Julian Finch: Key business tax deductions dumped - Loans soaring
Announcement posted by Invigorate PR 26 Jun 2025
Business owners across Australia are being urged to act quickly as the cost of carrying a tax debt with the Australian Taxation Office continues to rise sharply, fuelling a surge in demand for business loans designed to pay off ATO liabilities.
Julian Finch, founder and CEO of Finch Financial said the ATO's general interest charge, currently 11.17 per cent and compounding daily, is one of the most financially damaging debts a business can carry, particularly for small to medium enterprises.
"ATO interest rates are now more aggressive than most credit cards and continue to compound daily. What many businesses don't realise is that this debt is also no longer tax deductible, which puts them in an even worse financial position," Finch said.
With decades of mortgage brokerage and commercial lending experience, Finch has helped thousands of Australians successfully navigate the lending process. Finch Financial has one of the highest loan approval rates in the country, often securing approvals within minutes.
Finch is warning businesses there is a smarter alternative to paying ATO interest: sourcing a business loan to pay off the ATO, as interest on that commercial loan remains tax deductible.
"We're seeing a sharp increase in business owners coming to us for strategic finance solutions to clear ATO debt. By converting this into a commercial loan, they reduce the cost of interest, reclaim tax deductibility and regain control of their cash flow," Finch said.
Coco Hou, CPA and CEO of Platinum Accounting Australia, agrees that the changes are a wake-up call for business owners.
"These changes will mean it costs significantly more to carry a tax debt," Hou said.
"While many taxpayers won't feel the pain until next tax time, it's already starting to impact the bottom line. With interest at over 11 percent and compounding daily, the ATO is not the kind of creditor you want hanging over your business."
Hou adds that many businesses are not aware that refinancing their tax debt with a commercial loan can deliver real advantages.
"Unlike ATO interest, loan interest remains tax deductible, so there is a real opportunity to reduce cost and avoid the stress of mounting tax obligations. The key is to act early and not let the debt snowball," she said.
Finch urged business owners with unpaid tax bills to seek both accounting and financial advice now, before the new financial year creates even more pressure.
"This is not the time to delay. You can't afford to be passive when the interest is compounding every single day," he said.
"Make sure you are smart with your lending decisions as well. Speak to a broker with experience in commercial lending. There are many options available with differing interest rates. Making the right decision will not only help keep your business afloat it will also ensure your debt issue doesn't start to unravel other parts of your life or put your home at risk."
About Finch Financial Services
Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.
