{"id":"C2004A02729","name":"Taxation (Interest on Overpayments and Early Payments) Act 1983","slug":"taxation-interest-on-overpayments-and-early-payments-act-1983","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"12 of 1983","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":25867,"registerId":"commonwealth-C2004A02729-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part I","sectionType":"part","heading":"Preliminary","content":"## Part I—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Taxation (Interest on Overpayments and Early Payments) Act 1983.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n This Act shall be deemed to have come into operation on 14 February 1983.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n (1) In this Act, unless the contrary intention appears:\n\n> Commissioner means the Commissioner of Taxation.\n\n> compulsory AASL repayment amount has the same meaning as in the Australian Apprenticeship Support Loans Act 2014.\n\n> compulsory ABSTUDY SSL repayment amount has the same meaning as in the Student Assistance Act 1973.\n\n> compulsory repayment amount has the same meaning as in the Higher Education Support Act 2003.\n\n> compulsory SSL repayment amount has the same meaning as in Chapter 2AA of the Social Security Act 1991.\n\n> compulsory VETSL repayment amount has the same meaning as in the VET Student Loans Act 2016.\n\n> decision to which this Act applies means:\n\n (a) a decision of the Commissioner upon an objection; or\n (b) a decision of the Tribunal or the Administrative Appeals Tribunal in relation to an objection; or\n (c) a decision of a court in relation to:\n (i) an objection; or\n (ii) a decision of the kind referred to in paragraph (b); or\n (caa) a decision under Subdivision 263‑A (about foreign revenue claims) in Schedule 1 to the Taxation Administration Act 1953; or\n (cab) in a case where the expression is used in relation to relevant tax of a kind referred to in item 91 of the table in section 3C (Pay as you go withholding non‑compliance tax)—a decision of the Commissioner under section 18‑130 in Schedule 1 to the Taxation Administration Act 1953; or\n\nNote: Section 18‑130 in Schedule 1 to the Taxation Administration Act 1953 requires the Commissioner to give a notice to a director of a company if the Commissioner is satisfied of certain matters.\n\n (ca) in a case where the expression is used in relation to relevant tax of a kind referred to in items 5 to 50 of the table in section 3C—a decision of the Commissioner to amend an assessment made in relation to a taxpayer reducing the liability of the taxpayer to tax; or\n (caaa) in a case where the expression is used in relation to relevant tax of a kind referred to in item 60 of the table in section 3C—a decision of the Commissioner to give a notice under subsection 282‑18(4) of the Private Health Insurance Act 2007; or\n (cb) in a case where the expression is used in relation to fringe benefits tax imposed by the Fringe Benefits Tax Act 1986—a decision of the Commissioner to amend an assessment made in relation to an employer reducing the liability of the employer to tax, other than:\n (i) a decision to give effect to an application or request by or on behalf of the employer for an amendment of the assessment; or\n (ii) a decision made in consequence of another decision of the Commissioner to amend another assessment (whether of or by the employer or of another person), being another decision that was made to give effect to an application or request by or on behalf of the employer or the other person, as the case may be, for the amendment of the other assessment; or\n (d) in a case where the expression is used in relation to relevant tax of a kind referred to in item 120 of the table in section 3C—a decision of the Commissioner to amend an assessment made in relation to a person reducing the liability of the person to relevant tax or other tax, other than:\n (i) a decision to give effect to an application or request by or on behalf of the person for an amendment of the assessment; or\n (ii) a decision made in consequence of another decision of the Commissioner to amend another assessment (whether of the person or of another person), being another decision that was made to give effect to an application or request by or on behalf of the person or the other person, as the case may be, for the amendment of the other assessment.\n\n> Deputy Commissioner means a Deputy Commissioner of Taxation.\n\n> diverted profits tax has the same meaning as in the Income Tax Assessment Act 1997.\n\n> double tax agreement means an agreement within the meaning of the International Tax Agreements Act 1953.\n\n> FS assessment debt means an FS assessment debt under:\n\n (a) subsection 19AB(2) of the Social Security Act 1991; or\n (b) the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.\n\n> full self‑assessment taxpayer has the same meaning as in subsection 6(1) of the Tax Act.\n\n> income tax means:\n\n (a) income tax as defined in subsection 6(1) of the Tax Act; or\n (b) Medicare Levy payable in accordance with Part VIIB of the Tax Act.\n\n> income tax crediting amount, in relation to income tax payable by a person for a year of income, means:\n\n (a) any amount of a credit that does not arise under any of the following:\n (i) Division 770 of the Income Tax Assessment Act 1997;\n (ii) section 131‑65 in Schedule 1 to the Taxation Administration Act 1953;\n (iii) the International Tax Agreements Act 1953; or\n (b) any offset under former section 160AQK of the Tax Act; or\n (c) any tax offset that is subject to the refundable tax offset rules.\n\n> Note 1: Division 67 of the Income Tax Assessment Act 1997 lists the tax offsets that are subject to the refundable tax offset rules.\n\n> Note 2: For credits that arise under section 18‑170 or 18‑175 in Schedule 1 to the Taxation Administration Act 1953, see subsection (3) of this section.\n\n> late payment interest, in respect of an amount, means interest payable solely to compensate for the time value of the amount.\n\n> objection means a taxation objection within the meaning of Part IVC of the Taxation Administration Act 1953.\n\n> person includes:\n\n (a) a body politic; and\n (b) a body corporate; and\n (c) a partnership; and\n (d) any other unincorporated association or body of persons.\n\n> provide correlative relief has the meaning given by section 3A.\n\n> relevant tax has the meaning given by section 3C.\n\n> Second Commissioner means a Second Commissioner of Taxation.\n\n> Tax Act means the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.\n\n> Tribunal means the Administrative Review Tribunal.\n\n> year of income means year of income as defined in subsection 6(1) of the Tax Act.\n\n (2) A reference in this Act to a liability of a person to the Commonwealth is a reference to a liability of a person to the Commonwealth arising under, or by virtue of, an Act of which the Commissioner has the general administration.\n Credits under section 18‑170 or 18‑175 in Schedule 1 to the Taxation Administration Act 1953\n (3) To avoid doubt, for the purposes of this Act, a credit of an individual that arises under section 18‑170 or 18‑175 in Schedule 1 to the Taxation Administration Act 1953 relates to the income tax payable by the individual for the year of income in which the individual becomes entitled to the credit.\n\n> Note: Subdivision 18‑D in Schedule 1 to the Taxation Administration Act 1953 provides that a director, or an associate of a director, of a company that does not comply with its obligations under Part 2‑5 (Pay as you go (PAYG) withholding) must pay Pay as you go withholding non‑compliance tax in certain circumstances. Sections 18‑170 and 18‑175 entitle the director or associate to a credit if the company subsequently complies with its obligations.","sortOrder":3},{"sectionNumber":"3A","sectionType":"section","heading":"Provision of correlative relief","content":"#### 3A Provision of correlative relief\n\n (1) For the purposes of this Act, a decision to which this Act applies is made to provide correlative relief for juridical double taxation in respect of the taxing of an amount under a law of a foreign country if:\n (a) there is a double tax agreement applying to Australia and the foreign country; and\n (b) a provision of the double tax agreement has been prescribed, or the manner of operation of a provision of the double tax agreement has been prescribed, for the purposes of this paragraph; and\n (c) the decision is made, or the applying of the income tax crediting amount takes place, in giving effect, or in circumstances that would enable effect to be given, to the provision mentioned in paragraph (b), or to that provision in its operation in the prescribed manner, as a result of the taxing of the amount under the law of the foreign country.\n (1A) For the purposes of this Act, a decision to which this Act applies is made to provide correlative relief for economic double taxation if:\n (a) there is a double tax agreement applying to Australia and one of the following (a treaty partner):\n (i) a foreign country or a constituent part of a foreign country;\n (ii) an overseas territory; and\n (b) the treaty partner taxes profits, or purports to tax profits, in accordance with, or consistent with the principles of:\n (i) if the treaty partner is the United Kingdom—Article 9 of the United Kingdom convention (within the meaning of the International Tax Agreements Act 1953); or\n (ii) otherwise—a corresponding provision of another double tax agreement; and\n\nNote: Article 9 of the United Kingdom convention deals with profits of associated enterprises.\n\n (c) the decision is made in giving effect to subsection 24(3) of that Act.\n (2) For the purposes of this Act, a decision to which this Act applies is also made to provide correlative relief in respect of the taxing of an amount under a law of a foreign country (the primary foreign country) if:\n (a) there is no double tax agreement applying to Australia and the primary foreign country; and\n (b) a provision of a double tax agreement applying to Australia and a foreign country other than the primary foreign country has been prescribed, or the manner of operation of a provision of such an agreement has been prescribed, for the purposes of this paragraph; and\n (c) the decision is made in circumstances that would enable effect to be given to the provision mentioned in paragraph (b), or to that provision in its operation in the prescribed manner, as a result of the taxing of the amount under the law of the primary foreign country, if the double tax agreement had instead applied to Australia and the primary foreign country.","sortOrder":4},{"sectionNumber":"3B","sectionType":"section","heading":"Application of the Criminal Code","content":"#### 3B Application of the Criminal Code\n\n Chapter 2 of the Criminal Code applies to all offences against this Act.\n\n> Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.","sortOrder":5},{"sectionNumber":"3C","sectionType":"section","heading":"Meaning of relevant tax","content":"#### 3C Meaning of relevant tax\n\n In this Act:\n\n> relevant tax means any of these:\n\n```html\n

Relevant taxes

Item

Type of tax

5

Tax as defined in subsection 6(1) of the Tax Act

15

General interest charge under former section 170AA of the Income Tax Assessment Act 1936

20

Shortfall interest charge under Division 280 in Schedule 1 to the Taxation Administration Act 1953

25

Interest under section 102AAM of the Tax Act

30

Diverted profits tax

45

Amounts that are treated under Subdivision 154‑D of the Higher Education Support Act 2003 as if they were income tax

45A

Amounts that are treated under Division 6 of Part 3A of the VET Student Loans Act 2016 as if they were income tax

46

Amounts that are treated under Part 2AA.5 of the Social Security Act 1991 as if they were income tax

47

Amounts that are treated under Division 6 of Part 2 of the Student Assistance Act 1973 as if they were income tax

48

Amounts that are treated under Part 3.3 of the Australian Apprenticeship Support Loans Act 2014 as if they were income tax

50

Amounts that are treated under section 12ZN of the Student Assistance Act 1973 as if they were income tax

55

Withholding tax as defined in subsection 6(1) of the Tax Act

60

Liabilities under section 282‑18 of the Private Health Insurance Act 2007

80

An amount payable to the Commissioner under section 16‑80 in Schedule 1 to the Taxation Administration Act 1953

85

An amount payable to the Commissioner under subsection 222AJA(3) of the Tax Act

90

An amount payable to the Commissioner under Subdivision 16‑A (other than section 16‑50) in Schedule 1 to the Taxation Administration Act 1953

91

Pay as you go withholding non‑compliance tax

92

An amount payable to the Commissioner under Subdivision 263‑A (about foreign revenue claims) in Schedule 1 to the Taxation Administration Act 1953

95

Trust recoupment tax, applied penalty tax or penalty tax, as defined in subsection 3(1) of the Trust Recoupment Tax Assessment Act 1985

110

Tax, or additional tax, referred to in subsection 93(1) of the Fringe Benefits Tax Assessment Act 1986

120

Tax within the meaning of subsection 85(1) of the Petroleum Resource Rent Tax Assessment Act 1987

145

Indirect tax within the meaning of subsection 995‑1(1) of the Income Tax Assessment Act 1997

150

A penalty or charge payable under Subdivision 105‑D in Schedule 1 to the Taxation Administration Act 1953

155

GST assessed under the A New Tax System (Goods and Services Tax) Act 1999

\n```","sortOrder":6},{"sectionNumber":"Part II","sectionType":"part","heading":"Administration","content":"## Part II—Administration","sortOrder":7},{"sectionNumber":"4","sectionType":"section","heading":"General administration of Act","content":"#### 4 General administration of Act\n\n The Commissioner has the general administration of this Act.\n\n> Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Annual report","content":"#### 7 Annual report\n\n (1) The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act.\n (2) The Minister shall cause a copy of a report furnished to him or her under subsection (1) to be laid before each House of the Parliament within 15 sitting days of that House after the day on which he or she receives the report.\n (3) For the purposes of section 34C of the Acts Interpretation Act 1901, a report that is required by subsection (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.","sortOrder":9},{"sectionNumber":"Part IIA","sectionType":"part","heading":"Interest on early payments","content":"## Part IIA—Interest on early payments","sortOrder":10},{"sectionNumber":"8A","sectionType":"section","heading":"Entitlement to interest","content":"#### 8A Entitlement to interest\n\n (1) If:\n (a) a person makes a payment of, or on account of:\n (i) income tax; or\n (ia) shortfall interest charge under Division 280 in Schedule 1 to the Taxation Administration Act 1953; or\n (iia) compulsory repayment amount; or\n (iiaa) compulsory VETSL repayment amount; or\n (iib) compulsory SSL repayment amount; or\n (iic) compulsory ABSTUDY SSL repayment amount; or\n (iid) compulsory AASL repayment amount; or\n (iii) FS assessment debt; or\n (v) interest under section 102AAM of the Tax Act; or\n (va) a penalty under former section 163A of the Tax Act; or\n (vb) general interest charge under former section 163B, or former section 170AA, of the Tax Act; and\n (b) the payment is made more than 14 days before the day (the appropriate due day) on which the tax, debt, interest, amount or instalment concerned becomes due and payable;\n interest is payable by the Commissioner to the person on the payment, calculated in respect of the period applicable under section 8B at the rate specified in section 8C.\n (2) A reference in paragraph (1)(a) to a person making a payment of, or on account of:\n (a) income tax; or\n (ba) compulsory repayment amount; or\n (baa) compulsory VETSL repayment amount; or\n (bb) compulsory SSL repayment amount; or\n (bc) compulsory ABSTUDY SSL repayment amount; or\n (bd) compulsory AASL repayment amount; or\n (c) FS assessment debt;\n does not include a reference to the making of a deduction or payment under Part VI (other than Division 1) of the Tax Act.\n (3) A reference in paragraph (1)(a) to a person making a payment of, or on account of, any thing listed in any of the subparagraphs of that paragraph does not include a reference to the person being deemed or taken, by the Tax Act or any other Act, to have paid the thing because of the crediting or applying of any relevant tax, income tax crediting amount or other payment.","sortOrder":11},{"sectionNumber":"8B","sectionType":"section","heading":"Interest period","content":"#### 8B Interest period\n\n (1) Subject to subsection (2), interest under section 8A is payable to a person for the period:\n (a) if the person is not a full self‑assessment taxpayer—from the beginning of the later of the following days:\n (i) the day on which the payment is made;\n (ii) the day on which the notice notifying the tax, debt, interest or instalment concerned is issued; and\n (b) if the person is a full self‑assessment taxpayer—from the beginning of the day on which the payment is made;\n until the end of the appropriate due day.\n (2) If the payment is to any extent refunded before the appropriate due day, interest is not payable on the payment to that extent in respect of any period after the day on which the refund takes place.","sortOrder":12},{"sectionNumber":"8C","sectionType":"section","heading":"Rate of interest","content":"#### 8C Rate of interest\n\n Interest under section 8A is payable at the base interest rate (within the meaning of the Tax Act).","sortOrder":13},{"sectionNumber":"8D","sectionType":"section","heading":"No double entitlement to interest","content":"#### 8D No double entitlement to interest\n\n If:\n (a) interest is payable under this Part on a payment in respect of a period; and\n (b) interest is also payable under Part IIIA on the whole or part of the payment in respect of the whole or part of the period;\n then interest is not payable under this Part on the whole or part of the payment in respect of the whole or part of the period.","sortOrder":14},{"sectionNumber":"Part IIB","sectionType":"part","heading":"Interest on overpayments resulting from assessments","content":"## Part IIB—Interest on overpayments resulting from assessments","sortOrder":15},{"sectionNumber":"8E","sectionType":"section","heading":"Entitlement to interest—ordinary taxpayers","content":"#### 8E Entitlement to interest—ordinary taxpayers\n\n (1) If:\n (a) a person who is not a full self‑assessment taxpayer furnishes a return of income for a year of income; and\n (b) an assessment is made of the income tax payable by the person for the year of income; and\n (c) the notice of assessment notifies that the Commissioner has credited, applied or refunded (which crediting, applying or refunding is the notice crediting) one or more income tax crediting amounts in relation to the income tax payable by the person for the year of income; and\n (d) the sum of the income tax crediting amounts in paragraph (c) exceeds the sum of the following amounts:\n (i) income tax payable under the assessment (after allowing any rebate, except a tax offset that is subject to the refundable tax offset rules, or deduction under subsection 100(2) of the Tax Act and before allowing any crediting, applying or other payment);\n (iii) a compulsory repayment amount that is notified in the notice of assessment;\n (iiiaa) a compulsory VETSL repayment amount that is notified in the notice of assessment;\n (iiia) a compulsory SSL repayment amount that is notified in the notice of assessment;\n (iiib) a compulsory ABSTUDY SSL repayment amount that is notified in the notice of assessment;\n (iiic) a compulsory AASL repayment amount that is notified in the notice of assessment;\n (iv) an FS assessment debt that is notified in the notice of assessment;\n (iva) a liability under section 282‑18 of the Private Health Insurance Act 2007 that is notified in the notice of assessment;\n (v) interest for the year of income payable by the person under section 102AAM of the Tax Act immediately before the notice crediting; and\n (e) the notice crediting occurs more than 30 days or more after the day on which the person furnishes the return of income;\n interest is payable by the Commissioner to the person on the excess mentioned in paragraph (d), calculated in respect of the period applicable under section 8F at the rate specified in section 8I.\n\n> Note: Division 67 of the Income Tax Assessment Act 1997 lists the tax offsets that are subject to the refundable tax offset rules.\n\n (2) If:\n (a) a person who is not a full self‑assessment taxpayer furnishes a return of income for a year of income; and\n (b) an assessment is made of the income tax payable by the person for the year of income; and\n (c) after the notice of assessment is issued to the person, the Commissioner credits, applies or refunds (which crediting, applying or refunding is a post‑notice crediting) one or more income tax crediting amounts in relation to the income tax payable by the person for the year of income; and\n (d) the sum of the income tax crediting amounts in paragraph (c) exceeds the sum of the following amounts:\n (i) income tax payable for the year of income by the person immediately before the post‑notice crediting;\n\n> Note: This is the amount payable under the assessment for the year of income as reduced by any rebate, deduction under subsection 100(2) of the Tax Act, crediting, applying or other payment made before the post‑notice crediting.\n\n (iii) a compulsory repayment amount, worked out by reference to the person’s taxable income of the year of income, payable by the person immediately before the post‑notice crediting;\n (iiiaa) a compulsory VETSL repayment amount, worked out by reference to the person’s taxable income of the year of income, payable by the person immediately before the post‑notice crediting;\n (iiia) a compulsory SSL repayment amount, worked out by reference to the person’s taxable income of the year of income, payable by the person immediately before the post‑notice crediting;\n (iiib) a compulsory ABSTUDY SSL repayment amount, worked out by reference to the person’s taxable income of the year of income, payable by the person immediately before the post‑notice crediting;\n (iiic) a compulsory AASL repayment amount, worked out by reference to the person’s taxable income of the year of income, payable by the person immediately before the post‑notice crediting;\n (iv) an FS assessment debt, worked out by reference to the person’s taxable income of the year of income, payable by the person immediately before the post‑notice crediting;\n (iva) a liability under section 282‑18 of the Private Health Insurance Act 2007, payable by the person immediately before the post‑notice crediting;\n (v) interest for the year of income payable by the person under section 102AAM of the Tax Act immediately before the post‑notice crediting;\n interest is payable by the Commissioner to the person on the excess mentioned in paragraph (d), calculated in respect of the period applicable under section 8F at the rate specified in section 8I.","sortOrder":16},{"sectionNumber":"8F","sectionType":"section","heading":"Interest period—ordinary taxpayers","content":"#### 8F Interest period—ordinary taxpayers\n\n (1) If subsection 8E(1) applies, the interest is payable on the excess mentioned in paragraph 8E(1)(d) for the period from the beginning of the 30th day after the day on which the person furnishes the return of income until the end of the day on which the notice of assessment is issued.\n (2) If subsection 8E(2) applies and subsection (3) of this section does not apply, the interest is payable on the excess mentioned in paragraph 8E(2)(d) for the period from the beginning of the day on which the notice of assessment is issued until the end of the day on which the post‑notice crediting occurs.\n (3) If:\n (a) subsection 8E(2) applies; and\n (b) one or more payments have been made (including any taken to have been made because of the crediting or applying of any amount) of any amounts mentioned in subparagraphs 8E(1)(d)(i) to (v) (including those amounts as increased or decreased for any reason) after the notice of assessment is issued and before the post‑notice crediting;\n the interest is payable:\n (c) on so much of the excess as is attributable to a particular payment mentioned in paragraph (b)—for the period from the beginning of the day on which the payment was made until the end of the day on which the post‑notice crediting occurs; and\n (d) on so much of the excess as is not attributable to payments mentioned in paragraph (b)—for the period from the beginning of the day on which the notice of assessment is issued until the end of the day on which the post‑notice crediting occurs.\n (4) For the purposes of subsection (3), but subject to subsection (5), the excess is attributable to a particular payment to the extent that it would be set off against that payment if it were set off in succession against each of the payments in the reverse of the order in which they were made.\n (5) For the purposes of subsection (4), any payment is to be disregarded to the extent that:\n (a) it consists of an amount on which interest is payable under section 9; or\n (b) it has been taken into account in any previous application of subsection (4) of this section in relation to a post‑notice crediting occurring before the current post‑notice crediting.","sortOrder":17},{"sectionNumber":"8G","sectionType":"section","heading":"Entitlement to interest—full self‑assessment taxpayers","content":"#### 8G Entitlement to interest—full self‑assessment taxpayers\n\n (1) If:\n (a) a person who is a full self‑assessment taxpayer furnishes a return of income for a year of income; and\n (b) after the person furnishes the return, the Commissioner credits, applies or refunds (which crediting, applying or refunding is the first crediting) one or more income tax crediting amounts in relation to the income tax payable by the person for the year of income; and\n (c) the Commissioner has not previously credited, applied or refunded any income tax crediting amount in relation to the income tax payable by the person for the year of income; and\n (d) the sum of the income tax crediting amounts in paragraph (b) exceeds the sum of the following amounts:\n (i) income tax payable by the person for the year of income (after allowing any rebate, except a tax offset that is subject to the refundable tax offset rules, or deduction under subsection 100(2) of the Tax Act and before any crediting, applying or other payment);\n (iii) interest for the year of income payable by the person under section 102AAM of the Tax Act immediately before the first crediting; and\n (e) if the person furnishes the return of income for the year of income 30 days or more before the due date for payment of the assessed tax—the first crediting occurs 30 days or more after the day on which the person furnishes the return; and\n (f) if the person furnishes the return of income for the year of income after 30 days or more before the due date for payment of the assessed tax—the first crediting occurs after the due date for payment of the assessed tax;\n interest is payable by the Commissioner to the person on the excess mentioned in paragraph (d), calculated in respect of the period applicable under section 8H at the rate specified in section 8I.\n\n> Note: Division 67 of the Income Tax Assessment Act 1997 lists the tax offsets that are subject to the refundable tax offset rules.\n\n (2) If:\n (a) a person who is a full self‑assessment taxpayer furnishes a return of income for a year of income; and\n (b) after the first crediting, the Commissioner credits, applies or refunds (which crediting, applying or refunding is a later crediting) one or more income tax crediting amounts in relation to the income tax payable by the person for the year of income; and\n (c) the sum of the income tax crediting amounts in paragraph (b) exceeds the sum of the following amounts:\n (i) income tax payable for the year of income by the person immediately before the later crediting;\n\n> Note: This is the income tax payable for the year of income as reduced by any rebate, deduction under subsection 100(2) of the Tax Act, crediting, applying or other payment made before the later crediting.\n\n (iii) interest for the year of income payable by the person under section 102AAM of the Tax Act immediately before the later crediting; and\n interest is payable by the Commissioner to the person on the excess mentioned in paragraph (c), calculated in respect of\\` the period applicable under section 8H at the rate specified in section 8I.","sortOrder":18},{"sectionNumber":"8H","sectionType":"section","heading":"Interest period—full self‑assessment taxpayer","content":"#### 8H Interest period—full self‑assessment taxpayer\n\n (1A) If subsection 8G(1) applies to a person who is a full self‑assessment taxpayer, the interest is payable on the excess mentioned in paragraph 8G(1)(d) for the period from the beginning of the earlier of the following days:\n (a) the 30th day after the day on which the person furnishes the return of income for the year of income;\n (b) the due date for payment of the assessed tax;\n until the end of the day on which the first crediting occurs.\n (2A) If subsection 8G(2) applies to a person who is a full self‑assessment taxpayer and subsection (3) of this section does not apply, the interest is payable on the excess mentioned in paragraph 8G(2)(c) for the period from the beginning of the due date for payment of assessed tax until the end of the day on which the later crediting occurs.\n (3) If:\n (a) subsection 8G(2) applies; and\n (b) one or more payments have been made (including any taken to have been made because of the crediting or applying of any amount) of any amounts mentioned in subparagraphs 8G(1)(d)(i) to (iii) after the first crediting and before the later crediting;\n the interest is payable:\n (c) on so much of the excess as is attributable to a particular payment mentioned in paragraph (b)—for the period from the beginning of the day on which the payment was made until the end of the day on which the later crediting occurs; and\n (d) on so much of the excess as is not attributable to payments mentioned in paragraph (b), for the period from the beginning of the due date for payment of assessed tax until the end of the day on which the later crediting occurs.\n (4) For the purposes of subsection (3), but subject to subsection (5), the excess is attributable to a particular payment to the extent that it would be set off against that payment if it were set off in succession against each of the payments in the reverse of the order in which they were made.\n (5) For the purposes of subsection (4), any payment is to be disregarded to the extent that:\n (a) it consists of an amount on which interest is payable under section 9; or\n (b) it has been taken into account in any previous application of subsection (4) of this section in relation to a later crediting occurring before the current later crediting.","sortOrder":19},{"sectionNumber":"8I","sectionType":"section","heading":"Rate of interest","content":"#### 8I Rate of interest\n\n Interest under this Part is payable at the base interest rate (within the meaning of the Tax Act).","sortOrder":20},{"sectionNumber":"8K","sectionType":"section","heading":"Interpretation","content":"#### 8K Interpretation\n\n If the crediting, applying or refunding of an income tax crediting amount takes place at different times, the whole of the income tax crediting amount is taken for the purposes of this Part to have been credited, applied or refunded at the earlier or earliest of those times.","sortOrder":21},{"sectionNumber":"Part IIC","sectionType":"part","heading":"Interest on overpayments resulting from certain amendments of assessments made under the Superannuation Contributions Tax (Assessment and Collection) Act 1997","content":"## Part IIC—Interest on overpayments resulting from certain amendments of assessments made under the Superannuation Contributions Tax (Assessment and Collection) Act 1997","sortOrder":22},{"sectionNumber":"8L","sectionType":"section","heading":"Interpretation","content":"#### 8L Interpretation\n\n Expressions used in this Part that are defined in the Superannuation Contributions Tax (Assessment and Collection) Act 1997 have the same meanings as in that Act.","sortOrder":23},{"sectionNumber":"8M","sectionType":"section","heading":"Entitlement to interest","content":"#### 8M Entitlement to interest\n\n If:\n (a) an assessment is made under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 in respect of a person’s liability to pay superannuation contributions surcharge or an advance instalment; and\n (b) the person has paid the assessed amount of the surcharge or instalment; and\n (c) the assessment is amended (otherwise than under section 18 of that Act) reducing the liability of the person to pay surcharge or the instalment;\n interest is payable by the Commissioner to the person in accordance with this Part on the amount by which the surcharge or instalment payable by the person under the amended assessment is less than the surcharge or instalment that was paid by the person under the assessment that was amended.","sortOrder":24},{"sectionNumber":"8N","sectionType":"section","heading":"Period of interest","content":"#### 8N Period of interest\n\n The interest is payable for the period that:\n (a) started on the later of the following days:\n (i) the day on which the amount of the surcharge or advance instalment was paid;\n (ii) the day by which the amount of the surcharge or advance instalment was required to be paid; and\n (b) ends on the day on which the assessment was amended.","sortOrder":25},{"sectionNumber":"8P","sectionType":"section","heading":"Rate of interest","content":"#### 8P Rate of interest\n\n Interest under this Part is payable at the base interest rate (within the meaning of the Tax Act).","sortOrder":26},{"sectionNumber":"Part IIE","sectionType":"part","heading":"Interest on overpayments resulting from certain amendments of assessments made under the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997","content":"## Part IIE—Interest on overpayments resulting from certain amendments of assessments made under the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997","sortOrder":27},{"sectionNumber":"8U","sectionType":"section","heading":"Interpretation","content":"#### 8U Interpretation\n\n Expressions used in this Part that are defined in the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 have the same meanings as in that Act.","sortOrder":28},{"sectionNumber":"8V","sectionType":"section","heading":"Entitlement to interest","content":"#### 8V Entitlement to interest\n\n If:\n (a) an assessment is made under the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 in respect of a person’s liability to pay superannuation contributions surcharge; and\n (b) the person has paid the assessed amount of the surcharge; and\n (c) the assessment is amended (otherwise than under section 16 of that Act) reducing the liability of the person to pay surcharge;\n interest is payable by the Commissioner to the person in accordance with this Part on the amount by which the surcharge payable by the person under the amended assessment is less than the surcharge that was paid by the person under the assessment that was amended.","sortOrder":29},{"sectionNumber":"8W","sectionType":"section","heading":"Period of interest","content":"#### 8W Period of interest\n\n The interest is payable for the period that:\n (a) started on the later of the following days:\n (i) the day on which the amount of the surcharge was paid;\n (ii) the day by which the amount of the surcharge was required to be paid; and\n (b) ends on the day on which the assessment was amended.","sortOrder":30},{"sectionNumber":"8X","sectionType":"section","heading":"Rate of interest","content":"#### 8X Rate of interest\n\n Interest under this Part is payable at the base interest rate (within the meaning of the Tax Act).","sortOrder":31},{"sectionNumber":"Part IIF","sectionType":"part","heading":"Interest on overpayments resulting from certain amendments of assessments made under the Superannuation Contributions Tax (Assessment and Collection) Act 1997","content":"## Part IIF—Interest on overpayments resulting from certain amendments of assessments made under the Superannuation Contributions Tax (Assessment and Collection) Act 1997","sortOrder":32},{"sectionNumber":"8Y","sectionType":"section","heading":"Interpretation","content":"#### 8Y Interpretation\n\n Expressions used in this Part that are defined in the Superannuation Contributions Tax (Assessment and Collection) Act 1997 have the same meanings as in that Act.","sortOrder":33},{"sectionNumber":"8Z","sectionType":"section","heading":"Entitlement to interest","content":"#### 8Z Entitlement to interest\n\n If:\n (a) an assessment is made under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 in respect of a superannuation provider’s liability to pay superannuation contributions surcharge in respect of a person who has failed to provide a tax file number; and\n (b) the superannuation provider has paid the assessed amount of the surcharge in respect of the person; and\n (c) the assessment is amended under section 18 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 after the person provides a tax file number reducing the liability of the provider to pay surcharge;\n interest is payable by the Commissioner to the superannuation provider in accordance with this Part on the amount by which the surcharge payable by the provider under the amended assessment is less than the surcharge that was paid by the provider under the assessment that was amended.","sortOrder":34},{"sectionNumber":"8ZA","sectionType":"section","heading":"Period of interest","content":"#### 8ZA Period of interest\n\n The interest is payable for the period that:\n (a) started on the later of the following days:\n (i) the day on which the amount of the surcharge was paid;\n (ii) the day by which the amount of the surcharge was required to be paid; and\n (b) ends on the day on which the assessment was amended.","sortOrder":35},{"sectionNumber":"8ZB","sectionType":"section","heading":"Rate of interest","content":"#### 8ZB Rate of interest\n\n Interest under this Part is payable at the base interest rate (within the meaning of the Tax Act).","sortOrder":36},{"sectionNumber":"Part IIG","sectionType":"part","heading":"Interest on certain amounts of tax on no‑TFN contributions income of superannuation providers","content":"## Part IIG—Interest on certain amounts of tax on no‑TFN contributions income of superannuation providers","sortOrder":37},{"sectionNumber":"8ZC","sectionType":"section","heading":"Interpretation","content":"#### 8ZC Interpretation\n\n Expressions used in this Part that are defined in the Income Tax Assessment Act 1997 have the same meanings as in that Act.","sortOrder":38},{"sectionNumber":"8ZD","sectionType":"section","heading":"Entitlement to interest","content":"#### 8ZD Entitlement to interest\n\n (1) Interest is payable by the Commissioner to a superannuation provider in accordance with this Part on the amount set out in subsection (2) if:\n (a) an individual quoted his or her tax file number to his or her employer at a time before the end of an income year (the past year); and\n (b) the employer was required by section 133 of the Retirement Savings Accounts Act 1997 or section 299C of the Superannuation Industry (Supervision) Act 1993 to inform the superannuation provider of the individual’s tax file number by the end of the past year, but did not; and\n (c) as a result, a contribution was an amount of no‑TFN contributions income of the superannuation provider of the past year; and\n (d) an amount of tax (the interest‑bearing tax) payable in respect of that no‑TFN contributions income counts towards the tax offset under Subdivision 295‑J of the Income Tax Assessment Act 1997 for an income year (the current year) for the superannuation provider; and\n (e) the tax offset under that Subdivision is applied in making an assessment in respect of the superannuation provider for the current year.\n (2) The interest is payable on each amount of interest‑bearing tax.","sortOrder":39},{"sectionNumber":"8ZE","sectionType":"section","heading":"Period of interest","content":"#### 8ZE Period of interest\n\n The interest is payable for the period that:\n (a) started on the later of the following days:\n (i) the day on which the amount of interest‑bearing tax was paid;\n (ii) the day by which the amount of interest‑bearing tax was required to be paid; and\n (b) ends on the day on which the assessment is made.","sortOrder":40},{"sectionNumber":"8ZF","sectionType":"section","heading":"Rate of interest","content":"#### 8ZF Rate of interest\n\n Interest under this Part is payable at the base interest rate (within the meaning of the Tax Act).\n\n> Note: For the meaning of base interest rate see section 8AAD of the Taxation Administration Act 1953.","sortOrder":41},{"sectionNumber":"Part III","sectionType":"part","heading":"Interest on overpayments resulting from decisions to which this Act applies","content":"## Part III—Interest on overpayments resulting from decisions to which this Act applies","sortOrder":42},{"sectionNumber":"9","sectionType":"section","heading":"Entitlement to interest","content":"#### 9 Entitlement to interest\n\n (1) Subject to sections 11, 11A and 12, where:\n (a) an amount of relevant tax is paid by a person to the Commissioner (in this subsection referred to as the amount paid); and\n (b) as a result of a decision to which this Act applies, the whole or a part of the amount paid is overpaid by the person and is refunded to the person or applied against any liability of the person to the Commonwealth;\n interest calculated in accordance with subsections (2) and (3) and sections 10 and 10A is payable by the Commissioner to the person in respect of:\n (c) in a case where the whole of the amount paid is so refunded or applied—the amount paid; or\n (d) in a case where a part of the amount paid is so refunded or applied—the part of the amount paid so refunded or applied.\n (1A) If:\n (a) apart from this subsection, subsection (1) would apply to an overpayment; and\n (b) the decision to which this Act applies mentioned in that subsection was made wholly or partly to provide correlative relief, for juridical double taxation or economic double taxation, in respect of the taxing of an amount under a law of a foreign country; and\n (c) either:\n (i) the law of the foreign country did not require the payment of late payment interest in respect of the amount; or\n (ii) the law of the foreign country did require the payment of late payment interest but the payment had not been made by the time the decision to which this Act applies was made;\n subsection (1) does not apply to the overpayment to the extent to which it is attributable to the provision of the correlative relief.\n (1B) Subsection (1) does not apply to an overpayment to the extent that the overpayment results from the person providing or receiving a financial benefit (within the meaning of the Income Tax Assessment Act 1997) under a look‑through earnout right (within the meaning of that Act).\n (1C) Subsection (1) does not apply to an overpayment to the extent that the overpayment results from paragraph 417‑105(a) of the Income Tax Assessment Act 1997 allowing an amount to be deducted from assessable income (within the meaning of that Act) for an earlier year of income.\n (2) Where an amount of relevant tax has, whether by agreement or otherwise, been paid by a person to the Commissioner in instalments, each instalment shall, for the purposes of section 10, be treated as a separate amount of relevant tax paid by the person to the Commissioner.\n (3) Where:\n (a) an amount of relevant tax has, whether by agreement or otherwise, been paid by a person to the Commissioner in instalments; and\n (b) as a result of a decision to which this Act applies, a part only of the amount of relevant tax is overpaid by the person and is refunded to the person or applied against any liability of the person to the Commonwealth;\n the amount so refunded or applied shall, for the purposes of section 10, be attributed to the instalments in reverse order to the order in which the instalments were paid to the Commissioner.\n (4) Where the Commissioner applies an amount that has been paid to him or her by a person against the liability of another person to pay an amount of relevant tax, the other person shall, for the purposes of this Act, be deemed to have paid to the Commissioner, to the extent of the amount so applied and on the day on which the amount is so applied, the amount of relevant tax.\n (6) Where:\n (a) at a particular time, a company pays an amount of franking deficit tax;\n (b) at a later time (in this subsection called the offset time), the company becomes entitled to a tax offset that is attributable, in whole or in part, to so much of the company’s franking deficit tax liability as was discharged by the payment of that amount; and\n (c) as a result of a decision to which this Act applies (being a decision made after the offset time), the whole or part of the amount paid by the company is overpaid;\n the amount paid by the company shall be taken to have been applied, at the offset time, against a liability of the company to the Commonwealth as a result of that decision.\n (7) In subsection (6), franking deficit tax and tax offset have the meanings given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.\n Liabilities under section 282‑18 of the Private Health Insurance Act 2007\n (8) For the purposes of this section, if:\n (a) the Commissioner gives a notice to a person under subsection 282‑18(4) of the Private Health Insurance Act 2007; and\n (b) the notice states that the person is liable to pay an amount to the Commonwealth under section 282‑18 of that Act; and\n (c) the person pays the stated amount to the Commissioner; and\n (d) the stated amount exceeds the amount the person is liable to pay under that section; and\n (e) the excess is refunded to the person or applied against any liability of the person to the Commonwealth;\n treat the excess as being overpaid by the person, and so refunded or applied, as a result of the decision of the Commissioner to give the notice.\n\n> Note 1: The decision of the Commissioner to give the notice is a decision to which this Act applies. See section 3.\n\n> Note 2: Liabilities under section 282‑18 of the Private Health Insurance Act 2007 are relevant tax. See section 3C.","sortOrder":43},{"sectionNumber":"10","sectionType":"section","heading":"Amount of interest","content":"#### 10 Amount of interest\n\n (1) Interest payable to a person by virtue of section 9 in respect of an amount of relevant tax, or the part of an amount of relevant tax, refunded to the person, or applied against any liability of the person to the Commonwealth, as a result of a decision to which this Act applies shall be calculated:\n (a) in respect of the period that commenced on the later of the following days:\n (i) the day on which notice of the assessment, determination or decision, being the assessment, determination or decision in relation to which the decision to which this Act applies was made, was issued to the person by the Commissioner;\n (ii) the day on which the amount of relevant tax was paid to the Commissioner;\n and ended on the day on which the amount of the relevant tax or the part of the amount of relevant tax, as the case may be, was so refunded or applied; and\n (b) at the base interest rate (within the meaning of the Tax Act).\n (2) For the purposes of subparagraph (1)(a)(i), if the decision to which this Act relates is a decision of the Commissioner under section 18‑130 in Schedule 1 to the Taxation Administration Act 1953 in relation to an amount of Pay as you go withholding non‑compliance tax, the notice of the decision in relation to which that decision was made is the notice the Commissioner gives to the person under section 18‑140 in that Schedule in relation to that amount of tax.","sortOrder":44},{"sectionNumber":"11","sectionType":"section","heading":"Limit on overpayment of interest where correlative relief in respect of foreign income tax","content":"#### 11 Limit on overpayment of interest where correlative relief in respect of foreign income tax\n\n If:\n (a) apart from this section, interest is payable in respect of the whole or part (which whole or part is the overpayment) of an amount of relevant tax; and\n (b) the decision to which this Act applies mentioned in subsection 9(1) was made wholly or partly to provide correlative relief, for juridical double taxation or economic double taxation, in respect of the taxing of an amount under a law of a foreign country; and\n (c) as a result, the whole or part (which whole or part is the correlative relief amount) of the overpayment is attributable to the provision of the correlative relief; and\n (d) the interest on the overpayment, to the extent that it is attributable to the correlative relief amount, exceeds the lesser of:\n (i) the amount of the late payment interest paid in respect of the amount taxed under the law of the foreign country, expressed in Australian currency at the exchange rate applicable at the time when the taxing of the amount under the law of the foreign country takes place;\n\n> Note: Such interest must have been paid or subsection 9(1A) would prevent the correlative relief amount from attracting interest under this Part.\n\n (ii) the correlative relief amount;\n the interest otherwise payable on the overpayment is reduced by the amount of the excess in paragraph (d).","sortOrder":45},{"sectionNumber":"Part IIIA","sectionType":"part","heading":"Interest on overpayments resulting from certain remissions and refunds","content":"## Part IIIA—Interest on overpayments resulting from certain remissions and refunds","sortOrder":46},{"sectionNumber":"12A","sectionType":"section","heading":"Entitlement to interest","content":"#### 12A Entitlement to interest\n\n (1) If:\n (a) the Commissioner, as a result of a request by a person:\n (i) remits, under section 8AAG of, the Taxation Administration Act 1953, the whole or part of an amount that has been paid to the Commissioner in respect of general interest charge payable under former section 163AA of the Tax Act or section 5‑15 of the Income Tax Assessment Act 1997; or\n (ia) remits, under section 280‑160 in Schedule 1 to the Taxation Administration Act 1953, the whole or part of an amount that has been paid to the Commissioner in respect of shortfall interest charge payable under Division 280 in that Schedule; or\n (iv) refunds the whole or part of a payment made by a person on account of something listed in subsection (1A); and\n (b) the remission or refund takes place more than 30 days after the day on which the request is made;\n interest is payable by the Commissioner to the person on the amount remitted or refunded, calculated in respect of the period applicable under section 12B at the rate specified in section 12C.\n (1A) For the purposes of subparagraph (1)(a)(iv), the following are listed:\n (a) income tax;\n (b) compulsory repayment amount;\n (baa) compulsory VETSL repayment amount;\n (ba) compulsory SSL repayment amount;\n (bb) compulsory ABSTUDY SSL repayment amount;\n (c) compulsory AASL repayment amount;\n (d) FS assessment debt;\n (e) interest under section 102AAM of the Tax Act.\n (2) A reference in subparagraph (1)(a)(iv) to a person making a payment on account of something listed in subsection (1A) does not include a reference to the making of a deduction or payment under Division 5 of the Tax Act.","sortOrder":47},{"sectionNumber":"12B","sectionType":"section","heading":"Period of interest","content":"#### 12B Period of interest\n\n The interest is payable for the period from the beginning of the 30th day after the day on which the request was made until the end of the day on which the remission or refund takes place.","sortOrder":48},{"sectionNumber":"12C","sectionType":"section","heading":"Rate of interest","content":"#### 12C Rate of interest\n\n Interest under this Part is payable at the base interest rate (within the meaning of the Tax Act).","sortOrder":49},{"sectionNumber":"Part IIIAA","sectionType":"part","heading":"—Delayed refund interest on running balance account (RBA) surpluses","content":"## Part IIIAA—Delayed refund interest on running balance account (RBA) surpluses","sortOrder":50},{"sectionNumber":"12AA","sectionType":"section","heading":"Entitlement to interest for RBA surpluses after notification of BAS amount or petroleum resource rent tax amount","content":"#### 12AA Entitlement to interest for RBA surpluses after notification of BAS amount or petroleum resource rent tax amount\n\n If:\n (a) the Commissioner has allocated a BAS amount or petroleum resource rent tax amount to an RBA of an entity; and\n (b) section 12AB does not apply (that section is about remission of penalties); and\n (c) under subsection 8AAZLF(1) of the Taxation Administration Act 1953, the Commissioner is required to refund to the entity the whole or part of an RBA surplus for that RBA; and\n (d) the refund takes place after the RBA interest day;\n then interest is payable by the Commissioner to the entity on the amount refunded.\n\n> Note: Section 12AF defines BAS amount, petroleum resource rent tax amount, RBA surplus and RBA interest day.","sortOrder":51},{"sectionNumber":"12AB","sectionType":"section","heading":"Entitlement to interest for RBA surpluses after request for remission","content":"#### 12AB Entitlement to interest for RBA surpluses after request for remission\n\n If:\n (a) the Commissioner has allocated a BAS amount or petroleum resource rent tax amount to an RBA of an entity; and\n (b) the entity requests the Commissioner to remit a penalty of which the entity has been notified by the Commissioner; and\n (c) as a result of the Commissioner remitting the penalty, the Commissioner is required, under subsection 8AAZLF(1) of the Taxation Administration Act 1953, to refund to the entity the whole or part of an RBA surplus for that RBA; and\n (d) the refund takes place after the RBA interest day;\n then interest is payable by the Commissioner to the entity on the amount refunded.\n\n> Note: Section 12AF defines BAS amount, petroleum resource rent tax amount, RBA surplus and RBA interest day.","sortOrder":52},{"sectionNumber":"12AC","sectionType":"section","heading":"Entitlement to interest for RBA surpluses after request for refund","content":"#### 12AC Entitlement to interest for RBA surpluses after request for refund\n\n If:\n (a) the Commissioner has allocated a payment to an RBA of an entity; and\n (b) the Commissioner has allocated or intends to allocate a BAS amount or petroleum resource rent tax amount to that RBA; and\n (c) under subsection 8AAZLF(2) of the Taxation Administration Act 1953, the Commissioner, as a result of a request by the entity, is required to refund the whole or part of an RBA surplus for that RBA; and\n (d) the refund takes place after the RBA interest day;\n then interest is payable by the Commissioner to the entity on the amount refunded.\n\n> Note: Section 12AF defines BAS amount, petroleum resource rent tax amount, RBA surplus and RBA interest day.","sortOrder":53},{"sectionNumber":"12AD","sectionType":"section","heading":"Period of interest for RBA surpluses","content":"#### 12AD Period of interest for RBA surpluses\n\n Interest under this Part is payable for the period from the end of the RBA interest day until the end of the day on which the refund takes place.","sortOrder":54},{"sectionNumber":"12AE","sectionType":"section","heading":"Rate of interest for RBA surpluses","content":"#### 12AE Rate of interest for RBA surpluses\n\n Interest under this Part is payable at the base interest rate (within the meaning of the Tax Act).","sortOrder":55},{"sectionNumber":"12AF","sectionType":"section","heading":"Definitions","content":"#### 12AF Definitions\n\n In this Part:\n\n> BAS amount has the same meaning as in subsection 995‑1(1) of the Tax Act.\n\n> petroleum resource rent tax amount has the same meaning as in subsection 995‑1(1) of the Tax Act.\n\n> RBA interest day for an RBA surplus means the 14th day after the latest of the following days:\n\n (a) either:\n (i) if section 12AA applies—the day on which the surplus arises; or\n (ii) if section 12AB or 12AC applies—the day on which the relevant request is made;\n (b) if, by the day applicable under paragraph (a), the person has not given the Commissioner a notification that:\n (i) is required for the refund under section 8AAZLG or 8AAZLGB (as the case requires) of the Taxation Administration Act 1953; and\n (ii) that is accurate so far as it relates to the refund;\n the day on which that notification is given to the Commissioner;\n (c) unless the Commissioner has given a direction under subsection 8AAZLH(3) of the Taxation Administration Act 1953—the day on which the person nominates a financial institution account for the purposes of that section.\n\n> RBA surplus has the same meaning as in section 8AAZA.","sortOrder":56},{"sectionNumber":"Part IIIB","sectionType":"part","heading":"Adjustment of interest","content":"## Part IIIB—Adjustment of interest","sortOrder":57},{"sectionNumber":"12D","sectionType":"section","heading":"Interest to be in multiples of 1 cent","content":"#### 12D Interest to be in multiples of 1 cent\n\n If an amount of interest calculated under this Act is not a multiple of 1 cent, the amount of interest is to be:\n (a) if the amount of interest is a multiple of 0.5 cent—increased by 0.5 cent; or\n (b) in any other case—increased or decreased, as the case requires, to the nearest multiple of 1 cent.","sortOrder":58},{"sectionNumber":"12E","sectionType":"section","heading":"Small amounts of interest not to be paid","content":"#### 12E Small amounts of interest not to be paid\n\n If, apart from this section, an amount of interest:\n (a) would be payable to a person under this Act; and\n (b) is less than 50 cents;\n the amount is not payable to the person.","sortOrder":59},{"sectionNumber":"12F","sectionType":"section","heading":"Adjustment where amount to be paid by, or refunded to, person does not exceed 49 cents","content":"#### 12F Adjustment where amount to be paid by, or refunded to, person does not exceed 49 cents\n\n If:\n (a) an amount of interest payable to a person under this Act is applied in discharge of a liability of the person to the Commonwealth; and\n (b) the amount (if any) remaining to be paid (the net amount) by the person in relation to that liability is less than 50 cents;\n the net amount is not payable by the person.","sortOrder":60},{"sectionNumber":"Part IV","sectionType":"part","heading":"Miscellaneous","content":"## Part IV—Miscellaneous\n\n> Note: For rules about allocation of credits arising under this Act, see Division 3 of Part IIB of the Taxation Administration Act 1953.","sortOrder":61},{"sectionNumber":"15","sectionType":"section","heading":"Regulations","content":"#### 15 Regulations\n\n The Governor‑General may make regulations, not inconsistent with this Act, prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":62}],"analysis":{"summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act began in 1983 with a relatively focused purpose: paying interest to taxpayers on overpayments of income tax resulting from successful objections or appeals. Over time, its scope has expanded substantially to cover: early payments of tax, student loan repayments (HECS/HELP, VET, ABSTUDY SSL, apprenticeship support loans), superannuation contributions surcharge overpayments across multiple Acts, no-TFN contributions income, GST and indirect taxes, fringe benefits tax, petroleum resource rent tax, PAYG withholding non-compliance tax, private health insurance levies, foreign revenue claims, delayed BAS refunds via running balance accounts, and international correlative relief scenarios. What began as a narrow income-tax-focused interest mechanism now spans virtually the entire Australian federal tax system."},"complexity_factors":["Multiple distinct Parts each creating separate interest entitlements with different triggering conditions, time periods, and eligibility rules","Different rules for 'ordinary taxpayers' vs 'full self-assessment taxpayers', requiring readers to identify which category applies to them","Extensive cross-referencing to numerous other Acts (Income Tax Assessment Act 1936, Income Tax Assessment Act 1997, Taxation Administration Act 1953, Higher Education Support Act 2003, VET Student Loans Act 2016, Social Security Act 1991, Student Assistance Act 1973, Private Health Insurance Act 2007, Petroleum Resource Rent Tax Assessment Act 1987, Fringe Benefits Tax Assessment Act 1986, and multiple Superannuation Contributions Tax Acts)","International tax provisions involving 'correlative relief', 'juridical double taxation', 'economic double taxation', and double tax agreements, which require specialist knowledge to interpret","Complex attribution rules for calculating interest when payments were made in instalments or where multiple credits and payments interact (sections 8F, 8H)","A large table of over 20 categories of 'relevant tax' spanning income tax, indirect taxes, student loan types, superannuation taxes, and other levies","Technical definitions (e.g. 'income tax crediting amount', 'full self-assessment taxpayer', 'RBA surplus', 'BAS amount') that require reading multiple other Acts to fully understand","Superannuation-specific provisions covering multiple distinct Acts and scenarios including no-TFN contributions income","Interaction and anti-overlap provisions (e.g. section 8D preventing double entitlement between Parts IIA and IIIA) that require holistic reading of the entire Act"],"plain_english_summary":"## What This Law Does\n\nThis Act sets out when and how the Australian Tax Office (ATO) must **pay interest back to you** when:\n\n1. **You paid tax early** — more than 14 days before it was due, and\n2. **You overpaid tax** — because a tax assessment was later corrected in your favour, or because a court, tribunal, or the ATO itself decided you paid too much.\n\n## Who Does This Affect?\n\nPractically any Australian taxpayer, including:\n- **Individuals** paying income tax, student loan repayments (HECS-HELP, VET Student Loans, ABSTUDY SSL, etc.)\n- **Businesses** paying fringe benefits tax, GST, petroleum resource rent tax, or other taxes\n- **Superannuation funds and providers** who overpaid contributions surcharge\n- **Directors of companies** in certain PAYG (Pay As You Go) withholding situations\n\n## The Key Rules in Plain English\n\n### Early Payments (Part IIA)\nIf you pay a tax debt **more than 14 days early**, the ATO owes you interest on that payment for the period between when you paid and when it was actually due. The interest rate is the \"base interest rate\" (a standard rate set under tax law).\n\n### Overpayments After Assessment (Parts IIB, IIC, IIE, IIF, IIG)\nIf the ATO issues an assessment, you pay it, and then the assessment is **reduced** (e.g., because you lodged your return and had too much withheld from wages), the ATO must pay you interest on the refund. How long interest runs depends on whether you are a standard taxpayer or a \"full self-assessment taxpayer\" (mainly large companies who calculate their own tax).\n\n### Overpayments After a Decision (Part III)\nIf you win an objection (a formal dispute with the ATO), appeal to a tribunal, or win in court, and the ATO refunds tax you'd already paid, the ATO must pay you **interest** on the refunded amount — from the date you originally paid until the date of refund. There are exceptions for certain international tax situations (to prevent \"double dipping\" on interest from overseas refunds).\n\n### Delayed Refunds on Running Balance Accounts (Part IIIAA)\nBusinesses that lodge Business Activity Statements (BAS) or pay petroleum resource rent tax may accumulate a credit balance (\"surplus\") in their tax account. If the ATO is slow to refund that surplus — generally beyond 14 days — interest is payable.\n\n### Slow Responses to Remission Requests (Part IIIA)\nIf you ask the ATO to waive (\"remit\") a charge or refund an overpayment, and the ATO takes more than 30 days to act, you are owed interest on the amount for every day beyond those 30 days.\n\n## Practical Impact\n- **Good news for taxpayers:** The ATO isn't allowed to sit on your money interest-free. If it takes too long to process refunds or corrections, it must compensate you.\n- **Interest rate used:** The \"base interest rate\" — typically a lower rate than what the ATO charges *you* for late payment.\n- **Small amounts:** Interest under 50 cents is not paid (to keep administration practical).\n- **No double-dipping:** You can't receive interest under two different parts of this Act for the same money at the same time."},"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":true,"description":"The legislation has grown significantly beyond its original 1983 purpose of providing interest on overpayments and early payments of income tax. It now covers: multiple student loan repayment schemes (HECS/HELP, VET FEE-HELP, Student Start-up Loans, ABSTUDY SSL, Australian Apprenticeship Support Loans); superannuation contributions surcharge (now abolished but still covered); GST and petroleum resource rent tax running balance account surpluses; fringe benefits tax; diverted profits tax; private health insurance rebate liabilities; PAYG withholding non-compliance tax; and various foreign tax credit arrangements. The original Act was approximately 12 pages; the current version spans numerous Parts with highly specialized rules for each tax type, reflecting 40+ years of accretive amendments rather than a coherent redesign."},"complexity_factors":["Multiple overlapping Parts (IIA, IIB, IIC, IIE, IIF, IIG, III, IIIA, IIIAA, IIIB) each with slightly different rules for different types of taxes and situations","Extensive cross-referencing to at least 15 other Acts including the Income Tax Assessment Acts (1936 and 1997), Taxation Administration Act 1953, Superannuation Contributions Tax Acts, Private Health Insurance Act 2007, and various student loan Acts","27 defined terms in section 3 alone, many of which themselves reference definitions in other legislation (e.g., 'compulsory repayment amount', 'full self-assessment taxpayer', 'relevant tax')","Complex conditional logic with multiple nested exceptions, particularly in sections 8E-8H (different rules for ordinary vs full self-assessment taxpayers) and section 9 (correlative relief exclusions for foreign tax)","Detailed attribution rules for determining which specific payment an overpayment relates to when multiple payments have been made (sections 8F(3)-(5) and 8H(3)-(5))","Table in section 3C listing 22 different types of 'relevant tax' with inconsistent numbering (5, 15, 20, 25, 30, 45, 45A, 46, 47, 48, 50, 55, 60, 80, 85, 90, 91, 92, 95, 110, 120, 145, 150, 155)","Multiple carve-outs and exclusions (e.g., subsection 9(1A) excluding interest on correlative relief where foreign interest hasn't been paid; section 12E excluding interest under 50 cents)"],"plain_english_summary":"This law sets the rules for when the Australian Taxation Office (ATO) must pay **interest to taxpayers** — essentially compensating people and businesses when the government holds their money for too long.\n\n**What it covers:**\n- **Early payments**: If you pay your tax more than 14 days before it's actually due, the ATO pays you interest for the period they held your money early (Part IIA).\n- **Overpayments from assessments**: If you overpay tax and the ATO takes too long to refund the excess after assessing your return, you get interest (Part IIB).\n- **Overpayments from decisions**: If you successfully object to a tax assessment or win a court case and get a refund, you get interest on the refunded amount from when you paid the tax until you get it back (Part III).\n- **Superannuation surcharge refunds**: Special rules for interest on overpaid superannuation contributions tax (Parts IIC, IIE, IIF).\n- **Delayed refunds from running balance accounts**: Interest if the ATO delays refunding GST or petroleum resource rent tax surpluses (Part IIIAA).\n- **Remissions and refunds**: Interest if the ATO takes too long to remit (cancel) interest charges or refund certain payments after you request it (Part IIIA).\n\n**Who it affects:**\n- Individual taxpayers, companies, superannuation funds, and employers.\n- Different rules apply depending on whether you're a \"full self-assessment taxpayer\" (mostly companies and large entities that calculate their own tax) or an \"ordinary taxpayer\" (most individuals).\n\n**Why it matters:**\nThis law ensures fairness — if the government holds your money longer than it should, or if you pay tax that is later found to be too much, you're compensated with interest at a standard rate (the \"base interest rate\"). It also prevents the ATO from profiting from delays in processing refunds or correcting errors."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"The supplied text does not state any amendment or alteration of the Act’s original stated scope. The Act, as presented, sets out the present scope by defining the classes of taxes and decisions it covers (see s 3 and the table in s 3C) and then applies its interest and procedural rules across multiple taxpayer categories and special cases. There is no material in the text indicating a change from an earlier or original scope."},"complexity_factors":["Extensive cross‑references to other statutes and parts of the Taxation Administration Act and multiple other Acts (see s 3, s 3C and numerous Parts referencing external provisions).","Different timing and entitlement rules for distinct classes of taxpayers (ordinary vs full self‑assessment) with multiple 14‑day and 30‑day windows (ss 8A–8B, 8E–8H).","Many specialised Parts addressing particular taxes and contexts (superannuation surcharge Parts IIC/IIF, no‑TFN rules Part IIG, RBA rules Part IIIAA, remissions Part IIIA).","Detailed allocation and attribution rules for instalments and post‑notice creditings (s 9(2)–(3); s 8F(3)–(5); s 8H(3)–(5)).","Procedural requirements tied to refunds and RBA interest days (notifications and account nominations in s 12AF).","Multiple exceptions and caps (no double entitlement s 8D; correlative relief exclusions and caps ss 9(1A), 11).","Precision rules for monetary rounding and de‑minimis thresholds (ss 12D–12F).","Administrative obligations and reporting duty on the Commissioner (ss 4, 7), increasing operational complexity."],"plain_english_summary":"What this law does, in plain language\n\n- Mechanically, the Act requires the Commissioner of Taxation to pay interest to people or entities when: (a) they pay certain Commonwealth taxes or related amounts early (Part IIA, esp. s 8A–8C); (b) they overpay relevant taxes and the overpayment is later refunded or applied because of a decision covered by the Act (Part III, esp. s 9–10); (c) particular refunds, remissions or amendments reduce liabilities for superannuation or other listed taxes (Parts IIB, IIC, IIE, IIF, IIG and Part IIIA — see e.g. ss 8E–8I, 8M–8P, 8V–8ZB, 8ZD–8ZF, 12A–12C); and (d) certain running balance account (RBA) surpluses are refunded late (Part IIIAA, ss 12AA–12AF). Interest is normally calculated at the statutory “base interest rate” (see ss 8C, 8I and matching provisions in other Parts).\n\nWho it affects\n\n- People and entities who pay or overpay Commonwealth taxes listed as “relevant tax” (see s 3C for a detailed list that includes income tax, GST assessed under the A New Tax System, PAYG withholding non‑compliance tax, diverted profits tax, petroleum resource rent tax, and a range of education, social security and superannuation‑related amounts).\n- Ordinary taxpayers and full self‑assessment taxpayers (different timing rules apply — see Part IIB, ss 8E–8H).\n- Superannuation providers and entities with running balance accounts (special rules in Parts IIC, IIE, IIF, IIG and IIIAA).\n- The Commissioner of Taxation (administration and payment obligations under s 4, reporting under s 7) and review bodies whose decisions can trigger interest (Tribunal and courts; see the definition of “decision to which this Act applies” in s 3).\n\nWhy it matters (stated purpose and how the Act operates mechanically)\n\n- The Act implements a mechanical rule: when taxpayers or entities pay early, overpay, or receive refunds/remissions that reduce previously paid liabilities, the Commissioner must pay interest to compensate for the time value of the amount (the Act links to the concept of late payment interest defined in s 3). The rate for most interest entitlements is the base interest rate (see s 8C, s 8I and comparable provisions). The Act also prevents duplicate interest payments in some cases (s 8D) and limits interest on amounts that are overpayments because they were used to give “correlative relief” for foreign tax (ss 9(1A), 11).\n\nKey mechanics and rules (with notable procedural features and citations)\n\n- Definitions and administration: the Commissioner has general administration (s 4) and must report annually on the Act (s 7). The Act’s central definitions — including “decision to which this Act applies” and the catalogue of “relevant tax” — are in s 3 and s 3C (see the table in s 3C).\n\n- Early payments: if a listed tax or related charge is paid more than 14 days before its due date, the Commissioner pays interest on that early payment for the statutory period at the base rate (s 8A; period rules in s 8B; rate in s 8C). Interest is not payable on any part later refunded before the due day (s 8B(2)).\n\n- Overpayments arising from assessments and credits: separate rules apply to ordinary taxpayers and full self‑assessment taxpayers (Part IIB). An ordinary taxpayer can get interest on an excess credit where the notice crediting occurs more than 30 days after the return is lodged (s 8E(1), period s 8F); full self‑assessment taxpayers have different timing triggers tied to the 30‑day rule and the assessed tax due date (s 8G–8H). Calculation is at the base interest rate (s 8I).\n\n- Overpayments resulting from decisions: where a decision covered by the Act (see s 3) causes an overpayment that is refunded or applied, the Commissioner pays interest for the period from the later of the notice issue day or the payment day until the refund/application day, at the base interest rate (s 9 and s 10).\n\n- Correlative relief and foreign tax interactions: if the decision that creates the refund was made to give correlative relief for foreign taxation, the Act excludes interest in certain circumstances (s 9(1A)) and caps interest so it cannot exceed late payment interest actually paid overseas or the correlative relief amount (s 11).\n\n- Remissions and late refunds: where the Commissioner remits or refunds certain interest/shortfall charges or other listed payments because of a request, and the remission/refund occurs more than 30 days after the request, interest is payable from day 30 after the request until the refund (ss 12A–12C).\n\n- RBA surpluses: special delayed‑refund interest applies where BAS amounts or petroleum resource rent tax amounts have been allocated to an RBA and a refund of an RBA surplus occurs after the RBA interest day (ss 12AA–12AF). The RBA interest day depends on the event that gives rise to the surplus and on whether the entity supplied required notifications or nominated an account (s 12AF).\n\n- Superannuation and no‑TFN special rules: Parts IIC, IIE, IIF and IIG (ss 8M–8P; 8V–8ZB; 8Z–8ZB; 8ZD–8ZF) set out interest entitlements and timing for particular superannuation‑related assessments and tax offsets.\n\n- Practical adjustments and de minimis rules: interest amounts are rounded to multiples of 1 cent (s 12D); tiny interest payments under 50 cents are not paid (s 12E); and if applying interest would leave a net liability under 50 cents, that net amount is not payable (s 12F).\n\nWho pays, who decides, and behaviour consequences (costs, incentives, compliance burdens)\n\n- Who pays: the Commissioner pays interest to taxpayers, superannuation providers and entities entitled to refunds or remissions (see e.g. s 8A, s 8E, s 9, s 12A, s 12AA). The Commissioner’s payment obligation is an expenditure or liability of the Commonwealth (administrative cost to the tax administration).\n\n- Who decides: the Commissioner makes remission, refund and assessment decisions that trigger interest; Tribunal and courts can make or confirm decisions that trigger interest where those decisions are “decisions to which this Act applies” (s 3). The Act also requires the Commissioner to prepare an annual working report (s 7).\n\n- Incentives and behaviour: the rules create financial consequences for timing of payments and for seeking assessments, remissions and refunds. For example, early payment can generate an interest entitlement (s 8A), and delayed refunds or remissions can produce interest to the recipient (s 12A, Part IIIAA). Different timing rules for ordinary vs full self‑assessment taxpayers (ss 8E–8H) change the window during which interest accrues. These rules may affect how soon taxpayers pay, whether and when they lodge returns, and whether they request remissions or pursue objections that could generate refunds.\n\n- Compliance burden and administration: implementing the Act requires tracking multiple time windows (14‑day, 30‑day and RBA interest‑day rules across Parts IIA, IIB, IIIA and IIIAA), distinguishing taxpayer categories, applying offsets/credits against instalments in reverse order (s 9(3) and s 8F(4)–(5)), and following special procedures for RBA notifications and account nominations (s 12AF). The Commissioner must also report annually (s 7). These elements create record‑keeping and processing requirements for both taxpayers and the Commissioner.\n\n- Discretion and limits: the Commissioner has statutory roles (administration, remission under other Acts referenced by this Act) but much of the interest calculation is mechanical once the triggering event occurs; limits are placed where overpayments relate to correlative foreign tax relief (ss 9(1A), 11).\n\nTrade‑offs, opportunity costs and implementation risk\n\n- The Act shifts timing‑related transfers: taxpayers or entities receive compensation (interest) when timing or decisions cause them to have paid earlier or to receive refunds later; the Commonwealth (via the Commissioner) bears that cost.\n- The detailed cross‑referencing to other tax and social security laws (see s 3 and s 3C) increases complexity in administration and the risk of errors when matching credits, offsets and remittances across multiple statutes.\n- Multiple special cases (superannuation parts, RBA rules, correlative relief limits, full vs ordinary self‑assessment) reduce one‑size‑fits‑all predictability and increase the compliance and systems burden for both taxpayers and the tax office.\n\nBottom line (mechanical effect):\n- The Act prescribes when the Commissioner must pay interest on early payments, overpayments, refunds and remissions for a wide range of Commonwealth taxes and related amounts, specifies the period and base interest rate to apply, contains rounding and small‑amount rules, and sets procedural requirements (notifications, requests, record‑keeping, and annual reporting) that govern how, when and to whom those interest payments are made (see ss 3, 8A–8C, 8E–8I, 9–11, 12A–12C, 12AA–12AF, 12D–12F)."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-interest-on-overpayments-and-early-payments-act-1983","history":"/api/acts/taxation-interest-on-overpayments-and-early-payments-act-1983/history","analysis":"/api/acts/taxation-interest-on-overpayments-and-early-payments-act-1983/analysis","conflicts":"/api/acts/taxation-interest-on-overpayments-and-early-payments-act-1983/conflicts","importantCases":"/api/acts/taxation-interest-on-overpayments-and-early-payments-act-1983/important-cases","documents":"/api/acts/taxation-interest-on-overpayments-and-early-payments-act-1983/documents"}}