5Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid

5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid

(1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.

Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.

(2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.