{"id":"late-payment-of-government-debts-interest-regulations-2014","name":"Late Payment of Government Debts (Interest) Regulations 2014","slug":"late-payment-of-government-debts-interest-regulations-2014","collection":"regulation","jurisdiction":"sa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":236080,"registerId":"sa-late-payment-of-government-debts-interest-regulations-2014-current","compilationNumber":null,"startDate":"2026-04-06","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Late Payment of Government Debts (Interest) Regulations 2014","content":"South Australia\nLate Payment of Government Debts (Interest) Regulations 2014\nunder the Late Payment of Government Debts (Interest) Act 2013\n\nContents\n1\tShort title\n3\tInterpretation\n4\tDesignated contract\n5\tDefault event\n6\tMinimum amount of interest\nLegislative history\n\n1—Short title\nThese regulations may be cited as the Late Payment of Government Debts (Interest) Regulations 2014.\n3—Interpretation\nIn these regulations—\nAct means the Late Payment of Government Debts (Interest) Act 2013.\n4—Designated contract\nFor the purposes of paragraph (a)(i) of the definition of designated contract in section 3(1) of the Act, the prescribed number of days is 15.\n5—Default event\nFor the purposes of section 5(1)(e) of the Act, the prescribed number of days is 15.\n6—Minimum amount of interest\n\t(1)\tFor the purposes of section 6(1) of the Act, the minimum amount of interest to which a supplier under the qualifying contract in relation to which a default event occurs is entitled is to be determined in accordance with the following formula:\n\nwhere\nI is the minimum amount of interest payable to the supplier\nND is equal to the number of days that make up the default period\nIA is the amount paid by or on behalf of the public authority on account of the invoice or claim that has been rendered by the supplier (exclusive of GST)\nPIR is the prescribed interest rate applying on the first day of the month in which the default period ends.\n\t(2)\tFor the purposes of subregulation (1), the default period is the period beginning on the day immediately following the end of the designated payment period and ending on the day immediately preceding the day on which payment is made by or on behalf of the public authority.\n\t(3)\tFor the purposes of subregulation (2), the day on which a payment is made by or on behalf of a public authority will be taken to be—\n\t(a)\tthe day on which an electronic funds transfer is made to a financial institution for processing in order to make payment to the relevant supplier; or\n\t(b)\tthe day on which payment is made by the use of a payment card or a credit card; or\n\t(c)\tthe day on which a cheque is posted to the relevant supplier.\n\t(4)\tIn this regulation—\nprescribed interest rate means a rate of 5% above the cash rate published by the Reserve Bank of Australia (expressed as an annual rate).\nLegislative history\nNotes\n\t•\tFor further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes or www.legislation.sa.gov.au.\nPrincipal regulations and variations\nNew entries appear in bold.\nYear\nNo\nReference\nCommencement\n2014\n44\nGazette 13.2.2014 p901\n17.2.2014: r 2\n2024\n96\nGazette 31.10.2024 p4045\n1.11.2024: r 2\nProvisions varied\nNew entries appear in bold.\nEntries that relate to provisions that have been deleted appear in italics.\nProvision\nHow varied\nCommencement\nr 2\nomitted under Legislation Revision and Publication Act 2002\n1.11.2024\nr 4\nsubstituted by 96/2024 r 3\n1.11.2024\nrr 5 and 6\ninserted by 96/2024 r 3\n1.11.2024\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The regulations remain tightly focused on their original purpose: setting operational details (timeframes, calculation methods, interest rates) for the parent Act's scheme. The 2024 amendments expanded the detail by adding specific rules for default events and the interest calculation formula, but this represents fleshing out the original framework rather than mission creep. The scope remains limited to late payment interest for government contracts."},"complexity_factors":["Short document (6 substantive regulations)","Simple mathematical formula in regulation 6 with clearly defined variables","Only 2 defined terms in the interpretation section ('Act' and 'prescribed interest rate')","Minimal cross-referencing — primarily references back to the parent Act (Late Payment of Government Debts (Interest) Act 2013)","Straightforward conditional logic (if payment late by X days, then interest applies)","No nested exceptions or complex procedural requirements","2024 amendments added clarity rather than complexity (substituted rule 4, inserted rules 5 and 6)"],"plain_english_summary":"**What this legislation does:**\n\nThese regulations set the rules for when and how much **interest** the South Australian government must pay to businesses and suppliers if it pays them late.\n\n**Who it affects:**\n- **Suppliers** — businesses, contractors, or anyone who sells goods or services to South Australian government agencies (\"public authorities\")\n- **Public authorities** — government departments and agencies that buy goods and services\n\n**The key rules:**\n\n- **When interest kicks in:** If a government agency takes more than **15 days** to pay an invoice after receiving it (this is the \"designated contract\" threshold), the supplier becomes entitled to interest on the overdue amount.\n\n- **What counts as a \"default\":** A default event occurs when payment is more than **15 days** late beyond the agreed payment period.\n\n- **How interest is calculated:** The regulations provide a formula:\n  - Interest = (Number of late days × Amount owed × Interest rate) ÷ 365\n  - The interest rate is **5% above the Reserve Bank cash rate** (so it moves with the economy)\n  - The \"default period\" runs from the day after the payment was due until the day before actual payment\n\n- **When is payment \"made\":** The regulations clarify three ways:\n  - Electronic bank transfer (when sent to the bank for processing)\n  - Card payment (when the card is charged)\n  - Cheque (when posted)\n\n**Why it matters:**\nThese regulations protect small businesses and contractors from cash flow problems caused by slow government payments. They create a financial incentive for government agencies to pay on time, and compensate suppliers when they don't. The 2024 update (shown in the legislative history) added clearer rules about when defaults occur and how interest is calculated."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"Amendments recorded in 2024 substituted regulation 4 and inserted regulations 5 and 6. The regulations now prescribe a 15‑day designated payment period (r 4), prescribe a 15‑day period for default-event purposes (r 5), and add a detailed minimum‑interest formula and timing rules (r 6), thereby specifying operational mechanics for late‑payment interest under the Act."},"complexity_factors":["Short, self-contained instrument with few provisions","Numeric thresholds (15 days) set in regs 4 and 5","Formula-based calculation in reg 6 requiring ND, IA and PIR inputs","Prescribed interest rate is dynamic: RBA cash rate + 5% (reg 6(4))","Timing rules for when a payment is treated as made (electronic transfer, card, cheque) in reg 6(3)","Cross-references to definitions and triggers in the Act (designated contract, default event)"],"plain_english_summary":"These regulations set how suppliers are paid interest when a South Australian public authority pays late. They fix the designated payment period at 15 days, define when a late (default) period begins and ends, and prescribe a formula for minimum interest payable based on days late, the invoice amount (ex-GST) and a prescribed rate equal to the RBA cash rate plus 5%. The rules affect suppliers under qualifying contracts and the public authorities that pay them, and change cashflow and payment-compliance incentives."},"summary":{"complexity_score":1,"scope_assessment":{"changed":false,"description":"Scope cannot be assessed as the legislative text was not available. The page returned was a website error notice, not the legislation itself."},"complexity_factors":["No legislative text was retrievable — the source URL returned a 404 error page","Analysis is impossible without access to the actual regulations","The complexity score of 1 reflects the absence of content to assess, not the simplicity of the underlying law"],"plain_english_summary":"The referenced South Australian regulation would set rules for interest on late payments of government debts—who pays, when interest starts, the applicable rate, and which debts are covered—affecting individuals, businesses (and possibly government contractors or agencies). The actual regulation text wasn’t accessible: the provided link returned a 404 error after a site update, so no substantive provisions could be confirmed or analysed."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/late-payment-of-government-debts-interest-regulations-2014","history":"/api/acts/late-payment-of-government-debts-interest-regulations-2014/history","analysis":"/api/acts/late-payment-of-government-debts-interest-regulations-2014/analysis","conflicts":"/api/acts/late-payment-of-government-debts-interest-regulations-2014/conflicts","importantCases":"/api/acts/late-payment-of-government-debts-interest-regulations-2014/important-cases","documents":"/api/acts/late-payment-of-government-debts-interest-regulations-2014/documents"}}