It’s not uncommon for individuals and businesses to have debt to the ATO. The important thing is not to ignore it as it can accrue interest. Here’s a few options you have when dealing with the ATO.
ATO (Australian Taxation Office) debt can be a significant financial burden for individuals and businesses. Here are six ways to deal with ATO debt:
- Payment Plan: The ATO provides payment plans to individuals and businesses who are unable to pay their debt in full. A payment plan allows you to make regular payments towards your debt over a period of time, rather than paying a lump sum upfront. To set up a payment plan, you can contact the ATO or use their online services.
- Negotiate with the ATO: If you are unable to pay your debt, you can negotiate with the ATO to reduce or waive your debt. You can do this by contacting the ATO or using their online services. However, the ATO will only consider reducing or waiving your debt if you can demonstrate financial hardship or extenuating circumstances.
- Seek Professional Help: You can seek professional help from a tax accountant or financial advisor to manage your ATO debt. They can help you negotiate with the ATO, set up payment plans, or explore other options to manage your debt.
- Apply for Hardship Relief: The ATO provides hardship relief to individuals and businesses who are experiencing severe financial hardship. You can apply for hardship relief if you are unable to pay your debt due to circumstances beyond your control, such as illness, disability, or a natural disaster.
- Early Payment Discount: The ATO offers an early payment discount for individuals and businesses who pay their debt in full before the due date. The discount can vary depending on the type of debt and the payment method used. You can check the ATO website for more information on early payment discounts.
- Budgeting and Planning: If you have an ATO debt, it’s essential to budget and plan your finances carefully. You can create a budget to track your income and expenses, and identify areas where you can cut costs. You can also plan ahead for future tax obligations to avoid accumulating more debt in the future.
In conclusion, there are several ways to deal with ATO debt. The best approach will depend on your individual circumstances, but seeking professional advice and exploring your options is always a good place to start. If you are in some difficulty with your ATO debt then please engage with us at Infuse so we can understand your position and offer you appropriate professional advice.
