Understanding when unpaid tax interest is due

When duty for a transaction isn’t paid on time, it will start to accrue unpaid tax interest (UTI) on and from the UTI ‘start date’. UTI may also apply if a document isn’t lodged on time.

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.

You must submit a transaction in QRO Online on or before the lodgement due date and pay the duty within 14 days of submission.

UTI usually starts the day after payment of the duty for a transaction is due. However, the UTI start date may be earlier if a transaction is lodged late or we reassess a taxpayer’s liability for transfer duty. Transactions may be reassessed to:

• correct data entry errors
• apply concessions
• amend unencumbered values and consideration
• adjust the interest being acquired in a transaction.

Due dates after reassessment
When the liability for dutiable transaction is reassessed, the payment due date for the transaction is automatically extended to 30 days after the date of reassessment. However, this extension does not change the UTI start date nor does it stop the accrual of LPI.

What you can do
The UTI start date and payment due date will be shown on your transaction statement summary. If you lodge through QRO Online, the duty payment due date and the UTI start date are also both displayed in the ‘Payment’ tab.

We recommend that you routinely check due dates in QRO Online to make sure you identify transactions that have a UTI start date that is earlier than the payment due date for the duty liability.

To avoid UTI and stop LPI accruing, liability for these transactions should be paid as soon as possible following lodgement. Interest continues to accrue until the liability is paid in full.

More information

• Read about unpaid tax interest for transfer duty self assessors.
• Refer to unpaid tax interest and penalties.
• Check the key dates for lodging electronic conveyancing transactions.