Commonwealth Consolidated Acts Commonwealth Consolidated ActsA New Tax System (Family Assistance) (Administration) Act 1999
1 After paragraph 77(1)(e)
Insert:
(ea) the effect of sections 78 and 78A; and
2 Subsections 77(3) and (4)
Repeal the subsections, substitute:
(3) The Secretary may give more than one notice under subsection ( 1) in relation to a person and a debt of the person.
3 Sections 78 to 79A
Repeal the sections, substitute:
78 Interest charge--no repayment arrangement in effect
(1) If:
(a) a notice is given to a person under subsection 77(1) in relation to a debt; and
(b) an amount (the unpaid amount ) of the debt remains unpaid at the end of the day (the due day ) on which the debt is due to be paid; and
(c) at the end of the due day, there is no arrangement in effect under section 91 in relation to the debt;
then the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 3), for each day in the period described in subsection ( 2).
Note: For exemptions, see sections 78D and 78E.
(2) The period starts at the beginning of the day after the due day and ends at the end of the earlier of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the unpaid amount;
(ii) interest charge on any of the unpaid amount;
(b) the day before the first day, after the due day, on which the person makes a payment under an arrangement under section 91 in relation to the debt.
(3) The interest charge for a day in the period described in subsection ( 2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the unpaid amount;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 78C.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 78B.
78A Interest charge--failure to comply with or termination of repayment arrangement
(1) If:
(a) an arrangement is in effect under section 91 in relation to a person and a debt; and
(b) the person fails to make a payment under the arrangement;
then the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 3), for each day in the period described in subsection ( 2).
Note: For exemptions, see sections 78D and 78E.
(2) The period starts at the beginning of the day after the day (the due day ) on which the payment was required to be made under the arrangement and ends at the end of the earliest of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt;
(b) the day before the first day, after the due day, on which the person has paid all the payments that have so far become due and payable under the arrangement;
(c) the day before the day the arrangement is terminated under section 91.
(3) The interest charge for a day in the period described in subsection ( 2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the outstanding amount of the debt;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 78C.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 78B.
Repayment arrangement is terminated
(4) If:
(a) an arrangement is in effect under section 91 in relation to a person and a debt; and
(b) the arrangement is then terminated under section 91 on a day (the termination day );
then:
(c) the following amounts (if any) are due and payable on the 14th day after the termination day:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt; and
(d) if, at the end of that 14th day, any of those amounts remains unpaid, the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 6), for each day in the period described in subsection ( 5).
Note: For exemptions, see sections 78D and 78E.
(5) The period starts at the beginning of the day after that 14th day and ends at the end of the earlier of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt;
(b) the day before the first day, after that 14th day, on which the person makes a payment under another arrangement under section 91 in relation to the debt.
(6) The interest charge for a day in the period described in subsection ( 5) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the outstanding amount of the debt;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 78C.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 78B.
78B Other rules for interest charge
When interest charge is due and payable
(1) The interest charge under section 78 or 78A for a day is due and payable to the Commonwealth at the end of that day.
Interest charge is a debt
(2) The interest charge under section 78 or 78A for a day is a debt due to the Commonwealth by the person.
Provisions that do not apply to interest charge debt
(3) Subsection 77(1) does not apply in relation to the debt referred to in subsection ( 2) of this section.
78C What is the interest charge rate ?
(1) For the purposes of sections 78 and 78A, the interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.
(2) The base interest rate for a day depends on which quarter of the year the day is in. For each day in a quarter in column 1 of the table, it is the monthly average yield of 90 - day Bank Accepted Bills published by the Reserve Bank of Australia for the month in column 2 of the table.
Base interest rate | ||
Item | Column 1 | Column 2 |
1 | 1 January to 31 March | the preceding November |
2 | 1 April to 30 June | the preceding February |
3 | 1 July to 30 September | the preceding May |
4 | 1 October to 31 December | the preceding August |
(3) If the monthly average yield of 90 - day Bank Accepted Bills for a particular month in column 2 of the table in subsection ( 2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90 - day Bank Accepted Bills published by the Reserve Bank of Australia before that month.
(4) The base interest rate must be rounded to the second decimal place (rounding .005 upwards).
78D Exemption from interest charge--general
(1) A person is not liable to pay interest charge under section 78 or 78A if on the day before the start of the period in respect of which the person would otherwise have been liable to pay that charge:
(a) the person is receiving instalments of family tax benefit; or
(b) the person is receiving a social security payment; or
(c) the person is receiving a payment of pension or allowance under the Veterans' Entitlements Act 1986 ; or
(d) the person is receiving instalments under the ABSTUDY scheme (also known as the Aboriginal Study Assistance Scheme) that includes an amount identified as living allowance; or
(e) the person is receiving instalments under the Assistance for Isolated Children Scheme; or
(f) the circumstances determined in an instrument under subsection ( 2) apply in relation to the person.
(2) The Minister may, by legislative instrument, determine circumstances for the purposes of paragraph ( 1)(f).
78E Exemption from interest charge--Secretary's determination
(1) The Secretary may determine that interest charge is not payable, or is not payable in respect of a particular period, by a person on the outstanding amount of a debt.
(2) The Secretary may make a determination under this section in circumstances that include (but are not limited to) the Secretary being satisfied that the person has a reasonable excuse for:
(a) failing to enter into an arrangement under section 91 to pay the outstanding amount of the debt; or
(b) having entered an arrangement, failing to make a payment in accordance with that arrangement.
(3) The determination may relate to a period before, or to a period that includes a period before, the making of the determination.
(4) The determination may be expressed to be subject to the person complying with one or more specified conditions.
(5) If the determination is expressed to be subject to the person complying with one or more specified conditions, the Secretary must give written notice of the determination to the person as soon as practicable after the determination is made.
(6) If:
(a) the determination is expressed to be subject to the person complying with one or more specified conditions; and
(b) the person contravenes a condition or conditions without reasonable excuse;
the determination ceases to have effect from and including the day on which the contravention or the earliest of the contraventions occurred.
(7) The Secretary may cancel or vary the determination by written notice given to the person.
78F Guidelines on interest charge provisions
The Minister may, by legislative instrument, determine guidelines relating to the operation of the provisions of this Division dealing with interest charge.
4 Subsection 82(3) ( paragraph ( a) of the definition of debt )
Omit "78", substitute "78B".
5 After subsection 91(1A)
Insert:
(1B) If a payment is required to be made under an arrangement entered into under subsection ( 1) or (1A) before the end of a particular day, the payment must be made before the end of that day.
6 Section 6
Repeal the following definitions:
(a) definition of date of the further debt notice ;
(b) definition of date of the initial debt notice ;
(c) definition of final debt payment day ;
(d) definition of further debt notice .
7 Section 6
Insert:
"interest charge rate" : see section 177.
8 Section 6 (definition of interest exemption determination )
Repeal the definition.
9 Section 6 (definition of penalty interest rate )
Repeal the definition.
10 Section 164
Omit "An administrative charge of $50 is also payable if interest is charged.".
11 Section 165 ( paragraph ( a) of the note)
Omit "section 177", substitute "section 176".
12 Section 165 ( paragraph ( b) of the note)
Repeal the paragraph.
13 Section 173 (heading)
Repeal the heading, substitute:
173 Notices in respect of debt
14 Subsection 173(1) (heading)
Repeal the heading.
15 Paragraph 173(1)(a)
Omit "(the date of the initial debt notice )", substitute "(the date of the notice )".
16 Paragraph 173(1)(e)
Omit "initial debt notice", substitute "notice".
17 After paragraph 173(1)(f)
Insert:
(fa) the effect of sections 174 and 175;
18 Subsection 173(2)
Omit "initial debt notice", substitute "notice".
19 Subsection 173(3)
Repeal the subsection, substitute:
Multiple notices
(3) The Secretary may give more than one notice under subsection ( 1) in relation to a person and a debt of the person.
20 Sections 174 to 180
Repeal the sections, substitute:
174 Interest charge--no debt payment arrangement in effect
(1) If:
(a) a notice is given to a person under subsection 173(1) in relation to a debt; and
(b) an amount (the unpaid amount ) of the debt remains unpaid at the end of the day (the due day ) on which the debt is due to be paid; and
(c) at the end of the due day, there is no debt payment arrangement in effect in relation to the debt;
then the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 3), for each day in the period described in subsection ( 2).
Note: For exemptions, see sections 178 and 179.
(2) The period starts at the beginning of the day after the due day and ends at the end of the earlier of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the unpaid amount;
(ii) interest charge on any of the unpaid amount;
(b) the day before the first day, after the due day, on which the person makes a payment under a debt payment arrangement in relation to the debt.
(3) The interest charge for a day in the period described in subsection ( 2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the unpaid amount;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 177.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 176.
175 Interest charge--failure to comply with or termination of debt payment arrangement
(1) If:
(a) a debt payment arrangement is in effect in relation to a person and a debt; and
(b) the person fails to make a payment under the arrangement;
then the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 3), for each day in the period described in subsection ( 2).
Note: For exemptions, see sections 178 and 179.
(2) The period starts at the beginning of the day after the day (the due day ) on which the payment was required to be made under the arrangement and ends at the end of the earliest of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt;
(b) the day before the first day, after the due day, on which the person has paid all the payments that have so far become due and payable under the arrangement;
(c) the day before the day the arrangement is terminated under section 190.
(3) The interest charge for a day in the period described in subsection ( 2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the outstanding amount of the debt;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 177.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 176.
Debt payment arrangement is terminated
(4) If:
(a) a debt payment arrangement is in effect in relation to a person and a debt; and
(b) the arrangement is then terminated under section 190 on a day (the termination day );
then:
(c) the following amounts (if any) are due and payable on the 14th day after the termination day:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt; and
(d) if, at the end of that 14th day, any of those amounts remains unpaid, the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 6), for each day in the period described in subsection ( 5).
Note: For exemptions, see sections 178 and 179.
(5) The period starts at the beginning of the day after that 14th day and ends at the end of the earlier of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt;
(b) the day before the first day, after that 14th day, on which the person makes a payment under another debt payment arrangement in relation to the debt.
(6) The interest charge for a day in the period described in subsection ( 5) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the outstanding amount of the debt;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 177.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 176.
176 Other rules for interest charge
When interest charge is due and payable
(1) The interest charge under section 174 or 175 for a day is due and payable to the Commonwealth at the end of that day.
Interest charge is a debt
(2) The interest charge under section 174 or 175 for a day is a debt due to the Commonwealth by the person.
Provisions that do not apply to interest charge debt
(3) Subsection 173(1) does not apply in relation to the debt referred to in subsection ( 2) of this section.
177 What is the interest charge rate ?
(1) The interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.
(2) The base interest rate for a day depends on which quarter of the year the day is in. For each day in a quarter in column 1 of the table, it is the monthly average yield of 90 - day Bank Accepted Bills published by the Reserve Bank of Australia for the month in column 2 of the table.
Base interest rate | ||
Item | Column 1 | Column 2 |
1 | 1 January to 31 March | the preceding November |
2 | 1 April to 30 June | the preceding February |
3 | 1 July to 30 September | the preceding May |
4 | 1 October to 31 December | the preceding August |
(3) If the monthly average yield of 90 - day Bank Accepted Bills for a particular month in column 2 of the table in subsection ( 2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90 - day Bank Accepted Bills published by the Reserve Bank of Australia before that month.
(4) The base interest rate must be rounded to the second decimal place (rounding .005 upwards).
178 Exemption from interest charge--general
A person is not liable to pay interest charge under section 174 or 175 if on the day before the start of the period in respect of which the person would otherwise have been liable to pay that charge:
(a) the person is receiving instalments of family tax benefit (within the meaning of the A New Tax System (Family Assistance) Act 1999 ); or
(b) the person is receiving a social security payment (within the meaning of the Social Security Act 1991 ); or
(c) the person is receiving a payment of pension or allowance under the Veterans' Entitlements Act 1986 ; or
(d) the person is receiving instalments under the ABSTUDY scheme (also known as the Aboriginal Study Assistance Scheme) that includes an amount identified as living allowance; or
(e) the person is receiving instalments under the Assistance for Isolated Children Scheme; or
(f) the circumstances prescribed by the PPL rules apply in relation to the person.
179 Exemption from interest charge--Secretary's determination
(1) The Secretary may determine that interest charge is not payable, or is not payable in respect of a particular period, by a person on the outstanding amount of a debt.
(2) The Secretary may make a determination under this section in circumstances that include (but are not limited to) the Secretary being satisfied that the person has a reasonable excuse for:
(a) failing to enter into a debt payment arrangement to pay the outstanding amount of the debt; or
(b) having entered an arrangement, failing to make a payment in accordance with that arrangement.
(3) The determination may relate to a period before, or to a period that includes a period before, the making of the determination.
(4) The determination may be expressed to be subject to the person complying with one or more specified conditions.
(5) If the determination is expressed to be subject to the person complying with one or more specified conditions, the Secretary must give written notice of the determination to the person as soon as practicable after the determination is made.
(6) If:
(a) the determination is expressed to be subject to the person complying with one or more specified conditions; and
(b) the person contravenes a condition or conditions without reasonable excuse;
the determination ceases to have effect from and including the day on which the contravention or the earliest of the contraventions occurred.
(7) The Secretary may cancel or vary the determination by written notice given to the person.
180 Guidelines on interest charge provisions
The PPL rules may prescribe guidelines for the operation of the provisions of this Division dealing with interest charge.
21 Section 181 ( paragraph ( b) of the note)
Omit "sections 177, 179", substitute "sections 176".
22 After subsection 190(1)
Insert:
(1A) If a person is required to make a payment under a debt payment arrangement before the end of a particular day, the person must make that payment before the end of that day.
23 Subsection 193(1) ( paragraph ( b) of the note)
Omit "sections 177, 179", substitute "sections 176".
24 Subsection 194(1) ( paragraph ( b) of the note)
Omit "sections 177, 179", substitute "sections 176".
25 Subsection 1222(2) (table item 16)
Omit "1229A", substitute "1229C".
26 Subsection 1222(2) (table item 17)
Repeal the item.
27 Subsection 1223AA(1) (note)
Repeal the note.
28 Subsection 1224B(1) (note)
Repeal the note.
29 Section 1224C (note)
Repeal the note.
30 Subsection 1224D(1) (note)
Repeal the note.
31 After subsection 1228B(2)
Insert:
(2A) To avoid doubt, the amount added by way of penalty is part of the debt.
32 Subsection 1228B(5)
Omit "section 1229A or 1229AB", substitute "section 1229C".
33 After paragraph 1229(1)(e)
Insert:
(ea) the effect of sections 1229A and 1229B; and
34 Subsections 1229(3) and (4)
Repeal the subsections, substitute:
(3) The Secretary may give more than one notice under subsection ( 1) in relation to a person and a debt of the person.
35 Sections 1229A to 1229C
Repeal the sections, substitute:
1229A Interest charge--no repayment arrangement in effect
(1) If:
(a) a notice is given to a person under subsection 1229(1) in relation to a debt; and
(b) an amount (the unpaid amount ) of the debt remains unpaid at the end of the day (the due day ) on which the debt is due to be paid; and
(c) at the end of the due day, there is no arrangement in effect under section 1234 in relation to the debt;
then the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 3), for each day in the period described in subsection ( 2).
Note: For exemptions, see sections 1229E and 1229F.
(2) The period starts at the beginning of the day after the due day and ends at the end of the earlier of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the unpaid amount;
(ii) interest charge on any of the unpaid amount;
(b) the day before the first day, after the due day, on which the person makes a payment under an arrangement under section 1234 in relation to the debt.
(3) The interest charge for a day in the period described in subsection ( 2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the unpaid amount;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 1229D.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 1229C.
1229B Interest charge--failure to comply with or termination of repayment arrangement
(1) If:
(a) an arrangement is in effect under section 1234 in relation to a person and a debt; and
(b) the person fails to make a payment under the arrangement;
then the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 3), for each day in the period described in subsection ( 2).
Note: For exemptions, see sections 1229E and 1229F.
(2) The period starts at the beginning of the day after the day (the due day ) on which the payment was required to be made under the arrangement and ends at the end of the earliest of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt;
(b) the day before the first day, after the due day, on which the person has paid all the payments that have so far become due and payable under the arrangement;
(c) the day before the day the arrangement is terminated under section 1234.
(3) The interest charge for a day in the period described in subsection ( 2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the outstanding amount of the debt;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 1229D.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 1229C.
Repayment arrangement is terminated
(4) If:
(a) an arrangement is in effect under section 1234 in relation to a person and a debt; and
(b) the arrangement is then terminated under section 1234 on a day (the termination day );
then:
(c) the following amounts (if any) are due and payable on the 14th day after the termination day:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt; and
(d) if, at the end of that 14th day, any of those amounts remains unpaid, the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 6), for each day in the period described in subsection ( 5).
Note: For exemptions, see sections 1229E and 1229F.
(5) The period starts at the beginning of the day after that 14th day and ends at the end of the earlier of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt;
(b) the day before the first day, after that 14th day, on which the person makes a payment under another arrangement under section 1234 in relation to the debt.
(6) The interest charge for a day in the period described in subsection ( 5) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the outstanding amount of the debt;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 1229D.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 1229C.
1229C Other rules for interest charge
When interest charge is due and payable
(1) The interest charge under section 1229A or 1229B for a day is due and payable to the Commonwealth at the end of that day.
Interest charge is a debt
(2) The interest charge under section 1229A or 1229B for a day is a debt due to the Commonwealth by the person.
Provisions that do not apply to interest charge debt
(3) Subsection 1229(1) does not apply in relation to the debt referred to in subsection ( 2) of this section.
1229D What is the interest charge rate ?
(1) For the purposes of sections 1229A and 1229B, the interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.
(2) The base interest rate for a day depends on which quarter of the year the day is in. For each day in a quarter in column 1 of the table, it is the monthly average yield of 90 - day Bank Accepted Bills published by the Reserve Bank of Australia for the month in column 2 of the table.
Base interest rate | ||
Item | Column 1 | Column 2 |
1 | 1 January to 31 March | the preceding November |
2 | 1 April to 30 June | the preceding February |
3 | 1 July to 30 September | the preceding May |
4 | 1 October to 31 December | the preceding August |
(3) If the monthly average yield of 90 - day Bank Accepted Bills for a particular month in column 2 of the table in subsection ( 2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90 - day Bank Accepted Bills published by the Reserve Bank of Australia before that month.
(4) The base interest rate must be rounded to the second decimal place (rounding .005 upwards).
1229E Exemption from interest charge--general
(1) A person is not liable to pay interest charge under section 1229A or 1229B if on the day before the start of the period in respect of which the person would otherwise have been liable to pay that charge:
(a) the person is receiving a social security payment; or
(b) the person is receiving a payment of pension or allowance under the Veterans' Entitlements Act; or
(c) the person is receiving instalments of family tax benefit; or
(d) the person is receiving instalments under the ABSTUDY scheme (also known as the Aboriginal Study Assistance Scheme) that includes an amount identified as living allowance; or
(e) the person is receiving instalments under the Assistance for Isolated Children Scheme; or
(f) the circumstances determined in an instrument under subsection ( 2) apply in relation to the person.
(2) The Minister may, by legislative instrument, determine circumstances for the purposes of paragraph ( 1)(f).
1229F Exemption from interest charge--Secretary's determination
(1) The Secretary may determine that interest charge is not payable, or is not payable in respect of a particular period, by a person on the outstanding amount of a debt.
(2) The Secretary may make a determination under this section in circumstances that include (but are not limited to) the Secretary being satisfied that the person has a reasonable excuse for:
(a) failing to enter into an arrangement under section 1234 to pay the outstanding amount of the debt; or
(b) having entered an arrangement, failing to make a payment in accordance with that arrangement.
(3) The determination may relate to a period before, or to a period that includes a period before, the making of the determination.
(4) The determination may be expressed to be subject to the person complying with one or more specified conditions.
(5) If the determination is expressed to be subject to the person complying with one or more specified conditions, the Secretary must give written notice of the determination to the person as soon as practicable after the determination is made.
(6) If:
(a) the determination is expressed to be subject to the person complying with one or more specified conditions; and
(b) the person contravenes a condition or conditions without reasonable excuse;
the determination ceases to have effect from and including the day on which the contravention or the earliest of the contraventions occurred.
(7) The Secretary may cancel or vary the determination by written notice given to the person.
1229G Guidelines on interest charge provisions
The Minister may, by legislative instrument, determine guidelines relating to the operation of the provisions of this Part dealing with interest charge.
36 Subsection 1230(1) (note 3)
Repeal the note.
37 Subsection 1230A(1) (note 3)
Repeal the note.
38 After subsection 1234(1)
Insert:
(1A) If a person is required to make a payment under an arrangement entered into under subsection ( 1) before the end of a particular day, the person must make that payment before the end of that day.
39 Subsection 3(1) (definition of late payment charge )
Repeal the definition.
40 Section 38 (heading)
Repeal the heading, substitute:
41 Section 38 ( paragraph ( c) of the definition of debt )
Omit "section 40", substitute "section 41B".
42 Section 38
Insert:
"relevant debt" means:
(a) an amount paid under the ABSTUDY Scheme (also known as the Aboriginal Study Assistance Scheme) that should not have been paid; or
(b) an amount paid under the Assistance for Isolated Children Scheme that should not have been paid; or
(c) an ABSTUDY student start - up loan overpayment.
Note: The amount in paragraph ( a) or (b) is a debt under paragraph ( a) of the definition of debt in this section. The amount in paragraph ( c) is a debt under paragraph ( aa) of the definition of debt in this section.
43 Sections 39A, 40 and 41
Repeal the sections, substitute:
40 Notice in respect of relevant debt
(1) If a relevant debt owed by a person to the Commonwealth has not been wholly paid, the Secretary must give the person a notice specifying:
(a) the date on which it was issued (the date of the notice ); and
(b) the reason the debt was incurred, including a brief explanation of the circumstances that led to the debt being incurred; and
(c) the period to which the debt relates; and
(d) the outstanding amount of the debt at the date of the notice; and
(e) the day on which the outstanding amount is due and payable; and
(f) the effect of sections 41 and 41A; and
(g) that a range of options is available for repayment of the debt; and
(h) the contact details for inquiries concerning the debt.
(2) The outstanding amount of the debt is due and payable on the 28th day after the date of the notice.
(3) The Secretary may give more than one notice under subsection ( 1) in relation to a person and a relevant debt of the person.
41 Interest charge--no repayment arrangement in effect
(1) If:
(a) a notice is given to a person under subsection 40(1) in relation to a relevant debt; and
(b) an amount (the unpaid amount ) of the debt remains unpaid at the end of the day (the due day ) on which the debt is due to be paid; and
(c) at the end of the due day, there is no arrangement in effect under section 41F in relation to the debt;
then the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 3), for each day in the period described in subsection ( 2).
Note: For exemptions, see sections 41D and 41E.
(2) The period starts at the beginning of the day after the due day and ends at the end of the earlier of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the unpaid amount;
(ii) interest charge on any of the unpaid amount;
(b) the day before the first day, after the due day, on which the person makes a payment under an arrangement under section 41F in relation to the debt.
(3) The interest charge for a day in the period described in subsection ( 2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the unpaid amount;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 41C.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day: see section 41B.
41A Interest charge--failure to comply with or termination of repayment arrangement
(1) If:
(a) an arrangement is in effect under section 41F in relation to a person and a relevant debt; and
(b) the person fails to make a payment under the arrangement;
then the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 3), for each day in the period described in subsection ( 2).
Note: For exemptions, see sections 41D and 41E.
(2) The period starts at the beginning of the day after the day (the due day ) on which the payment was required to be made under the arrangement and ends at the end of the earliest of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt;
(b) the day before the first day, after the due day, on which the person has paid all the payments that have so far become due and payable under the arrangement;
(c) the day before the day the arrangement is terminated under section 41F.
(3) The interest charge for a day in the period described in subsection ( 2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the outstanding amount of the debt;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 41C.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day: see section 41B.
Repayment arrangement is terminated
(4) If:
(a) an arrangement is in effect under section 41F in relation to a person and a relevant debt; and
(b) the arrangement is then terminated under section 41F on a day (the termination day );
then:
(c) the following amounts (if any) are due and payable on the 14th day after the termination day:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt; and
(d) if, at the end of that 14th day, any of those amounts remains unpaid, the person is liable to pay, by way of penalty, interest charge, worked out under subsection ( 6), for each day in the period described in subsection ( 5).
Note: For exemptions, see sections 41D and 41E.
(5) The period starts at the beginning of the day after that 14th day and ends at the end of the earlier of the following days:
(a) the last day at the end of which any of the following remains unpaid:
(i) the outstanding amount of the debt;
(ii) interest charge on any of the outstanding amount of the debt;
(b) the day before the first day, after that 14th day, on which the person makes a payment under another arrangement under section 41F in relation to the debt.
(6) The interest charge for a day in the period described in subsection ( 5) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the outstanding amount of the debt;
(b) the interest charge from previous days.
Note 1: For interest charge rate see section 41C.
Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day: see section 41B.
41B When interest charge becomes due and payable
The interest charge under section 41 or 41A for a day is due and payable to the Commonwealth at the end of that day.
Note: The interest charge for a day is a debt owed to the Commonwealth: see section 39.
41C What is the interest charge rate ?
(1) For the purposes of sections 41 and 41A, the interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.
(2) The base interest rate for a day depends on which quarter of the year the day is in. For each day in a quarter in column 1 of the table, it is the monthly average yield of 90 - day Bank Accepted Bills published by the Reserve Bank of Australia for the month in column 2 of the table.
Base interest rate | ||
Item | Column 1 | Column 2 |
1 | 1 January to 31 March | the preceding November |
2 | 1 April to 30 June | the preceding February |
3 | 1 July to 30 September | the preceding May |
4 | 1 October to 31 December | the preceding August |
(3) If the monthly average yield of 90 - day Bank Accepted Bills for a particular month in column 2 of the table in subsection ( 2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90 - day Bank Accepted Bills published by the Reserve Bank of Australia before that month.
(4) The base interest rate must be rounded to the second decimal place (rounding .005 upwards).
41D Exemption from interest charge--general
(1) A person is not liable to pay interest charge under section 41 or 41A if on the day before the start of the period in respect of which the person would otherwise have been liable to pay that charge:
(a) the person is receiving instalments under the ABSTUDY scheme (also known as the Aboriginal Study Assistance Scheme) that includes an amount identified as living allowance; or
(b) the person is receiving instalments under the Assistance for Isolated Children Scheme; or
(c) the person is receiving instalments of family tax benefit (within the meaning of the A New Tax System (Family Assistance) Act 1999 ); or
(d) the person is receiving a social security payment (within the meaning of the Social Security Act 1991 ); or
(e) the person is receiving a payment of pension or allowance under the Veterans' Entitlements Act 1986 ; or
(f) the circumstances determined in an instrument under subsection ( 2) apply in relation to the person.
(2) The Minister may, by legislative instrument, determine circumstances for the purposes of paragraph ( 1)(f).
41E Exemption from interest charge--Secretary's determination
(1) The Secretary may determine that interest charge is not payable, or is not payable in respect of a particular period, by a person on the outstanding amount of a relevant debt.
(2) The Secretary may make a determination under this section in circumstances that include (but are not limited to) the Secretary being satisfied that the person has a reasonable excuse for:
(a) failing to enter into an arrangement under section 41F to pay the outstanding amount of the debt; or
(b) having entered an arrangement, failing to make a payment in accordance with that arrangement.
(3) The determination may relate to a period before, or to a period that includes a period before, the making of the determination.
(4) The determination may be expressed to be subject to the person complying with one or more specified conditions.
(5) If the determination is expressed to be subject to the person complying with one or more specified conditions, the Secretary must give written notice of the determination to the person as soon as practicable after the determination is made.
(6) If:
(a) the determination is expressed to be subject to the person complying with one or more specified conditions; and
(b) the person contravenes a condition or conditions without reasonable excuse;
the determination ceases to have effect from and including the day on which the contravention or the earliest of the contraventions occurred.
(7) The Secretary may cancel or vary the determination by written notice given to the person.
41F Arrangement for payment of relevant debt
(1) The Secretary may, on behalf of the Commonwealth, enter into an arrangement with a person under which the person is to pay a relevant debt, owed by the person to the Commonwealth, or the outstanding amount of such a debt, in a way set out in the arrangement.
(2) If a person is required to make a payment under an arrangement entered into under subsection ( 1) before the end of a particular day, the person must make that payment before the end of that day.
(3) An arrangement entered into under subsection ( 1) has effect, or is taken to have had effect, on and after the day specified in the arrangement as the day on which the arrangement commences (whether that day is the day on which the arrangement is entered into or an earlier or later day).
(4) If an arrangement entered into under subsection ( 1) does not specify a day as mentioned in subsection ( 3), it has effect on and after the day on which it is entered into.
(5) The Secretary may terminate or alter an arrangement entered into under subsection ( 1):
(a) at the debtor's request; or
(b) after giving 28 days' notice to the debtor of the proposed termination or alteration; or
(c) without notice, if the Secretary is satisfied that the person has failed to disclose material information about his or her true capacity to repay the debt.
41G Guidelines on interest charge provisions
The Minister may, by legislative instrument, determine guidelines relating to the operation of the provisions of this Division dealing with interest charge.
44 Paragraph 51(1)(b)
Omit "subsection 40(1A)", substitute "subsection 40(1)".
Veterans' Entitlements Act 1986
45 Section 205AAE
Repeal the section, substitute:
(1) The penalty interest rate is:
(a) 3% per year; or
(b) if another percentage is determined in an instrument under subsection ( 2)--that percentage per year.
(2) The Minister may, by legislative instrument, determine a percentage for the purposes of paragraph ( 1)(b).
Part 2 -- Application, saving and transitional provisions
46 Application and transitional provisions--family assistance amendments
(1) Paragraph 78(1)(a) of the A New Tax System (Family Assistance) (Administration) Act 1999 , as amended by this Act, applies in relation to a notice given on or after the commencement of this item (whether the debt arose before, on or after that commencement).
(2) If:
(a) before the commencement of this item, the Secretary gave a person a notice under subsection 77(1) of the A New Tax System (Family Assistance) (Administration) Act 1999 in relation to a debt; and
(b) the whole or a part of that debt is outstanding immediately before that commencement;
then, on or after the commencement of this item, the Secretary must give the person another notice under subsection 77(1) of that Act, as amended by this Act, in relation to the debt.
(3) Paragraph 78A(1)(b) of the A New Tax System (Family Assistance) (Administration) Act 1999 , as amended by this Act, applies in relation to a failure that occurs on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
(4) Paragraph 78A(4)(b) of the A New Tax System (Family Assistance) (Administration) Act 1999 , as amended by this Act, applies in relation to a termination that occurs on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
(5) Subsection 91(1B) of the A New Tax System (Family Assistance) (Administration) Act 1999 , as amended by this Act, applies in relation to a requirement to make a payment on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
47 Application and transitional provisions--paid parental leave amendments
(1) Paragraph 174(1)(a) of the Paid Parental Leave Act 2010 , as amended by this Act, applies in relation to a notice given on or after the commencement of this item (whether the debt arose before, on or after that commencement).
(2) If:
(a) before the commencement of this item, the Secretary gave a person a notice under subsection 173(1) of the Paid Parental Leave Act 2010 in relation to a debt; and
(b) the whole or a part of that debt is outstanding immediately before that commencement;
then, on or after the commencement of this item, the Secretary must give the person another notice under subsection 173(1) of that Act, as amended by this Act, in relation to the debt.
(3) Paragraph 175(1)(b) of the Paid Parental Leave Act 2010 , as amended by this Act, applies in relation to a failure that occurs on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
(4) Paragraph 175(4)(b) of the Paid Parental Leave Act 2010 , as amended by this Act, applies in relation to a termination that occurs on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
(5) Subsection 190(1A) of the Paid Parental Leave Act 2010 , as amended by this Act, applies in relation to a requirement to make a payment on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
48 Application and transitional provisions--social security amendments
(1) Paragraph 1229A(1)(a) of the Social Security Act 1991 , as amended by this Act, applies in relation to a notice given on or after the commencement of this item (whether the debt arose before, on or after that commencement).
(2) If:
(a) before the commencement of this item, the Secretary gave a person a notice under subsection 1229(1) of the Social Security Act 1991 in relation to a debt; and
(b) the whole or a part of that debt is outstanding immediately before that commencement;
then, on or after the commencement of this item, the Secretary must give the person another notice under subsection 1229(1) of that Act, as amended by this Act, in relation to the debt.
(3) Paragraph 1229B(1)(b) of the Social Security Act 1991 , as amended by this Act, applies in relation to a failure that occurs on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
(4) Paragraph 1229B(4)(b) of the Social Security Act 1991 , as amended by this Act, applies in relation to a termination that occurs on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
(5) Subsection 1234(1A) of the Social Security Act 1991 , as amended by this Act, applies in relation to a requirement to make a payment on or after the commencement of this item (whether the arrangement was entered into before, on or after that commencement).
49 Application, saving and transitional provisions--student assistance amendments
(1) Sections 40 to 41G of the Student Assistance Act 1973 , as amended by this Act, apply in relation to:
(a) a relevant debt that arises on or after the commencement of this item; and
(b) a relevant debt that arose before the commencement of this item, to the extent that the debt was outstanding immediately before that commencement.
(2) The repeal of section 39A of the Student Assistance Act 1973 made by this Schedule does not affect the validity of a decision under subsection 39A(1) of that Act before the commencement of this item.
(3) A decision made under subsection 39A(1) of the Student Assistance Act 1973 before the commencement of this item in relation to a person and a debt does not prevent the application of the provisions of Division 2 of Part 6 of that Act, as amended by this Act, on and after that commencement in relation to the person and the debt.