Document ID: chunk:federal_register_of_legislation:C2004A00814:clause:1_1229a:p1
Version: federal_register_of_legislation:C2004A00814
Segment Type: clause
Provision Reference: sch 1 cl 1229A (pt 1/2)
Character Range: 18980–21481

1229A  Interest on debt

 (1) This section applies to a person who:
 (a) receives a further notice given under subsection 1229(3); and
 (b) is not in receipt of a social security payment or a payment of pension or allowance under the Veterans' Entitlements Act 1986.

 (2) If:
 (a) the person has not entered into an arrangement, on or before the final payment day, to pay the outstanding amount of the debt; and
 (b) the Secretary has notified the person in writing that the person will be required to pay interest under this subsection;
the person is liable to pay interest:
 (c) from and including the first day after the final payment day until the debt is wholly paid; and
 (d) at the penalty interest rate;
on the outstanding amount from time to time.

 (2A) Under this section, a person is not liable to pay interest on a debt, or the proportion of a debt, that was incurred because of an administrative error made by the Commonwealth or an agent of the Commonwealth.

 (3) If:
 (a) the person has entered into an arrangement to pay the outstanding amount of the debt; and
 (b) the person has failed to make a particular payment in accordance with the arrangement; and
 (c) the Secretary has notified the person in writing that the person will be required to pay interest under this subsection;
the person is liable to pay interest:
 (d) if the failure occurs on or before the final payment day—from and including the first day after the final payment day until the debt is wholly paid; or
 (e) if the failure occurs after the final payment day—from and including the day after the day in respect of which the last payment in respect of the debt was made until the debt is wholly paid;
at the penalty interest rate, on the outstanding amount from time to time.

 (4) For the purposes of subsections (2) and (3), the final payment day is the latest of the following days:
 (a) the 90th day after the day on which the outstanding amount of the debt was due and payable;
 (b) the 28th day after the date of the further notice given under subsection 1229(3);
 (c) if a request for review has been made within 90 days after the receipt of a notice issued under subsection 1229(1)—90 days after the day on which an authorised review officer makes a decision in respect of the request.

 (5) The interest payable on the outstanding amount of a debt is a debt due to the Commonwealth.

 (6) If:
 (a) interest is payable on the debt; and
 (b) an amount is paid for the purpose of paying the debt and the