ATO late lodgement penalty: up to $364 per 28 days, capped at $1,820 per document · interest 11.43% p.a. compounding daily · See how to remit them →
The one number you need first: your PRN
Your payment reference number ties the money to the right account, and income tax and activity statements use different PRNs. You will find it on your notice of assessment, in ATO online services under Payment, or on any ATO letter about the debt. A wrong or missing PRN leaves the payment floating unallocated while general interest charge keeps accruing, which is the most avoidable own goal in tax.
Payment methods compared
| Method | Fee | Processing | Best for |
|---|---|---|---|
| BPAY (biller 75556 plus your PRN) | None | 1 to 2 business days | Almost everyone, free and traceable |
| Card online (Government EasyPay) | Card fee, roughly 0.2% debit and up to about 1.5% credit | 1 to 2 business days | Points chasers who have done the maths on the fee |
| Direct debit | None | Scheduled | Payment plan instalments, set and forget |
| Australia Post (Post Billpay) | None | 1 to 3 business days | Cash or EFTPOS in store |
| Direct credit / EFT | None | 1 to 2 business days | Business bulk payments |
Two timing notes. The ATO counts a payment when they receive it, not when you send it, so pay a couple of business days before the due date. And card fees are deductible only where the underlying tax relates to business.
Paying by the due date, and what "due" means
Income tax is due on the date shown on your notice of assessment, generally 21 November for on-time self lodgers and later for many agent clients. BAS amounts are due on lodgment day itself. One day late technically starts daily general interest charge, and in practice the ATO applies it from day one on any meaningful balance.
Can't pay in full? The decision order
What to do when the bill is bigger than the bank balance
Never delay lodging because you cannot pay
Lodging and paying are separate obligations, and only one of them attracts failure to lodge penalties of $364 for each 28 days late, up to $1,820 per return.
Pay what you can by the due date
General interest charge only accrues on what is left, so a part payment on time is never wasted.
Set up a payment plan
Online in minutes for debts up to $200,000. Model the true cost first with the ATO payment plan calculator.
Attack the balance itself
Penalties and interest buried in old debts are often remittable before you commit to repaying them.
Model the instalments and interest on our ATO payment plan calculator, then read how ATO payment plans actually work.
Fees and ATO payment channels checked August 2026.
Frequently asked questions
What is the cheapest way to pay the ATO?
Can I pay the ATO with a credit card?
Where do I find my ATO payment reference number?
Can I pay the ATO in instalments?
What happens if I pay the ATO late?
General information only - not personal tax, financial or legal advice. Consider your own circumstances or speak to a registered tax agent. Remission of penalties or interest and payment plans are decisions of the ATO and outcomes can't be guaranteed.