Pre-Judgment Interest Calculator
- Arnold Shields
- Oct 1, 2010
- 2 min read
Updated: Jun 18
Accurate Interest Calculations Based on the Latest Court Practice Notes
From 1 July 2010, the method for calculating pre-judgment interest in Australia changed. Interest is now based on the Reserve Bank of Australia (RBA) Cash Rate plus 4%, with uniform application across Australian jurisdictions. These changes have already been reflected in the NSW Courts Practice Notes and Federal Court Practice Notes.
To help you navigate these changes with ease, we’ve developed a free online Pre-Judgment Interest Calculator. It allows users to calculate interest accurately and quickly based on the applicable rates for each period.
How Interest Is Calculated
The interest rate changes twice yearly, and is calculated on the following basis:
From 1 January to 30 June – based on the RBA Cash Rate last published before 1 January, plus 4%
From 1 July to 31 December – based on the RBA Cash Rate last published before 1 July, plus 4%
This standardised approach ensures clarity in calculating compensation amounts in litigation and settlement cases.
Example Interest Rates (Selected Periods)
Period Start | RBA Cash Rate | Pre-Judgment Interest Rate |
1 Jan 2010 | 3.75% | 7.75% |
1 Jul 2010 | 4.50% | 8.50% |
1 Jan 2011 | 4.75% | 8.75% |
(See calculator for full historical rates) |
Why Use Our Calculator?
Complies with court practice notes
Historical data built-in (from 1991 onwards)
Transparent, easy-to-use interface
Supports professionals, litigants, and legal advisors
Stay Updated
We regularly update the calculator and rate tables in accordance with changes to the RBA cash rate and judicial guidance. If you have any questions about calculating pre-judgment interest or how it applies in your case, our team at Dolman Bateman is here to help.
📞 Need professional advice? Contact us today for tailored guidance.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
