Section Sch1-3-dup2 — Income Tax Act 2007: Interest: general

3 Interest: general If clause 4 does not apply, the payment rate for a payment of resident passive income that consists of interest is set out in table 2. Table 2 Row Conditions Payment rate 1 The payer of the interest has not been supplied with the tax file number of a person who is paid the interest. 0.330 2 The payer of the interest— (a) has been supplied with the tax file number of a person who opens a new account after 31 March 2010 and who is paid the interest; and (b) has not received a payment rate election from the recipient of the interest: (c) is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994. 0.330 3 The payer of the interest— (a) has been supplied with the tax file number of a person who is paid the interest; and (b) has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.390 or 0.380 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.330 payment rate. 0.330 3B For a person who chooses the payment rate of 0.390 before 1 April 2010, the payer of the interest— (a) has been supplied with the tax file number of the person; and (b) has received a payment rate election from the person. 0.380 4 The payer of the interest— (a) has been supplied with the tax file number of a person who is paid the interest; and (b) has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.330 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.300 payment rate. 0.300 5 The payer of the interest— (a) has been supplied with the tax file number of a person who has not opened a new account after 31 March 2010 and who is paid the interest; and (b) has not received a payment rate election from the recipient of the interest; and (c) is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994. 0.175 6 The payer of the interest— (a) has been supplied with the tax file number of a person who is paid the interest; and (b) has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.195 or 0.210 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.175 payment rate. 0.175 7 The payer of the interest— (a) has been supplied with the tax file number of a person, other than a trustee, who is paid the interest; and (b) has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.125 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.105 payment rate; and (c) the recipient has a reasonable expectation at the time of the election that their income for the income year will be $14,000 or less. 0.105 8 The payer of the interest— (a) has been supplied with the tax file number of a person who is paid the interest as a trustee of a testamentary trust to which section HC 37 applies; and (b) has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.125 payment rate, and the payer of the interest is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.105 payment rate. 0.105 How to use this table: Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column. Schedule 1 part D clause 3: amended (with effect on 1 April 2008), on 7 December 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Schedule 1 part D clause 3: amended (with effect from 1 April 2008), on 29 May 2008, by section 50(3) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Schedule 1 part D table 2: substituted, on 1 October 2010, by section 32 of the Taxation (Budget Measures) Act 2010 (2010 No 27).