Unpaid tax interest for transfer duty self assessors

If primary tax (duty) for a dutiable transaction is not paid by its due date, unpaid tax interest (UTI) will accrue daily until the duty is paid in full. UTI may also apply if a document is not lodged on time.

As a transfer duty self assessor, you should understand when UTI applies and how it is calculated so you can clearly explain to your client how their duty liability was determined.

The UTI rate is 9% for the 2022–23 financial year.

UTI has 2 components:

  • assessed interest – calculated at the time a transaction is assessed and lodged
  • late payment interest (LPI) – calculated after the transaction has been lodged.

Whether assessed interest or LPI applies to a particular transaction will depend on the following:

  • Lodgement due date – 30 days from the date of the transaction, subject to any extension (see public ruling DA019.1)
  • Lodgement non-compliance period – the number of days between the lodgement due date and the actual lodgement date
  • Actual lodgement date – the date when a transaction statement is
    • lodged in QRO Online
    • or
    • received in our office (if you are a paper lodger)
  • Transaction payment due date – 14 days after you lodge the transaction statement, even if the transaction is lodged early.

Use our transfer duty calculator to work out the UTI component of a transaction before entering it into QRO Online.

Liability for UTI

The parties to a transaction are liable for the duty, interest and penalties on that transaction.

How UTI is applied

UTI accrues from the UTI start date, which is worked out by deducting the lodgement non-compliance period (in days) from the transaction payment due date. The UTI start date will be shown on your transaction summary statement if you lodge through QRO Online.

Assessed interest

When you lodge a transaction late (i.e. after 30 days from either the date of the transaction or when it became unconditional), assessed interest will apply if the UTI start date is before the lodgement/assessment date.

A transaction is lodged in QRO Online on 9 June 2022, which is 50 days late – it should have been lodged on 20 April 2022. The payment due date is 23 June (14 days after date of lodgement).

The lodgement non-compliance period is from 21 April (the day after the transaction was due to be lodged) to 9 June (the day the transaction was actually lodged).

The UTI start date is 5 May 2022 (payment due date 23 June minus 50-day non-compliance period). Thirty-six days of interest will be assessed at the time of the assessment – 5 May to 9 June.

Late payment interest (LPI)

If you submit a transaction on time through QRO Online (i.e. within 30 days of transaction or unconditional date), LPI will only accrue after the payment due date. However, where a transaction has been lodged late, LPI will accrue either:

  • from the UTI start date, if the transaction is lodged up to 14 days late
  • or
  • from the lodgement/assessment date, if the transaction is lodged more than 14 days late.

This interest accrues weekly each Sunday until the liability is paid in full.

Using the previous example – where the transaction was lodged on Thursday 9 June (50 days late) – 36 days of assessed interest would be included in the assessment. LPI starts accruing on Sunday 12 June (calculated from 10 to 12 June) and then every Sunday after that.

If full payment of duty and assessed interest is received on Friday 10 June, no LPI would accrue.

If payment is made on Thursday 23 June, LPI would accrue on Sunday 12 June (calculated from 10 to 12 June) and on Sunday 19 June (calculated from 13 to 19 June). No LPI would accrue between Monday 20 June and Thursday 23 June.

QRO Online cannot forecast if payment will be made on time, so any LPI that accrues after the lodgement/assessment date will not appear on the transaction statement.

Also consider...

Contact

Queensland Revenue Office
For transfer duty self-assessment queries:

For queries on payroll tax, land tax and royalties:

  • call 1300 300 734 (Australia) or +61 7 3179 2500 (overseas)
  • send an email using our online enquiry form.