Background
Pre-judgment and post-judgment interest rates have been harmonised to be consistent with the recommendations of the Discount and Interest Rate Harmonisation Committee (the DIRH Committee). The DIRH Committee was established following a referral by the Council of Chief Justices of Australia and New Zealand (the Council).
The rules and practice notes distinguish between pre and post-judgment interest rates. Two sets of rates were recommended by the DIRH Committee to allow for a difference between the rate for court-awarded pre-judgment interest, and the rate for post-judgment interest to accrue.
The harmonised rules cover the following topic areas regarding interest rates:
- Interest up to judgment
- Interest on judgment
- Pre-judgment interest rate
- Post-judgment interest rate
Harmonised Interest Rates and Lower Courts
The harmonised rules have been adopted in the lower courts of most jurisdictions. The State courts, with the exception of Victoria, have determined their applicable interest rates by reference to the DIRH Committee’s recommendations. In Victoria, interest rates are determined by reference to the Penalty Interest Rate Act 1983 (Vic).
Implementation of the harmonised rules
The relevant rules, interest rates and practice notes for each jurisdiction are as follows:
Jurisdiction | Pre-Judgment Interest | Post-Judgment Interest
|
Federal Court of Australia | Section 51A of the Federal Court of Australia Act 1976 (Cth)
| Section 52 of the Federal Court of Australia Act 1976 (Cth) Rate: Rule 39.06 of the Federal Court Rules 2011 (Cth) |
The Federal Court of Australia’s current practice note is Interest on Judgments Practice Note (GPN-INT). | ||
Federal Circuit and Family Court of Australia | For the rate of interest – Rule 10.17 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth). For the date from which interest is payable, see paragraphs 87(11)(b), 90KA(b) and subsection 117B(1) of the Family Law Act 1975 (Cth). | |
No relevant practice note. See information on Federal Circuit and Family Court of Australia website on Rate of Interest. | ||
Australian Capital Territory | Rule 1619 of the Court Procedure Rules 2006 (ACT) Rate: Schedule 2 of the Court Procedure Rules 2006 (ACT) | Rule 1620 of the Court Procedure Rules 2006 (ACT) Rate: Schedule 2 of the Court Procedure Rules 2006 (ACT) |
No relevant practice note. | ||
New South Wales | Section 100 of the Civil Procedure Act 2005 (NSW)
| Section 101 of the Civil Procedure Act 2005 (NSW) Rate: Rule 36.7 of the Uniform Civil Procedure Rules 2005 (NSW) |
Supreme Court Practice Note SC Gen 16 District Court Practice Note DC (Civil) No. 15 Local Court Practice Note Civil Civ 1 - Part H | No relevant practice note. | |
Northern Territory | Section 84 of the Supreme Court Act 1979 (NT) This gives the Court discretion to apply interest between the cause of action and judgment. | Section 85 Supreme Court Act 1979 (NT) Rule 59.02(3) of the Supreme Court Rules 1987 (NT) This regulation sets the rate to be the same as that applicable to the Federal Court of Australia. |
No relevant practice note. | ||
Queensland | Section 58 of the Civil Proceedings Act 2011 (Qld) Rate: See comment below. | Section 59 of the Civil Proceedings Act 2011 (Qld) Rate: Refer to practice notes.
|
The interest rate is applied at the Court’s discretion. However, the practice directions providing the rate of post-judgment interest also provide that Registrars, when entering default judgment, are to use a rate of 4% above the Reserve Bank of Australia’s rate (i.e. the rate that the Committee recommended for pre-judgment interest). | Supreme Court Practice Direction 2013/07 - Interest Rates
District Court Practice Direction - 2013/06 - Interest Rates
Magistrates Court Practice Direction - 2013/15 - Interest Rates | |
South Australia | Rule 182.3 of the Uniform Civil Rules 2020 (SA) | Rule 185.1 of the Uniform Civil Rules 2020 (SA) |
No relevant practice direction. | ||
Tasmania | Section 5A(2) of the Supreme Court Rules 2000 (TAS) | Section 5A(3) of the Supreme Court Rules 2000 (TAS) |
No relevant practice note. | ||
Victoria | Section 60(1) of the Supreme Court Act 1986 (Vic) The rate to be fixed is set under Section 2 of thePenalty Interest Rates Act 1983 (Vic) Rate: List of Penalty Interest Rates fixed by the Attorney-General | Section 101 of the Supreme Court Act 1986 (Vic) The rate to be fixed is set under Section 2 of the Penalty Interest Rates Act 1983 (Vic) Rate: List of Penalty Interest Rates fixed by the Attorney-General |
No relevant practice note. | ||
Western Australia | Section 32 of the Supreme Court Act 1935 (WA)
| Rate: Regulation 4 of the Civil Judgments Enforcement Regulations 2005 (WA) |
No relevant practice note. | ||