Interest is imposed to encourage taxpayers to pay their liaibility by the due date. Interest is split into two components:
1. The market rate – to compensate the State Government for not having the use of the funds as at the due date for payment of the tax.
2. The premium rate – to deter taxpayers from using the SRO as a financier for unpaid tax liabilities and to promote equity by ensuring that taxpayers who meet their obligations are not disadvantaged compared to those who do not.
The market rate of interest is based on the 90-day Bank Accepted Bill Rate published by the Reserve Bank of Australia for the month of May in the financial year preceeding the start of each new financial year (Section 35(1)(a) of the Taxation Administration Act 1997 ).
The premium rate of interest is set in at 8 per cent (Section 35(1)(b) of the Taxation Administration Act 1997 ).
The interest rates applicable for 1 July 2012 to 30 June 2013 are 3.66 per cent (market rate) and 8 per cent (premium rate).
Refer to Revenue Ruling PUB-GEN-2011-1 Interest & Penalty Tax for a more detailed explanation of why the State Revenue Office imposes interest and the circumstances when interest may be imposed or remitted.
The current and previous rates of interest are:
|Period||Market rate of interest||Premium rate of interest||Total Rate of Interest|
|1 July 2012 - 30 June 2013||3.66%||8%||11.66%|
|1 July 2011 – 30 June 2012||5.00%||8%||13.00%|
|1 July 2010 - 30 June 2011||4.80%||8%||12.80%|
|1 December 2009 - 30 June 2010||3.13%||8%||11.13%|
|1 July 2008 - 30 November 2009||4.80%||8%||12.80%|
|1 July 1998 – 30 June 2008||4.80%||8%||12.80%|
For previous years, please contact the SRO.