Taxation Laws Amendment (Self Assessment) Act 1992 (101 of 1992)

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

25   After section 214

After section 214 of the Principal Act the following section is inserted:

Interest rates

"214A.(1) In this section:

'Treasury Note yield', in relation to a month, means the weighted average yield set at the last weekly tender for the 13 week Treasury Note before the end of that month plus 4 percentage points.

"(2) The annual rate at which interest is calculated under section 170AA, or computed under section 207A, in respect of any period of, or within, a month is the rate of interest for that month.

"(3) Subject to this section, the rate of interest for a month in the first 6 months of a financial year is the Treasury Note yield for April in the preceding financial year.

"(4) Subject to this section, the rate of interest for a month in the last 6 months in a financial year is the Treasury Note yield for October in that financial year.

"(5) The Treasurer may determine, in writing, that the rate of interest for:

(a) a month; or

(b) consecutive months in the first 6 months in a financial year; or

(c) consecutive months in the last 6 months in a financial year; is the Treasury Note yield for the month that was 3 months before that month or before the earliest of those consecutive months.

"(6) Subject to subsection (5), if, apart from this subsection, the rate for the months in the first 6 months or the last 6 months in a financial year would differ by no more than one percentage point from the rate for the last month before them, the Treasurer may determine, in writing, that the earlier rate is also to be the rate for them.

"(7) A rate must be rounded to the first decimal place (rounding .05 upwards).

"(8) The Commissioner is to cause notice of a rate of interest for a month or months to be published in the Gazette before that month or those months.".