She risked $40,000 to expand her business—now she warns others to think twice
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Maan
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Many Australians dream of building a business from the ground up—but few are prepared for the financial twists that come with rapid growth.
One young entrepreneur thought she’d found a clever workaround to fund her expansion, only to discover the true cost much later.
What seemed like a smart move at the time ended up triggering a debt spiral that affected nearly every part of her life.
Many Australians dream of expanding their businesses—but not all realise the financial risks involved until it’s too late.
One young entrepreneur thought she had found a smart shortcut to success, but the reality was far more complicated. What started as an ambitious leap quickly snowballed into a burden that affected nearly every aspect of her life.
At just 27, Bree Armstrong owned The Beauty Hub, a growing beauty business with locations in both Queensland and Victoria.
But behind the salon’s polished exterior was a financial mess that left her owing more than $40,000 to the Australian Taxation Office.
To make her dream expansion a reality, Ms Armstrong poured over $150,000 into the fit-out of a new, larger salon. She explained that the decision felt like a necessary one to move forward.
‘I moved into a larger place and I spent my tax savings on renovations because it was easier to get into debt with the ATO than get a loan,’ she said.
It wasn’t just the ATO that she owed. She admitted to using not only the $40,000 she’d initially saved for her tax bill but also $50,000 from her personal savings—and she borrowed a further $85,000 from someone close to her.
‘I was like “perfect that means the $40,000 I have in savings for my tax bill I can use for my renovations and I can just pay the tax bill off”,’ she said.
‘I didn’t see it as a bad move at the time. Little did I know that was the worst financial move I could ever make.’
Initially, the plan seemed clever. Ms Armstrong discovered she could enter a payment arrangement with the ATO, which meant she wouldn’t have to pay her taxes upfront. That flexibility made the idea of reallocating her tax savings to the salon build even more appealing.
But the reality was harder to manage than she had anticipated.
‘I was always anxious because I always had the money coming out, regardless how much money I made at the salon, I always had to pay the debt,’ she said.
‘We have such huge overheads just to pay my debt.’
Juggling ATO instalments along with the $85,000 loan repayment—being chipped away in $500 instalments—took its toll. It also had ripple effects beyond her business.
‘I have spent endless tears crying over the number of times I’ve been bumped back for things,’ she admitted, revealing she had been unable to take out other loans, including for a car or mortgage.
While she never believed it was the ‘easy way out’, she did think at the time it was the most practical way forward. What she hadn’t realised was the long-term impact a tax debt would have on her ability to access finance.
‘You can’t get a loan if you’re in debt to the ATO,’ she said.
After years of what felt like financial tail-chasing, Ms Armstrong was finally starting to see progress. Having paid back the bulk of her debts, she was recently approved for her very first car loan.
‘I’ve had myself in so much debt to the point that me getting my first car loan is the first ever loan I’ve ever been approved for,’ she said.
Despite the financial hardship, she remained proud of what she built and the sacrifices it took to get there.
‘If I hadn’t gotten into that debt I wouldn’t be where I am today,’ she reflected.
‘If you were just to start out small and be on your own you could easily do it with no debt but for me I made one big jump at once and I needed extra money to make that jump.’
Looking back, she wouldn’t necessarily repeat the same steps—but she didn’t regret the outcome. Her significant investment paid off by creating a warm, welcoming space that both her clients and staff enjoyed.
‘It has created a space that people love coming to and they feel comfortable and welcome,’ she said.
And as for her relationship with debt? She wasn’t ruling it out—so long as it was for the right reasons.
This video explains how the ATO is intensifying efforts to recover small business tax debts—mirroring the situation Bree faced when she entered a payment plan and felt the pressure of mounting repayments.
Watch to understand why tax debt can quickly become overwhelming—and consider this: could your next financial decision carry unexpected consequences?
Source: Youtube/ausbiz
While Bree’s story is unique, the challenge of navigating financial risks to follow a dream is something many Australians can relate to—especially those who’ve weathered ups and downs in business or life. Her journey was far from smooth, but it proved that even the hardest lessons can lead to growth.
Have you ever taken a financial risk that taught you a valuable lesson? Let us know in the comments.
Many older Aussies know that chasing a dream—whether it’s starting a business or backing a loved one—often comes with financial curveballs. Bree’s story is just one example of how ambition and debt can collide, sometimes in unexpected ways. We’ve covered other real-life stories that highlight the risks, rewards and lessons behind tough money decisions.
Read more:
One young entrepreneur thought she’d found a clever workaround to fund her expansion, only to discover the true cost much later.
What seemed like a smart move at the time ended up triggering a debt spiral that affected nearly every part of her life.
Many Australians dream of expanding their businesses—but not all realise the financial risks involved until it’s too late.
One young entrepreneur thought she had found a smart shortcut to success, but the reality was far more complicated. What started as an ambitious leap quickly snowballed into a burden that affected nearly every aspect of her life.
At just 27, Bree Armstrong owned The Beauty Hub, a growing beauty business with locations in both Queensland and Victoria.
But behind the salon’s polished exterior was a financial mess that left her owing more than $40,000 to the Australian Taxation Office.
To make her dream expansion a reality, Ms Armstrong poured over $150,000 into the fit-out of a new, larger salon. She explained that the decision felt like a necessary one to move forward.
‘I moved into a larger place and I spent my tax savings on renovations because it was easier to get into debt with the ATO than get a loan,’ she said.
It wasn’t just the ATO that she owed. She admitted to using not only the $40,000 she’d initially saved for her tax bill but also $50,000 from her personal savings—and she borrowed a further $85,000 from someone close to her.
‘I was like “perfect that means the $40,000 I have in savings for my tax bill I can use for my renovations and I can just pay the tax bill off”,’ she said.
‘I didn’t see it as a bad move at the time. Little did I know that was the worst financial move I could ever make.’
Initially, the plan seemed clever. Ms Armstrong discovered she could enter a payment arrangement with the ATO, which meant she wouldn’t have to pay her taxes upfront. That flexibility made the idea of reallocating her tax savings to the salon build even more appealing.
But the reality was harder to manage than she had anticipated.
‘I was always anxious because I always had the money coming out, regardless how much money I made at the salon, I always had to pay the debt,’ she said.
‘We have such huge overheads just to pay my debt.’
Juggling ATO instalments along with the $85,000 loan repayment—being chipped away in $500 instalments—took its toll. It also had ripple effects beyond her business.
‘I have spent endless tears crying over the number of times I’ve been bumped back for things,’ she admitted, revealing she had been unable to take out other loans, including for a car or mortgage.
While she never believed it was the ‘easy way out’, she did think at the time it was the most practical way forward. What she hadn’t realised was the long-term impact a tax debt would have on her ability to access finance.
‘You can’t get a loan if you’re in debt to the ATO,’ she said.
After years of what felt like financial tail-chasing, Ms Armstrong was finally starting to see progress. Having paid back the bulk of her debts, she was recently approved for her very first car loan.
‘I’ve had myself in so much debt to the point that me getting my first car loan is the first ever loan I’ve ever been approved for,’ she said.
Despite the financial hardship, she remained proud of what she built and the sacrifices it took to get there.
‘If I hadn’t gotten into that debt I wouldn’t be where I am today,’ she reflected.
‘If you were just to start out small and be on your own you could easily do it with no debt but for me I made one big jump at once and I needed extra money to make that jump.’
Looking back, she wouldn’t necessarily repeat the same steps—but she didn’t regret the outcome. Her significant investment paid off by creating a warm, welcoming space that both her clients and staff enjoyed.
‘It has created a space that people love coming to and they feel comfortable and welcome,’ she said.
And as for her relationship with debt? She wasn’t ruling it out—so long as it was for the right reasons.
This video explains how the ATO is intensifying efforts to recover small business tax debts—mirroring the situation Bree faced when she entered a payment plan and felt the pressure of mounting repayments.
Watch to understand why tax debt can quickly become overwhelming—and consider this: could your next financial decision carry unexpected consequences?
Source: Youtube/ausbiz
Key Takeaways
- A 27-year-old salon owner used her $40,000 tax savings on renovations, believing she could manage repayments through an ATO payment plan.
- She also used $50,000 of personal savings and borrowed $85,000 from someone close to her to cover expansion costs.
- The resulting debt impacted her mental health and prevented her from securing other loans, including for a car or home.
- After years of financial struggle, she paid off most of her debts and remains proud of building a successful, welcoming business.
While Bree’s story is unique, the challenge of navigating financial risks to follow a dream is something many Australians can relate to—especially those who’ve weathered ups and downs in business or life. Her journey was far from smooth, but it proved that even the hardest lessons can lead to growth.
Have you ever taken a financial risk that taught you a valuable lesson? Let us know in the comments.
Many older Aussies know that chasing a dream—whether it’s starting a business or backing a loved one—often comes with financial curveballs. Bree’s story is just one example of how ambition and debt can collide, sometimes in unexpected ways. We’ve covered other real-life stories that highlight the risks, rewards and lessons behind tough money decisions.
Read more:
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