Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a person who:
(a) receives a further notice given under subsection 205AAA(3); and
(b) is not in receipt of a pension, allowance or other pecuniary benefit under this Act or the social security law.
(2) If:
(a) the person has not entered into an arrangement with the Commission, on or before the final payment day, to pay the outstanding amount of the recoverable amount; and
(b) the Commission has notified the person in writing that he or she will be required to pay interest under this subsection;
the person is liable to pay interest:
(c) from and including the first day after the final payment day until the recoverable amount is wholly paid; and
(d) at the penalty interest rate;
on the outstanding amount from time to time.
(2A) Under this section, a person is not liable to pay interest on an outstanding amount, or the proportion of an outstanding amount, that was incurred because of an administrative error made by the Commonwealth or an agent of the Commonwealth.
(3) If:
(a) the person has entered into an arrangement with the Commission to pay the outstanding amount of the recoverable amount; and
(b) the person has failed to make a particular payment in accordance with the arrangement; and
(c) the Commission has notified the person in writing that he or she will be required to pay interest under this subsection;
the person is liable to pay interest:
(d) if the failure occurs on or before the final payment day--from and including the first day after the final payment day until the recoverable amount is wholly paid; or
(e) if the failure occurs after the final payment day--from and including the day after the day in respect of which the last payment in respect of the recoverable amount was made until the recoverable amount is wholly paid;
at the penalty interest rate, on the outstanding amount from time to time.
(4) For the purposes of subsections (2) and (3), the final payment day is the later of the following days:
(a) the 90th day after the day on which the outstanding amount of the recoverable amount was due and payable;
(b) the 28th day after the date of the further notice given under subsection 205AAA(3).
(5) The interest payable on the outstanding amount of a recoverable amount is a debt due to the Commonwealth and may be recovered as if it were a recoverable amount for the purposes of section 205.
(6) If:
(a) interest is payable on the outstanding amount of a recoverable amount; and
(b) an amount is paid for the purpose of paying the recoverable amount and the interest;
the amount so paid is to be applied as follows:
(c) until the recoverable amount (excluding interest) is fully paid--in satisfaction of the outstanding amount of the recoverable amount that is due when the payment is made;
(d) after the recoverable amount (excluding interest) is fully paid--in satisfaction of the interest that had become payable on the outstanding amount of the recoverable amount before the recoverable amount was fully paid.