FROM 9 MAY 2023 THE UOMI RATES ON UNDERPAYMENTS AND OVERPAYMENTS OF TAX WILL CHANGE.
The new rates are:
- Underpayments – 10.39% (up from 9.21%0
- Overpayments – 3.53% (up from 2.31%)
Interest amounts
Interest gets calculated daily on your overpaid or underpaid tax. It does not compound and is not included when calculating penalties.
The interest rates are set by government and are based on market rates, so they vary over time.
| When interest rate started | Debit rate | Credit rate |
| 9 May 2023 | 10.39% | 3.53% |
| 17 January 2023 | 9.21% | 2.31% |
| 30 August 2022 | 7.96% | 1.22% |
| 10 May 2022 | 7.28% | 0.00% |
| 8 May 2020 | 7.00% | 0.00% |
| 29 August 2019 | 8.35% | 0.81% |
| 8 May 2017 | 8.22% | 1.02% |
| 8 May 2016 | 8.27% | 1.62% |
| 8 May 2015 | 9.21% | 2.63% |
Source: https://www.ird.govt.nz/updates/news-folder/use-of-money-interest-rate-change
Disclaimer
Unfortunately, with details changing all the time and at such speed, we need to add that the above content is correct at the time of writing as far as the author is aware and is very much subject to change. We have, to the best of our ability, acknowledged any shared content. All related links provided to the corresponding websites are subject to change as they are live links.