Paying, loans and home loans: your questions answered
In plain English
Since ATO interest stopped being deductible, paying the ATO with borrowed money is sometimes cheaper than a payment plan and sometimes a trap. How tax debt affects home loans, refinancing and business finance, and the ways to pay.
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These are short, direct answers. The complete picture is in Tax debt & home loans.
Can I get a home loan with tax debt?
Yes, often, but it depends on whether the debt is managed. Major banks typically want overdue ATO debt cleared or under...
Answer →Can I refinance my home loan to pay ATO debt?
Often yes, if you have enough equity and can service the larger loan.
Answer →Should I get a loan to pay the ATO?
Sometimes, but it is not the default answer. A loan is worth considering when its all-in cost is clearly below the...
Answer →Can I pay the ATO with a credit card?
Yes. The ATO accepts Visa, Mastercard and American Express through ATO online services and Government EasyPay.
Answer →What is the best way to pay a large tax bill?
If you can pay in full, do it by BPAY, card or bank transfer before the due date; that is the cheapest way.
Answer →How do I pay the ATO from overseas?
You can pay the ATO from overseas by international bank transfer, through an international money remitter, or by card.
Answer →Trying to pay it off or refinance it away?
A specialist can tell you which option costs you least before you commit to one.
Can ATO debt be consolidated with other debts?
Yes, through a loan, not through the ATO. A consolidation loan or home loan refinance can pay out your ATO debt...
Answer →Tax debt loan vs ATO payment plan: which is cheaper?
Neither is automatically cheaper; it depends on the loan's rate and fees against 11.43% GIC.
Answer →How much does tax debt reduce my borrowing power?
There is no fixed percentage; it depends on how the lender treats the debt.
Answer →Can I get a business loan with ATO debt?
Yes, but the field narrows and the price rises. Major banks typically want ATO debt cleared or on a kept payment plan...
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