See what your ATO debt is really costing you. This calculator uses the ATO’s published interest rates, compounding daily, and shows the tax deduction you no longer get since 1 July 2025.
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Check your optionsHow this calculator works. It applies the ATO's published general interest charge (GIC) rates, compounding daily, from the day after the due date. The daily rate is the annual rate divided by the number of days in that year. Future periods use the latest published rate (), which will change each quarter. GIC incurred on or after 1 July 2025 isn't tax deductible, so the "deduction you miss out on" is that interest multiplied by the tax rate you selected. Payment plan repayments assume equal monthly payments with GIC continuing to accrue. Loan repayments assume equal monthly principal and interest payments with the establishment fee added to the loan.
What it doesn't include. Penalties such as failure-to-lodge penalties, shortfall interest charge, payments you've already made, any GIC the ATO may remit, or other lender fees. Your ATO statement is the authoritative figure. Interest on a loan used to pay a tax debt may be deductible for some businesses; the loan figures are shown before any deduction, so ask your accountant.
Important. This calculator is general information only. It isn't financial, tax or credit advice, isn't a quote or an offer of credit, and doesn't take your circumstances into account. Speak to your accountant or tax adviser about your tax position. GIC rates source: ATO general interest charge rates. Factor Capital is a trading name of Zinc Finance Pty Ltd (ABN 90 668 675 965). Factor Capital arranges finance for business and commercial purposes only. It does not provide credit assistance for consumer credit regulated under the National Consumer Credit Protection Act 2009 (Cth), including home loans and personal loans.
GIC is the interest the ATO charges on unpaid tax and on some late-lodged amounts. It is calculated daily and compounds, so interest is charged on interest. The rate is set every quarter. For October to December 2026 it is 11.51% a year.
No. GIC and shortfall interest charge incurred on or after 1 July 2025 can no longer be claimed as a tax deduction, even if the underlying debt is from an earlier year. If the ATO later remits (waives) GIC incurred after that date, the remitted amount doesn’t have to be counted as income.
Yes, for businesses. The ATO may report a business tax debt to credit reporting bureaus if at least $100,000 is overdue by more than 90 days and the business isn’t actively engaging with the ATO, for example through a payment plan. The ATO sends written notice and allows 28 days to act first.
It depends on the loan. Property-backed business loans can cost less than GIC. Unsecured business loans often cost more, but can still make sense to stop enforcement action, protect your credit file or free up cash flow. Use the calculator to compare, then speak to your accountant about your tax position.
Read more: ATO debt in 2026: what’s changed for small businesses and our guide to ATO payment plans.
