On 13 December 2023, as part of the 2023–24 Mid-Year Economic and Fiscal Outlook (MYEFO), the Government announced it will amend the tax law to deny deductions for ATO interest charges. This measure is not yet law.
This measure will mean that taxpayers will no longer be able to claim deduction for general interest charges (GIC) and shortfall interest charges (SIC) incurred 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: