Tax Debt Loans from 8.99% p.a.

Why Businesses Use Tax Debt Loans

Tax debt is one of the most common financial challenges Australian businesses face. Whether it is accumulated GST, PAYG withholding, income tax, or superannuation arrears, an ATO debt can quickly escalate with the General Interest Charge (GIC) compounding daily. Left unaddressed, the ATO has powerful enforcement tools including garnishee notices on your bank accounts and customers, director penalty notices that make directors personally liable, and ultimately, wind-up proceedings.

A tax debt loan pays out your entire ATO obligation in a single lump sum, immediately stopping the GIC clock and removing the ATO from your business operations. You then repay the loan in structured, affordable instalments over an agreed period. This gives you certainty, protects your business relationships, and often costs less than leaving the debt with the ATO.

Many business owners are surprised to learn that the ATO's GIC runs at approximately 11% per annum, compounding daily. A tax debt loan at 8.99% to 12% p.a. with simple interest can actually be cheaper than the ATO's own charging regime, while also providing the certainty of fixed repayments.

Tax Debt Loans vs ATO Payment Plans

The ATO does offer its own payment plans, and for smaller debts with a clear path to repayment, this can be a viable option. However, ATO payment plans have several limitations that make a commercial loan preferable in many situations:

• GIC continues to accrue: During an ATO payment plan, the General Interest Charge continues to compound on the outstanding balance, increasing your total cost.
• No guaranteed terms: The ATO can vary or cancel a payment plan if your circumstances change or if you miss payments, leaving you exposed to immediate enforcement.
• Ongoing ATO scrutiny: Having an active ATO debt means ongoing interaction with the ATO, including reporting requirements and potential audits.
• Credit reporting: Since 2017, the ATO reports tax debts over $100,000 to credit bureaus, affecting your ability to access other finance.
• Director risk: Until the debt is fully cleared, directors remain exposed to personal liability through Director Penalty Notices.

A tax debt loan clears the ATO obligation completely, removes these risks, and replaces the debt with a straightforward commercial loan with fixed terms and repayments.

Types of Tax Debt We Can Help With

Our tax debt loan products cover all types of ATO obligations. The most common debts we help businesses clear include GST arrears, which are the most frequent type of business tax debt; PAYG withholding obligations, where businesses have collected employee tax but not remitted it to the ATO; company and individual income tax, including prior year assessments and amendments; superannuation guarantee charge, where employers have fallen behind on super contributions; and accumulated penalties and interest charges on any of these debts.

We can also arrange funding for debts that span multiple tax types. It is common for businesses in financial difficulty to accumulate arrears across GST, PAYG, and super simultaneously. A single tax debt loan can clear all of these, simplifying your obligations into one manageable repayment.

Getting Tax Debt Finance When You Need It Most

Tax debt situations are often urgent. You may have received a garnishee notice threatening to freeze your bank accounts or redirect customer payments. A director penalty notice may be making you personally liable for the company's PAYG or super debt. The ATO may be threatening to wind up your company.

We understand the urgency and have established fast-track processes with our specialist lenders. For amounts up to $250,000, we can often secure approval within 24 to 48 hours. This rapid turnaround can be the difference between your business continuing to trade and facing devastating enforcement action.

Even if your credit history has been affected by the tax debt situation, options exist. Specialist lenders assess your current trading performance and recovery trajectory rather than solely relying on historical credit scores. If your business is trading profitably and can demonstrate the ability to service the loan, approval is achievable.