It’s that time of year when many Australians are busy preparing to lodge their annual tax returns. However, if you haven’t paid enough tax throughout the year, you may receive a tax bill soon after lodging your return.
While having a tax debt is not ideal, there are ways to repay your debt – even if you don’t have the cash up front.
Set up a payment plan
Depending on your circumstances, you may be eligible for a payment plan through the tax office.
This can seem like a simple solution, but it’s important to remember that interest may continue to accrue on the unpaid debt.
Like other loans, there can be consequences for failing to meet your payment obligations, and this could affect your credit score.
Refinance your home loan
If you’re a homeowner, you may be able to refinance and consolidate your tax debt into your home loan. As well as taking advantage of lower interest rates, this option can simplify your loan repayment arrangements.
Although many banks will not refinance tax debt, flexible lenders like Liberty can help you find the right loan for your needs.
Solutions for business
If you’re a business owner, you might want to consider a business loan to consolidate your debt and assist with cash flow.
Flexible lenders like Liberty can help businesses structure their finances to payout ATO debt and source additional funds for working capital.
A Liberty Adviser can help you to explore your options and find the repayment option that suits your individual needs.