When GIC applies
We may apply GIC if an amount of tax or some other liability remains unpaid after the date it should have been paid. This includes where:
- there is a tax shortfall because of an amendment or correction
- an instalment of tax is underestimated
- a return is lodged late.
Why we apply GIC
We apply GIC to:
- encourage timely payment of tax
- ensure taxpayers who pay late don't have an unfair financial advantage over taxpayers who pay on time
- compensate the community for the cost of late payment.
How much GIC we apply
We review the GIC rate quarterly. GIC is calculated on a daily compounding basis on the amount overdue.
Effect of GIC on income tax
GIC incurred before 1 July 2025 can be claimed as a deduction in your tax return for the financial year in which the GIC is incurred.
If you claim the deduction and we remit the GIC, you'll need to include the remitted GIC as income in your return for the financial year in which the remission is granted.
GIC incurred on or after 1 July 2025 can no longer be claimed as a deduction. This also means if the GIC is later remitted, you do not need to include the remitted GIC as income in your tax return.
How to view GIC applied
Generally, the amount of GIC that applies is visible on:
- a late payment notice
- a GIC notice
- your account summary on ATO online services.
For individuals (including sole traders), the amount of interest you have been charged is normally pre-filled on your tax return. You can also access your account summary in ATO online services.
- Go to Tax.
- Select Accounts.
- Select Summary.
For users of Online services for business:
- go to Accounts and payments dropdown menu
- select Account summary.
If you need to work out how much you have been charged, see Calculate and report ATO interest.
Remission of GIC on late payment of debts
You can ask us to remit the GIC. We may remit the GIC if there are extenuating circumstances.