Rates of Interest

Interest is imposed to encourage taxpayers to pay their liability by the due date. Interest is split into two components:

  • 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.
  • 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 in the May preceding the start of each new financial year (Section 35(1)(a) of the Taxation Administration Act 1997).

The premium rate of interest is set at 8.00 per cent (Section 35(1)(b) of the Taxation Administration Act 1997).

The interest rates applicable for 1 July 2017 to 30 June 2018 are 1.73 per cent (market rate) and 8.00 per cent (premium rate).

Refer to Revenue Ruling PUB-GEN-2014-6 Interest & Penalty Tax for information about the circumstances when interest may be imposed or remitted.

The current and previous rates of interest are:

PeriodMarket rate of interestPremium rate of interestTotal Rate of Interest
1 July 2017 -
30 June 2018
1.73%8%9.73%
1 July 2016 -
30 June 2017
2.01%8%10.01%
1 July 2015 -
30 June 2016
2.15%8%10.15%
1 July 2014 -
30 June 2015
2.69%8%10.69%
1 July 2013 -
30 June 2014
2.82%8%10.82%
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
4.81%8%12.81%
1 December 2009 - 30 June 20103.13%8%11.13%
1 July 1998 -
30 November 2009
4.81%8%12.81%

 

For previous years, please contact the SRO.

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