A New Tax System (Pay As You Go) Act 1999 (178 of 1999)

Schedule 2   Running balance accounts, general interest charge and related matters

Part 2   General interest charge

Taxation Laws Amendment Act (No. 3) 1999

93   Transitional - pre-1 July 1999 debts

(1) This item applies to an amount (including an amount of penalty or interest) that a person owes to the Commonwealth directly under a taxation law (including a law that has been repealed or amended) and that became payable at any time before 1 July 1999, if all or some of the amount (the unpaid debt ) remains unpaid at the beginning of 1 July 1999.

(2) The person is liable, and is taken to have been liable, to pay general interest charge on the unpaid debt for each day in the period that:

(a) started at the beginning of the day by which the amount was due to be paid; and

(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

(i) the unpaid debt;

(ii) general interest charge on any of the unpaid debt.

(3) The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953.

(4) For the purposes of this item, the general interest charge rate for a day before 1 July 1999 is taken to have been 12.72% divided by the number of days in the calendar year that the day was in.

(5) If this item results in a person being liable, or being taken to have been liable, to pay both general interest charge and some other penalty or interest in respect of the same debt, the Commissioner must remit either that general interest charge or that other penalty or interest (the Commissioner chooses which).