In early 2026 the Taxation Ombudsman released a review into the ATO’s decision making process in relation to the remission of General Interest Charge (GIC) to taxpayers. GIC accrues on unpaid tax debts and taxpayers are liable for it, however, the ATO has a discretion in some circumstances to reduce or waive (remit) GIC claimed.
The review concluded that inconsistent decision‑making, unclear administrative guidance and inadequate communication have contributed to confusion and inequitable outcomes for taxpayers seeking a remission of GIC. The report found:
- A Growth in GIC Liabilities; between 2019 and 2025, the total GIC balance increased by 185%, being a significant amount.
- A Recent Shift in the ATO’s Approach; from late 2023, the ATO adopted a more harsh approach to GIC remission and began refusing more requests made, without adequate public communication, resulting in confusion and frustration among taxpayers and advisers.
- Disparity in Remission Outcomes; in 2025, large business taxpayers experienced higher approval rates for GIC remission compared with individuals and small businesses.
- Inconsistency in Decision Making; there has been inconsistent application of remission requests leading to differing and unfair outcomes.
Recommendations Made by the Taxation Ombudsman
The Taxation Ombudsman made four recommendations to the ATO to improve the GIC remission process being:
- Provide better training to ATO staff, including to consider greater use of partial remission and explore options for upfront agreements of full or partial GIC remission for a specific period when approving payment plans.
- Improve consistency by further refining its guidance to ATO staff.
- Improve the level of details in letters refusing GIC remission and the transparency of review options.
- Conduct a post implementation review of the January 2026 GIC remission changes within 12 months.
The ATO has advised that it has or will agree to these recommendations.
When will the ATO Consider a GIC Remission Request
The ATO’s current guidance is that every GIC remission request is decided on its merits however, they may look more favorably on a request if a taxpayer has encountered one of the following issues:
- where they have been impacted by natural disaster (such as fire, flood or drought);
- where a taxpayer’s accountant has been impacted by natural disaster;
- where industrial action has impacted a business;
- where there has been a collapse of a major customer or a failure by a major customer to pay a debt owed;
- there has been a medical emergency or ill health of a taxpayer, or director of a taxpayer;
- there has been theft of property of a business;
- there has been damage to property of a business which impacts its trading;
- where there has been a death or serious illness of a close family member.
This list is obviously not exhaustive and taxpayers with GIC debts should seek appropriate advice and assistance.
Information and Advice
If you wish to obtain advice or assistance regarding any of the above matters, please contact our Brisbane or Gold Coast office. Our experienced staff will be able to assist you.
