Is your business tax debt becoming a burden?

03 Feb 2025

3 read min

Self-employed and feeling stressed about paying off your business tax debt?

RedZed could be the knight in shining armour you’ve been searching for.

Outstanding business tax debt is a common concern for Australian small business owners. In 2024, it was reported that 65 per cent of all collectable debt owed in Australia (which at the time equated to $32.5 billion) was related to small business.^[1]

As a result, the Australian Tax Office (ATO) has been clamping down on ballooning business tax debt and warning businesses to engage with their tax and super obligations to avoid having their debts disclosed to credit reporting agencies.^[2]

The not-so-good news

If your tax debt is disclosed to a credit reporting agency, it could seriously impact your ability to secure a loan and harm your supplier relationships.

What could a tax debt disclosure mean for you?

	Credit reporting default
	Impaired borrowing capacity
	Loss of suppliers
	Roadblocks to opening trade accounts

The good news

We have loan options available to help clear tax debts in full. In fact, our standard residential loans and commercial loans can all be used to pay out ATO debts (excluding SMSF).

We’ve updated our credit impairment and ATO default criteria, meaning some of our loan options now accept and clear ATO defaults, regardless of size or time frame!

We don’t credit score.
We have solutions for people who have:

· ATO debts, as well as credit blemishes

· A history of late payments

· A recent ATO default listing on their credit report

RedZed cares about Aussies who are building small businesses. Unlike the big banks, we understand that cash flow issues can arise and bills pile up, making it challenging to maintain consistent tax payments. That’s why we have a long history of providing tax debt solutions to the self-employed.

If you’re at risk of tax debt disclosure, or just keen to clear your business tax debt as soon as possible, contact your local mortgage broker or call our team on 1300 722 462.

Want a tax debt funding example? Meet Nicholas.

[1] ATO chasing small business GST and income tax debts worth billions

[2] ATO reminds businesses to pay before they disclose their debts

Written by

Ellen Brennan

Senior Content and Communications Manager

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