The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.I.85 Interest charge rate

Definition

The interest charge rate is the daily interest rate that is applied to debts, calculated by adding 7 percentage points to the base interest rate (1.1.B.10) for that day, and dividing that total by the number of days in the calendar year.

The base interest rate is based on the 90-day Bank Accepted Bills published by the Reserve Bank of Australia, using data from a prescribed month in the prior quarter. If no new rate is available, the last published rate is used.

Act reference: PPLAct section 177 What is the interest charge rate?

Last reviewed: