Commonwealth Numbered Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

A NEW TAX SYSTEM (FAMILY ASSISTANCE) (ADMINISTRATION) ACT 1999 - SECT 77

Interest payable on debt for failure to enter agreement to pay debt

Notice may be given about interest becoming payable if person fails to enter agreement to pay debt

(1)
If:

(a)
a person owes a debt to the Commonwealth under a provision of this Part; and

(b)
either:

(i)
the person owing the debt is a person who is not receiving instalments of family assistance; or
(ii)
the person owing the debt is an approved child care service who is not receiving group payments; and
(c)
the Secretary has given the person a notice asking the person to pay the debt; and

(d)
at the end of the period of 21 days after the notice is given, the person:

(i)
has not entered into negotiations to pay the debt; or
(ii)
has entered into negotiations to pay the debt, but has not entered into an agreement to pay the debt by reasonable instalments;
the Secretary may give the person a notice advising the person of the following:

(e)
the amount of the debt;

(f)
that, unless the person, within 14 days after the notice is given:

(i)
pays the whole of the debt; or
(ii)
enters into an agreement to pay the debt by reasonable instalments;
interest may become payable on the debt;

(g)
how any interest that becomes payable is to be calculated.

When interest becomes payable

(2)
Subject to subsection (3), if:

(a)
the whole of the debt is not paid within 14 days after the person is given the notice; or

(b)
the person does not enter into an agreement to pay the debt within the 14 day period;

interest is payable by way of penalty on the debt by the person and the amount of the interest is to be worked out under subsection (4).

Secretary may determine interest is not payable

(3)
The Secretary may determine in writing that interest is not payable on the debt if the Secretary is satisfied that the person intends to pay the debt as soon as is reasonably practicable having regard to the circumstances of the person.

The interest payable

(4)
Interest is payable on the amount of the debt (excluding interest) as remains due from time to time:

(a)
on and from the day after the 14 day period ends; and

(b)
at the penalty interest rate.

Payments in satisfaction of debt and interest

(5)
If:

(a)
interest is payable on the debt; and

(b)
an amount is paid for the purpose of paying the debt and the interest;

the amount so paid is to be applied as follows:

(c)
until the debt (excluding interest) is fully paid—in satisfaction of the amount of the debt that is due when the payment is made;

(d)
after the debt (excluding interest) is fully paid—in satisfaction of the interest that had become payable on the debt before the debt was fully paid.

Interest ceases to be payable if agreement entered into

(6)
If a person enters into an agreement to pay the debt by reasonable instalments, interest that would, apart from this subsection, become payable on the debt on and from the day on which the agreement is entered into is not payable.

Interest payable is a debt due to the Commonwealth

(7)
The interest that is payable on the debt is a debt due to the Commonwealth.


[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]