Halt Change to Australian Tax Interest Charges, Tax Groups Say

Tax bodies called the Australian government to ax a plan that would stop taxpayers claiming deductions for charges imposed for late tax payments.

Not allowing the charges to be deducted would burden small businesses and could deter companies from working with the tax office to resolve disputes, tax bodies told a senate inquiry into the bill that concluded Jan. 9.

A Treasury bill proposed in December 2024 would end tax deductions for general interest and shortfall interest charges imposed by the ATO when taxpayers underpay or delay paying their tax bills.

Shortfall interest is charged when the ATO ...