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