Your ATO tax debt can NOW affect your credit rating
Up until now, ATO tax debt did not affect your credit rating with Veda or Dunn and Bradstreet.
However, from the 1st July 2017 under new legislation passed, the ATO will now tell Credit Rating Bureaus about businesses that have not “effectively engaged” with it about their tax debts.
This is a huge change and it is now more important than ever that you keep on top of your tax debt!
Initially, the measure will only apply to businesses with tax debts over $10,000 that are at least 90 days overdue.
If you have an ATO tax debt, you will need to make a payment arrangement and make sure that the payments are made on time, including future commitments due on time. While the initial rollout is for larger debts, in coming years you can probably expect these measures to be rolled out for much lower debts if the future.
ATO Tax Debt implications
Some issues you could encounter by having a Black mark / ATO Default on your credit rating are problems getting;
- Home loans
- Business loans
- Credit cards
- Vehicle and equipment leases
- Personal Loans
These issues will have an effect on your credit file up to 5 years and are easily avoidable if you stay on top of your tax debt.
If you are experiencing cash flow issues and need assistance paying out tax debts, please contact our office sooner rather than later.
How we can help you clear your ATO Tax Debt
We can assist with the following:
- Short term cash flow to pay out tax debts
- Refinance your clients home loan to payout tax and business debts
- Low doc option available up to 80% Loan to value ratio with accountant’s declaration only
- Unlimited cash out on refinances for any worthwhile personal or business use
- Credit impairments catered for
- Must have 1-year minimum ABN registered to qualify
- Interest rates from 4.89% Per annum Principle and Interest Low doc option (5.14% Comparison Rate on $300,000 Loan over 30 Years)
- Our loans are not Mortgage Insured (We self-insure)
Over 20 years providing Australians with Non-Bank lending. All loans must be real estate secured.