Commonwealth Numbered Acts Commonwealth Numbered Acts
1 Subsection 32C(4)
Omit "(other than under this section)".
2 Subsection 32C(5)
Repeal the subsection, substitute:
Limitations on power to give notice
(5) A notice under subsection (1) can only be given in respect of a dental service for which an amount was claimed under this Act in the period of 2 years immediately before the day a written request under subsection (4) was first given to the person in relation to one or more dental services specified in the notice.
3 After subsection 32C(7)
Insert:
(7A) If requested to do so under subsection (4), a person is authorised to produce any document relevant to the request, including a document containing health information (within the meaning of the Privacy Act 1988 ) about an individual.
4 Section 56A (heading)
Repeal the heading, substitute:
56A Recovery of amounts paid: notices to produce documents and administrative penalties
5 At the end of section 56A
Add:
Administrative penalties
(8) If:
(a) a person is given a notice under subsection 56G(1) of the person's liability to pay an administrative penalty; and
(b) the person does not pay the penalty by the day set out in the notice as the day by which the penalty becomes due for payment;
the amount set out in the notice is recoverable as a debt due to the Commonwealth from the person or the estate of the person.
6 Subsection 56C(1)
Omit "or (5)", substitute ", (5) or (8)".
7 At the end of section 56C
Add:
(5) Subsection (4) does not apply in relation to claiming an amount as a debt if the person or estate has notified the Chief Executive Medicare as mentioned in subsection 56D(1A) in relation to the debt.
8 After subsection 56D(1)
Insert:
(1A) Subsection (1) does not apply if the person or estate has notified the Chief Executive Medicare, in the form approved in writing by the Chief Executive Medicare, that the person or estate waives the right to review of the decision to claim the amount as a debt.
9 Subsection 56D(5)
After "decision", insert "(the reconsidered decision )".
10 Subsection 56D(6)
Repeal the subsection, substitute:
(6) A failure to comply with the requirements of subsection (5) does not affect the validity of the review or of the reconsidered decision.
(7) Applications may be made to the Administrative Appeals Tribunal for review of reconsidered decisions.
(8) However, subsection (7) applies only if a garnishee notice is given under subsection 58AA(2) in relation to the debt to which the reconsidered decision relates.
(9) Despite paragraph 29(1)(d) of the Administrative Appeals Tribunal Act 1975 , if a garnishee notice is given under subsection 58AA(2) in relation to the debt to which the reconsidered decision relates, an application mentioned in subsection (7) of this section must be made within the period of 28 days after the day the garnishee notice is given.
(10) To avoid doubt:
(a) a decision referred to in subsection (1) may be reviewed by the CEO under subsection (4) of this section once only; and
(b) a reconsidered decision takes effect:
(i) on the day specified in the reconsidered decision; or
(ii) if a day is not specified--on the day on which the reconsidered decision is made.
11 After section 56D
Insert:
56E Liability for administrative penalty
A person is liable for an administrative penalty for a dental service rendered by, or on behalf of, the person if:
(a) the Chief Executive Medicare has served notice (as mentioned in subsection 56C(4)) on the person claiming an amount (the total amount ) as a debt due to the Commonwealth; and
(b) the total amount consists of, or includes, an amount (the recoverable amount ) in respect of the service recoverable as a debt due to the Commonwealth from the person under any of the following provisions:
(i) subsection 56(2);
(ii) subsection 56A(1), (3) or (5); and
(c) the total amount is more than:
(i) $2,500; or
(ii) if a higher amount is prescribed by the regulations--that higher amount.
56F Amount of administrative penalty
(1) The amount of the administrative penalty for a dental service is worked out in accordance with this section.
Base penalty amount
(2) Subject to subsections (3) and (4), the amount (the base penalty amount ) of the administrative penalty for a dental service is 20% of the recoverable amount mentioned in paragraph 56E(b) in respect of the service.
Reductions in base penalty amount
(3) A person's base penalty amount for a dental service is reduced in accordance with the following table.
| Reductions in base penalty amount | ||
| Item | Column 1 | Column 2 |
|
| If ... | the base penalty amount is reduced by ... |
| 1 | before the Chief Executive Medicare contacts the person under subsection 32C(1) or (4) about the dental service, the person voluntarily tells the Chief Executive Medicare, or a Human Services employee, in the form approved in writing by the Chief Executive Medicare, that an amount paid, purportedly by way of benefit or payment under this Act, in respect of the service exceeds the amount (if any) that should have been paid | 100% |
| 2 | (a) after the Chief Executive Medicare contacts the person about the service under subsection 32C(4); and (b) before the Chief Executive Medicare gives a notice to the person under subsection 32C(1) that specifies the service; and (c) before the Chief Executive Medicare gives notice to the person under subsection 56C(1) of a decision to claim an amount as a debt in relation to the service; the person voluntarily tells the Chief Executive Medicare, or a Human Services employee, in the form approved in writing by the Chief Executive Medicare, that an amount paid, purportedly by way of benefit or payment under this Act, in respect of the service exceeds the amount (if any) that should have been paid | 50% |
| 3 | (a) after the Chief Executive Medicare gives a notice to the person under subsection 32C(1) that specifies the service; and (b) before the end of the period specified in the notice; and (c) before the Chief Executive Medicare gives notice to the person under subsection 56C(1) of a decision to claim an amount as a debt in relation to the service; the person tells the Chief Executive Medicare, or a Human Services employee, in the form approved in writing by the Chief Executive Medicare, that an amount paid, purportedly by way of benefit or payment under this Act, in respect of the service exceeds the amount (if any) that should have been paid | 25% |
Increases in base penalty amount
(4) A person's base penalty amount for a dental service is increased by 25% if:
(a) the Chief Executive Medicare gives a notice to the person under subsection 32C(1) that specifies the service; and
(b) the person does not comply with the notice in respect of the service, or any other dental service specified in the notice, within the period specified in the notice.
Interaction between reduction and increase
(5) If a base penalty amount is subject to both a reduction and an increase, apply the reduction first.
56G Notice of administrative penalty and review of assessments
(1) The Chief Executive Medicare must give to a person who the Chief Executive Medicare has assessed, in accordance with sections 56E and 56F, is liable for an administrative penalty, written notice of the assessment which includes the following:
(a) the person's liability to pay an administrative penalty in respect of one or more dental services;
(b) the dental service to which each administrative penalty relates;
(c) if there is more than one dental service--the total of the administrative penalties;
(d) the day by which the penalty becomes due for payment (which must be at least 14 days after the day on which the notice is given);
(e) the fact that the notice is given under this section.
(2) The notice may also deal with a debt due to the Commonwealth under section 56 or 56A arising in relation to the dental service.
(3) A person may apply to the Administrative Appeals Tribunal for review of an assessment by the Chief Executive Medicare of the person's liability to pay an administrative penalty for which notice has been given under subsection (1).
(4) However, subsection (3) applies only if a garnishee notice is given under subsection 58AA(2) in relation to the debt to which the administrative penalty relates.
(5) Despite paragraph 29(1)(d) of the Administrative Appeals Tribunal Act 1975 , if a garnishee notice is given under subsection 58AA(2) in relation to the debt to which the administrative penalty relates, an application mentioned in subsection (3) of this section must be made within the period of 28 days after the day the garnishee notice is given.
56H Power to obtain information relating to a debt
(1) The Chief Executive Medicare may, by written notice given to a person who owes a debt to the Commonwealth for which notice has been served as mentioned in subsection 56C(4), require the person to do either or both of the following:
(a) give to the Chief Executive Medicare, or a Human Services employee, information in writing that is relevant to the person's financial situation;
(b) produce to the Chief Executive Medicare, or a Human Services employee, a document that is in the person's custody or under the person's control and is relevant to the person's financial situation.
(2) An individual who owes a debt to the Commonwealth for which notice has been served as mentioned in subsection 56C(4) must, within 14 days after the notice is served, notify the Chief Executive Medicare of an address for the purposes of giving documents to the individual relating to the debt.
Civil penalty: 20 penalty units.
(3) If:
(a) an individual owes a debt to the Commonwealth for which notice has been served as mentioned in subsection 56C(4); and
(b) the individual has notified the Chief Executive Medicare of an address under subsection (2) of this section; and
(c) the address changes;
then the individual must notify the Chief Executive Medicare of the change within 14 days after the change.
Civil penalty: 20 penalty units.
(4) If the Chief Executive Medicare reasonably believes that a person may have information or a document:
(a) that would help the Chief Executive Medicare locate another person (the debtor ) who owes a debt to the Commonwealth for which notice has been served as mentioned in subsection 56C(4); or
(b) that is relevant to the debtor's financial situation;
the Chief Executive Medicare may, by written notice given to the person, require the person to give the information in writing, or produce the document, to the Chief Executive Medicare or a Human Services employee.
(5) A notice under subsection (1) or (4) must specify the following:
(a) how the person is to give the information in writing or produce the document;
(b) the period (which must be at least 14 days after the day the notice is given) within which the person is to give the information in writing or produce the document;
(c) that the notice is given under subsection (1) or (4) (as the case requires).
(6) A person contravenes this subsection if:
(a) the person is given a notice under subsection (1) or (4) requiring the person to give information or produce a document; and
(b) the person fails to comply with the requirement within the period specified in the notice.
Civil penalty:
(a) for an individual--20 penalty units; and
(b) for a body corporate--100 penalty units.
(7) Part VIA of the Health Insurance Act 1973 applies in relation to this section as if subsections (2), (3) and (6) of this section were civil penalty provisions as defined in section 125B of that Act.
Note: Part VIA of the Health Insurance Act 1973 provides a regime for the obtaining of orders for a civil penalty.
(8) Subsection (2), (3) or (6) does not apply if the person has a reasonable excuse.
Note: A person who wishes to rely on subsection (8) in proceedings for a civil penalty order bears an evidential burden in relation to the matter in that subsection (see section 130H of the Health Insurance Act 1973 ).
12 After section 58
Insert:
(1) This section applies in relation to an amount:
(a) that is a recoverable amount (the debt ) under subsection 56(2) or 56A(1), (3), (5) or (8); and
(b) that is recoverable from a person (the debtor ) or from the estate of that person; and
(c) in relation to which any rights of review by the Chief Executive Medicare under section 56D have been exhausted or have expired.
(2) If a person (the third party ) owes or may later owe money to the debtor or estate, the Chief Executive Medicare may give a written notice (the garnishee notice ) to the third party.
Third party regarded as owing money in these circumstances
(3) The third party is taken to owe money (the available money ) to the debtor or estate if the third party:
(a) is a person by whom the available money is due or accruing to the debtor or estate; or
(b) holds the money for, or on account of, the debtor or estate; or
(c) holds the money on account of some other person for payment to the debtor or estate; or
(d) has authority from some other person to pay the money to the debtor or estate.
(4) The third party is taken to owe the available money to the debtor or estate even if:
(a) the money is not due, or is not so held, or payable under the authority, unless a condition is fulfilled; and
(b) the condition has not been fulfilled.
How much is payable under the notice
(5) The garnishee notice must:
(a) require the third party to pay to the Commonwealth the lesser of, or a specified amount not exceeding the lesser of:
(i) the debt; or
(ii) the available money; or
(b) if there will be amounts of the available money from time to time--require the third party to pay to the Commonwealth a specified amount, or a specified percentage, of each amount of the money, until the debt is satisfied.
When amount must be paid
(6) The garnishee notice must require the third party to pay an amount under paragraph (5)(a), or each amount under paragraph (5)(b), within the period specified in the notice.
Debtor must be notified
(7) The Chief Executive Medicare must send a copy of the garnishee notice to the debtor or estate.
Setting off amounts
(8) If a person other than the third party has paid an amount to the Commonwealth that satisfies all or part of the debt:
(a) the Chief Executive Medicare must notify the third party of that fact; and
(b) any amount that the third party is required to pay under the garnishee notice is reduced by that amount.
Indemnity
(9) If an amount is paid by the third party in accordance with the garnishee notice:
(a) the payment is taken to have been authorised by:
(i) the debtor or estate; and
(ii) any other person who is entitled to all or a part of the amount; and
(b) the third party is indemnified for the payment.
Garnishee notice to Commonwealth, State or Territory
(10) If the third party is the Commonwealth, a State or a Territory, the Chief Executive Medicare may give the notice to a person who is (as the case requires):
(a) employed by the Commonwealth, State or Territory; and
(b) required, or authorised, to disburse public money under a law of the Commonwealth, State or Territory.
Section binds the Crown
(11) This section binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.
(12) However, this section does not make the Crown liable to be prosecuted for an offence.
(13) To avoid doubt, this section does not imply that the Crown is, or is not, bound by any other provision of this Act.
Review of decisions
(14) The debtor or estate may apply to the Administrative Appeals Tribunal for review of a decision by the Chief Executive Medicare to give a garnishee notice to a person under subsection (2).
58AB Failure to comply with garnishee notice
(1) A person commits an offence if:
(a) the person is given a garnishee notice under section 58AA; and
(b) the person fails to comply with the notice.
Penalty: 20 penalty units.
(2) The court may, in addition to imposing a penalty on a person convicted of an offence against subsection (1) in relation to failing to pay an amount under the notice, order the person to pay to the Commonwealth an amount not exceeding the amount specified in the notice.
13 Section 63 (after paragraph (a))
Insert:
(aa) the operation of certain State and Territory laws; and
14 After section 64
Insert:
64A Obligations not affected by State or Territory laws
Nothing contained in a law of a State or a Territory, or in the general law, operates to prevent a person from:
(a) giving information; or
(b) producing a document; or
(c) giving evidence;
that the person is required, or authorised, to give or produce under a provision of this Act.
15 Application provisions
(1) Subsection 32C(7A) of the Dental Benefits Act 2008 , as inserted by this Schedule, applies in relation to documents produced, in response to a request made under subsection 32C(4) of that Act, on or after the commencement of this item (regardless of whether the request was made before, on or after the commencement of this item).
(2) Sections 56E, 56F and 56G of the Dental Benefits Act 2008 , as inserted by this Schedule, apply in relation to dental services for which notice is served (as mentioned in subsection 56C(4) of that Act) on or after the commencement of this item.
(3) Section 56H of the Dental Benefits Act 2008 , as inserted by this Schedule, applies in relation to debts for which notice is served (as mentioned in subsection 56C(4) of that Act) on or after commencement of this item (regardless of whether the debt became due to the Commonwealth before, on or after the commencement of this item).
(4) Sections 58AA and 58BB of the Dental Benefits Act 2008 , as inserted by this Schedule, apply in relation to money that is owed, or may later be owed, by a third party on or after the commencement of this item (regardless of whether the recoverable amount became a debt due to the Commonwealth before, on or after the commencement of this item).
(5) Section 64A of the Dental Benefits Act 2008, as inserted by this Schedule, applies to information given, documents produced, or evidence given on or after the commencement of this item.
16 Saving provision
Despite the repeal and substitution of subsection 32C(5) of the Dental Benefits Act 2008 by this Schedule, that subsection, as in force immediately before the commencement of this item, continues to apply in relation to notices given before that commencement.
17 Transitional provision
If a written request mentioned in subsection 32C(4) of the Dental Benefits Act 2008 as in force immediately before the commencement of this item was given to a person before the commencement of this item, the request is taken, on and after the commencement of this item, to be a request under that subsection as amended by this Schedule.