ATO Income Tax Owed, 0% GIC Offered?

lachhelix on 24/06/2023 - 00:24

Curious to know what's going on here!

I owe $5k for last FY personal income tax due end of July, when looking under payment plans for this income statement, you can go through the process to setup a payment plan, selecting the upfront payment amount and then splitting the remainder into 10 payments and the final step before setting it up says:

"Total including $0.00 estimated general interest charge" with a breakdown of each payment, when they're due and all adding up to the total

Is this strange? I always thought the GIC is around 10% now. Obviously will pay in full if they're going to charge me interest, but this implies they're not going to (unless the "estimate" changes even after the payment plan has been setup)
What do we reckon?

Poll Options

  • 12
    No GIC applied
  • 2
    GIC applied
  • 6
    Bikies
Financial

Comments

  • iforgotmysocks on 24/06/2023 - 00:55

    Yes

  • JVHifi on 24/06/2023 - 01:32
    +2

    It seems to be how their system works. I’ve had tax debts from a few thousand to tens of thousands and there is a point at which the GIC kicks in. So in other words, where the debt is say 10k or under, you may be able to arrange a payment plan without any GIC over a year. Not sure on the exact threshold they use but that’s the way I felt it worked at least

  • Pufff on 24/06/2023 - 11:49

    There is interest but from speaking to the ATO in the past it seems their system will waive up to a certain amount. eg their system shows you actually owe 1020 pm, you pay 1000 with 20 left over and the system automatically offsets the 20 with a credit. What the exact amount is I don't know but that's what one of their consultants implied but said they couldn't confirm to me.

  • TheGuru on 26/06/2023 - 14:41
    +1

    debts of under 10K dont get GIC

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