From www.bantacs.com.au: From July 1, 2025, interest charged by the ATO will no longer be tax deductible, prompting individuals to consider refinancing options.

With current ATO interest rates at 11.17% for General Interest Charges and 7.17% for Specific Interest Charges, refinancing at lower home loan rates might be beneficial if enough equity is available.

Alternative options include obtaining loans from second-tier lenders or using existing assets like vehicles to manage tax debts, with interest on business-related loans potentially being tax deductible under specific circumstances.