Tax & ATO debt help, without the stress
Behind on BAS, PAYG or income tax? Your broker weighs a loan against a payment plan, using lenders who understand tax debt.
- Free to compare
- A specialist partner broker, start to finish
- No credit score impact
Typical ranges only. Actual limits depend on the lender and your circumstances.
Example rate only: not a comparison rate, quote or offer of credit. Your rate depends on your credit profile, the lender and the asset. Excludes fees and charges.
The ATO may offer a payment plan. Free, confidential help is available from the Small Business Debt Helpline on 1800 413 828.
How tax & ATO debt works with us
Tax debt is a common reason businesses come to us. ATO payment plans exist, but interest keeps adding up, and unpaid debt can affect your credit file, suppliers and lenders.
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Your broker compares a loan’s cost with payment-plan options. Sometimes a payment plan is better, and we’ll say so.
- BAS and GST debt
- PAYG withholding
- Company or personal income tax
- Superannuation guarantee shortfalls
- Debt on an ATO payment plan
- Tax debt with other business debts
Compare your options
Loan versus ATO payment plan, with the real cost of each.
Specialist lenders
Lenders who regularly fund tax debt and understand it.
Combine with other debt
Roll tax and other business debts into one repayment where sensible.
Move quickly
Faster lenders can help when there’s pressure to act.
ATO payment plan vs a loan: weighing up your tax debt options
ATO payment plans are simple but interest usually keeps building, and larger overdue debts may be reported to credit bureaus. A loan can make sense if it costs less or protects other finance, but adds a repayment. Your accountant and the Small Business Debt Helpline (1800 413 828) can help.
Read the full explanation
The ATO may offer payment plans for business tax debt, letting you pay over time. A payment plan can be simple to set up, but the general interest charge usually continues to build on the unpaid balance, and the ATO may expect you to keep up with new lodgements and payments. If the plan is not kept, the ATO can take further action. Larger overdue business tax debts may also be reported to credit reporting bureaus in some circumstances.
A loan to clear the debt replaces the ATO with a lender. It can make sense if the loan's total cost is lower than the payment plan, if you want to clear the debt before it affects other finance, or if a payment plan isn't available. It also adds a new repayment, so cash flow needs to support it. Your broker can compare the options, and your accountant should help assess the tax side. The free Small Business Debt Helpline on 1800 413 828 is also available.
- Businesses behind on BAS, PAYG or income tax
- Owners wanting to clear a payment plan
- Businesses whose tax debt affects other finance
- Owners with equity or assets for security
Pros and watch-outs
Pros
- Can clear the ATO debt in one payment
- May help protect access to other finance
- Lenders that understand tax debt
- Can be combined with other business debts
Watch-outs
- !Adds a new repayment to cash flow
- !Some tax debt loans cost more than a plan
- !Doesn’t fix the cash flow issue behind the debt
Costs and fees to compare
The interest rate is only part of the cost. Ask your broker to show these side by side.
Interest
Depends on lender, security and your business; compare with the ATO’s general interest charge.
Establishment fee
Lenders usually charge a fee to set up the loan.
Security costs
If property secures the loan, expect valuation and legal costs.
Short-term lender costs
Some specialist tax debt loans are expensive; compare total cost.
Ongoing tax obligations
Clearing old debt doesn’t cover future BAS and tax, still due on time.
Tips to strengthen your application
- 1Get a current ATO statement with full balance and interest
- 2Compare loan and payment plan cost over the same period
- 3Lodge BAS on time; lenders check lodgement history
- 4Plan with your accountant to set aside future tax
What you’ll need
What you’ll need
- ABN and business registration
- Driver’s licence for each director or owner
- Recent business bank statements
- BAS or financials (full-doc loans)
- Current ATO statement or payment plan details
What lenders look for
- An active ABN (some lenders want 12 months+, others accept newer)
- GST registration for larger or low-doc deals
- Directors or owners with clear credit, or a good explanation
First chat to funds in four steps
How it works in detail →- 1Tell us what you’re after
- 2Meet your broker
- 3Compare and choose
- 4We handle the rest
Tax & ATO debt: common questions
Is it better to use a loan or an ATO payment plan?
It depends on the costs and your cash flow. ATO interest charges are no longer tax deductible from 1 July 2025, which can make a loan more competitive. Your broker will compare both.
Can I get finance if I’m on a payment plan?
Yes, many lenders will consider it, especially if your repayments have been kept up.
Will tax debt stop me getting other finance?
It can make some lenders cautious. Clearing or refinancing it can help your position.
Should I talk to my accountant?
Yes. We can work alongside your accountant to make sure the finance fits your tax position.
Can I get a loan to pay the ATO with bad credit?
Some specialist lenders will consider it, especially where the business is trading well or has security. The cost may be higher. It depends on the lender and the reasons behind the credit issues.
Does the ATO report tax debts to credit agencies?
In some circumstances the ATO can report larger overdue business tax debts to credit reporting bureaus. It usually gives notice first. Your accountant or the ATO can explain how this applies to you.
Where can I get free help with business tax debt?
The Small Business Debt Helpline on 1800 413 828 offers free, confidential financial counselling for small business owners. Your accountant and the ATO can also talk through payment options.
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