Repayment or recovery of debt after home equity access scheme ceases to operate
52ZKA Repayment or recovery of debt after home equity access scheme ceases to operate
The debt owed by a person under section 52ZC, at the time the home equity access scheme ceases to operate in relation to the person by operation of section 52ZJ, 52ZJA, 52ZJB or 52ZK, may be repaid by the person at any time.
Section 52ZJ provides that a person ceases to participate in the scheme if the debt owed by the person exceeds the maximum loan available.
Note 1A: Section 52ZJA provides that the scheme ceases to operate in relation to a person if the Commission is satisfied that the person ceases to be eligible to participate in the scheme and the Commission determines that the scheme ceases to operate in relation to the person.
Note 1B: Section 52ZJB provides that the scheme ceases to operate in relation to a person if the person starts to receive certain social security pensions.
Section 52ZK provides for a person to withdraw from the scheme.
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 3 of the Method statement in subsection 52ZC(3), until the debt is repaid or recovered.
If the debt is not repaid under subsection (1) of this section, subject to section 52ZG the Commonwealth is entitled to recover the debt.
Section 52ZG provides that a debt cannot be recovered from a person until after the person’s death.
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