Quick answer
You can often get a business loan when tax returns are behind by using a low doc lender that relies on bank statements and BAS instead. Lenders will want to know why returns are late and when they will be lodged. Property-secured loans are the most flexible option, because equity and the repayment plan carry more of the decision than the paperwork.
Key points
- Low doc lenders use bank statements and BAS instead of returns
- Explain why lodgements are behind and when they will be done
- Lodged BAS matter even when returns are late
- Property security is the most flexible route with gaps
A very common situation
Late tax returns are one of the most common reasons owners come to us. The accountant is overloaded, the business was too busy to gather records, a change of structure created confusion, or a difficult year made it easy to put off. None of that means the business is not trading well. It does mean that a bank, which typically wants two years of lodged returns, will usually stop there.
How alternative lenders fill the gap
| Missing | What they use instead |
|---|---|
| Last year’s tax return | Twelve months of business bank statements |
| Financial statements | Lodged BAS showing sales |
| Accountant’s figures | An accountant’s letter confirming the lodgement plan |
| Full serviceability test | Repayments compared with average deposits |
The low doc business loans page explains this approach in detail.
What lenders want to understand
- Why the returns are late. One sentence is enough.
- When they will be lodged. A realistic date, ideally confirmed by your accountant.
- Whether BAS are current. Lodged BAS are the strongest substitute evidence.
- Whether there is a tax bill coming. If returns will produce a liability, lenders want to know it will not sink the business.
The property route
When returns are well behind and BAS are patchy, unsecured lenders become very cautious. A property-secured loan of $20,000 up to $5,000,000 is often the most reliable path, because the lender can rely on equity and a clear plan. No valuation is needed before approval, and interest can be prepaid or added to the loan.
An illustrative example
A mobile mechanic switched from sole trader to a company and fell two years behind with returns during the transition. Business was strong, with steady deposits and lodged BAS for the company. A low doc lender funded a second service van using bank statements and BAS, on the condition that the outstanding returns were lodged within a set period. The owner’s accountant confirmed the plan in writing.
Fix the lodgements in parallel
Funding solves today’s problem, but lodging returns widens your options and usually lowers your costs next time. If there is a tax bill when they are lodged, see ATO tax debt loans.
Ask with what you have
Enquire in a minute and tell us which years are outstanding and why. There’s no credit check upfront, a specialist calls you back, and there is no spray and pray. See what is possible now.
Frequently asked questions
Can I get a loan if I have not lodged tax returns for two years?
It is possible, particularly with property security, but options narrow as the gap grows. Getting a catch-up plan underway with your accountant helps.
Do lenders contact the ATO?
Lenders usually do not contact the ATO directly, but they may ask for your ATO portal statement and will see ATO payments in your bank statements.
Will unlodged returns cause other problems?
The ATO can issue default assessments and penalties for unlodged returns. Lodging, even if you cannot pay, is usually better.
What if my BAS are also behind?
That makes unsecured lending much harder. Lodge outstanding BAS first if you can.
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