Owe the ATO and not sure where to start? Our registered tax agents negotiate ATO debt payment plans, apply for penalty remission and more so you can stop the interest stacking and get your business back on track.
No obligation. We’ll get back within 1 business day.
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| ATO debt | ATO action | Your option | Time |
|---|---|---|---|
| Unpaid BAS / IT | GIC accrues daily | Payment plan | 21 days |
| DPN issued | Personal liability | Lodge & engage | 21 days |
| Garnishee | Bank account frozen | Urgent negotiation | ⚠ 24h |
Tax debt occurs when you owe money to the Australian Taxation Office (ATO). This typically
comes from unpaid Business Activity Statements (BAS), income tax assessments, PAYG
withholding obligations, or other tax liabilities.
The good news? Tax debt is negotiable. The ATO understands that businesses face cash
flow challenges, and they’d rather work with you on a payment arrangement than take
enforcement action. That’s where we come in – we handle the negotiation so you can focus on your business.
What makes tax debt serious is that it doesn’t stay static. The ATO adds penalties on top of
your original debt, and interest compounds daily. What started as $50,000 can quickly
become $70,000 or more, depending on how long it remains unpaid.
ATO won't negotiate until you're up to date. We prepare and lodge outstanding BAS and tax returns so you can get back into the system properly.
Once your lodgements are up to date, we help you see the real tax debt position clearly.
Once your lodgements are up to date, we help you see the real tax debt position clearly.
Stay on top of future BAS, returns and compliance so you do not fall behind again.
Behind on lodgements as well? You'll need to lodge those first before the ATO will negotiate.
Behind by more than one year? We can help work through the backlog step by step.
Once your lodgements are finalised, we help you understand the debt and next options.
Support with structuring a manageable path forward after lodgement
Book a free consultation and get a complete plan - your debt, your returns, your books - all mapped out with clear steps and honest timelines. No cost. No obligation. No judgement.
Walk away with a clear plan - guaranteed. It's yours to keep even if you don't become a client.
Tell Us What’s Overdue
We review your BAS, tax returns and ATO situation.
We Catch Up Your Lodgements
We prepare and lodge what is outstanding.
We Sort the Debt Position
Once lodged, we help you understand what is owed and what to do next.
You can, but having a registered tax agent negotiate on your behalf typically leads to better outcomes. They know what the ATO will accept and how to present your financial position. Lawpath’s accountants can handle ATO negotiations for you – so you don’t have to go it alone.
If you don’t engage with them, yes – the ATO can escalate to garnishee orders, director penalty notices, or winding-up proceedings. The good news is that acting early gives you far more options. Speak with a Lawpath accountant to understand your position and get ahead of it.
In many cases, yes. The ATO can remit penalties and interest charges where there are extenuating circumstances. A Lawpath accountant can assess your situation, build a case for remission, and handle the application on your behalf.
A Director Penalty Notice (DPN) is the ATO’s way of making company directors personally liable for unpaid company tax debts – specifically PAYG withholding, super guarantee, and GST. If your company hasn’t met these obligations, the ATO can issue a DPN to recover the debt from you personally. Acting quickly is critical, as the options available to you depend on how overdue the lodgements are.
It depends on the complexity of your situation. A straightforward payment plan can be set up within days. Resolving larger debts, penalty remission applications, or responding to a DPN can take weeks to months. The sooner you get professional advice, the faster the process moves, and the more options you’ll have available.
The ATO applies the General Interest Charge (GIC) on unpaid tax debt. GIC compounds daily and the rate is set by the ATO each quarter. A registered tax agent can apply for GIC remission in cases of genuine hardship or extenuating circumstances.
If you owe under $200,000 and meet eligibility criteria, you can self-serve via myGov or Online Services for Business. For larger debts, complex situations, or after enforcement has started, a registered tax agent should negotiate on your behalf.
Rarely. The ATO’s preference is full payment via a structured plan. They will, however, remit penalties and interest in the right circumstances. Talk to a registered tax agent about a remission application.
Yes. Once enforcement starts the ATO can issue garnishee notices, statutory demands, and even apply to wind up your company. Acting before enforcement begins gives you far more options.
No obligation. We'll get back within 1 business day.
By clicking on 'Submit an enquiry' you are agreeing to the Lawpath Terms & Conditions
