Payments, interest & penalties

Direct debit is the most convenient way for our existing clients to pay their liability after lodging returns or transactions in our online system, OSRconnect.

You do have other payment options, including paying by instalments.

You should also know about how unpaid tax interest and penalties are applied, and how refunds are issued.

Payment options

You have different payment options when:

These payment options, which are shown on assessment notices and lodgement confirmations, include:

  • Visa or MasterCard using BPOINT or by calling 1300 803 545—payments must be more than $10 and less than $50,000. A surcharge of 0.4% will be applied.

    See the BPOINT terms and conditions.

    Definitions and interpretations

    • 'We' and 'us' means the Office of State Revenue (Queensland).
    • 'You' and 'your' means the legal entity or entities using this site.
    • 'This site' means the equipment, programs and services we provide to allow you to access our information.

    Terms of agreement

    • The Office of State Revenue is part of Queensland Treasury, operated by the State of Queensland.
    • Your access to the BPOINT online payment system is conditional upon your acceptance and compliance with these terms and conditions.
    • The terms and conditions of this agreement include the terms and conditions in our privacycopyright and disclaimer statements.
      • You also agree that we will not be liable, and to indemnify us, for a claim or demand made by a third party due to, arising out of or in connection with, your breach of these terms and conditions or your infringement of any rights of a third party.
    • Your use of, and/or access to, this site constitutes your agreement to these terms and conditions.
    • We reserve the right to change or discontinue these terms and conditions or any feature at any time, including content, hours of availability and equipment required for access.
    • In using our services, you agree to comply with the terms and conditions imposed by your bank and BPOINT, and pay the amounts and associated fees in relation to the transactions you authorise on this site.
      • While the payment service provides a payment reference number acknowledging your payment, your financial institution may still decline the transaction. The provision of a payment reference number does not mean that payment of your liability has been finalised.
      • If a payment is declined, you will need to contact your financial institution.
    • All payments made before 5.30pm AEST will be processed on the same day. Payments made after 5.30pm AEST will be processed the following day.
    • You are responsible for correctly entering all requested payment information when paying your bill. If the information you provide is incorrect, it may result in your bill remaining unpaid.

    Security and site requirements 

    • Once you access the BPOINT site, SSL/TLS will protect your transaction using high-strength 128-bit encryption. If you are using an older web browser, the strength of the encryption may be lower, usually 40-bit encryption. We recommend that you upgrade your browser to its latest version.
    • We do not promise that your access to this site will be uninterrupted (except to the extent that it is implied by law). We will try to ensure access during the hours published.
    • We will not be liable to you or third parties for interruptions to the service beyond our control including, but not limited to problems with:
      • telecommunication services
      • your internet service provider
      • your hardware or software.
    • We will not be liable to you or third parties if an interruption to this service causes delays in the processing of payments or the delivery of services.

    Disputes

    • Any dispute arising out of or in connection with this agreement (the 'dispute') shall be resolved as follows:
      • The parties shall first refer the dispute to mediation by a mediator approved by the Queensland Law Society who is agreed to by the parties; or failing agreement, appointed by the President of the Society, on the terms of the standard mediation agreement approved by the society.
      • The reference shall commence when either party gives written notice to the other, specifying the dispute and requiring its resolution under this provision.
      • Any information or documents obtained through or as part of the reference under this provision shall not be used for any purpose other than the settlement of the dispute under this provision.
      • If the dispute is not resolved within 21 days of the commencement of the reference under this provision, either party may then (subject to the following subsection), commence proceedings in any court of competent jurisdiction.
      • Nothing in these terms or conditions prevents a party from commencing court proceedings relating to any dispute at any time where that party is seeking urgent interlocutory relief.

    Other terms

    • This agreement shall be governed by and interpreted according to the laws of the State of Queensland, Australia.
    • This document constitutes the whole agreement between you and us, and supersedes all prior representations, agreements, statements and understandings, whether verbal or in writing.
    • If you have any questions regarding these terms and conditions, please contact us.
  • BPAY—contact your bank or financial institution to make payments from your cheque or savings account. See www.bpay.com.au for more information
  • Direct payment—registered self assessors can set this up through OSRconnect (our online system). To find out how, view the Set up directs payment procedure. If you don’t use OSRconnect, complete a direct debit request form instead.
  • EFT—using the following details

    Account name: Office of State Revenue Collection Account
    Account number: 1000 0935
    BSB: 064-013
    Bank: Commonwealth Bank of Australia
    Branch: Queensland Government Banking Centre
    Reference: [This is the payment reference code or transaction number as shown on your lodgement confirmation statement, assessment notice or debt recovery letter.]

Note: You must use the correct payment reference code—if you don’t, your payment may not be processed correctly and unpaid tax interest (UTI) or penalties may apply.

Registered self assessors must apply for approval from the Queensland Law Society (QLS) before making EFT payments.

  • Cheque or money order—you must
    • include a printout of the assessment notice or lodgement confirmation page for each transaction being paid
    • pay by cleared funds (e.g. bank cheque, credit union’s or building society’s own cheque, solicitor’s or accountant’s trust account cheque)
    • make your cheque payable to ‘Commissioner of State Revenue’
    • post your cheque to the Office of State Revenue.

Note: Mail delivery times can affect when your cheque is received by our office—this may result in unpaid tax interest.

Paying by instalments

You can apply for a payment arrangement to pay your liability by instalments, but we will only allow this in exceptional circumstances. This is decided on a case-by-case basis, when you can prove that paying the full amount at the required time will cause you severe financial hardship.

See the payment arrangement terms and conditions.

  • You must pay all instalments on time.
  • Late payment interest will continue to accrue on the unpaid amount until the debt is repaid in full.
  • You must agree to meet all other tax obligations in future.
  • You must pay all instalments by direct debit from your bank account. You must maintain sufficient funds in your account to guarantee payment of each instalment on the due date.
  • If the payment due date (the original due date for payment of the liability) has passed, you must pay at least 20% of the debt when you submit an application for payment by instalment (in some cases, we may not require this).
  • Your application form must be complete and have relevant documents attached—if not, your instalment application will be rejected and recovery action will continue.
  • You must notify us of any significant change in your business/financial affairs (good or bad) that affects your ability to pay. If your position changes and you are able to repay the debt, you must pay off the debt immediately.
  • The Commissioner will regularly review the arrangement and may decide to increase the instalment amounts.
  • You must be financially solvent. If during the arrangement period you become insolvent, you must notify us immediately. The Commissioner may ask for evidence of this at any time.
  • If a statutory charge is registered on your property, you must pay all associated costs.
  • The Commissioner may, at any time, end the arrangement (by notifying you in writing).
  • If the Commissioner ends the arrangement, any outstanding amount must be paid immediately.
  • The Commissioner’s decision about extending the time for paying a tax law liability or ending a payment arrangement is final.

See section 34 of the Taxation Administration Act 2001 for more information.

How to apply

Complete the relevant application for a payment arrangement form for:

If there are 2 or more debtors, each debtor must complete a separate application form.

You must include with your completed application:

  • photocopies of your last 4 pay slips or payment advice slips
  • copies of bank statements/accounts over the last 3 months
  • a summary of your circumstances outlining why you are unable to pay the debt in full
  • a direct debit request form.

If you are self-employed, you must also provide:

  • copies of balance sheets and profit and loss statements for the last 3 years
  • a statement of the assets and liabilities of the trust, company or business
  • a cash flow statement for the previous 6 months
  • cash flow projections for the next 6 months.

Post your completed forms and all relevant documents to:

Office of State Revenue
GPO Box 139
Brisbane Qld 4001.

Unpaid tax interest and penalties

Under tax administration laws, interest applies when tax is not paid on time. Penalty tax may also apply.

We may also prosecute offences such as:

  • failing to comply with a notification or lodgement requirement
  • knowingly providing false or misleading documents
  • obstructing the Commissioner or investigators.

 We can also impose interest and penalties to unpaid and understated royalties.

Unpaid tax interest

If tax is not paid by its due date, unpaid tax interest (UTI) will accrue on a daily basis until the tax, related penalties and fees, and accumulated interest are paid in full.

Interest may also apply if a document is not lodged on time.

The UTI rate is 10.01% for the 2016–17 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%.

If UTI has already accrued when we make an assessment, your notice will include the full amount of UTI (calculated on a daily basis) that applied at the date the assessment issued. After the issue date, UTI will be calculated and applied each Sunday until all the tax and interest is paid in full.

UTI accrues after the tax is due. The UTI start date will depend on the type of assessment and when the assessment is made.

Circumstances

UTI start date (generally)

Information or lodgement requirement not complied with

The day after the assessment due date, minus the number of days of non-compliance

Reassessment

The date of the original assessment

Other

The day after the assessment due date

Section 54(4) of the Taxation Administration Act 2001 outlines the exact method of calculating the UTI start date.

If you have outstanding tax and are accruing UTI, any payments you make will go towards the UTI first.

Our calculators will help you to work out how much UTI you owe. You must include all UTI when you pay your tax:

In exceptional circumstances, we may remit all or part of the UTI.

For more information:

Penalty tax

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. This can increase 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 partial payments will first be used for penalty tax before being applied to the original amount.

In certain circumstances, we may decide to reduce the penalty tax.

For more information, read these public rulings:

 

Refunds

Within specific timeframes, you may be entitled to a refund if:

  • your liability is reassessed at a lower amount
  • you overpay tax.

If you want your refund paid by electronic funds transfer (EFT), complete the refund by EFT application form and submit it with your refund application.

Instead of giving you a refund, we may decide to:

  • use the amount for any outstanding tax liability you have
  • hold the amount to use against a liability that you are expected to incur during a specific period.

If you apply for a refund in relation to tax paid by someone else, you must pass the refund amount on to that person. If you do not pass the refund on, the amount will have to be repaid with interest and possible penalties.

Contact us if you think your liability is incorrect.