The purpose of UTI is to encourage payment of tax on time and to compensate the State for the period that primary tax remains unpaid.
The UTI rate is an annual rate and is equal to the 90-day accepted bill rate published by the Reserve Bank of Australia plus 8%.
The 90-day bill rate used to calculate UTI is the Reserve Bank's published 90-day bill rate for the month of May in the previous financial year to which the UTI rate will be applied.
The table below shows the past and present UTI rates.
| Financial year | 90-day bill rate | Premium rate | Total UTI rate |
|---|---|---|---|
| 2011–12 | 5.00% | 8% | 13.00% |
| 2010–11 | 4.80% | 8% | 12.80% |
| 2009–10 | 3.14% | 8% | 11.14% |
| 2008–09 | 7.76% | 8% | 15.76% |
| 2007–08 | 6.37% | 8% | 14.37% |
| 2006–07 | 5.87% | 8% | 13.87% |
| 2005–06 | 5.68% | 8% | 13.68% |
| 2004–05 | 5.51% | 8% | 13.51% |