Self-employed debt rarely looks like the textbook version. There's the card that smooths the gap between invoicing and getting paid, the ute on equipment finance, maybe a lingering tax bill from a good year that didn't feel good by the time the ATO letter arrived. None of that means you've done anything wrong - it means your consolidation conversation has a few extra moving parts. Here they are, honestly.
First: separate the debts by purpose
Personal debts (the family card, the car) and business-purpose debts (equipment, working capital, tax) can often both be consolidated - but they shouldn't be blended invisibly. Mixing business borrowing into your home loan has tax-deductibility implications that deserve your accountant's eyes before anything is signed, and an undifferentiated lump makes future accounting miserable. The clean structure is usually separate loan splits: personal consolidation in one, business-purpose in another, each visible and trackable.
The ATO debt question
Tax debt is the great divider. Some mainstream lenders simply decline applications where ATO debt appears; others - and several specialist lenders - will happily consolidate it as part of a refinance when the story makes sense (a strong year, a payment plan in place, returns up to date). Two things are always true: lender selection is most of the battle, and hoping the ATO debt won't come up is the only approach guaranteed to fail. It shows in the paperwork; lead with it, framed properly.
Proving you can service the new loan
Everything from refinancing while self-employed applies here: one to two years of returns, legitimate add-backs lifting your assessable income, low-doc alternatives if the paperwork is mid-cycle, and timing the application after your accountant has your best recent year on paper. Consolidation adds one wrinkle - the lender also reads the story of the debts. "Equipment finance plus a card that carried the quiet season" is a normal business story; tell it that way.
The same catch applies - maybe more so
The long-timeline catch doesn't care how you earn: stretch short debts over decades at minimum repayments and the total cost balloons. For business owners I'd add: keep the freed-up card open but modest if it genuinely smooths cash flow (unlike the personal case, that's a real function), automate extra repayments in the strong months, and revisit the structure at tax time each year with your accountant.
The honest bit
Consolidation for the self-employed is mostly a matching problem: your real financial story, presented properly, to the handful of lenders whose policies fit it. I do this daily across 40+ lenders - and if the honest answer is "finish this year's returns first" or "your accountant should restructure this before any lender sees it", you'll hear that instead of a loan pitch. If cash flow is past stretched and into distress, the free help comes first: your lenders' hardship teams and the National Debt Helpline on 1800 007 007.
Quick answers
Can I consolidate business debts into my home loan?
Often yes, if you have the equity and servicing capacity - but lenders differ sharply on consolidating business-purpose debts, and mixing business borrowing into your home loan has tax implications your accountant should weigh in on first. A separate loan split for the business-purpose portion usually keeps everyone - lender, accountant, future you - happier.
Can ATO tax debt be consolidated?
Sometimes. Plenty of mainstream lenders decline applications involving ATO debt, while others - including specialist lenders - will consolidate it as part of a refinance with a sensible story. If tax debt is part of your picture, lender selection is most of the battle, and pretending it isn't there is the one strategy that never works.
Will my irregular income stop me consolidating?
Not by itself. Lenders assess self-employed income through your returns and financials, with legitimate add-backs improving the picture. Irregular months matter less than the year's story, how it's presented, and choosing a lender whose policy suits your business type - the same rules as any self-employed lending.
Want the self-employed version of the consolidation conversation? Start your obligation-free enquiry → or call Michael on 0477 979 377.
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Reviewed and updated 4 July 2026. Rates, fees, schemes and lender policies change over time - always confirm current details. Examples on this page use clearly labelled illustrative figures, not current market rates.
Michael Gross is a Credit Representative (546597) of LMG Broker Services Pty Ltd (ACN 632 405 504, Australian Credit Licence 517192). The information on this page is general in nature and doesn't take into account your personal objectives, financial situation or needs - consider whether it's appropriate for your circumstances before acting on it.
Business debts feeling heavier than they should?
This is my specialty - honest options for consolidating as a business owner, matched to lenders who understand how you earn.