Under the TAA, interest will be charged for underpayment, late payment or a failure to pay tax at the market rate plus the premium rate at 8% per annum. Under circumstances that the Commissioner considers appropriate, he has the power to partly or fully remit interest.

For more information on the factors that the Commissioner would take into account in exercising his power to remit interest, please refer to our Revenue Ruling TAA.007v3.

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

Current rates

From 1 July 2015 to 30 June 2016, the market rate is 2.15% per annum. 

From 1 July 2016 to 30 June 2017, the market rate is 2.01% per annum. 

The interest for underpayment, late payment or a failure to pay from 1 July 2016 to 30 June 2017 is 10.01% per annum (i.e. market rate of 2.01% plus the premium rate of 8.0%).

Penalty tax rates

More information on how penalty tax rates apply can be found in our taxation administration information or our Revenue Ruling TAA.007v2.

 

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 under payment %
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

 

Table of historical market rates of interest

Period Market rate of interest ( per annum)
1 July 15 - 30 June 16 2.15%
1 July 14 - 30 June 15 2.69%
1 July 13 - 30 June 14 2.82%
1 July 12 - 30 June 13 3.66%
1 July 11 - 30 June 12 5.00%
1 July 10 - 30 June 11 4.80%
1 July 09 - 30 June 10 3.13%
1 July 08 - 30 June 09 7.75%
1 July 07 - 30 June 08 6.37%
1 July 06 - 30 June 07 5.88%
1 July 05 - 30 June 06 5.68%
1 July 04 - 30 June 05 5.51%
1 July 03 - 30 June 04 4.78%
1 July 02 - 30 June 03 4.84%
1 July 01 - 30 June 02 4.96%
1 July 00 - 30 June 01 5.95%
1 July 99 - 30 June 00 4.72%
1 January 98 - 30 June 99 8.8%
1 July 97 - 31 December 97 9.8%