Private ruling: General interest charges and shortfall interest charges
Date of advice: 17 December 2025
Published: 9 February 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the General Interest Charge (GIC) and the Shortfall Interest Charge (SIC) imposed in the relevant income year an allowable deduction? | A1: Yes. Based on the information provided to the Commissioner the GIC and SIC imposed in the relevant income year are an allowable deduction. The GIC imposed on late payment of debt is deductible in the financial year in which it was imposed on your account. That is, the financial year within which the processing date falls. You are entitled to claim a deduction in the relevant income year for GIC and SIC.

Relevant facts and circumstances: You have been charged with GIC and SIC. The GIC and SIC were imposed in the relevant income year.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 25-5