SMSF Association Submission – Deny deductions for the general interest charge and shortfall interest charge

The SMSF Association welcomes the opportunity to provide this submission to the consultation on Deny deductions for the general interest charge and shortfall interest charge.

The SMSF Association does not support denying deductions for the general interest charge and shortfall interest charge. We are concerned about the impact these proposed amendments will have and question the need for this measure.

The existing penalty regime is designed to deter late lodgements, reckless or intentional wrongdoing in respect of a taxpayer’s obligations. Noting that such penalties are not insignificant, and quite appropriately, are not tax deductible.