#EveryoneNeedsAPlan: Tax Debt Loan Interest Not Deductible From 1 July 2025

The federal government announced recently that they would introduce amendments to disallow tax deductions for interest incurred on tax debts

• Both the General Interest charge and Shortfall Interest Charge will not be a tax-deductible expense for the taxpayer
• The changes are proposed to commence from 1 July 2025 – i.e. 2026 FY
• Currently, both Interest Charges are tax deductible to the taxpayer