Free tool
ATO debt refinance calculator
Compare an ATO payment arrangement with the general interest charge against refinancing the tax debt into a business loan.
| ATO payment arrangement | Refinance into a business loan | |
|---|---|---|
| Monthly payment | $3,713.79 | $3,841.03 |
| Interest over term | $9,131 (not deductible) | $12,185 (generally deductible) |
| Fees | Nil | $1,600 |
| Total cost | $9,131 | $13,785 |
| Other factors | Default risk, director penalty notice, arrangement can be cancelled | Clears the ATO account; lender assessment required |
Estimate only. GIC changes quarterly — check the current rate on ato.gov.au. Not tax advice.
How to read this
The ATO charges a general interest charge (GIC) on overdue tax, compounding daily. Refinancing turns the liability into scheduled repayments and can protect you from a director penalty notice, but a loan has its own cost. Enter both to compare.
General interest charge
The general interest charge is the ATO’s interest on unpaid tax, set quarterly and compounded daily. Since 1 July 2025 it is no longer tax deductible.