22Government co‑contribution increased by interest amount if underpaid amount due to administrative error

22 Government co‑contribution increased by interest amount if underpaid amount due to administrative error

(1) This section applies if: (a) the Commissioner makes a determination under section 19 that an underpaid amount is to be paid in respect of a person for an income year; and (b) the determination is made on the basis that a particular amount is the correct amount of the Government co‑contribution payable in respect of the person for the income year; and (c) the determination is necessary to correct an administrative error. (2) The payment shortfall is the difference between: (a) the amount referred to in paragraph (1)(b); and (b) the sum of the amounts that have already been paid by way of Government co‑contribution in respect of the person for the income year before the determination under section 19 is made. (3) The amount of the Government co‑contribution in respect of the person for the income year is increased by the amount of interest worked out under subsection (4). (4) The interest is to be calculated: (a) on the amount of the payment shortfall; and (b) for the period from the payment date for the Government co‑contribution (see subsection 17(2)) until the payment date for the underpaid amount (see subsection 21(2)); and (c) on a daily basis; and (d) at the base interest rate for the day on which the interest is calculated. (5) The regulations: (a) may provide that an error of a kind specified in the regulations is an administrative error for the purposes of this section; and (b) may provide that an error of a kind specified in the regulations is not an administrative error for the purposes of this section.