An important reminder: Interest incurred in income years starting on or after 1 July will no longer be deductible, regardless of whether the debt relates to an earlier income year.
However, interest charged by the ATO that was incurred before 1 July 2025 can still be claimed as a deduction this tax time.
Therefore, if you have overdue tax debts please arrange an appointment with us so we can discuss what options you have to pay these debts in the most expedient manner.
This could include various payment plans arranged with the ATO. And while general interest charge (GIC) will still accrue, paying off the debt will decrease the amount of interest charged.
Therefore, it is more important than ever for you to keep on top of ATO obligations to avoid unnecessary costs.
This can also include trying to make it easier to have funds available when it’s next time to pay. For example, we can discuss considering setting aside GST, pay as you go withholding and super from your business’s cash flow.
Please contact us if you need more information or support. Visit our Contact page for details or call us at 02 8094 8990.