Section 52ZC — Veterans' Entitlements Act 1986: Effect of participation in home equity access scheme—creation of debt

(1) If the rate of the pension payable by operation of the home equity access scheme is more than the rate that would have been received by the person but for the operation of the scheme, the person owes a debt to the Commonwealth. (3) This is how to work out the amount of the debt owed by the person from time to time: Method statement Step 1. Work out the sum of the amount of pension received by the person from time to time under the home equity access scheme: the result is the primary loan amount. Step 1A. Add to the primary loan amount the amount of any home equity access scheme advance payments received by the person: the result is the advance payment adjusted amount. Step 2. Take away from the advance payment adjusted amount the sum of the amount of pension (if any) that would have been received by the person but for the operation of the scheme: the result is the basic amount of debt. Step 3. Add to the basic amount of debt the amount of interest payable. The interest payable is compound interest at the rate fixed by the legislative instrument made under subsection 1135(4) of the Social Security Act 1991 and compounding fortnightly: the result is the amount of debt including interest. Step 4. Add to the amount of debt including interest the amount of any registration costs payable by the person under subsection 52ZL(4): the result is the total amount of debt. Step 5. From the total amount of debt take away any amount of the debt already paid to the Commonwealth: the result is the current amount of debt owed by the person.