Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Taxation Laws Amendment Bill (No. 3) 2001
Schedule 4 Amendments relating to Treasury Note yield rate and general interest charge

Part 1 Amendment of the Taxation Administration Act 1953

Taxation Administration Act 1953

1  Section 8AAD

Repeal the section, substitute:

8AAD   What is the general interest charge rate?

             (1)  The general interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.

             (2)  The base interest rate for a day depends on which quarter of the year the day is in. For each day in a quarter in the second column of the table, it is the monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank of Australia for the month in the third column of the table.

 

Base interest rate

Item

For days in this quarter...

the monthly average yield of 90-day Bank Accepted Bills for this month applies...

1

1 January to 31 March

the preceding November

2

1 April to 30 June

the preceding February

3

1 July to 30 September

the preceding May

4

1 October to 31 December

the preceding August

             (3)  If the monthly average yield of 90-day Bank Accepted Bills for a particular month in the third column of the table in subsection (2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank of Australia before that month.

             (4)  The base interest rate must be rounded to the second decimal place (rounding .005 upwards).



 

Part 2 Consequential amendments of other Acts

Diesel and Alternative Fuels Grants Scheme Act 1999

2  Subsection 16B(3) (method statement, step 4)

Omit “Treasury Note yield rate”, substitute “the base interest rate”.

3  Subsection 16B(4) (definition of Treasury Note yield rate )

Repeal the definition.

4  Subsection 16B(4)

Insert:

base interest rate for a day has the same meaning as in section 8AAD of the Taxation Administration Act 1953 .

Income Tax Assessment Act 1936

5  Subsection 214A(1)

Repeal the subsection, substitute:

             (1)  In this section:

base interest rate has the meaning given by section 8AAD of the Taxation Administration Act 1953 .

6  Subsection 214A(2)

Omit “Treasury Note yield rate”, substitute “base interest rate”.

Product Grants and Benefits Administration Act 2000

7  Subsection 24A(3) (method statement, step 4)

Omit “Treasury Note yield rate”, substitute “the base interest rate”.

8  Subsection 24A(4) (definition of Treasury Note yield rate )

Repeal the definition.

9  Subsection 24A(4)

Insert:

base interest rate for a day has the same meaning as in section 8AAD of the Taxation Administration Act 1953 .



 

Part 3 Application

10  Application

The amendments made by this Schedule apply to each day of each quarter mentioned in subsection 8AAD(2) of the Taxation Administration Act 1953 (as amended) where the quarter begins on or after the day on which this Act receives the Royal Assent.