Document ID: chunk:federal_register_of_legislation:F2024L00195:reg:10:p1
Version: federal_register_of_legislation:F2024L00195
Segment Type: reg
Provision Reference: reg 10 (pt 1/2)
Character Range: 8735–11259

10  Unclaimed money—interest payable
 (1) This section applies if:
 (a) a life company paid unclaimed money to the Commonwealth under section 216 of the Act; and
 (b) some or all of the unclaimed money is paid to the life company under subsection 216(7) of the Act.
 (2) For the purposes of paragraph 216(7A)(a) of the Act, this section sets out how to work out the amount of interest that is to be paid in relation to the payment made to the life company.
 (3) If the life company paid the unclaimed money to the Commonwealth in more than one payment, work out the interest separately for each payment to the Commonwealth.
 (4) To avoid doubt, if the Commonwealth pays the unclaimed money to the life company in more than one payment, work out the interest separately for each payment to the life company.
Example: A life company pays $100 of unclaimed money to the Commonwealth on day 1, and $200 on day 2. On day 3, the Minister causes $175 of unclaimed money to be paid to the life company, consisting of:
(a) the $100 of unclaimed money paid to the Commonwealth on day 1; and
(b) $75 of the unclaimed money paid to the Commonwealth on day 2.
 Under subsection (3), interest for the $100 and the $75 are worked out separately.
 On day 4, the Minister causes $125 of unclaimed money to be paid to the life company, being the remainder of the unclaimed money paid to the Commonwealth on day 2. Under subsection (4), interest for the $125 is worked out separately from the interest for the $75 mentioned in paragraph (b) of this example.

Meaning of interest period
 (5) For the purposes of this section, the interest period is the period that:
 (a) starts on the later of:
 (i) 1 July 2013; and
 (ii) the day when the life company paid the unclaimed money to the Commonwealth; and
 (b) ends on the 14th day after the day on which the Minister causes the unclaimed money to be paid to the life company.

Interest
 (6) Work out the amount of interest by adding together the interest for each financial year that occurs wholly or partly during the interest period.
 (7) Work out the interest for each financial year using the following formula:
where:
amount means the amount of the unclaimed money paid to the life company plus the interest (if any) worked out for each earlier financial year that occurs wholly or partly during the interest period.
days interest payable means the number of days in the financial year that occur during the interest period.
interest rate has the meaning given by subsection (9).
 (8) If the