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A NEW TAX SYSTEM (FAMILY ASSISTANCE) (ADMINISTRATION) ACT 1999 - SECT 78

Interest payable on debt for breach of agreement to pay debt

Notice may be given about interest becoming payable if person breaches 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 person enters into an agreement to pay the debt by reasonable instalments; and

(d)
the person does not pay an instalment;

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 pays the instalment within 14 days after the notice is given, 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 subsections (3) and (4), if the instalment is not paid within 14 days after the person is given the notice, interest is payable by way of penalty on the debt by the person and the amount of interest is to be worked out under subsection (5).

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 instalment as soon as is reasonably practicable having regard to the person's circumstances.

Interest may cease to accrue

(4)
Interest payable under subsection (2) ceases to accrue on and from the day the person:

(a)
next pays the instalment due under an agreement; or

(b)
enters into a new agreement;

whichever first occurs.

The interest payable

(5)
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 set under section 79.

Payments in satisfaction of debt and interest

(6)
If:

(a)
interest is payable on the debt; and

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

the amount 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 it was fully paid.

Interest payable is a debt due to the Commonwealth

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


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