The Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2024 passed both houses of Parliament last week on 26th March. The measures contained in this bill are now law and include:

• From 1 July 2025, the ATO’s general interest charge (GIC) and shortfall interest charge (SIC) will be non-deductible. This applies to GIC and SIC that is imposed from 1 July 2025. GIC and SIC incurred before this date will still be deductible.

For interest imposed on tax debts before 1 July 2025, you will be able to claim deductions however, where new interest charges (GIC or SIC) are imposed to new and existing tax debts from 1 July 2025, you will not be able to claim a deduction. The GIC rate for the current quarter is 11.17% and the SIC rate is 7.17%.

If you currently have tax debts incurring GIS/SIC, now is a good time to assess how you will manage the non-deductibility of the interest charges going forward.

• The instant asset write-off of $20,000 was extended to apply to the 2024-25 year for assets that are first used or held ready for use by small businesses (aggregated turnover of less than $10m) in the 2024-25 year. The threshold will revert to $1,000 on 1 July 2025 unless a further extension is legislated.

Eligible small businesses now have just under 3 months in which to acquire new depreciating assets (up to $20,000) with the certainty that a full deduction will be available.

• The period in which the Commissioner must notify a taxpayer of a decision to retain a BAS refund by the ATO has been extended from 14 to 30 days.

If your business is affected by these changes—or if you’re unsure how they might impact you—don’t hesitate to reach out to our team today.