• Shortfall interest charge (SIC) rates

    On 29 June 2005, the shortfall interest charge (SIC) was introduced for amendments of 2004–05 and later years’ income tax assessments. The SIC replaces, at a lower rate, the general interest charge (GIC) applied to income tax shortfalls for the period before assessments are amended.

    GIC will continue to apply to tax shortfalls in amended assessments for the 2003–04 and earlier income years regardless of when those amendments are made. It will apply from the due date of the original assessment.

    GIC will also apply to the original assessment and to any tax shortfalls (amended assessments) and associated SIC from their due date if they are not paid by that date.

    Generally, the SIC applies from the due date for payment of the earlier, understated assessment until the day before we issue the notice of amended assessment. The amended assessment or tax shortfall and the related SIC are due 24 days after the amended assessment is issued.

    SIC is calculated on a daily compounding basis. The formula for calculating SIC is provided in section 280-105 of Schedule 1 to the Taxation Administration Act 1953. It uses a base interest rate and an uplift factor of 3%. The base interest rate is defined in tax legislation and is the 90-day Bank Accepted Bill rate published by the Reserve Bank.

    The SIC rate is updated quarterly with rates for the next quarter generally announced two weeks before the start of that quarter.

    2016–17 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2017

     

     

    January – March 2017

     

     

    October – December 2016

    4.76%

    0.01300546%

    July – September 2016

    5.01%

    0.01368852%

    2015–16 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2016

    5.28%

    0.01442623%

    January – March 2016

    5.22%

    0.01426229%

    October – December 2015

    5.14%

    0.01408219%

    July – September 2015

    5.15%

    0.01410959%

    2014–15 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2015

    5.36%

    0.01468493 

    January – March 2015

    5.75%

    0.01575342%

    October – December 2014

    5.63%

    0.01542466%

    July – September 2014

    5.69%

    0.01558904%

    2013–14 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2014

    5.63%

    0.01542466%

    January – March 2014

    5.59%

    0.01531507%

    October – December 2013

    5.6%

    0.01534246%

    July – September 2013

    5.82%

    0.01594520%

    2012–13 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2013

    5.95%

    0.01630137%

    January – March 2013

    6.24 %

    0.01709589%

    October – December 2012

    6.62 %

    0.01808743%

    July – September 2012

    6.66%

    0.01819672%

    2011–12 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2012

    7.37%

    0.02013661%

    January – March 2012

    7.62%

    0.02081967%

    October – December 2011

    7.86%

    0.02153425%

    July – September 2011

    8.00%

    0.02191781%

    2010–11 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2011

    7.92%

    0.02169863%

    January – March 2011

    8.02%

    0.02197260%

    October – December 2010

    7.74%

    0.02120548%

    July – September 2010

    7.8%

    0.02136986%

    2009–10 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2010

    7.16%

    0.01961644%

    January – March 2010

    6.95%

    0.01904110%

    October – December 2009

    6.30%

    0.01726027%

    July – September 2009

    6.13%

    0.01679452%

    2008–09 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2009

    6.16%

    0.01687671%

    January – March 2009

    7.76%

    0.02126027%

    October – December 2008

    10.31%

    0.02816939%

    July – September 2008

    10.75%

    0.02937158%

    2007–08 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2008

    10.69%

    0.02920765%

    January – March 2008

    10.15%

    0.02773224%

    October – December 2007

    9.75%

    0.02671233%

    July – September 2007

    9.37%

    0.02567123%

    2006–07 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2007

    9.37%

    0.02567123%

    January – March 2007

    9.37%

    0.02567123%

    October – December 2006

    9.19%

    0.02517808%

    July – September 2006

    8.87%

    0.02430137%

    2005–06 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2006

    8.61%

    0.02358904%

    January – March 2006

    8.63%

    0.02364383%

    October – December 2005

    8.62%

    0.02364383%

    July – September 2005

    8.68%

    0.02378082%

    2004–05 income year

    Quarter

    SIC annual rate

    SIC daily rate

    April – June 2005

    8.63%

    0.02364383%

    See also:

    ROSA in brief – shortfall interest charge (NAT 14920, PDF, 224KB).

    Last modified: 06 Sep 2016QC 18426