Paying the ATO directly
Monthly payment to the ATO
—
—Interest charged by the ATO
—Total you'd repay
—Monthly if it sat in a loan instead
—Monthly difference to your cashflow
—Interest over the same months, in a loan
—Interest saved over those months
The ATO's interest charge compounds daily and its payment plans usually want the balance cleared inside about twelve months, which is what makes the monthly figure hurt. Refinancing spreads it over a loan term at a much lower rate — but it does move the debt onto your property and stretch it over longer, so the lifetime interest can be higher. That trade-off is the conversation. Deductibility of ATO interest is a question for your accountant. General information only.