ATO Interest Calculator Australia 2026
Estimate ATO General Interest Charge on overdue tax or Shortfall Interest Charge on an amended assessment. Uses official daily rates for every date and models partial GIC payments.
General Interest Charge on an unpaid tax debt
Usually the payment due date; this day is included
The final day included in the estimate
Each payment is applied before that day’s estimated charge. ATO account allocation can differ.
Next best steps
Official ATO GIC rates
Published quarterly; latest available period ends 31 Dec 2026.
| Quarter | Period | Annual | Daily |
|---|---|---|---|
| Q2 FY2026-27 (Oct–Dec 2026) | 1 Oct 2026 – 31 Dec 2026 | 11.51% | 0.03153425% |
| Q1 FY2026-27 (Jul–Sep 2026) | 1 July 2026 – 30 Sept 2026 | 11.43% | 0.03131507% |
| Q4 FY2025-26 (Apr–Jun 2026) | 1 Apr 2026 – 30 June 2026 | 10.96% | 0.03002740% |
| Q3 FY2025-26 (Jan–Mar 2026) | 1 Jan 2026 – 31 Mar 2026 | 10.65% | 0.02917808% |
| Q2 FY2025-26 (Oct–Dec 2025) | 1 Oct 2025 – 31 Dec 2025 | 10.61% | 0.02906849% |
| Q1 FY2025-26 (Jul–Sep 2025) | 1 July 2025 – 30 Sept 2025 | 10.78% | 0.02953425% |
| Q4 FY2024-25 (Apr–Jun 2025) | 1 Apr 2025 – 30 June 2025 | 11.17% | 0.03060274% |
| Q3 FY2024-25 (Jan–Mar 2025) | 1 Jan 2025 – 31 Mar 2025 | 11.42% | 0.03128767% |
| Q2 FY2024-25 (Oct–Dec 2024) | 1 Oct 2024 – 31 Dec 2024 | 11.38% | 0.03109290% |
| Q1 FY2024-25 (Jul–Sep 2024) | 1 July 2024 – 30 Sept 2024 | 11.36% | 0.03103825% |
| Q4 FY2023-24 (Apr–Jun 2024) | 1 Apr 2024 – 30 June 2024 | 11.34% | 0.03098361% |
| Q3 FY2023-24 (Jan–Mar 2024) | 1 Jan 2024 – 31 Mar 2024 | 11.38% | 0.03109290% |
| Q2 FY2023-24 (Oct–Dec 2023) | 1 Oct 2023 – 31 Dec 2023 | 11.15% | 0.03054794% |
| Q1 FY2023-24 (Jul–Sep 2023) | 1 July 2023 – 30 Sept 2023 | 10.90% | 0.02986301% |
| Q4 FY2022-23 (Apr–Jun 2023) | 1 Apr 2023 – 30 June 2023 | 10.46% | 0.02865753% |
| Q3 FY2022-23 (Jan–Mar 2023) | 1 Jan 2023 – 31 Mar 2023 | 10.06% | 0.02756164% |
| Q2 FY2022-23 (Oct–Dec 2022) | 1 Oct 2022 – 31 Dec 2022 | 9.31% | 0.02550685% |
| Q1 FY2022-23 (Jul–Sep 2022) | 1 July 2022 – 30 Sept 2022 | 8.00% | 0.02191781% |
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. Its daily compounding and rate rules are set out in sections 8AAC and 8AAD of the Taxation Administration Act 1953 and it applies to late or unpaid income tax, GST, PAYG instalments, and many other tax obligations.
The GIC period starts at the beginning of the day payment was due. It is applied on a daily compounding basis — each day's charge is calculated on the unpaid balance including unpaid GIC from earlier days.
The current GIC rate for Q2 2026-27 (1 October 2026 to 31 December 2026) is 11.51% per annum.
Every quarter back to July 2022, with both annual and daily rates for GIC and SIC, is set out on the ATO GIC and SIC rates reference.
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 11.51%
| Day | Opening Balance | Daily GIC | Closing Balance |
|---|---|---|---|
| Day 1 | $10,000.00 | $3.15 | $10,003.15 |
| Day 2 | $10,003.15 | $3.15 | $10,006.31 |
| Day 30 | — | — | $10,094.37 |
Over these 30 charge days, the official October to December 2026 daily rate produces $94.37 of GIC. The calculator uses unrounded running balances.
GIC is No Longer Tax-Deductible
For assessments for income years starting on or after 1 July 2025, GIC is no longer deductible. Previously it was deductible under section 8-1 of the ITAA 1997.
Compare carefully: Interest in assessments for income years starting on or after 1 July 2025 no longer produces a tax deduction. If considering another form of finance, compare total costs and obtain advice appropriate to your circumstances.
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 11.51% 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.
Paying in instalments? The ATO payment plan calculator builds the instalment schedule and shows the GIC on every payment.
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% |
| Rate (Oct-Dec 2026) | 11.51% p.a. | 7.51% p.a. |
| Compounding | Daily | Daily |
| Tax-deductible from 1 Jul 2025 | No | No |
SIC generally runs from the original assessment payment due date through the day before the ATO gives notice of the amended assessment. GIC may then apply if the additional tax is not paid by its due date.
GIC prices late payment. Late lodgment is a separate charge — the failure to lodge penalty accrues one penalty unit per 28 days overdue, capped at five. Estimate it with the failure to lodge penalty calculator.
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
Tax year: 2026-27
This calculator estimates GIC or SIC only for dates covered by published ATO rates. Actual account charges can differ because of payment posting, account allocation, remission and other adjustments.