Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section does not apply to family law or child support proceedings.
Note: See section 117B of the Family Law Act 1975 in relation to family law or child support proceedings.
Application for interest order
(2) A party to proceedings that are:
(a) in the Federal Circuit and Family Court of Australia (Division 2); and
(b) for the recovery of any money (including any debt or damages or the value of any goods) in respect of a particular cause of action;
may apply to the Court or a Judge for an order under subsection (3).
Interest order
(3) If:
(a) an application is made under subsection (2); and
(b) the Federal Circuit and Family Court of Australia (Division 2) or the Judge is not satisfied that good cause has been shown for not making an order under this subsection;
the Court or the Judge must either:
(c) order that there be included in the sum for which judgment is given interest at such rate as the Court or the Judge thinks fit on the whole or any part of the money for the whole or any part of the period between:
(i) the date when the cause of action arose; and
(ii) the date as of which judgment is entered; or
(d) without proceeding to calculate interest in accordance with paragraph (c), order that there be included in the sum for which judgment is given a lump sum in lieu of any such interest.
Exceptions
(4) Subsection (3) does not:
(a) authorise the giving of interest upon interest or of a sum in lieu of such interest; or
(b) apply in relation to any debt upon which interest is payable as of right, whether by virtue of an agreement or otherwise; or
(c) affect the damages recoverable for the dishonour of a bill of exchange; or
(d) limit the operation of any enactment or rule of law which, apart from this section, provides for the award of interest; or
(e) authorise the giving of interest, or a sum in lieu of interest, otherwise than by consent, upon any sum for which judgment is given by consent.
(5) If:
(a) the sum for which judgment is given (the relevant sum ) includes; or
(b) the Federal Circuit and Family Court of Australia (Division 2) in its absolute discretion, or a Judge in that Judge's absolute discretion, determines that the relevant sum includes;
any amount for:
(c) compensation in respect of liabilities incurred which do not carry interest as against the person claiming interest or claiming a sum in lieu of interest; or
(d) compensation for loss or damage to be incurred or suffered after the date on which judgment is given; or
(e) exemplary or punitive damages;
interest, or a sum in lieu of interest, must not be given under subsection (3) in respect of:
(f) any such amount; or
(g) so much of the relevant sum as, in the opinion of the Court or the Judge, represents any such amount.
(6) Subsection (5) does not preclude:
(a) interest; or
(b) a sum in lieu of interest;
being given, under this section, upon compensation in respect of a liability of the kind referred to in paragraph (5)(c), where that liability has been met by the applicant, as from the date upon which that liability was so met.