How to process statutory interest on dividends

When to Pay Statutory Interest

The below hyperlink to the Corporations Act 2001 explains when statutory interest is paid:

http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s563b.html

The Below hyperlink to the Act notes the prescribed rate of interest to be applied to the claims.

http://www5.austlii.edu.au/au/legis/cth/consol_reg/cr2001281/s5.6.70a.html

How to process Statutory Interest only distribution

To pay a statutory interest dividend:

1. Open the Creditor Register

Navigate to Financials (tab) > Creditors > Double-click on a creditor class

The creditor register appears.

2. Select the "All & Stat. Interest" creditor class filter

3. Enter the Statutory interest rate

Click on Stat. Interest Calculator tab and confirm the rate.

The system stores a prescribe rate (currently at 8%). The prescribed rate is defined in the Corporations Act 2001. http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s563b.html.

4. Enter the Date range
The system defaults the From Date (usually the job start date including job history) to the End Date (today).

5. Click Calculate

6. Pay Stat. Interest

Combined Dividend and Statutory Interest distribution

Follow steps 3, 4, 5 above.

6. Enter the Dividend c/$ and Total details in General and Dividends sub tab.

7. Click Dividend to propose and pay the dividend

Also See:

The statutory interest calculation