Tax Debt Problems And Answers

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Consolidate Tax Debt

Don’t let ATO debts bring you down. Consolidate your tax debts and make your payments more manageable.

Avoid Bankruptcy!

The ATO is heavy handed when it comes to forcing tax debt judgements and bankruptcy. Refinance business taxes owed and save yourself stress or closure.

Been Declined?

Loan Saver are experts in Tax Debt solutions. We consistently place loans for our clients that have been declined previously.

Get Back to Business!

Clear your Tax Debt and Get the ATO off your back so you can focus on what’s important. Getting back to business and making profit.

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


Below are a list of common questions about ATO debts and the tax debt solutions we are able to provide.

Q: How do I apply for ATO Tax Debt Hardship?

A: There are a number of ways:

  • Call the ATO to discuss hardship and if you fit within their requirements. You will need to fit within the ATO’s guidelines for hardship which means financial difficulty associated with:
    • Business Closure
    • Disconnection of essential service
    • Repossession of vehicle for business purpose.
    • Imminent legal action pending for non payment of debts
    • Period of review limitations
    • Court Orders
    • Settlements
    • Other necessities for the business or people you are responsible for.

You will need to provide evidence of your financial hardship.

The policies to be granted financial hardship can be complex, and you may not be approved, or the outcome of the hardship may not provide sufficient time for you to repay your debt. If this is the case, other options may be best suited to you which can be assessed to identify a more suitable solution.

Q: What is involved with ATO Tax Debt Negotiation?

A: Tax Debt Negotiation is available, however there are a few conditions the ATO requires to be met before a negotiation can commence or be granted. The ATO requires all of your tax financials to be lodged along with all of your bas lodgements. The ATO wants to understand the full tax debt obligation, along with their internal assessment of interest and penalties applied to the account.

At times this is not practicable as there may be a pending business wind up, bankruptcy, or court case pending for the debt. However, it is best to disclose any pending court matters, or wind up with us so we can determine if a tax debt negotiation solution is available within your overall strategy.

Q: Can I obtain a bank loan to pay tax debt?

A: Traditional lenders will not lend for tax debt purposes. They have loan approval, and also settlement procedures to identify if a person or business has a tax debt. If a tax debt is identified the loan will be declined, even if identified the day prior to settlement, hence applying for a tax debt loan via traditional lending avenues can cause major issues, as the delays can result in the ATO furthering a business wind up, court action, or bankruptcy to recover their debt.

Q: What’s involved in borrowing to pay tax debt?

A: Borrowing to pay a tax debt is very much the same as traditional lending, however there are specific intricacies related to paying tax debt and the loans available. The loan structure needs to meet the business cash flow requirements, and hence substantial work is completed to ensure a business has the correct loan structure to affect on cash flow.

There are some other back end processes to minimise future risk to your assets.

Q: Are there business tax debt loans?

A: Yes, there are a number of short term lenders available specifically for tax debt lending to businesses, as well as more traditional long term loans for consumer and business purposes.

Q: How to pay off tax debt?

A: Obviously, you can pay your tax debt off via a payment plan, refinance using your home loan, via unsecured lending (limited), also available are short term 2nd mortgages and caveat loans.

Q: I can't pay my tax debt, what do I do?

A: If you cant pay your tax debt there are a number of options which could involve a hardship application, obtaining finance to pay your tax debt, negotiating your debt with the ATO, and remissions of the tax debt, penalties and interest.

If you are unable to pay your tax debt, we advise making contact with us immediately so we can formally assess your potential to avoid further legal or bankruptcy issues.

Q: Are there loans to pay off tax debt?

A: Yes, we would assess and provide a proposal advising what your most suitable course of action would be. There are a number of solutions of which tax debt loans are ones of the available solutions.

Q: How can you be released from your ATO tax debt?

A: We have seen cases where clients are released from tax debt, though it is very rare. The most common result is a remission of the penalties and interest associated to your tax account. In most cases the ATO will require all financials and bas accounts to be lodged and up to date before they will review.

Q: I have a Tax Debt to the ATO, can I set up a payment plan?

A: Yes, if your debt is under $25000 it can be set up via automated phone prompts. If your case is under a collection process, or debt collectors, then you will be put through to a collection officer. Usually the payment plans do not exceed $24 months, with most common results are to have debt paid in 18 months.

Usually the requirements are that all obligations are to be maintained such as bas lodgements, financials, and superannuation obligations. If they are not met then the payment plan would be cancelled and any legal action proceeded with.

Q: Why do I have a tax debt?

A: There are a number of reasons a tax debt can occur which we have found tend to fall into the categories below:

  • Misunderstanding of your tax obligations. We find this is mostly the case with small businesses where the business owners didn’t understand all the taxes needed to be paid ie personal income tax, business income tax, gst, payg instalments and superannuation.
  • Use of tax funds for other purposes such as marketing – ie the ATO is used as an overdraft.
  • Family issues such as a death in the family, or illness.
  • Marital issues.
  • Accountant issues.
  • Bookkeeping issues.
  • Business Cashflow issues.

Q: Will ATO bankrupt me?

A: As an individual, yes.  As a business they can wind up your business under an involuntary business wind up.

Q: I received an ATO wind up? If my business closes the ATO will get no money. Why?

A: The ATO has a number of mandates under their taxation provisions. If you don’t pay tax, they see your business as creating a non-competitive environment of trade. Hence if they remove your business, another business will step into your market share and begin paying taxes. Hence if your business is wound up under being declared as insolvent, they will usually also try to seek a director’s bankruptcy to attempt to secure the sale of directors assets. There are provisions, and limitations to this, which as a result we highly recommend discussing with us at your earliest opportunity.

Why Work With The Loan Saver Network ?

  • We Are Australian Credit Licensed

  • Variety of Standard and Specialist Lenders

  • 15 Years Experience - Experts In Tax Debt Solutions

  • Simple Straight Forward Solutions Based Approach

  • Ongoing Support Program.