Last updated: 24 October 2024
An ATO Payment Plan Statement is a document provided by the Australian Taxation Office (ATO) that outlines the details of any payment plan your business has set up to manage outstanding tax debts.
If your business has found it difficult to meet its tax obligations in one lump sum, a payment plan allows you to pay off your tax debt over time in smaller, manageable amounts. A payment plan can be set up on a weekly, fortnightly or monthly basis.
Lenders often request this statement when assessing your business’s financial position because it reveals any ongoing tax-related liabilities and how your business is handling them.
Lenders use the ATO Payment Plan Statement to get an understanding of your business’s current financial obligations to the ATO and to assess whether you are managing those obligations responsibly.
Lenders are typically looking to understand the following:
Capacity to take on additional debt: Lenders need to know if your business is still dealing with unresolved tax debt. This can influence how they view your ability to take on and repay additional debt.
Quality of financial management: A payment plan can indicate that your business has faced cash flow challenges in the past, but it also shows that you are taking proactive steps to manage your debt responsibly.
Cash flow impact: Ongoing payments to the ATO may reduce the cash available for other business operations, including repaying new loans. Lenders will want to assess whether your current cash flow can handle both the payment plan and any potential new loan obligations.
Financial stability: While a well-maintained payment plan shows that you’re addressing tax debt, missed or late payments could signal financial instability, raising concerns about your overall risk profile.
Providing a current ATO Payment Plan Statement can reassure lenders that your business is responsibly managing its tax debt, but it’s important to show a consistent repayment history.
Firstly, visit the ATO's Online Services for Business Login page.
Click the Login button.
You will be directed to log in via the myGovID login screen.
If you don't have a myGovID set up, click the purple link "Set one up" to get started.
If you have a myGovID, enter your registered email address and click the Get code button.
A notification message will be sent to the myGovID app installed on your mobile phone. Click the notification message to open the mobile app, where you will be asked to approve the login by entering a four digit code.
Once you've logged in successfully, you will be asked to choose the entity whose tax records you wish to access. Select the relevant entity for you and click the Next button.
Next you will see the ATO home screen for the entity you selected. Click the Accounts and payments dropdown and select Payment plans.
Now you will see the Payments plan screen. It has a list of all Payment plans set up for your entity.
Print and save a PDF copy of your ATO Payment Plan Statement to share with your broker or lender.
You might be interested in reading these related articles:
How to Get Your ATO Integrated Client Account Statement
How to Get Your ATO Income Tax Account Statement
