Minimum annual instalments
36 Minimum annual instalments
This clause applies to a continued incomplete tenure purchase with a purchase price payable by annual instalments.
An annual instalment of the purchase price of land is not to be less than the minimum annual instalment payable at the due date.
If an annual instalment of the purchase price of land (whether with or without interest added) is less than the minimum annual instalment, the annual instalment is increased to the minimum annual instalment.
For the purpose of this Part, the minimum annual instalment at each due date is determined in accordance with the following formula—
where—
M is the minimum annual instalment.
B is the annual instalment base.
C is the Consumer Price Index number for the last quarter for which such a number was published before the due date for the annual instalment.
D is the Consumer Price Index number for the last quarter for which such a number was published before the annual instalment base adjustment date.
If the balance of purchase money and interest owing in respect of the continued incomplete tenure purchase is at any time less than the amount of the minimum annual instalment, the balance only is payable.
In this clause—
annual instalment base means $350 or any higher amount that may be prescribed by the regulations.
annual instalment base adjustment date means 1 July 2004 or, if the annual instalment base is prescribed by the regulations, the date prescribed by the regulations as the annual instalment base adjustment date.
This provision refers to the regulations (prescribed by the regulations
). Made under this Act:
This Act’s bill:Explanatory memorandumSecond reading speech
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