178Offences relating to non‑permitted use of refundable deposits

178  Offences relating to non‑permitted use of refundable deposits

Offence for registered provider

 (b) the entity uses a refundable deposit; and

 (c) the use of the refundable deposit is not permitted by section 310; and

 (d) at a particular time during the period of 5 years after the use of the refundable deposit, both of the following apply:

 (i) an insolvency event (within the meaning of the Aged Care (Accommodation Payment Security) Act 2006) occurs in relation to the entity;

 (ii) there is at least one outstanding accommodation payment balance (within the meaning of that Act) for the entity.

Offence for responsible persons

 (a) the person is a responsible person of a registered provider (the entity); and

 (b) the entity uses a refundable deposit; and

 (c) the use of the refundable deposit is not permitted by section 310; and

 (d) the person knew that, or was reckless or negligent as to whether:

 (i) the refundable deposit would be used; and

 (ii) the use of the refundable deposit was not permitted; and

 (e) the person was in a position to influence the conduct of the entity in relation to the use of the refundable deposit; and

 (f) the person failed to take all reasonable steps to prevent the use of the refundable deposit; and

 (g) at a particular time during the period of 5 years after the use of the deposit, both of the following apply:

 (i) an insolvency event (within the meaning of the Aged Care (Accommodation Payment Security) Act 2006) occurs in relation to the entity;

 (ii) there is at least one outstanding accommodation payment balance (within the meaning of that Act) for the entity; and

 (h) at the time the refundable deposit was used, the entity was a corporation.

Strict liability

 (3) Strict liability applies to paragraphs (1)(d) and (2)(g) and (h).