Ato denies deductions for interest charges sovereign private 323044416760
Published: 2-Dec-25
ATO denies deductions for interest charges - Sovereign Private
From 1 July 2025, taxpayers can no longer claim income tax deductions for ATO general interest charge (GIC) and shortfall interest charge (SIC), following amendments in the Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025. According to the ATO’s fact sheet Denying deductions for ATO interest (27 August 2025), the changes apply to income years starting on or after 1 July 2025 and clarify when interest is “incurred”.
Remission provisions remain unchanged, and remissions will only be assessable if the original interest was deductible. The fact sheet also covers payment plans and deductibility of borrowings to pay tax liabilities.
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