Received an ATO debt notice

ATO letters escalate. A reminder becomes a demand, and a demand can become a garnishee notice, a director penalty notice or a report to credit bureaus. The earlier you act, the more options you have.

Step one: read it properly

Note three things: the amount, the type of notice and any date by which you must act. Then contact your accountant. If the notice is a director penalty notice, the type of notice and the timeframe determine what can be done, so do not put it aside.

Common notices and what they mean

Notice	What it does	Urgency
Reminder or demand	Asks for payment of an overdue amount	Act within the timeframe given
Garnishee notice	Directs a bank or customer to pay the ATO directly	High, cash flow can stop
Director penalty notice	Can make directors personally liable for certain amounts	High, strict timeframes
Notice of intent to disclose	Warns the debt may be reported to credit bureaus	High, 28 days’ notice

Credit bureau reporting is one of the ATO’s firmer tools. Broadly, it can apply to an ABN holder owing $100,000 or more that has gone unpaid for over 90 days without the business engaging with the ATO, and the ATO gives 28 days’ notice first.

See what is on offer before you commit to anything. The enquiry is free, runs no credit check and does not lock you into a thing.

Your options

1. Engage with the ATO. Many issues can be managed by talking early, including setting up a payment plan. Debts of $200,000 or less can usually be put on a plan online.
2. Pay from cash if you can without starving the business.
3. Fund the debt. An ATO debt loan can clear the balance, often paid directly to the ATO at settlement.

Our comparison of payment plans and business loans explains the trade-offs, including the change that makes GIC incurred from 1 July 2025 non-deductible.

Speed matters

Notices with deadlines leave little room for slow processes. On a complete file, approval within the hour is possible and funding within 24 hours can happen once documents are signed. Property-secured funding from $20k to $5m, with no valuation, often suits larger tax debts, and interest can be paid up front or capitalised while the business recovers.

Keep lodging

Whatever you choose, keep lodging BAS and returns on time and pay new tax as it falls due. Read director penalty notices explained for more background.

Key takeaways

• Read the notice and note any deadline straight away
• Talk to your accountant and the ATO early
• Payment plans suit manageable debts; funding suits larger or urgent ones
• Director penalty and garnishee notices have strict timeframes

From enquiry to an answer

Everything starts with a short enquiry: how much, what for, how long you have traded, roughly what you turn over and whether there is property in the picture. A person, not a scoring engine, reads it and calls you. They ask for the evidence that actually decides the loan, explain the realistic options and give you the full cost in writing. Nothing goes ahead, and no credit check is run, until you say yes. On a complete file, approval within the hour is possible. Every step is explained as it happens, so you always know what is being checked and why.

When borrowing helps, and when it does not

Not every cash problem is a funding problem. Sometimes the better fix is a conversation with a supplier, a payment plan with the ATO, chasing an overdue invoice or adjusting prices. Funding earns its place when it solves a timing gap or unlocks an opportunity worth more than its cost. We will tell you honestly which situation you are in.

Paperwork worth gathering

Have these within reach and the process moves quickly, because each one answers a question the assessor would otherwise have to come back and ask:

• ABN, business structure and how long you have traded.
• Recent business bank statements, ideally shared online.
• What the money is for and how it will be repaid.
• Any tax debt, default or arrears you should mention up front.
• Contact details for anyone else who would need to sign.

Help us match you first time

The enquiry asks for the amount, the purpose, how long you have traded, your monthly revenue, your credit history, your state and whether you own real estate. Each answer steers your enquiry towards the right option. Accurate answers let the first call move straight to solutions. Rounded-up turnover or a credit history that turns out to be different from the form means starting again, which costs everyone time.

Talk to a real person

To see what is available for your business, complete the 60-second enquiry. It is free, there is no credit check and it goes to one team, not a lead marketplace. Please be precise with the amount, turnover and credit history. Those answers shape everything that follows, and getting them right is the single best way to get a fast, useful answer.