From www.pwc.com.au: New legislation effective from July 1, 2025, denies taxpayers the ability to deduct shortfall interest charges (SIC) and general interest charges (GIC) incurred from that date onwards.

The changes are aimed at establishing fairness for taxpayers who accurately self-assess and pay their taxes on time, while also assisting in reducing the amount of collectable debt owed to the ATO.

Taxpayers will still retain the right to request remission of GIC or SIC despite this legislative change.