From 1 July 2025, the ATO interest charges, specifically the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) will become non-deductible.  This change will increase the after-tax cost of ATO interest charges affecting taxpayers with overdue tax liabilities or tax shortfalls.

Business taxpayers with ATO tax debts may wish to consider repaying their tax liabilities or refinancing these tax debts to avoid accruing further non-deductible interest charges.

Please contact your accountant to discuss these options further.