Interest on early payments and overpayments of tax 2021

When we pay interest on early payments and overpayments

We pay interest on certain early payments, overpayments of tax and where there is a delay in refunding amounts from a running balance account.

The interest rate arrangements apply to individuals, taxable trusts, companies and superannuation funds.

Interest is only payable if it is 50c or more.

We pay interest where:

• you make an early payment
• you overpay tax
• there is a delay in paying your refund.

Interest rates for 2020–21

The rate we use in calculating your interest is set by law and is reviewed every quarter.

For information on current quarterly interest rates, see Credit interest rates and calculation.

Table: Interest rates used for calculation of early payments, overpayments and delayed refunds (2020–21)

Period	Interest rate (% pa)
1 July 2020 – 30 September 2020	0.10
1 October 2020 – 31 December 2020	0.10
1 January 2021 – 31 March 2021	0.02
1 April 2021 – 30 June 2021	0.01

Interest rates for interest we pay on early payments, overpayments and delay in paying your refund for 2020-21.