02/10/2026
A change worth knowing about if you ever carry a balance with the ATO: The interest they charge on tax debts is no longer tax-deductible.
For general and shortfall interest charged from 1 July 2025, you can't claim it as a deduction the way you once could. In plain terms, falling behind on tax now costs a little more than it used to, because that interest lands fully on you.
None of this is a reason to panic — it's a reason to keep your lodgements and payments on track so the interest never starts in the first place. If you've drifted behind, the sooner it's tidied up, the less it costs.
Want a hand getting back on top of it?
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