Ato Debt Refinancing

Better Loan Solutions in Mornington Peninsula • Services

ATO Debt Refinancing

Struggling with ATO debt? You’re not alone and there may be options.

From 1 July 2025, the ATO has confirmed that interest charges on overdue tax debts will no longer be tax deductible. This change could make it more expensive for individuals and businesses carrying tax debt, especially as ATO interest rates remain relatively high.

At the same time, many people find that traditional banks aren’t willing to lend when ATO debt is involved.

That’s where we may be able to assist.

Can you get a loan when you have ATO Debt?

It depends on your individual circumstances, but yes - in many cases, we’ve been able to help clients access lending even when they’ve been declined by traditional banks. We work with specialist lenders who understand tax debt and are open to alternative solutions.

Will refinancing ATO debt save you money?

Potentially. ATO interest rates are generally higher than standard loan rates, so refinancing can lead to lower interest costs over time. Plus, if the new loan is used for business or investment purposes, it may still be tax deductible (unlike ATO interest from 1 July 2025). We'll help you weigh up the pros and cons.

Why banks are less likely to approved lending to businesses with ATO debt

ATO debt can be a red flag for traditional lenders because it suggests the borrower may be under financial stress or behind on obligations. Banks often see it as a sign that cashflow is tight, and because ATO debts aren’t secured against an asset (like a mortgage is), they’re viewed as higher risk.

In some cases, banks will require the ATO debt to be fully paid before approving any new lending - which can leave people stuck.

That’s why we work with lenders who understand the full picture and are open to more flexible solutions, especially for business owners or individuals with assets but short-term cashflow issues.

What We Can Help With

We work with clients in exactly this situation - where the tax bill is growing, repayments feel tight, and mainstream lenders aren’t an option. While not every case is straightforward, we look at the full picture to see what might be possible.

In many cases, we can explore:

Refinancing your ATO debt using available equity (e.g. in a home or business loan)
Accessing more manageable loan terms to ease short-term cashflow
Restructuring debt in a way that aligns better with your business or financial goals

Importantly, when structured correctly, the new lending may still be deductible if used for business or investment purposes — unlike the ATO interest moving forward.

Why ATO Debt Refinancing isn't a quick fix

We’re not offering a quick fix or a guarantee. But we are offering a professional conversation about your options — with people who understand tax debt, the ATO, and the practical realities of running a business or managing personal finances.

If you’re carrying ATO debt and unsure what to do next, let’s have a no-pressure chat. We’ll look at your current situation and let you know what’s possible - and just as importantly, what’s not.

It’s about helping you take back control and make informed financial decisions, one step at a time.

ATO Debt in the way of business growth?

Let’s have a confidential chat about your options - no pressure, just practical advice.

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