ATO Remission & Payment Plans

The ATO has stepped up collections, with higher penalties, daily compounding interest and stricter use of Director Penalty Notices.

For small businesses, this means overdue tax can quickly snowball into a major financial strain.

What you need to know right now:

General Interest Charge (GIC) is 10.78% p.a. for Jul–Sep 2025, applied daily to unpaid tax.
From 1 July 2025, GIC is no longer tax-deductible, making it more expensive to carry ATO debt.
Late lodgement penalties are $330 per 28 days (or part) late, capped at $1,650 for small businesses. Medium & large entities face higher amounts.
Director Penalty Notices make directors personally liable for unpaid PAYG, GST and super if lodgments are more than 3 months overdue.

Remission and payment plans can help.

The ATO can remit GIC or penalties where there are valid reasons—such as serious illness, natural disasters, or other events outside your control.

Structured payment plans also allow you to spread repayments, protect cash flow, and show the ATO you are engaging in good faith.

Contact us

We can help you with planning and help determine the best course of action based on your business needs, including any potential remission general interest.

Please feel free to contact our office to discuss this further.