Document ID: chunk:federal_register_of_legislation:C2023C00380:clause:11_43e:p2
Version: federal_register_of_legislation:C2023C00380
Segment Type: clause
Provision Reference: sch 11 cl 43E (pt 2/2)
Character Range: 366671–368401

repayment is the amount of the debt that the Secretary believes would be recovered under this Part in a year if subsection (4) did not apply in relation to the debt.
interest is the annual rate of interest specified by the Minister in a written notice.
repayment period is the number of years needed to repay the unpaid amount if repayments equal to the annual repayment were made each year.
Example:
Facts: Terry owed a debt of $8,000 to the Commonwealth. He has repaid $2,000 with the remaining debt being $6,000.
 Terry, with the assistance of his mother, offers to make a single payment of $4,700 in full satisfaction, leaving $1,300 of the debt unpaid. Without Terry's mother's assistance, Terry can only pay fortnightly instalments amounting to $1,200 a year and, at that rate, would take 5 years to pay the remaining $6,000.
 Assume that the Minister has specified an interest rate of 10%.
Result: The present value of the unpaid amount of $6,000 to be repaid in 5 years at a 10% interest rate is worked out as follows:

 As the proposed payment of $4,700 is more than the present value of the unpaid amount (which is $4,548 as shown), and as the other conditions in subsection (5) apply, the Secretary may accept Terry's offer and make an agreement with him as described in subsection (4).
 If the Secretary makes the agreement, the Secretary must, in accordance with subsection (4), waive the remaining $1,300 of the debt (being the difference between the unpaid amount of $6,000 and the agreed amount of $4,700).

Notice is a disallowable instrument
 (7) A notice described in the definition of interest in subsection (6) is a disallowable instrument for the purpose of section 46A of the Acts Interpretation Act 1901.