ATO Tax Debt Loan: A Tax-Deductible 9% Interest Solution for SMEs.
Let’s be honest. Over the years, a lot of business owners have treated the ATO like an unofficial line of credit. You push tax payments back because suppliers come first. If you don’t pay them, the business stops.
But that strategy has got a lot more expensive. As of July 1, 2025, the ATO charges around 11% interest on unpaid tax debt; and it’s no longer tax-deductible. That means the ATO has effectively become your most expensive, least flexible lender.
That’s why Collins SBA has partnered with a specialist lender to offer clients a smarter alternative: an ATO tax debt loan. It’s a simple, revolving facility with 9% interest, and it stays fully tax-deductible.
Why Consider an ATO Tax Debt Loan?
ATO interest is one of the few business costs you get absolutely nothing for. No flexibility. No breathing room. No benefit. The only thing it does is quietly crush your cash flow.
Here’s why an ATO tax debt loan makes sense:
- 9% flat interest, fully deductible (compared to ATO’s 11% non-deductible rate)
- Evergreen access, once approved, the facility is always on
- No ATO involvement required with fast private approvals
- Doesn’t interfere with secured lending or banking relationships
- Covers BAS, PAYG, FBT, GST, LCT and more
- 3 payment holidays per year when cash flow is tight
- 12-month terms to smooth out large bills into monthly payments
This isn’t a stopgap. It’s a proactive tool for better managing your obligations, reducing cost, and improving cash flow control.
And here’s the thing: it’s designed not to compromise your existing secured loans or your banking relationships. It’s private, flexible, and there’s no ATO involvement required.
For freedom’s sake.
Real Questions from Real Clients
We get asked versions of these every week:
- How do I stop using the ATO as my emergency cash flow buffer?
- Is this going to mess up my other lending?
- What if I don’t qualify? Will the ATO know?
- Can this debt actually work for me instead of against me?
The short answer: we’ll tell you straight. If it’s not right for you, we won’t push it. But for many clients, it’s exactly the breathing room they’ve been looking for.
How the Facility Works
We’ve designed this solution to be simple, flexible and fast:
- Apply once: after approval, the facility is always ready.
- Use it when needed: draw down to pay tax debts without draining working capital.
- Pay it back your way: with up to 3 payment holidays per year.
Your accountant and adviser stay across it. Your forecasts and tax planning get better. And your ATO relationship? It stops being a source of stress.
Learn more about how to finance ATO tax debt here.
Planning Ahead: New Rules, New Pressures
From July 2026, superannuation goes pay-as-you-go. That means you’ll no longer be able to delay super payments quarterly. For many businesses who already defer ATO obligations to ride out seasonal lows, this removes another lever.
Proactively managing tax obligations now will put you in a stronger position before those rules kick in.
The Collins SBA Approach
This isn’t about selling finance. It’s about giving our clients real options.
- We assess whether an ATO tax debt loan fits your actual numbers
- We integrate it with your tax planning and cash flow strategy
- We stay involved with reviews, reporting and advice
- You get face-to-face conversations when you need them (because that’s always easier)
- You get access to the whole Collins SBA team – you know we’re here
And we do it face-to-face, with the same team you already know.
Let’s Chat
If the ATO has become your reluctant business partner, or if tax debt is becoming a drag on your growth, let’s talk.
This isn’t for everyone. But for the right scenario, an ATO tax debt loan could take real pressure off your cash flow and help you make smarter decisions with confidence.
