ATO Interest Charge Changes

ATO interest charges incurred on or after 1 July:

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Any GIC or SIC incurred on or after 1 July 2025 is not deductible. This includes all GIC and SIC in respect of outstanding or late payments of tax for income years both before and after 1 July 2025.

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As they are not deductible, any GIC or SIC that is later remitted will no longer need to be included as assessable income.



ATO interest charges incurred before 1 July

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Any GIC or SIC incurred prior to 1 July 2025 is not impacted by the changes to the law and will continue to be deductible for the 2024-25 and earlier income years.

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If you have (or can) deduct GIC or SIC for the 2024-25 or an earlier income year and it is later remitted, the amount that is remitted will need to be included in your assessable income in the year in which the remission occurred.

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