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AshleyMartin(Initiate)Initiate
28 Mar 2025

I was charged General Interest Chargers on the December 2024 BAS but it was paid by the due date.


I haven't come across this before. The due date was 28 February and it was paid via bpay on 28 February prior to the cut off of 6pm. Every quarter I paid on the due date and I haven't been charged general interest chargers before.


It appears the ATO is charging general interest based off the processing date not the effective date. The payment is showing on the transaction list with the processing date of 4 March and effective date of 28 February. The interest has been charged 28 Feb to 2 March (3 days).


I was able to get the general interest chargers remitted but it did involve a 20 minute call to the ATO.


Have the ATO changed their general interest charge calculations and are calculating on the processing date? Are they not allowing a few days to before charging interest to give time for payments to come through?

493 views
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493 views
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RachelATO(Community Moderator)Community Moderator
28 Mar 2025

HI @AshleyMartin,


Without being able to see your accounts, we couldn't tell you exactly why GIC was imposed in your situation.


GIC is applied if there's a tax amount owing. This includes where there's a shortfall because of an amendment or correction, an instalment of tax is underestimated, or a return is lodged late.

AshleyMartin(Initiate)Initiate
31 Mar 2025

Hi Rachel,


This didn't just affect ourselves (the tax agent) but also a large amount of our clients.


For reference the case I mentioned was for a tax agents December BAS but it also happened for our clients as we started receiving debt notices for them so it wasn't a one off individual case.


I'm not able to upload an image with the transactions but below is the details for the example.


As at 21 February there was nothing owning on the Activity Statement Account. I used that date because that was when the Jan IAS was lodged and paid, prior to that transaction there was also nothing owing on the account.


Transaction list:

28 February (Processed and Effective Date)-Original Activity Statement $***DR

3 March (Processed and Effective Date)- General interest charged calculated 24 Feb 25 to 2 Mar 25 $**DR

4 March (Processed date) 28 Feb (Effective Date)- Payment received $***CR


Due date and payment date for last quarter was a Friday. Amount was paid early afternoon on 28 Feb, well within BPay cut off time. Interest charged and calculated for a Sunday and appeared on account on the Monday. Payment processed on the Tuesday but acknowledged the effective date was the due date. GIC wasn't removed until I contact ATO.


We noticed it also affected our clients when we started to receive debt notices for them for the GIC but they had paid their BAS's on time and had no other chargers or shortfalls.

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