Refinance Your ATO Debt
Into A Business Loan

Move the debt off the ATO's books, replace a short payment plan with a longer-term business facility, and claim the loan interest at tax time. Free 60-second quiz.

The problem

ATO piles interest on interest

The solution

Business loan pays the ATO

The win

Interest is tax-deductible

Step 1 of 10

Ready to refinance?

Answer a few quick questions and we'll connect you with a lender that handles ATO debt.

How much funding do you need?

Funding from $10,000 up to $1,000,000. Slide to your amount or type it in.

Amount needed $50,000

$ AUD

$10K $500K $1M

What's your average monthly revenue?

A rough estimate is fine.

How long has your business been trading?

Most of our lender partners need at least 6 months of trading history.

Find your business

Search by business or trading name. We'll auto-fill your ABN from the Australian Business Register.

Business name

Are You A Property Owner?

Property ownership unlocks more lender options and typically better rates.

Where's your business located?

Some lenders are state-specific. This helps us connect you with a funding partner in your state.

State / Territory

Your contact details

We'll use these to send you your funding options. Never to spam you.

First name

Last name

What's your mobile number?

We'll text you a 6-digit code to verify it's really you.

Mobile number

Australian mobile only (starts with 04).

Enter your verification code

We've sent a 6-digit code to your mobile.

Didn't get it? Resend code

Thank You

You're matched with a lender

Based on your responses, your business pre-qualifies for a range of business loan options.

A specialist will call you within business hours to walk through your funding options.

Not the right time, yet.

Based on your answers, we can't connect you with a funding partner right now.

Your data is safe & secure No credit score impact

No Credit Check To Get Connected No Credit Check 100% Free To Use 100% Free Quick 60-Second Quiz 60-Second Quiz

How refinancing ATO debt actually works.

Four steps. Most business owners are surprised how straightforward it is once someone lays it out clearly.

Complete the 60-second quiz

Tell us about your ATO debt, revenue and how long you've been trading. Business Loans Connect does not conduct a credit check.

Get connected with a funding partner

If you meet our initial criteria, we'll introduce you to a participating business finance broker or lender that considers ATO debt enquiries.

Your funding partner assesses your enquiry

Your funding partner will assess your circumstances and available finance options. If approved, the funds can be used to clear your outstanding ATO balance.

Repay the new finance facility

If you proceed, you'll repay the new finance facility under the provider's agreed terms. Interest may be tax deductible where the relevant tax requirements are satisfied. Speak with your accountant or tax adviser about your circumstances.

Real ATO debt refinances we've helped with.

Two recent examples settled by our funding partners. Different industries, different sizes, same angle: a 9-month ATO payment plan refinanced into a longer-term business facility.

Hospitality · NSW

Restaurant

$200K

ATO Debt Refinance

Approved

1 day

Settled

3 days

Term

18 months

From a 9-month ATO plan to an 18-month business facility.

Monthly repayment

$17K → $9K

An established 5-10 year restaurant had accumulated tax debt and was on a 9-month ATO payment plan that was strangling cashflow.

The funding partner refinanced the balance into an 18-month business facility secured by property. The business stayed ATO compliant and freed up thousands of dollars a month to put back into operations.

Trades · WA

Mechanic

$50K

ATO Debt Refinance

Approved

2 days

Settled

4 days

Term

5 years

Capital raised against an unencumbered vehicle, stretched to 5 years.

Monthly repayment

$5K → $1K

A sole-operator mechanic trading 10+ years was on a 9-month ATO payment plan that didn't fit their cashflow pattern.

The funding partner raised capital against an unencumbered vehicle (Buy/Sell) and structured the new loan over 5 years. $50K was released to clear the ATO balance and the monthly repayment dropped by 80%.

Why refinancing ATO debt may be worth exploring.

ATO debt creates two cashflow problems: general interest keeps accruing on the balance, and ATO payment plans are typically short. Refinancing moves the balance into a structured business facility with a longer term and a lower monthly repayment.

ATO payment plan

~9 months typical.

Short term, high monthly cost

ATO payment plans are typically short term. For a sizable balance, that's a punishing monthly repayment. Meanwhile, general interest keeps accruing on the balance. GIC incurred on or after 1 July 2025 is no longer tax deductible.

Business finance facility

18 months to 5 years.

Longer term, lower monthly

Refinancing may allow an eligible business to replace ATO debt with a longer-term business finance facility. Spreading the balance over more months can reduce the monthly repayment and free up cashflow. Interest rates, fees, repayment terms and eligibility vary between providers.

When comparing your options, consider the interest rate, fees, loan term, repayment structure and tax treatment. Interest on business borrowing may be tax deductible depending on how the borrowed funds are used and your circumstances.

Example · How ATO debt refinancing can work

How refinancing $400K of ATO debt could work in practice.

The following is an illustrative example to show how ATO debt refinancing works, not a specific customer case.

Consider a growing business sitting on around $400,000 of ATO debt built up over years. Trading kept going, so the debt kept getting pushed down the priority list. Eventually the accruing interest and the ATO notices reached the point where it needed a proper solution.

Step one is often the standard move: an ATO payment plan. That works for the ATO but can create a second problem. As long as the debt sits on the business's record, applying for other finance can be more difficult.

A different path is a business finance facility that refinances the ATO debt into a single structured facility. If approved and drawn down, the funds can be used to clear the outstanding ATO balance. From that point the debt sits with a business finance provider on structured terms, not with the ATO.

The tax treatment can also change. Interest on business borrowing may be tax deductible depending on how the borrowed funds are used and the business's circumstances. Any tax questions should be discussed with a qualified accountant or tax adviser.

Could clear outstanding ATO balance

Debt restructured under business finance

Interest may be tax deductible (subject to advice)

Different ways to manage ATO debt.

Depending on your circumstances, options can include paying down the debt, arranging an ATO payment plan, or exploring external business finance.

Pay down the ATO debt

Direct repayments to the ATO reduce the balance over time.

Reduces the outstanding balance
Reduces future GIC as the balance falls
Doesn't require taking on new finance

ATO payment plan

A structured repayment arrangement with the ATO.

Allows eligible businesses to repay over time
GIC generally continues to accrue on the outstanding balance
Terms depend on your arrangement with the ATO

Explore refinancing

A business finance facility used to replace ATO debt with separate finance.

May allow the ATO balance to be paid out
Replaces the ATO debt with a separate finance facility
Rates, fees and repayment terms depend on the provider
Interest may be tax deductible depending on use of funds and your circumstances

Refinancing isn't necessarily suitable for every business. Consider the total cost and terms of the finance and seek appropriate professional advice where needed.

Who's behind Business Loans Connect

Built by business owners, for business owners.

We built Business Loans Connect to make it easier for Australian businesses to connect with specialist business finance providers.

If you're dealing with ATO debt, our role is simple: tell us a little about your business and, if you meet our initial criteria, we'll introduce you to a participating funding partner who can assess your enquiry.

ATO debt refinance, common questions

The specific questions business owners in this position tend to ask before they start the quiz.

Will refinancing hurt my relationship with the ATO?

If refinancing is approved and the ATO balance is paid in full, that outstanding balance is cleared. Your ongoing tax obligations and dealings with the ATO continue as normal. For advice about your particular ATO position, speak with your accountant, tax adviser or the ATO.

I've already got a payment plan. Can I still refinance?

Potentially. ATO payment plans are typically short term, often around 9 months, which can mean a punishing monthly repayment on a sizable balance. Some business finance providers consider applications from businesses with existing ATO payment plans and may be able to structure a longer-term facility with a lower monthly repayment. Eligibility, rates and terms depend on the provider's assessment and your circumstances.

Is the interest actually tax deductible?

Interest on business borrowing may be deductible where the borrowed funds are used for an income-producing business purpose and the relevant tax requirements are satisfied. Tax treatment depends on your circumstances, so speak with your accountant or tax adviser before relying on a deduction.

How fast can the ATO actually be paid?

Timing depends on the funding provider, your application and the information required to assess it. If finance is approved and settles, payment of the ATO balance can then be arranged. Your funding partner can explain the expected timeframe.

What if I'm behind on BAS lodgements too?

Outstanding lodgements may affect a funding provider's assessment. Your funding partner can explain what information or documents they require. You may also wish to speak with your accountant about bringing outstanding lodgements up to date.

Will taking a business loan affect my credit score?

Business Loans Connect does not conduct a credit check when you complete our quiz. A broker or lender may conduct credit checks as part of their own assessment or application process. Ask your funding partner about their credit-check process before proceeding.

Is Business Loans Connect free?

There is no fee charged by Business Loans Connect to complete our quiz or receive an introduction. Business Loans Connect may receive a referral fee or commission from participating funding partners for introductions made through our service.

Ready to explore refinancing your ATO debt?

Take our 60-second quiz to see if you qualify to be connected with a specialist funding partner. No credit check by Business Loans Connect.

See If You Qualify

Business Loans Connect is a business funding introduction and referral service operated by Square Digital Pty Ltd (ABN 34 608 413 609) trading as Business Loans Connect AU.

Business Loans Connect helps connect Australian businesses with lenders, brokers, and funding providers based on the information submitted through this website. We are not a lender, credit provider, or financial adviser and do not provide personal or general financial advice.

Any funding products or services displayed or referred through this website are provided by third-party lenders or providers and are subject to their own eligibility criteria, approval processes, terms, and conditions. We may receive referral fees or commissions from third-party providers for introductions made through this website.

While we aim to introduce businesses to a broad range of funding partners, we do not work with every lender, broker, or provider in the market. In some circumstances, your enquiry may only be suitable for a limited number of providers based on your business requirements or eligibility.

By submitting your details through this website, you consent to being contacted by Business Loans Connect, Square Digital Pty Ltd, and relevant third-party providers via phone, email, and SMS regarding your enquiry and related funding solutions.

Refinance Your ATO DebtInto A Business Loan