The True Cost of ATO Debt Now That It’s Not Tax-Deductible
Phillip Cole Phillip Cole

The True Cost of ATO Debt Now That It’s Not Tax-Deductible

From 1 July 2025, ATO interest on overdue tax is no longer tax-deductible — making the real cost of carrying debt up to 33% higher. In this post, I break down the true cost using real numbers, explain how daily compounding works, and show the exact break-even interest rate where refinancing into a deductible loan makes sense.

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