New legislation - 2012: Orders in Council (2012)
The use-of-money interest rates on underpayments and overpayments of taxes and duties have changed, in line with market interest rates. The new rates are:
- underpayment rate: 8.40% (currently 8.89%)
- overpayment rate: 1.75% (currently 2.18%).
The new rates apply from 8 May 2012, the day after the third instalment of provisional tax is paid by taxpayers with a standard balance date.
Rates are reviewed regularly to ensure they are in line with market interest rates. The new rates are consistent with the Reserve Bank floating first mortgage new customer housing rate and the 90-day bank bill rate.
The rates were changed by Order in Council on 26 March 2012.
Taxation (Use of Money Interest Rates) Amendment Regulations 2012 (2012/59)
Other pages in: Orders in Council (2012)
Date published: 14 May 2012
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