Use-of-money interest rates to rise
2005 Order in Council changes the use-of-money interest rates to 13.08% for underpayments, and 5.71% for overpayments of tax and duties.
The use-of-money interest rates on underpayments and overpayments of tax and duties are to increase in line with current market interest rates. The new rates are:
- Underpayment rate: 13.08% (up from 11.93%)
- Overpayment rate: 5.71% (up from 4.83%)
The new rates apply from 8 March 2005, the starting date for interest relating to the third instalment of provisional tax for standard balance date taxpayers. The rates are reviewed regularly to ensure that they are in line with market rates. The new rates are consistent with the base lending rate and the 90-day bill rate.
The rates were changed by Order in Council on 31 January 2005.
Taxation (Use of Money Interest Rates) Amendment Regulation 2005 (2005/8).