Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section applies if:
(a) an amount (the principal sum ) is recoverable as a debt due to the Commonwealth from a person or estate under section 56 or 56A; and
(b) the Chief Executive Medicare has given a written notice to the person or estate claiming the amount as a debt due to the Commonwealth.
Interest payable
(2) Interest is payable on the amount of the principal sum that remains unpaid from time to time if:
(a) a repayment arrangement in relation to the principal sum was entered into during the relevant period and there is a default (whether before or after the end of the relevant period) in repaying all or part of the principal sum as required by the arrangement; or
(b) at the end of the relevant period, a repayment arrangement has not been entered into and all or part of the principal sum remains unpaid.
(3) For the purposes of subsection (2), the relevant period is:
(a) the period of 3 months beginning on the day after the written notice is given to the person or estate under paragraph (1)(b); or
(b) such longer period as the Chief Executive Medicare allows.
(4) Interest under subsection (2) is payable from:
(a) the day after the end of the relevant period; or
(b) such later day ordered by a court in any proceedings instituted by the Commonwealth to recover an amount due under this section.
(5) Interest under subsection (2):
(a) is payable at the rate prescribed from time to time for the purposes of subsection 129AC(2) of the Health Insurance Act 1973 ; and
(b) is recoverable as a debt due to the Commonwealth from the person or estate.
(6) In this section:
"repayment arrangement" , in relation to a principal sum, means an arrangement entered into by the Chief Executive Medicare and a person, or the person's estate, for the repayment of the principal sum.