A New Tax System (Family Assistance) (Administration) Act 1999

PART 4 - OVERPAYMENTS AND DEBT RECOVERY

Division 2 - Amounts recoverable under this Act

SECTION 78A Interest charge - failure to comply with or termination of repayment arrangement

78A(1)
If:

(a) an arrangement is in effect under section 91 in relation to a person and a debt; and

(b) the person fails to make a payment under the arrangement;

[ CCH Note: No 55 of 2016, s 3 and Sch 12 item 46(3) provides that para (b) is applicable in relation to a failure that occurs on or after 1 January 2017 (whether the arrangement was entered into before, on or after 1 January 2017).]

then the person is liable to pay, by way of penalty, interest charge, worked out under subsection (3), for each day in the period described in subsection (2).

Note:

For exemptions, see sections 78D and 78E .

78A(2)
The period starts at the beginning of the day after the day (the due day ) on which the payment was required to be made under the arrangement and ends at the end of the earliest of the following days:

(a) the last day at the end of which any of the following remains unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the debt;

(b) the day before the first day, after the due day, on which the person has paid all the payments that have so far become due and payable under the arrangement;

(c) the day before the day the arrangement is terminated under section 91 .

78A(3)
The interest charge for a day in the period described in subsection (2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 78C .

Note 2:

The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 78B .

Repayment arrangement is terminated

78A(4)
If:

(a) an arrangement is in effect under section 91 in relation to a person and a debt; and

(b) the arrangement is then terminated under section 91 on a day (the termination day );

[ CCH Note: No 55 of 2016, s 3 and Sch 12 item 46(4) provides that para (b) is applicable in relation to a termination that occurs on or after 1 January 2017 (whether the arrangement was entered into before, on or after 1 January 2017).]

then:

(c) the following amounts (if any) are due and payable on the 14th day after the termination day:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the debt; and

(d) if, at the end of that 14th day, any of those amounts remains unpaid, the person is liable to pay, by way of penalty, interest charge, worked out under subsection (6), for each day in the period described in subsection (5).

Note:

For exemptions, see sections 78D and 78E .

78A(5)
The period starts at the beginning of the day after that 14th day and ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the debt;

(b) the day before the first day, after that 14th day, on which the person makes a payment under another arrangement under section 91 in relation to the debt.

78A(6)
The interest charge for a day in the period described in subsection (5) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 78C .

Note 2:

The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 78B .

View history note

History

S 78A substituted by No 55 of 2016, s 3 and Sch 12 item 3, effective 1 January 2017. S 78A formerly read:

SECTION 78A DETERMINATION THAT INTEREST NOT TO BE PAYABLE
78A(1)
The Secretary may determine that interest is not payable, or is not payable in respect of a particular period, by a person on the outstanding amount of a debt.

78A(1A)
The Secretary may make a determination under this section in circumstances that include (but are not limited to) the Secretary being satisfied that the person has a reasonable excuse for:

(a) failing to enter into an arrangement under section 91 to pay the outstanding amount of the debt; or

(b) having entered an arrangement, failing to make a payment in accordance with that arrangement.

78A(2)
The determination may relate to a period before, or to a period that includes a period before, the making of a determination.

78A(3)
The determination may be expressed to be subject to the person complying with one or more specified conditions.

78A(4)
If the person has been notified under subsection 78(2) or (3) that he or she will be required to pay interest under that subsection, the Secretary must give written notice of the determination to the person as soon as practicable after the determination is made.

78A(5)
Contravention of subsection (4) does not invalidate a determination.

78A(6)
If:

(a) the determination is expressed to be subject to the person complying with one or more specified conditions; and

(b) the person contravenes a condition or conditions without reasonable excuse;
the determination ceases to have effect from and including the day on which the contravention or the earliest of the contraventions occurred.

78A(7)
The Secretary may cancel or vary the determination by written notice given to the person.

S 77, 78, 78A and 78B substituted for s 77 and 78 by No 47 of 2001, s 3 and Sch 3 item 3, effective 1 July 2001. For application provisions, see note under s 77.

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