15Penalty for late payment

15 Penalty for late payment

(1) If any levy or charge in relation to collection products remains unpaid after the time when it became due for payment, there is payable by the producer to the Commonwealth, by way of penalty accruing from the time the levy or charge became due for payment until it is paid in full, an amount worked out as follows: (a) during the month in which the levy or charge became due for payment the amount of penalty accrues at the rate of 2% per month on the levy or charge due; (b) during the next and each subsequent month the amount of penalty consists of the sum of each amount that accrued during a previous month and the amount accruing during that month at the rate of 2% per month on the sum of the amount of levy or charge then payable and penalty payable at the end of the previous month.

Note: See also subsection (5).

(2) Where: (a) an intermediary deducts an amount under subsection 8(1) in relation to the unpaid levy or charge on any collection products; and (b) the intermediary does not pay the amount deducted to the Commonwealth, a collecting authority or a collecting organisation at or before the time when the levy or charge became due for payment; there is payable by the intermediary to the Commonwealth, by way of penalty accruing from the time the levy or charge became due for payment until the amount deducted is paid to the Commonwealth, an amount worked out as follows: (c) during the month in which the levy or charge became due for payment the amount of penalty accrues at the rate of 2% per month on the amount deducted; (d) during the next and each subsequent month the amount of penalty consists of the sum of each amount that accrued during a previous month and the amount accruing during that month at the rate of 2% per month on the sum of the unpaid amount deducted and penalty payable at the end of the previous month. (3) Where: (a) a person purchases prescribed goods or services in respect of a collection product of a particular kind; and (b) a person fails to pay to the seller of those goods or services an amount on account of levy or charge (in this subsection called the unpaid amount) in accordance with subsection 9(2) within the period prescribed for the purposes of that subsection; there is payable to the Commonwealth by the person, by way of penalty accruing from the end of that period until the unpaid amount is paid to the seller, an amount worked out as follows: (c) during the month in which that period ends the amount of penalty accrues at the rate of 2% per month on the unpaid amount; (d) during the next and each subsequent month the amount of penalty consists of the sum of each amount that accrued during a previous month and the amount accruing during that month at the rate of 2% per month on the sum of the unpaid amount and penalty payable at the end of the previous month. (4) Where: (a) a person who sells prescribed goods or services has received an amount on account of levy or charge; and (b) that person does not pay the amount received to the Commonwealth before the end of the period within which, under subsection 9(1), it should have been so paid; there is payable to the Commonwealth by that person, by way of penalty accruing from the end of that period until the amount is so paid to the Commonwealth, an amount worked out as follows: (c) during the month in which that period ends the amount of penalty accrues at the rate of 2% per month on the amount received; (d) during the next and each subsequent month the amount of penalty consists of the sum of each amount that accrued during a previous month and the amount accruing during that month at the rate of 2% per month on the sum of the amount received and penalty payable at the end of the previous month. (5) In respect of a collection product prescribed by the regulations, subsection (1) has effect as if a reference to the producer included a reference to the processor.