ATO Debt Consolidation
Money matters and so do you.
Tax debt creeps up on good operators. You're flat out doing the work that pays the bills, then a BAS, an income tax bill and a letter from the ATO all land in the same month. If you own property, there may be a way through that doesn't involve selling anything or sitting and waiting.
Talk to one of our brokers
Does this sound familiar?
The situations we see most often
The balance grew faster than you expected
BAS, PAYG and income tax stacked up on top of each other, and the general interest charge keeps adding to it every day it sits there.
A Director Penalty Notice is on the table
Once one lands, company tax debt can become your personal problem. The clock is short and it matters who you call first.
Your financials aren't finished yet
Last year's tax return is still with the accountant, so a standard application won't work. Alt doc lending often can.
There's a Division 7A loan to deal with
Money drawn from your company that needs repaying. It can often be cleaned up in the same transaction as the tax debt.
Someone told you to wait
Wait for two clean quarters, wait for the next return. Sometimes that's right. Sometimes waiting is exactly what makes things worse.
You're thinking about selling a property
Before you list anything, talk to us. We've stopped more than one family home sale by finding the equity that was already there.
How we help
Ways we can clear ATO debt
Every file is different. These are the approaches we use most, and plenty of our clients end up with a mix of two or three.
Refinance and release equity
Move your home loan to a lender that will release equity to pay the ATO in full, often with a better overall loan structure at the end of it.
Learn moreConsolidate everything into one
Tax debt rarely travels alone. Bring the ATO, the car loan, the credit card and the business overdraft into one clear repayment plan.
Learn moreSelf employed lending
Lenders who understand business income, add-backs and the way company structures really work, rather than squeezing you into a PAYG template.
Learn moreAlt doc and low doc
When your returns are behind, we can use BAS, bank statements and an accountant's letter to tell the lender what's really going on.
Learn moreCommercial property equity
If you own your premises or another commercial asset, that equity can sometimes do the heavy lifting and keep the family home out of it.
Learn moreBridging when a sale is the plan
If selling really is the right move, bridging finance can clear the ATO now so you aren't forced into a rushed sale at the wrong price.
Learn moreHow we help
ATO debt rarely sits on its own, so neither do we
Kate Sadler spent nearly two decades in banking before starting The Broker Society, and she has sat on both sides of the desk when tax debt turns up in an application. She knows how credit teams read a late return or a quiet quarter, and she knows how to explain it so they say yes. Behind her is the wider Broker Society team of five brokers and our support staff, every one of them self employed, so we understand what it's like to run a business and keep the ATO happy at the same time.
Clearing the tax debt is usually step one. Some clients come back later to refinance onto a better lender once their financials catch up. Others were already mid way through buying their next home or building their new build when the ATO came knocking, and we keep that plan on track too. Business owners with patchy paperwork lean on our self employed home loans and low doc home loans, while those with premises or a trading business use our commercial lending.
We also help clients rolling ATO debt into The Reset debt consolidation alongside personal loans and cards, investors restructuring their investment loans to free up equity, and families who need bridging finance to buy before they sell. Once things are stable, it's often the right time to look at SMSF lending for the long game, to help a child with their first home, or for older clients, to talk through whether reverse mortgages make sense.
Tax debt is like sand in the car. You don't notice it building up until you're vacuuming out half a beach.
The Broker Society
The Humans Behind The Society
Five brokers, a support team who keep everything moving, and more than 50 years of combined experience between us. Every one of our brokers runs their own business, so we've done our own BAS at midnight and we know what a letter from the ATO feels like when it lands.
When you call about tax debt, you get a real person who picks up the phone, knows your file and follows it all the way through.
ATO debt, sorted properly
Tax debt is a lending problem, and lending problems are what we do
Most of the business owners who call us about ATO debt aren't bad at business. They're usually very good at it. A slow quarter, a delayed contract or a big year that nobody set enough aside for is all it takes for the balance to get away from you.
If you own a home, an investment property or commercial premises, the equity you've built may be able to clear what you owe the ATO in one go. We look at your whole position, work alongside your accountant, and find the lender on our panel that fits how your business actually runs. It's part of how we approach The Reset, with a sharper focus on tax.
No judgement and no lectures. Just a plan.
ATO debt gets harder to fix the longer it sits
Director Penalty Notices
If you run a company, a Director Penalty Notice can make you personally liable for certain unpaid company debts, such as PAYG withholding, GST and super guarantee. There's a short window to act once one is issued, and the options narrow quickly after that.
Your credit file
The ATO can report significant overdue business tax debts to credit reporting bureaus in some circumstances. Once that happens, lenders see it too, which can make refinancing harder than it needed to be.
Lender turnaround
Some lenders take a week or more to assess. Knowing which ones can move quickly, and having long relationships with the people inside them, is often what gets a file over the line before a deadline.
General information only. Your accountant or tax adviser should always confirm how the ATO rules apply to you.
What to expect
How it works with us
A proper first conversation
Meet us face to face at our Noosaville office or online, whichever suits. We share our screen and walk you through the visuals and the numbers, so you can see exactly where you stand and what each option looks like.
We bring your accountant in
Tax structures aren't something to guess at. We check the plan with your accountant before anything is submitted, especially where company debts or a Division 7A loan are involved.
We tell the lender your real story
A quarter with no income or a return that's running late looks bad on paper. We write to the lender and explain what actually happened, backed by your accountant, so they see a person and not just a spreadsheet.
We push it through
We prepare the application quickly, then stay on it with the lender. When there's a deadline, we pick up the phone to the people we've worked with for years.
We plan the way forward
Once the ATO is paid, we map out what comes next. That might be a refinance to a sharper lender in twelve months, or simply a plan to set tax aside from every invoice so you never end up here again.
Real ATO debt stories
Names changed, numbers real, outcomes worth reading.
Construction
From ATO Debt to Dream Build: Why Lending Doesn't Always Go in a Straight Line
Read MoreCommon questions
ATO debt consolidation questions, answered
Can I use my home loan to pay off ATO debt?
Often, yes. If you have enough equity in your home, a lender may let you refinance or top up your loan to clear the ATO balance in full. Every lender has its own view on tax debt, so part of our job is knowing which ones on our panel of 50+ are comfortable with it and which ones aren't.
Will a lender still approve me if I owe money to the ATO?
Many will, as long as the full picture makes sense. Lenders want to understand how the debt built up, that the business is still trading well, and that the loan will actually clear the ATO rather than just add to your debts. We present all of that up front so there are no surprises for the credit team.
What is a Director Penalty Notice and why does it matter?
A Director Penalty Notice is how the ATO makes a company director personally liable for certain unpaid company debts, such as PAYG withholding, GST and super guarantee. There's a short window to act once one is issued. If you've received one, or think one is coming, talk to your accountant and give us a call straight away.
How quickly can you move?
We can usually have an application prepared and in front of you within a couple of days of our first conversation. Lender turnaround times vary, and when there's a deadline we lean on our long standing relationships with lender contacts to keep things moving.
My tax returns aren't finished. Can I still apply?
Yes, in many cases. Alt doc lending lets us use BAS statements, business bank statements and a letter from your accountant instead of the latest tax return. If a quarter looks unusual, we explain why in writing so the lender sees the real story.
Can I consolidate ATO debt with my other debts?
Yes. Tax debt often sits alongside a car loan, credit cards or a business overdraft. Bringing them together into one loan can simplify your repayments and give you one clear plan. This is part of what we call The Reset.
Do I need to be on an ATO payment plan first?
Not necessarily. Some lenders like to see that the debt is being managed, and a payment plan can help show that, but it isn't always required. We'll tell you what the lenders we're considering expect before you make any calls to the ATO.
Can you help clear a Division 7A loan at the same time?
Often we can structure one refinance to deal with both the ATO debt and a Division 7A loan. Because Division 7A has its own tax rules, we always have your accountant confirm the approach before we submit anything.
Should I speak to my accountant before calling you?
Either order works. Plenty of our ATO clients are referred to us by their accountant, and plenty call us first. Either way, your accountant is part of the conversation before an application goes in.
Is selling a property a better way to pay the ATO?
Sometimes it is, but it shouldn't be the automatic answer. Selling in a hurry can cost you more than it saves. We look at whether the equity you already have can clear the debt first, and if selling is the right call, bridging finance can take the pressure off the timing.
I'm a sole trader, not a company. Does this still apply to me?
Yes. Director Penalty Notices apply to companies, but sole traders and partnerships carry ATO debt too, and the lending options are very similar. We work with every kind of business structure.
Can I use equity in an investment or commercial property instead of my home?
Yes. If you own an investment property, your business premises or other commercial property, that equity may be able to clear the ATO debt and leave your home loan as it is. We'll look at every asset to find the cleanest structure.
What if the ATO debt is already on my credit file?
The ATO can report significant overdue business tax debts to credit reporting bureaus in some circumstances. It doesn't rule you out, but it narrows the lender list, which is another reason to act early. We'll be upfront about what's possible for your situation.
Will putting ATO debt into my home loan cost more in the long run?
It can, if a short term debt is stretched over a long loan term and left there. That's why we show you the numbers side by side and build in a plan to pay the consolidated amount down faster, so the relief today doesn't turn into a longer bill later.
What happens once the ATO is paid?
We plan the next step with you. That might be a refinance onto a sharper lender once your financials catch up, or simply a habit of setting tax aside from every invoice. The goal is that you never land in this position again.
I'm embarrassed about how this happened. Will I be judged?
Not by us. ATO debt happens to good operators all the time, usually because they're busy doing the work that earns the money. We start from trust and empathy, and our whole team runs their own businesses too.
Do I need to live near Noosa to work with you?
No. We're based in Noosaville with brokers across Queensland, and we help business owners right across Australia. Meetings can be face to face or online with screen sharing, whichever suits you.
The Broker Society team are always there to help, nothing is ever too big or small, if it’s just advice or refinancing they are always quick, reliable, clear in communications and just amazing. We will never go anywhere else!
Jasmine M
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