{"id":"F2018L00166","name":"Social Services Laws (Present Value of Unpaid Amount – Interest Rate) Determination 2018","slug":"social-services-laws-present-value-of-unpaid-amount-interest-rate-determination-2018","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439488,"registerId":"F2018L00166-fast-fetch-1775955497065","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Social Services Laws (Present Value of Unpaid Amount – Interest Rate) Determination 2018","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.jpeg)\n\n \n\nSocial Services Laws (Present Value of Unpaid Amount – Interest Rate) Determination 2018\n\n \n\n \n\n \n\nI, Dan Tehan, Minister for Social Services, make the following Determination.\n\n \n\n \n\nDated 27 February 2018 \n\nDan Tehan\n\nMinister for Social Services\n\n \n\n \n\n \n\nContents\n\n1 Name\n\n2 Commencement\n\n3 Authority for this Determination\n\n4 Authority for Schedule 1 to this Determination\n\n5 Schedules\n\n6 Annual interest rate\n\nSchedule 1—Amendments 2\n\nPaid Parental Leave Rules 2010 2\n\nSchedule 2—Repeals 3\n\nSocial Security (Present Value of Unpaid Amounts—Interest Rate) Determination (No. 1) 3\n\nFamily Assistance (Present Value of Unpaid Amount—Interest Rate) Determination 2018  3\n\n \n\n \n\n1  Name\n\n  This instrument is the Social Services Laws (Present Value of Unpaid Amount –Interest Rate) Determination 2018.\n\n2  Commencement\n\n  This Determination commences on 1 March 2018.\n\n3  Authority for this Determination\n\n  This Determination, other than Schedule 1, is made under:\n\n1.     section 1237AAB of the Social Security Act 1991;\n2.     section 43E of the Student Assistance Act 1973; and\n3.     section 100 of the A New Tax System (Family Assistance) (Administration) Act 1999.\n\n\n4  Authority for Schedule 1 to this Determination\n\n  Schedule 1 to this Determination is made under section 198 of the Paid Parental Leave Act 2010.  \n\n5  Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n6  Annual interest rate\n\n1.    For the definition of interest in the subsections specified in subsection (2), the specified annual rate of interest is 5%.\n2.    The following subsections are specified:\n\n\n1.     subsection 1237AAB(6) of the Social Security Act 1991;\n2.     subsection 43E(6) of the Student Assistance Act 1973;\n3.     subsection 100(6) of the A New Tax System (Family Assistance) (Administration) Act 1999.\n\n\n \n\nSchedule 1—Amendments\n\nPaid Parental Leave Rules 2010\n\n1  At the end of Division 4.3.2\n\n \n\nAdd:\n\n \n\nDivision 4.3.3 Waiver of debts – settlement of civil actions\n\n \n\n4.22 Settlement interest\n\n \n\nFor the definition of settlement interest in subsection 198(6) of the Act, the prescribed annual rate of interest is 5%.\n\n \n\n\n\n\nSchedule 2—Repeals\n\nSocial Security (Present Value of Unpaid Amounts—Interest Rate) Determination (No. 1)\n\n1  The whole of the instrument\n\nRepeal the instrument.\n\nFamily Assistance (Present Value of Unpaid Amount—Interest Rate) Determination 2018\n\n2  The whole of the instrument\n\nRepeal the instrument.\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument continues the established function of prescribing an annual interest rate for present value and settlement interest calculations rather than expanding legal scope. Section 6 prescribes the 5% rate for the listed subsections; Schedule 1 extends the same prescription to the Paid Parental Leave Act (s198); Schedule 2 repeals prior determinations and replaces them with this single-rate instrument."},"complexity_factors":["Narrow numerical adjustment: prescribes one fixed annual rate (5%) rather than complex formulae (see section 6(1)-(2)).","Cross‑statutory application: the rate applies across multiple Acts and subsections, requiring coordinated use by different agencies (ss 3, 4, 6(2)).","Schedule linkage: adds a Paid Parental Leave definition (Schedule 1, using s198 of the Paid Parental Leave Act) introducing the same rate for settlement interest.","Repeals prior instruments: Schedule 2 repeals earlier determinations, so implementers must replace prior references and administrative settings.","Low administrative burden but operational effect: agencies must update calculation systems and communications to recipients/debtors; rate change alters payment math and settlement incentives.","Legal certainty: simple statutory text reduces interpretive ambiguity, but accuracy depends on correct cross‑referencing to the specified subsections."],"plain_english_summary":"This Determination fixes a single annual interest rate of 5% to be used when calculating the present value of unpaid amounts under specified social security, student assistance and family assistance laws, and for settlement interest under the Paid Parental Leave Act. It starts 1 March 2018 and repeals earlier instruments that set those rates. It affects agencies, recipients and debtors by determining how unpaid liabilities are discounted and by changing incentives to settle or defer payments."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":true,"description":"The original scope was limited to Social Security, Student Assistance, and Family Assistance debts. This Determination expands the scope by adding Paid Parental Leave debts (Schedule 1) for the first time, creating a consolidated interest rate regime across four payment areas rather than three. It also consolidates what were previously two separate Determinations into one instrument, effectively merging parallel regulatory streams."},"complexity_factors":["Very short instrument (approximately 1.5 pages of substantive content)","Only 6 operative sections plus 2 short schedules","Single, uniform interest rate (5%) applied across all contexts","No defined terms section - relies on definitions in parent Acts","Minimal conditional logic - straightforward 'the rate is X' formulation","Simple amendment structure (add one section, repeal two instruments)","No nested exceptions or complex cross-referencing beyond citing parent Act sections"],"plain_english_summary":"This Determination fixes the discount rate at 5% per year for calculating the present value of unpaid debts under Australia’s social security, family assistance, student assistance and paid parental leave laws. It affects people with Centrelink-style overpayments and the agencies that calculate settlements or court-ordered debts. The instrument also consolidates and replaces two older Determinations and formally brings Paid Parental Leave into the present-value framework."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/social-services-laws-present-value-of-unpaid-amount-interest-rate-determination-2018","history":"/api/acts/social-services-laws-present-value-of-unpaid-amount-interest-rate-determination-2018/history","analysis":"/api/acts/social-services-laws-present-value-of-unpaid-amount-interest-rate-determination-2018/analysis","conflicts":"/api/acts/social-services-laws-present-value-of-unpaid-amount-interest-rate-determination-2018/conflicts","importantCases":"/api/acts/social-services-laws-present-value-of-unpaid-amount-interest-rate-determination-2018/important-cases","documents":"/api/acts/social-services-laws-present-value-of-unpaid-amount-interest-rate-determination-2018/documents"}}