What is an ATO Default?
ATO Defaults are defaults listed by the ATO for Tax Debts owed. The ATO have the ability to lodge these if the amount owed to them is greater than $10,000 and you have not engaged with them to address it for 90 days or more. ATO Defaults will remain on your Credit File for 5 years. This is a relatively new ability for the ATO and it may see your business suffer reduced availabilities to both supplier credit as well as direct bank funding. These defaults need to be sorted quickly to enable your business to operate freely.
Can I still get a loan with an ATO default?
Definitely! Specialist lenders have products available that can see you borrow up to 95% of the valuation for both purchases and refinances if you have an ATO Default on your Credit File. These lenders are happy to pay the ATO directly from the loan proceeds enabling you to negotiate a payout figure with the ATO.
ATO Default Home Loan Summary
|Max LVR (Purchases)||95%|
|Max LVR (Refinances)||95%|
|Max Loan Size||$5,000,000 (up to 65% LVR)|
|Non Genuine Savings||Yes|
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