Finance question

How do I clear tax debt without selling my house?

You borrow against the equity in the house instead of selling it. A property-backed facility uses the value you have built up to pay the ATO in full, so the debt is cleared and you keep the home. It settles at single-digit rates, often without financials, and ATO debt does not block it.

Keep the house Single-digit rates ATO debt workable

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Reviewed by a Ventas partner

Caleb MorehuCo-founder, Ventas Asset Lending

Caleb structures asset and property-backed finance deals and negotiates directly with lenders, alongside co-founder Sultan Kirby.

Ventas Asset Lending Pty Ltd (ABN 13 683 957 404) operates as a finance broker.

The short answer

Use the equity, keep the home

Selling is not the only way to turn a home into the cash that clears a tax debt. The equity you hold, the difference between what the house is worth and what you owe on it, can be borrowed against directly. That capital pays the ATO in full while the house stays in your name.

This is standard property-backed lending. Facilities reach the $5 to 6 million range at single-digit rates because real estate secures them, and many settle without up-to-date financials. ATO debt itself does not stop these deals, which is exactly why they suit clearing a tax bill.

The maths usually favours it. The ATO charges interest on unpaid tax at a rate that sits well above single-digit rates, so refinancing the debt onto a property-backed facility often costs less to carry, month to month, than leaving it with the ATO. You clear the pressure without losing the asset.

Do you qualify?

What makes it work.

Equity in your home

Value built up in the property to borrow against.

A clear debt figure

The amount owed to the ATO to be paid out.

An active ABN

A trading business behind the borrowing.

Willingness to secure it

The home stands as security for the new facility.

Why borrowing beats selling

You keep the asset

The home stays yours while its equity does the work.

Single-digit rates

Property security prices the facility in single digits.

Cheaper to carry

Below the ATO charge, which sits well above single-digit rates.

A real example

An owner owes the ATO $110k and does not want to sell the family home, worth $900k with a $300k mortgage. They borrow against the equity, pay the ATO in full and keep the house. The new facility runs at a single-digit rate. Illustrative only, subject to valuation.

Get my situation assessed

Common questions

Frequently asked questions

Do I have to sell to clear the debt?

No. Borrowing against the equity in the home pays the ATO in full while you keep the property.

Is it cheaper than leaving the debt with the ATO?

Often. The ATO charge sits well above single-digit rates, so a property-backed loan can cost less to carry.

Do I need financials?

For many property-backed deals, no. The equity in the home carries most of the assessment.

Does the ATO debt stop me borrowing?

Not for property-backed lending. ATO debt is workable when real estate secures the facility.