ATO tax debt loans that clear the balance before it escalates.
A secured loan that pays an ATO debt out in full, on the client's timeline.
- Facility
- $100K - $10M
- Term
- 3 - 60 months
- Security
- 1st or 2nd mortgage
- Interest
- Prepaid or interest only
Clear it. Then plan it.
The ATO debt started as a timing problem - a slow quarter, a big BAS - and it is now a compounding one. The General Interest Charge accrues daily and, on amounts incurred from 1 July 2025, is no longer deductible. With at least $100,000 overdue for more than 90 days and no effective engagement, the ATO can report the debt to the credit bureaus, and directors can face a Director Penalty Notice.
A payment plan is usually the cheaper answer and it should be the first one your client looks at. This page is for the files where a plan isn't on the table, or the instalments the ATO will accept don't fit what the business can pay.
We lend $100K to $10M against Australian property to pay the debt out in full, on a first or second registered mortgage, over 3 to 60 months depending on the product. Interest can be prepaid from the advance, so there is nothing to service while the business recovers.
Send it like this
A few sentences gets you terms.
A light touch to submit, and no accreditation to clear first. Security, number, dates, exit - that is the whole submission. Below is one written for this scenario.
- To
- deals@alphaconcapital.com.au
- Subject
- ATO tax debt - indicative terms?
Company owes the ATO $380K across BAS and PAYG, overdue five months, no payment plan in place - portal statement attached, all lodgements up to date. Security is the company's warehouse at 8 Example Ave, Wetherill Park NSW 2164, unencumbered, about $1.3M. Needs $420K including costs, 12 months, interest prepaid. Exit is a refinance to the bank once the next set of accounts is lodged - accountant's letter attached.
How credit structures it
How credit structures an ATO tax debt loan.
Sized to clear the debt in full
We size the facility from a current portal statement: the balance across every account, plus costs and any prepaid interest. Paying the debt out in full, rather than part of it, is what stops the General Interest Charge on that debt and takes the ATO's recovery action off the table.
Behind the first, or in its place
If the existing first mortgage is worth keeping, Alphacon Second sits behind it and leaves it alone - we start the first mortgagee's consent the day the deal is submitted. If the property is unencumbered, or the first isn't worth defending, a first mortgage on Bridge, Fast or Reach is cheaper money.
Interest prepaid while the business recovers
A business with an ATO debt rarely has spare cash flow, which is usually how the debt happened. Interest can be prepaid from the advance for the term, so the loan doesn't add a monthly payment while trading gets back on track.
ATO tax debt loan parameters
- Facility
- $100K - $10M
- Term
- 3 - 60 months
- Rate
- From 8.50% p.a.
- Max LVR
- 75%, or 70% on Reach and Second
- Security
- 1st or 2nd registered mortgage
- Interest
- Prepaid or interest only
- Financials
- Not required
- Borrower
- Company or trust
- Purpose
- Commercial only
Which product the debt prices on turns on the security and the file, not the debt. A clean file with a credit score above 600 takes Alphacon Bridge, with no risk fee. Metro security on self-declared income takes Alphacon Fast. A first mortgage worth keeping takes Alphacon Second behind it, to 70% combined LVR. Security outside the capitals takes Alphacon Reach. Send the portal statement, the address and the exit and we will tell you which it is.
Indicative. Subject to credit assessment, a panel valuation and satisfactory security.
Send this
What kills it
- A current ATO portal statement, by account, with any payment arrangement
- Lodgement status - what is lodged and what is outstanding
- Any Director Penalty Notice, garnishee notice or statutory demand received, with dates
- The security address, the mortgage position and the balance on any existing loan
- The exit - refinance, sale or trading - with evidence
A statutory demand already running
A creditor's statutory demand gives the company 21 days to act. Tell us the day it was served. A loan can settle inside that window, but only if everyone is working to the same date from the start.
Lodgements nobody mentioned
Outstanding lodgements mean the ATO figure isn't final, and an assessment can land after settlement. Get the returns lodged, or at least tell us what is missing, before we size the facility.
A penalty notice treated as solved
Paying the company's debt remits the matching director penalties, but the type of notice and the lodgement history matter. Directors holding a notice should take their own advice while the loan is being arranged, not after it settles.
That is the whole file. Send it and we will come back with a position.
Broker questions
ATO tax debt loans, answered.
Can you lend to pay an ATO debt in full?
Yes. We size the facility to clear the debt from a current portal statement, plus costs and any prepaid interest, secured on Australian property. Check the numbers on the LVR calculator first.
Is an ATO payment plan cheaper?
Usually. The General Interest Charge is typically below a private lender's rate, so where the ATO will agree a plan the business can meet, start there. A secured loan makes sense when a plan isn't available, won't cover the whole debt, or the instalments don't fit the business.
Does paying the debt stop the ATO reporting it to credit bureaus?
The ATO removes the information when the business no longer meets its disclosure criteria, for example when the debt is paid in full. Ask the ATO to confirm the position after settlement.
Do you need financial statements?
No. Alphacon Fast, Reach and Second take self-declared income or prepaid interest, and Alphacon Bridge takes an accountant's letter or prepaid interest.
How quickly can it settle?
Indicative terms come back the same day on a complete submission. Settlement is typically two to four weeks from credit approval, and as little as five days on a clean metro file. A second mortgage takes as long as the first mortgagee's consent.
Do you take guarantees?
Yes. We take guarantees from directors and beneficial owners, as on every commercial loan we write.
Can an individual borrow to pay a personal tax debt?
No. We lend only to companies and trusts, for commercial purposes. A personal tax debt, or a HECS or HELP balance, isn't something we fund.