What is 67P Interest?
67P is interest that is payable pursuant to section 67P of the Queensland Building Services Authority Act 1991.
67P interest is 10% plus the 90 day bank bill rate compounded daily.
It does not matter what your contract says about interest on late payments unless the interest specified in the contract is more than you would get pursuant to section 67P.
For example, if the contract specifies interest at 10% is payable on late payments, you would get your interest under section 67P because the interest in the contract is less than the 67P interest.
Because the 90 day bank bill rate changes each day the calculation is complex and tedious which is why we built this site.
What does it cost
Calculating 67P interest for small and average calculations is free but you will need to sign in.
The advantages of 67P Interest
Because 67P interest is now so well known it is a strong incentive to pay on time.
This makes it a very good tool to use that is not as confrontational or expensive as a BIF application.
It is also much cheaper than going to a debt collector or a lawyer.
Who is eligible
In order to be eligible to claim 67P interest you must be owed a payment pursuant to a building contract as defined in the QBCC Act that has not been paid on time.
You can also claim 67P interest on money that has been paid but payment was late.
If you are a subcontractor working for a builder on a domestic project you are able to claim 67P interest.
It also applies to commercial work.
The work you performed must be Building Work
as defined in the QBCC Act.
If you want more information about administering contracts and getting paid then you should consider doing the Building Industry Survival Course.
The 90 day bank bill rate is a historical statistic of the financial markets.
It is calculated as the median of the bids received by the Reserve Bank of Australia from brokers wishing to purchase 90 day bank bills.
That rate is published at the earliest after 11:00am on the next business day after the last day of trading.
It is not published on weekends or public holidays.
That is why nobody can tell you what the rate will be in the future and the reason that the calculation will not include today or any day in the future.
The wrong way to calculate the interest
The correct way to calculate the interest is as calculated on this site.
The wrong way is the way that most people would calculate it where they find out the rate at the start of the period, multiply that by the number of days and divide it by 365.
That is a simple interest calculation based on a single rate that is not the methodology applied by the courts so far.
You must perform the calculation for each day and use the rate for each day while compounding the interest.
How to claim the interest
For information about how to claim 67P interest you need to sign up.
The rate changes daily so it is not a case of finding out the rate for one day and multiplying that rate by the number of days. You have to calculate the interest for each day using the interest rate for that day.
To make life easy we have prepared an interest calculator. If you want to use the free calculator then you need to sign up.
Privacy of information
This is a privately owned and operated web site.
Information gathered within the 67P interest component is used solely for the purposes of administering the 67P component.
Your information is not shared with or sold to any other entity.
Your information is not made available to anyone else in any other part of this web site.
Your information is not used for any other purpose in this web site.