Broker guide

Writing ATO tax-debt deals: what brokers need to know in 2026

ATO tax debt has become one of the strongest deal sources in commercial finance. The numbers explain why: $54.2 billion in collectable debt, an 11.43% general interest charge that is no longer deductible, and an ATO that has returned to firm enforcement.

Last updated: 20 August 2026

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The 2026 landscape, with sources

The debt book is enormous. Collectable tax debt stands at $54.2 billion, with $35.9 billion owed by around 1.3 million small businesses - an average of roughly $27,000 each (ANAO audit, June 2026).
The GIC is punitive and no longer deductible. The general interest charge is 11.43% p.a. for July-September 2026, compounding daily, and has not been tax-deductible since 1 July 2025. For many businesses, deductible finance at commercial rates now compares very favourably with carrying ATO debt, a comparison for the client and their accountant to make.
Enforcement is real. Director penalty notices exceeded 84,000 last financial year, with debts disclosed to credit bureaus and garnishee notices in active use. The ATO's 2026-27 corporate plan puts debt "into every taxpayer interaction".
The soft options ended. Concessional payment plans from the fuel-relief period finished on 30 June 2026, and payday super from 1 July tightens SME cash flow further.

Writing the deal

Move before the DPN

Options narrow sharply once a director penalty notice lands. The best outcomes go to clients refinanced while the debt is still just a number on a statement.

Know the lender map

Major banks rarely touch ATO arrears. These deals live with non-bank and private lenders who price the risk rather than declining it. Secured against property, terms improve dramatically.

Capture the position early

Debt amount, whether a payment plan exists and its status, other secured debt, security available, and time pressure. That data decides lender and structure before the first call ends.

Put the GIC maths on the table

11.43% compounding daily and non-deductible, versus a deductible facility. Lay out both numbers and let the client and their accountant draw the conclusion.

Where the deal flow comes from

Business owners in this position search for help late at night and act fast when they find it. Our ATO tax-debt leads are owners with $50K+ liabilities who have told us their situation and asked for finance options, SMS-verified and sold to one broker only.

Common questions

Which lenders accept ATO tax debt deals?

Mostly non-bank and private lenders, with appetite varying by security offered, business profile and whether a payment plan is in place. Major banks generally treat ATO arrears as a decline trigger rather than a pricing question.

Is refinancing ATO debt better than an ATO payment plan?

They solve different problems and this is a decision for the client with proper advice. The comparison points are the 11.43% non-deductible GIC and default risk on one side, and the cost and security requirements of finance on the other. Since the GIC lost deductibility, finance wins that comparison more often.

What does a director penalty notice mean for a deal?

Urgency, and sometimes personal liability that changes the client's options entirely. Deals are far cleaner before a DPN issues, which is why early contact with these borrowers matters so much.

Does La Vitesse provide tax advice with these leads?

No. We generate and verify the enquiry; advice belongs to the client's accountant and the broker's own process. Leads are an introduction to a business owner who wants finance options, nothing more.

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