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The ATO will not give you money if you have not paid them any tax in the first place.
Assuming you business is making money, part of the profit can be reduced by the interest on this loan, therefore less tax is payable. If interest plus other business expenses comes to a total that's more than your income, then the business is in a loss hence no tax.
I think you misunderstood what you friend meant. you will not immediately receive money from the ATO simply because you have taken out a business loan. |
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