Urgent ATO Tax Debt Finance for Medical and Dental Practices

A strong billing year, and a tax bill that arrived bigger than the plan.

• Unsecured funding for practices with steady billings, in some cases within 2 business days
• Loans from $100K to $5M, from a single clinician to a multi-site practice
• GPs, dentists, specialists and allied health owners, plus the companies and practice entities they run through
• Income tax, PAYG instalments (amounts paid through the year toward the next tax bill), PAYG withholding (the tax taken from staff wages) and any GST owed on taxable services
• 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

A busy year of billings often means a higher tax assessment, and the instalments set for the following year rise with it. If the money set aside fell short, or went into a new chair, a second room or a surgery fit-out, the ATO balance can be larger than anyone budgeted for. That is a timing problem in a practice that is earning well. ATO tax debt finance for medical and dental practices uses a lender's funds to clear the ATO balance, which you then repay in set amounts that fit your billing cycle. Joseph Farhat and his team work with practice owners and clinicians in this position and will tell you clearly what lenders are likely to offer.

Who we can help access finance

• ✓GPs who own their practice and received an income tax assessment well above what their accountant had forecast.
• ✓Dentists who reinvested cash into equipment during the year and now have an ATO balance due on a strong result.
• ✓Specialists billing through their own business whose PAYG instalments have stepped up after a high-income year.
• ✓Practice entities that employ reception, nursing and admin staff and have fallen behind on PAYG withheld from those wages.
• ✓Multi-site practice groups with an ATO balance in one entity and property or strong cash flow in another.
• ✓Practice owners whose ATO payment plan has defaulted, leaving the full overdue balance payable at once.
• ✓Clinicians who own a home or the practice premises and would rather repay a lender against that equity than carry an ATO balance accruing interest.

How ATO Tax Debt Finance for Medical and Dental Practices Works

Most medical services are GST-free where a Medicare benefit is payable, or where the service is necessary, appropriate treatment by a practitioner. So a medical practice usually has little GST to collect on consultations. It can still claim GST credits on what it buys to deliver those services, such as equipment and consumables. That is why a medical practice tax debt is usually income tax, PAYG instalments or PAYG withholding. GST can still arise. Cosmetic work with no Medicare benefit payable is not GST-free, and reports written for insurers or lawyers generally are not either. Dental and allied health services have their own GST rules, so your accountant can confirm how they apply to your practice.

Who owes the debt depends on how the practice already runs. Income tax on fees billed in your own name sits with you. PAYG withheld from staff wages sits with whichever entity employs them, often a company or practice entity. Where that employer is a company, the director penalty regime can make its directors personally responsible for unpaid PAYG withholding, GST and super guarantee charge. The ATO pursues a director through a director penalty notice (DPN). We do not comment on structures or suggest changing them. Your accountant is the right person for that.

Lenders generally view clinician income favourably, because billings tend to be steady and many practitioners earn well. Some lenders have dedicated policies for medical and dental borrowers, and the right one can price the loan more sharply than a general business lender. Joseph Farhat and his team review the ATO balance, your billings and any security, place the file with a suitable lender from a panel of 90+ bank, non-bank, and specialist lenders, and manage it through to funding. Settled With Joe arranges finance. We do not act as your accountant or tax adviser, and your accountant stays involved throughout. Where there is doubt that the practice can meet its debts when they are due, an accountant or registered insolvency practitioner comes before any new loan.

What Lenders Assess for ATO Tax Debt Finance for Medical and Dental Practices

The ATO Tax Debt Finance for Medical and Dental Practices Process: What to Expect

1. 1Speak with Joseph Farhat and his team about the amount owed, which entity owes it, and any ATO date you are working to.
2. 2Provide an ATO account statement, recent billing reports, business bank statements and your latest tax return or financial statements.
3. 3We approach lenders on the panel with health-professional policies, and set out the rate, fees and security each would require.
4. 4The lender issues a written approval. We take you through the total repayment before you sign, and your accountant can review it too.
5. 5The ATO is paid the agreed amount and repayments to the lender begin on a set schedule.

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 medical and dental practices