65‑5 Penalty interest65‑5 Penalty interest

65‑5 Penalty interest

(1) This section: (a) is made for the purposes of paragraph 65‑50(a) of the Insolvency Practice Schedule (Bankruptcy); and (b) applies if: (i) the trustee of a regulated debtor’s estate pays money out of the administration account in contravention of subsection 65‑25(1) of the Insolvency Practice Schedule (Bankruptcy); and (ii) the amount exceeds $50; and (iii) the trustee does not have a reasonable excuse for doing so. (2) The trustee must, by way of penalty, pay interest to the Commonwealth at the rate of 20% per annum on the amount for the period: (a) beginning at the start of the day that the amount was paid out of the administration account; and (b) ending at the end of the day that an amount equal to that amount is paid into the administration account by the trustee.