On 13 December 2023, as part of the 2023–24 Mid-Year Economic and Fiscal Outlook (MYEFO), the government announced it would amend the tax law to deny deductions for ATO interest charges from 1 July 2025. This measure is now law.
This measure means that taxpayers will no longer be able to claim deductions for general interest charges (GIC) and shortfall interest charges (SIC) in relation to assessments for income years starting 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.
For more information, see:
- Treasury Laws Amendment (Tax Incentives and Integrity) Act 2024External Link
- 2023–24 Mid-Year Economic and Fiscal OutlookExternal Link
- 2023–24 Mid-Year Economic and Fiscal Outlook media releaseExternal Link.