Tax Debt Relief Western Sydney
Tax debt relief in Western Sydney refers to the general ways a business might manage or clear an amount owed to the Australian Taxation Office, such as contacting the ATO about the debt. Some property-owning businesses also look at property-secured business finance, and where a loan is approved, HomeSec can send the funds directly to the ATO. No single option suits every business.
If property-secured finance is one of the options on the table, you can see if you qualify. Eligibility depends on the lender’s assessment.
What can tax debt relief mean for a Western Sydney business?
“Tax debt relief” is a broad phrase covering the different ways a business might deal with money it owes the ATO, and the options depend on each business’s circumstances. Some paths involve working with the ATO itself. Others involve funding the debt from another source.
The ATO’s business pages are the place to find current information on business tax debts and the approaches the ATO describes. The government’s business.gov.au site also provides general information on finance and funding for Australian businesses.
This guide is general information only. It does not suggest that any option will reduce or remove a particular debt. For a plain-language overview of the choices and what each one does, see help with an ATO debt.
What general options exist when a business owes the ATO?
A business can contact the ATO directly about a debt, and the ATO publishes information about how it approaches business debts. Reading that material is a sensible starting point before weighing other paths.
Property-secured business finance is another way some businesses fund a tax debt, provided there is a genuine business purpose and real-estate security to offer. HomeSec offers tax debt loans to pay the ATO on this basis. This is one option among several and is not a recommendation for any particular business.
Moneysmart has general information on business borrowing and loans for anyone comparing approaches.
How can property-secured business finance be used for a tax debt?
A property-secured loan from HomeSec must be for a business or investment purpose, and paying a business’s tax debt is one example of a business purpose. Once a loan is approved, the money can go into the borrower’s account or straight to the ATO.
Loans range from $20,000 to $5,000,000. Repayments can be interest-only. Alternatively, interest can be capitalised for up to 6 months, which means there may be nothing to pay during the first 6 months.
There is no minimum or maximum term, and loans can run from one month. The borrower sets the term and can extend it or repay early. A loan does not resolve a tax debt on its own terms, and every application is assessed on its merits.
Who can apply, and what security is used?
Companies, trusts and sole traders can borrow, including start-ups. The security must be real estate, which can be residential, commercial, rural or vacant land.
The loan can sit as a first or second-ranking mortgage, and the borrower’s own home can be the security. More than one property can secure a single loan through cross-collateralisation.
HomeSec lends almost anywhere in Australia, in metro, regional and rural areas, so property in Western Sydney can be considered. For more on how security in New South Wales is treated, see private lenders in Sydney.
Loan-to-value ratios
The maximum LVR is 80% on residential security and 70% on commercial. LVRs are lower on large acreage and may reduce on properties worth less than $800,000.
What is not required
HomeSec does not ask for cashflow records, financial records, a sworn valuation, a minimum trading period or a serviceability test. This can matter for a business whose tax paperwork is behind.
Credit history
Credit history is considered, but it is never disqualifying on its own. Defaults, arrears and a thin credit file do not rule a borrower out. If the ATO has signalled it may report a debt, see what happens when the ATO intends to report a tax debt to credit bureaus.
When it is not a fit
HomeSec is not a fit where there is no real-estate security to offer. It also cannot lend where the loan would sit third behind two existing mortgages, or where the money is for personal or domestic purposes.
What fees and costs apply, and how flexible are repayments?
Costs are limited to a small commitment fee and interest, with no valuation, monthly, exit or extension fees. The commitment fee is payable only once a loan is conditionally approved.
- Valuation: no valuation fee, because HomeSec assesses property value itself and does not use valuers.
- Ongoing: no monthly, line or account-keeping fees.
- Exit and extension: no early exit fees, and no rollover fees, legal fees or loan rewrites to extend.
- Interest: the rate is set for each scenario and priced against the loan amount and the security.
The loan can be repaid at any time without penalty, and any unused months of capitalised interest are rebated. Once the capitalised-interest period ends, ad-hoc paydowns are available from $10,000. HomeSec does not take daily or weekly direct debits.
How does the application process work?
The process has three stages: a call, conditional approval, and the release of funds. Approval is never promised, and each application is subject to assessment.
Step 1: describe the deal. The borrower explains the amount, the purpose, the timing, the property and how the loan will be repaid. A Lending Manager gives an indicative answer on that call, usually within minutes. The seven details needed are:
- Roughly what the property is worth (the owner’s own estimate is fine)
- The property address
- What is owing on it, and to whom
- How much to borrow
- For how long
- How many people are on the title
- What the money is for
Step 2: conditional approval. HomeSec asks for photo ID, a rates notice and the most recent mortgage statement, and this step takes about fifteen minutes.
Step 3: funds released. Funds can be released in as little as 24 hours from a clean, complete scenario, with a typical range of 24 to 72 hours.
What is HomeSec’s regulatory position?
HomeSec Business Finance Pty Ltd (ABN 50 150 013 513) has been lending since 2004. It provides credit wholly and exclusively for business and investment purposes.
Credit for those purposes is not regulated under the National Consumer Credit Protection Act 2009 (the NCCP Act), and the protections available to consumer borrowers do not apply. For the same reason, HomeSec cannot fund the purchase of a residential property in a personal name, because that is regulated consumer credit under the NCCP Act.
HomeSec is a member of CAFBA, SBAA and VCCI. The team can be reached on 1300 93 83 87, Monday to Friday, 8:30am to 5:30pm Melbourne time.
Key takeaways
- Tax debt relief covers several possible paths, and the ATO’s business pages explain its approach to business debts.
- Property-secured business finance is one way some businesses fund a tax debt, and approved funds can be paid directly to the ATO.
- HomeSec lends $20,000 to $5,000,000 against real estate for business purposes, with an open term.
- Credit history is considered but is not disqualifying on its own, and no financial records or serviceability test are required.
- Every application is subject to assessment, and approval is not promised.
FAQ
Can a business loan be used to pay a tax debt to the ATO?
Yes. Paying a business tax debt is a business purpose, and a business purpose is the one thing HomeSec requires. The loan must also be secured by real estate.
Can loan funds be paid directly to the ATO?
Yes. Approved funds can be paid to the borrower’s account or straight to the ATO.
Does a poor credit history rule out a business with tax debt?
Not on its own. Credit history is considered, but defaults, arrears and thin files do not rule a borrower out.
Can a home in Western Sydney be used as security for a business loan?
The borrower’s home can be the security, on a first or second-ranking mortgage. HomeSec lends across metro, regional and rural Australia. The loan must still be for a business purpose, not a personal or domestic one.
How long does it take for funds to be released?
Funds can be released in as little as 24 hours from a clean, complete scenario, and the typical range is 24 to 72 hours. Every application is subject to assessment.
The next step is a short conversation about the tax debt and the property behind it. Have the seven details ready: rough property value, address, what is owing and to whom, the amount, the term, the number of people on title and the purpose. It takes only a few minutes to start your application, and eligibility depends on the lender’s assessment.
This is general information only and does not take into account your objectives, financial situation or needs. All applications are subject to lending criteria, assessment and approval. Fees and charges may apply.