Interest and penalties
Failure to lodge payments on time will result in the imposition of interest and in some cases a further penalty.
Interest applies from the time a NSW tax liability exists and it is not paid or returned by the due date. See interest rate table.
Penalty tax is imposed at different levels depending on the level of culpability of the taxpayer and the level of assistance the taxpayer provides. The basic penalty for failing to take reasonable care is 25 percent. This can be reduced to zero or increased to 90 percent depending on the circumstances. A voluntary disclosure always results in an 80 percent reduction in the level of penalty.
Interest and penalty tax is charged in accordance with the Taxation Administration Act 1996. OSR conducts random checks to ensure compliance.
For more information
