Quick answer
Before a call about ATO debt, have your current ATO balance from Online services for business, a breakdown of what it's made up of (GST, PAYG withholding, super guarantee, income tax), your lodgement status, and copies of any ATO letters, payment plan terms or director penalty notices. The specialist will ask how much is owed, whether everything is lodged, whether you're on a plan and what the loan needs to achieve.
Key points
- Lodgement status matters as much as the balance — unlodged returns stall every conversation.
- Know which parts of the debt are GST, PAYG withholding or super: they carry different risks for directors.
- Bring every ATO letter, especially garnishee or director penalty notices, and their dates.
- ATO debt is considered case by case; mention it up front.
- Self-serve payment plan limit
- Businesses owing $200,000 or less
- Credit reporting trigger
- $100,000+ overdue 90+ days, not engaging
- Notice before reporting
- 28 days
- ATO interest deductible?
- Not for charges from 1 July 2025
A call about ATO debt goes well or badly on one thing: whether the numbers are on the table. A specialist can work with almost any balance. What they can’t work with is “I think it’s about sixty, maybe more, and I’m not sure what’s lodged.”
This page covers what the specialist will ask, what to pull together before the phone rings, and the questions worth asking back before you borrow to pay the tax office.
What will the specialist ask about my ATO debt?
Expect these, roughly in this order:
- How much is owed, and what’s it made up of? GST, PAYG withholding, super guarantee charge and income tax behave differently, so the split matters.
- Is everything lodged? BAS, returns, super guarantee statements. Unlodged obligations are the biggest single obstacle in ATO conversations.
- Is there a payment plan? If so, when did it start, what are the instalments and is it up to date?
- Have you had any firmer letters? Garnishee notices, director penalty notices, warnings about credit reporting.
- What should the loan achieve? Clearing the debt in full, catching up a plan that’s slipped, or bridging until a known payment arrives.
- How is the business trading now? A tax debt from a bad year looks very different from one that’s still growing.
None of these are trick questions. Each one rules options in or out.
What should I have ready?
| Have ready | Where to find it |
|---|---|
| Current balance for each ATO account | Online services for business, under accounts and payments, or from your tax or BAS agent |
| Breakdown by type (GST, PAYGW, SGC, income tax) | Transaction history in Online services, downloadable as a CSV |
| Lodgement status | Your tax agent, or the lodgement list in Online services |
| Payment plan details | Online services shows eligible plans, their schedule and status |
| Every recent ATO letter | Your inbox, myGov or post — note the date on each |
| Recent business bank statements | Online banking, downloaded as PDFs |
If you haven’t lodged something, say so rather than hoping it won’t come up. And if you can get it lodged before the call, even without payment, do. The call-prep tool builds this list for you, adjusted for your amount and state: try the call-prep tool.
Why does it matter which part of the debt is GST or PAYG?
Because some tax debts can follow directors personally. Under the ATO’s director penalty regime, directors can become personally liable for a company’s unpaid PAYG withholding, GST and super guarantee charge. Once a director penalty notice is issued, there are 21 days to take action, and whether the penalty can be remitted by options other than full payment depends partly on whether the amounts were reported within three months of the due date.
That’s why a specialist will ask about the split, and why a director penalty notice moves a call straight to the top of the urgency list. If you’ve received one, speak to your accountant or a qualified adviser alongside any finance conversation.
When you’ve got the balance, the breakdown and the letters in front of you, request your call-back here.
What’s changed with ATO debt recently?
Two changes are worth knowing before you compare options.
ATO interest is no longer tax deductible. General interest charge and shortfall interest charge incurred on or after 1 July 2025 can’t be claimed as a deduction. Leaving a balance with the ATO is now more expensive in after-tax terms than it used to be.
Business tax debts can be reported to credit bureaus. The ATO may disclose a business’s tax debt if it has an ABN, at least $100,000 is overdue by more than 90 days, and the business isn’t engaging with the ATO to manage it. It sends written notice first, giving 28 days to act. Having a payment plan you’re keeping to counts as engaging.
Should I use a payment plan or a loan?
It depends on the size of the debt, what else the business owes and how steady trading is. As a rough guide:
- A payment plan may suit when the balance is manageable from cash flow, you’re confident you can keep the instalments, and nothing firmer is on the way. Businesses owing $200,000 or less can set one up themselves online.
- A loan may suit when a plan’s instalments would squeeze the business too hard, the ATO is taking firmer action, you want the debt off your credit picture, or you’re consolidating the tax debt with other expensive borrowing.
- Sometimes it’s both. A smaller loan can catch up a missed plan, or clear one account while a plan handles another.
Ask the specialist to compare the total cost in dollars of each path, including the ATO’s non-deductible interest on the plan route. Our page on the total cost of a business loan explains how to ask for that.
What should I ask before borrowing to pay the ATO?
- Will the loan pay the ATO directly, and how will I know the account is cleared?
- What happens to my existing payment plan once the debt is paid?
- Is this facility secured, and against what?
- Can I repay early if a refund or a big invoice comes in, and what would that save?
- If this is a short-term loan, what’s the exit and what happens if it’s late?
Property-secured business loans run from $20,000 to $5,000,000 and can suit larger tax balances. Unsecured options for trading businesses typically run from $5,000 to $500,000, sized on turnover and bank statements. Which is realistic depends on the rest of your picture.
What if the tax debt is part of a bigger problem?
Often it is. Tax usually falls behind because something else went wrong first — a slow season, a customer who didn’t pay, wages that grew faster than revenue. A good call will ask about that too. If other debts are also pressing, our refinance call prep covers consolidating them, and business.gov.au lists the free Small Business Debt Helpline if you’d like independent support.
Ready to talk about your ATO balance?
ATO debt is looked at case by case, and it’s far easier to help when it’s mentioned up front. There’s no credit check to ask, your details aren’t passed around to other lenders, and the specialist who rings has read your situation before dialling.
Please put the real balance, your state and any property you own in the request — accuracy is what gets you matched properly first time. Request your ATO debt call-back.
Frequently asked questions
Can I get a business loan while I owe the ATO?
Often, yes. ATO debt is considered case by case. What helps most is having returns and activity statements lodged, knowing the exact balance and being clear about how the loan fixes the problem rather than delaying it.
Where do I find my ATO balance?
In Online services for business, which shows your accounts, balances, overdue amounts and transaction history, and lets you download transactions. Your tax or BAS agent can also give you a statement.
Will the ATO report my business debt to credit bureaus?
It can, if the business has an ABN, at least $100,000 is overdue by more than 90 days and you're not engaging with the ATO to manage it. The ATO sends written notice giving you 28 days to act before disclosure.
Is ATO interest still tax deductible?
No, not for general interest charge or shortfall interest charge incurred on or after 1 July 2025. That makes an unpaid ATO balance more expensive than it used to be, which is worth factoring into any comparison.
Should I still talk to the ATO if I'm arranging a loan?
Yes. Keep engaging. The ATO advises contacting it before a due date if you can't pay, and engaging with it is one of the things that keeps disclosure and firmer action off the table.
What if I've received a director penalty notice?
Treat it as urgent and speak to your accountant or a qualified adviser immediately. Directors generally have 21 days from the notice to act, and the options depend on whether the amounts were reported on time.