On the 13th December 2023, as part of the 2023-24 Mid-Year Economic and Fiscal Outlook (MYEFO), the government announced it would amend the tax law to deny income tax deductions for ATO interest charges. The law change applies in relation to assessments for income years starting on or after 1 July 2025. An assessment for an income year is how your income tax is calculated, as explained in your Notice of Assessment.
This means that you can no longer deduct General Interest Charges (GIC) and Shortfall Interest Charges (SIC) incurred on or after 1 July 2025 in your income tax return for income years starting on or after 1 July 2025.
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