ATO payment plan
The ATO says businesses owing $200,000 or less may be able to set up a plan through its online services. Interest keeps accruing while you pay.
Clear your tax debt
Urgent ATO Debt Funding for Australian Businesses
Got a letter from the ATO? A business loan can clear the debt quickly, so you can stop worrying about it and get back to running the business.
Tax debt, sorted
Can I get a business loan to pay my ATO debt?
Yes, and it's one of the most common reasons owners come to us. BAS, GST, PAYG withholding and income tax have a habit of piling up during a tight year, and before long there's a letter on the desk that nobody wants to open. The good news is that ATO debt doesn't automatically stop you borrowing. Lenders consider it case by case.
Using urgent ATO debt funding to pay the tax office in full can take the pressure off almost overnight. Instead of juggling payment plan instalments against everything else, you have one loan with a set structure and a clear end date.
Property-secured options run from $20,000 to $5,000,000, with same-day funding possible for $20k to $250k. Trading businesses without property may suit unsecured cash-flow options, typically $5,000 to $500,000, sized on turnover and bank statements. Apply today, and being cashed up tomorrow is possible for eligible applicants with documents ready.
Yes. Many Australian businesses use a loan to clear an ATO debt in full. Lenders consider tax debt case by case. Property-secured business loans from $20,000 to $5,000,000 can be possible within 24 to 48 hours, while unsecured options for trading businesses typically range from $5,000 to $500,000. Talk to your accountant about whether a loan or an ATO payment plan suits you better.
Your options
Payment plan or business loan?
Both can work. The right choice depends on the size of the debt, your cash flow and what else the business needs.
Unsecured business loan
For trading businesses, typically $5,000 to $500,000 based on turnover and bank statements. Fast, with no property needed.
Property-secured loan
From $20,000 to $5,000,000. Suits larger debts, or clearing tax and freeing up working capital in one go.
Why pay the ATO with a loan instead of a payment plan?
A payment plan is a sensible option for many businesses. But the ATO's own guidance is to pay as soon as possible, and if you use a plan, to keep it as short as practical because the general interest charge (GIC) continues to accrue on the outstanding balance.
There's another wrinkle worth knowing. The ATO has confirmed that GIC incurred on or after 1 July 2025 is no longer tax deductible. The ATO notes that a registered tax professional may suggest a business loan instead, as some interest on business-related loans may be deductible. Ask your accountant how this applies to you.
Can I get a loan if I already owe the ATO money?
Yes, it's assessed case by case. Lenders understand that tax debt is often a symptom of a cash flow squeeze, not a failing business. What they want to see is that the loan will clear the problem rather than add to it.
Property-backed lenders are generally the most comfortable with larger tax debts, because the security reduces their risk. For trading businesses without property, recent bank statements showing steady deposits carry a lot of weight. Our guide to how lenders read bank statements explains what they look for.
- The latest ATO statement of account or portal screenshot
- Recent business bank statements
- ID for directors and any guarantors
- Rates notice, if using property as security
- A short explanation of how the debt built up
Just opened an ATO letter? What should I do this week?
Don't ignore it, and don't panic. Check exactly what's owed and the due date, speak to your accountant, and work out whether you can pay in full, need a plan, or want to refinance the debt with a loan. Then act quickly, because options narrow the longer a debt sits.
We've written a step-by-step guide for exactly this moment: ATO debt letter: what to do this week. It pairs well with our cash flow emergency checklist.
Apply today… cashed up tomorrow!
Need the funds this week?
Start the 60-second enquiry now. When your documents are ready and the deal is straightforward, being cashed up as soon as tomorrow is possible for eligible applicants.
An example of using a loan to clear tax debt
Imagine a cafe group that fell behind on BAS during a slow winter. The debt is building interest, and the owner is spending hours each week on the phone instead of in the business. They have equity in their home. A property-secured loan pays the ATO in full, plus a little extra working capital to stock up for the busy season.
One loan, one repayment schedule and no more letters. The owner sets up a separate account to put GST and PAYG aside each week so it doesn't happen again.
How fast can I clear my ATO debt with a loan?
For property-secured loans, $20k to $250k can be possible the same day and up to $5m within 24 to 48 hours. Same-day funding is also possible for smaller unsecured amounts. The fastest outcomes come when your ATO statement, bank statements and ID are ready to send straight away.
If you have no property, see our unsecured business loans page for how turnover-based lending works.
Get your ATO debt off your desk
The enquiry takes about 60 seconds and there's no credit check when you first enquire. A real person reviews it, and your details aren't sprayed out to a pile of lenders. Please be accurate about the amount owed and any existing payment plan, so we can match you to the right lender first time.
Start your 60-second enquiry and take the first step today. All loans are subject to lender approval.
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Loanster keeps the enquiry process straightforward: no credit check to enquire, a real person looks at your situation, and your details are not sprayed out to a pile of lenders.
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Personal details are submitted through a secure form and are not sent through URL query strings.
Australian business context
Enquiries can include ABN, BAS, ATO, bank statement and asset details where relevant.
Lender criteria apply
Approval, pricing, loan amounts and funding times depend on lender assessment.
Clear next steps
Loanster helps identify what information may be needed before a lender can make a decision.
Common questions
Urgent ATO Debt Funding FAQs
Will a lender approve me if I'm on an ATO payment plan?
Possibly. Being on a payment plan doesn't rule you out. Lenders look at the full picture, and many borrowers use a loan to pay out the plan in full.
Can a business loan be used to pay GST and PAYG debts?
Yes. BAS debts including GST and PAYG withholding are common reasons for business borrowing. The loan must be for business purposes.
Is ATO interest still tax deductible?
The ATO says general interest charge incurred on or after 1 July 2025 is no longer deductible. Speak to your accountant about your situation and about the deductibility of any business loan interest.
Can I get an unsecured loan to pay the ATO?
For trading businesses, unsecured or cash-flow options typically range from $5,000 to $500,000, sized on turnover and bank statements. Tax debt is considered case by case.
Do I need my tax returns up to date?
Not always. Property-secured and low-doc options can work when lodgements are behind, though lenders will want to understand your position.
How much ATO debt can a loan cover?
Property-secured business loans go up to $5,000,000, depending on equity and your repayment plan. Smaller debts may suit unsecured options.
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Last reviewed: 24 October 2026
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