Debt Consolidation Calculator

Debt Consolidation Calculator

Stay informed with MoneyTips

Get practical financial information, news, guides and resources.

Knowledgebase
Refinancing:
The process of obtaining a new mortgage to replace an existing one, often to secure a lower interest rate.
Debt Consolidation Australia :: News
SHARE

Share this news item!

Surge in Business Loan Applications Amid ATO Debt Rule Changes

Understanding the Impact of ATO's New Tax Debt Regulations on SMEs

Surge in Business Loan Applications Amid ATO Debt Rule Changes?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Small and medium-sized enterprises (SMEs) across Australia are experiencing a significant shift in financial strategy due to impending changes in tax debt regulations by the Australian Taxation Office (ATO).
Effective from July 1, general interest charges (GIC) and shortfall interest charges (SIC) on tax debts will no longer be tax-deductible.
With the GIC rate currently at 11.17% and compounding daily, this policy change has prompted a surge in business loan applications as SMEs seek to refinance or consolidate their tax debts before the new rules take effect.

According to data from the Loan Market Group (LMG), there has been a 486% increase in business finance inquiries related to tax debt in the 2025 financial year compared to the previous year. This dramatic rise underscores the urgency among business owners to address their tax liabilities proactively.

Finance brokers within the LMG network have observed a notable shift in client behavior. Andrew Vitucci, a finance broker at My Lending Specialist, noted that the ability to claim interest as a deduction previously provided a cushion for small business owners. With this safety net now removed, clients are prioritizing the consolidation or refinancing of their tax debts to mitigate potential financial strain.

Similarly, Elisha Zejfert, Managing Director of Savvi Lending, highlighted the growing sense of urgency in the market. Business owners are increasingly aware that inaction is no longer viable, especially for those already facing cash flow challenges. This trend is expected to continue into the new financial year as more SMEs recognize the long-term cost implications of maintaining tax debt under the new regulations.

Lenders are also reporting an uptick in applications related to ATO debt. Yanir Yakutiel, CEO and founder of Lumi, emphasized the crucial role brokers play in educating SMEs about the potential costs associated with the upcoming changes. Many small businesses may not fully comprehend the financial impact, making it essential for brokers to provide clear and actionable guidance.

For SMEs, this development presents both challenges and opportunities. While the removal of tax deductibility for interest charges increases the cost of holding tax debt, it also serves as a catalyst for businesses to reassess their financial strategies. Proactively seeking refinancing or debt consolidation options can lead to more manageable repayment structures and potentially lower interest rates, thereby improving overall financial health.

Business owners are encouraged to consult with financial advisors or brokers to explore suitable refinancing options tailored to their specific circumstances. By taking timely action, SMEs can navigate these regulatory changes effectively, ensuring sustained financial stability and growth.

Published:Thursday, 9th Oct 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Finance News

Why the Latest Refinancing Push Matters if You Have Multiple Debts
Why the Latest Refinancing Push Matters if You Have Multiple Debts
15 Sep 2026: Paige Estritori
The latest lending updates point to a familiar pattern: many Australians are still reviewing their loans, refinancing where they can, and looking for ways to bring borrowing costs under control. With household budgets stretched by groceries, rent, utilities, insurance and transport, even a modest reduction in repayments can feel meaningful. But for people carrying several debts at once, the decision to refinance or consolidate needs more care than simply chasing the lowest advertised rate. - read more
Why Thin Savings Can Turn Everyday Bills into Debt Stress
Why Thin Savings Can Turn Everyday Bills into Debt Stress
08 Sep 2026: Paige Estritori
Recent consumer finance reporting has again highlighted a problem many Australians already feel in their weekly budget: emergency savings are not stretching far enough. When the cost of groceries, rent, mortgage repayments, utilities, fuel and insurance remains elevated, even a relatively ordinary surprise bill can push a household towards credit cards, buy now pay later, personal loans or payment extensions. - read more
Why Hardship Complaints Matter When Debt Feels Unmanageable
Why Hardship Complaints Matter When Debt Feels Unmanageable
01 Sep 2026: Paige Estritori
Fresh financial complaints reporting has again highlighted a difficult reality for many Australian households: when repayments start to fall behind, the problem is rarely limited to one bill. Mortgage stress, credit card balances, personal loans, car finance, buy now pay later commitments and utility arrears can all collide at once, leaving borrowers unsure which creditor to call first or what support they are entitled to request. - read more
Why Buy Now Pay Later Can Become a Debt Stress Signal
Why Buy Now Pay Later Can Become a Debt Stress Signal
25 Aug 2026: Paige Estritori
Recent consumer finance reporting has put buy now pay later back in the spotlight, with more Australians appearing to use short-term credit to manage everyday costs such as groceries, utilities, fuel and household essentials. On the surface, splitting a purchase into smaller instalments can feel manageable. The concern is what happens when several small commitments land at the same time as rent, mortgage payments, credit card minimums, car finance and personal loan repayments. - read more
What the Latest RBA Hold Means for Australians Juggling Debt
What the Latest RBA Hold Means for Australians Juggling Debt
18 Aug 2026: Paige Estritori
The Reserve Bank of Australia’s latest decision to leave the cash rate unchanged gives households a moment to breathe, but it does not remove the pressure many borrowers are already feeling. For Australians carrying credit card balances, personal loans, car finance or buy now pay later debt, a steady cash rate can feel like welcome news after a long period of higher borrowing costs. - read more


Debt Consolidation Articles

How to Use a Debt Consolidation Calculator
How to Use a Debt Consolidation Calculator
A debt consolidation calculator can help you compare your current debts with a possible new loan by estimating repayments, interest and total cost differences. The result is only as useful as the assumptions you enter, so it is important to understand the inputs, outputs and limitations before relying on the estimate. - read more
How to Track Monthly Expenses for Better Debt Management
How to Track Monthly Expenses for Better Debt Management
In the realm of financial wellness, tracking your monthly expenses is a crucial step towards effective debt management. Many Australians grapple with the challenges of keeping their debts under control, particularly in a dynamic economic environment. - read more
Managing Credit Card Debt in Tough Economic Times
Managing Credit Card Debt in Tough Economic Times
When living costs rise or income becomes uncertain, credit card debt can become harder to manage. Understanding how interest, repayments, budgeting, consolidation and hardship support work can help Australians make more informed decisions about reducing card balances and avoiding further debt. - read more
Debt Negotiation 101: How to Lower Interest Rates and Reduce Payments
Debt Negotiation 101: How to Lower Interest Rates and Reduce Payments
High-interest debt can feel like a relentless cycle for many in Australia, often making it challenging to gain financial ground. Whether it's credit card debt, personal loans, or other forms of borrowing, the compounded interest can quickly become overwhelming. Fortunately, debt negotiation presents a viable solution for those caught in this dilemma, offering a ray of hope to reduce financial burden. - read more
How to Avoid Falling Back into Debt: Post-Consolidation Best Practices
How to Avoid Falling Back into Debt: Post-Consolidation Best Practices
Welcome to our guide on how to avoid falling back into debt after consolidating your debts. Debt consolidation can be a fantastic way to manage multiple financial obligations, combining them into a single, more manageable payment plan. But the journey doesn’t end there. - read more