Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1229A

             (1)  This section applies to a person:

                     (a)  who receives a further notice given under subsection 1229(3); and

                     (b)  who:

                              (i)  is not receiving a social security payment; and

                             (ii)  is not receiving a payment of pension or allowance under the Veterans' Entitlements Act; and

                            (iii)  is not receiving, and has not received, a payment of compensation (within the meaning of the Military Rehabilitation and Compensation Act ) under that Act.

             (2)  If:

                     (a)  the person has not entered into an arrangement, on or before the final payment day, to pay the outstanding amount of the debt; and

                     (b)  the Secretary has notified the person in writing that the person 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 debt 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 a debt, or the proportion of a debt, 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 to pay the outstanding amount of the debt; and

                     (b)  the person has failed to make a particular payment in accordance with the arrangement; and

                     (c)  the Secretary has notified the person in writing that the person 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 debt 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 debt was made until the debt 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 latest of the following days:

                     (a)  the 90th day after the day on which the outstanding amount of the debt was due and payable;

                     (b)  the 28th day after the date of the further notice given under subsection 1229(3);

                     (c)  if a request for review has been made within 90 days after the receipt of a notice issued under subsection 1229(1) --90 days after the day on which an authorised review officer makes a decision in respect of the request.

             (5)  The interest payable on the outstanding amount of a debt is a debt due to the Commonwealth.

             (6)  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.

             (7)  In this section:

"arrangement" means:

                     (a)  an arrangement entered into with the Secretary under section 1234; or

                     (b)  if such an arrangement has been amended--the arrangement as amended.