From 1 July 2025, a new law will deny income tax deductions for ATO interest charges, such as the General Interest Charge (GIC) and Shortfall Interest Charge (SIC). Announced in the 2023–24 MYEFO and now legislated, this change applies to income years starting on or after that date. Any ATO interest incurred from 1 July 2025 is no longer deductible, regardless of when the related debt arose.
