How do I get ATO interest waived?

What the ATO is looking for

The ATO's test is whether it is fair and reasonable to remit. In practice it asks three questions. What caused the delay? Was it outside your control? What did you do about it once you could? Requests that succeed tend to involve:

• Serious illness or injury of you or a key person.
• Natural disaster, fire, flood or theft affecting the business.
• A major customer failing to pay or going into liquidation.
• An ATO error or delay that added to the interest.
• An honest mistake you disclosed promptly and fixed.

A clean compliance history carries real weight. For GIC of $2,500 or less, the ATO says a positive history will strongly influence the decision. What does not work is "business was slow" or "I could not afford it" on its own, especially if other creditors were being paid while the ATO waited.

How to ask

By phone on 13 11 42 for smaller amounts. Have your statement of account open, know the exact GIC figure and be ready to explain the cause in two or three sentences. Many small requests are decided on the call.

In writing for anything substantial. Use the ATO's remission request form or a written request through online services. A strong request has five parts: the exact amount and period of interest you want remitted, the specific event and its dates, what you did to fix things, your compliance history, and attached evidence such as medical certificates, bank statements or correspondence. Ask for full remission and say that partial remission would be accepted as a fallback.

Since the ATO tightened its approach in 2025 and 2026, casual remissions are rarer and outcomes are more consistent. A vague request is now more likely to be refused than waved through.

When to ask, and what if they say no

Timing matters. The ATO is more receptive once the primary tax is paid or a payment plan is in place and being kept. The message is "the problem is solved, now please look at the interest". Asking for remission while the tax is still unpaid and nothing is arranged rarely works.

There is no objection right against a GIC remission decision. If the ATO refuses, your options are to resubmit with better evidence or, in rare cases, seek judicial review. A second attempt that adds documents and a clear timeline often does better than the first. If you are also carrying penalties, ask about penalty remission in the same request, and check whether serious hardship applies to your situation.

What to do next

1. Write down the event that caused the delay, with dates, and gather any evidence that proves it.
2. Get the primary tax paid or a payment plan in place before you lodge the request.
3. Call 13 11 42 for amounts under about $2,500, or send a written request with evidence for anything larger.

More questions: 15 ATO interest and penalties questions answered · Full guide: GIC remission