Arrangements as to manner and time of payment
15 Arrangements as to manner and time of payment
Subject to this section, a debtor who pays, or who agrees to pay, to the
Chief Recovery Officer the prescribed fee—
may, at any time during the 28 day period referred to in section 11, enter into an arrangement with the Chief Recovery Officer for payment of a pecuniary sum by instalments over a period determined by the Chief Recovery Officer (being not more than 12 months from the date on which the arrangement is entered into); or
if the Chief Recovery Officer agrees, may enter into some other kind of arrangement with the Chief Recovery Officer in relation to a pecuniary sum in accordance with subsection (5).
Subject to subsection (3), if the fee prescribed under subsection (1) is not paid by the debtor before the debtor enters into the arrangement, the fee is to be added to, and forms part of, the pecuniary sum payable by the debtor.
The
Chief Recovery Officer may, in such circumstances as the Chief
Recovery Officer thinks just, waive payment of the fee prescribed under subsection (1).
An arrangement for payment by instalments referred to in subsection (1)(a) must provide for instalments to be paid to the Chief Recovery
Officer by direct debits by or through some other person or agency (eg deductions from an ADI account or wages).
Other kinds of arrangements under this section may consist of or include—
payment by instalments (including instalments paid over a period exceeding
12 months); and
an extension of time to pay; and
the taking of a charge over land; and
the surrender of property to the Chief Recovery Officer; and
payment of any amount, including by direct credit, by or through some other person or agency (eg deductions from an ADI account or wages); and
subject to subsection (6)—requirements for the performance of community service by the debtor (in accordance with a scheme prescribed by the regulations); and
subject to subsection (7)—an arrangement for the debtor to complete an approved treatment program; and
any other form of arrangement agreed by the Chief Recovery Officer and the debtor.
The
Chief Recovery Officer may only agree to an arrangement requiring the performance of community service if the Chief Recovery Officer is satisfied that the debtor does not have, and is not likely within a reasonable time to have, the means to pay the pecuniary sum without the debtor or the debtor's dependants suffering hardship.
The
Chief Recovery Officer must not enter into an arrangement requiring a debtor to complete an approved treatment program unless the
Officer is satisfied that—
the debtor does not have, and is not likely within a reasonable time to have, the means to pay the pecuniary sum without the debtor or the debtor's dependants suffering hardship; and
the debtor is eligible for the services to be included on the program in accordance with applicable eligibility criteria (if any); and
the services are available for the debtor at a suitable time and place.
If—
a debtor has previously been subject to enforcement action under—
this
Part (whether in relation to the same, or a different, pecuniary sum); or
Part 4;
or
Part 8;
or
Part
9 Division 3 of the repealed Criminal
Law (Sentencing) Act 1988;
or
the
Expiation of Offences Act 1996;
or
a debtor is an undischarged bankrupt or is subject to a composition or deed or scheme of arrangement with or for the benefit of creditors;
or
a debtor is of a class prescribed by the regulations, the
Chief Recovery Officer may—
refuse to enter into an arrangement under this section, or a particular type of arrangement under this section, with the debtor; or
require the debtor to provide an irrevocable authority to obtain (in accordance with any prescribed requirements) financial and contact information about the debtor from any Commonwealth, State or Local
Government agency, any ADI or an employer of the debtor; or
require the debtor to provide security or obtain guarantees (as the Chief
Recovery Officer thinks fit).
An arrangement under this section may be varied—
by agreement between the debtor and the Chief Recovery Officer; or
by the Chief Recovery Officer in accordance with subsection (11a).
If the Chief Recovery Officer is satisfied that a debtor who has entered into an arrangement under this section has the capacity to pay any outstanding amount of the pecuniary sum without the debtor or the debtor's dependants suffering hardship, the Officer may, by notice in writing given to the debtor, terminate the arrangement.
For the purposes of entering into, or varying, an arrangement, any number of pecuniary sums payable by the debtor may be aggregated.
The
Chief Recovery Officer may, on the Chief Recovery Officer's own initiative, vary an arrangement by extending it to apply to another pecuniary sum payable by the debtor (whether or not the 28 day period under section 11 has ended in relation to the other pecuniary sum).
For the avoidance of doubt, the prescribed fee under subsection (1) will not be payable by the debtor in respect of the extension of an arrangement to another pecuniary sum in accordance with subsection (11a).
If a debtor complies with an arrangement under this section requiring the performance of community service, the amount of the pecuniary sum outstanding is to be reduced in accordance with the method prescribed by regulation for the purposes of this subsection.
If the Chief Recovery Officer is satisfied that a debtor has completed, or substantially completed, an approved treatment program pursuant to an arrangement under this section, the Officer must waive payment of the whole or part of the amount payable by the debtor in accordance with the arrangement.
If an arrangement is entered into or varied under this section, the
Chief Recovery Officer must give notice of the arrangement or varied arrangement (as the case requires) to the debtor.
If an arrangement is varied under subsection (11a)—
the debtor may, within the period of 14 days after the day on which the debtor was given notice of the variation under subsection (14), apply (in a manner specified in the notice) for rescission of the variation; and
on receipt of such an application, the Chief Recovery Officer must rescind the variation (and the arrangement will apply to the debtor as if the variation had never been made).
If a debtor fails to comply with an arrangement under this section and the failure has endured for 28 days, the arrangement terminates.
However, an arrangement that has terminated under subsection (15) may, not more than 14 days after the day on which it terminated, be reinstated by the Chief Recovery Officer.
If an arrangement is reinstated by the Chief Recovery Officer—
the arrangement as reinstated commences on a day specified by the
Officer; and
the provisions of this section apply to the reinstated arrangement as if it had not terminated.
If an arrangement is terminated under subsection (15) and is not reinstated, on the expiration of the 14 day period referred to in subsection (16), any amounts that would, but for the existence of the arrangement, have been added to the pecuniary sum under section 18(3a) will be added to, and form part of, the pecuniary sum payable by the debtor.
This Act’s bill:Second reading speech
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