Tackle Your ATO Debt Before the Rules Change
If your business owes money to the ATO, now is the time to take action. From 1 July 2025, you will no longer be able to claim a tax deduction on the interest charged for unpaid tax debts. This is a significant change that could increase your costs if you do not plan ahead.
Why This Matters
(ATO interest rates are already high, currently (June 2025) sitting at 11.17 %, with a peak of 11.42 % earlier this year. If left unpaid, this kind of debt can:
- Strain your cash flow
- Limit financial flexibility
- Add pressure as you approach EOFY
From July 2025, that interest becomes even more costly, because you will no longer be able to deduct it.
A Smarter Way to Manage Tax Debt
Our finance arm can help you assess how this change affects your position and explore a more strategic way to manage your ATO debt.
By refinancing through a commercial facility, you can:
- Pay out the ATO before deductibility ends
- Move to a loan structure where the interest remains tax deductible
- Free up working capital
- Reduce the overall cost of managing your tax obligations
Unlike ATO interest charges from 1 July 2025, interest on a business loan used to repay tax debt will still be tax deductible, as long as the loan is used for business purposes.
Get Ahead of the Change
Whether you are ready to pay down your tax debt or want to explore funding options that better suit your cash flow, we are here to help you find the right solution.
General Advice Disclaimer: This article provides general information only. It does not consider your personal circumstances and should not be relied on as taxation or financial advice.
