According to the ATO, the update will see payment plans being set up with an upfront amount tailored for different clients, as well as instalment amounts that have been manageable for clients with similar circumstances.
Tax agents will still be able to vary the upfront amount and instalment amounts above or below the amounts put forward by the Tax Office.
The ATO believes the change will ensure the “right balance in offering a manageable payment plan”.
Agents can set up payment plans on behalf of clients on online services for agents for income tax, activity statement, super guarantee director penalty accounts, super guarantee employer and fringe benefits tax.
Payment plans can only be established if the client has an existing debit amount under $100,000, has no payment plan for that debt, and has not defaulted on a payment plan for the relevant account more than twice in the past two years.
Practitioners who are unable to arrange a suitable payment plan online have been advised to contact the ATO directly for support.
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