Taxes Consolidation Act 1997 section 653Y

Interest on overdue tax

Section 653Y provides for interest to be charged on overdue or underpaid residential zoned land tax (RZLT).

• Interest accrues at a rate of 0.0219% per day (approximately 8% per annum) from the date RZLT becomes due and payable until payment is made.
• Interest is collected using the same procedures as the underlying tax, and in bankruptcy or liquidation it ranks equally with unpaid RZLT in priority over other debts.
• A certificate signed by a Revenue officer stating that interest is due and payable is accepted as evidence of the amount owed unless the contrary is proved.
• Where RZLT and interest remain unpaid, the amount becomes a charge on the land, meaning the property cannot be sold or transferred free of the encumbrance without settling the outstanding balance.