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Seyran(Newbie)Registered Tax Professional
25 Nov 2025

I contacted the ATO to set up a payment arrangement for the client’s ICA account. The client currently owes $572.00 from the 2024 financial year. The 2025 financial year liability is $5,416.00, with a due date of 15 May 2026. The income tax account is also due in March 2026.

The client would like to commence a payment arrangement of $2,000 per month, starting 1 December 2025, to manage the upcoming ICA balance.

However, when I called the ATO to set up the arrangement, the officer (Chani) questioned why the client could not pay the amount in full and refused to establish the plan. They insisted that the full amount must be paid and declined to set up any payment arrangement.

I am confused by this response, as most of the outstanding balance is not due until next year in May, yet they still refused to set up the payment plan. I am unsure what is happening with the ATO, as their decision does not align with the due dates or with the client’s reasonable request.

125 views
1 replies
125 views
1 replies

All replies

DamienATO(Community Support)Community Support
26 Nov 2025

Hi @Seyran,

 

When setting up a payment plan, we ask some standard questions like:

  • why the debt can't be paid in full?
  • how much can you/your client pay today?
  • are you/your client able to meet their ongoing tax obligations and the payment plan?

If the operator didn't think the payment plan was viable, or the justification to enter into a payment wasn't valid, we may refuse a payment plan. The client has to demonstrate a genuine need for a payment arrangement.

 

Alternatively, you as their tax agent (or the client themselves), may be able to set up a payment plan via ATO online services. This might be easier than calling.

 

If that doesn't work, you may need call back to organise the payment plan. It might be handy to have some financial info when you make this call.

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