poppyfinance

Business loans to pay an ATO tax debt or BAS.

Pay a larger-than-expected BAS, PAYG or income tax bill on time and spread the cost over fixed weekly repayments. Here’s how it works, and how to decide if it’s the right move.

Check eligibility Estimate repayments

Takes about 3 minutes. Checking eligibility doesn’t involve a credit check.

Check your ATO options first

Before borrowing, look at what the ATO offers. For many businesses, an ATO payment plan is a reasonable option, and you can set one up online for some debts. Compare the total cost of a payment plan, including any interest the ATO charges, with the total to repay on a loan.

Your accountant or BAS agent can help you compare. We’d rather you choose the cheaper option than take a loan you don’t need.

Why some businesses use a loan instead

  • To clear the debt in full and keep a clean record with the ATO
  • Because the ATO can charge interest on unpaid tax debts, which adds to the cost of paying late
  • Because the ATO can report some larger overdue business tax debts to credit reporting bureaus
  • To avoid the ATO taking the debt from future refunds or taking further action
  • To keep day-to-day cash flow free for stock and wages

What a Poppy loan can cover

  • Quarterly or monthly BAS, including GST and PAYG withholding
  • PAYG instalments and company income tax
  • Superannuation guarantee payments
  • Existing ATO debts you want to clear in full

Plan for the next bill

If a tax bill caught you by surprise, it’s worth setting aside GST and PAYG in a separate account each week so the next one doesn’t. A loan solves this quarter; a separate tax account helps with every quarter after it.

Who can apply

  • A registered business in Australia (with an ABN) or New Zealand (with an NZBN)
  • Trading for 6 months or more
  • Around $10,000 or more in monthly sales
  • A business bank account with regular deposits we can see
  • The loan is for a business purpose, not personal or household spending
Illustrative example · Gold Coast salon How a salon could pay a larger-than-expected BAS on time A $25,000 loan over 9 months, and why we suggest checking ATO options first. See the example →

Common questions

Can I get a business loan to pay my BAS?

Yes. Paying a BAS or other business tax debt is a business purpose. We suggest comparing with an ATO payment plan first.

Can I get a loan if I already have an ATO payment plan?

Possibly. Tell us about it in your application. We’ll look at whether the loan repayments are affordable alongside your other commitments.

Is a loan cheaper than an ATO payment plan?

Not always. Compare the total you’d pay under an ATO payment plan with the total to repay on your loan offer, and ask your accountant if you’re unsure.

Related

Working capital loansCover stock, wages and seasonal gaps. Short-term business loansTerms from 3 to 24 months, repaid weekly. Hair and beauty salon loansChairs, fit-outs, stock and tax bills. Business loan calculatorEstimate weekly repayments and total cost.

See what your business could borrow

Takes about 3 minutes. Checking eligibility doesn’t involve a credit check and doesn’t commit you to anything.

Check eligibility Estimate repayments