Tax debt questions, answered straight

Often, yes. Property-secured business loans run from $20,000 to $5,000,000 (first mortgages, second mortgages and caveat loans). Unsecured options for trading businesses typically run from $5,000 to $500,000, sized on turnover and bank statements. Lenders look at viability, security or serviceability, lodgements and how the loan will be repaid.

Where it's arranged at settlement, funds can be paid straight to the ATO using the payment reference number for each account, with any balance going to the business. We confirm the arrangement before settlement rather than assuming it.

Yes, it's often possible. ATO debt and past credit issues are considered case by case. Property security makes the biggest difference. Be upfront about your history — it speeds things up.

It depends. Compare the estimated GIC on the plan (using the ATO's current published rate) with the total cost of a written loan quote, then consider tax treatment, director penalties and default risk. Small debts, or debts that qualify for the interest-free plan, often suit the ATO option.

For property-secured loans, funding is possible in as little as 24 hours once the lender has everything it needs. Valuations, documents and existing-lender consent usually decide the real timeline.

It may be, where the borrowing is connected to the business's income-earning activities, but it depends on who borrows and how. Ask your accountant before you sign.

The ATO says you may be able to set up a payment plan online if the debt is under $200,000. For larger debts you'll need to contact the ATO directly.

Yes. Common reasons include outstanding lodgements, instalments too small to clear the debt in a reasonable time, previous defaults, or concerns about viability.

Missing an instalment, not acting on an arrears letter or not paying new tax on time can cause a default. The whole overdue balance then becomes immediately payable and the ATO may take firmer action.

Yes, for activity statement debt where turnover is under $2 million, the debt is $50,000 or less and overdue no more than 12 months, lodgements are current, there's been no more than one default in 12 months, the business can't obtain finance through normal channels, and it can show it's viable.

Not for GIC incurred on or after 1 July 2025, even where the debt relates to an earlier year. GIC incurred before then remains deductible.

Yes. The ATO may remit GIC where there are extenuating circumstances. Use the ATO's GIC remission application form, include every circumstance you want considered, and attach evidence.

Companies, trusts and partnerships can't apply for release from tax debt. Even for individuals, GST, PAYG withholding, super guarantee charge and director penalties can't be released.

The ATO will stop accepting credit cards after 30 November 2026. If a payment plan uses a credit card, update the payment method before your next instalment after that date.

The ATO typically escalates from reminders and warning letters to an external collection agency, then firmer action — garnishee notices, director penalty notices, credit reporting — and finally legal action such as statutory demands, wind-up or bankruptcy. It can act at any time after the due date.

Through a garnishee notice, the ATO can require your bank, customers or merchant facility provider to pay money they hold or owe you directly to the ATO. It may withdraw or vary the notice if you make suitable payment arrangements.

Not directly, but a home can be at risk through bankruptcy (for individuals) or if a director becomes personally liable through a director penalty and doesn't pay. Acting early, paying or arranging the debt protects your position. Never transfer assets to avoid creditors.

Business tax debt of $100,000 or more overdue by more than 90 days can be disclosed if you're not effectively engaging with the ATO, after a 28-day warning. It's removed once the debt is paid in full or effectively managed.

You have 21 days to pay the whole debt or enter a payment plan with the ATO. If not, the company is presumed insolvent, which supports a wind-up application. Act immediately and get legal advice if the debt is disputed.

There may still be an opportunity before the hearing to pay or reach an agreed outcome, but your lawyer must manage this with the ATO and the court. Call a lawyer today.

It makes directors personally liable for the company's unpaid PAYG withholding, GST and super guarantee charge. You have 21 days from the date the ATO posts it to your ASIC-registered address to cause one of the remitting outcomes.

If GST or PAYG withholding was reported more than three months late, or not at all, the penalty can only be remitted by paying in full. Liquidation, administration and small business restructuring don't remove it.

You have 30 days from appointment to ensure the company pays, appoints an administrator or restructuring practitioner, or begins winding up. If none happens, you can become liable for director penalties on earlier amounts.

Super must now reach employees' funds within 7 business days after each payday. If it doesn't, the ATO assesses a super guarantee charge, payable on the day of assessment.

The SG charge includes the shortfall, notional earnings, an administrative uplift starting at 60% and any choice loading. Voluntary disclosure can reduce the uplift. Unpaid SG charge is covered by director penalties.

SBR lets an eligible company (liabilities not over $1 million) propose a plan to pay creditors part of what they're owed while directors keep control. Appointing a practitioner within 21 days remits a standard DPN, but a successful SBR won't remit a lockdown penalty.

ASIC found median practitioner fees of around $16,000 for the SBR restructuring stage (plan fees extra) and average liquidator fees of around $18,000 for smaller voluntary liquidations. Any adviser or referral fees are on top.

It's a broad label for advisers who help struggling businesses before any formal appointment. ASIC says the pre-insolvency industry is unregulated and advisers have varying qualifications and experience.

Be careful. The ATO lists contact after a creditor has taken court action as a red flag. Check registration on the ASIC or TPB registers, ask how fees are calculated, and get advice in writing.

Search ASIC's professional registers for registered liquidators, and the Tax Practitioners Board's public register for tax agents. Anyone negotiating with the ATO for a fee must be a registered tax agent.

No. We're a business funder. We don't put companies into liquidation or administration, we don't sell restructures, and we never charge a fee based on a percentage of your tax debt. If funding isn't right, we'll point you to free help or a registered professional.