Finance question
Can I get a loan while on an ATO payment plan?
Often yes. Being on an ATO payment plan is not an automatic decline. Lenders often read it as a sign you are managing the debt responsibly rather than ignoring it. With property behind the deal, a payment plan is workable, and refinancing can even clear the debt so the plan is no longer needed.
Get your free rate quote
Tell us a few details and we will come back with your indicative rate. No obligation.
Thanks, we are on it
Your enquiry is in. Our team will be in touch shortly with your indicative rate and next steps.
The short answer
A payment plan is not a red flag
A payment plan tells a lender you have faced the tax debt and put an arrangement in place. That is very different from a debt left to grow unaddressed. Many lenders view an active, well-managed plan as a point in your favour, not a reason to decline, particularly when property secures the deal.
Property-backed finance is built for this. Facilities reach the $5 to 6 million range at single-digit rates, ATO debt is workable, and many deals settle without up-to-date financials. Whether you keep the plan running alongside a new facility or refinance to clear the debt outright depends on the numbers and what suits you.
There can be a case for clearing it entirely. The interest the ATO charges on a debt sits well above single-digit rates, so paying it out with a property-backed loan can cost less to carry. A broker will run both options, keeping the plan or refinancing out of it, and show you which one leaves you better off.
Do you qualify?
What makes it workable.
Property equity
Equity in real estate to secure the facility.
An active plan
A payment arrangement you are keeping to.
A clear debt figure
Knowing what is left to pay shapes the options.
An active ABN
Sole traders and companies both apply.
Why a payment plan still gets a yes
It shows control
An active plan reads as responsibility, not risk.
Property secures it
Real estate keeps pricing in single digits with ATO debt in the mix.
Refinancing is an option
Clearing the debt can cost less than carrying the ATO charge.
A real example
A business owner is nine months into a $90k ATO payment plan and needs working capital. With $500k of equity in a property, a single-digit-rate facility is arranged that both funds the business and clears the remaining tax debt, ending the plan. Illustrative only, subject to valuation.
Common questions
Frequently asked questions
Does the payment plan hurt my application?
Not usually. A well-managed plan often works in your favour, especially when property secures the deal.
Can I keep the plan and still borrow?
Yes. You can run a facility alongside the plan, or refinance to clear the debt, depending on what suits you.
Should I pay out the ATO debt instead?
Often it costs less. The ATO interest charge sits well above single-digit rates, so a property-backed loan can be cheaper to carry.
Do I need financials?
For many property-backed deals, no. The equity in the property carries most of the assessment.