Penalty Interest Rate Review

Section 172(2) of the Local Government Act 1989 requires that the interest to be charged on unpaid rates and charges is calcualted using the penalty interest rate set by the Attorney General under the Penalty Interest Rates Act 1983.

The Attorney General has advised in Circular No 6/2015 that the penalty interest rate has decreased from10.5% per annum to 9.5% per annum, effective from the date of 1 June 2015.

As it currently stands this will become the effective Penalty Interest Rate to apply from 1 July 2015 for the 2015/2016 Rate Year.

Further information is available on the Department of Justice web site at http://www.justice.vic.gov.au/home/justice+system/fines+and+penalties/pe...