ATO Payday Super Changes
Since 1 July 2026, employers must pay super with each pay run. Contributions have to reach the fund within seven business days of payday.
Learn MoreATO Payment Plan Calculator
What an ATO debt really costs on a payment plan, against paying now or a loan you have been quoted. GIC is no longer tax deductible, so the numbers matter more.
GIC used: 11.43% a year, compounding daily - the ATO rate for 1 July 2026 to 30 September 2026. The ATO reviews it every quarter, so a long plan will see it change.
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Cost of clearing $20,000.00
ATO payment plan, 12 months
$1,772.14 a month
GIC over the plan: $1,265.68 (not tax deductible)
Pay now
No further GIC from today, if you can pay it without leaving the business short.
Leave it unpaid for a year and GIC alone adds about $2,421.37.
Every BAS deadline for the year with a live countdown, plus your set-aside amount.
Regulatory Notice:
Standard ATO estimates only; consult a professional before acting. For more details, see our Disclaimer.
What an ATO payment plan really costs
A payment plan stops the ATO chasing you for the lump sum, but the debt keeps growing: GIC is charged on the balance every day and compounds. At the current rate of 11.43%, a $20,000 debt paid over 12 months costs about $1,265.68 in GIC. Stretch the same debt to 24 months and it is about $2,479.51.
Since 1 July 2025 that interest can't be claimed as a tax deduction, so a plan is now dearer in real terms than it used to be. The shortest plan you can afford is almost always the cheapest one.
Plan, loan or pay now
- Pay now if you can do it without leaving your business short of cash for wages, super and your next BAS.
- A payment plan keeps you on good terms with the ATO. Set it up through ATO online services, and keep lodging on time while it runs.
- A loan only makes sense if a quote you actually hold costs less in total, fees included, than the GIC above. Enter it in the calculator to check.
Stop the next one
Most ATO debts start as tax nobody set aside. The tax set-aside calculator shows what to keep from every payment, and the PAYG instalment calculator shows what the ATO may ask you to prepay each quarter.
Frequently asked questions
Do I pay interest on an ATO payment plan?
Yes. The ATO says tax debts on a payment plan continue to accrue general interest charge (GIC), which compounds daily. Paying the debt in a shorter time reduces the GIC you pay.
How is the general interest charge worked out?
GIC is worked out daily on a compounding basis. The ATO reviews the rate every quarter. The annual rate for 1 July 2026 to 30 September 2026 is 11.43%.
Is GIC tax deductible?
Not any more. GIC incurred on or after 1 July 2025 can no longer be claimed as a tax deduction. That makes every dollar of GIC a cost you pay from after-tax money.
Can the ATO reduce or cancel the interest?
You can ask the ATO to remit GIC. The ATO says it may remit GIC if there are extenuating circumstances, so it is worth asking if something outside your control caused the debt.
Is a loan cheaper than an ATO payment plan?
Only if the loan's total interest and fees come to less than the GIC over the same period, which depends entirely on the rate and fees you are actually offered. Whether loan interest is deductible depends on what the debt is for, so check with a registered tax agent. AusCalc does not arrange loans or recommend lenders.
Sources: ato.gov.au general interest charge, GIC rates and payment plans pages, checked 27 September 2026.