There has been growing concern about inconsistency in how the ATO applies General Interest Charge (GIC) remissions, with outcomes often varying case by case.
In response, the ATO has moved penalty remission requests online to a dedicated team, aiming to improve consistency and transparency. While this is a positive step, well supported explanations and evidence remain critical to a successful outcome.
Examples where the ATO has said it would likely accept GIC remission requests include:
- Where an individual has been impacted by a natural disaster (such as fire, flood or drought).
- Where industrial action has impacted an individual.
- Unforeseen collapse of a major debtor.
- Sudden ill health of an individual, sole trader or key personnel in a small business.
- Sudden ill health of an individual’s tax or BAS agent, where it was not practical to make alternative arrangements to meet their obligations.
- Theft of, or damage to, property critical to business operations.
- Where an individual has experienced or is currently experiencing financial abuse, coercive control, family and domestic violence or other circumstances that contribute to experiencing vulnerability that impact their ability to meet their tax obligations.
- Bereavement of a family member.
Requests likely to be declined:
- Adverse business conditions that impact cash flow.
- General economic downturn.
- Fluctuations in currency or exchange rates.
- General business risks, such as late payment of invoices by a creditor.
- Using monies to expand your business instead of paying overdue taxes.
- Missing a lodgment or payment date because an individual did not allow their tax or BAS agent sufficient time to meet deadlines.
- Being on holiday when lodgment or payment is due.
If you need support with upcoming deadlines, planning or ATO matters, please do not hesitate to contact us. Early action can make a real difference.