On 13 December 2023, the Australian Taxation Office (ATO) announced that the government will amend the tax law to deny deductions for ATO interest charges as part of the 2023–24 Mid-Year Economic and Fiscal Outlook (MYEFO). This measure is not yet law.
This measure will mean that taxpayers can no longer claim deductions for general interest charges (GIC) and shortfall interest charges (SIC) incurred on or after 1 July 2025. As the deductions will be denied, any GIC or SIC that is later remitted will no longer need to be included as assessable income.
