Frequently Asked Questions
Your Questions Answered
We’ve answered some of the most common questions our clients ask about managing tax debt and navigating the restructuring process. If you need more personalised advice, our team is here to help.
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What is an ATO payment arrangement?
An ATO payment arrangement allows your business to pay off tax debts over time in manageable instalments, rather than in a lump sum. This can include income tax, GST, PAYG, and superannuation debts.
Who is eligible for an ATO payment plan?
Most businesses with tax debts under $100,000 are eligible to apply. The ATO typically considers your lodgement history, ability to pay, and past compliance when assessing your eligibility.
Will interest still apply to the debt during a payment arrangement?
Yes. The ATO generally charges interest on outstanding tax debts under a payment plan, although you may apply for interest remission in certain circumstances.
What happens if I miss a payment in my arrangement?
Missing a payment can result in the arrangement being cancelled. It’s important to contact the ATO or your restructuring advisor immediately to renegotiate or adjust the terms.
Can the ATO take enforcement action while I’m on a payment plan?
If you’re meeting the agreed terms, the ATO usually pauses enforcement action. However, if you default on the arrangement, they may pursue garnishee notices or legal action.
Can I negotiate a payment plan directly with the ATO or should I use an advisor?
You can negotiate directly, but working with a restructuring expert ensures your proposal is realistic, compliant, and more likely to be accepted.
Is a payment arrangement a permanent solution?
No — it’s a temporary relief measure. If your tax debt is unmanageable, exploring formal restructuring options like Small Business Restructuring may provide a more sustainable outcome.
What is Small Business Restructuring (SBR)?
SBR is a formal insolvency process introduced by the Australian Government that allows eligible small businesses to restructure their debts — including tax debts — while the directors remain in control of day-to-day operations.
How does SBR differ from liquidation or voluntary administration?
Unlike liquidation, SBR aims to rescue the business and keep it trading. It is faster, more cost-effective, and allows the existing directors to retain control during the restructure.
Who is eligible for Small Business Restructuring?
To qualify, your business must have total liabilities under $1 million, be up to date with BAS and tax lodgements, and employees must be paid and entitlements up to date.
Can tax debt be included in an SBR plan?
Yes. ATO tax debt can be a major component of the restructure. The ATO is often a significant creditor and can agree to reduced payments as part of the formal proposal.
Will my business be protected from creditors during the SBR process?
Yes. Once the process begins, unsecured creditors (including the ATO) are temporarily prevented from taking enforcement action while the plan is proposed and voted on.
How long does an SBR process take?
Typically 20–35 business days from start to creditor vote. It’s one of the fastest formal insolvency procedures available to small businesses in Australia.
What happens if the restructuring plan is accepted?
Once approved by more than 50% in value of creditors who vote, the plan becomes binding and the business pays off the agreed amount, usually over a 3-year period or less.
What does Chifley Advisory do?
Chifley Advisory is a specialist business restructuring firm helping companies across Australia manage financial difficulties, resolve tax debts, and regain stability through tailored restructuring solutions.
Where is Chifley Advisory located?
We operate Australia-wide, with a team of experienced restructuring professionals available to assist clients in all states and territories, either in person or via virtual consultation.
Who does Chifley Advisory help?
We primarily assist small to medium-sized businesses facing financial stress, particularly those with ATO tax debts or cash flow issues. We work with company directors, accountants, and legal advisors.
Do I need to be in liquidation to work with Chifley Advisory?
Not at all. Our goal is to help businesses avoid liquidation wherever possible. We offer formal and informal solutions including ATO negotiations and Small Business Restructuring (SBR).
What qualifications do your advisors have?
Our team includes Registered Liquidators, Chartered Accountants, and Registered Tax Agents — all with decades of combined experience in insolvency, tax advisory, and business restructuring.
Is the first consultation free?
Yes. We offer an obligation-free initial consultation to understand your situation and advise you on the best course of action.
Is my information kept confidential?
Absolutely. All information shared with us is treated with strict confidentiality and handled in accordance with Australian privacy and professional standards legislation.
Need more personalised assistance?
Reach out to our team for an obligation-free and confidential chat.