Version No. 014
Penalty Interest Rates Act 1983
No. 9967 of 1983
Version incorporating amendments as at
17 May 2012
TABLE OF PROVISIONS
Section
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Short title
Penalty interest rate
Repealed
Interest on moneys etc. where no rate contracted
Interest on debts or certain sums recovered
Interest on actions for debt or damages
Interest on solicitors' costs
Interest on judgments
Interest on judgments
Interest on judgments
Interest on purchase money in arrears
Interest on purchase money in arrears
Interest on judgments and orders
Validation of certain orders for the payment of interest
Re-opening of cases
Reference to maximum rate deemed to be fixed rate
Validity of certain calculations of penalty interest
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ENDNOTES
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1. General Information
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2. Table of Amendments
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3. Explanatory Details
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i
Version No. 014
Penalty Interest Rates Act 1983
No. 9967 of 1983
Version incorporating amendments as at
17 May 2012
An Act to amend the Supreme Court Act 1958, the County
Court Act 1958, the Property Law Act 1958, the Transfer of
Land Act 1958 and the Magistrates' Courts Act 1971 with
respect to the Payment of Interest on certain unpaid Moneys, to
make Provision for Rates of Interest payable under certain
Instruments and for Purposes connected therewith.
BE IT ENACTED by the Queen's Most Excellent Majesty by
and with the advice and consent of the Legislative Council
and the Legislative Assembly of Victoria in this present
Parliament assembled and by the authority of the same as
follows (that is to say):
1 Short title
(1) This Act may be cited as the Penalty Interest
Rates Act 1983.
(2) The Supreme Court Act 1958 is in this Act
referred to as the Principal Act.
(3) This Act shall be deemed to have come into
operation on 1 July 1983.
2 Penalty interest rate
(1) The penalty interest rate is the interest rate
expressed as a percentage fixed by the AttorneyGeneral from time to time by notice published in
the Government Gazette.
1
S. 2
substituted by
No. 58/1989
s. 3.
Penalty Interest Rates Act 1983
No. 9967 of 1983
s. 4
(2) The Attorney-General must determine the penalty
interest rate to be fixed by—
(a) obtaining from time to time a
recommendation from the Treasurer as to an
appropriate institutional rate of interest,
which must be a rate—
(i) which is charged for loans or paid for
borrowings by a public or commercial
institution; and
(ii) which, in the opinion of the Treasurer,
reflects prevailing commercial rates of
interest; and
(b) determining, after consultation with the
Treasurer, whether the recommended
institutional rate should be adjusted to
include a penalty element, and, if so, the
nature and size of the adjustment; and
(c) adding or subtracting the adjustment (if any)
to or from the institutional rate.
(3) If there is any change to the percentage of the
institutional rate, the Attorney-General may fix a
new penalty interest rate to take account of the
change and may do this without complying with
subsection (2).
S. 3
repealed by
No. 58/1989
s. 3.
*
*
*
*
*
4 Interest on moneys etc. where no rate contracted
In section 77 of the Principal Act for the words
"maximum rate approved by the Australian Loan
Council at the time judgment is entered or an
order made for long-term borrowing for new
public securities issued by semi-government
authorities" there shall be substituted the
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Penalty Interest Rates Act 1983
No. 9967 of 1983
s. 5
expression "rate for the time being fixed under
section 2 of the Penalty Interest Rates Act
1983".
5 Interest on debts or certain sums recovered
In section 78(1) of the Principal Act for the words
"the maximum rate approved by the Australian
Loan Council at the time the judgment is entered
or the order made for long-term borrowing for
new public securities issued by semi-government
authorities" there shall be substituted the
expression "the rate for the time being fixed under
section 2 of the Penalty Interest Rates Act
1983".
6 Interest on actions for debt or damages
In section 79A(1) of the Principal Act for the
words "the maximum rate approved by the
Australian Loan Council at the time the judgment
is entered or the order made for long-term
borrowing for new public securities issued by
semi-government authorities" there shall be
substituted the expression "the rate for the time
being fixed under section 2 of the Penalty
Interest Rates Act 1983".
7 Interest on solicitors' costs
In section 88 of the Principal Act for the words "at
the maximum rate then approved by the
Australian Loan Council for long-term borrowing
for new public securities issued by semigovernment authorities" there shall be substituted
the expression "at the rate for the time being fixed
under section 2 of the Penalty Interest Rates Act
1983".
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Penalty Interest Rates Act 1983
No. 9967 of 1983
s. 8
8 Interest on judgments
In section 161 of the Principal Act for the words
"maximum rate approved by the Australian Loan
Council at the time the judgment is entered or the
order made for long-term borrowing for new
public securities issued by semi-government
authorities" there shall be substituted the
expression "rate for the time being fixed under
section 2 of the Penalty Interest Rates Act
1983".
9 Interest on judgments
In section 73(4) of the County Court Act 1958
for the words "maximum rate approved by the
Australian Loan Council at the time judgment is
entered or the order made for long-term borrowing
for new public securities issued by semigovernment authorities" there shall be substituted
the expression "rate for the time being fixed under
section 2 of the Penalty Interest Rates Act
1983".
10 Interest on judgments
In section 86(4) of the County Court Act 1958
for the words "maximum rate approved by the
Australian Loan Council at the time the judgment
is entered for long-term borrowing for new public
securities issued by semi-government authorities"
there shall be substituted the expression "rate for
the time being fixed under section 2 of the
Penalty Interest Rates Act 1983".
11 Interest on purchase money in arrears
In the Third Schedule to the Property Law Act
1958 in condition 4, for the words "maximum rate
approved by the Australian Loan Council at the
time of the default for long-term borrowing for
new public securities issued by semi-government
authorities" there shall be substituted the
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Penalty Interest Rates Act 1983
No. 9967 of 1983
s. 12
expression "rate for the time being fixed under
section 2 of the Penalty Interest Rates Act
1983".
12 Interest on purchase money in arrears
In the Seventh Schedule to the Transfer of Land
Act 1958 in condition 4, for the words "maximum
rate approved by the Australian Loan Council at
the time of the default for long-term borrowing for
new public securities issued by semi-government
authorities" there shall be substituted the
expression "rate for the time being fixed under
section 2 of the Penalty Interest Rates Act
1983".
13 Interest on judgments and orders
For section 50(4) of the Magistrates' Courts Act
1971 there shall be substituted the following
subsection:
"(4) Every judgment debt shall carry interest at
the rate for the time being fixed under
section 2 of the Penalty Interest Rates Act
1983 from the time the judgment is entered
or order made and the amount of the interest
shall be stated in the body of and may be
levied under any warrant of distress or
commitment issued for the enforcement of
the judgment or order.".
14 Validation of certain orders for the payment of
interest
Every order made under the provisions of any of
the enactments referred to in the foregoing
provisions of this Act on or after 1 July 1983 and
before the day on which this Act is assented to for
the payment of interest at a rate not exceeding the
maximum rate last approved by the Australian
Loan Council for long-term borrowing for new
public securities issued by semi-government
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Penalty Interest Rates Act 1983
No. 9967 of 1983
s. 15
authorities shall be and be taken to be a valid
order for the payment of interest notwithstanding
the cessation by the Australian Loan Council of
approval of a maximum rate of interest for longterm borrowing for new public securities issued
by semi-government authorities.
15 Re-opening of cases
Any judgment creditor who is aggrieved at the
refusal or failure of any Court to make an order
for the payment of interest under the provisions of
any of the enactments referred to in the foregoing
provisions of this Act because of the cessation by
the Australian Loan Council of the approval of a
maximum rate of interest for long-term borrowing
for new public securities issued by semigovernment authorities may without any further or
other authority than the provisions of this section
at any time apply to the Court for the making of
such an order and the Court on any such
application may in accordance with the provisions
of that enactment make an order for the payment
of interest at a rate not exceeding the rate of
158 per centum per annum.
16 Reference to maximum rate deemed to be fixed rate
A reference in a contract, agreement, mortgage,
lease or other instrument made or entered into
before the date on which this Act receives the
Royal Assent to the maximum rate approved by
the Australian Loan Council for long-term
borrowing for new public securities issued by
semi-government authorities shall, unless the
contrary intention appears, be deemed to be a
reference to the rate for the time being fixed under
section 2 of the Penalty Interest Rates Act 1983.
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Penalty Interest Rates Act 1983
No. 9967 of 1983
s. 17
17 Validity of certain calculations of penalty interest
If, before the commencement of the Appeal Costs
and Penalty Interest Rates Acts (Amendment)
Act 2004—
(a) a notice published in the Government
Gazette purported to fix the penalty interest
rate commencing on a date preceding the
date of publication of the notice; and
(b) penalty interest at the rate purported to have
been fixed has been calculated from the date
referred to in the notice—
the calculation of interest from that date is not by
that reason alone invalid.
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S. 17
inserted by
No. 34/2004
s. 8.
Penalty Interest Rates Act 1983
No. 9967 of 1983
Endnotes
ENDNOTES
1. General Information
The Penalty Interest Rates Act 1983 was assented on 22 November 1983
and came into operation on 1 July 1983: section 1(3).
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Penalty Interest Rates Act 1983
No. 9967 of 1983
Endnotes
2. Table of Amendments
This Version incorporates amendments made to the Penalty Interest Rates
Act 1983 by Acts and subordinate instruments.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Penalty Interest Rates (Amendment) Act 1989, No. 58/1989
Assent Date:
22.8.89
Commencement Date:
22.8.89
Current State:
All of Act in operation
Appeal Costs and Penalty Interest Rates Acts (Amendment) Act 2004,
No. 34/2004
Assent Date:
8.6.04
Commencement Date:
S. 8 on 9.6.04: s. 2
Current State:
This information relates only to the provision/s
amending the Penalty Interest Rates Act 1983
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Penalty Interest Rates Act 1983
No. 9967 of 1983
Endnotes
3. Explanatory Details
No entries at date of publication.
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