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Under the Taxation Administration Act 1997, interest is charged at the market rate plus the premium rate of 8 per cent per annum for underpayment, late payment or non-payment of tax. If the Commissioner considers appropriate, he has the power to partly or fully remit interest.

For more information on the factors the Commissioner takes into account in exercising his power to remit interest, refer to Revenue Ruling TAA-007v4.

The market rate of interest is adjusted annually on 1 July.

Current rates

From 1 July 2018 to 30 June 2019, the rate of interest is 9.96 per cent, which is the premium rate of 8 per cent added to the market rate of 1.96 per cent per annum

Penalty tax rates

More information on how penalty tax rates apply is available in our taxation administration information or in Revenue Ruling TAA-007v4.

 

Penalty tax rates as applied to different categories

Penalty category Prime rate (%) Voluntary disclosure before investigation (%) Voluntary disclosure during investigation (%) Concealment or hindrance in establishing
underpayment (%)
Failure to take reasonable care but no intentional disregard of the law 25 5 20 30
Intentional disregard of the law 75 15 60 90

 

Historical market rates

 

Historical market rates of interest from 1997 to today

Period Market rate of interest (%)
1 July 2018 - 30 June 2019 1.96
1 July 2017 - 30 June 2018 1.73
1 July 2016 - 30 June 2017 2.01
1 July 2015 - 30 June 2016 2.15
1 July 2014 - 30 June 2015 2.69
1 July 2013 - 30 June 2014 2.82
1 July 2012 - 30 June 2013 3.66
1 July 2011 - 30 June 2012 5.00
1 July 2010 - 30 June 2011 4.80
1 July 2009 - 30 June 2010 3.13
1 July 2008 - 30 June 2009 7.75
1 July 2007 - 30 June 2008 6.37
1 July 2006 - 30 June 2007 5.88
1 July 2005 - 30 June 2006 5.68
1 July 2004 - 30 June 2005 5.51
1 July 2003 - 30 June 2004 4.78
1 July 2002 - 30 June 2003 4.84
1 July 2001 - 30 June 2002 4.96
1 July 2000 - 30 June 2001 5.95
1 July 1999 - 30 June 2000 4.72
1 January 1998 - 30 June 1999 8.8
1 July 1997 - 31 December 1997 9.8