How To Manage Tax Debt With Access Equipment Costs

The 2026 financial year brings significant changes to the Australian tax debt landscape with the introduction of new ATO legislation. Businesses - and taxpayers - with tax debt can no longer claim tax deductions on the General Interest Charge (GIC). In simple terms, holding onto tax debt will become more expensive.

However, businesses need to operate using access equipment to carry out their projects. From forklifts to telehandlers, staying productive means managing the capital tied to machinery carefully to minimise debt and maintain a healthy cash flow.

Need to know how you can free up cash and keep your business operational? The solution is as simple as looking into purchase and hire options with All Lift Forklifts and understanding how to manage tax debt more effectively.

What Are The ATO Tax Debt Changes?

Previously, General Interest Charge (GIC) was tax-deductible, reducing the financial weight of unpaid tax debts. This charge currently accrues interest daily at ~11.17%. However, with the change in effect, businesses are now responsible for incurring this cost without being able to claim it on tax, even for the previous financial year.

While costing more if you hold onto or take too long to pay off your tax debt, this new law is designed to keep people accountable. However, with it comes the need to reassess where your cash is tied up and how to redirect capital—especially when needing access to equipment to reduce tax liabilities.

How Equipment Changes Business Cash Flow

For industrial businesses, it’s no secret that heavy machinery is a costly but essential part of the operation. Forklifts, telehandlers, scissor lifts, and other similar equipment often require significant upfront expenses, particularly when purchasing.

With All Lift Forklifts, hiring equipment can offer many benefits, including:

• Preserving working capital to manage debt
• Maintaining long-term access to essential machinery
• Reducing delayed or sold projects to cover tax bills

You can maintain productivity with equipment hire as opposed to the financial burdens associated with purchasing access equipment. With All Lift Forklifts hire, you’re guaranteed fully serviced equipment ready for use.

How Business Owners Should Improve Their Equipment Access Strategy

1. Plan for Tax-Efficient Equipment Access

The first step in achieving a smart financial resolution in the absence of GIC deduction on unpaid tax debts is to optimise other areas of tax. Equipment hire is a significant component of this new strategy.

Unlike GIC in the new ATO tax debt legislation, hire costs are typically tax-deductible. That is because hiring costs fall under business operating expenses, which offset some tax liability in a strategic and financially sustainable manner.

Ultimately, hiring might not only protect your cash flow but also improve your overall tax position. 

1. Use Flexible Hire Terms

Businesses continually face challenges around long-term hiring commitments that don’t align with major projects or financial fluctuations.

To avoid this, consider scaling your fleet accordingly with flexible equipment hiring options. All Lift Forklifts cater to this need by tailoring hire agreements to fit client operations, helping businesses remain financially agile across a week, a month, or a long-term hire period. Ultimately, hire options help you plan for the future without taking on additional tax debt.

1. Hire Instead of Buy

As mentioned earlier, purchasing access equipment ties up a significant amount of capital. Instead, you could use those funds to reduce tax liabilities or support circulating cash flow. Hiring, even for large businesses, alleviates financial weight incurred from GIC on tax debts and saves on upfront costs, giving you the tools you need when you need them.

All Lift Forklifts offer a full range of access equipment available for hire, including:

• Forklifts
• Telehandlers
• Scissor lifts
• Access equipment
• Boom lifts
• Speciality attachments

Discover our full range of hire equipment available here, or for more information on how hiring can support your business, please contact our team on 1300 148 764.

Managing tax debts moving forward doesn’t have to be a financial stress in addition to hiring equipment. With All Lift Forklifts, you can trust our extensive experience in helping you reduce costs and optimise your equipment strategy. Unsure what machinery you need? Contact us today, and we can help tailor your equipment needs to suit your specific job requirements.