From 1 July 2025, interest on ATO debt will no longer be tax deductible.
This change could significantly impact business cash flow and overall tax strategy.
As a result, it’s more important than ever to consider alternative financing options that could reduce your interest costs and in some cases, restore the tax deductibility of the debt.
If you own property with available equity, there may be an opportunity to refinance your ATO debt into a home loan. The benefits include:
- Lower interest rates – potentially reducing from ~11% (ATO) to ~7%
- Potential tax deductibility – depending on structure (confirm with your accountant as debt related to personal tax debt is not tax deductible)
- Improved cash flow – longer loan terms up to 30 years
Lenders also offer flexible loan options in regards to documentation required. This can range from full doc loans (full tax returns and financials) to Alt doc loans (BAS, bank statements, accountant/client declarations)
Allan Hall Business Advisors and Allan Hall Finance can work together to help you prepare for this change and explore better funding structures.
Speak with us today to review your options ahead of the 1 July 2025 deadline.
CONTACT ALLAN HALL BUSINESS ADVISORS BROOKVALE SYDNEY