Shortfall Interest Charges (SIC) and General Interest Charges (GIC) are applied to unpaid tax liabilities. Shortfall Interest Charges are applied to the amount the ATO increases your debt by (usually through an audit). General Interest Charges are applied to any amount that is not paid by the due date. GIC is 8% higher than the cash target rate (variable) so is always higher than a commercial financial lender would offer. This is because the ATO do not want to be seen as a lending institution for the convenience of taxpayers. These interest charges are also backdated, which can be many years, in cases where the ATO audits you over a number of previous years. We can negotiate a reduction of these charges with the ATO to ensure that the interest component outweighs the tax you owe.