The buyer is ready. The tax side is what is holding up settlement.
- Short-term funding inside 2 business days with some non-bank lenders, once the valuation is back
- $50K to $5M to pay an ATO debt before a sale or refinance settles
- Business owners selling property, and businesses refinancing, with an ATO balance or a garnishee notice on the sale
- Repaid from the sale proceeds or the new facility, with the exit set out before approval
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) and no-doc, where property equity supports the loan
Contracts are exchanged and a date is set. Then the tax side becomes the problem. It might be an ATO balance the ATO is now collecting through the sale, or a refinance that has stalled because the incoming lender has found the debt. A clearance certificate that has not arrived can add to the pressure, but only the ATO can issue one, and a loan does not replace it. ATO debt and settlement finance is a short loan, secured over property, that pays the tax debt so it is not left to be worked out on settlement day. It is repaid from the sale proceeds or the new facility. Your conveyancer and accountant confirm how the ATO is paid and in what order. Joseph Farhat and his team can look at the debt, the security and the settlement date, and tell you quickly what is achievable.
Who we can help access finance
- ✓Business owners selling commercial premises or other business property who have learned the ATO has given a garnishee notice to the buyer, the agent or the solicitor.
- ✓Sellers of business premises whose net proceeds will not cover both the mortgage payout and the ATO balance.
- ✓Business owners refinancing a commercial property where the incoming lender wants the ATO balance paid at or before settlement.
- ✓Company directors selling property to reduce a company tax debt who want the ATO side settled before the sale completes.
- ✓Owners whose settlement date has already passed, or who have been told a notice to complete may be served.
- ✓Companies and business owners with equity in another property who would rather pay the ATO from that equity than wait on the sale.
How ATO Debt and Settlement Finance Works
Three tax issues can hold up a settlement. The first is the clearance certificate. For contracts signed from 1 January 2025, foreign resident capital gains withholding applies at 15% on all property, with no $750,000 threshold. Every Australian resident seller needs an ATO clearance certificate by settlement. Without one, the buyer withholds up to 15% of the price and pays it to the ATO, and the seller waits for a refund through their tax return. Each owner applies separately, there is no fee, it can take up to 28 days to issue and it is valid for 12 months. The second is a garnishee notice. On a property sale, the ATO can issue one to people who owe you money from the sale, such as the buyer, the real estate agent or the solicitor. The third is the debt itself. An incoming lender may want it paid before a refinance settles, and a sale may not leave enough to pay out both the mortgage and the ATO balance. The ATO can also seek a court freezing order over assets, or require security for a debt. State land tax is separate from the ATO. In NSW, unpaid land tax is a first charge on the land, and the seller must give a current land tax clearance certificate at least 14 days before settlement.
A short loan can pay the ATO debt ahead of settlement. It is secured over property, either the one being sold or another with equity, and repaid when the sale settles or the refinance funds. Clearing the debt from other security takes the ATO balance out of the settlement figures. In some cases the parties may agree with the ATO that the debt is paid from the proceeds at settlement, and a loan may not be needed. Your conveyancer and accountant confirm which applies, and the order of payments on the settlement statement. Joseph Farhat and his team then work back from the settlement date with your conveyancer, so the valuation, loan documents and funds are ready in time. They draw on a panel of 90+ bank, non-bank, and specialist lenders.
Settled With Joe arranges finance only. We are not conveyancers, lawyers, accountants or tax agents, and we do not deal with the ATO for you. A loan pays the debt. What happens to a garnishee, any withholding or the settlement itself rests with the ATO, the parties and their solicitors. If the business may not be able to pay its debts when they fall due, talk to an accountant or a registered insolvency practitioner before borrowing. This page covers business tax debts. If the tax debt is a personal one, or the property is your own home, our personal tax debt page covers that situation.
What Lenders Assess for ATO Debt and Settlement Finance
The settlement date
how many days remain, and whether the contract or refinance has any room to move.
The exit
the signed contract of sale or the refinance approval that will repay the loan.
The ATO position
a current ATO account statement, and whether a garnishee notice or other action is in place.
Security
the property offered, any existing mortgage, and the loan-to-value ratio (LVR), the loan as a share of the property's value.
Net proceeds
what is left from the sale after the mortgage, agent costs, any 15% withheld and the ATO debt.
Lodgements and trading
BAS and returns lodged, and recent bank statements where a business is the borrower.
State charges
in NSW, any land tax owing on the property and the clearance certificate the buyer will expect.
The ATO Debt and Settlement Finance Process: What to Expect
- 1Give Joseph Farhat and his team the settlement date, your conveyancer's details, the ATO balance and the property available as security.
- 2Your conveyancer confirms what the settlement statement needs, and your accountant provides a current ATO account statement.
- 3We approach panel lenders who lend short term against property and can work to your date, and explain how their costs and conditions differ.
- 4A written approval sets out rate, fees, term, security and how the loan is repaid. We walk through the total cost with you before you sign.
- 5The lender pays the ATO as arranged with your conveyancer, and the loan is repaid from the sale proceeds or the refinance when it settles.
Indicative Finance Options
| Lender Type | Indicative Rate | Max LVR | Typical Loan Range | Loan Term | Speed to Funding |
|---|
| Bank | Possible where the ATO debt can be paid inside a wider refinance and the settlement date allows several weeks. |
| Non-Bank Lenders | From ~9.5% p.a. | Up to 75% | $50K to $2M | 1 to 12 months | Within 2 business days |
| Private Finance | From ~1.2% per month | Up to 75% | $100K to $5M | 1 to 12 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.
Why borrowers choose Settled With Joe for ATO debt and settlement finance
Built backwards from the date
we ask for the settlement date first and pick lenders that can fund before it.
We represent you, not the lender
Joseph Farhat and his team act for you from the first call until the loan is repaid at settlement.
Clear about who decides
a loan pays the ATO. The ATO, the buyer and the solicitors decide what happens at settlement, and we say so.
The exit up front
lenders want to see how they are repaid, so the contract or refinance approval leads the file.
One application where possible
each credit enquiry is recorded on your file, and a refinance or the next facility will be judged on that file.
A broad panel
90+ bank, non-bank, and specialist lenders, compared on equity, timing and the strength of the exit.
Private finance for unique scenarios
if the scenario falls outside bank and non-bank policy, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if settlement is days away, call before you apply anywhere and Joseph Farhat and his team will tell you what is realistic before that date.
Frequently asked questions
What is ATO debt and settlement finance?
It is a short-term loan, secured over property, that pays an ATO debt so a property sale or refinance is not held up by it. The lender pays the ATO before or at settlement, and the loan is repaid from the sale proceeds or the new facility. The debt is still paid in full.
Can the debt be paid from the sale proceeds?
Possibly. Whether part of the proceeds can go to the ATO at settlement, and how, is something your conveyancer and accountant arrange and confirm. If the ATO has issued a garnishee notice to the buyer, the agent or the solicitor, that party may have to pay the ATO from money owed to you on the sale. Where the debt needs paying before settlement, or the proceeds are already committed to a mortgage payout, a short loan secured over property can pay it first.
What if I have not got a clearance certificate yet?
The application goes to the ATO, and an early start helps. For contracts signed from 1 January 2025, every Australian resident seller needs a clearance certificate by settlement, whatever the price. Each owner applies separately, there is no fee, and the ATO says it can take up to 28 days to issue. A certificate stays valid for 12 months. If it is not in place by settlement, the buyer withholds up to 15% of the price and pays it to the ATO, and you claim it back through your tax return.
Can a short loan bridge to settlement?
Yes, in many cases. A short loan secured over property can pay the ATO debt before settlement, and is repaid from the proceeds when the sale or refinance completes. Lenders want to see the signed contract or the refinance approval, the settlement date and enough equity to cover the loan. Short-term funding costs more than a standard loan, and fees apply even when it runs only a few weeks. Joseph Farhat and his team can tell you early whether your dates and equity line up.
What happens if settlement is delayed?
That depends on your contract, so your conveyancer or solicitor is the first call. Under the 2026 edition of the NSW standard contract, completion defaults to the 42nd day unless the contract says otherwise. If it does not complete, a party can serve a notice to complete if that party is otherwise entitled to do so. Interest for late completion comes from special conditions, not the printed form. Where a tax debt is the cause of the delay, a short loan may pay it so settlement can be rebooked. Whether it then proceeds is for the parties and their solicitors.
Can I get ATO debt and settlement finance with low-doc or no-doc?
Often, yes. A signed contract of sale and solid equity give lenders a clear exit, and some will accept BAS, bank statements or an accountant's letter instead of tax returns. Some no-doc commercial options exist for short terms. Less paperwork generally means a higher rate and a lower maximum LVR.
Do you work with borrowers with bad credit?
Yes, we do. A default, missed payments or a judgment do not rule you out, and nobody here will make the conversation awkward. A credit listing often comes from the same hard stretch that left the tax debt behind, and it says little about the equity in the property or the sale that will repay the loan. Several lenders on our panel weigh the security and the exit more heavily than the credit file, and price for the risk rather than decline it. Telling us early means the file goes to the right lender first, without stacking enquiries on your report. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your ATO debt and settlement finance?
Because you get one conversation instead of a round of applications, with a settlement date on the calendar. Most of the people we help here are self-employed owners and company directors selling or refinancing property, with a specific problem: a garnishee notice on the sale, a refinance lender asking for the ATO balance to be cleared, sale proceeds that will not stretch to the mortgage and the tax, or a settlement already pushed back once. These are familiar situations to us, and there is no judgement in the conversation. What lenders care about is the equity in the property and a clear exit from the sale or refinance. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at a sharper rate, and there are still options when the date is close. We are based in Sydney and arrange this funding Australia-wide. Joseph Farhat and his team will tell you early and honestly whether we can help, and what is achievable before your settlement date.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with ATO debt and settlement finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges ATO debt and settlement finance Australia-wide, in metro and regional areas. We work with owners in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas such as Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Settlement practice and lender appetite differ between states and postcodes, so Joseph Farhat and his team match the property and the date to lenders active in that market.
