Commonwealth of Australia
Social Security Act 1991
Pension Loans Scheme—Rate of Simple Interest Determination 1997
I, JOCELYN MARGARET NEWMAN, Minister for Social Security, make this determination under subsection 1135 (4) of the Social Security Act 1991, as continued in effect by subclause 86 (2) of Schedule 1A to that Act.
Dated 22 December 1997.
JOCELYN NEWMAN
Minister for Social Security
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1. Citation
This determination may be cited as the Pension Loans Scheme—Rate of Simple Interest Determination 1997.
2. Commencement
This determination commences on 25 December 1997.
3. Definition
In this determination:
Act means the Social Security Act 1991.
4. Rate of simple interest
For subsection 1135 (4) of the Act, as continued in effect by subclause 86 (2) of Schedule 1A to the Act, the rate of interest is 7%.
5. Application
This determination applies only to people who are participating in the pension loans scheme (the “previous pension loans scheme”) in operation under the provisions of the Act as continued in effect by subclause 86 (2) of Schedule 1A to the Act.
6. Revocation
The determination made under subsection 6AB (1) of the Social Security Act 1947, as continued in effect by subclause 4 (1) of Schedule 1A to the Act, on 27 May 1985, and published in the Gazette on 29 May 1985, is revoked.
Overview
The Pension Loans Scheme—Rate of Simple Interest Determination 1997 is a legislative instrument made under the Social Security Act 1991. Enacted by Jocelyn Margaret Newman, the Minister for Social Security, this determination was introduced to set the rate of simple interest applicable to the pension loans scheme, specifically for those who were participating in what was referred to as the "previous pension loans scheme". The primary policy objective of this determination was to ensure that the interest rate was clearly defined and consistent for all participants in the scheme, thus providing clarity and predictability in financial obligations related to the pension loans. The determination established a rate of 7% for the simple interest, which applied exclusively to individuals involved in the pension loans scheme governed by the Social Security Act 1991.
Scope and Application
The Pension Loans Scheme—Rate of Simple Interest Determination 1997 applies specifically to individuals who are currently participating in the pension loans scheme, as governed by the Social Security Act 1991. This legislation sets the rate of interest for loans made under the scheme at 7% and is effective from 25 December 1997. It does not apply to any other types of loans or financial arrangements outside the scope of the pension loans scheme. The Act's application is limited to those who are actively participating in the scheme as defined by the Social Security Act 1991, ensuring that only eligible participants are governed by this specific interest rate. The Act also revokes a prior determination made under subsection 6AB(1) of the Social Security Act 1947, consolidating the current rate of interest for the pension loans scheme.
Key Provisions
The Pension Loans Scheme—Rate of Simple Interest Determination 1997 (sections 1-6) establishes the interest rate for the pension loans scheme under the Social Security Act 1991. Specifically, section 4 sets the rate of interest at 7% for loans made under the previous pension loans scheme. This determination applies only to individuals participating in the scheme as outlined in section 5, and it commenced on 25 December 1997 as per section 2. Additionally, section 6 revokes a previous determination made under the Social Security Act 1947 on 27 May 1985.
The obligations imposed by this legislation require that the interest rate for loans under the pension loans scheme be set at 7%. This applies to all participants of the scheme who are receiving loans as per the conditions of the Social Security Act 1991. The determination ensures clarity and consistency in the application of interest rates to those involved in the scheme.
The legislation does not explicitly state any offences or penalties for breaches of its provisions. However, any non-compliance with the interest rate specified could potentially lead to disputes or legal challenges regarding the repayment terms of the loans. The Social Security Act 1991, which this determination supports, includes various enforcement mechanisms for ensuring compliance with its provisions, including potential penalties for non-compliance. While this particular determination does not outline specific penalties, breaches of the interest rate could result in civil or administrative actions under the overarching Social Security Act 1991.