87ZAInterest on damages

87ZA Interest on damages

(1) A court must not, in a proceeding to which this Part applies, order the payment of interest on personal injury damages for:

(a) non‑economic loss; or

(b) gratuitous attendant care services for the plaintiff; or

(c) loss of the plaintiff’s capacity to provide gratuitous attendant care services to other persons.

(2) If, in a proceeding to which this Part applies, a court is satisfied that interest is payable on personal injury damages of another kind, the rate of interest to be used in working out the interest is:

(a) the rate of interest prescribed by the regulations; or

(b) if no rate is prescribed—the 10‑year benchmark bond rate on the day on which the court determines the personal injury damages.

(3) This section does not affect the payment of interest on a debt under a judgment or order of a court.

(4) In this section:

10‑year benchmark bond rate, on a day, means:

(a) if the day occurs on or after 1 March in a particular year and before 1 September in that year—the Commonwealth Government 10‑year benchmark bond rate:

(i) as published by the Reserve Bank of Australia in the Reserve Bank of Australia Bulletin (however described); and

(ii) applying on the first business day of January in that year; or

(b) otherwise—the Commonwealth Government 10‑year benchmark bond rate, as so published, applying on the first business day of July in the preceding year.

business day means a day other than a Saturday, a Sunday or a public or bank holiday in any State, the Australian Capital Territory or the Northern Territory.