In Australia, Plaintiffs can be awarded interest to compensate for the time it took Defendants to pay the outstanding amount. The interest awarded can be pre-judgment or post-judgment, and each State and Territory has its own legislation and rules for calculating interest. This article will examine the interest rates for Victoria, Queensland, and New South Wales.
In Victoria, interest on a debt begins to accumulate the day after the Originating Motion is filed. The Supreme Court Act 1986 (Vic) at sections 58 and 60 provide the statutory power to award interest. Section 58 states that interest should be awarded unless good cause is shown, in accordance with section 2 of the Penalty Interest Rates Act 1983 (Vic). According to Justice Tadgell in the case Dimos v Willetts and Anor [2000] VSCA 154, section 58 allows interest to be awarded in favor of a party who recovers in the proceeding, and the interest award runs from the time when the payment demand was made.
In Queensland, interest begins to accumulate when the debt arises. The Registrar applies the interest rate when giving judgment as per rule 283 of the Uniform Civil Procedure Rules 1999 (QLD). Rule 283(2)(a) of the Uniform Civil Proceeding Rules 1999 (QLD) states that if interest is claimed, interest should be calculated to the date of judgment at the rate specified in the claim or in a practice direction for the Civil Proceedings Act 2011 (QLD), section 58. Pre-judgment rates were set by individual courts before 1 September 2012, as per section 47 of the Supreme Court Act 1995 (QLD).
In New South Wales, the pre-judgment interest rate is awarded by the Court in accordance with sections 100 of the Uniform Civil Procedure Act 2005 (NSW), and the post-judgment interest is awarded by the Court as per section 101 of the Uniform Civil Procedure Act 2005 (NSW). Pursuant to section 100 of the Uniform Civil Procedure Act 2005 (NSW), the Court can include interest in the amount for which judgment is given and can be calculated at any rate the Court thinks fit on the entire or any portion of the money from the time the debt arose. Interest is payable on so much of the amount of a judgment in accordance with section 101 of the Uniform Civil Procedure Rules 2005 (NSW), and it should be calculated at the prescribed rate or as the Court sees fit from the date of judgment or a later date set by the Court.
Overall, interest rates in Victoria, Queensland, and New South Wales vary in terms of when interest begins to accumulate and how it is calculated. It is important to know the relevant legislation and rules that apply when seeking to claim interest in a legal proceeding in Australia.
If you have any further questions, please contact our Legal-Litigation Lawyer Nikola Fratric on (03) 9999-1122 or by email nik.fratric@adclegal.com.au.