• Estimated general interest charge - calculation details

    This screen allows you to view an estimated amended general interest charge (GIC).

    The amounts displayed are estimates only and are based on account transactions processed up to the time of this request. The calculations may be affected by subsequent transactions being applied to the account.

     

    GIC is a common single rate of interest, for all tax types, that is imposed when a payment is not received by the due date. It is calculated on a daily compounding basis on all amounts outstanding on an account, from the due date up to the day before the debt is finalised.

    In most instances, the GIC is tax deductible in the income year it is incurred or accrued, even if it has not been paid. If the Commissioner subsequently remits or reduces the GIC claimed as a tax deduction, the amount remitted is taxable in the income year it is remitted.

    Estimated amended GIC calculation details

    Each row reflects either a change in the amount on which GIC is calculated, or a change in the interest rate over the period for which GIC has been calculated.

     

    Estimated amended GIC is an amount of GIC calculated but not posted to the account. This amount is an estimate and may be subject to further change if amendments are made to the account before GIC is actually posted to the account.

    Amended GIC occurs when an amount on which GIC has been calculated has either increased or decreased after the due date. This will occur when an outstanding amount changes – for example, as the result of:

    • processing a late activity statement, or
    • allocation of a payment retrospectively.

    The amount can be a credit or debit.

    Screen fields:

     

    Date from


     

    The start date of a GIC calculation interval.


     

     

     

    Date to


     

    The end date of a GIC calculation interval.


     

     

     

    Interest rate %


     

    The GIC interest rate which applies to the calculation interval (GIC rates are reviewed quarterly).


     

     

     

    Days


     

    The number of days within the calculation interval including the ‘Date from’ and ‘Date to’.


     

     

     

    Calculate on


     

    The amount on which the calculation is based. It is the total amount due for payment during a calculation interval.


     

     

     

    Calculated general interest charge


     

    The total amount of estimated GIC for the calculation interval.


     

     

     

    Estimate of total general interest charge recalculated


     

    The total of the estimated calculated GIC amounts covering all calculation intervals.


     

     

     

    Total general interest charge already posted


     

    The GIC amount previously posted to the client’s account. It may comprise more than one GIC transaction and is the total of all GIC amounts posted.


     

     

     

    Estimated amended general interest charge


     

    The difference between the estimated re calculated GIC and the total GIC previously posted to the client’s account. This amount can be either a debit or credit.

    Payments

    Payment options and methods provides you with information about how to make a payment.

    Account queries

    For more information about an account, send us a message via ‘Mail’ located on the left navigation bar.

    Back to top

Relying on our information - our commitment to you

We are committed to providing you with advice and guidance you can rely on, so we make every effort to ensure that what we give you is correct.

If you follow our advice or guidance and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the advice and guidance on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our advice and guidance does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

Copyright

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).