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.

[ATO website: GIC explanation, SIC explanation; LTN 236, 6/22/19; Tax Month – December 2018]

FJM 11.1.19

CPD (comprehension) questions

  1. For what quarter is the Commissioner announcing the GIC and SIC rates?
  2. What is the GIC rate to be?
  3. What is the SIC rate to be?
  4. What ‘base rate’ are these both based on?

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