Taxation Administration Act 1953

PART IIA - THE GENERAL INTEREST CHARGE  

SECTION 8AAD   WHAT IS THE GENERAL INTEREST CHARGE RATE ?  

8AAD(1)   [Working out the rate]  

The general interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.

8AAD(2)   [Working out the " base interest rate " ]  

The base interest rate for a day depends on which quarter of the year the day is in. For each day in a quarter in the second column of the table, it is the monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank of Australia for the month in the third column of the table.

Base interest rate
Item	For days in this quarter …	the monthly average yield of 90-day Bank Accepted Bills for this month applies …
1	1 January to 31 March	the preceding November
2	1 April to 30 June	the preceding February
3	1 July to 30 September	the preceding May
4	1 October to 31 December	the preceding August

8AAD(3)   [Monthly average yield]  

If the monthly average yield of 90-day Bank Accepted Bills for a particular month in the third column of the table in subsection (2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank of Australia before that month.

8AAD(4)   [Base interest rate rounded]  

The base interest rate must be rounded to the second decimal place (rounding .005 upwards).