PRIVATE HEALTH INSURANCE INCENTIVES ACT 1998

CHAPTER 4 - PROVISIONS APPLYING BOTH TO INCENTIVE PAYMENTS SCHEME AND TO PREMIUMS REDUCTION SCHEME  

PART 7 - GENERAL  

Division 18 - When and how payments can be recovered  

SECTION 18-10   INTEREST ON AMOUNTS RECOVERABLE  

18-10(1)   [Interest is payable after set period]  

If the Medicare Australia CEO has served on an individual from whom an amount is recoverable or the legal personal representative of such an individual, or on a * health fund from which an amount is recoverable, under subsection 18-5(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 Medicare Australia CEO and the individual or the individual's legal personal representative, or the health fund , 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.

18-10(2)   [Rates]  

Interest is payable:

(a) at the rate specified in the regulations; or

(b) if no rate is so specified - at the rate of 15% per annum.

18-10(3)   [Period term]  

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 Medicare Australia CEO allows.

18-10(4)   [Court]  

Despite subsection (1), in any proceedings instituted by the Commonwealth for the recovery of an amount due under paragraph 18-5(1)(f) , 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).