What is the current ATO General Interest Charge (GIC) rate?

The ATO General Interest Charge rate for the July to September 2026 quarter is 11.43% per annum, and it rises to 11.51% per annum for the October to December 2026 quarter. This interest is calculated on a daily compounding basis for any tax amount that remains unpaid after the due date.

Does the ATO report business tax debt to credit reporting bureaus?

Yes, the ATO can disclose your tax debt information to credit reporting bureaus if you owe at least $100,000 that is more than 90 days overdue. This only occurs if the business is not effectively engaging with the ATO to manage the debt through a payment plan or other arrangement.

Is the ATO General Interest Charge (GIC) still tax-deductible?

No, general interest charges (GIC) and shortfall interest charges (SIC) incurred from 1 July 2025 are no longer tax-deductible for individuals or businesses. This policy change makes taking out a business loan more cost-effective because the interest on a commercial loan remains a deductible business expense.

Can I get a business loan for tax debt with bad credit?

Yes, specialised non-bank lenders in Australia offer tax debt loans to businesses with credit defaults, judgements or low credit scores. These lenders focus on your business's recent bank statements and overall cash flow rather than relying solely on your credit history.

How long does it take to get a tax debt loan funded?

Unsecured business loans for tax debt can typically be approved and funded within 24 to 48 hours of a completed application. If you apply for a secured loan using property as collateral, the process usually takes one to two weeks due to the requirement for a formal valuation and legal documentation.

Can I use a business line of credit to pay the ATO?

Yes, a business line of credit can be used to pay off ATO debt and provides the flexibility to repay the funds as your cash flow allows. This option is often preferred for managing recurring tax obligations like BAS or GST payments as you only pay interest on the funds you draw down.