Home topics news Credit: ATO News Tax News New ATO remission rules outline exactly when late payment fees can be waived Yajush Gupta January 26, 2026 Late payments from clients aren’t valid excuses for overdue ATO bills under guidance released Thursday. We break down when the tax office will actually waive interest charges on tax debt. What’s happening : The Australian Taxation Office released updated guidelines on 22 January 2026 clarifying when businesses can request remission of General Interest Charge penalties on late tax payments. Why this matters : With GIC becoming non-deductible from 1 July 2025, the financial impact on small businesses facing tax debts has significantly increased. Late payments from a creditor or unexpectedly poor trading conditions are no excuse for overdue payments to the Australian Taxation Office, according to new guidelines for General Interest Charge remissions. The GIC is a financial penalty levelled on tax payments that go unpaid after their due date, encouraging the prompt payment of outstanding debts. The ATO has the power to remit GIC in extenuating circumstances. But some tax agents fear it is becoming harder to secure a remission, or understand the logic behind the tax office’s decisions. To assuage some of those concerns, the ATO on Thursday shared details about the remission request process, in the hopes of helping taxpayers and tax agents understand when those charges are likely to be waived away. To request a remission of GIC or SIC, visit How to request a remission of interest and failure