16Interest payable on recovery of costs of incidents

16 Interest payable on recovery of costs of incidents

(1)  For the purposes of this regulation –

quarter means a period of 3 months commencing on 1 July, 1 October, 1 January or 1 April in any year;

reference rate, in relation to a relevant month, means the monthly average of the Bank Accepted Bill rate: 90 days, as published by the Reserve Bank of Australia, in respect of the second month of the quarter immediately before the relevant month;

relevant month means the month in which the day or days on which the interest is to be calculated falls.

(2)  For the purposes of section 55(4) of the Act, the prescribed rate of interest for each day on which the unpaid amount is due and owing is the daily rate payable for that day.

(3)  For the purposes of subregulation (2) , the daily rate is to be calculated in accordance with the following formula:

(4)  If costs are recoverable from a person under section 55(2) of the Act and the costs are not paid in full by the person within the period fixed by a notice under section 55(3) of the Act, interest accrues, on the amount unpaid, from the day after that period until the day on which the debt is paid in full, with both days inclusive.