How do I ask for a hardship arrangement and more time to pay?

Sometimes the fastest way to beat a deadline is to move it. A five-minute phone call can buy you weeks — and it costs nothing to ask.

How do you get a hardship arrangement? Contact the hardship team of whoever you owe, tell them what’s changed and offer an amount you can genuinely pay. Lenders, energy retailers, telcos and the ATO all have formal processes for exactly this, and some of them come with real legal teeth.

Who can I ask for more time to pay, and what can they offer?

Who you owe	Who to contact	What you can ask for	If they won’t help
Bank or lender	Hardship or financial difficulty team	Deferred or reduced repayments, a changed loan term	Australian Financial Complaints Authority (free)
Electricity, gas or water	Hardship department	Payment plan, bill smoothing, short delay, concessions	Your state energy and water ombudsman
Phone or internet	Financial hardship team	Instalments, postponed payments, waived late fees	Telecommunications Industry Ombudsman, 1800 062 058
The ATO	ATO online services in myGov, or by phone	Payment plan, more time to lodge or pay	Discuss your circumstances; ask about remission
Council rates or fines	Council or state fines agency	Instalments, deferral, sometimes a waiver	Ask about the review process

A few ground rules apply to every row. Call before the due date if you can, not after. Ask for the hardship team by name, because frontline staff may not have the same flexibility. Offer an amount you can keep paying even in a bad month, since a broken arrangement is harder to fix than a modest one. And write down the date, time and name of everyone you speak to.

If you’re juggling several bills at once, list them by consequence: housing and essential services first, then secured loans, then everything else. Some bills can wait a little; a disconnection or repossession is much harder to undo.

Already know a hardship plan won’t cover the whole gap? Ask a real person about the shortfall →

What do I say when I ask for a hardship arrangement?

Keep it short and specific. You’re not asking for a favour; you’re using a process the provider is expected to have. A simple script:

1. “I’m experiencing financial hardship and I’d like to speak to your hardship team.”
2. “Here’s what’s changed” — reduced hours, illness, a relationship ending, a big unexpected bill.
3. “I can afford to pay this much, on this date.”
4. “Can you please confirm the arrangement in writing?”

Have a rough budget beside you before you call. Moneysmart says lenders will ask about your income, your major expenses including other loans, and what you can afford. If you have evidence of the cause, such as a medical certificate or a letter about reduced shifts, mention it.

The National Debt Helpline also publishes sample letters and templates if you’d rather put it in writing.

What are my rights with banks and other lenders?

Stronger than many people realise. Moneysmart states that when you ask for help, your lender must consider you for hardship assistance.

According to the National Debt Helpline:

• the lender has about 21 to 30 days to respond, depending on whether it needs more information
• for the first hardship notice in any three-month period, it must stop further enforcement until it responds, unless it already has a court judgment
• a default generally can’t be listed while you’re seeking an arrangement
• if it says no, it must give you reasons and tell you about your right to have the decision reviewed

If you’re unhappy with the outcome, the Australian Financial Complaints Authority is free.

Does a hardship arrangement show on my credit file?

It can show, but it doesn’t damage your score. Moneysmart puts it plainly: a financial hardship arrangement does not affect your credit score. The arrangement can appear for the months it applied, you’re shown as up to date while you stick to it, and that listing is deleted after 12 months.

Arrangements with buy now pay later, phone, internet and utility providers don’t appear on your report at all. Compare that with missed payments, which can be recorded in your repayment history, and the case for asking early is obvious. More on how your file works in our guide to soft versus hard credit checks.

How do I ask utilities, telcos and the ATO for more time?

Power, gas and water

Your provider must offer hardship assistance on request and give notice before disconnection, though the details differ between states. If a disconnection notice has arrived, call immediately, say you’re in financial hardship and ask them not to disconnect while you agree a plan. Ask about state concessions too. Our page on overdue bills covers final notices in more detail.

Phone and internet

Telcos must work with you once you say you’re in hardship. Options can include an instalment plan, postponed payments, waived late fees or spend controls. They must not send your debt to a collector while you’re discussing hardship or keeping to an arrangement.

The ATO

If you owe $200,000 or less, you may be able to set up a payment plan yourself through ATO online services in myGov or by phone. Keep in mind the general interest charge keeps compounding daily while a plan runs. You can also talk to the ATO about extra time to lodge or pay. Business owners facing a tax deadline should read tax debt deadline options.

What if more time isn’t enough — could I qualify for funding?

A hardship arrangement buys breathing room. Sometimes that’s all you need. Other times, the gap is too big, the deadline can’t move, or you’re juggling several creditors at once and want one clear plan.

If that’s you, a free chat with a financial counsellor on 1800 007 007 is a smart first stop — the National Debt Helpline is open weekdays, and they don’t lend money or sell anything. Our page on staying calm under money pressure has more on making decisions while stressed.

And if borrowing is part of the answer, we can look at it with you. Our first conversation has no credit check, a real person reviews your situation, and your details aren’t passed around to a crowd of lenders. Give us honest numbers, including the arrangements you’ve already made, so the option we suggest fits alongside them. Ready when you are: see whether you could qualify.