19/02/2026
Is your business carrying ATO debt? The rules for getting interest waived just changed (again). 👇
As you may know, since July 2025, the General Interest Charge (GIC) on ATO debt is no longer tax-deductible. With GIC rates currently sitting close to 11%, carrying a tax debt is now one of the most expensive financing options for your business.
But there is some good news. The ATO has recently released new guidelines and dedicated forms for requesting a GIC remission (exemption). They are taking a closer look at extenuating circumstances, but they’ve also been very clear about what excuses won’t fly anymore.
✅ What is LIKELY to be accepted:
- Natural disasters (flood, fire) damaging records or premises.
- Severe health issues (including mental health crises) affecting key decision-makers.
- Unforeseen collapse of a major debtor.
- Experiencing vulnerability (such as financial hardship or domestic circumstances).
- Theft of, or damage to, property critical to business operations.
- Bereavement of a family member.
❌ What is LIKELY to be rejected:
- Generic claims of "poor cash flow" without a specific triggering event.
- A history of non-compliance (ignoring the ATO, chronically lodging late).
- Using the tax debt as a line of credit for business expansion instead of paying the ATO.
The application process is now more rigorous and requires specific new forms. Don't risk a rejection when the cost of interest is this high. Our team knows exactly how to frame your situation to align with the new ATO guidelines.
💬 Send us a message today to discuss your ATO debt situation before the interest compounds further.
