Commonwealth Consolidated Acts
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SOCIAL SECURITY ACT 1991 - SECT 1135
Effect of participation in pension loans scheme--creation of debt
(1) If the rate of the pension payable by operation of the pension loans
scheme is more than the rate that would have been received by the person but
for the operation of the scheme, the person owes a debt to the Commonwealth.
(3) This is how to work out the amount of the debt owed by the person
from time to time:
Step 1. Work out the sum of the amount of pension received by
the person from time to time under the pension loans scheme: the result is the
primary loan amount .
Step 2. Add to the primary loan amount the amount of any
registration costs payable by the person under subsection 1143(4): the
result is the registration cost adjusted amount .
Step 3. Take away from the registration cost adjusted amount the
sum of the amount of pension (if any) that would have been received by the
person but for the operation of the scheme: the result is the basic amount of
Step 4. Add to the basic amount of debt the amount of interest
payable. The interest payable is compound interest at the rate fixed under
subsection (4) and compounding fortnightly: the result is the total
amount of debt .
Step 5. From the total amount of debt take away any amount of
the debt already paid to the Commonwealth: the result is the current amount of
debt owed by the person.
(4) The rate at which compound interest is payable under
subsection (3) is the rate fixed from time to time by the Minister by
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