If you have any payment plans or ATO debt, this is a must-read.
A few months ago, we updated our customers about a potential change from the ATO regarding the deductibility of interest on ATO debts.
This proposed legislation is now LAW.
Key Changes Effective 1 July 2025:
From 1 July 2025, businesses will no longer be able to claim deductions for:
- General Interest Charges (GIC)
- Shortfall Interest Charges (SIC)
It’s crucial to start planning now to minimise the impact of this change on your business’s financial strategy.
More information can be found here: ATO Official Announcement
Impact on Businesses:
The ATO has been pressuring businesses to repay debts in short periods through aggressive payment plans, creating cash flow pressure.
Now, with the interest on these debts no longer being deductible, there’s additional strain on businesses.
Recommended Actions:
It’s critical for businesses to review options to refinance ATO debts into commercial loan facilities to achieve:
- Deductible Interest Claims
- Lower Repayments due to longer terms
- Reduced Cash Flow Pressure
We have a window of opportunity to address these issues before the law comes into effect on 1 July 2025.
How Equipfin Can Help:
To help you navigate these changes, we have access to:
- Unsecured business loans starting at just 12.95% – a limited-time offer that could help restructure your tax debt or address other business needs (offer ends 30 April 2025).
- Asset equity release products starting as low as 8.99%, allowing you to raise money against vehicles you currently own.
These are excellent opportunities to secure funding before the policy takes full effect.
Why Act Now?
By acting now, you can still benefit from tax-deductible interest and secure the most favorable financing options before the changes take effect.
Don’t wait until it’s too late – contact us today to discuss your options and ensure your business remains financially agile and well-prepared.
Disclaimer: Please note that Equipfin are not accountants or tax specialists, and customers should always seek advice from their accountants before making any decisions. The above information is publicly available and can be found on the ATO website: www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/deny-deductions-for-ato-interest-charges
