On 1 July 1999, the penalty arrangements for late payment and other obligations were rationalised and simplified pursuant to Taxation Laws Amendment Act (No 3) 1999.
This was done by the introduction of a uniform tax deductible general interest charge (GIC). The GIC replaced a complex system of interest and punitive culpability penalties imposed following late payment of outstanding amounts due to the Tax Office.
The GIC is updated quarterly with rates for the next quarter generally announced two weeks before the start of that quarter.
The GIC rate announced for March 2010 quarter is 10.95%.
Previous rates can be obtained here ==> previous qtr GIC rates
(Source ATO)
Subscribe to:
Post Comments (Atom)
comments
4 Responses to "ATO Interest Rate Now 10.95%"Why the interest rate is much higher than the official interest rate, and even higher that the bank loans rates?
If someone accumulated a debt and is unable to pay, ATO will charge, this large interest rate, on the debt and the following years will charge interset on debt and interset on the interset already charged. This is just immoral, government should not be doing this?
I am unfortunatelly in this position. My debt has grown by $60K, just interest on interest.
Given the ATO is not taking security, 10.95% is cheap! You wont get an unsecured loan for $ 60 K, which is effectively what a tax debt is, through a bank!
Does anyone know the interest rate the ATO pays out when they owe you money on tax from previous years?
The current interest rate the ATO pays is 4.16% (as at 30 June 2010).
Post a Comment
Thanks for using my TAX BLOG. Depending on our current work load there may be a delay in responding to questions.
Topical questions will be added to our Facebook and Twitter accounts - check it out and like!
Kind regards