25Interest on unpaid contributions

25 Interest on unpaid contributions

25 Interest on unpaid contributions

(cf clause 8 of 2005 Reg)

(1) The interest on a contribution under section 88 of the Act that is not fully paid by the due date for payment of the contribution is to be calculated daily (at the prescribed rate)—

(a) from the day immediately following the due date, and

(b) on so much of the contribution as remains outstanding.

Note.

Accordingly, interest ceases to accumulate when the contribution has been fully paid (whether or not interest is fully paid at that time).

(2) The prescribed rate at which interest is to be charged on the outstanding amount of a contribution is the sum of the following per annum—

(a) 8 per cent,

(b) the cash rate target released by the Reserve Bank of Australia that is applicable for the first business day after the due date for payment of the contribution.

cl 25: Am 2018 (643), Sch 2 [16].