General Interest Charge Rates

 

The general interest charge (GIC) is a uniform interest charge imposed where there is a late payment of a tax debt.

It replaced the late payment penalties system from 1 July 1999 and is a common rate of interest which is applied across all liabilities administered by the Tax Office, including:

  • self-assessed liabilities (such as that arising from an activity statement or tax return)
  • a Tax Office notified notional amount (such as a tax instalment amount provided by the ATO), or
  • a penalty not paid by the due date.

 

The GIC rate is updated quarterly and worked out using a statutory formula. It generally reflects the interest rate charged by financial institutions on unsecured loans.

Where an amount is left unpaid, GIC begins to accrue from the due date until the amount is paid in full.

GIC rates for the next quarter are typically announced two weeks before the start of that quarter.

 

Quarter GIC annual rate GIC daily rate
April – June 2011 11.92% 0.03265753%
January- March 2011 12.02% 0.03293151%
October – December 2010 11.74% 0.03216438%
July – September 2010 11.80% 0.03232877%
April – June 2010 11.16% 0.03057534%
January – March 2010 10.95% 0.03%
October – December 2009 10.30% 0.02821918%
July – September 2009 10.13% 0.02775342%
April – June 2009 10.16% 0.02783562%
January – March 2009 11.76% 0.03221918%
October – December 2008 14.31% 0.03909836%
July – September 2008 14.75% 0.04030054%
April – June 2008 14.69% 0.04013661%
January – March 2008 14.15% 0.03866120%
October – December 2007 13.75% 0.03767123%
July – September 2007 13.37% 0.03663014%
April – June 2007 13.37% 0.03663014%
January – March 2007 13.37% 0.03663014%
October – December 2006 13.19% 0.03613699%
July – September 2006 12.87% 0.03526027%
April – June 2006 12.61% 0.03454794%
January – March 2006 12.63% 0.03460274%
October – December 2005 12.62% 0.03457534%
July – September 2005 12.68% 0.03473973%
April – June 2005 12.63% 0.03460274%
**January – March 2005 12.43% 0.03405479%
October – December 2004 12.44% 0.03398907%
July – September 2004 12.51% 0.03418033%
April – June 2004 12.57% 0.03434426%
January – March 2004 12.31% 0.03363388%
October – December 2003 11.82% 0.03238357%
July – September 2003 11.78% 0.03227397%
April – June 2003 11.75% 0.03219178%
January – March 2003 11.84% 0.03243835%
October – December 2002 11.96% 0.03276712%
July – September 2002 11.84% 0.03243835%
April – June 2002 11.31% 0.0309863%
January – March 2002 11.28% 0.03090411%
October – December 2001 11.95% 0.03273973%
July – September 2001 11.89% 0.03257534%
April – June 2001 13.86% 0.0379726%
January – March 2001 13.86% 0.0379726%
October – December 2000 13.86% 0.03786885%
July – September 2000 14.00% 0.03825137%
April – June 2000 13.65% 0.03729508%
January – March 2000 13.08% 0.0357377%
October – December 1999 12.73% 0.03487671%
July – September 1999 12.72% 0.03484931%

**Although the GIC rate for January – March quarter has slightly decreased, the daily compounding rate has increased. The reason is that 2004 was a leap year and the daily rate for each quarter in 2004 was calculated by dividing by 366 instead of the usual 365.

This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.