The ATO has recently introduced standardised application forms to request remissions, including updates to their guidance. This is an interim update while the ATO is currently awaiting the outcome of their broader review of taxpayer relief provision.
Interest on outstanding tax debts are calculated on a daily compounding basis (the General Interest Charge annual rate is currently 10.65%) and are now non-deductible as of 1 July 2025. Penalties are also non-deductible.
In addition to the primary tax debt, interest and penalties often become a significant and growing part of the amount that needs to be repaid to the ATO, particularly if it is left unaddressed.
The new ATO forms and guidance outline the information and factors that need to be addressed for a remission of interest and penalties. These forms and guidance are below:
For more information on the ATO’s current areas of focus, please speak with Coleman Greig’s expert Taxation lawyers.
