Taxpayers and tax agents are now required to submit formal application forms when requesting the remission of penalties such as Failure to Lodge (FTL) or interest charges like General Interest Charge (GIC). These requests must include detailed explanations of the circumstances that led to the issue, along with any supporting evidence.

The ATO has indicated that these changes are designed to ensure greater consistency in how remission requests are assessed.

At the same time, legislative changes mean that ATO interest charges are no longer tax deductible from 1 July 2025, increasing the cost of unresolved tax debts.

If you have received ATO penalties or interest charges and would like assistance reviewing your options or preparing a remission request, please contact our office and we would be happy to assist.