ATO Services
ATO Interest Remission
The ATO charges General Interest Charge (GIC) on unpaid tax debts, which compounds daily and can substantially increase the amount owed. In appropriate circumstances, the ATO has a discretion to remit some or all of the interest — and a well-prepared remission request can make a significant financial difference.
⚠ GIC compounds daily at a rate set by the ATO. The longer the debt remains unpaid, the greater the interest accumulation — act now to minimise your liability.
Does This Sound Like You?
Common situations we help with.
Your tax debt has ballooned due to interest charges
The underlying tax was manageable, but GIC has been compounding for months or years and the total now owed is far more than the original liability. You want to reduce the interest component to a level you can actually address.
You couldn't pay because of circumstances beyond your control
Serious illness, natural disaster, job loss, relationship breakdown, or another event genuinely prevented you from paying the debt on time. These are recognised grounds for remission and a well-prepared submission can make a real difference.
The ATO caused the delay — through an error or slow processing
Your debt or assessment was delayed because the ATO took a long time to process a return, made an administrative error, or gave you incorrect advice. Interest that accrued due to ATO-caused delay is a strong candidate for remission.
You've just received an amended assessment with a large SIC charge
Following an audit or review, the ATO has issued an amended assessment and included a Shortfall Interest Charge going back to the original due date. You want to know whether the SIC can be reduced or eliminated.
You won your tax dispute — but interest kept running during it
Your objection or AAT appeal was successful, but GIC accrued throughout the dispute period on the amount in dispute. You may be able to seek remission of that interest — an often-overlooked step after a successful dispute.
The ATO refused your first remission request
You applied for remission yourself and the ATO declined. The refusal may have been based on an incomplete submission or a failure to engage with the right grounds. A stronger application — or a formal review of the refusal decision — may achieve a better outcome.
How It Works
Reduce ATO interest with a well-prepared remission request.
Describe the interest charge and the circumstances that led to the unpaid debt. A tax lawyer will assess the available grounds and prepare the remission request.
Submit Your RequestSubmit your request
Provide details of the interest charges, the tax debt involved, and the circumstances contributing to the delay in payment.
Remission grounds assessed
A tax lawyer identifies applicable remission grounds and advises on the likely outcome of a request.
Request prepared and lodged
A written remission request is prepared with supporting evidence and lodged with the ATO.
Daily
GIC compounds every day — the sooner a remission request is lodged, the sooner the accumulation stops
All 8 States
Interest remission requests matched to specialist tax lawyers across every state and territory
Free
Initial consultation — understand whether you have grounds for remission before committing to anything
Both GIC & SIC
General Interest Charge and Shortfall Interest Charge can both be remitted — a lawyer can identify which applies and the strongest grounds
Common Questions
ATO interest remission — answered.
What is the General Interest Charge (GIC)? +
GIC is a daily compounding interest charge applied to unpaid tax debts. It is calculated at a rate set quarterly by the ATO — currently around 11–12% per annum — and can substantially increase the total amount owed over time. GIC applies automatically once a tax debt becomes overdue and continues to accrue until the debt is paid or remitted.
When can GIC be remitted? +
The ATO has a discretion to remit GIC where it is fair and reasonable to do so. Common grounds include ATO-caused delay or error, serious illness or physical incapacity, natural disaster, circumstances genuinely beyond your control, and situations where the interest is disproportionate to the conduct involved. The ATO's own guidelines support remission in a broader range of situations than many taxpayers realise.
What is the Shortfall Interest Charge (SIC) and can it be remitted? +
SIC applies specifically to tax shortfalls identified through an ATO review or audit, running from the original due date to the date the amended assessment is issued. Unlike GIC, SIC applies at a lower rate. SIC can also be remitted on similar grounds to GIC — particularly where the shortfall arose from circumstances beyond your control or from reliance on incorrect ATO advice.
How do I apply for ATO interest remission? +
A remission request must be made in writing to the ATO, clearly setting out the factual circumstances and the grounds on which remission is sought, supported by relevant evidence. The quality of the request matters — a well-structured submission that engages directly with the ATO's remission guidelines and the specific facts is far more likely to succeed than a general request.
Can interest be remitted while a tax dispute is ongoing? +
Yes. If your underlying tax liability is under dispute through an objection or AAT appeal, GIC continues to accrue on the disputed amount during that period. If the dispute is resolved in your favour, you can seek remission of interest that accrued during the dispute. Proactively seeking remission of interest accrued during a successful dispute is an often-overlooked step.
What if the ATO refuses my remission request? +
An ATO refusal to remit interest can be reviewed internally through the ATO's review processes. In some cases, the decision can also be subject to external review. If the original request was poorly prepared or based on incomplete grounds, a stronger follow-up submission — or a formal review application — may achieve a better outcome.
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