20Commission contracts may be split

20 Commission contracts may be split

(1) The object of this section is to enable a Commission contract to be split into 2 separate contracts so that one of those contracts can be transferred to the nominated company under this Division. (2) For the purposes of this section, a Commission contract is a contract between the Commission and another person (the supplier) for the supply to the Commission of goods or services. (3) The Minister may, by writing, declare that: (a) a specified Commission contract terminates at a specified time without giving the supplier any entitlement to compensation or damages (other than an entitlement (if any) under section 46); and (b) the Commission is taken to have entered into a contract (the Medibank Private contract) with the supplier at that time for the supply of some of those goods or services in the terms set out in the declaration; and (c) the Commission is taken to have entered into a contract (the residual contract) with the supplier at that time for the supply of some of those goods or services in the terms set out in the declaration. (4) A declaration under subsection (3) has effect accordingly. (5) A copy of a declaration under subsection (3) is to be published in the Gazette within 14 days after the making of the declaration. (6) A copy of a declaration under subsection (3) is to be given to the supplier as soon as practicable after the making of the declaration. (7) If a declaration is made under subsection (3) in relation to a Commission contract: (a) the sum of: (i) the consideration that is to be paid to the supplier under the Medibank Private contract; and (ii) the consideration that is to be paid to the supplier under the residual contract; must equal the consideration that would have been paid to the supplier under the Commission contract if the declaration had not been made; and (b) the aggregate of: (i) the obligations imposed on the supplier under the Medibank Private contract; and (ii) the obligations imposed on the supplier under the residual contract; must not be more onerous than the obligations that would have been imposed on the supplier under the Commission contract if the declaration had not been made. (8) In this section:

goods has the same meaning as in the Competition and Consumer Act 2010.

person includes a partnership.

services has the same meaning as in the Competition and Consumer Act 2010.

supply has the same meaning as in the Competition and Consumer Act 2010.

(9) To avoid doubt, a reference in this section to services includes a reference to rights arising under a computer software licence. (10) Subsection (9) is to be disregarded in interpreting a law of the Commonwealth (other than this section).