ATO Payment Plan Estimator
This estimator shows roughly what a payment plan on an ATO tax debt could cost you in repayments and interest. It is intended for Australian business owners weighing up a payment arrangement who want a measured, conservative picture before they commit.
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.
How to use this tool
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.
| Period | Repayment Amount | Notes |
|---|---|---|
| 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. |
What this means for your business
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.
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