26Interest rate

26 Interest rate (1) The interest rate is the sum of— (a) the market rate component; and (b) the premium component. (2) The market rate component for a day is— (a) if a determination of a rate is, under section 139 (1) (b) (Determination of amounts payable under tax laws), in force for this paragraph for the day—the determined rate; or (b) if paragraph (a) does not apply—the monthly 90-day bank bill rate worked out in accordance with table 26 and rounded to the 2nd decimal place (with 0.005 rounded to 0.01).

Table 26 If the day is…. the monthly 90-day bank bill rate is…. in the 1st 6 months of a year (a) if, before 1 January of the year, the monthly 90-day bank bill rate for the previous November had been published—that rate; or (b) if paragraph (a) does not apply—the last monthly 90-day bank bill rate published before 1 January of the year. in the 2nd 6 months of a year (a) if, before 1 July of the year, the monthly 90-day bank bill rate for the previous May had been published—that rate; or (b) if paragraph (a) does not apply—the last monthly 90-day bank bill rate published before 1 July of the year. (3) The premium component is 8% per annum. monthly 90-day bank bill rate means the monthly average yield of 90-day bank accepted bills published by the Reserve Bank of Australia for a particular month.

Interest Division 5.1