Client Profile
Michael, 45, a self-employed IT consultant with fluctuating income. He owned his home outright, valued at $1.2 million, but had $180,000 in overdue ATO debt, causing credit stress.
The Challenge
Michael was under pressure from the ATO and had been declined by several banks due to the tax debt and recent late payments showing on his credit file.
Our Strategy
- We identified a non-bank lender who allowed cash out for ATO debt
- Released $250,000 from his home using a low-doc solution
- Structured repayments to fit his variable income without affecting lifestyle
The Result
- ATO debt paid out in full, avoiding further penalties and legal action
- Credit file stabilised, removing immediate stress
- Still retained significant equity for future investment or refinance
Conclusion
Michael turned a stressful situation into a strategic win by using existing equity to clear urgent tax debt. With the right lender and structure, equity release can be a powerful way to regain control.
