Late Payment of Government Debts (Interest) Regulations 2014 (SA)

South Australia Late Payment of Government Debts (Interest) Regulations 2014 under the Late Payment of Government Debts (Interest) Act 2013

Contents 1 Short title 3 Interpretation 4 Designated contract 5 Default event 6 Minimum amount of interest Legislative history

1—Short title These regulations may be cited as the Late Payment of Government Debts (Interest) Regulations 2014. 3—Interpretation In these regulations— Act means the Late Payment of Government Debts (Interest) Act 2013. 4—Designated contract For the purposes of paragraph (a)(i) of the definition of designated contract in section 3(1) of the Act, the prescribed number of days is 15. 5—Default event For the purposes of section 5(1)(e) of the Act, the prescribed number of days is 15. 6—Minimum amount of interest (1) For the purposes of section 6(1) of the Act, the minimum amount of interest to which a supplier under the qualifying contract in relation to which a default event occurs is entitled is to be determined in accordance with the following formula:

where I is the minimum amount of interest payable to the supplier ND is equal to the number of days that make up the default period IA is the amount paid by or on behalf of the public authority on account of the invoice or claim that has been rendered by the supplier (exclusive of GST) PIR is the prescribed interest rate applying on the first day of the month in which the default period ends. (2) For the purposes of subregulation (1), the default period is the period beginning on the day immediately following the end of the designated payment period and ending on the day immediately preceding the day on which payment is made by or on behalf of the public authority. (3) For the purposes of subregulation (2), the day on which a payment is made by or on behalf of a public authority will be taken to be— (a) the day on which an electronic funds transfer is made to a financial institution for processing in order to make payment to the relevant supplier; or (b) the day on which payment is made by the use of a payment card or a credit card; or (c) the day on which a cheque is posted to the relevant supplier. (4) In this regulation— prescribed interest rate means a rate of 5% above the cash rate published by the Reserve Bank of Australia (expressed as an annual rate).