Interest we charge
We charge interest in specific situations, including:
- late payment of taxes and penalties
- an increase in your tax liability as a result of an amendment to your assessment
- an increase in other tax liabilities, such as goods and services tax or pay as you go amounts.
The interest we charge includes:
Deductions for ATO interest
GIC and SIC incurred before 1 July 2025 can be claimed as a deduction in your tax return for the income year in which it is incurred.
Any GIC or SIC incurred on or after 1 July 2025 can't be claimed as a deduction.
You can claim GIC or SIC incurred before 1 July 2025 as a deduction at Cost of managing tax affairs – Interest charged by the ATO in your tax return.
If you claim a deduction for GIC or SIC incurred before 1 July 2025 and then we later remit the GIC or SIC, you must report the remitted amount as interest income. This should be included in your tax return for the income year the remission was granted.
The amount of interest you have been charged is normally pre-filled on your tax return. However, if you need to work out how much you have been charged, see Calculate and report ATO interest.