8.1.3 Funding contribution & late payments

When funding contribution is due for payment

Funding contributions payable by participating institutions and funders of last resort are due and payable on a business day specified in a notice provided by the Operator. The business day cannot be any sooner than 30 days after the date the notice is provided to the institution or funder of last resort.

Late payment penalty

If a participating institution or funder of last resort has not paid part or all of their funding contribution 30 days after the date that payment is due, the participating institution is liable for a late payment penalty on the remaining amount on the first day of the next calendar month.

To work out the late payment penalty:

Late payment penalties for a calendar month are due and payable at the end of the calendar month. The Operator can however, set a later due date for payment through a written notice to the participating institution or funder of last resort.

Payment of funding contribution & late payment penalty

Each of the following are payable to the Scheme on behalf of the Commonwealth:

• funding contribution
• late payment penalty.

Waiver of funding contribution & late payment penalty

The Scheme may, on behalf of the Commonwealth, waive part or all of a funding contribution or late payment penalty owed by a participating institution or funder of last resort. The Scheme must be satisfied there are exceptional circumstances justifying any waivers. A waiver can be initiated by either of the following:

• the Scheme, by its own initiative
• another person or institution, by written request using the approved form.

Note: If the amount of redress funding liability is waived for an application for redress, and a reassessment determination is later made for that application and accepted by the person, the Operator may on behalf of the Commonwealth reduce the participating institution’s or funder of last resort’s reassessed liability amount by that waived amount.

Internal review of decision to waive funding contribution or late payment penalty

A participating institution or funder of last resort that is dissatisfied with the Scheme's decision to waive (or not) a funding contribution or late payment penalty may request the Scheme to reconsider their decision through an internal review process.

A request for a review of the waiver decision must be:

• made in the approved form
• received within 21 days (or any further period as agreed by the Scheme), after the date of the notice of the decision, and
• clearly set out the reasons for making the request.

The request, when received by the Scheme, will be reviewed a person authorised to undertake the review and who was not involved in making the original waiver decision.

The Scheme has a review period of up to 30 business days (or longer as determined by the Operator in writing) to reconsider the decision, and either confirm, revoke or vary the decision as appropriate. If no decision is made within the review period, the original decision is taken to be confirmed the day after the end of the review period.

Following a review, the delegate must provide a written notice to the participating institution or funder of last resort with the final waiver decision and reasons for that decision.

Act reference: NRSAct section 153 When funding contribution is due for payment, section 154 Late payment penalty, section 155 Payment of funding contribution and late payment penalty, section 156 Waiver of funding contribution and late payment penalty, section 157 Review of decision about waiving funding contribution or penalty, section 71Z Crediting reassessment surplus to institutions and funders of last resort