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 ato bill because you don't have enough money. 
  2. Secondly, your income isn't sufficient for a payment plan and to cover penalties and interest & other expenses. 
  3. Thirdly, you have failed a payment plan or the Australian taxation office wants the full payment of your ATO debt.
  4. Otherwise, the ATO has registered a credit default with credit reporting bureaus or Veda Advantage.
  5. Finally, are now searching for loans to help 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

Time-Sensitive Tax Debt Solutions

Generally, businesses only need more time to get back on track. However, time may be against you, and a fast solution for an overdue ATO bill is necessary.

On the positive side, Loan Saver provides fast tax debt advice and ATO debt loans that offer businesses relief. Running a business while managing problems with outstanding tax obligations can be difficult. However, debt advice is available to improve your financial situation and cash flow issues by paying your debt promptly.

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 often do not lend for ATO debt purposes, resulting in declined finance applications. However, we have lenders who specialise in providing funds for ATO issues.

Loan Saver Network advisors focus on approving loans for outstanding tax bills. Consequently, 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 a payment plan arrangement even if payments are made on time. If you fail to meet other responsibilities, such as lodging your BAS or other ATO obligations, cancellation can occur. Consequently, a cancelled ATO payment plan puts you at risk of legal action or bankruptcy. Therefore, reduce your risk and consolidate your ATO debt with our selection of tax debt loans.


Are you worried about your tax debt causing a bankruptcy

Has the ATO Threatened Bankruptcy?

The ATO debt recovery process can be heavy-handed, using court judgments and bankruptcy to force the sale of assets. Therefore, refinancing the taxes owed could save you from 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 through forced liquidation to collect unpaid taxes, effectively stopping your business from trading. However, we have successfully obtained finance to keep businesses operational, even with pending wind-up orders or court proceedings. Therefore, if you're facing such threats, our tailored financial solutions can help you avoid liquidation and continue trading.


Pay your Tax Debt Fast with Loan Saver Network

If you're wondering why you owe the ATO money or have an overdue ATO debt, it’s often because you have an income but underestimated your tax bill. As, you cannot incur an ATO tax debt without making a turnover or profit. Therefore, a debt solution is usually available to fix your ATO issue.

Small business owners need to manage various tax obligations. Consequently, daily mis-management can quickly create an unmanageable ATO debt. Indeed, ATO issues often arise from confusion about business obligations. Consequently, the first time you realise you have a tax bill may be when you lodge your tax return.

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

  • Warning: Be cautious of hidden tax accounts, such as Tax Portal accounts marked as "uneconomical to pursue." These accounts can be reinstated anytime if the ATO deems them economical to pursue.
     

Business Tax Obligations that can cause Problems

Managing tax debt and tax obligations can be challenging. Here are some common issues and how Loan Saver Network can assist:

Key Tax Obligations

1. BAS Activity Statements: Firstly, prepare and lodge BAS activity statements each quarter or as advised by your accountant or tax agent.

2. PAYG Income Tax: Secondly, falling behind on your company PAYG income tax obligations, including employee tax contributions, can be problematic. Therefore, staying current is essential.

3. Company Income Tax: Thirdly, company income tax obligations (not for sole traders) are known only once you complete your company tax return.

4. Superannuation: Additionally, being behind on your employees' superannuation is a critical issue to address.

5. Income Tax: Indeed, falling behind on your income tax obligations can cause severe problems. Consequently, even with quarterly lodgements, you often won't know the exact amount owed until you complete your tax return.

6. Understanding Deadlines: Furthermore, understanding the deadlines for income tax, GST, and superannuation lodgements and payments is crucial.

7. Outstanding Financial Years: Finally, ensure the tax owed includes all outstanding financial years. Therefore, understanding the tax amount owed for lodged and pending tax returns is vital. Consequently, this will ensure you apply for the correct loan amount to pay your entire tax bill.

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 discuss a debt solution that suits you.

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FAQs for Tax Debt & ATO Debt Loans

Find answers to our top call centre questions.
 

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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, ATO temporarily stopped collecting some taxes due to the pandemic, leading to a buildup of debt.

https://www.smh.com.au/money/tax/ato-urges-small-business-to-come-clean-on-30-billion-of-debt-20230608-p5df5g.html

 

Generally, no. The ATO usually puts refunds towards your tax account to reduce any money you owe in taxes.

 

 

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 eliminate your tax debt if you can show that paying it would cause serious hardship. 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 your Tax Returns & BAS submissions up to now to determine your complete tax liability.

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 may need to use different tax debt relief options to fully pay off your tax debt. As such, these options can include payment plans and loans. Also, combining these options can help you effectively manage and reduce your tax debt.

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. Certainly, waiving a debt has to meet intricate 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, the ATO can approve successful tax debt hardship applications in 14 to 60 days.

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. Indeed, a persons financial situation can be fully investigated and understood under bankruptcy. However, individuals and businesses differ; the ATO will wind up businesses under an involuntary business wind up or liquidation.

Indeed, there can be complex financial structures. As a result, it can be difficult to identify all assets that can be sold to pay off a debt without clear disclosure. Also, this lack of transparency makes it challenging to determine which assets are available for liquidation. Having a clear understanding of all assets can help in creating a strategy to address the debt effectively.

Therefore the bankruptcy trustee would have the power to seize assets allowed under the law. As a result, they can freeze bank accounts and have the power to investigate your assets and determine 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, or no assets to sell and pay back a debt.

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 with your approval. As a result, if you can’t keep up with payments, the ATO could then force the sale of your property using the second mortgage. Certainly, 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.

You must maintain all ATO tax obligations such as BAS lodgments, financials, and superannuation obligations; otherwise, the tax debt payment plans will be canceled.

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.
  • Hardhip applications have strict policy guidelines. For instance, you cannot be approved for hardship a long time after an event. Such as, you suffered an illness, and you applied for tax debt hardship two years later. Therefore, we recommend applying for hardship in the same 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.

The reasons that tax bills occur can fall into the categories below:

  • Firstly, misunderstanding of your tax obligations. As such, this mostly happens with small businesses where the business owner didn’t understand all the required taxes. Therefore, they misunderstand personal income tax, business income tax, GST, PAYG installments, 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 (loan ratio) available against your property is critical & will determine if the tax bill can be fully paid. As a result, the LVR and loan amount will either result in:

  1. The debt being fully paid or;
  2. A shortfall debt balance and a potential continueing debt issue.

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 has similarities to traditional lending. However, there are some differences in lending policies because of a higher risk for a lender in offering loans to pay tax debt. As a result, the three main loan types are:

  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 have short payment terms and therefore higher repayments.

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 online services 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 the challenges of tax debt and what is needed to resolve these issues. Moreover, we offer tax debt help and options to keep your business running, protect your assets, and provide tax debt relief. Additionally, we can advise you on your rights and entitlements.

  • Firstly, regular banks, mortgage brokers, and accountants often struggle with consolidating tax debt loans.
  • Specifically, our ATO debt loans offer relief to pay wages, GST, and other expenses.
  • Thereby reducing your commitments and providing temporary relief from ongoing tax obligations.
  • In summary, we provide loans to pay back taxes when ATO tax debt hardship is declined.
  • Finally, for more details, you can also visit 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.