A business loan to pay ATO debt, without the paperwork pile-up

At a glance

• A loan can clear overdue BAS, GST, PAYG withholding, income tax and super arrears in one go.
• Property owners can borrow $20,000 to $5 million with no tax returns or financials needed.
• Behind on lodgements? The property-secured route doesn't depend on them.
• No property? Unsecured loans are possible with an ABN and 6+ months of trading.
• Existing tax debt is considered case by case, not an automatic no.

Can I really get a business loan to pay ATO debt?

Yes, and it's one of the most common reasons business owners get in touch. Private and specialist lenders regularly fund loans whose whole job is to pay the tax office and wipe the slate clean.

Tax debt creeps up on good businesses all the time. A big customer pays late, a quarter's GST gets used to pay wages, a slow winter eats into the PAYG set aside. Before long there's a number on the ATO portal you'd rather not look at.

The simple fix is often one loan, one payment to the ATO and one repayment plan you control.

What kinds of tax debt can a loan cover?

Pretty much any business tax debt owed to the ATO. Here's a quick rundown.

Many owners have a mix of all five. You don't need to untangle it before enquiring. Just tell us roughly what's owed and we'll work out the right pathway.

Payment plan or clear it with a loan?

Both are legitimate options, and the right answer depends on your situation. Here's a simple way to think about it.

An ATO payment plan can suit you if:

• The debt is modest and you can realistically clear it in a few months
• Your cash flow can handle the instalments on top of new BAS as it falls due
• You're comfortable with the general interest charge ticking over on the balance, which is no longer tax-deductible

Clearing it with a loan can suit you if:

• The debt has grown too big to comfortably chip away at
• You've already had a payment plan that didn't stick
• You're a company director worried about personal liability for PAYG withholding, GST or super
• You'd rather deal with one lender and one plan than keep negotiating with the tax office
• You want the debt gone so it stops distracting you from running the business

A loan isn't automatically better. But when the debt starts making decisions for you, one clean payment can feel like getting your weekends back.

Which loan works best for tax debt?

For most tax debt, especially larger or messier amounts, the property-secured route is the easy one.

If you own property

A property-secured loan, as a first or second mortgage, is tailor-made for ATO clean-ups:

• No tax returns or financial statements required, so unlodged returns don't hold you up
• Tax debt and past credit issues are weighed case by case
• Your existing home loan can stay exactly where it is
• Loans from $20,000 to $5 million, so larger debts are covered too

You'll need photo ID, property details, your current mortgage info, the amount owed and a simple plan for repaying the loan.

If you don't own property

An unsecured cash-flow loan may work if you have an ABN, at least six months of trading and bank statements showing income that can support the repayments. Approval leans on those statements rather than full accounts. The loan size depends on your turnover, so it suits smaller tax bills more than large ones.

What does the exit plan look like for an ATO loan?

Since property-secured loans are short-term, lenders want a clear way out. For tax debt, the usual exits are:

1. Refinance once your books are tidy. Get lodgements up to date, then move to a longer-term lender.
2. Sell an asset. A property, a vehicle or a part of the business you no longer need.
3. A big payment on the way. A contract milestone, a debtor finally paying up or a seasonal peak.

Two or three sentences explaining yours is plenty.

Real-world style examples

These are illustrations to show how it works, not actual clients.

The electrician in Geelong. Two years of rapid growth meant GST and PAYG withholding slipped behind. His returns aren't lodged yet, so a bank won't touch him. He owns his home with plenty of equity. A second mortgage clears the lot, and he plans to refinance once his accountant catches up on lodgements.

The beauty salon in Canberra. She fell behind on staff super during a quiet stretch. No property, but she's been trading three years with healthy weekly takings. An unsecured loan assessed on her bank statements pays out the super arrears in one hit.

The civil contractor in Darwin. A large income tax bill landed right as a new project began. He holds a commercial yard with a small loan on it. A property-secured loan covers the tax, repaid when the project's first big progress claim comes in.

How easy is it to get started?

Easier than filing a BAS, that's for sure.

1. Complete the 60-second form. It's an enquiry, so no mark on your credit file.
2. A real person reviews it and calls or texts back with the likely pathway.
3. Share only the documents that pathway needs. Our business loan checklist shows exactly what those are.
4. Once approved, the funds go where they need to go.

As for cost, every loan is priced on your circumstances, and we go after the sharpest deal available for your situation.

Just pay it and move on

Tax debt is stressful, but it doesn't have to be complicated. One loan, one payment to the ATO, and you're back to running the business instead of dreading the mail.

FAQs