Review: ATO’s management of remission of the general interest charge
We conducted a review into the Australian Taxation Office’s (ATO) decision making in relation to the general interest charges (GIC) on tax debts.
We undertook widespread consultation with the community and tax profession in late 2025 speaking to professional bodies, tax practitioners, financial counsellors, small business owners and individuals, to inform our review and recommendations. We thank all those who participated and provided valuable feedback through submissions, webinars and our online survey.
Our review found the ATO’s inconsistent decision-making, vague guidance and poor communication were leading to confusion and unfair outcomes for taxpayers seeking a remittance (reduction or refund) of the interest charges accumulating on tax debts.
We made four recommendations including the ATO agree to an up-front interest-free payment plan for eligible taxpayers who enter into and maintain complaint payment plans, to help get them back on track and discharge the debt faster.
The ATO has agreed to all review recommendations and we welcome its recent changes to address inconsistency in GIC remission decisions.