Denying deductions for ATO interest charges
The Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025External Link amended the tax law to deny income tax deductions for general interest charges (GIC) and shortfall interest charges (SIC). The amendments apply in relation to assessments for income years starting on or after 1 July 2025.
This means most taxpayers can't claim a deduction for GIC and SIC incurred on or after 1 July 2025 from their 2025–26 income tax return and onwards. GIC and SIC incurred before 1 July 2025 will continue to be deductible for the 2024–25 and earlier income years.
For taxpayers with an approved substituted accounting period (SAP), the law applies in a different way. This law change means that a taxpayer will no longer be able to claim a deduction from their next SAP starting after 1 July 2025. The SAP is itself considered an 'income year'.
For example, a taxpayer with an approved SAP from 1 January 2025 to 31 December 2025 may deduct any GIC and SIC incurred for this period in their 2025–26 tax return. They can't deduct GIC and SIC amounts from their next SAP starting on 1 January 2026.
As GIC and SIC are no longer deductible, any GIC or SIC that is later remitted, will no longer need to be included as assessable income in the year in which the remission occurred. Remissions of GIC and SIC are assessable only if the original interest was deductible.
Any GIC or SIC incurred prior to 1 July 2025 that is later remitted must be included in assessable income in the year in which the remission occurred.
For more information see: Denying deductions for ATO interest charges.
Reportable tax position schedule
For income years that commence on or after 1 July 2025, large APRA-regulated superannuation funds and collective investment vehicles (CIVs) will be required to lodge a Reportable Tax Position (RTP) schedule, if they meet the reportable tax position criteria.
This brings the reporting obligations of funds into line with the other large public and private companies that currently disclose their most complex and material tax positions in the RTP schedule.
The Fund Income Tax Return 2026 includes a new item 19 Reportable Tax Position and label B Are you required to lodge a reportable tax position schedule?
For more information, see Reportable tax position schedule and instructions 2026.
Junior Mineral Exploration Incentive
On 5 May 2021, the Australian Government announced it would extend the Junior Minerals Exploration Incentive to 30 June 2025. The Junior Mineral Exploration Incentive has not been extended beyond this date.
From the 1 July 2025 exploration credits cannot be received or claimed.
Item 12 Calculation statement – label E4 Exploration credit tax offset has been removed from the Fund income tax return 2026 as part of this change.
Continue to: How to lodge your fund tax return and pay
Return to: How to get the fund income tax return 2026