sec.306NInterest

### sec.306N Interest A court can not order the payment of interest on an award for general damages. Interest awarded on damages compensating past monetary loss— must not be more than interest at the appropriate rate; and must be related in an appropriate way to the period over which the loss was incurred. The appropriate rate is the rate for 10 year Treasury bonds published by the Reserve Bank of Australia under ‘Interest rates and yields—capital market’ as at the beginning of the quarter in which the award of interest is made. Suppose that past monetary loss consists of medical expenses that have been incurred at a uniform rate over a particular period. The interest to be awarded would be calculated under the following formula— A = am/100 x p x 0.5 where— A is the amount of the award of interest. a is a percentage rate decided by the court subject to the limit fixed in subsection (2) . m is the aggregate of the medical expenses. p is the period over which the medical expenses have been incurred (expressed in years). s 306N ins 2010 No. 24 s 21 (sec.306N-ssec.1) A court can not order the payment of interest on an award for general damages. (sec.306N-ssec.2) Interest awarded on damages compensating past monetary loss— must not be more than interest at the appropriate rate; and must be related in an appropriate way to the period over which the loss was incurred. (sec.306N-ssec.3) The appropriate rate is the rate for 10 year Treasury bonds published by the Reserve Bank of Australia under ‘Interest rates and yields—capital market’ as at the beginning of the quarter in which the award of interest is made. Suppose that past monetary loss consists of medical expenses that have been incurred at a uniform rate over a particular period. The interest to be awarded would be calculated under the following formula— A = am/100 x p x 0.5 where— A is the amount of the award of interest. a is a percentage rate decided by the court subject to the limit fixed in subsection (2) . m is the aggregate of the medical expenses. p is the period over which the medical expenses have been incurred (expressed in years). - (a) must not be more than interest at the appropriate rate; and - (b) must be related in an appropriate way to the period over which the loss was incurred.