The Australian Taxation Office has announced updated general and shortfall interest charge rates for the third quarter of the 2025–26 income year, reflecting a reduction from the previous quarter and confirming the charges that will apply to unpaid tax liabilities and amended assessments from January 2026.
The Australian Taxation Office (ATO) announced the general interest charge (GIC) rates and shortfall interest charge (SIC) rates for the third quarter of the 2025-26 income year on 9 December 2025.
For the quarter commencing on 1 January 2026, the GIC annual rate is set at 10.65%, and the SIC annual rate is set at 6.65%.
These rates have been lowered from the previous quarter, beginning 1 October 2025, down from 10.61% GIC and 6.61% SIC.
| Quarter | GIC annual rate | SIC annual rate |
| January – March 2026 | 10.65% | 6.65% |
| October 2025 – December 2025 | 10.61% | 6.61% |
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.
