Tax Update September 2025

General interest charges no longer tax deductible

The ATO is reminding taxpayers the general interest charge (GIC) applied on an unpaid amount of tax or other liabilities after the due date is no longer tax deductible.

The current rate applied to GIC debts is 11.17 per cent, with the interest charge compounding daily.

Prior to 1 July 2025, GIC could be claimed as a deduction in the business schedule of a tax return, but with the deduction no longer available, small businesses carrying any tax debts will now pay more.

Small Business Clearing House to close

The ATO’s Small Business Clearing House (SBCH) will shut down ahead of the new Payday Super regime launching 1 July 2026.

Small businesses with 19 or fewer employees could use the SBCH to pay their quarterly super contributions to the super funds selected by eligible employees.

The ATO says it will provide information to small businesses about transitioning to alternative super payment services, but businesses are being encouraged to take steps towards changing their payment arrangements before 1 July 2026.

Notifying SMSF changes

SMSF trustees are being urged to ensure they notify the ATO whenever modifications are made to their SMSF.

Changes related to the fund’s contact details, structure, status or bank account must all be submitted to the regulator within 28 days.

Once the ATO receives the change details, the regulator will send an alert vis SMS or email to safeguard the SMSF against potential fraud or misconduct.

Work-related deductions continue to grow

Release of the annual Taxation Statistics Report for 2022-23 shows work-related expenses continue to dominate the tax deductions claimed by individuals, ensuring the ATO will maintain its current focus on this area.

Work-related expenses accounted for 50 per cent of individual deduction claims, with 10.3 million Australian taxpayers claiming an average of $2,739 per person in 2022-23.