26 June 2025
Chartered Accountants Australia and New Zealand (CA ANZ) urges Australian small businesses to review their tax and cash flow strategies ahead of a significant change to tax deductibility rules that could cost them thousands.
From 1 July 2025, interest charged by the Australian Taxation Office (ATO) on late tax payments – currently set at 11.17% and compounding daily – will no longer be tax deductible.
CA ANZ Tax Expert Susan Franks warns this change will substantially increase the real cost of falling behind on tax obligations, particularly for small businesses already operating on tight margins.
“Small businesses currently hold the majority of the ATO’s outstanding tax debt, and this…