Important Tax Update: ATO Interest Deductions Ending Soon
From 1 July 2025, interest charged by the ATO on unpaid tax debts will no longer be tax deductible.
This applies to general interest charges on income tax, GST, PAYG and superannuation liabilities. If you have a current payment plan with the ATO or anticipate needing one, this change will increase your overall funding costs.
What’s changing?
Until now, ATO interest charges were tax deductible, helping soften the impact of deferred tax payments. Under the new rules, deductions will be denied.
A Better Option: APX Capital’s Tax Pay Facility:
We have recently been introduced to a flexible funding product that may assist you with funding your tax obligations. Tax Pay by APX Capital – a purpose-built funding solution that lets you pay ATO debts while keeping the interest fully deductible.
For more information, please view the flyers linked below and a handy step by step video guide to the process here (approx. 2 mins).
https://mgiadelaide.com.au/wp-content/uploads/2025/06/APX-Capital-Tax-Pay-Eligibility-Terms-2.pdf
https://mgiadelaide.com.au/wp-content/uploads/2025/06/APX-CAPITAL-TAX-PAY-FLYER-2.pdf
Why consider Tax Pay?
- Interest is tax deductible
- Easy online setup and drawdown
- Funds paid directly to the ATO
- Doesn’t interfere with your existing bank loans
- Flexible repayment options (including payment holidays)
- Ongoing revolving facility available
Tax Pay is ideal for:
- Businesses with existing ATO payment plans
- Businesses wanting to manage upcoming tax bills over time
- Anyone looking to preserve cash flow while maintaining deductibility
Is Your Business Eligible?
To be considered, you’ll need:
✔ 3+ years trading history
✔ An active ABN
✔ Ability to show debt servicing capacity
Some exceptions to the above may be considered, however not every business is suitable for this product.
Let’s Discuss Your Options
If you’d like to assess whether Tax Pay is a fit for your business, we can help you navigate eligibility and the application process.
Contact your MGI team member via email or on 8299 8888 to discuss.
This information is general in nature and should not be considered financial advice. MGI does not act as Agent for APX capital, Apxium or Tax Pay and is sharing this information for your awareness of available options only, we are not making any personal recommendations to you in this notice and you should assess the product like you would any other loan or debt facility.
