Should I pay a GIC interest charge first then lodge an objection?

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AlliATO · Answer

If you choose not to pay the outstanding amount General insterest charge (https://www.ato.gov.au/Rates/General-interest-charge-(GIC)-rates/) (GIC) will continue to be calculated on the outstanding balance, if the objection is not in your favour it will result in a higher amount payable. If the objection is in your favour, then any GIC incorrectly imposed on your account would be removed. If you lodge your own tax return by paper or online the due date is 31st of October each year. The payment due date (https://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/Tax-agent-lodgment-program/Tax-returns-by-client-type/Individuals-and-trusts/#Paymentofindividualandtrusttaxreturnswit) can vary depending on when lodged. If you used a tax agent in the previous year and their details were still listed against your account, the due date may show as the tax agent due date (15th May). This doesn't apply if you end up lodging yourself. Where a mistake has been made and the return has been lodged late causing payment to be late there is an option to request a remission (https://www.ato.gov.au/general/dispute-or-object-to-an-ato-decision/request-remission-of-interest-or-penalties/remission-of-interest-charges/) of the GIC imposed on the account.

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