Founding partner Ross Andrews says professionals should prioritise structured tax debt management after July 2025 ATO changes made GIC and SIC non-deductible.
-- Tax debt management is becoming a higher priority for medical professionals, practice owners and their advisers as the July 2025 changes to Australian Tax Office (ATO) interest deductibility continue to reshape the cost of carrying unpaid tax debt.
Since 1 July 2025, general interest charge (GIC) and shortfall interest charge (SIC) incurred on or after that date are no longer tax deductible. The ATO has said this means taxpayers will pay more overall to carry unpaid tax debt, while debts on ATO payment plans continue to accrue GIC, which compounds daily.
Ross Andrews, Founding Partner and Director of Sales at Medpro Finance, said the change has reinforced the value of addressing tax debt early and with a clear repayment strategy.
“Carrying ATO debt is now more expensive than it used to be, so it makes sense for medical professionals to review how that debt is being managed,” Andrews said. “For the right borrower, moving that debt into a commercial facility may also improve the after-tax position, because ATO interest charges are no longer deductible, while interest on business borrowings may still be deductible depending on the circumstances and tax advice.”
Andrews said the goal should be to reduce debt over the shortest timeframe cash flow can realistically support, while also addressing the underlying causes.
“This is not just about moving debt,” he said. “It is about restoring discipline, improving cash flow visibility and making sure the same issue does not arise again. Clearing outstanding ATO debt can also strengthen a borrower’s position with other lenders, many of whom remain cautious where tax liabilities are still outstanding.”
About Medpro Finance
Medpro Finance is an Australian specialist lender focused on medical professionals, providing tailored funding across tax debt, practice finance, equipment and broader business lending.
For more information about Medpro Finance, use the contact details below:
Contact Info:
Name: Natasha Breitman
Email: Send Email
Organization: Medpro Finance
Address: Medpro Finance, Level 44, Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000
Phone: +61292311333
Website: https://medprofinance.com.au/
Release ID: 89191084
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