Can You Get a Loan From Your Tax Refund?

[Updated August 21, 2024]

Want to learn the difference between tax refunds and tax advance refunds? You’ve come to the right place. Our expert tax refund specialists have outlined the differences and considerations below.

What is the difference between tax refunds and tax advance refunds?

Tax refunds are a return of the excess amount of the income tax that a taxpayer has paid to the State or Federal Government within the past year. Tax advance refunds are a no upfront free, short-term loan that helps to get a part of the amount that will be refunded to you in a short span of time.

Is it possible to get a loan on my tax refund?

The answer to the question whether it is possible to get a loan on your tax refund is yes, but only if the tax agent that you have appointed offers the service. Mostly, they do not offer the loan directly; instead, they  lend you the money through a certain bank. The amount you can get is based on your expected tax return refund.

It is important to keep in mind though that these types of loans are only useful if you are in a cash crunch or you will be doing something which is going to be productive and guarantee you profit. You may receive the tax advance refunds on the same day or within 24 hours after the application. This would usually depend on the tax agent that you have chosen. A Tax return usually takes no more than 21 days, but certain tax returns may be sent out after 3 weeks as it may take longer to review.

What factors are considered?

Another factor that you must consider is if you are eligible to get the tax advance refund. If you are expecting to receive a refund from the ATO, then you are most likely eligible to apply for the advance refund. The loan that you can receive depends on the refund amount that you are expecting. Again, this also depends on the tax agent that you choose. The short-term loan that you will be receiving will be offered to you by your tax agent with no interest or fees.

Will a tax advance refund affect my credit rating?

Tax advance refund may impact your credit depending on the inquiry your bank has made. If the bank makes hard inquiry, then it may impact your credit score. Likewise, if the bank has just made a soft inquiry then it will not impact your credit.

• Hard enquiry: Hard enquiry generally refers to the hard pulls that shows up in your credit card usually from your car loans or student loan and so on.
• Soft enquiry: The soft pulls do not show up in your credit card and is called soft enquiry. This type of enquiry does not impact your credit score.

In some cases, the amount that is expected to be refunded may end up being less than the tax advance refund amount. This may be due to your tax agent’s miscalculation of the expected tax return. But there are times when the ATO may decline or reduce the deduction.

How to Get a Loan on Your Tax Refund

We understand that waiting for your tax refund can be frustrating, especially when you need quick access to cash. That’s why we offer the option of a tax refund advance, a convenient way to get a portion of your refund without waiting weeks for the ATO to process your return.

Here’s how you can get a loan on your tax refund with us:

1. Eligibility Check:
   • First, you need to ensure that you’re expecting a tax refund from the ATO. If you’re eligible, you’re likely qualified to apply for a tax refund advance through our service.
2. Work with Our Expert Tax Agents:
   • Our experienced tax agents will work with you to calculate your expected refund. Based on this amount, we can offer you an advance. We partner with financial institutions to provide this loan, ensuring you get quick access to your funds.
3. Application Process:
   • Once you decide to proceed, the application process is straightforward. You’ll provide us with the necessary information, and our partner institution may conduct a credit inquiry. Don’t worry—our team will guide you through every step.
4. Receive Your Advance:
   • If approved, you can receive your advance the same day or within 24 hours, depending on the specific details of your application. This advance will be a portion of your expected refund, so you can cover your immediate financial needs without delay.

*Disclaimer: This information is general in nature and does not take into account your individual circumstances. For expert advice relating to your specific needs, you can contact one of our registered tax agents.