From www.accountantsdaily.com.au: The Senate Economics Legislation Committee has recommended a bill to deny income tax deductions for general interest charges (GIC) and shortfall interest charges (SIC) incurred by taxpayers.

The committee argues that this measure will promote accurate self-assessment and timely tax payments while addressing the substantial growth in the ATO’s collectable debt.

Concerns have been raised regarding the potential negative impact on small businesses and individuals, but the Commissioner of Taxation will have discretion to remit these charges in cases of financial hardship or disasters.