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ARTICLE · 14 MAY 2025

Remission of interest (ATO)

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Discusses interest on late payments to the ATO & what your options are for reduction.

AustraliaTax
Murray Thornhill
Murray Thornhill
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Can interest charged by the ATO be reduced?

Riaan Piek discusses interest on late payments to the ATO and what your options are for reduction.

General Interest Charge and Shortfall Interest Charge

The ATO levies interest on late payments of tax and particularly unpaid taxes (known as 'general interest charge' (GIC)), in much the same way as late credit card payment penalties.

If a person amends their self-assessment return and ends up with an increased tax liability, the ATO charges interest on the shortfall amount determined by the difference between the amount of tax assessed originally, and the amount of tax assessed eventually. This is known as the 'shortfall interest charge' (SIC).

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