Lodging and paying your tax liabilities on time will help you avoid a tax debt, General interest charge (GIC), potential penalties and firmer action. 

If you’re unable to lodge or pay by the due date, contact the ATO as soon as possible to find out what support options are available to you. 

Avoiding the problem can make the situation worse and lead to growing debt, further missed payments, firmer or legal action and additional stress and financial pressure. 

Using the right payment reference number (PRN)

When making a payment make sure you use the correct PRN. A PRN may also be called an electronic funds transfer (EFT) code.

There are different PRNs for different types of tax, for example, one PRN for income tax and one PRN for activity statements. You can find the right PRN by logging into online services, calling your tax agent or the ATO. 

If you use the wrong PRN there may be delays with crediting your payment to the right account, which can lead to you having a debt even though you made the payment on time. If you think you might have used the wrong PRN or you think your payment hasn’t been received, contact the ATO straight away. 

Generally, payments are allocated based on the PRN used or the information you provide the ATO, however in some circumstances where you have multiple debts, the ATO may allocate the money to a different debt. 

Optimism bias

Optimism bias is our natural tendency to be unrealistically optimistic and think everything will be okay or will work out, even though there is no evidence to support that it will. 

Be realistic about your situation and proactively take steps to manage it.