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How the ATO manages Tax Debt


The ATO considers your behaviour, individual circumstances, lodgement history and payment history when determining the most appropriate action for a tax debt. Some individuals may occasionally experience temporary cash flow issues that prevent them from making payment. The ATO offers payment plans to help with this. * Support for clients experiencing serious hardship is available in some circumstances. Prevention & Support To make it as easy as possible to pay on time, the ATO uses ...

  • Communication and education

  • Pre due date SMS

  • Payment plans

Early Action

  • Post due date SMS

  • Reminder letters

  • Pre referral to external debt collection agency warning letter

  • Phone call from the ATO

  • External debt collection agencies

Firmer Action

  • Firmer action warning letter

  • Garnishee

  • Director penalty notice

Stronger Action

  • Notice of intended legal action

  • Summons

  • Judgement

  • Bankruptcy notice

  • Creditor's petition

  • Statuatory demand

  • Application for winding up

If you need help with your tax debt, please get in touch with our accountants who are more than happy to help you. If you have any concerns, please contact our office on 9773 3647.


References: (2019). What to do when your client has a tax debt. [online] Available at:


MIRANDA ACCOUNTING SERVICES 8/263 – 271 Wells Road, Chelsea Heights Vic 3196 PO Box 476, Patterson Lakes VIC 3197 Tel 03 9773 3647

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