Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1142A

             (1)  The debt owed by a person under section 1135, at the time the pension loans scheme ceases to operate in relation to the person by operation of section 1141 or 1142, may be repaid by the person at any time.

Note 1:       Section 1141 provides that a person ceases to participate in the scheme if the debt owed by the person exceeds the maximum loan available.

Note 2:       Section 1142 provides for a person to withdraw from the scheme.

             (2)  If the debt owed by the person is not repaid by the person at the time the scheme ceases to operate in relation to the person, compound interest continues to accrue, and forms part of the debt, in accordance with Step 4 of the Method statement in subsection 1135(3), until the debt is repaid or recovered.

             (3)  If the debt is not repaid under subsection (1) of this section, subject to section 1139 the Commonwealth is entitled to recover the debt.

Note:          Section 1139 provides that a debt cannot be recovered from a person until after the person's death.