41A

Interest charge—failure to comply with or termination of repayment arrangement

In force

(1)

If:

(a)

an arrangement is in effect under section 41F in relation to a person and a relevant debt; and

(b)

the person fails to make a payment under the arrangement;

then the person is liable to pay, by way of penalty, interest charge, worked out under subsection (3), for each day in the period described in subsection (2).

Note:

For exemptions, see sections 41D and 41E.

(2)

The period starts at the beginning of the day after the day (the due day) on which the payment was required to be made under the arrangement and ends at the end of the earliest of the following days:

(a)

the last day at the end of which any of the following remains unpaid:

(i)

the outstanding amount of the debt;

(ii)

interest charge on any of the outstanding amount of the debt;

(b)

the day before the first day, after the due day, on which the person has paid all the payments that have so far become due and payable under the arrangement;

(c)

the day before the day the arrangement is terminated under section 41F.

(3)

The interest charge for a day in the period described in subsection (2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:

(a)

the outstanding amount of the debt;

(b)

the interest charge from previous days.

Note 1:

For interest charge rate see section 41C.

Note 2:

The interest charge for a day is due and payable to the Commonwealth at the end of that day: see section 41B.

Repayment arrangement is terminated

(4)

If:

(a)

an arrangement is in effect under section 41F in relation to a person and a relevant debt; and

(b)

the arrangement is then terminated under section 41F on a day (the termination day);

then:

(c)

the following amounts (if any) are due and payable on the 14th day after the termination day:

(i)

the outstanding amount of the debt;

(ii)

interest charge on any of the outstanding amount of the debt; and

(d)

if, at the end of that 14th day, any of those amounts remains unpaid, the person is liable to pay, by way of penalty, interest charge, worked out under subsection (6), for each day in the period described in subsection (5).

Note:

For exemptions, see sections 41D and 41E.

(5)

The period starts at the beginning of the day after that 14th day and ends at the end of the earlier of the following days:

(a)

the last day at the end of which any of the following remains unpaid:

(i)

the outstanding amount of the debt;

(ii)

interest charge on any of the outstanding amount of the debt;

(b)

the day before the first day, after that 14th day, on which the person makes a payment under another arrangement under section 41F in relation to the debt.

(6)

The interest charge for a day in the period described in subsection (5) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:

(a)

the outstanding amount of the debt;

(b)

the interest charge from previous days.

Note 1:

For interest charge rate see section 41C.

Note 2:

The interest charge for a day is due and payable to the Commonwealth at the end of that day: see section 41B.

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