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What is the prevailing late payment interest rate for non-rental contracts?

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Updated by SLA
 Period  Prevailing Late Payment Interest Rate 
With effect from 1 Feb 2020 to 31 Mar 2021. (Rate applies only to non-rental arrears that are due between 1 Feb 2020 and 31 Mar 2021, and are outstanding as at or after 1 Aug 2020.  The rate applies to interest accrued between 1 Feb 2020 and 31 Mar 2021).5.0% per annum, subject to a minimum of $3. 

With effect from 1 Apr 2021 to 31 Mar 20235.5% per annum, subject to a minimum of $3. 
With effect from 1 Apr 2023 to 30 Sep 20237.7% per annum, subject to a minimum of $3.
With effect from 1 Oct 2023 to 30 Sept 20248.1% per annum, subject to a minimum of $3.
With effect from 1 Oct 2024 to 31 Mar 20258.0% per annum, subject to a minimum of $3.
With effect from 1 Apr 2025 to 30 Sept 20257.2% per annum,  subject to a minimum of $3.

 

Illustration 

LPI computation for an outstanding non-rental arrears of $4,000 due to SLA since 1 April 2025 and paid on 1 October 2025 is as follows:

Amount in ArrearsStart DateEnd DateLPI Rate to ApplyComputation of LPI for Period
from 1 Apr 2025 to 30 Sept 2025
$4,0001-Apr-2530-Sep-257.2%LPI = 7.2% x $4,000 x (183/365 days)
= $144.39

This information is sourced from SLA

Topics:
Late Payment InterestNon-Rental Contracts
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