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MOTIVATED's avatar
MOTIVATED
Experienced Cover User
6 months ago
Solved

ATO Interest no longer claimable

Hello, The ATO has stopped Interest from being claimable as 1st July 2025. Wondering the best way to handle the interest which we would usually DR expense account and credit ATO integrated account ...
  • DuncanS's avatar
    DuncanS
    5 months ago

    MOTIVATED​ Shella_A​ 

     

    I will be setting up a Other Expense Ledger called General Interest Charge ATO Non-Deductible.

     

    Duncan

Julie_A_C's avatar
Julie_A_C
Ultimate Cover User
3 months ago

Hi Shella_A​ DuncanS​ MOTIVATED​ 

As Duncan has said, allocate to Other expense.  The Accountant will know it is ATO GIC if you state that in the account name.  They will then record it as an add back in the tax return.

A lot of times the actual tax return is different to the Financials of the business, due to things being expenses but not being a tax deduction. 

Naming the expense clearly also brings it to the attention of any prospective buyers and the seller, that it is an expense that the new owner may not actually have and therefore they will have a better profit margin.

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