Interest and penalty tax

Late or non-payment of duties and taxes may result in interest being charged on the outstanding amount.  Further information about interest is available in Revenue Circular GEN009.4.

The following table lists the interest type and rates for overdue debts, deferred debts and refunds administered by the ACT Revenue Office.

1 January 2024 to 30 June 2024

Overdue debts for Duty Return taxes First Home Owner Grant Utilities (Network) Facilities Tax Energy Industry Levy	Simple daily interest - 12.38%
Overdue debts for Rates Land tax Foreign Ownership Surcharge Land Rent Police, Fire & Emergency Services Levy City Centre Marketing and Improvements Levy Safer Families Levy	Compound monthly interest - 12.38% eg. 16 March to 15 April
Deferred Lease Variation Charge	Compound monthly interest – 6.18% eg. 16 March to 15 April
Deferred rates	Simple daily interest - 4.38%
Deferred duty	Simple daily interest - 4.38%
Refunds from over-payments (interest may apply)	Simple daily interest - 4.38%

1 July 2023 to 31 December 2023

Overdue debts for Duty Return taxes First Home Owner Grant Utilities (Network) Facilities Tax Energy Industry Levy	Simple daily interest - 11.90%
Overdue debts for Rates Land tax Foreign Ownership Surcharge Land Rent Police, Fire & Emergency Services Levy City Centre Marketing and Improvements Levy Safer Families Levy	Compound monthly interest - 11.90% 16 August to 15 September
Deferred Lease Variation Charge	Compound monthly interest - 5.70% eg. 16 August to 15 September
Deferred rates	Simple daily interest - 3.90%
Deferred duty	Simple daily interest - 3.90%
Refunds from over-payments (interest may apply)	Simple daily interest - 3.90%

1 January 2023 to 30 June 2023

Overdue debts for Duty Return taxes First Home Owner Grant Utilities (Network) Facilities Tax Energy Industry Levy	Simple daily interest - 11.06%
Overdue debts for Rates Land tax Foreign Ownership Surcharge Land Rent Fire & Emergency Services Levy City Centre Marketing and Improvements Levy Safer Families Levy	Compound monthly interest - 11.06% eg. 16 July to 15 August
Deferred Lease Variation Charge	Compound monthly interest - 4.86% eg. 16 July to 15 August
COVID-19 Assistance for deferral of payroll tax	Please note: COVID-19 Assistance for deferral of payroll tax included ACT businesses with group Australia‑wide wages of up to $10 million being able to defer their 2020-21 payroll tax, interest free until 1 July 2022.
Deferred rates	Simple daily interest - 3.06% Please note: COVID-19 Assistance provided for the deferral of rates due to financial hardship. First instalment payment of rates for 2021-22 financial year can be deferred interest-free for up to 3 months on principal place of residence.
Deferred duty	Simple daily interest - 3.06%
Refunds from over-payments (interest may apply)	Simple daily interest - 3.06%

Historical interest rates

For information on historical interest rates please click here.

Penalty tax

Penalty tax is imposed where a taxpayer fails to meet certain obligations.  This includes the underpayment, late payment or failure to pay tax.

The penalty tax rate imposed ranges from 25 per cent to 90 per cent of the tax payable depending on the level of culpability.

Penalty tax may be reduced if you make a voluntary disclosure before the commencement of an investigation.  We encourage you to voluntarily disclose any discrepancies you discover.  If you obstruct or hinder an investigation, penalty tax may be increased.

Additional information on penalties can be found:

• Revenue Circular GEN006.3 - Penalty Tax;  and
• Revenue Circular FHOG001.1 - First Home Owner Grant Offences Penalties and Interest