The penalty calculation involves two steps:
Step 1
We first calculate using this formula: 2% x 1/A x B x C
Where:
A = Number of days in the month
B = Amount of unpaid levy
C = Number of days the levy is overdue in that month
Step 2
We then determine the final penalty as follows:
- If the amount from step 1 is more than $20, this amount will be the final penalty.
- If the amount from step 1 is less than $20, the final penalty will either be $20 or 30% of the unpaid levy, whichever is less.
Your levy of $300 for January 2024 is due on 19 February 2024 and you paid on 5th March 2024.
Note: Though the levy is due on 19 February 2024, the penalty applies from 1 February 2024.
Step 1: Initial calculation
|
A
(Days in the month)
|
B
(Amount of unpaid levy)
|
C
(Days late)
|
Calculated amount
|
February 2024
|
29
|
$300
|
29
|
2% x 1/29 x $300 x 29 = $6
|
March 2024
|
31
|
$300
|
4
|
2% x 1/31 x $300 x 4 = $0.77
|
Total initial calculated amount: $6 + $0.77 = $6.77
Step 2: Determine the final penalty
Since $6.77 is less than $20, we compare:
- $20
- 30% of unpaid levy: $90 (30% of $300)
Final penalty: $20 (the lesser of $20 and $90)