The duty liability is calculated to include payment of interest.
The Duties Act 2000 provides that duty must be paid, within 30 days of the liability to pay the duty, for dutiable transactions occurring on or after 1 April 2012. The Taxation Administration Act 1997 provides that once a tax default occurs, the taxpayer is liable for interest and/or penalty tax.
A tax default resulting from a late payment is subject to interest calculated at the market rate plus a premium rate of 8 per cent. However, when the Commissioner has been approached to lodge a late assessment, the Commissioner has exercised his discretion by imposing interest at the market rate and 3 per cent reduced premium rate. Interest is calculated from the due date for payment up to and including the lodgement date.
If you believe that the Commissioner should reconsider interest charged on a late lodgement, you can lodge your transaction with the State Revenue Office with a request that the Commissioner remit the interest charged.
The Commissioner will only remit interest in very limited circumstances. For example, the Commissioner may remit market interest only if you paid the duty on time but to another jurisdiction, or remit premium interest if you can establish late payment as a result of circumstances outside of your control (see Revenue Ruling TAA-007v3 Interest and Penalty Tax).
If you proceed with lodging via Duties Online, the liable party in the transaction will retain the right to object to the assessment within 60 days of the deemed service of the notice of assessment.
More information on interest rates is available on our website.