Explain what happened. Support it with evidence.

A request outline to adapt with your accountant

Identify the relevant account, liability and period. Explain the events that caused the payment delay, include the dates and describe how the events affected your ability to pay. Provide supporting records and the steps you took to limit the delay.

Finish by stating the interest amount or periods you ask the ATO to consider for remission. Do not copy a fictional hardship story or claim circumstances that do not apply. This outline is not a guarantee, legal submission or complete template for every case.

Remission is a decision, not an entitlement

The ATO may remit some or all general interest charge in eligible circumstances. A request should explain what happened, how it affected payment and what you did to address it. Evidence matters.

Remission of interest is different from reducing the underlying tax liability. Do not assume that paying through a loan or entering a plan will make interest disappear. Your accountant can help assess whether a request is appropriate.

Prepare an accurate explanation

Provide a clear timeline, relevant records and details of steps taken to limit the delay. The ATO assesses the request under its rules; success and timing are not guaranteed.

Continue to address the payment position while a request is considered. If you have received a notice, confirm any deadline separately. A remission request should not be assumed to pause recovery action.

A useful evidence pack is specific and truthful

Group the timeline, correspondence and financial records by date. Explain which events affected payment, what you did to reduce the delay and when normal payment capacity changed. Avoid unnecessary sensitive material and use an appropriate channel for documents.

Have your accountant check that the request identifies the correct account and interest periods. Keep a copy and record the response, but continue dealing with payment obligations while the request is assessed.

What remission actually is — and is not

Remission of GIC means asking the ATO to reduce or cancel some or all of the interest charged on a debt. It is a discretionary decision made by the ATO based on the circumstances you present and the evidence you provide — it is not an automatic entitlement, and submitting a request does not pause the accrual of further interest while the ATO considers it.

Remission is also separate from debt release or non-pursuit. Remission deals only with the interest component; it does not forgive the underlying tax, GST or super debt itself. Understanding this distinction helps set realistic expectations before you write the request.

What the ATO typically wants to see

A remission request generally needs to explain what happened, when it happened, and how it affected your ability to pay on time. Vague statements about "a tough year" are weaker than a specific, dated account: an illness, a natural disaster, a major customer failure, a system outage, or another identifiable event, supported by records where you have them.

It also helps to show what you did once the issue arose — did you contact the ATO promptly, did you lodge on time even though you could not pay, did you take reasonable steps to minimise the delay? The ATO is generally more receptive to requests that show an otherwise compliant taxpayer facing a genuine, temporary disruption than to requests that read as an explanation for an ongoing pattern of late payment.

Step by step: preparing a remission request with your accountant

A general outline — not a guaranteed template — to adapt with your accountant before submitting anything to the ATO.

• Identify the exact account, liability type and period the interest relates to.
• Set out the relevant dates in order: when the liability arose, when the disruption occurred, when you contacted the ATO.
• Attach supporting evidence where available — correspondence, medical certificates, insurance claims or similar.
• State clearly what you are asking for: remission of GIC for a specified period or amount, not a vague request for "help".
• Keep a copy of everything submitted and any ATO reference number for the request.

A hypothetical scenario (illustrative only)

This is a hypothetical example to show how a request might be framed — it is not a real case and should not be copied as-is. Imagine a business whose only large customer went into administration, disrupting cash flow for several months, during which BAS obligations were lodged on time but paid late. The owner contacted the ATO as soon as the disruption became clear, entered a payment plan, and then wrote to request remission of the GIC that accrued specifically during the disrupted period, attaching the administrator’s correspondence as evidence.

Whether a request like this would succeed depends entirely on the ATO’s assessment of the actual facts, evidence and account history — this scenario illustrates structure only, not an outcome you should expect.

What a remission request cannot do

A remission request does not stop GIC from accruing while it is being considered, and it does not guarantee any particular outcome, including a partial reduction. It also does not affect the underlying debt — if remission is granted, you still owe the original tax, GST or super amount, just without some or all of the associated interest.

If cash flow is the real underlying issue rather than a one-off event, remission alone will not solve it — you may also need a payment arrangement, a cash-flow forecast reviewed with your accountant, or external finance to actually clear the balance.

Common mistakes when requesting remission

A common mistake is submitting a request that describes financial hardship generally without connecting it to specific dates and a specific period of interest. The ATO needs to be able to match your explanation to the actual days the interest accrued.

Another mistake is treating a submitted request as if it has already been approved — continuing to assume the balance will shrink and under-budgeting repayments while a decision is pending. A third is reusing a generic internet template word-for-word; a request that reads as copied, rather than specific to your circumstances, is unlikely to be persuasive.

Questions owners ask

How long does a remission request take to decide? Timeframes vary and are set by the ATO, not by this website — ask the ATO directly for an expected timeframe once you have lodged your request.

Can I request remission for penalties as well as interest? Penalties and interest are generally considered under different provisions, though both can potentially be subject to remission — ask your accountant to confirm what is being requested and under which process.

What if my request is refused? You can generally ask the ATO about its review and objection processes for a decision you disagree with — your accountant or a registered tax agent can advise on the options available.

Should I pay the debt while waiting for a decision on remission? In most cases continuing to pay down the underlying debt is sensible regardless of the remission outcome, since interest keeps accruing on any unpaid balance in the meantime.

What to keep on file after submitting a remission request

Once a request has been lodged, keeping organised records helps if the ATO asks follow-up questions, if you need to escalate, or if you want to refer back to what was submitted.

• A copy of the exact request submitted, including the date and method of lodgement.
• Any ATO reference or case number issued in response.
• Copies of all supporting evidence attached, in case originals are needed again.
• A note of who you spoke to and when, for any follow-up phone contact.
• The outcome in writing once a decision is made, including the reasons given.

Working with your accountant on the request

A registered tax agent or accountant can often frame a remission request more effectively than a self-prepared letter, partly because they understand how the ATO assesses these requests and partly because they can access your lodgement and payment history directly to check it supports the story you are telling. They can also help you avoid common drafting mistakes, such as asking for remission in vague terms rather than specifying the exact period and amount.

If your accountant is not confident handling ATO correspondence of this kind, ask for a referral to someone who deals with it regularly — a well-prepared request is generally worth the extra time it takes to get right.

Industry context can strengthen a request

Where the disruption you are describing is also a recognised feature of your industry — for example, a documented regional event affecting tourism-dependent businesses, or a well-publicised supply chain disruption affecting a particular sector — it can help to reference that context alongside your own specific evidence. This does not replace the need for your own dated, specific evidence, but it can help the ATO understand the request is not an isolated or unusual claim.

If remission is not enough on its own

Remission only ever addresses the interest component, so if the underlying debt is still larger than the business can comfortably pay down through ordinary trading, you may need to look at a payment plan or external finance alongside, or instead of, a remission request. Compare the real cost of any finance option against the GIC rate using full, written figures from both the ATO and the lender before deciding.

Describe the circumstances with a clear timeline

Record when the difficulty began, what changed and how it affected payment. Illness, interrupted trading, a major customer failure or another event may need different supporting evidence. Provide accurate details and avoid presenting a generic hardship story as your own. Your accountant can help connect the events to the relevant liabilities and periods.

Separate a temporary interruption from an ongoing shortfall. Identify essential costs, current income and what payment capacity realistically exists. A repayment proposal based on hoped-for sales can worsen distress if those sales do not arrive. Ask what assistance is available for your taxpayer type and debt rather than assuming every form of relief applies to a company.

Do not confuse remission with release of the principal

Interest remission concerns a charge on the debt; it does not necessarily reduce the underlying tax liability. Hardship release operates under separate legal rules. A decision not to pursue a debt is not necessarily the same as extinguishing it. Confirm precisely what is being requested, what remains payable and the effect of any decision.

Keep dealing with the payment position while a request is considered. Neither a request for relief nor a pending lending application should be assumed to stop recovery action. If a legal notice has arrived, have a lawyer confirm the deadline independently from any discussions about assistance.

Choose support that fits the underlying problem

A viable business with a short-term funding gap faces a different decision from a company unable to pay debts as they fall due. Formal restructuring involves legal eligibility and a registered practitioner; refinancing involves a new loan contract. One cannot be substituted for the other simply because the monthly payment looks more manageable.

Ask your accountant and appropriately qualified advisers to explain the options and consequences. ASBFEO’s debt support resources include pathways to independent help. If financial pressure is affecting your wellbeing, seek personal support as well as financial guidance. You do not need to sign a loan contract to begin asking for assistance.