Private Health Insurance Act 2007

CHAPTER 6 - ADMINISTRATION  

PART 6-4 - ADMINISTRATION OF PREMIUMS REDUCTION SCHEME  

Division 282 - Recovery of amounts and other matters  

Subdivision 282-A - When and how payments can be recovered  

SECTION 282-5   INTEREST ON AMOUNTS RECOVERABLE  

282-5(1)    
If the Chief Executive Medicare has served, on an individual from whom an amount is recoverable or the legal personal representative of such an individual, or on a private health insurer from which an amount is recoverable, under subsection 282-1(1) a notice claiming an amount as a debt due to the Commonwealth and:

(a)    an arrangement for the repayment of the amount has been entered into between the Chief Executive Medicare and the individual or the individual ' s legal personal representative, or the private health insurer, as the case may be, within the period referred to in subsection (3) , and there has been a default in payment of an amount required to be paid under the arrangement; or

(b)    at the end of the period such an arrangement has not been entered into and all or part of the amount remains unpaid;

then, from and including the day after the end of the period, interest becomes payable on so much of the amount as from time to time remains unpaid.

282-5(2)    
Interest is payable:

(a)    at the rate of 15% per annum; or

(b)    if a lower rate is specified in the Private Health Insurance (Incentives) Rules for the purposes of this paragraph - that rate.

282-5(3)    
The period for entering into an arrangement under paragraph (1)(a) is the period of 3 months following the service of the notice under subsection (1) , or such longer period as the Chief Executive Medicare allows.

282-5(4)    
Despite subsection (1) , in any proceedings instituted by the Commonwealth for the recovery of an amount due under paragraph 282-1(1)(h) , the court may order that the interest payable under that paragraph is, and is taken to have been, so payable from and including a day later than the day referred to in subsection (1) .