Another 30 June is coming – and if you’re already behind with the Tax Office, your next lodgement could turn a slow leak into a cash-flow blow-out.
The ticking clock
It’s late May. In a few short weeks you’ll lodge another BAS and, for most businesses, an income-tax return. If you’re already in arrears with the ATO, that fresh liability doesn’t replace the old one – it stacks on top, attracts interest and penalties, and widens the gap between what you owe and what you can actually pay.
Collectable tax debt now tops $54 billion, with small businesses carrying roughly two-thirds of it – about $35.6 billion (Infuse Advisors & Accountants, 2025).
The snowball effect
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Compounding interest & penalties: The General Interest Charge (GIC) is currently tax-deductible, but from 1 July 2025 it won’t be. Tomorrow’s interest slug will come straight off your bottom line. (Yahoo Finance, 2025).
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Growing lodgement obligations: Each new BAS or tax return adds another layer of debt, instantly escalating your arrears.
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ATO’s hardened stance: After pandemic leniency, the Office has pivoted to full-throttle recovery, outsourcing files to private collectors and reviving debts that were previously on ice (PMG Finance, 2025).
Three ways the ATO is turning up the heat
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Credit-file disclosure – If you owe $100k+ for 90 days and aren’t constructively engaged, the ATO can notify credit reporting bureaus (Australian Taxation Office, 2025). More than 22,000 intent-to-disclose letters have already gone out (Australian Taxation Office, 2023).
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External debt-collection agencies – Hardened collectors are chasing overdue balances, often demanding faster repayment terms than the ATO’s own plans (PMG Finance, 2025).
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Monthly GST reporting – From April 2025, habitual late-payers are being forced from quarterly to monthly GST cycles, crushing already-thin cash buffers (Australian Taxation Office, 2025).
The collateral damage
Australian corporate failures are spiking. Insolvencies have jumped 45% this financial year, already topping last year’s record with months still to run (The Australian, 2025). Lenders smell blood: Banjo Loans says application rejections tied to ATO debt have doubled, with a 60% rise in knock-backs for tax-debt-heavy SMEs (The Advertiser, 2025).
Translation? Big tax arrears don’t just hurt your cash flow – they choke off future finance, erode supplier confidence and can push you onto the insolvency conveyor belt.
Case-in-point scenario
A Sydney transport firm carries $90k in overdue GST and PAYG. Post-EOFY lodgement, the liability balloons to $130k once company tax and interest land. Their bank, seeing a flagged ATO debt, freezes an overdraft increase. With fuel suppliers demanding cash upfront, trucks sit idle and revenue stalls.
Within 90 days the ATO issues an intent-to-disclose letter. Credit insurers pull cover, and major clients quietly look for more ‘stable’ carriers. The directors aren’t bad operators – they were just slow to tackle the snowball.
Why traditional finance won’t touch you
Banks treat sizeable ATO arrears like a neon-red flag. Even fintech lenders are tightening policy; many now auto-decline if tax debt exceeds a set multiple of monthly revenue (The Australian, 2025). The logic is simple: if the Commonwealth can seize your cash at will, everyone else sits behind them in the queue. Unless you clear or quarantine that liability, fresh capital is hard to come by – and expensive if you do find it.
Invoice Finance: the circuit-breaker
Invoice finance turns your outstanding invoices into fast working capital — at Brunswick we release up to 80% of the invoice value, typically within 24 hours and the balance when your customer pays.
Because the facility is an advance against your debtor ledger, not a loan, you don’t have to mortgage the family home or stack long-term debt on the balance sheet. Your invoices are the only security, so you stay in control of your assets.
Brunswick has been self-funded and specialising in invoice-discounting for SMEs since 1999, offering no lock-in contracts and letting you choose which invoices to fund — the line flexes as your business grows.
This makes our facility at Brunswick the perfect tactical play to:
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Pay down ATO arrears fast – clear the debt before disclosure hits your credit file.
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Protect day-to-day cash flow – you’re unlocking money you’ve already earned, not borrowing against future sales.
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Negotiate from strength – once the arrears are gone, you can refinance on better terms without red-flag baggage.
Whether you run a transport fleet, a logistics outfit or a professional-services firm, we’ll neutralise the ATO pressure and keep your wheels turning.
Five-point action plan before 30 June
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Reconcile now – Confirm how much you owe (including interest) and what’s due to lodge.
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Forecast cash flow – Model the impact of fresh liabilities and realistic repayment scenarios.
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Engage Brunswick early – The sooner you line up invoice finance, the faster you can clear arrears.
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Talk to your accountant – Lodging on time avoids late-lodgement penalties and shows the ATO you’re engaging.
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Document everything – Keep written evidence of repayment talks; it can pause disclosure even if the debt tops $100k.
Bottom line
Every unanswered ATO letter is a louder alarm bell. If you let June 30 roll past with arrears intact, expect higher interest, tougher repayment terms and a big red mark on your credit file. Invoice finance gives you a way out that doesn’t cripple day-to-day operations.
Don’t wait for the ATO to turn up the heat.
Speak with Brunswick Invoice Finance today and turn tomorrow’s tax headache into yesterday’s problem.