C25/1997 PENSION LOANS SCHEME INTEREST RATE CHANGE

DATE OF ISSUE:  11 APRIL 1997

PENSION LOANS SCHEME INTEREST RATE CHANGE

Purpose

The purpose of this Departmental Instruction is to advise of a change to the rate of compound interest charged under the Pension Loans Scheme (PLS).

How PLS interest rate is changed

Under subsection 52ZC(4) of the Veterans' Entitlements Act 1986, compound interest is payable on a PLS debt to the Commonwealth at a rate fixed from time-to-time by the Minister for Social Security by determination in writing.

New PLS interest rate

The rate of interest payable for a debt owed by a person under the PLS was changed to 6.25% compound interest by the Minister for Social Security in a determination which commenced on 20 March 1997. This determination was notified in the Commonwealth of Australia Special Gazette No. S105, 20 March 1997.

Any Questions

Any questions about the new PLS interest rate should be directed to Martin Dibb on telephone 06-2896751, fax. 06-2894853,  LAN C-C-BA-02.

MURRAY HARRISON

BRANCH HEAD

INCOME SUPPORT

9 April 1997