As of 1 July 2025, interest charges from the ATO — like General Interest Charges (GIC) and Shortfall Interest Charges (SIC) — can no longer be claimed as tax deductions. It’s a subtle shift, but one that could have a real impact on your bottom line.
In addition, the ATO has become noticeably stricter when it comes to remitting interest charges. Remission requests now need to show genuine efforts to meet obligations, supported by clear documentation and timely action. In other words, interest is harder to get out of— and no longer cushions the tax impact.
If it’s been a while since you reviewed your payment setup or you’re carrying any balances, now is a great time to check in. We’re here to help you understand what’s changed and take practical steps to manage any risks.
Three Ways to Reduce ATO Interest Exposure:
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Pay on time whenever possible – even partial payments can reduce interest charges.
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Set up alerts and reminders – avoid missed due dates with automated nudges.
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Reach out early – if you’re having trouble, contacting the ATO or your adviser sooner improves your chances of remission.