{"id":"F2006B01390","name":"Superannuation (Productivity Benefit) (Penalty Interest) Determination 1995","slug":"superannuation-productivity-benefit-penalty-interest-determination-1995","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"177 of 1995","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":40892,"registerId":"commonwealth-F2006B01390-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Superannuation (Productivity Benefit) (Penalty Interest) Determination 1995","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: Superannuation (Productivity Benefit) (Penalty Interest) Determination 1995\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms](image.001.png)\n\nSuperannuation (Productivity Benefit) (Penalty Interest) Determination 1995\n\nas amended\n\nmade under section 4G of the\n\nSuperannuation (Productivity Benefit) Act 1988\n\nCompilation start date:  1 July 2013\n\nIncludes amendments up to: Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination 2013 (No. 1)\n\nAbout this compilation\n\nThe compiled instrument\n\nThis is a compilation of the Superannuation (Productivity Benefit) (Penalty Interest) Determination 1995 as amended and in force on 1 July 2013. It includes any amendment affecting the compiled instrument to that date.\n\nThis compilation was prepared on 1 July 2013.\n\nThe notes at the end of this compilation (the endnotes) include information about amending Acts and instruments and the amendment history of each amended provision.\n\nUncommenced provisions and amendments\n\nIf a provision of the compiled instrument is affected by an uncommenced amendment, the text of the uncommenced amendment is set out in the endnotes.\n\nApplication, saving and transitional provisions for amendments\n\nIf the operation of an amendment is affected by an application, saving or transitional provision, the provision is identified in the endnotes.\n\nModifications\n\nIf a provision of the compiled instrument is affected by a textual modification that is in force, the text of the modifying provision is set out in the endnotes.\n\nProvisions ceasing to have effect\n\nIf a provision of the compiled instrument has expired or otherwise ceased to have effect in accordance with a provision of the instrument, details of the provision are set out in the endnotes.\n\n \n\n \n\n \n\nContents\n\n1 Name of determination\n\n2 Interpretation\n\n3 How to calculate interest—subsections 4G(1) and (2) of the Act\n\n4 Revocation\n\nSchedule—Annual interest rates\n\nEndnotes\n\nEndnote 1—Legislation history\n\nEndnote 2—Amendment history\n\nEndnote 3—Uncommenced amendments [none]\n\nEndnote 4—Misdescribed amendments [none]\n\n \n\n \n\n \n\n1  Name of determination\n\n  This determination is the Superannuation (Productivity Benefit) (Penalty Interest) Determination 1995.\n\n2  Interpretation\n\n  In this Determination:\n\nAct means the Superannuation (Productivity Benefit) Act 1988.\n\n3  How to calculate interest—subsections 4G(1) and (2) of the Act\n\n  For the purposes of subsections 4G(1) and (2) of the Act, the interest fixed under each of those subsections in relation to a fund on a day is to be calculated by dividing by 365 the annual interest rate specified in the Schedule in relation to the financial year in which that day falls.\n\n4  Revocation\n\n  Superannuation (Productivity Benefit) Penalty Interest Determination No. 2 is revoked.\n\nSchedule—Annual interest rates\n\n(clause 3)\n\n \n\n \n\n| Financial Year | Rate |\n| --- | --- |\n| 1990–91 | 15.55% |\n| 1991–92 | 13.00% |\n| 1992–93 | 11.45% |\n| 1993–94 | 9.55% |\n| 1994–95 | 10.45% |\n| 1995–96 | 11.70% |\n| 1996–97 | 10.70% |\n| 1997–98 | 9.83% |\n| 1998–99 | 7.89% |\n| 1999–2000 | 7.51% |\n| 2000–2001 | 8.39% |\n| 2001–2002 | 7.78% |\n| 2001–2002 | 7.78% |\n| 2002–2003 | 8.10% |\n| 2003–2004 | 7.28% |\n| 2004–2005 | 7.94% |\n| 2005–2006 | 7.35% |\n| 2006–2007 | 7.71% |\n| 2007–2008 | 7.88% |\n| 2008–2009 | 8.29% |\n| 2009–2010 | 6.57% |\n| 2010–2011 | 7.71% |\n| 2011–2012 | 7.40% |\n| 2012–2013 | 5.67% |\n| Financial years beginning on or after 1 July 2013 | Estimated closing yield last published by the Reserve Bank of Australia before 1 June in the financial year immediately preceding the relevant financial year in respect of 10-year non-rebate Treasury Bonds, plus 2 per cent. |\n\n\nNote: The annual interest rates specified in this Schedule for financial years beginning before 1 July 2013 were intended to represent the interest rate that was the estimated closing yield last published by the Reserve Bank of Australia before 1 June in the year immediately preceding the relevant financial year in respect of 10‑year non‑rebate Treasury Bonds, plus 2%.\n\n \n\nEndnotes\n\n \n\nEndnote 1—Legislation history\n\nThis endnote sets out details of the legislation history of the Superannuation (Productivity Benefit) (Penalty Interest) Determination 1995.\n\n \n\n| Year and Number/Title | Gazettal or FRLI registration date | Commencement  date | Application, saving and transitional provisions |\n| --- | --- | --- | --- |\n| 1995 No. 177 | 30 June 1995 | 30 June 1995 |  |\n| 1996 No. 119 | 28 June 1996 | 28 June 1996 | — |\n| 1997 No. 147 | 25 June 1997 | 25 June 1997 | — |\n| 1998 No. 201 | 29 June 1998 | 29 June 1998 | — |\n| 1999 No. 138 | 30 June 1999 | 30 June 1999 | — |\n| 2000 No. 169 | 28 June 2000 | 28 June 2000 | — |\n| 2001 No. 169 | 29 June 2001 | 29 June 2001 | — |\n| 2002 No. 135 | 27 June 2002 | 27 June 2002 | — |\n| 2003 No. 177 | 30 June 2003 | 30 June 2003 | — |\n| 2004 No. 201 | 25 June 2004 | 25 June 2004 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination 2005 (No. 1) | 29 June 2005 (see F2005L01868) | 30 June 2005 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination 2006 (No. 1) | 28 June 2006 (see F2006L01991) | 29 June 2006 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination 2007 (No. 1) | 30 June 2007 (see F2007L01964) | 1 July 2007 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination 2008 (No. 1) | 24 June 2008 (see F2008L02209) | 1 July 2008 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination 2009 (No. 1) | 29 June 2009 (see (F2009L02549) | 1 July 2009 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination   2010 (No. 1) | 24 June 2010 (see F2010L01694) | 1 July 2010 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination   2011 (No. 1) | 28 June 2011 (see F2011L01288) | 1 July 2011 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination 2012 (No. 1) | 19 June 2012 (see F2012L01252) | 1 July 2012 | — |\n| Superannuation (Productivity Benefit) (Penalty Interest) Amendment Determination 2013 (No. 1) | 22 May 2013 (see F2013L00823) | 1 July 2013 | — |\n\n\n \n\nEndnote 2—Amendment history\n\nThis endnote sets out the amendment history of the Superannuation (Productivity Benefit) (Penalty Interest) Determination 1995.\n\n \n\n- ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted exp. = expired or ceased to have effect\n- Provision affected How affected\n- c. 1..................... rs. 1999 No. 138\n- Schedule\n- Schedule................. am. 1996 No. 119; 1997 No. 147; 1998 No. 201; 1999 No. 138; 2000 No. 169; 2001 No. 169; 2002 No. 135; 2003 No. 177; 2004 No. 201; 2005 No. 1; 2006 No. 1; 2007 No. 1; 2008 No. 1; 2009 No. 1; 2010 No. 1; 2011 No. 1; 2012 No. 1; 2013 No. 1\n- Note to Schedule 1.......... rs. 2013 No. 1\n\n\n \n\n \n\nEndnote 3—Uncommenced amendments [none]\n\nThere are no uncommenced amendments.\n\n \n\n \n\nEndnote 4—Misdescribed amendments [none]\n\nThere are no misdescribed amendments.\n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: setting penalty interest rates for late productivity benefit superannuation contributions. The 2013 amendment introduced a formula-based mechanism to avoid annual updates, but this was an administrative efficiency measure rather than an expansion of scope. The Determination has not grown beyond its original intent."},"complexity_factors":["Only 4 operative clauses (sections 1–4 plus Schedule)","Single defined term ('Act') in interpretation section","Straightforward mathematical formula: annual rate ÷ 365 = daily rate","No nested exceptions, conditional logic, or cross-references to other legislation beyond the parent Act","Schedule consists of a simple lookup table for historical rates plus one formula for future years","No operative subsections, paragraphs, or complex numbering structures"],"plain_english_summary":"This Determination fixes the penalty interest employers must pay when they are late making productivity-benefit superannuation contributions. It lists fixed annual rates for 1990–91 to 2012–13, and from 1 July 2013 the rate is the RBA 10‑year Treasury bond yield (just before 1 June) plus 2%, converted to a daily rate by dividing by 365.\n\nIt affects employers who pay late, the employees owed the contributions, and the receiving super funds, ensuring late payments are compensated and the penalty tracks market rates."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The instrument has evolved from merely listing fixed annual penalty interest percentages for specific financial years to including a forward‑looking, formulaic method for setting the rate for financial years beginning on or after 1 July 2013 (Schedule). That change shifts the Determination from a static historical schedule to a continuing mechanism tied to an external market benchmark (RBA estimated closing yield for 10‑year Treasury Bonds plus 2%).\n\nIn practical terms this expands the Determination’s operational scope: it no longer requires repeated fixed‑rate amendments each year (the formula produces the rate automatically given the RBA figure), and it creates an ongoing administrative dependence on a specific RBA published figure. The amendments recorded in the instrument’s history also show repeated annual updates to the Schedule before the formulaic rule was adopted, indicating that the instrument’s coverage and maintenance pathway have changed over time (Endnote 1; Schedule)."},"complexity_factors":["Very short instrument (4 clauses plus Schedule).","Only one defined term in interpretation (Act).","Direct cross-reference to subsections 4G(1) and 4G(2) of the Superannuation (Productivity Benefit) Act 1988 (clause 3).","Schedule contains many historic entries (about 24 financial‑year rows) plus a formulaic rule for years from 1 July 2013.","Calculation rule is a single arithmetic step (annual rate ÷ 365) but creates a minor conditional (division by 365 regardless of leap year) (clause 3).","Post‑2013 rate references an external, date‑specific RBA publication (administrative dependency and potential for source‑identification disputes).","Minor textual quirk: Schedule repeats 2001–2002 entry (possible typographical duplication)."],"plain_english_summary":"**What this instrument does (mechanically)**\n\n- The Determination fixes the penalty interest rates that are to be used under subsections 4G(1) and 4G(2) of the Superannuation (Productivity Benefit) Act 1988. In short, it tells affected parties what interest rate to apply when the Act requires penalty interest to be calculated (clause 3; Schedule).\n\n- For any particular day, the daily interest amount is calculated by taking the annual rate shown for the financial year in the Schedule and dividing it by 365 (clause 3). The instrument therefore prescribes a daily rate by simple division by 365.\n\n- The Schedule lists historic annual rates for financial years from 1990–91 through 2012–13 as fixed percentages. For financial years beginning on or after 1 July 2013, the rate is set by formula: the estimated closing yield for 10‑year non‑rebate Australian Treasury Bonds last published by the Reserve Bank of Australia (RBA) before 1 June in the previous financial year, plus 2 percentage points (Schedule).\n\n- The Determination also revokes a prior penalty-interest determination (clause 4).\n\n**Who this affects**\n\n- Superannuation funds and any person or entity required by subsections 4G(1) or 4G(2) of the Superannuation (Productivity Benefit) Act 1988 to calculate, charge or pay penalty interest. (The Determination does not itself create the obligation — it supplies the interest rates to be used where those subsections apply.) (clause 3; clause 2 definition of Act.)\n\n**Why it matters (the official rationale and the practical effects)**\n\n- Officially, the Schedule’s rates (and the post‑2013 formula) are intended to reflect a market benchmark: the RBA’s estimated closing yield for 10‑year non‑rebate Treasury Bonds plus 2 percentage points (note to Schedule; Schedule). That links the penalty interest to prevailing long‑term government bond yields, making the interest responsive to market conditions rather than arbitrary.\n\n- Practical implications and trade‑offs:\n  - Who pays: where the Act requires penalty interest to be charged, the party liable under the Act (for example, a fund or an employer depending on the underlying statutory obligation) bears the interest cost. The Determination increases or fixes that monetary liability by specifying the rate (clause 3; Schedule).\n  - Who decides: the instrument itself fixes the rate and the formula. For years from 1 July 2013 onwards the RBA’s published yield (as of the specified cut‑off date) determines the annual rate plus 2 percentage points (Schedule).\n  - Behavioural effect: a stated monetary cost for late or non‑compliance (an interest rate) creates an incentive to meet the underlying statutory obligations on time; it also creates a quantifiable exposure for parties that remain non‑compliant.\n  - Administrative burden: applying the rate requires locating the correct annual rate (Schedule), dividing by 365 (clause 3), and, for post‑2013 years, identifying the RBA’s “estimated closing yield” published before 1 June in the prior year. That is a simple calculation but requires a reliable administrative process and a record of the RBA figure used.\n  - Implementation risks and quirks: the daily rate is computed by dividing by 365 irrespective of leap years (clause 3), which slightly changes interest accrual behaviour in leap years compared with a 366‑day divisor. The Schedule uses an RBA publication date (before 1 June), so late changes to RBA figures or uncertainty about which RBA publication to use could create disputes unless agencies document the source clearly.\n\n**Concentrated benefits, diffuse costs and potential for gaming**\n\n- Concentrated benefit: parties entitled to receive penalty interest (as established under the Act) obtain a clear, benchmarked return when interest is payable; the instrument concentrates that benefit on those specific claimants.\n\n- Diffuse cost: the cost of higher interest (if the formula yields higher rates than a simple statutory floor) falls on the obliged payers, which may be superannuation funds, employers, or other parties depending on the Act’s operation — these costs are spread across those groups and ultimately could affect beneficiaries or employers depending on who bears the burden.\n\n- Potential for strategic behaviour: linking the rate to a public market benchmark (RBA yield + 2%) reduces arbitrary adjustments by administrators but leaves open the possibility of dispute about which RBA publication or yield estimate is appropriate unless the source is documented (Schedule; note to Schedule).\n\n**Key mechanical references**\n- Definition of the Act used in the Determination: clause 2.\n- How to calculate daily interest: clause 3 (annual rate from Schedule ÷ 365).\n- Fixed historic rates and post‑2013 formula: Schedule and note to Schedule.\n- Revocation of prior determination: clause 4.\n\n**Other practical notes**\n- The Schedule contains historic fixed rates for 1990–91 through 2012–13 and then a formula for later years, so administrators must use the listed percentage for past years and the RBA‑based formula for recent/future years.\n- The instrument is narrowly focused: it does not change who has the legal obligation to pay interest — it only sets the rate to be used where the Act requires interest to be calculated (clause 3)."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-productivity-benefit-penalty-interest-determination-1995","history":"/api/acts/superannuation-productivity-benefit-penalty-interest-determination-1995/history","analysis":"/api/acts/superannuation-productivity-benefit-penalty-interest-determination-1995/analysis","conflicts":"/api/acts/superannuation-productivity-benefit-penalty-interest-determination-1995/conflicts","importantCases":"/api/acts/superannuation-productivity-benefit-penalty-interest-determination-1995/important-cases","documents":"/api/acts/superannuation-productivity-benefit-penalty-interest-determination-1995/documents"}}