Interest rates
Status: Replaced on 1 July 2014 by Information Circular 70
Legislation: Taxation Administration Act 1996
Date Issued: 27 June 2013
Information Circulars do not have the force of law.
Sections 26, 90 and 99 of the Taxation Administration Act 1996 (the “Act”) provide for the interest rates to be applied in cases of tax defaults or refunds following the determination of a taxpayer’s objection or appeal against an assessment or decision by the Minister or the Commissioner of State Taxation.
The interest rate comprises a “market rate” and, in respect of defaults, an additional 8.00% per annum. Pursuant to Section 26(2) of the Act, the “market rate”, in relation to interest accruing at any time during a particular financial year, is the average rate of the 90-day Bank Accepted Bill Rate prescribed by the Reserve Bank of Australia for the month of May preceding the financial year, unless a Ministerial order setting the rate is in force.
By Notice published in the Gazette on 25 June 2009, the Treasurer revoked the previous Ministerial order determining the market rate for the purposes of Section 26 of the Act.
Effective from 1 July 2013, the interest rate in respect of tax defaults will be 10.82% per annum (comprising the market rate of 2.82% and 8.00%). The interest rate in respect of refunds for successful taxpayer objections and appeals will be 2.82% 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 July 2013 onwards | 2.82% | 10.82% |
| 1 July 2012 to 30 June 2013 | 3.66% | 11.66% |
| 1 July 2011 to 30 June 2012 | 5.00% | 13.00% |
| 1 July 2010 to 30 June 2011 | 4.80% | 12.80% |
| 1 July 2009 to 30 June 2010 | 3.13% | 11.13% |
| 1 July 2008 to 30 June 2009 | 7.75% | 15.75% |
| 1 July 2007 to 30 June 2008 | 6.37% | 14.37% |
| 1 July 2006 to 30 June 2007 | 5.87% | 13.87% |
| 7 July 2005 to 30 June 2006 | 5.68% | 13.68% |
| 8 July 2004 to 6 July 2005 | 5.51% | 13.51% |
| 1 July 2001 to 7 July 2004 | 4.89% | 12.89% |
| 1 July 2000 to 30 June 2001 | 5.95% | 13.95% |
| 1 July 1999 to 30 June 2000 | 4.80% | 12.80% |
| 1 January 1999 to 30 June 1999 | 8.80% | 16.80% |
| 1 July 1998 to 31 December 1998 | 8.80% | 16.80% |
| 1 January 1998 to 30 June 1998 | 8.80% | 16.80% |
| 1 July 1997 to 31 December 1997 | 9.80% | 17.80% |
| 1 January 1997 to 30 June 1997 | 10.50% | 18.50% |
View this Information Circular as a PDF (PDF 242KB)