Denying deductions for ATO interest charges
From 1 July 2025, General Interest Charges (GIC) and Shortfall Interest Charges (SIC) imposed by the ATO will no longer be tax deductible. Any GIC or SIC incurred from 1 July onwards will accrue non-deductible interest (currently at 11.17%) regardless of pre-existing tax debts or existing disputes.
GIC imposed on unpaid tax liabilities is incurred on a daily basis;
SIC imposed on an unpaid income tax shortfall is incurred in the year you are served a notice of amended assessment.
Consult your accountant prior to the end of FY2025 to plan for this impost and don’t hesitate to call Austrans Finance for finance options to pay your tax debt if you are seeking to avoid additional ATO interest charges.
Supporting Small Business to Repay Debt
Juggling debt repayments is no laughing matter . . .
With the ATO taking a hard line on company tax arrears and debtors stretching out payment terms, now is a good time to carefully consider options and priorities around debt repayment.
Austrans Finance is ready with financial solutions to support small business with repaying debt. Give us a call or enquire via the Contact tab.
Website Data Security
This website does not request customer data directly. However, in these times of increased cyber crime, it’s important to understand online data security.
This article has been supplied by Austrans Finance partner Moula Money.
Instant Asset Write-Off - not much time left
Instant asset write-off for eligible businesses. Check if your business can use the instant asset write-off to claim a deduction for the cost of an asset.