ATO Payment Plan Estimator
Owing the ATO is a particular kind of stress, and a payment plan can make the debt manageable, but only if the instalments fit your cash flow. This gives you a measured, deliberately conservative picture of what an arrangement would cost in repayments and interest, so you can run the numbers before you commit to anything.
This is an estimate only. The ATO calculates GIC daily on the outstanding balance, so actual interest will be lower than this estimate as you make repayments. This tool uses simple interest as a conservative approximation.
Enter your total ATO debt above to estimate your repayments.
GIC rate used: 11.38% per annum. This rate changes quarterly, so check the current rate at ato.gov.au/rates.
What to enter
Enter the total tax debt you owe the ATO, then choose how long you would like to spread the repayments over and whether you would pay weekly or monthly. The tool applies the General Interest Charge of 11.38% per annum as simple interest across the plan to estimate the total cost, then spreads that total cost across the number of payments, so each repayment shown already includes estimated interest rather than the principal alone. Because the GIC rate changes quarterly, please confirm the current rate at ato.gov.au/rates before relying on the figures.
| What we show | How it is worked out | What it tells you |
|---|---|---|
| Each payment | Total cost ÷ number of payments | Your weekly or monthly repayment, including estimated interest. |
| Total GIC | Debt × 11.38% × years | Estimated General Interest Charge over the plan, as simple interest. |
| Total cost | Debt + total GIC | A conservative estimate of what the debt costs in total. |
Reading your estimate
A payment plan can turn an unmanageable tax bill into predictable instalments, but it is not free money, because the General Interest Charge continues to accrue until the debt is cleared. Use this estimate to check that the repayment fits comfortably within your cash flow before you commit, since agreeing to instalments you cannot sustain often does more harm than not entering a plan at all. The figures are deliberately conservative: because the ATO charges GIC daily on the reducing balance, your actual interest cost will usually be lower than the simple-interest estimate shown. A shorter plan means higher repayments but less total interest, whereas a longer plan eases the monthly pressure but costs more overall. If the smallest workable repayment still strains your cash position, treat that as a signal to seek advice early, as the ATO has remission and hardship provisions and an accountant can help you put forward a realistic proposal. Always confirm the live GIC rate and your actual balance with the ATO before deciding. If ATO debt is part of a broader picture of financial pressure, our plain-English glossary of Australian insolvency terms explains the formal options — from payment arrangements through to voluntary administration — available to Australian directors and business owners. For the two situations that most often sit behind a payment plan, see our guides on how businesses end up owing the ATO more than they realised and how to respond to a director penalty notice.
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