ATO tax debt is proving to be a strong early warning signal of business financial stress.

According to CreditorWatch’s June Business Risk Index, businesses with ATO tax debts exceeding $100,000 experienced an average insolvency rate of 21.9% over the past 12 months – more than 31 times the national average of 0.7%.

As at 30 June, 35,361 businesses held tax debts above this threshold, with more than half (53.8%) being sole traders who typically operate with:

• Tighter cash margins

• Lower buffers than larger businesses

Large outstanding tax debts can make it harder to manage cash flow and focus on growing your business. Addressing tax debt early can help protect your business from escalating financial pressure as well as potential ATO enforcement action.

Direct Credit Home Loans offers ATO tax debt refinancing for eligible borrowers, including sole traders.

Refinancing your residential or commercial property could allow you to consolidate your ATO tax debt into a single loan with more manageable repayments, helping you regain control of your business finances.

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Don’t let tax debt put your business at risk.

Direct Credit Home Loans provides ATO tax debt refinancing loans to help businesses clear outstanding tax debt. Contact us on (07) 3726 1124 or email [email protected] to discuss your circumstances.