New Limits on ATO Interest Deductions (Nov 24 Tax Update)

Relevant For:

Business owners and individuals managing ATO obligations.

Key Points:

• Legislation changes mean GIC and SIC charges won't be deductible from 1 July 2025.
• Previously, GIC and SIC were deductible when incurred, not necessarily paid.
• Taxpayers can request remission from the ATO if the delay was beyond their control.
• Interest from private financiers such as banks remains unaffected by the new rules.

Full Article:

From 1 July 2025, new legislation will end the deductibility of ATO imposed General Interest Charge (GIC) and Shortfall Interest Charge (SIC).

Previously,