ATO tax debt just got more expensive
From 1 July 2025, the Australian Tax Office (ATO) no longer allows tax deductions for interest on overdue tax debts, including the General Interest Charge (GIC) and Shortfall Interest Charge (SIC).
Why this matters
For medical professionals: Without tax deductibility, ATO repayment plans now carry significantly higher after-tax costs, and typically must be paid off over 2 years, putting a strain on your cashflow. If you’re carrying unpaid ATO debt, now is the time to consider alternative, tax-deductible* finance solutions tailed to your needs.
For accountants and brokers: With ATO repayment plans now carrying higher after-tax costs, and most banks unwilling to finance tax debt, clients are left with fewer options. Medpro Finance provides an alternative, tax-deductible* solution that can help clients manage their tax obligations more effectively and maximise their available cashflow.
Medpro Finance vs ATO
Leaving your tax debt with the ATO now comes at a much higher cost:
- ATO interest of around 11% is no longer deductible, meaning taxpayers now wear the full cost with no offset
- ATO repayment options are less flexible and often require faster paydown than tailored lending solutions
- Most banks won’t lend if you have an outstanding tax liability
Medpro Finance offers medical professionals and their advisers a smarter alternative:
- Tax deductible interest payments*
- Longer repayment terms
- Fast approvals with a straightforward process
- Tailored tax debt solutions banks typically can’t provide
Eliminating tax debt from your portfolio will improve your ability to borrow for other purposes.
How it works?
Taking control of your tax debt starts with a simple process. Medpro Finance works with you to provide fast, tailored finance that suits your situation.
1. Enquire – tell us about your situation
2. Seek approval – we provide fast assessment and tailored solutions
3. Clear your tax debt – and take back control of your finances
Disclaimer
This information is general in nature and does not take into account your personal circumstances. Medpro Finance does not provide tax advice. Please consult your accountant or tax adviser for advice specific to your situation.
*Subject to your circumstances. Please seek independent tax advice.
Talk to the Medpro Finance team today
Call us on 02 9231 1333 or email us at info@medprofinance.com.au