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4.2.1 General Provisions
The Commonwealth commences paying subsidy from the date the whole of the advance has been "drawn down" by the Bank. As progress payments are no longer an option for DSH borrowers, this means the settlement date in all cases.
The general policy is to ensure payment of the subsidy is made in accordance with subclause 11.5 of the Agreement.
To do this the calculation of the relevant benchmark interest rate must be completed on the first of each month. This gives Westpac enough time to input the correct benchmark rate into its system.
In addition to this, the verification (tagging) process must be completed no later than three business days prior to the due date for payment, to enable sufficient time for payment of the subsidy to the Bank. The due date for payment is 11.00am on either the 18th of each month or seven (7) business days after receiving the invoice, whichever is the later. A business day is defined in the Agreement as a day on which the banks are open for business in Sydney.
The subsidy on a DSH loan must cease the day prior to the payment of the first DHOAS subsidy payment. Action in accordance with section 24A is not a reviewable decision.