refund of an RBA surplus
Early payment interest
From 1 July 2000,
delayed refund interest is payable on a surplus on a running balance amount
(RBA) that reflects:
- the allocation of a business activity statement (BAS) amount to the RBA following
lodgment of the statement where it is not refunded within 14 days after the day the
surplus arises. A BAS amount is any credit or debt that arises directly under the BAS
provisions, which include goods and services tax (GST), wine equalisation tax, luxury
car tax, PAYG withholding and instalments, and instalments of fringe benefits tax
- the remission of a penalty (that you requested) relating to a BAS amount where
it is not refunded within 14 days after the day you request the remission, or
- a voluntary payment (that you requested be refunded) made in respect of an
anticipated tax debt under a BAS provision where it is not refunded within 14
days after the day the request for refund is made.
You must provide us with all your outstanding activity statements or all the
information necessary for your activity statements to be processed, and, if
required, details of a nominated account at a financial institution for the
refund to be paid into. Delayed refund interest will not start accruing until
14 days after the day that you provide the relevant statements or information.
Note: Delayed refund interest is not
payable if, at the time that the refund or surplus arises, the refund or credit
is offset against another tax liability you owe.
We will automatically
calculate delayed refund interest for you.
Early payment interest
is payable on the following:
- income tax (including Medicare levy and Medicare levy surcharge) shown on your notice of assessment
- compulsory Higher Education Loan Program (HELP) repayment amount shown on your notice of assessment
- compulsory Student Financial Supplement Scheme (SFSS) debt repayment shown on your notice of assessment
- interest on distributions from non-resident trust estates
- shortfall interest charge
- income tax penalties for the 19992000 and earlier income years
- general interest charge for lodging a late income tax return for income years up to and including 1999-2000
- general interest charge on an increase in the tax payable resulting from an amended assessment for
income years up to and including 19992000.
The following payments do not attract early payment interest:
- Pay as you go (PAYG) withholding amounts including:
- amounts withheld from interest, dividends and royalties, and
- amounts withheld by payers, including those withheld for HELP (previously HECS) and SFSS
- PAYG instalments, and
- any part of a payment that exceeds the amount that is due and payable.
If an amount that is paid early is refunded before the day it becomes due and payable, early payment
interest is not payable for any period after the day it is refunded.
Issue date of the
notice of assessment (NOA) informing you of the amount of tax, debt, interest
Interest on an overpayment of tax is payable from the 199394 income year in the following
- You are entitled to a refund as a result of an assessment and it takes us more than 30
days after your tax return is lodged to issue the assessment. (Where a return is lodged
without all the required information, the 30-day period starts from the date we, the
ATO, receive all the information).
- You claim certain credits after an assessment has been made
- Your assessment is amended after you paid it and the amendment reduces your tax liability
- You request a refund of the whole or part of a payment you made for income tax,
certain income tax penalties, a HECS assessment debt, a compulsory HELP repayment
amount, or a Student Financial Supplement Scheme assessment debt, or you request
a remission of certain amounts of general interest charge that you have paid or
a remission of the shortfall interest charge that you have paid, and the refund
or remission occurs more than 30 days after the date you made the request.
The ATO will
automatically calculate interest on overpayment for you.
Use the following
table to determine your date of payment.
If you paid...
The date of payment is
At the post office
the date shown
on your receipt from the post office.
by direct debit
the date your
bank account is direct debited, as shown on your bank statement.
the date of
postage plus three days.
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