Finance question
Can you get a business loan if you owe the ATO?
Yes, if you own property. ATO tax debt does not automatically rule you out. Ventas arranges property-backed finance up to $6 million where ATO arrears are workable, at single-digit rates, with no financials required.
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The short answer
Owing the ATO does not have to stop you borrowing
Most banks decline the moment they see an ATO balance or a payment plan on file. They treat tax debt as a red flag and stop reading. Property-backed lenders look at it differently. If you hold real estate with equity, that security carries the deal, and the ATO position becomes something to structure around instead of a dead stop.
The one hard requirement is property. This works because of the security, not in spite of the debt. If you do not own property to borrow against, this particular product is not for you, and equipment finance that runs off the asset is the better path.
On many property-backed deals the ATO balance is paid out directly at settlement, so the arrears are cleared in one move rather than refinanced alongside you. That is why owners who own property get a yes here after a run of bank noes.
Do you qualify?
The shape of a borrower this suits.
You own property
Commercial or residential real estate with usable equity to secure against.
ATO arrears or a plan
An outstanding balance or an active payment plan is workable, not an automatic no.
Up to $5 to 6 million
Facility sizes scale with your equity position.
No financials needed
Many property-backed deals settle without up-to-date financials.
Why the bank says no and this says yes
The bank sees risk
A bank prices tax debt as a policy rule. Arrears above a threshold means decline, and there is rarely a person to appeal to.
The lender sees security
Property-backed lending runs off the real estate first. With equity behind the loan, the ATO balance becomes a line to clear, not a reason to stop.
The debt gets cleared
The facility can pay the ATO out at settlement, so you leave with one predictable repayment instead of a plan the ATO can default.
How a real deal is structured
A trades business owes the ATO $80,000 across BAS and PAYG and is straining under a payment plan. The director owns a commercial unit worth $900,000 with a $300,000 mortgage, so about $600,000 in equity. Ventas arranges a facility that pays the $80,000 out at settlement and consolidates it into one loan at a single-digit rate. The plan is gone and the ATO is cleared. Illustrative only.
Common questions
Frequently asked questions
Will the ATO be paid out directly?
Often yes. On many property-backed deals the ATO balance is cleared at settlement, so the arrears are gone rather than refinanced alongside you.
Does being on an ATO payment plan count against me?
Not on its own. A payment plan is common and workable when there is property security behind the loan.
What if I have a director penalty notice or a defaulted plan?
These are more complex but not automatic declines. Bring the detail and we will tell you honestly whether there is a path.
Do I need up-to-date financials?
For many property-backed deals, no. The security does the heavy lifting, which is why owners with messy recent books still get funded.