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 to deny claims for deductions apply in relation to assessments for income years starting on or after 1 July 2025.
The application provision for this measure has the same effect as if it had been expressed as applying to GIC and SIC incurred on or after 1 July 2025. GIC and SIC incurred before this date will continue to be deductible for the 2024-25 and earlier income years.
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. If any of this GIC or SIC incurred prior to 1 July 2025 is later remitted, the amount that is remitted will need to be included in your assessable income in the year in which the remission occurred.
For more information see: Denying deductions for ATO interest charges
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 13 Calculation statement - label E4 Exploration credit tax offset has been removed from the Self-managed superannuation fund annual return 2026 as part of this change.
Continue to: How to lodge and pay your SMSF annual return
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