The ATO has published the general interest charge (GIC) and shortfall interest charge (SIC) rates for the period from 1 April 2015 to 30 June 2015.
The rates are as follows:
- the GIC rate is 9.36%
- the GIC daily compounding rate is 0.02564383%
- the SIC rate is 5.36%, and
- the SIC daily compounding rate is 0.01468493%.
Source: ATO website, 5 March 2015.
FJM Note – ‘base rate’
This shows that the ‘base rate’, on which these two rates are based, is 2.36% – there being a 3% point uplift for the SIC and a 7% point uplift for the GIC. Both ‘up-lifts’ are far too high, in my opinion. Both GIC and SIC amounts are deductible when incurred for income tax purposes (s25-5(1)(c) of the ITAA97).