What is the ATO general interest charge rate right now?

How the GIC rate is set

The GIC rate is not a number the ATO picks. It is set by a formula in the Taxation Administration Act: the 90 day bank bill rate published by the Reserve Bank, plus an uplift of 7%. The ATO publishes a new rate at the start of each quarter and divides it by the days in the year to get the daily rate. For July to September 2026 the daily rate is 0.03131507%.

Because the uplift is fixed at 7%, GIC will always sit well above what a bank would charge a business with a clean record. That is deliberate. The charge is designed to make the ATO the most expensive lender you have, so that a tax debt is the first one you clear.

What 11.43% means in dollars

Daily compounding means interest is charged on yesterday's interest as well as the original tax. Over a full year at the current rate, a debt grows by roughly 12.1%, not 11.43%. In round numbers:

• $20,000 owed for a year: about $2,400 in GIC.
• $50,000 owed for a year: about $6,000 in GIC.
• $100,000 owed for two years: roughly $24,000 in GIC, if the rate stayed where it is.

Since 1 July 2025 that interest is no longer tax deductible, so the true cost is higher again. A company paying 25% tax now needs to earn more than 15% before tax to cover an 11.43% charge. The same debt in an employee's hands can cost the equivalent of 20% or more.

The ATO also charges a separate shortfall interest charge when an assessment is amended. That runs at a lower rate, 7.43% this quarter, but switches to GIC once the amended bill falls due.

What you can do about it

You cannot argue the rate down. It is fixed by law. What you can influence is how long it runs for and whether it stays on your account.

• Pay what you can now, even part of the debt. Every dollar paid stops accruing interest that day.
• Set up an ATO payment plan if you cannot pay in full. Be aware that GIC keeps running inside a plan unless the ATO agrees to remit it.
• Ask for remission once the tax is paid or the plan is holding. The ATO does remit GIC when the delay was caused by something outside your control, and small amounts are often decided on the phone.

If the debt is large enough that interest alone is eating your cash flow, that is the point to look at the wider options for a tax bill you cannot pay rather than waiting for the next quarter's rate.

What to do next

1. Check your ATO statement of account for the GIC line so you know how much interest has already been added.
2. Pay anything you can towards the primary tax now, because interest stops on every dollar paid.
3. If the balance cannot be cleared, set up a payment plan and then ask about GIC remission.

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