The UTI rate is 8.10% for the 2020–21 financial year.
The rate is reviewed annually. For a particular financial year, the rate is equal to the sum of the monthly average yield of 90-day bank accepted bills for the preceding May (rounded to the nearest second decimal point) and 8%.
UTI has 2 components:
assessed interest—calculated at the time an assessment is made
late payment interest (LPI)—calculated after an assessment is made and applied each Sunday.
If you receive an assessment notice, it will include the amount of UTI (calculated on a daily basis) that applied at the date the assessment was issued.
Any payments you make will go towards UTI before being applied to the tax.
We may prosecute you if you commit offences such as:
failing to comply with a notification or lodgement requirement
knowingly providing false or misleading documents.
As an alternative to prosecution, penalty tax applies when we:
issue a default assessment
reassess a default assessment
reassess, and the tax payable increases.
We may issue a default assessment if:
you don’t provide information or documents we require on time
we are not satisfied with the accuracy of documents that you give us
it is necessary to make an immediate assessment.
Penalty tax is 75% of the tax amount on a default assessment, or 75% of the increase in tax on a reassessment. The penalty tax rate can be more if you hinder or prevent us from learning about your tax liability, or fail to notify us that an assessment was lower than it should have been.
Any payments you make will go towards penalty tax before being applied to the tax.
In some circumstances, we may decide to reduce the penalty tax.