Business owners · ATO debt Business Owner Debt Reset
A good business can still end up with a tax debt: a big year, a slow payer, a bill that landed at the wrong time. The Business Owner Debt Reset looks at every way to deal with it, including leaving it with the ATO, and shows the true cost of each.
Key takeaways
- Three outcomes: clear the ATO, improve cash flow, and get your borrowing back on track.
- Built for good businesses with a historical tax debt, lodgements current and equity in property.
- Every option shows rate, term, total interest, security and costs side by side. Never a rate on its own.
- Your accountant keeps the tax advice. I handle the lending.
- FCA, ICAEW Chartered Accountant
- $0 for the session. Lenders pay me, and I show you how much
- Best interests duty, by law
- 30+ lenders on my panel VERIFY
Three outcomes, and what each one takes
Most business owners want one of these. Some want all three.
Clear the ATO
Pay the debt out from a refinance, so the general interest charge stops and the ATO stops chasing. It needs equity in your property and lodgements up to date.
Improve cash flow
Swap a large payment plan repayment for a smaller home loan repayment while the business steadies. The catch: over a long term, it costs more in total.
Get your borrowing back on track
A tax debt, or a payment plan, can block a home loan or a next purchase. Dealing with it in the right order can open lenders again.
Who it’s for
- Your business is trading profitably now. The tax debt is from the past, not still growing.
- Your tax returns and BAS are lodged and up to date.
- You own property with equity, or you’re buying and have a deposit.
- You want the full picture, including the option of leaving it with the ATO.
Who it isn’t for
- A business still running at a loss. A loan secured on your home won’t fix that, and could make it worse.
- Anyone whose lodgements are behind. Your accountant is the first step.
- Anyone looking for insolvency or restructuring advice. That’s for an accountant or a registered insolvency practitioner.
Why the rate on its own is the wrong comparison
The ATO’s general interest charge is 11.51% a year for October to December 2026, and it hasn’t been tax deductible since 1 July 2025. A home loan rate is lower. So it’s tempting to say refinancing saves money.
It may not. Spread over 25 years, a smaller rate on a bigger term can cost many times the interest of a two-year payment plan, and the debt becomes secured against your home. That’s why every option I show has the rate, the term, the total interest, the security and the costs side by side.
The worked example, $80,000 three ways, is on home loans with ATO debt.
Accountants keep the tax advice
I’m a Chartered Accountant, but in my broking work I don’t give tax advice. Your accountant manages the ATO, the lodgements and the tax side. I handle the lending. Accountants can refer a client here, using four checks before they do.
How I work The Pace Plan
The Pace Plan, for business owners.
- Step 1
Get your real number
The tax debt, any payment plan, your other debts, what your property is worth and what you owe on it, read alongside your returns.
- Step 2
See every option side by side
Keep the payment plan, pay the ATO out at settlement, or refinance and keep paying it down. Rate, term, total interest and security for each.
- Step 3
Set a pace you can live with
Choose the option and the timeline, then I manage the lending and review it with you every six months.
Schemes first, every time. I tell you the catch. If waiting is the better answer, I'll say so.
FAQ Questions clients ask
Can I refinance my home to pay off ATO debt?
Often, yes, if you have enough equity and your lodgements are up to date. Some lenders will pay the ATO directly at settlement as part of a refinance. It lowers the repayment but can cost more in total over a long term, and the debt becomes secured against your home.
Who is the Business Owner Debt Reset for?
Business owners with a good business and a historical tax debt: trading profitably now, lodgements current, and equity in property. It isn’t for a business that is still losing money, because a loan won’t fix that.
Does my accountant need to be involved?
It helps. Your accountant keeps the tax advice and the relationship with the ATO, and I handle the lending. With your consent, your accountant and I can share the figures so the plan works for both.
Is refinancing ATO debt better than a payment plan?
Not always. A payment plan keeps the debt unsecured and short. Refinancing can ease cash flow or keep a debt off your credit file, but over 25 years it costs far more in interest. I show both side by side before you decide.
Will ATO debt show on my credit file?
It may, if your business owes at least $100,000 that is more than 90 days overdue and you aren’t engaging with the ATO. A payment plan you’re keeping to counts as engaging.
Read next
Get your real number in one 30-minute session.
Then set a pace you can live with.
Book 30 minutes and see every option side by side, with the true cost of each.