ATO GIC 10.65% (Jan–Mar 2026): Daily Interest Calculator & How to Stop It Fast
Short answer first:
If you have an overdue tax bill, the ATO is charging a General Interest Charge (GIC) of
10.65% per annum for the January–March 2026 quarter.
This interest is calculated daily and effectively compounds until the debt is paid.
45-Second Summary (Busy Aussies)
- ATO GIC rate (Jan–Mar 2026): 10.65% per year
- Daily rate: about 0.029178% per day
- How it’s charged: calculated daily and compounds
- Important: since 1 July 2025, GIC is not tax-deductible
What Is the ATO General Interest Charge (GIC)?
The General Interest Charge is interest applied by the Australian Taxation Office when a tax debt is not paid by its due date. It applies to income tax, BAS, GST, PAYG instalments and most other ATO liabilities.
Once the due date passes, GIC starts accruing every single day. The longer the balance remains unpaid, the more interest you pay.
ATO GIC Rate for January–March 2026
For the January to March 2026 quarter, the ATO has confirmed the following rates:
| Annual GIC rate | 10.65% |
|---|---|
| Daily GIC rate | 0.029178% per day |
This daily rate is applied to your outstanding balance and compounds, meaning today’s interest increases tomorrow’s calculation.
Daily GIC Calculator (Simple and Practical)
Use this formula to estimate your daily interest cost:
Daily GIC ≈ Outstanding balance × 0.00029178
Real-World Examples
| Outstanding ATO Debt | Daily GIC (Approx.) |
|---|---|
| $1,000 | $0.29 per day |
| $5,000 | $1.46 per day |
| $10,000 | $2.92 per day |
It may look minor day to day, but over weeks or months, this interest can add up to hundreds or even thousands of dollars.
Why GIC Hurts More Than Before
- Interest rates remain historically high
- GIC compounds daily, not monthly
- From 1 July 2025, GIC is no longer tax-deductible
- ATO debt collection is faster and more proactive
How to Stop ATO GIC as Fast as Possible
- Pay the debt in full
GIC stops immediately once the balance reaches zero. - Reduce the principal early
Even partial payments lower future daily interest. - Set up an ATO payment plan
Interest still applies, but structured payments prevent escalation. - Contact the ATO early
Proactive contact is viewed more favourably than silence. - Consider external finance
In some cases, a lower-interest loan may cost less overall.
Common Mistakes to Avoid
- Assuming GIC is tax-deductible (it isn’t anymore)
- Ignoring small daily amounts
- Waiting for the ATO to chase you
- Missing payment plan instalments
Frequently Asked Questions
Does GIC still apply if I’m on a payment plan?
Yes. GIC continues to accrue until the full balance is paid.
Is GIC the same as an ATO penalty?
No. GIC is interest, not a penalty. Penalties may apply separately.
Can the ATO waive GIC?
In limited cases (for example, serious hardship or ATO error), you can request remission, but approval is not guaranteed.
Sources
- Australian Taxation Office – General Interest Charge rates (2025–26)
- ATO – Interest and penalties on unpaid tax
