Use-of-money interest rates change
2010 Order in Council sets the use-of-money interest rates on underpayments and overpayments of taxes and duties at 8.89% and 2.18% from 16 Jan 2011 onwards.
The use-of-money interest rates on underpayments and overpayments of taxes and duties have been changed in line with current market interest rates. The new rates are:
- underpayment rate: 8.89% (previously 8.91%)
- overpayment rate: 2.18% (previously 1.82%).
The new rates apply from 16 January 2011, the starting date for interest applying to the second provisional tax instalment for standard balance date taxpayers.
The rates are reviewed regularly to ensure they are in line with market interest rates. The new rates are consistent with the Reserve Bank floating first mortgage new customer housing rate and the 90-day bank bill rate.
The rates were changed by Order in Council on 22 November 2010.
Taxation (Use of Money Interest Rates) Amendment Regulations 2010 (2010/433)