Is Your ATO Debt Costing You More Than It Should?

Is Your ATO Debt Costing You More Than It Should?

With tax returns and end of year lodgements now being finalised, some businesses will find themselves sitting on ATO debt.

Entering into an ATO Payment Plan might seem like the path of least resistance.  But for many businesses, an ATO payment plan is one of the most expensive forms of finance you can carry.

The Problem with ATO Payment Plans

The ATO’s General Interest Charge (GIC) currently sits at 11.43% per annum (July-September 2026), and that interest is not tax deductible.

That makes it an expensive debt on two fronts.  But there’s a third problem that’s often overlooked:

• High interest rate
• Interest is NOT tax deductible – unlike most business finance
• Importantly, an active ATO payment plan can impede your ability to obtain other finance in the future – such as home loans, business loans, commercial lending, car and equipment finance

In short, leaving debt with the ATO can cost your business and constrain your financial options for months or sometimes years.

There Is a Better Way

In many cases, ATO debt can be refinanced into a structured business loan, or in some circumstances, even consolidated into a home loan.

Both options attract a significantly lower interest rate.

Who Is This Suitable For?

This approach works well for:

• Business owners with a tax bill they are struggling to clear in full
• Clients already on an ATO payment plan looking for a lower cost alternative
• Businesses with upcoming borrowing needs who want their ATO debt cleared before applying for finance

Some of the key benefits of speaking with us about refinancing your ATO liability:

• Lower interest rate – often significantly less than the ATO’s general interest charge/rate
• Interest may be tax deductible – subject to your Accountant’s advice
• Removes the ATO from the equation – clearing your record with the Tax Office
• Frees up cash flow – structured repayments that work for your business
• Protects future borrowing capacity – no more ATO plan visible to other lenders
• Fast approvals – the Lender will turn your approval around quickly
• Future planning – we can help you plan towards meeting your future objectives