The Australian Taxation Office (ATO) has advised that from 1 July 2025, businesses will no longer be able to claim General Interest Charges (GIC) as a tax deduction.
Currently, businesses can claim a tax deduction for GICs applied by the ATO when payments are made late.
What this means for your business:
There has been no change to the laws about remission of GIC, and taxpayers will still be able to request the ATO to remit interest charges.
The ATO is encouraging all businesses to review their payment practices and speak with their tax adviser to understand how this change may impact them.
