Taxation Administration Act 1997
35Interest rate
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35 Interest rate
[Section 35 Substituted by No. 6 of 2002, Sched. 2, Applied:30 May 2002]
(1) The interest rate is the sum of –
(a) the market rate component; and
(b) [Section 35 Subsection (1) amended by No. 8 of 2021, s. 19, Applied:01 Jul 2021] the premium component.
(2) The market rate component is –
(a) unless an order is in force under paragraph (b) , the Bank Accepted Bill rate rounded to the second decimal place (rounding 0.005 upwards); or
(b) the rate the Minister specifies by order published in the Gazette.
(3) The Bank Accepted Bill rate in respect of any day is the yield rate for 90-day Bank Accepted Bills published by the Reserve Bank for the month of May in the financial year preceding the financial year in which the day occurs.
(4) [Section 35 Subsection (4) inserted by No. 8 of 2021, s. 19, Applied:01 Jul 2021] The premium component is –
(a) unless an order is in force under paragraph (b) , 8% per annum; or
(b) the rate the Minister specifies by order published in the Gazette.