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How is interest calculated?

Guide to how interest is calculated.

Last updated 24 May 2017

Interest is generally calculated as follows:

 Divide the number of days by 365 (366 in a leap year) and multiply the result by the amount of the payment. Take the answer, and multiply it by the interest rate for the period divided by 100.

Is interest assessable income?

Yes, interest is assessable income. Include any interest on your tax return in the year it is paid to you or in the year it is set off or applied against another tax debt you had with us.

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