The ATO has released the GIC and Shortfall interest charge (SIC) rates for the third quarter of 2018-19 covering Jan- March 2019. They are:
- GIC annual rate – 8.94% (base rate + 7%).
- GIC daily rate – 0.02449315%.
- SIC annual rate – 4.94% (base rate + 3%)
- SIC daily rate – 0.01353425%.
The ATO’s website explains that the ‘base rate’ is the ’90 day Bank Accepted Bill rate’ at a specified time, for each quarter.
Relevant provisions in the TAA53, establish the respective 7% and 3% uplifts.
CPD (comprehension) questions
- For what quarter is the Commissioner announcing the GIC and SIC rates?
- What is the GIC rate to be?
- What is the SIC rate to be?
- What ‘base rate’ are these both based on?