Proposed GIC deduction changes cop further backlash
Reforms to remove deductions for the general interest charge will disproportionately impact small businesses already struggling with high inflation and interest rates, CPA warns.
CPA Australia is the latest industry body to criticize the government’s plans to deny deductions for the General Interest Charge (GIC) and Shortfall Interest Charge, stating that the proposal is excessive and lacks a sound policy basis.
The professional body said the reforms, set to commence on 1 July 2025, raise significant concerns, particularly for small businesses and individuals.
CPA said the changes will have a “disproportionate impact on small businesses”.
“Small businesses already face significant challenges, such as high inflation, rising interest rates, and limited access to affordable financing,” the submission said.
The submission said the government should instead introduce targeted measures that focus on high-debt accounts rather than penalising generally compliant small businesses by denying a deduction for GIC and SIC.
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