Document ID: chunk:federal_register_of_legislation:F2024C00882:reg:107
Version: federal_register_of_legislation:F2024C00882
Segment Type: reg
Provision Reference: reg 107
Character Range: 387813–389225

107  Tolerances relating to amounts payable etc
 (1) For section 181 of the Code:
 (a) if the daily or other percentage rate to be used for the calculation of an amount of interest contains more than 4 decimal places, the amount of interest is within permissible tolerances if the rate used for the calculation is rounded‑off to not less than 4 decimal places (so long as it is correct to the nearest fourth decimal place); and
 (b) an amount charged, payable or calculated that includes a fraction of a cent is within permissible tolerances if it is rounded‑off to the nearest whole cent; and
 (c) if the credit provider is authorised by a law of the Commonwealth to charge (or obtain reimbursement in respect of) an amount of duty in the nature of receipts or financial institutions duty that is not within a permissible tolerance under paragraph (a) or (b), that amount is within permissible tolerances.
 (2) For section 181 of the Code, an amount which depends for its accuracy on an interest charge that is correct only because of a permissible tolerance under subsection (1) (and is not inaccurate for any other reason) is within permissible tolerances.
Note: Section 181 of the Code provides that all amounts charged, payable or calculated under or in connection with a credit contract, mortgage, guarantee or consumer lease comply with the Code if they are within tolerances allowed by the regulations.