ATO Interest Calculator Australia 2026
Calculate how much ATO General Interest Charge will be added to your overdue tax debt. Current GIC rate for Q3 2025-26 is 10.65% p.a., compounded daily. GIC is no longer tax-deductible from 1 July 2025.
The outstanding tax debt amount
The date from which GIC starts accruing
Defaults to today. Change to estimate future GIC.
Enter your tax debt details to calculate GIC
Current ATO GIC Rates
| Quarter | Period | Annual Rate | Daily Rate |
|---|---|---|---|
| Q3 FY2025-26 (Jan-Mar 2026) | 1 Jan 2026 – 31 Mar 2026 | 10.65% | 0.029178% |
| Q2 FY2025-26 (Oct-Dec 2025) | 1 Oct 2025 – 31 Dec 2025 | 10.61% | 0.029068% |
| Q1 FY2025-26 (Jul-Sep 2025) | 1 July 2025 – 30 Sept 2025 | 10.78% | 0.029534% |
| Q4 FY2024-25 (Apr-Jun 2025) | 1 Apr 2025 – 30 June 2025 | 11.17% | 0.030603% |
| Q3 FY2024-25 (Jan-Mar 2025) | 1 Jan 2025 – 31 Mar 2025 | 11.42% | 0.031288% |
| Q2 FY2024-25 (Oct-Dec 2024) | 1 Oct 2024 – 31 Dec 2024 | 11.38% | 0.031093% |
| Q1 FY2024-25 (Jul-Sep 2024) | 1 July 2024 – 30 Sept 2024 | 11.36% | 0.031038% |
What is the General Interest Charge (GIC)?
The General Interest Charge is an interest charge the ATO applies when you have an outstanding tax liability that is overdue. It is imposed under section 8AAD of the Taxation Administration Act 1953 and applies to late or unpaid income tax, GST, PAYG instalments, and most other tax obligations.
GIC starts accruing from the day after the due date and is applied on a daily compounding basis — each day's charge is calculated on the total outstanding amount including previously accrued GIC.
The current GIC rate for Q3 2025-26 (1 January – 31 March 2026) is 10.65% per annum.
Current ATO GIC Rate Table
The GIC rate is determined quarterly: the 90-day bank accepted bill rate + 7 percentage points.
| Quarter | Period | Annual Rate | Daily Rate |
|---|---|---|---|
| Q3 2025-26 | 1 Jan 2026 – 31 Mar 2026 | 10.65% | 0.02917808% |
| Q2 2025-26 | 1 Oct 2025 – 31 Dec 2025 | 10.61% | 0.02906849% |
| Q1 2025-26 | 1 Jul 2025 – 30 Sep 2025 | 10.78% | 0.02953425% |
| Q4 2024-25 | 1 Apr 2025 – 30 Jun 2025 | 11.17% | 0.03060274% |
| Q3 2024-25 | 1 Jan 2025 – 31 Mar 2025 | 11.42% | 0.03128767% |
| Q2 2024-25 | 1 Oct 2024 – 31 Dec 2024 | 11.38% | 0.03109290% |
| Q1 2024-25 | 1 Jul 2024 – 30 Sep 2024 | 11.36% | 0.03103825% |
GIC annual rate = 90-day bank bill rate + 7%
GIC daily rate = Annual rate ÷ days in year
Example: 3.65% base → 3.65% + 7% = 10.65% p.a.
How GIC is Calculated
GIC uses daily compounding — each day's charge is added to the balance, and the next day's charge is calculated on the new higher balance.
Worked Example — $10,000 debt at 10.65%
| Day | Opening Balance | Daily GIC | Closing Balance |
|---|---|---|---|
| Day 1 | $10,000.00 | $2.92 | $10,002.92 |
| Day 2 | $10,002.92 | $2.92 | $10,005.84 |
| Day 30 | $10,084.96 | $2.94 | $10,087.91 |
| Day 90 | $10,263.05 | $2.99 | $10,266.04 |
| Day 365 | $11,120.36 | $3.24 | $11,123.61 |
After one year at 10.65%, a $10,000 debt accumulates ~$1,124 in GIC due to compounding. Simple interest would be only $1,065.
GIC is No Longer Tax-Deductible
From 1 July 2025, GIC is no longer deductible. Previously it was deductible under section 8-1 of the ITAA 1997.
Tax tip: With GIC no longer deductible, the true cost of an overdue tax debt is even higher. Consider paying it off ahead of lower-interest obligations, or even borrowing at a lower commercial rate to clear the ATO debt.
How to Reduce or Remit GIC
Pay the debt as soon as possible
The only way to stop GIC is to pay the full amount. Even partial payments reduce the balance on which GIC is calculated. GIC at ~10.65% is higher than most commercial rates.
Request a payment plan
A payment plan does not stop GIC from accruing, but it prevents more serious collection action. The ATO may be more willing to consider remission if you are on a plan and meeting obligations.
Apply for GIC remission
The ATO can remit GIC under section 8AAG if extraordinary circumstances prevented payment (serious illness, natural disaster, ATO error, incorrect ATO advice). Lodge through myGov or via your tax agent.
Lodge on time even if you cannot pay
Always lodge returns and activity statements on time. Late lodgement adds a Failure to Lodge penalty on top of GIC. Lodging on time but paying late only attracts GIC.
GIC vs Shortfall Interest Charge (SIC)
| Feature | GIC | SIC |
|---|---|---|
| When it applies | Late or unpaid tax | Shortfall from amended assessments |
| Rate formula | Base rate + 7% | Base rate + 3% |
| Current rate (Q3 2025-26) | 10.65% p.a. | 6.65% p.a. |
| Compounding | Daily | Daily |
| Tax-deductible from 1 Jul 2025 | No | No |
SIC applies when the ATO amends your assessment and you owe additional tax, charged from the original due date to the amended assessment date. After that, if the shortfall is unpaid, GIC applies.
What is the current ATO GIC rate?
How is GIC calculated?
Can I claim GIC as a tax deduction?
How do I stop GIC from accruing?
Can the ATO remit (cancel) GIC?
What is the difference between GIC and SIC?
Tax Accuracy & Sources
This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.