282‑5 Interest on amounts recoverable282‑5 Interest on amounts recoverable

282‑5 Interest on amounts recoverable (1) If the Chief Executive Medicare has served, on an individual from whom an amount is recoverable or the legal personal representative of such an individual, or on a private health insurer from which an amount is recoverable, under subsection 282‑1(1) a notice claiming an amount as a debt due to the Commonwealth and: (a) an arrangement for the repayment of the amount has been entered into between the Chief Executive Medicare and the individual or the individual’s legal personal representative, or the private health insurer, as the case may be, within the period referred to in subsection (3), and there has been a default in payment of an amount required to be paid under the arrangement; or (b) at the end of the period such an arrangement has not been entered into and all or part of the amount remains unpaid; then, from and including the day after the end of the period, interest becomes payable on so much of the amount as from time to time remains unpaid. (2) Interest is payable: (a) at the rate of 15% per annum; or (b) if a lower rate is specified in the Private Health Insurance (Incentives) Rules for the purposes of this paragraph—that rate. (3) The period for entering into an arrangement under paragraph (1)(a) is the period of 3 months following the service of the notice under subsection (1), or such longer period as the Chief Executive Medicare allows. (4) Despite subsection (1), in any proceedings instituted by the Commonwealth for the recovery of an amount due under paragraph 282‑1(1)(h), the court may order that the interest payable under that paragraph is, and is taken to have been, so payable from and including a day later than the day referred to in subsection (1).