Your ATO plan keeps adding daily interest. A loan may cost less, or it may not.
- A cost comparison before any application, with funding often within 2 business days
- $50K to $5M, against property security or on turnover alone
- Business owners, company directors and ABN holders with a current, missed or cancelled plan
- Also considered: defaulted or refused plans, and businesses already holding a garnishee or director penalty notice
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) or no-doc, depending on which of 90+ lenders fits
You set up a payment plan with the ATO to spread a tax debt over time. Then an instalment was missed, the plan was cancelled, or the ATO would not agree to a new one. Even a plan that is on track has been adding the general interest charge (GIC) to the balance every day, and since 1 July 2025 that interest can no longer be claimed as a tax deduction. ATO payment plan refinance means using a loan to pay out what is owing on the plan, so a lender holds the debt on a fixed term instead. It is not always the cheaper option, and the figures will show it when it is not. Joseph Farhat and his team set out the cost of the loan, fees included, next to the GIC the plan would add, so you and your accountant can compare them, including how each is treated for tax.
Who we can help access finance
- Businesses that missed an instalment and have been told the full overdue balance is now payable.
- Owners whose plan was cancelled and who could not agree a new arrangement with the ATO.
- Company directors whose plan defaulted and who have since received a director penalty notice.
- Businesses with a garnishee notice on their bank account or their customers after a plan fell over.
- Companies meeting every instalment, but paying GIC on a large balance over a long remaining term.
- Owners holding property equity who would like a secured loan rate set against the GIC rate before deciding anything.
How ATO Payment Plan Refinance Works
A payment plan spreads the debt, but it does not stop interest. Debts on a plan keep accruing GIC, which compounds daily. The ATO sets the GIC rate each quarter, and it is currently about 11.5% a year (October to December 2026). At that rate, a $100,000 balance adds about $31.50 a day before compounding. GIC incurred on or after 1 July 2025 cannot be claimed as a tax deduction, so the after-tax cost of carrying ATO debt went up from that date. If a plan defaults, the ATO may cancel it, and the full overdue balance then becomes payable. The ATO may also move to firmer action such as a garnishee notice or, for company directors, a director penalty notice.
A refinance replaces the plan with a loan. The lender settles the agreed amount with the ATO, and repayments then go to the lender on a set schedule. Before any application, the GIC the plan would add over its remaining term is set beside the loan interest plus establishment, valuation and legal fees. Sometimes the plan is the cheaper choice. That is often the case where the balance is small, only a few months remain, or the only loan available is unsecured or short term at a rate above GIC. Where you and your accountant decide a loan is the better fit, or the plan has defaulted and the balance is now due, Joseph Farhat and his team place the file with a suitable lender from a panel of 90+ bank, non-bank, and specialist lenders and see it through until funds land.
We arrange finance. We are not your accountant, tax agent or lawyer, and we do not negotiate with the ATO. Confirming the balance, deciding whether to ask the ATO to remit GIC, and working out how loan interest is treated for tax all sit with your accountant. If there is a real question over whether the business can pay its debts when they fall due, talk to an accountant or a registered insolvency practitioner first, before any loan.
What Lenders Assess for ATO Payment Plan Refinance
Plan history
The full ATO balance
Trading since the default
Enforcement already in place
Property security
The new repayment
Lodgements
The ATO Payment Plan Refinance Process: What to Expect
- Share the plan details: the balance, the instalment, the remaining term, and whether the plan is current or has defaulted.
- Joseph Farhat and his team set out the GIC on the plan at the current rate against an indicative loan cost, with fees included. Where the plan works out cheaper on those figures, we will show you that plainly.
- If you decide to go ahead, the file goes, with your ATO statement and recent bank statements, to the panel lenders with appetite for it.
- Approval comes in writing, setting out rate, term, fees and security. Before you sign, we take you through what the loan will cost in total.
- Funds go to the ATO and your loan repayments start. If the full balance is paid, there is no plan instalment left to meet.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | Not usually a standalone ATO payout. Can form part of a wider property-secured refinance on a well-documented file. | ||||
| Non-Bank Lenders | From ~9% p.a. secured, ~12% p.a. unsecured | Property, business assets or unsecured | $50K to $2M | 6 to 60 months | Within 2 business days (unsecured); longer where property is involved |
| Private Finance | From ~1.2% per month | Secured on property | $100K to $5M | 1 to 24 months | Available for unique scenarios |
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.
