ATO GIC Rate Now 11.43% p.a. (July–September 2026)
- Published
- March 2026
- Last reviewed
- Tax-year context
- Current
- Reading time
- 4 min
General information only — we maintain pages with primary-source checks and date-based reviews. See editorial policy.
The ATO General Interest Charge (GIC) rate for the July–September 2026 quarter is 11.43% per annum, compounding daily — the highest rate since early 2025.
This rate applies to all overdue tax amounts including income tax, GST, PAYG, and superannuation guarantee charge debts.
General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
Current and recent GIC rates
The GIC rate is set quarterly by the ATO. It’s calculated as the 90-day bank bill rate plus a 7% uplift, rounded to 2 decimal places. The Shortfall Interest Charge (SIC) is lower — it uses a 3% uplift instead of 7%.
| Quarter | GIC rate | SIC rate | Base rate |
|---|---|---|---|
| Jul–Sep 2026 (current) | 11.43% | 7.43% | 4.43% |
| Apr–Jun 2026 | 10.96% | 6.96% | 3.96% |
| Jan–Mar 2026 | 10.65% | 6.65% | 3.65% |
| Oct–Dec 2025 | 10.61% | 6.61% | 3.61% |
| Jul–Sep 2025 | 10.78% | 6.78% | 3.78% |
After easing through late 2025, the rate has climbed again through 2026 as short-term market rates firmed — carrying an ATO debt is getting more expensive each quarter.
GIC vs SIC: what’s the difference?
These two charges sound similar but apply in different situations:
- GIC (General Interest Charge): Applies when the ATO has issued an assessment and you haven’t paid by the due date. It’s the standard late-payment charge on any overdue tax debt.
- SIC (Shortfall Interest Charge): Applies when the ATO amends your assessment upward — for example, after an audit finds you understated income. SIC is charged for the period between when you should have paid (original due date) and when the ATO issues the amended assessment. After that, GIC takes over.
SIC is lower (7.43% vs 11.43% in the current quarter) because you weren’t deliberately avoiding payment — you paid what you thought you owed.
How GIC compounds: the daily calculation
GIC compounds daily, which means interest accrues on top of previously accrued interest. The formula:
- Daily rate = annual GIC rate ÷ 365
- Balance after N days = overdue amount × (1 + daily rate)^N
At 11.43% p.a., the daily rate is 11.43% ÷ 365 = 0.03132% per day.
Worked example
You have a $10,000 income tax debt that is 90 days overdue. At the July–September 2026 GIC rate of 11.43%:
- Daily rate: 11.43% ÷ 365 = 0.0003132
- After 90 days: $10,000 × (1.0003132)^90 = $10,285.80
- GIC charged: $285.80
Leave the same debt unpaid for a full year and the GIC adds approximately $1,211 — before any penalties.
Use the ATO GIC calculator to model your specific debt over time.
GIC is no longer tax-deductible
This is the most important recent change: GIC and SIC are no longer deductible for amounts incurred on or after 1 July 2025.
Prior to this date, you could claim a deduction for GIC and SIC under s25-5 of ITAA 1997. The Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025 removed this deduction by inserting s26-51 into the ITAA 1997.
What this means in practice: a $1,000 GIC bill used to cost a 37% marginal-rate taxpayer around $630 after tax. Now it costs the full $1,000. Settling ATO debts quickly matters more than it used to.
How to reduce or avoid GIC
Pay on time. GIC stops accruing from the day you pay. Even a partial payment reduces the principal it compounds on.
Set up a payment plan. If you can’t pay in full, contact the ATO before the due date to set up a payment arrangement. GIC still accrues on the unpaid balance, but you avoid the 25% administrative penalty (Failure to Lodge or Failure to Pay) that can be added to the debt.
Request remission. The ATO can remit (waive) GIC in certain circumstances — serious illness, natural disaster, or where the debt arose due to ATO error or delay. You need to apply in writing and provide supporting evidence. Remission isn’t guaranteed, but it’s worth asking for if your situation qualifies.
Don’t let SIC turn into GIC. If you receive an amended assessment, pay it by the date shown on the notice. SIC accrues up to that date; unpaid amounts after that date attract the higher GIC rate.
Key takeaways
- Current (Jul–Sep 2026) GIC rate: 11.43% p.a., compounding daily
- SIC (for amended assessments): 7.43% p.a.
- GIC and SIC are not deductible for amounts incurred from 1 July 2025
- Payment plans reduce penalties but GIC still accrues on the balance
- Remission is available in genuine hardship or ATO-error cases