Free tool
ATO payment plan calculator
Model your instalments against a real ATO debt. The general interest charge compounds daily at 11.43% p.a., so this shows how long the debt takes to clear and what the interest actually costs you.
An upfront payment cuts the balance interest is charged on and strengthens a plan request.
To clear it faster
Monthly instalment of $2,214 clears it in about 12 months.
Monthly instalment of $1,169 clears it in about 24 months.
Time to clear the debt
2 years 5 months
29 instalments of $1,000
| Balance at plan start | $25,000 |
| Interest at 11.43% p.a. | $3,650 |
| Total you will pay | $28,650 |
Year by year
| Year | Paid | Interest | Balance |
|---|---|---|---|
| 1 | $12,000 | $2,364 | $15,364 |
| 2 | $12,000 | $1,178 | $4,542 |
| 3 | $4,650 | $108 | $0 |
Estimate only. The general interest charge rate is reset each quarter, so a plan running longer than three months will span several rates.
Before you lock in a plan, shrink the debt
Most ATO debts that reach a payment plan include penalties and interest layered on top of the core tax, and only the core tax is fixed. Penalties and general interest charge are both remittable, so the order that saves the most money is: bring every outstanding lodgment up to date, request remission of penalties and interest, then negotiate the plan on whatever is left. Committing to instalments on an unchallenged balance means paying interest on amounts that may not have needed paying at all.
Common questions
How much interest does the ATO charge on a payment plan?
The general interest charge applies to the outstanding balance and compounds daily. The current rate is 11.43% per year for the July - September 2026 quarter, and it is reset each quarter, so a long plan will span several rates.
Does interest keep accruing while I am on an ATO payment plan?
Yes. A payment plan stops enforcement action, not interest. General interest charge continues to compound daily on whatever is still owing, which is why a shorter plan with larger instalments always costs less overall.
What is the minimum I can pay the ATO each month?
There is no published minimum, but the instalment must at least cover the interest accruing or the debt grows. This calculator flags when your instalment is below that break-even point and shows the amount that clears it.
How long can an ATO payment plan run?
Plans set up online generally run up to 24 months for debts under the self-service limit. Longer arrangements are negotiated case by case and usually require financial information and evidence that the plan is sustainable.
Can the interest on my ATO debt be reduced?
General interest charge is remittable. The ATO can reduce or remove it where there were circumstances beyond your control, or where remission is fair and reasonable, and remission requests are strongest once every outstanding lodgment is up to date.
Further reading
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