(1) An amount by way of penalty is added to a debt due to the Commonwealth under this Chapter by a person in relation to a social security payment if:
(a) at the time the payment was made, the person:
(i) had attained the minimum age for youth allowance as defined by section 543A; and
(ii) had not reached pension age; and
Note: For pension age see subsections 23(5A), (5B), (5C) and (5D).
(b) the payment was:
(i) a social security benefit; or
(ii) a disability support pension; or
(iii) a wife pension; or
(iv) a widow B pension; or
(v) a pension PP (single); and
(c) the debt arose wholly or partly because the person had:
(i) refused or failed to provide information in relation to the person's income from personal exertion; or
(ii) knowingly or recklessly provided false or misleading information in relation to the person's income from personal exertion;
when required, under a provision of the social security law, to provide information in relation to the person's income from personal exertion.
Note: For income from personal exertion see subsection 8(1).
(2) The amount added by way of penalty is an amount equal to 10% of so much of the debt as arose because the person refused or failed to provide the information or provided the false or misleading information.
(2A) To avoid doubt, the amount added by way of penalty is part of the debt.
(3) An amount worked out under subsection (2) must be rounded down to the nearest 5 cents.
(4) This section does not apply if the Secretary is satisfied that the person had a reasonable excuse for refusing or failing to provide the information.
(5) This section does not apply in relation to a debt due to the Commonwealth under section 1229C.