From 1 July 2025, the GIC annual rate will be 10.78%, and the SIC annual rate will be 6.78%.
The Australian Taxation Office (ATO) announced the general interest charge (GIC) rates and shortfall interest charge (SIC) rates for the first quarter of the 2025-26 income year on 11 June 2025.
For the quarter commencing on 1 July 2025, the GIC annual rate is set at 10.78%, and the SIC annual rate is set at 6.78%. These rates are lower than those of the previous quarter, beginning 1 April 2025, when the GIC annual rate was 11.17% and the SIC annual rate was 7.17%.
| Quarter | GIC annual rate | SIC annual rate |
| July – September 2025 | 10.78% | 6.78% |
| April – June 2025 | 11.17% | 7.17% |
The general interest charge (GIC) may apply if a tax amount or other liability remains unpaid beyond its due date. This includes tax shortfalls from amendments or corrections, underestimating tax instalments, or late lodgment of returns. The GIC rates are updated quarterly, with new rates announced about two weeks before each quarter begins.
However, if a tax return is amended, resulting in a shortfall, the shortfall interest charge (SIC) is applied instead of the GIC, as taxpayers are typically unaware of the shortfall until they receive the amended assessment.
