Problems obtaining Tax Debt Loans or a Tax Office Payment Arrangement?

Tax Debt Loans can help when you are struggling to pay an ATO Debt or meet a payment arrangement. Regardless, you may not have the money to pay your outstanding ato debt. In the same way, you may not have the cash flow to pay your ATO obligations + an ato payment plan. Consequently:

  1. Firstly, you can't pay your taxes because you don't have enough money. 
  2. Secondly, your income isn't sufficient for a payment plan and to cover your other expenses.
  3. Thirdly, you have failed a payment plan or the Australian taxation office wants the full payment of your ATO debt.
  4. Finally, are now searching for loans to pay back taxes.

Indeed, there is a variety of finance solutions available. Consequently, both unsecured finance and secured finance using a home loan are available when you owe ato money.

Tax Debt Finance Comparison Chart

Tax debt finance solutions are available in several different forms. However, each debt solution has its pros and cons suited to particular circumstances. 

Loan Type Traditional Term Loans Caveat Loans Unsecured Business Loans
Loan Amount Max $2.1M Per security $10k - $1M Up to $300,000
Loan Term Up to 30 years 3- 24 months 1 - 36 months
Security Required Residential or Commercial Residential or Commercial No
Bad Credit Yes Yes Minor
Low Doc Yes No Doc Yes
Read more information on tax debt loan solutions. Information on Caveat Loans Information on Unsecured Business Loans

In general, businesses only need more time to get them back on track. However, time may be against you, and you need a fast solution for overdue tax bill.

On the positive side, Loan Saver provides fast Tax Debt advice and ATO Debt Loans that offer businesses relief. After all, running a business while managing problems with an outstanding tax obligation can be difficult. However, debt advice is available to improve your financial situation & cash flow issues by paying your debt.

All you need is help to get your tax debt consolidated and move forward.


Is it puzzling how to get approved for ato tax debt loans

Has your ATO Debt Consolidation Loan been Declined?

Conventional banks cannot lend for ato debt purposes and as such won't approve finance to resolve ATO problems. Nevertheless, We have lenders who can give money for ATO problems. 
Loan Saver Network advisors specialise in approving loans for outstanding tax bills. Given that, we consistently obtain loan approvals for previously declined ATO debt loans,

Is your tax debt payment plan payment too high

Do you have a Problem ATO Payment Plan?

The ATO can cancel an ato payment plan arrangement even if payments are made by the due date. In effect, a cancellation can happen if you don't meet other responsibilities like lodging your Bas or any other ATO obligation. Hence, a cancelled ATO payment plan puts you at risk of legal action or bankruptcy. Therefore, reduce your risk and consolidate your ATO debt with a choice of tax debt loans. 

Are you worried about your tax debt causing a bankruptcy

Has the ATO Threatened Bankruptcy?

The ATO debt recovery can be heavy-handed. In brief, using Court Judgements and Bankruptcy to force the sale of assets to recover money. For this reason, refinancing taxes owed could save you from an ATO Bankruptcy or Liquidation.

Has the ATO threatened to wind up your business and you need tax debt help

Has the ATO Threatened to Wind Up Your Business?

The ATO can wind up your business with a forced liquidation. Therefore, in the process of collecting unpaid business taxes, the ATO can remove a business from trading. Subsequently, we have successfully obtained finance and kept business trading even with pending wind-up orders or court proceedings.

Pay your Tax Debt Fast with Loan Saver Network

If you are wondering why do i owe the ATO money or have an overdue ATO debt? In most cases you have an income however have underestimated your tax bill.  Certainly, you cannot incur an ATO tax debt without making a turnover or a profit. Therefore, in most cases, there is a debt solution available to fix your ATO issue.

Small business owners need to manage many different tax obligations. Consequently, the day to day management of the requirements can quickly create a tax office ATO debt. Indeed, ATO issues arise most from confusion with business obligations. Consequently, the first time you realise you have a tax bill may be when you have lodged your tax return.

Tax Debt Video – The Benefits Of Consolidating Loans To Solve ATO Debts

Business Tax Obligations that can cause Problems

  • Firstly, prepare and lodge BAS activity statements each quarter or as advised by your accountant.
  • Secondly, falling behind on your company PAYG income tax obligations. Therefore, this includes your employee tax contributions.
  • Thirdly, company income tax obligations (not for sole traders). Indeed, you know this figure only once you complete your company tax return.
  • Also, being behind on your employees' superannuation.
  • Indeed, behind on your income tax obligations. Consequently, in most cases, you won't know this amount until you complete your tax return.
  • Certainly, understanding the deadlines for income tax, GST, superannuation lodgements, and payments.
  • Finally, please ensure the tax owed is not just for one specific financial year. Therefore, you should try to understand the tax amount owed up to the current year. Certainly, then you will know what loans for a tax bill are required.

With the many tax liabilities listed above, it is easy to make a mistake. Nevertheless, Loan Saver Network can assist and advise on the fast ATO debt loans available to you. Certainly, debt consolidation of your tax bill can reduce your overall debt payments. Indeed, in most cases, your loan can be tax deductible.

Read further information below on Australian Taxation Office FAQs for ATO Debt Loans.

Let's talk about a debt solution that suits you.

  • This field is for validation purposes and should be left unchanged.

FAQs for Tax Debt & ATO Debt Loans

Find answers to our top call centre questions.

c Expand All C Collapse All

Tax Debt FAQs

As of September 2023, the tax debt owed to the Australian Taxation Office (ATO) stands at approximately $50.2 billion. However, small business collectible tax debt accounts for approximatley $33 billion of that total. Notably, the ATO’s collectible debt has increased from $12 billion in the 2019/2020 year. This growth in debt owed to the ATO can be attributed to two significant factors:

  1. Businesses Falling Behind During COVID Lockdowns: Many businesses faced financial challenges during pandemic-related lockdowns, impacting their ability to meet tax commitments.
  2. ATO’s Temporary Hold on Tax Collection Activities: In response to the pandemic, the ATO temporarily suspended some tax collection activities, which contributed to the accumulation of debt.


Generally, no. The Australian Taxation Office (ATO) typically applies any refunds directly to your tax account to offset the outstanding tax debt balance.

The ATO guidelines for releasing tax debt are related to the type of tax debt and your situation. As such, in certain cases, you may be able to be released from the tax debt however you need to show serious hardship if you were to pay the tax debt. However, the term serious hardship is a grey area without clear guidelines.

We have seen cases where clients are released entirely from tax debt, though it is infrequent. As a result, the most common result is a remission of the penalties and the general interest charge (GIC). However, the ATO will want to assess all financials and BAS lodgment up to the current date to allow them to understand your full tax obligation.

Types of tax debt eligible for release

  • Initially, personal income tax.
  • Also, PAYG income instalments.
  • Medicare Levy.
  • Finally, general interest and penalties associated with the tax debts.

To apply for a release of your debt as a result of tax debt hardship see the ATO application for release of tax debt.

Types of tax debt not eligible to be released

  • GST
  • Superannuation Guarantee Charge for employees
  • Also, PAYG withholding tax for employees

In most cases, there is a mix of tax debts payable that can and cannot be released. As such, in most cases, you would require a mix of either release of tax debt, ato payment plans, or help with tax debt loans to pay out the tax debt entirely.

Contact us or seek professional advice to discuss your tax debt hardship finance options.

Tax Debt Negotiation can give you a tremendous financial advantage. However, there are a few conditions the ATO requires before approving any tax debt reduction.

  1. The ATO requires all of your Bas lodged and financials up to date. Indeed, the ATO wants to understand the full tax debt obligation due. For that reason, the ATO will want to know the entire tax obligation, including interest and penalties to the account.
  2. Consequently, this may not be practicable as there may be a pending business wind up, bankruptcy, or court case for the debt. Furthermore, it is essential to disclose any court matters or wind up to us. As such, this can assist us in determining if a tax debt negotiation is the best solution for you.
  3. Finally, tax debt is not usually fully waived. However, we have seen certain cases where it has been waived entirely. Consequently, waiving a debt has to meet very specific hardship and debt waiver policies.

ATO payment plans and negotiations are suitable when you have time and not when you are experiencing a severe tax debt hardship issues and pending insolvency action.

Navigating the ATO financial hardship policies is complex. Therefore, to gain hardship approval you will need sufficient supporting evidence for ATO approval. Furthermore, successful tax debt hardship applications can take anywhere from 14-60 days to be approved.

As a result; faster solutions such as caveat loans may be required to prevent legal action. However, if speed is not a critical factor; and you have time before legal proceedings then applying for hardship may still be a preferable option.

Certainly, if there is little or no time, or you have received a legal letter; then finance to pay the tax debt may be a more suitable solution.

Australian Tax Office Website: Policy guidelines for ATO Tax Debt Hardship

Yes the ATO can bankrupt individuals. However, businesses are wound up under an involuntary business wind up or liquidation. Certainly, someones financial situation can be investigated and understood under bankruptcy. Consequently, without a transparent disclosure of assets, it can be difficult to gain a full picture of the assets available to sell and pay a debt.

Therefore the bankruptcy trustee would have the power to seize assets allowed under the law. As a result, this includes freezing bank accounts and have the power to investigate your assets and what can be sold. In contrast, the ATO has no way of knowing if you are an individual with a large asset base hidden somewhere.

The ATO has several collection methods at their disposal for collection of ongoing and outstanding payments. As a result, you may encounter, or use the methods listed below.

ATO Automated Tax Collection

These methods are standard practices implemented by the ATO to simplify business compliance.

  • Single Touch Payroll
  • Equally, Electronic Lodgement of Superannuation (SGC)

Tax Debt Payment Plans

  • Firstly, Payment Plans can be established with the ATO. However, not all payment terms offered can be anywhere from 18 months to 2-years to clear the ATO debt. Therefore, achieving a suitable payment may not be possible with such short payment terms. Furthermore, click here for more information on ATO Payment Plans and the benefits and risks for your business.

Debt Collectors

The debt is sent off to one of several debt collection agencies to recover the debt.

Finally, the ATO can lodge a second mortgage to secure their debt. Consequently, a second mortgage would allow the ATO to force the sale of your property in the event of a default. Indeed, a second mortgage would avoid the need to employ and pay a bankruptcy trustee to collect on the tax debt.

How does the ATO Force Debt Collection?

When a business doesn’t fit into the payment plan requirements of the ATO, then other collection methods are used. However, along with these collection methods is usually the closure of your business. Therefore, a payment plan or finance option is almost always the best solution.

  • Firstly, Business Wind Up- the ATO can close your business because of a tax bill. As such, the ato can force a company liquidation to pay a tax debt.
  • Indeed, ATO Bankruptcy – a personal bankruptcy gives a bankruptcy trustee the power to sell your assets to pay your ATO debt.

Other Debt Collection methods

  • Not economical to pursue – The ATO can hide your debt from the portal view. Consequently, waiting until you gain an asset, they can sell. Similarly, you may become more profitable and garnish funds in your bank. For that reason, we feel the correct term would be “not economical to pursue now.

The ATO has several mandates under their taxation provisions. As a result, if you don’t pay tax or manage your obligations:

  • Firstly, the ATO sees your business as causing a non-competitive environment of trade and will close your business.
  • Secondly, closing or winding up your business moves the revenue to a competitor. As a result, taxes start coming in from that business.
  • Thirdly, the ATO removes your business it brings competition back into your market space. i.e. the new business charges appropriately for services with consideration to the tax payable.
  • Finally, the sale of assets using Business Liquidation and director bankruptcy forces the recovery of lost taxes.

Of course, selling your products and services is paramount to every business. However, meeting your tax obligations is critical. As a result, we have seen the most common cause of forced business wind up is tax debt. Therefore, applying for tax debt hardship at an early stage is essential.

Many businesses use the ATO as an unofficial overdraft facility. In effect, they are accruing tax debt by allocating tax payments to pay business expenses or fund growth. Therefore, paying the ATO obligation once the business is trading profitably. However, the ATO is implementing changes to recover funds more quickly, causing issues with these businesses.

The ATO has higher expectations regarding resolving tax debt and how to manage tax portal accounts. In summary, the Australian Taxation Office won’t allow a business to keep inflating tax debts. As such, they are implementing strategies for collection of tax when due.

In brief, if you cannot prove your ability to pay your tax obligations, the ATO will seek:

  • Indeed, full payment of the outstanding debt or;
  • Secondly, the closure of your business.
  • Finally, you may apply for financial hardship & debt relief. However, your application must meet ATO policy guidelines.

Yes, if your debt is under $100,000, it can be set up via automated phone prompts. Also, you can set up payment plans direct with the ATO or their debt collection company. We find, the payment plans are mostly between 12-18 months and do not (usually) exceed 24 months.

All ATO tax obligations such as BAS lodgements, financials, and superannuation obligations would need to be maintained; otherwise, the tax debt payment plans would be cancelled. If so, legal action would continue.

Applying for ato tax debt hardship with the ATO is quite an easy process. However, gaining an ATO hardship approval needs to fit within the ATO policies. Consequently, there are several ways to improve your chances of approval for Tax Debt Hardship:

  • Call the ATO to discuss hardship and that you are unable to meet your obligations. Indeed, the ATO will make decisions based on their ATO hardship guidelines. Keep in mind, you will need to fully cover your circumstances and show financial difficulty. Also, the ato would seek a payment plan to cover the full tax debt account when determining suitability.
  • Firstly, business closure.
  • Secondly, disconnection of an essential service.
  • Also, repossession of vehicle for business purpose. Imminent legal action pending for non-payment of debts.
  • There are hardship review limitations. Such as, you cannot be approved hardship a substantial time after an event. Such as, you suffered an illness, and you applied for tax debt hardship two years after. As such, apply for the hardship the same specific financial year.
  • Finally, You cannot access bank accounts because of court orders.

If you can’t pay your tax debt, there are several options:

  • Firstly, Tax debt hardship application which includes payment plans with the ATO directly. However, you may also negotiate reductions with your ATO tax debt or general interest charge.
  • Secondly, obtaining finance to pay your tax debt. As a result, this could include refinancing your home loan to consolidate your tax debt.
  • Thirdly, Unsecured lending.
  • Also available are 2nd mortgages and caveat loans.

There are several reasons a tax bill can occur, which we have found tend to fall into the categories below:

  • Firstly, misunderstanding of your tax obligations. We see this is mostly the case with small businesses where the business owner didn’t understand all the taxes needed to be paid. Such as, misunderstanding of personal income tax, business income tax, GST, PAYG instalments and superannuation owed.
  • Secondly, your business uses ATO payments for working capital.
  • Indeed, illness or death in the family.
  • Marital issues.
  • Accountant issues.
  • Bookkeeping issues.
  • Finally, reduced business cashflow causing problems.

We have lenders who can go up to 90% LVR against your security property. However, some factors affect the LVR, such as:

  • Firstly, the type of property and location; including the size of the land.
  • Secondly, property zoning, such as rural or farm zoning can attract lower LVR’s.
  • Thirdly, your credit history and if debts are paid or unpaid. Indeed, there are many other LVR affecting factors.

The LVR available is very important as the loan available against your property will determine if the tax bill can be fully paid. As a result, sufficient LVR and loan amount will enable the new loan to fully cover your circumstances.

The loan application process varies depending on the type of tax loan. However, here is an overview of the Loan Saver Network tax debt loans application process:

  1. Financial Assessment: We begin by discussing your financial situation and identifying suitable loan options. These options may include individual loans or a combination of business loans.
  2. Free Tax Loan Proposal: You’ll receive a free tax loan proposal, providing clarity on what you can achieve.
  3. Document Collection: We gather relevant documents related to your business, security property, tax debt, home loan, and other loan information.
  4. Loan Application Submission: Your loan application is submitted to the most competitive lender that aligns with your requirements.
  5. Documentation Completion: Once approved, we finalize the loan and mortgage documentation.
  6. Loan Settlement and ATO Payment: Following documentation completion, the loan settlement occurs, and payment is made to the Australian Taxation Office (ATO).

Remember that seeking professional advice and understanding the terms of your loan are important steps in managing your business and tax debt effectively. Contact Loan Saver Network on 1300 796 850 or Apply for Loan.

Borrowing to pay a tax debt is very much the same as traditional lending. However, there are some differences in policies because of the higher risk in loans for tax debt. As a result, the three main loan types suitable to pay for tax debt.

  1. Firstly, secured short term loans such as caveat loans and second mortgages.
  2. Long term loans similar to traditional finance.
  3. Unsecured Finance options, however, these can be very restrictive and unsuitable.

Caveat Loans

  • Requires Minimal income verification
  • Lower Loan Ratios
  • Higher fees
  • 24 hour – 2-week settlements.

Specialist tax debt home loans

  • Income verification and servicing requirements
  • However, there are low doc loan options available.
  • Also, credit issues are acceptable and reflect the pricing.

Loan Saver Network can assess the type of loans most suitable for your purpose.

Yes, several short-term lenders offer business tax debt loans. They are also other business loans such as invoice factoring, and trade finance designed to provide working capital while continuing to trade.

However, the various other business tax debt loans include:

  • Initially, caveat loans and second mortgages requiring real-estate security.
  • Also, caveat loans requiring vehicle security.
  • However, there are also invoice factoring facilities.
  • Plus, pay tax debt or obtain working capital by obtaining unsecured business cash flow loans.
  • Finally, supplier financing facilities.

We have helped many people obtain finance even when there is bad credit. Indeed, the various forms of bad credit include:

  1. Firstly, minor defaults such as telco, electricity and gas credit defaults with <$1000 value.
  2. Secondly, severe defaults such as defaults >$1000 value defaults.
  3. Thirdly, court judgements and writs such as from the Australian Tax Office.
  4. Finally, business wind-up orders such as creditor and ATO wind up proceedings.

However, specialist lenders do understand credit issues which means they don’t need to be a life long jail sentence.

Loan assessments use a diverse range of information. Mostly, information such as income, property equity, your type of property and your credit history. Consequently, lenders make approval decisions based on all this information, including your credit history. Hence, credit issues don’t immediately eliminate the chance of loan approval.

Traditional lender policy will not allow lending for tax debt purposes. However, there are private and specialised lenders able to assist.

  • Firstly, unpaid tax debt in the ato tax portal will prevent traditional bank approval. Consequently, banks actively look for ATO issues by confirming ATO Portal balances.
  • Secondly, a traditional lender will decline loans because of tax debt.
  • Finally, specialised finance such as a tax debt loan can pay a tax debt.


Tax Debt Help and Advice

At Loan Saver Network, we understand tax debt problems and what is needed to fix debt issues. Furthermore, we can assist with options you need to stay in business, protect your assets and provide tax debt relief. Indeed we can advise you of your rights and entitlements.

  • Firstly, regular banks, mortgage brokers, and accountants struggle with consolidating tax debt loans. 
  • However, we can assist you in avoiding government debt collectors. In particular, our ato debt loans can also provide relief to pay wages, GST, and other expenses.
  • Therefore, this can reduce your commitments and give you some temporary relief from your ongoing tax obligations. 
  • In summary, we provide loans to help with tax problems when ato tax debt hardship is declined.
  • Finally, for more details, go to the ATO website or ask the ATO for help regarding your tax debt.

Loan Saver Consultant discussing solutions with a business owner

Loan Saver Network advisors provide custom solutions for paying back overdue tax debt with business finance. Indeed, we advise on the latest tax debt loans with competitive interest rates. Hence, if you owe money to the ATO; call 1300 796 850 today for help with your ato debt strategy.