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Penalty Interest Rates

About the Penalty Interest Rate

The penalty interest rate is the interest rate applied to certain debts, such as those arising from a judgment or court order. It is also used for calculating interest payable on specific amounts under other specified legislation.

The penalty interest rate is fixed by the Attorney-General under the Penalty Interest Rates Act 1983. The rate is reviewed regularly by the Attorney-General and based on an appropriate institutional rate together with an added penalty element.

The Department of Justice provides basic information about the penalty interest rate and how it is calculated. If you need assistance in relation to how the rate applies to your business or personal affairs, you should seek independent legal advice.

How it differs from other interest rates

The penalty interest rate differs from other interest rates because of the penalty element.

The penalty interest rate is only altered when there is a significant change in institutional rates.

Current Penalty Interest Rates

The current penalty interest rate appears in The Age newspaper every Monday under the Law List. The following, taken from the Government Gazette is the penalty interest rate paid under section 2 of the Penalty Interest Rates Act 1983:

'The penalty interest rate fixed by the Attorney-General under section 2 of the Penalty Interest Rates Act 1983 is 10.0% per annum with effect on and from 23 February 2009.'

Past rates can be found on the Penalty Interest Rate - Archived Rates page.