Clear tax debt and still access machinery

With the Australian Taxation Office’s changes to General Interest Charges (GIC) taking effect from July 1, 2025, now is the perfect time to assess your finances and explore how Yellowgate Group can help clear your tax debt.

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If you have an unpaid tax debt with the ATO, it's about to get more expensive.

That's because the Australian government has passed a law preventing taxpayers and businesses from claiming tax deductions for GIC incurred after July 1, 2025.

This means that if you owe an outstanding tax debt, you can no longer use it to reduce your tax bill by claiming the interest charges as a tax deduction.

That's the bad news.

The good news is Yellow gate Group can help clients impacted by the new GIC laws to free up equity in their existing equipment, to help clear their tax debt.

The company's Rent Now, Buy Later solution allows users to unlock the equity in their existing equipment and convert it into cash.

It does this by purchasing customers' equipment and renting it back to them on a 12-month Rent Now, Buy Later plan.

With equipment rental being a tax-deductible operational expense, it means businesses can still utilise the equipment needed for revenue-generating activity, clear their tax debts with the equity in their equipment, and claim the rental payments as an operating expense.

But the benefits of Rent to Own equipment don't stop there. There are additional tax advantages of utilising a Rent to Own model to source heavy machinery, rather than going direct to market and buying it outright.

The key benefits

• Tax-deductible rental payments
As mentioned above, unlike traditional loans or leases – where only the interest component may be deductible – rental payments under a Rent to Own agreement are classified as operational expenses.