57Interest payable on recoverable amounts

57 Interest payable on recoverable amounts

Scope (1) This section applies if: (a) an amount (the principal sum) is recoverable as a debt due to the Commonwealth from a person or estate under section 56 or 56A; and (b) the Chief Executive Medicare has given a written notice to the person or estate claiming the amount as a debt due to the Commonwealth. Interest payable (2) Interest is payable on the amount of the principal sum that remains unpaid from time to time if: (a) a repayment arrangement in relation to the principal sum was entered into during the relevant period and there is a default (whether before or after the end of the relevant period) in repaying all or part of the principal sum as required by the arrangement; or (b) at the end of the relevant period, a repayment arrangement has not been entered into and all or part of the principal sum remains unpaid. (3) For the purposes of subsection (2), the relevant period is: (a) the period of 3 months beginning on the day after the written notice is given to the person or estate under paragraph (1)(b); or (b) such longer period as the Chief Executive Medicare allows. (4) Interest under subsection (2) is payable from: (a) the day after the end of the relevant period; or (b) such later day ordered by a court in any proceedings instituted by the Commonwealth to recover an amount due under this section. (5) Interest under subsection (2): (a) is payable at the rate prescribed from time to time for the purposes of subsection 129AC(2) of the Health Insurance Act 1973; and (b) is recoverable as a debt due to the Commonwealth from the person or estate. Definition (6) In this section:

repayment arrangement, in relation to a principal sum, means an arrangement entered into by the Chief Executive Medicare and a person, or the person’s estate, for the repayment of the principal sum.