Commonwealth Consolidated Regulations

INSURANCE CONTRACTS REGULATIONS 1985 - REG 32

(1)

For subsection 57 (3) of the Act, the rate applicable to a day in respect of which interest is payable by an insurer, is the rate worked out under the following formula:

where:

(a)

10-year Treasury Bond yield at the end of the half-financial year ending in the period that, in relation to the withheld amount, is mentioned in subsection 57 (2) of the Act, or:

(b)

if more than one half-financial year has ended during that period — the mean of the rates of the 10-year Treasury Bond yield at the end of each of those half-financial years; or

(c)

if no half-financial year has ended during that period — the 10-year Treasury Bond yield at the end of the half-financial year immediately preceding the commencement of that period.

(2)

In subregulation (1), 10-year Treasury Bond yield means the rate known as the 10-year Treasury Bond yield, published by the Reserve Bank of Australia.

(3)

In subregulation (1), mean , in relation to rates, means, if the mean of the rates is not a whole number, or does not end in .75, .50 or .25, the mean rate rounded to the nearest lower quarter of 1%.