Under the Taxation Administration Act 1997, interest is charged at the market rate plus the premium rate of 8% per annum for underpayment, late payment or non-payment of tax. If the Commissioner considers it 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.
From 1 July 2023 to 30 June 2024, the rate of interest is 11.90%, which is the premium rate of 8% added to the market rate of 3.90% per annum.
Penalty tax rates
|Penalty category||Prime rate (%)||Voluntary disclosure before investigation (%)||Voluntary disclosure during investigation (%)||Concealment or hindrance in establishing
|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
|Period||Market rate of interest (%)|
|1 July 2023 - 30 June 2024||3.90|
|1 July 2022 - 30 June 2023||1.00|
|1 July 2021 - 30 June 2022||0.04|
|1 July 2020 - 30 June 2021||0.10|
|1 July 2019 - 30 June 2020||1.54|
|1 July 2018 - 30 June 2019||1.96|