ATO Tax Debt Changes from 1 July 2025 – What Business Owners Need to Know

From 1 July 2025, the rules around deductibility of ATO tax debt are changing. Businesses will no longer be able to claim deductions on interest incurred from outstanding ATO tax debts.

For many businesses already managing cash flow pressures, this shift could mean higher effective costs if tax liabilities remain unpaid.

What Does This Mean for Businesses? - ATO Tax debt

Previously, interest charged by the ATO on overdue tax debts could be claimed as a business expense. From July 2025, this option will no longer be available.

That means every dollar of interest charged by the ATO will now come straight off your bottom line.

Why This Matters

• Businesses with ongoing or legacy tax debt will see increased costs.

• Cash flow will become tighter if tax arrears are not managed proactively.

• Relying on the ATO as a source of short-term credit will become even more expensive.

How Assurity Capital Can Help

At Assurity Capital, we work with business owners to refinance ATO tax debt into structured funding facilities that:

• Replace non-deductible ATO interest with competitive lending options.

• Free up cash flow and reduce financial strain.

• Allow businesses to spread repayments more effectively.

• Support business stability while keeping the ATO onside.

By refinancing, you’re not just managing debt — you’re protecting your business from unnecessary costs and preserving capital for growth.

Next Steps

If your business has outstanding or ongoing ATO obligations, now is the time to act. Waiting until after 1 July 2025 could mean paying more than you need to.

📞 Contact Assurity Capital on 02 9389 1077 or ✉️ email scenario@assuritycapital.com.au to discuss your refinancing options today.