NSW Local Court Pre-Judgment Interest Calculator

In proceedings for the recovery of money (including any debt or damages or the value of any goods), the court may include interest in the amount for which judgment is given, (i.e - "pre-judgment debt'). The Court's discretionary power to award pre-judgment interest is established in section 100 of the Civil Procedure Act 2005, however practitioners or litigants should undertake their own research the legal basis on which interest may be claimed as Netlaw cannot and does not provide legal advice and does not guarantee or warrant the accuracy of information and references on this site. Be that is it may, practitioners may note that the said regulations provide the Court with descretion to award interest on a sum ( in whole or in part) from the date the cause of action arose until the date of judgment. Netlaw provides an interest rate calculator designed specifically for legal practitioners to use in civil debt claims in Court but does not take responsibility for its accuracy or human error in using the calculator. We note that whilst the NSW Local Court has the power to determine the rate of interest to be awarded in any civil claim, the practice of the Court is to award pre-judgment interest at the rate agreed upon by the the Discount and Interest Rate Harmonisation Committee established following a referral by the Council of Chief Justices:

1. In respect of the period from 1 January to 30 June in any year – the rate that is 4% above the cash rate last published by the Reserve Bank of Australia before that period commenced and
2. In respect of the period from 1 July to 31 December in any year – the rate that is 4% above the cash rate last published by the Reserve Bank of Australia before that period commenced.

Practitioners are referred to the Practice Notes of the NSW Local Court for further information.

Should you seek an Order for pre-judgment interest calculated in accordance with a contractual obligation instead , or interest calculated in accordance to a different rate than that prescribed by the Local Court or Small Claims Tribunal, we are working on an interest calculator which will be ready soon. Whilst Netlaw is not in a position to offer legal advice and does not offer legal advice, practitioners will no doubt be aware of s.100(3) of the CPA 2005 which expressly does not authorise the awarding of interest on top of interest already claimed. Practitioners will also no doubt be aware that in the NSW Local Courts and Small Claims Tribunal, interest cannot be claimed on an amount less than A$1000.00 as Reg.36.7(2) of the Uniform Civil Procedure Rules 2005 directly prohibits the Court from awarding interest on claims less than $1000.00.