Use-of-money interest rates change

The use-of-money interest rates on underpayments and overpayments of taxes and duties have changed, in line with market interest rates. The new rates are:

• underpayment rate: 8.35% (previously 8.22%)
• overpayment rate: 0.81% (previously 1.02%)

The new rates come into force on 29 August 2019.

Rates are reviewed regularly to ensure they are in line with market interest rates. The new rates are consistent with the Reserve Bank floating first mortgage new customer housing rate and the 90-day bank bill rate.

The rates were changed by Order in Council on 1 July 2019.

Taxation (Use of Money Interest Rates) Amendment Regulations 2019 (LI 2019/153)