time to consider a compromise with creditors if:
⭕ your ATO debt continues to increase despite being on a payment arrangement
⭕ continue to default on repayment arrangements
⭕ you have received a Director Penalty Notice
⭕ cash flow pressure has become ongoing rather than temporary
⭕ creditors are demanding payment more frequently or more aggressively
⭕ suppliers are moving to COD terms or refusing further supply
⭕ refinancing or additional funding is no longer available
⭕ BAS, IAS or super lodgements are falling behind
If a compromise with creditors is needed, a number of formal restructuring options may be available.
Depending on the circumstances, these options may assist to:
• compromise or reduce debt
• stop or reduce creditor pressure
• allow the business to continue trading
• provide time to restructure operations and cash flow
• protect value for directors, employees and creditors
• protect personal assets and exposure
Allows eligible small businesses to propose a plan to compromise unsecured debts while continuing to trade under director control.
Provides immediate protection from creditor action while an independent administrator assesses whether the business can be restructured or should be wound down.
A formal agreement with creditors to settle debts on agreed terms so the business can continue operating.
Speak with us
Reviewing your position while repayment flexibility is available can help determine whether repayment arrangements are likely to resolve the issue or whether a more structured solution should be considered.
The earlier the conversation happens, the more options are usually available
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Principal, Melbourne, Ringwood
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Principal, Canberra, Wollongong
An orderly wind down can often reduce further losses, manage creditor pressure and help directors move forward with certainty.
We have helped thousands of directors work through these decisions and understand the options available to them.
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Now may be the right time to review your position while repayment flexibility remains in place.