How long can I pay tax after due date?

The ATO expects payment by the due date on your Notice of Assessment — typically the same date as your lodgement deadline (31 October for individuals). However, if you cannot pay by that date, you have options: you can apply for a payment extension or negotiate a payment plan, but interest will generally accrue from the original due date.

What the Due Date Actually Is

Your tax becomes due and payable on the date specified in your Notice of Assessment (NOA), which is issued after you lodge your tax return. For most individual taxpayers, the due date aligns with the lodgement deadline of 31 October. If you lodge early or your NOA arrives earlier, the due date on that notice applies. The ATO issues NOAs as returns are processed — which can be anywhere from days to months after lodgement.

If You Cannot Pay by the Due Date

If you know you will not be able to pay by the due date, contact the ATO before the due date passes. The ATO is generally willing to negotiate payment arrangements for debts under $100,000 without requiring a formal application. For larger debts, more formal arrangements apply.

Key options include:

• Payment plan (installment arrangement): Spread the debt over manageable monthly instalments. The ATO calculates the instalment amount based on your financial situation.
• Delayed payment: If you can demonstrate temporary hardship, the ATO may grant a short extension before enforcement action begins.
• Compromise or settlement: In rare cases, the ATO may accept less than the full amount owed — usually only for companies in genuine financial distress.

Interest Continues to Accrue

Be aware that general interest charge (GIC) continues to accrue on any outstanding tax debt from the original due date, even if you are on a payment plan. GIC rates in 2025-26 are approximately 11.34% p.a., adjusted quarterly. The only way to stop GIC is to pay the debt in full.

How to Apply for a Payment Arrangement

You can set up a payment plan online via ATO Online services through MyGov or by calling the ATO debt collection line. Have your NOA reference number ready and details of your income, expenses, and assets. The ATO will assess your capacity to pay and propose instalments. If you default on the plan, the ATO can cancel it and resume enforcement action immediately.

Consequences of Doing Nothing

If you ignore the debt entirely, the ATO can:

• Garnish wages or bank accounts
• Issue a director penalty notice (for company directors)
• Commence legal proceedings
• Sell property to recover the debt