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GST included in customer payments can make available cash look larger than it is. Plan for the amount you may owe when your BAS falls due.
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Help Centre
ATO and tax
Tax debt is one of the most common pressures on Australian small businesses, and it escalates in predictable stages. Acting early usually keeps more options open and costs less.
The ATO offers payment plans and other help for businesses that engage with it, and it expects lodgements to stay up to date even when you can't pay in full. Left unmanaged, overdue tax can lead to interest charges, Director Penalty Notices that make directors personally liable, credit reporting of the debt and legal action.
These guides explain each step as the ATO describes it, what to do first and when to get help from a registered tax agent or adviser. Where some businesses consider refinancing tax debt, we explain that separately and after the ATO options.
Last reviewed 25 Sept 2026
Guides in this section
How do ATO payment plans work for businesses?
An ATO payment plan lets your business pay a tax debt in instalments. If you owe $200,000 or less you may be able to set one up yourself online or by phone. Interest (GIC) keeps applying while you are on the plan.
5 min read
What happens if my business can't pay the ATO?
Keep lodging on time and contact the ATO before the due date. The ATO offers payment plans, but interest (GIC) keeps building, and if you don't engage the ATO can escalate to director penalties, garnishee notices, credit reporting and legal action.
6 min read
What happens if my business doesn't pay super guarantee on time?
From 1 July 2026, Payday Super means super must reach your employee's fund within 7 business days of payday. If it doesn't, the ATO can assess you for the super guarantee charge (SGC), and company directors can become personally liable for unpaid SGC.
6 min read
What is a director penalty notice (DPN)?
A director penalty notice (DPN) is a notice the ATO must give a company director before it can recover certain unpaid company tax and super amounts from the director personally.
6 min read
What should I do if I receive a director penalty notice?
Act straight away. Work out when the 21 days ends, check which debts the notice covers and whether they were reported on time, then contact the ATO or your registered tax agent and get professional advice.
6 min read
What should I do if my BAS is overdue?
Lodge your overdue BAS as soon as you can, even if you can't pay the amount owing, and contact the ATO. Late lodgement can attract a failure to lodge penalty, and you can deal with the payment separately through a payment plan.
5 min read
From our Learning Hub
Tax and ATO
Using business finance to pay ATO debt: what to know in 2026
ATO interest charges stopped being tax deductible from 1 July 2025, and large overdue debts can now reach credit files. Here is how to weigh a payment plan against refinancing.
8 min read