Annexure C – Late payment prescribed rate as per s172(5) of the 1987 Act

The late payment fee prescribed rate is aligned with the Payroll Tax penalty rate annually and published on the Revenue NSW website under Interest and Penalty Tax Rates. The rate for the quarter commencing 1 July each year will apply to the relevant policy year commencing 30 June. For example, the rate for the 2022 policy renewal year will be the Revenue NSW rate for the quarter commencing 1 July 2022 and will apply to policies issued from 4pm on 30 June 2022 to 3.59pm on 30 June 2023.

Revenue NSW publish the Payroll tax penalty rate as an annual rate which will need to be converted to a per month compounded monthly rate. The following is an example of the formula to calculate the per month compounded monthly rate:

iratemonthly = (1 + irateannual) ^ (1/numberofmonths) – 1

where i = interest rate, ^n = to the power of n.

Example

Annual Penalty Rate                                    8.01%

Number of Months                                          12

excel formula                                               =(1+0.0801)^(1/12)-1

Compound Monthly Late Payment rate  0.644%

Previous prescribed rates

Prior to 2022 SIRA prescribed the relevant rates annually and the table below contains the historical prescribed late payment rates prior to the 2022 policy renewal year

*The rate prescribed for the periods beginning 4.00pm on 30 June 2019 and 30 June 2020 are the same as the rate prescribed for the policy year beginning 4.00pm 30 June 2018