Can I claim interest on ATO debt paid off?

[#1]

I have just paid off a tax debt and wondering if I am able to claim the interest I paid on the debt, in my tax return. If so, where do I enter those details?

[#2 · Accepted solution]

Yes, you can claim a deduction for ATO interest in the financial year that it is incurred.

You can claim at item D10N– Cost of managing tax affairs - Interest charged by the ATO, in the income tax return.

ATO general enquiries 13 28 61

[#3]

@corinneabrown @Anonymous

The ATO information states you can claim the interest when it was incurred.

ATO interest may appear on the Pre-filling Report or you can calculate by reference to your Income Tax Account.

The ATO may have remitted the interest in which case you have a deduction and Interest Income from the ATO.

Duncan