Taxation Administration
Circular No. 293
(Replaces Circular No 281)
TAXATION ADMINISTRATION ACT 1996
CHANGE OF INTEREST RATE - FROM 1 JULY 2008
Section 26 of the Taxation Administration Act 1996 (the “Act”) provides for the interest rate to be applied in cases of a tax default or refund following a taxpayer’s successful objection or appeal against an assessment by the Commissioner.
The interest rate comprises a “Market Rate” and, in respect of defaults, an additional 8.00% per annum. Section 26(2)(b) of the Act further provides that the Market Rate may be specified from time to time by order of the Minister published in the South Australian Government Gazette (the “Gazette”).
The relevant Minister, the Treasurer, has specified by way of notice in the Gazette dated 26 June 2008, a Market Rate of 7.75%.
Therefore, from 1 July 2008 the interest rate in respect of tax defaults will be 15.75% per annum (comprising the Market Rate of 7.75% and 8.00%). The interest rate in respect of successful taxpayer objections and appeals will be 7.75% per annum.
The following interest rate table shows the effective interest rate for refunds and tax defaults since the commencement of the Act.
Period |
Refunds |
Defaults |
1 January 1997 to 30 June 1997 |
10.50% |
18.50% |
1 July 1997 to 31 December 1997 |
9.80% |
17.80% |
1 January 1998 to 30 June 1998 |
8.80% |
16.80% |
1 July 1998 to 31 December 1998 |
8.80% |
16.80% |
1 January 1999 to 30 June 1999 |
8.80% |
16.80% |
1 July 1999 to 30 June 2000 |
4.80% |
12.80% |
1 July 2000 to 30 June 2001 |
5.95% |
13.95% |
1 July 2001 to 7 July 2004 |
4.89% |
12.89% |
8 July 2004 to 6 July 2005 |
5.51% |
13.51% |
7 July 2005 to 30 June 2006 |
5.68% |
13.68% |
1 July 2006 to 30 June 2007 |
5.87% |
13.87% |
1 July 2007 to 30 June 2008 |
6.37% |
14.37% |
1 July 2008 onwards |
7.75% |
15.75% |
FURTHER INFORMATION
Further information regarding this change can be obtained from RevenueSA.
Location
RevenueSA
State Administration Centre
200 Victoria Square East
ADELAIDE SA 5000
Telephone
(08) 8226 3750
Website
Postal
Commissioner of State Taxation
RevenueSA
GPO Box 1353
ADELAIDE SA 5001
Facsimile
(08) 8226 3737
30/6/2008
COMMISSIONER OF STATE TAXATION
