Early Payment Interest Schedule

Not available in Accountants Office

This credit came into effect under new provisions of Sections 8A to 8D of the Income Tax Act which required the Commissioner to pay interest where income tax or certain other amounts are actually paid by the taxpayer more than 14 days before the day on which the relevant amount became due and payable. The amounts in respect of which early payment interest may be payable for individuals are payments of, or on account of, the following:

• Income Tax (including Medicare) shown on the notice of assessment

• Compulsory Higher Education and compulsory Financial Supplement debts shown on the notice of assessment

• Interest on distributions from non-resident trust estates

• Shortfall interest charge

What taxes do not apply:

• PAYG withholding (including amounts withheld from interest, dividends, royalties, HECS-HELP/TSL and SFSS)

• PAYG instalments

If an amount that is paid early is refunded before the day it becomes due and payable, early payment interest is not payable in respect of any of the period after the day it is refunded. The period for which early payment interest is calculated is from the later of these criteria:

• the day of the payment, or;

• the day of the relevant notice (for example, of assessment) is issued until the day the relevant amount becomes due and payable

Tax Paid: Enter the amount of tax paid before the due date.

Date of payment: Enter the date the taxpayer made the prepayment.

Assessment Issue date: Enter the date the notice of assessment was issued to the taxpayer. This is the date that appears at the top right-hand corner of the notice of assessment under the title Date of Issue.

Tax payable due date: Enter the due date for payment. This is the date that appears on the notice of assessment after This amount is payable by....