Does payroll tax debt affect my borrowing?
An outstanding payroll tax debt does not automatically stop you borrowing, though lenders treat it much the way they treat ATO arrears and they will want the story behind it. What matters is whether the debt has been disclosed, whether a payment arrangement is already in place and whether the business trades well enough to clear it inside a sensible period. Debt that surfaces later in the process is the far bigger problem.
How lenders view it
State revenue debt sits alongside ATO debt in a lender’s mind as money owed to a government creditor that can escalate quickly. A recent assessment being paid down under an agreed arrangement is usually workable. A long running balance with no plan, or arrears on a plan you have already broken, is much harder to place. Some non bank lenders take a more practical view here than the banks do. Expect to provide a statement of account plus evidence that recent instalments have actually been paid.
What makes it workable
Disclose it upfront. Brokers and lenders find these balances anyway through bank statements or a portal check. A surprise late in the file costs you credibility you cannot get back. Get the arrangement in place before you apply rather than after. Where the debt is large against turnover, some businesses look at refinancing it into a facility with a longer term. Whether that stacks up for you depends on your tax position and your cash flow, which makes it a conversation for your accountant rather than for us. Thresholds also differ by state.
Not sure where you sit?
Tell us what you need the money for and we’ll give you a straight read on what’s actually available to you.
Last updated 15th July 2026. Reviewed by Authorised Credit Representative 554584 of Australian Credit Licence 414426.