General interest charge

This fact sheet explains what the general interest charge (GIC) is, how it is applied and how it is calculated. It also explains when and how you can apply for a remission of the GIC.

What is GIC?

General interest charge (GIC) is a uniform interest charge imposed where there is a late payment of a tax debt. It replaced the late payment penalties system from 1 July 1999 and is a common rate of interest which is applied across all liabilities administered by the Tax Office, including:

• self-assessed liabilities (for example, liabilities arising from the lodgment of an activity statement or income tax return)
• a Tax Office notified notional amount (such as an income tax instalment amount provided by us), or
• a penalty not paid by the due date.

The GIC rate is updated quarterly and worked out using a statutory formula based on the monthly average yield of 90 day Bank Accepted Bills published by the Reserve Bank of Australia. It generally reflects the interest rate charged by financial institutions on unsecured loans.

Where an amount is left unpaid, GIC begins to accrue from the due date until the amount is paid in full.

Other Tax Office publications on GIC are available.