Page 2344 - Week 08 - Thursday, 7 June 1990
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(b) if interest is payable on the judgment debt - the amount that, but for this paragraph, would have been payable under subsection (3) shall be reduced -
(i) where the judgment is for an amount of rates - by the amount of interest on the judgment debt; or
(ii) where the judgment is for an amount that includes an amount of rates - by the amount that bears the same proportion to the amount of interest on the judgment debt as the amount of rates bears to the amount of the judgment debt.".
This Bill provides for changes to the urban, rural and land tax rates and the improvement of debt recovery and administrative measures. Clause 7, on page 3 of the Bill, deals with the continuation of the interest charges imposed on unpaid rates after judgment is entered in the courts. This amendment replaces subsection 4(A) under clause 7 with a similar subsection that provides for a situation where the court enters judgment for payment of an amount of rates or an amount that includes an amount of rates. New paragraph 4A(a) provides that the amount for rates or for a relevant amount, which may include other charges, is still due and payable notwithstanding that judgment was entered. New paragraph 4A(b) provides that, if interest is payable on the judgment debt, the amount which may include other charges which but for this paragraph would have been payable under subsection (3) shall be reduced.
In subsection 4A(b)(i), where the judgment applies to rates, the reduction will be by the amount of the interest applied to the judgment debt; in 4A(b)(ii), where the judgment is for an amount that includes an amount of rates which may include other charges, it will be by an amount that is in proportion to the amount of interest on the judgment debt as the amount of rates bears to the amount of the judgment debt.
Mr Speaker, these housekeeping provisions, which have been recommended by the Commissioner for ACT Revenue, tighten up the anomalies which occurred relating to interest on debts in a comparison between that charged by the ACT Government and that entered into in courts. I commend the amendment to the house.
MS FOLLETT (Leader of the Opposition) (5.58): Mr Speaker, I do not really oppose this amendment but I certainly do oppose the way in which it has been presented and explained. I do not have the explanatory memorandum on the amendment with me at the moment because I sent it out to try to get a bit of advice on it, but I have to say that even that is no more than a reiteration of the legalese that is in the amendment itself. It is no more explanatory than if it were written in Greek.
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