General interest charge
General interest charge (GIC) applies if the Division 293 tax due and payable amount remains unpaid after the due date. The due date for various Division 293 tax due and payable amounts is as follows:
- for due and payable liabilities attributed to accumulation interests – 21 days after the Commissioner gives the individual their notice of assessment.
- for due and payable debt account discharge liabilities – 21 days after the end benefit becomes payable.
GIC does not apply to the deferred Division 293 tax debt account.
Find out more:
For more information on GIC, including the process you need to follow to apply for a remission of GIC, refer to the General Interest Charge fact sheet.
Shortfall interest charge
Individuals may be liable for shortfall interest charge (SIC) on any additional amount of Division 293 tax resulting from an amendment of a Division 293 tax assessment.
SIC applies to amended due and payable Division 293 tax liabilities. Due and payable Division 293 tax liabilities are liabilities attributed to accumulation interests and to deferred debt account discharge liabilities.
Find out more:
For more information on SIC, including the process you need to follow to apply for a remission of SIC, refer to the Shortfall Interest Charge fact sheet.
Where the payment of a Division 293 tax debt has been deferred, the deferred amount will be held in a debt account with us. We will apply end-of-year interest to that account. The rate will be the long-term bond rate as at 30 June for that financial year. Once the interest has been posted, a statement of account will be issued to the individual to provide a record of the current balance of the debt.
Individuals can ask for a remission of the end-of-year interest (whole or any part) by asking us. We will consider your request and may remit if:
- an amended assessment causes a deferral reversal
- a deferral determination is varied or revoked, or
- special circumstances exist.
Individuals should make your request for remission in writing, describing all the facts and circumstances relevant to your situation.