Issued
2015

Use-of-money interest rates change

2015 Order in Council sets the use-of-money interest rates on underpayments and overpayments of taxes and duties at 9.21% and 2.63% from 8 May 2015 onwards.

The use-of-money interest rates on underpayments and overpayments of taxes and duties have changed, in line with market interest rates. The new rates are:

  • underpayment rate: 9.21% (previously 8.40%)
  • overpayment rate: 2.63% (previously 1.75%).

The new rates will apply from 8 May 2015, the day after the due date for the third instalment of provisional tax paid by taxpayers with standard balance dates.

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 30 March 2015.

Taxation (Use of Money Interest Rates) Amendment Regulations 2015 (2015/63)