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 setting aside GST, pay as you go withholding and super from your business’s cash flow.
Do you need advice regarding a tax or ATO debt?
The removal of tax deductibility for interest on ATO debts makes managing tax obligations more important than ever. While interest incurred before 1 July 2025 may still be deductible, ongoing interest costs can quickly add up if debts remain unpaid.
If you have outstanding tax debts or want to put strategies in place to avoid future interest charges, speak with us. We can help you review your position, negotiate payment arrangements with the ATO, and plan cash flow strategies to stay on top of your tax obligations and minimise unnecessary costs.
If you have questions about superannuation or want to review your strategy, we’re here to help. For practical and professional guidance across superannuation, accounting, taxation, business advisory and financial planning, contact Stratogen Accounting. Based in Noosa, our experienced team supports clients across the Sunshine Coast and Australia-wide, helping you strengthen your financial position and plan confidently for the future.
For practical and professional guidance across superannuation, accounting, taxation, business advisory and financial planning, contact Stratogen Accounting. Based in Noosa, our experienced team of accountants and business advisors support clients throughout the Sunshine Coast and Australia-wide. From tax compliance and bookkeeping to strategic planning, risk management and long-term wealth creation, Stratogen is here to strengthen your financial position and support your success.