After 1 July 2025 taxpayers will no longer be able to claim for ATO interest charges.

On 13 December 2023, as part of the 2023–24 Mid-Year Economic and Fiscal Outlook (MYEFO), the Government announced it will amend the tax law to deny deductions for ATO interest charges. This measure is not yet law.

This measure will mean that taxpayers will no longer be able to claim deductions for general interest charges (GIC) and shortfall interest charges (SIC) for income years starting on or after 1 July 2025.

As the deductions will be denied, any GIC or SIC that is later remitted will no longer need to be included as assessable income.

If you have any questions, feel free to ask them in the comment section. We will be happy to answer all your queries.