This will affect a lot of people due to the hard economic situations some are feeling.

Deny deductions for ATO interest charges

After 1 July 2025 taxpayers will no longer be able to claim for ATO interest charges.

Last updated 27 March 2025

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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.

https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/deny-deductions-for-ato-interest-charges