ATO Debt Refinance: Stop Penalties. Breathe Again in Days.
Last updated: 26 July 2025
By Michael Pajar, Director & Business Finance Broker, Casey Asset Finance
Banks say no. The ATO’s pressing. We turn tax debt into one fixed repayment—fast, if it’s right for you.
Book a 15-min call →
Text “ATO help” to 0450 622 115
Good business, but tax debt is chewing cash flow and headspace? We structure a finance solution (when it makes sense) and guide you through the rest—so you can focus on running the business, not dodging ATO letters.
Need help right now? Talk to Michael – 15-minute no-judgement chat.
Why you’re here (and what you actually want)
The ATO is escalating (payment plan rejected, reminders piling up, threat of DPN).
Banks won’t touch tax debt (true for majority of cases).
You don’t want insolvency advice as a first step—you want control and breathing room.
You’re willing to pay for a solution if it genuinely removes the distraction and stops the bleeding.
Sound right? Let’s fix it properly.
What “ATO debt refinance” really means
You take the unpredictable, compounding ATO balance and move it into a structured facility (unsecured business loan, short-term asset/caveat loan, or working capital line). One predictable repayment. No more ATO penalties building in the background.
Important: It’s not for everyone. If lodgements are missing or the business is already insolvent, a loan can make things worse. We’ll tell you that up front.
Your real options (finance and non-finance)—pros & consequences
1. Negotiate/extend an ATO payment plan
Pro: Lowest cost. Keeps everything with the ATO.
Con: They can cancel it if you miss a step. Interest still accrues. Doesn’t fix cash flow dips.
Risk: Director Penalty Notice (DPN) exposure remains if you fall behind again.
2. Refinance with a business lender (what we do)
Pro: Stops ATO pressure immediately; clear repayment schedule; protects supply lines and reputation.
Con: Interest cost. Needs servicing evidence (or asset security).
Risk: Choose the wrong lender/terms and you’re stuck in an expensive short-term loop.
3. Small Business Restructure (SBR) / Insolvency pathways
Pro: Can reduce debt, freeze interest/penalties.
Con: Formal process; public record; impacts credit/trust.
Risk: Wrong move if you actually had the capacity to trade out with smart finance.
4. Asset sales / shareholder injections / cost cuts
Pro: No finance cost.
Con: Slower, distracts ops, sometimes “too little, too late”.
Bottom line: Speak with your accountant to confirm the tax and compliance angle. Then, if a loan stacks up, we handle the lender side.
When a refinance loan is usually a good fit
Debt is $30k–$1m (higher loans often require property/security).
BAS/IAS are lodged (or can be within days).
Business is trading profitably (or has clear upcoming contracts/pipeline).
You can show bank statements that support repayments.
You want the ATO gone so you can focus on growth (not just buy a month of quiet).
What lenders actually look at (no fluff)
ATO balance & age (how long overdue, any defaults lodged)
Lodgement status (are BAS/IAS/returns up to date)
Recent bank statements (revenue stability, existing repayments, dishonours)
Director & business credit files (any other defaults/judgments)
Exit/servicing story (where repayments will come from)
Security (if >$150k or weak servicing, they’ll want something upfront—equipment, property, or a caveat)
How we help (and why it’s different)
15-minute triage call – zero judgement, just facts.
Pre-flight checklist – we tell you exactly what lenders need (ATO portal screenshot, BAS lodged, bank statements, etc.).
Roadblocks – we discuss what factors about your situation will be typical concerns for the lenders.
Lender short-list – we pick the right business lenders (not a spray-and-pray approach) that genuinely fit your scenario.
Submission & workshop – we package the deal to answer credit questions before they’re asked.
Settle fast – many tax-debt deals are decisioned from a few days to a week once docs are ready.
Aftercare – we don’t disappear at settlement. If cash flow shifts, we can restructure again.
Available for you - we don’t move on to different roles and disappear. You’ll always get Michael.
What we’ll need from you (ASAP)
ATO Integrated Client Account (ICA) document showing 1-year balances
ATO Payment Plan Schedule if you’ve already made a payment plan.
BAS lodged and up-to-date (lenders don’t like surprises)
6–12 months business bank statements (via secure link)
FY24 & FY25 accountant-prepared financials (not always mandatory for low-doc)
Pipeline/contracts evidence (not required but helpful to support your capacity to repay)
Hit reply or book a call and we’ll send you a one-line checklist you can forward to your bookkeeper.
Cost of doing nothing (Use this as a quick-check)
Late payment interest currently ~11% p.a. (varies; check with ATO).
Penalties compound, and stress bleeds productivity.
A cancelled payment plan or DPN can pierce the corporate veil and hit you personally.
Suppliers, landlords, and key partners get spooked as ATO arrears can be clear signs of financial distress.
Simple cashflow example:
ATO overdue balance ≈ $100,000
ATO payment plan ≈ 24 months
Repayment not including interest ≈ $4,166/month
Refinance facility over 5 years = ~$2,486/month.
You stop a $1,680/month leak and remove the ATO threat. (Illustrative only—yours will differ.)
Some lenders also allow you to payout the loan with no exit fee, just the principle balance.
FAQs
Can banks refinance ATO tax debt?
Generally, no. Traditional banks view overdue tax as a red flag and require it cleared before approval.
Will a loan hurt my credit?
Handled properly, no. Missing ATO obligations usually hurts more, especially if they lodge a tax default on your credit file. We position the loan to protect your score.
How fast can it settle?
Typically a few days to a week once we have complete docs, lender dependent. The faster you send documents, the faster the solution.
What if my BAS isn’t lodged?
Lenders hate unknowns. Lodge first—or we pause the loan until that’s done. If your BAS is up to date, we can help.
Is there a cheaper way than a loan?
Sometimes. That’s why we suggest you speak to your accountant about ATO payment plans or SBR before you sign anything.
Professional disclaimer: The information above is general in nature and does not take into account your personal or business circumstances. We’re finance brokers—not accountants or tax advisers. Always speak with your accountant or a qualified tax professional before choosing a debt or restructure option.
Ready to stop the ATO noise?
Book a quick call (15 minutes, no charge, no pressure)
Or just text “ATO help” to 0450 622 115 and I’ll send the checklist
Hope to help you get on top of this soon.
Michael
