Does Having Tax Payment Plan Affect My Ability to Get New Credit Cards?

• 

  jv on 31/10/2024 - 00:46

  Most likely…

  It is a debt.

• 

  jv on 31/10/2024 - 00:47

  -1

  I think the fund would be better kept in an offset account than to pay lump sum.

  I doubt it… The ATO charge interest…

  • 

    assarabbiya on 31/10/2024 - 00:58

    -1

    Good point but it seems ATO doesn't charge interests for low values - <100 per month as per Redditors

    • 

      jv on 31/10/2024 - 01:00

      <100 per month

      You said it was a big tax bill ?

      • 

        assarabbiya on 31/10/2024 - 01:04

        Sorry to clarify
        If I went on short payment plan it'd result in about 100 interest, more if I went in a long one e.g. 12 month

  • 

    SmiTTy on 31/10/2024 - 03:33

    +2

    I've never been charged interest for my tax bill before… Ever. There have been times I've had overdue tax bills by up to 8 months. I always see the interest line item but it's always empty.

  • 

    apsilon on 31/10/2024 - 06:35

    +1

    They only charge interest if overdue I believe and a payment plan is standard, they set it up by default even if you don't want it but you can log in and swap it back to a single payment.

• 

  SmiTTy on 31/10/2024 - 03:38

  +1

  It doesn't show up in your credit file so the credit card provider won't see it. However as part of the credit application process they would ask about your liabilities of which this is one of them. So as long as your ability to repay is still good then you should still be able to get a cc. So I guess the short answer to your question is yes

  • 

    assarabbiya on 31/10/2024 - 09:14

    thank you

• 

  Dollar General on 31/10/2024 - 05:45

  Australian’s and their offset accounts

  • 

    assarabbiya on 31/10/2024 - 09:15

    Part of me actually wants to buy us index etf with it 😁

  • 

    JakeyJooJoo on 31/10/2024 - 14:34

    Goes hand in hand with being up to our eyeballs in debt at a ~6% interest rate.

• 

  AngusD on 31/10/2024 - 08:16

  +1

  I assume you would just declare it along with everything else in the relevant part of the application that asks you about your existing debts, repayments, etc. I can't see why they would view an ATO debt as being different to any other debt.

  • 

    assarabbiya on 31/10/2024 - 09:16

    Thank you
    I think I'm just nervous as I never had a payment plan with ATO

    • 

      MS Paint on 31/10/2024 - 09:22

      +1

      Don't be nervous