A tax bill from a strong year can be paid out in full, with some lenders able to fund within 2 business days.
- Unsecured funding from some non-bank lenders within 2 business days of a complete file
- Loans from $50K to $1M for trade businesses
- Electricians, plumbers, HVAC and refrigeration businesses, run as a sole trader or a company
- GST, PAYG instalments (tax paid in advance through the year) and income tax owed together, with utes, vans, equipment or home equity as security where it helps
- 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 good year on the tools can come with a tax bill the business was not ready for. More jobs meant more GST on more invoices. Then the tax return showed the profit, the shortfall fell due, and the quarterly instalments went up at the same time. If the balance is more than a payment plan can comfortably carry, or the ATO has set a date, a loan is one option. ATO tax debt finance for trades is a business loan that pays the ATO now. You then repay a lender over an agreed term while the work carries on. It can be unsecured, or secured against your work vehicles, equipment or the equity in your home. Joseph Farhat and his team often work with trade business owners in this position, and they will tell you straight what is on offer.
Who we can help access finance
- An electrical contractor whose income tax shortfall and a higher PAYG instalment landed in the same quarter after a record year of switchboard and solar work.
- A plumber running as a sole trader who has invoiced a large commercial job, owes the GST on it, and is still waiting on the builder to pay.
- An HVAC and refrigeration business that grew from two vans to five and is now behind on the BAS across several quarters.
- A company owner whose accountant has flagged unpaid GST and PAYG withholding, the tax taken from wages, for apprentices and staff.
- A trade business owner with equity in their home that a lender may accept as security for a larger amount.
- A sole trader whose ATO payment plan has defaulted, so the full overdue amount is now payable at once.
How ATO Tax Debt Finance for Trades Works
Two things usually build the debt. The first is GST. Most trade businesses report GST quarterly on the BAS. Under accruals (non-cash) accounting, GST on a job is reported in the period you issue the tax invoice or receive payment, whichever comes first. So a big invoice sent in the last week of a quarter can put GST on the BAS before the customer pays. Businesses with aggregated turnover under $10 million may be able to report GST on a cash basis instead. Whether that suits your business is a decision for your accountant.
The second is income tax. PAYG instalments are regular prepayments of the expected tax on your business income, and the ATO works out your instalment amount or rate from your latest tax return. After a quieter year the instalments are set low. When a strong year is lodged, the shortfall is payable, and the next instalments are calculated from the higher figure. Both can arrive in the same few months, on top of GST.
The loan pays the ATO, in full or to an agreed amount, and you repay the lender over a fixed term. Compare the cost honestly. The general interest charge (GIC) on an ATO debt is currently about 11.5% a year (October to December 2026), compounds daily, and GIC incurred from 1 July 2025 is not tax deductible. Unsecured non-bank loans start from around 12% a year, so the rate alone is not always lower. Property security can support a larger amount, and its price is set lender by lender. Joseph Farhat and his team set out the full repayment cost of each option from a panel of 90+ bank, non-bank, and specialist lenders. We are a finance broker, not an accountant or tax adviser. If the business may not be able to pay its debts as they fall due, talk to your accountant or a registered insolvency practitioner before borrowing.
What Lenders Assess for ATO Tax Debt Finance for Trades
Trading account
6 to 12 months of business bank statements showing regular deposits from jobs, plus vehicle loans, supplier accounts and cards that the repayment must sit alongside.
The ATO balance
a current ATO account statement showing GST, PAYG instalments, PAYG withholding and income tax, and whether a payment plan is in place.
Lodgements
BAS and tax returns lodged, or a date from your accountant for the outstanding ones, so the full debt is known before funds go to the ATO.
Work on the books
quotes accepted, invoices outstanding, and regular clients such as builders, property managers or facilities companies.
Vehicles and equipment
utes, vans, trailers and larger equipment, their age and value, and any finance still owing on them.
Property equity
the value of your home or another property, the mortgage on it, and who is on the title. Where a home is offered, it is at risk if repayments are not met, so get independent legal advice before you sign.
The ATO Tax Debt Finance for Trades Process: What to Expect
- Call or make an Express Enquiry. Tell Joseph Farhat and his team what you owe the ATO, any deadline, and what vehicles, equipment or property you own.
- Send your ATO account statement, recent business bank statements, your latest BAS and tax return, and the payout figures on any vehicle or equipment loans.
- Joseph Farhat and his team compare unsecured, vehicle-secured and property-secured options across the panel and show you the repayment and total cost of each.
- The chosen lender issues an approval with the rate, fees, term and security. You read it with your accountant before signing.
- Funds are paid to the ATO as agreed, any vehicle loan being refinanced is paid out, and your repayments start on the agreed date.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | Not typically offered to pay out an ATO debt on its own. May be considered as part of a property or equipment refinance with full financials. | ||||
| Non-Bank Lenders | From ~12% p.a. | Unsecured, or vehicles and equipment | $50K to $500K | 3 to 48 months | Within 2 business days |
| Private Finance | From ~1.2% per month | Home or other property | $100K to $1M | 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.
Why borrowers choose Settled With Joe for ATO tax debt finance for trades
We represent you, not the lender
Joseph Farhat and his team work for you from the first call through to the day the ATO is paid.
The full cost, side by side
unsecured, vehicle-secured and home-secured options are compared on total repayments, not only on the headline rate.
One review of your file
a single conversation replaces a round of applications, and each credit enquiry is recorded on your credit file.
Matched to how trades get paid
some lenders read a trade business bank account well, with lumpy deposits and builder payment terms, and we know which ones.
A term that fits the next BAS
a loan that is too short can leave repayments clashing with the next quarter of GST and instalments, so the term is set with that in mind.
90+ lenders on one panel
bank, non-bank, and specialist lenders, so a clean file with property security can go to a bank at a sharper rate, and there are still options when it cannot.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, 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 the ATO has given you a date, tell us early and we will tell you what is realistically achievable before it.
Frequently asked questions
What is ATO tax debt finance for trades?
It is a business loan that a trade business uses to pay money owed to the ATO, such as GST from the BAS, PAYG instalments or an income tax shortfall. The lender pays the ATO, in full or to an agreed amount, and you repay the lender over a fixed term. The amount is still owed, but to a lender on set repayments rather than to the ATO with daily compounding interest.
Can I use my ute and tools as security?
Your ute, van, trailer and larger equipment often can be. Lenders want items with a clear resale value, so newer vehicles are easier to use. Hand tools and small power tools are rarely accepted on their own, because their value is low and hard to verify. Where a vehicle still has finance on it, the equity above the payout figure may count. Joseph Farhat and his team will tell you which of your vehicles and equipment lenders are likely to take, and roughly what they could support.
Sole trader vs company: does it change the options?
It changes whose debt it is and which documents lenders ask for. As a sole trader you are legally responsible for all the debts of the business, so the tax debt is yours and lenders assess you personally. Where the business is a company, the debt belongs to the company. Under the director penalty notice (DPN) regime, directors can still become personally liable for the company's unpaid PAYG withholding, GST and super guarantee charge. Lenders will usually ask directors for a personal guarantee. Both can access this finance. If what you owe is income tax on wages or investments rather than tax from the business, our [personal tax debt](/personal-finance-broker/personal-tax-debt) page covers how that is assessed. Your accountant can explain how your own structure affects the tax side.
Can I clear tax and refinance my van loan together?
Often, yes. A lender can pay out the existing van or ute loan and the ATO balance in one new loan, secured against the vehicle and any other assets you offer, so you have one repayment instead of two. Ask your current financier for the payout figure first, because it can include early repayment costs. Joseph Farhat and his team will show you whether combining the two lowers your monthly repayments or simply moves the cost, so you can decide with your accountant. Our [equipment finance](/commercial-finance-broker/equipment-asset-finance) page covers vehicle and equipment loans in more detail.
Is a loan cheaper than leaving the debt with the ATO?
Not always on rate alone. GIC sits at about 11.5% a year for October to December 2026, and it is not deductible. Unsecured business loans start from around 12% a year, plus fees, and loans secured against your home are priced lender by lender. Whether loan interest is deductible for you is a question for your accountant. Often the reason to borrow is a fixed end date and meeting a deadline the ATO has set, rather than a lower rate. Joseph Farhat and his team will put the total repayments for each option next to the ATO balance so the comparison is clear.
Can I get ATO tax debt finance for trades with low-doc or no-doc?
Yes, in many cases. Several non-bank lenders work from business bank statements and your ATO account statement rather than full financials. Most still want the BAS and returns lodged, or a timeframe from your accountant, so the full debt is clear. No-doc options exist where the loan is secured against property. Joseph Farhat and his team will tell you what each lender on the panel needs.
Do you work with borrowers with bad credit?
Yes, we do. A default, an overdue supplier account or a past judgment does not rule you out, and we will not make the conversation uncomfortable. In a trade business, a credit listing often comes from a slow-paying client or a tight quarter, and it says little about the work you have on now. Several lenders on our panel give more weight to your bank statements, your regular clients and the vehicles or property on offer than to the credit file, and price for the risk rather than decline it. Telling us early means we go to the right lender first instead of adding enquiries to your file. 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 tax debt finance for trades?
Because one conversation replaces a round of applications. Most of the trade business owners we help are sole traders and company owners with a date to meet: a BAS and an income tax shortfall due in the same quarter, instalments that jumped after a strong year, a payment plan that has defaulted, or a letter from the ATO. These situations are familiar to us and you will not be judged for being in one. What lenders look at is your trading account, the work you have coming in, and the vehicles, equipment or property you can offer. 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 ATO wants paying this week. We are based in Sydney and work with trade businesses Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help and what is realistic in your timeframe.
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 tax debt finance for trades outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges ATO tax debt finance for trades Australia-wide, in metro and regional areas. We work with electricians, plumbers and HVAC businesses in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Joseph Farhat and his team will identify which lenders on the panel suit your business and your deadline.
