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ATO Debt on the Rise: How Northern Beaches Business Owners Can Navigate New Changes

  • Writer: Aron Cardona
    Aron Cardona
  • Nov 7, 2025
  • 3 min read

Are you a business owner on the Northern Beaches feeling the pressure of ATO debt? You're not alone. Recent changes from the Australian Taxation Office are set to significantly impact how businesses manage their tax obligations, and it's crucial for local entrepreneurs to understand what's coming and how to adapt.


At Mortgage Hub, your trusted mortgage broker Northern Beaches, we're seeing increasing concern among our clients regarding rising ATO debt and its potential ripple effects on accessing finance, including home loans.


Key Changes to ATO Debt Businesses Need to Know


The landscape for managing ATO debt is shifting, and these changes could directly affect your financial health and ability to secure lending:

  1. Non-Deductible ATO Debt from 1 July 2025: A significant change is on the horizon. From 1 July 2025, interest on ATO debt will no longer be tax deductible for businesses. This means the true cost of carrying outstanding tax debt will increase, making it even more vital to address it promptly. You can read more about this in this Yahoo Finance article.

  2. Increased ATO Powers for Larger Debts: For individuals with overdue debts exceeding $100,000 for more than 90 days, the ATO now has the power to lodge a judgment. This can severely impact credit scores and make it considerably harder to access future finance – from business loans to personal mortgages.

These developments highlight the need for proactive financial planning and expert advice. As your local mortgage broker Northern Beaches, we believe these changes will undoubtedly lead to more inquiries about consolidating ATO debts and exploring alternative lending options.


The Impact on Your Northern Beaches Business and Home Loan Prospects


For many business owners, particularly those on the Northern Beaches looking to invest in property or manage their existing home loan, unresolved ATO debt can become a major hurdle. Traditional lenders often view tax debt as a red flag, making it challenging to secure approval, even if your business is otherwise strong. This is where a specialist mortgage broker Northern Beaches can make all the difference.


How Mortgage Hub Can Help Northern Beaches Businesses with ATO Debt


We understand the unique challenges faced by self-employed individuals and business owners. Our solutions are designed to help you navigate these complex situations and secure the finance you need.

Here's how we can assist with ATO debt:

  • ATO Debt Consolidation: We can help you payout ATO debt, whether it's already on an arrangement or overdue. Our goal is to streamline your finances and reduce stress.

  • Flexible Payment Plans: We can explore options that allow your outstanding ATO debt to remain on a payment plan while still helping you secure other necessary finance.

  • Small Business Debt Restructure (SBR): We can assist with payouts related to Small Business Debt Restructures (SBR), providing a fresh start for your business. This is a new and vital solution for many.


Simplified Income Verification for Business Owners


We know that providing endless documents to traditional banks can be a nightmare for self-employed individuals. That's why we offer streamlined income verification processes:

  • 1 Year's Financials: We often only require one year's financials signed by your accountant – no need for tax returns, BAS, NOA, or lodged returns in many cases.

  • 6 Months BAS: We typically need 6 months of BAS printed directly from the ATO portal.

  • 6 Months Business Bank Statements: Your last six months of business bank statements help us get a clear picture.

  • Digital Accountant's Letter: Our AltDoc Xpress™ Digital Accountant's Letter simplifies the process, making it quicker and easier to verify your income.


Don't Let ATO Debt Derail Your Financial Future


The new ATO regulations are serious, but they don't have to define your financial future. Whether you're a seasoned entrepreneur or a burgeoning business on the Northern Beaches, understanding your options and acting proactively is key.

If you're concerned about ATO debt, struggling to access finance, or simply want to ensure you're prepared for the changes coming from July 2025, reach out to us today. As your dedicated mortgage broker Northern Beaches, Mortgage Hub is here to provide expert guidance and tailored solutions to help you achieve financial stability and growth.

 
 
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