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#EveryoneNeedsaPlan to Not Pay the ATO's High Interest Rates
Posted by G. Dean McKinnon
on 8 March 2022
When you arrange a payment plan with the ATO you are charged interest rates which are likely much higher than the rate you can achieve in the market.
The ATO review their interest rate on a quarterly basis. The most recent quarterly update for April – June 2022 was recently published, increasing the General Interest Charge (GIC) rate to 7.07%.
The GIC is applied for late payment of taxes and other obligations, is compounded daily, and tax-deductible. However, an easy way avoid this high interest rate is to make sure you pay your tax and other obligations on time. If you do not have the money, it may be more cost effective to arrange financing via your home loan or business loan facilities.
McKinnon Financial Planning coordinate all tax requirements for our Total Service Clients, so do not hesitate to contact us and arrange a free initial appointment to discuss your Financial Planning requirements and our services.
The ATO review their interest rate on a quarterly basis. The most recent quarterly update for April – June 2022 was recently published, increasing the General Interest Charge (GIC) rate to 7.07%.
The GIC is applied for late payment of taxes and other obligations, is compounded daily, and tax-deductible. However, an easy way avoid this high interest rate is to make sure you pay your tax and other obligations on time. If you do not have the money, it may be more cost effective to arrange financing via your home loan or business loan facilities.
McKinnon Financial Planning coordinate all tax requirements for our Total Service Clients, so do not hesitate to contact us and arrange a free initial appointment to discuss your Financial Planning requirements and our services.
Author:G. Dean McKinnon
| Tags:Tax |
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