Pay overdue ATO liabilities
Address assessed business tax debt where a funding deadline or enforcement concern is present.
ATO debt finance · business purpose only
Property-secured funding may help an eligible business pay or refinance overdue ATO liabilities—when the numbers, cash flow and repayment exit support the move.
No obligation. Every scenario is assessed on its facts. Approval is not guaranteed.
What it is
An ATO tax debt loan is business-purpose finance used to pay or refinance eligible tax liabilities. The loan is commonly secured against available equity in residential, commercial, industrial, rural or development property.
Depending on the security position and exit, a lender may consider a first mortgage, second mortgage, caveat or broader commercial refinance. The objective is not simply to move the debt. It is to create a demonstrably stronger funding position.
When finance may fit
Finance may be considered when there is a clear amount required, a genuine business purpose and a realistic way to repay the facility.
Address assessed business tax debt where a funding deadline or enforcement concern is present.
Compare the remaining ATO arrangement with a defined finance term and exit.
Fund eligible business liabilities after the current balance and lodgment position are confirmed.
Consolidate ATO debt with other business-purpose debts where the overall structure improves.
Explore our business loan refinance and debt consolidation service to review the broader borrowing position.
Use short-term funding where a credible, time-bound sale is the primary repayment exit.
Stabilise the position while financials, trading performance or another refinance pathway develops.
Compare the pathways
Neither option is automatically better. Compare the full economic and commercial effect before changing course.
May preserve property security, but the outstanding debt continues to attract general interest charge.
May provide a defined payout and term, but introduces loan interest, fees and security enforcement risk.
ATO GIC and SIC incurred on or after 1 July 2025 are not tax deductible. Seek tax advice on your circumstances.
Possible structures
May suit a clear first-ranking position with sufficient equity and a defined purpose.
May avoid disturbing suitable senior debt, subject to consent, priority and lender policy.
May be considered where the legal interest, equity and exit support a caveat structure.
May combine ATO and other business-purpose liabilities into one commercial facility.
May create time for an asset sale, bank refinance or another clearly evidenced event.
May reorganise business debt where the new position is affordable and sustainable.
ATO debt decision matrix
The immediate deadline matters, but the new facility must also improve the complete position. Use this comparison to identify the evidence and exit that each pathway requires.
| ATO pressure point | Possible pathway | Security and ranking | Critical evidence | Required remedy or exit |
|---|---|---|---|---|
| Payment plan remains workableInstalments are current and the business can meet ongoing tax obligations. | Compare retaining the ATO arrangement with a property-secured refinance; finance is not automatically the better option. | Security may be unnecessary if the existing plan remains commercially sustainable. | Current ATO statement, plan terms, cash flow and future tax provisioning. | Keep the plan current, or refinance only where total cost and cash-flow resilience demonstrably improve. |
| Payment plan declined or in defaultThe ATO balance or enforcement risk requires a defined response. | First-mortgage business finance or a broader commercial refinance may be assessed. | Usually a clear first-ranking position over eligible property, subject to valuation and lender policy. | Verified payout, notices, lodgment status, property information, financial position and deadline. | Clear the nominated liability and repay through sustainable trading, refinance or an evidenced asset sale. |
| Urgent professional adviceDirector Penalty NoticeA statutory notice may create personal exposure and a time-critical legal position. | Finance is only one possible pathway and must not be assumed to pause or extend any deadline. | Any proposed security must be lawfully available; priority, ownership and existing debt require verification. | The notice, issue date, company lodgments and urgent independent legal, tax and insolvency advice. | A lawful, complete response within the applicable timeframe—not merely moving the debt to another facility. |
| Suitable first mortgage already in placeThe senior facility may be expensive or impractical to disturb. | Second-mortgage business finance may be considered case by case. | Junior ranking behind the existing lender; consent, priority and combined leverage are critical. | First-mortgage payout, facility terms, accepted value, available equity and lender consent position. | A defined short-term take-out, refinance, receivable or property sale before maturity. |
| Usable business equity availableThe liability can potentially be addressed without selling the property immediately. | Commercial equity release through an eligible first, second or other property-backed structure. | Assessed on property type, postcode, accepted value, existing debt and proposed ranking. | Valuation evidence, payout figures, ATO balance, business purpose and net-funds calculation. | Clear the liability while preserving enough cash flow and a credible route to full repayment. |
Important: A finance enquiry does not change ATO rights, statutory deadlines or enforcement action. Obtain independent legal, tax, accounting and insolvency advice where appropriate. Any finance remains subject to lender assessment, valuation, documentation and a credible repayment exit.
Usable equity
Lenders consider the property type and location, existing mortgage balance, proposed priority, total loan amount and their maximum acceptable leverage.
A valuation and payout figures may be required. Equity shown on paper is not always fully accessible once interest, establishment costs, legal fees and any retained amounts are included.
For a practical explanation, read our guide to using property equity to pay ATO debt.
Illustration only—not an offer or estimate of approval. Actual leverage and net proceeds vary by security, lender and scenario.
What lenders assess
Current balance, debt type, lodgments, payment arrangement, notices and deadlines.
Property value, location, type, ownership, existing debt and proposed priority.
Turnover, cash flow, liabilities, trading history and capacity to meet loan costs.
Genuine business use, tax compliance position and explanation of how the debt arose.
Funding deadline, valuation access, required consents and readiness of documents.
A credible sale, refinance, receivable, asset realisation or repayment from trading.
Assessment process
Confirm the ATO balance, amount required, deadline, property and intended exit.
Review values, ownership, existing facilities, priority and available equity.
Test relevant funding routes against costs, cash flow, conditions and timing.
Progress valuation, due diligence and documents; settlement funds pay the nominated liabilities.
Documents commonly requested
Not every document is required at first contact. Start with the current position; provide supporting material as the structure develops.
Current ATO statement of account and debt balance
Payment-plan terms and recent payment history
BAS, tax returns or management accounts
Business bank statements and turnover evidence
Property rates notice, valuation or agent appraisal
Mortgage statements and current payout figures
Company, trust and director identification details
Evidence supporting the proposed repayment exit
Risks, costs and exit
Property-backed finance can carry significant costs and risks. Obtain independent legal, tax and financial advice before proceeding.
Compare interest, establishment fees, valuation, legal costs, broker fees, default charges and discharge costs—not only the headline rate.
If the loan is not repaid in accordance with its terms, the lender may enforce against secured property.
Ensure payments and any capitalised interest fit the business plan while future tax obligations remain current.
The proposed property sale, refinance or business event must be credible, evidenced and achievable within the loan term.
Director Penalty Notices
A Director Penalty Notice can expose a director to personal liability for specified unpaid company PAYG withholding, GST and super guarantee charge amounts. The legal position and available responses depend on the notice, the company’s lodgment history and the facts.
The ATO states that recovery proceedings may begin after the statutory notice period. Do not assume a finance enquiry pauses or extends that period. Obtain urgent independent legal, insolvency and tax advice about the notice and available options.
Property-secured business finance may be explored where paying an eligible liability is lawful, sufficient security is available and the borrower has a credible repayment exit. It is not suitable for every DPN scenario and does not replace professional advice.
Related finance pathways
Explore relevant business-purpose options before deciding whether an ATO refinance is commercially supportable.
Short-term property-backed funding for eligible time-sensitive commercial scenarios.
Potential junior-mortgage funding behind existing senior debt, subject to equity, consent, priority and exit.
Case-by-case private finance assessed around property, purpose, evidence and exit.
Potential equity release for a documented commercial use, subject to lender criteria.
Business-purpose funding where a fixed property settlement deadline must be assessed.
Frequently asked questions
Confidential scenario assessment
Share the core facts. We can then identify whether a property-backed structure is worth exploring.
A direct point of contact
Share the ATO obligation, business position, property security, existing mortgages, amount required and sustainable repayment plan. Aaron will explain whether a direct-lending or facilitated business-finance pathway is worth assessing.
Important: General information only. This page does not provide tax, legal or financial advice and is not a credit approval or offer. Finance is for genuine business purposes and is subject to lender assessment, valuation, satisfactory due diligence, terms and conditions. Fees, charges and security requirements apply. Property may be at risk if obligations are not met. ATO information can change; confirm your position with the Australian Taxation Office and obtain independent professional advice.