You're entitled to interest on early payments (IEP) when you pay certain tax liabilities more than 14 days before the due date.
IEP is automatically identified, worked out and paid to your bank account – so you need to make sure your bank account details are up to date. You can check and update these details in Online services for business.
If your bank account details aren't up to date, you will only receive a cheque for IEP if the amount is over $9.99.
Lesser amounts will remain on your account for a maximum of 12 months provided the amount hasn't been offset against an existing tax debt or paid with another credit.
If your bank account is not up to date after 12 months, then the IEP credit will be issued by cheque.
If you update your bank account within those 12 months, the IEP credit will remain on your account and be paid to your bank account after the 12 months has passed. However, you can request payment of an IEP credit retained on your account through secure mail in Online services for business.
Remember, IEP is assessable income and needs to be included in your tax return in either:
- the income year you receive the interest, or
- the income year it's offset against the tax debt you had with us.