7.6.9 Summary of old administrative charge

7.6.9.1 — Prior to 1 July 2001, an administrative charge was applied under Section 205 [2] VEA where a debt:

• arose due to a breach of the VEA, such as a failure to notify within the notification period; and
• was greater than $200; and
• was not repaid within 3 months after the person was advised in writing of the amount of the debt.

Note:Prior to 1 July 2001 there was no penalty interest provision under the VEA.

7.6.9.2 — The administrative charge was a one-off charge, calculated by adding $15 + 10% of the balance outstanding after 3 months. The total amount of the charge could not exceed $515.

Example

If a debt of $250 was outstanding after 3 months, the administrative charge would be $40 (i.e.15 + 0.10 ? 250 = 40).

7.6.9.3 — Prior to 1 July 2001, penalty interest was imposed on social security debts under the Social Security Act 1991 (SSA) when the person:

• was not in payment; and
• had not repaid the debt; or
• had not entered into an arrangement to repay the debt within a timeframe negotiated by the pensioner and the delegate.

Note:There was no administrative charge provision under the SSA.