Urgent ATO Tax Debt Finance for Construction

When the BAS is due before the progress payment, funding can follow within 2 business days.

• Funding to pay a construction business ATO debt, often within 2 business days on non-bank facilities
• Loans from $50K to $5M, unsecured or secured
• Builders, trade contractors, subcontractors, and construction company directors
• Overdue GST, income tax and PAYG withholding, the tax taken from wages, plus payment plans that have fallen over, with security over plant, equipment, a yard, or property where available
• Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) and no-doc options across our 90+ lender panel

Your claims are approved. The cash is not in yet. The BAS is due now. Many builders know this gap well: a strong order book, work certified on site, and a tax bill that arrives before the money does. Add retentions held back on finished jobs and a payment plan that slipped, and the ATO balance can climb quickly. ATO tax debt finance for construction is a loan that pays the ATO now, so you repay a lender over a set term while your claims, retentions and new contracts come through. It can be unsecured, or secured against plant, equipment, a yard or property. Joseph Farhat and his team work with builders and trade businesses in exactly this position, and they will tell you quickly and plainly what funding is available.

Who we can help access finance

• ✓Builders whose GST is due on progress claims that have been invoiced and approved but not yet paid by the principal or head contractor.
• ✓Trade contractors and subcontractors with retentions held on several completed jobs while the BAS for this quarter is due.
• ✓Construction company directors who have fallen behind on PAYG withheld from wages and want the balance cleared before it grows further.
• ✓Businesses that have received an ATO letter with a date on it, or whose ATO payment plan has defaulted and the full overdue balance is now payable.
• ✓Earthmoving, civil, and fit-out businesses with paid-down machinery that can be offered as security for the loan.
• ✓Trade businesses whose customers have received an ATO garnishee notice directing them to pay the ATO instead of paying the business.
• ✓Builders with equity in a yard, depot, or other property who would rather borrow against it than keep carrying the ATO balance.
• ✓Queensland builders whose accountant has flagged that an overdue tax debt is affecting their balance sheet figures.

How ATO Tax Debt Finance for Construction Works

Under accruals (non-cash) accounting, GST on a sale is reported in the period you issue the tax invoice or receive payment, whichever comes first. So once a progress claim is invoiced, the GST on it can be payable even if the client has not paid. Businesses with aggregated turnover under $10 million may be able to choose cash accounting instead, which reports GST when payment is received. Whether that suits your business is a decision for your accountant. Retentions add to the gap, because cash you have earned stays with the client until defects periods end. PAYG withheld from staff wages is a separate debt, and directors can be personally liable for unpaid PAYG withholding, GST and super guarantee charge through a director penalty notice.

The loan itself is simple. A lender advances funds that are paid to the ATO, in full or to an agreed amount, and you repay the lender over a fixed term. Without security, non-bank lenders assess your business bank statements, turnover, and order book. Security over plant, a yard, or property can bring the rate down and lengthen the term. The general interest charge (GIC) on an ATO balance is set by the ATO each quarter and is currently about 11.5% a year (October to December 2026). It compounds daily, and GIC incurred from 1 July 2025 is not tax deductible.

Joseph Farhat and his team review the ATO balance, your claims and contracts, and any assets you can offer, match the file to suitable lenders from a panel of 90+ bank, non-bank, and specialist lenders, and manage it through to funding. We are a finance broker, not an accountant, tax adviser or insolvency practitioner. Keep your accountant involved from the start. If the business may not be able to pay its debts as they fall due, speak with your accountant or a registered insolvency practitioner before taking on new borrowing.

What Lenders Assess for ATO Tax Debt Finance for Construction

The ATO Tax Debt Finance for Construction Process: What to Expect

1. 1Call or make an Express Enquiry with Joseph Farhat and his team. Tell them the ATO balance, any date on an ATO letter, and what you have in claims, retentions and assets.
2. 2Send the core documents: an ATO account statement, recent business bank statements, a list of current contracts and approved claims, and an asset list if you are offering security.
3. 3Joseph Farhat and his team match the file to lenders on the panel that fund construction businesses with a tax debt, so you are not sending out applications one by one.
4. 4The lender issues an approval setting out the rate, fees, term, and any security. We walk through the total cost with you before anything is signed.
5. 5Funds are paid to the ATO as agreed, and repayments to the lender begin on the agreed schedule. If your position changes during the term, you have someone to call.

Indicative Finance Options

Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.

Why borrowers choose Settled With Joe for ATO tax debt finance for construction