Taxation Administration Act 1953

The shortfall interest charge applies to shortfalls of income tax, petroleum resource rent tax, excess non‑concessional contributions tax, Division 293 tax, Division 296 tax, diverted profits tax, Laminaria and Corallina decommissioning levy, Australian IIR/UTPR tax, Australian DMT tax or news media bargaining charge that are revealed when the Commissioner amends your assessment.

The shortfall interest charge also applies if an amendment of your assessment by the Commissioner reveals that excessive tax offset refunds have been credited to you and you are liable to pay the amount of the excess.

The charge is applied at a uniform rate that is lower than the general interest charge rate.

The Commissioner has a discretion to remit shortfall interest charge.