22How Level 2 Commonwealth contribution is to be applied

22 How Level 2 Commonwealth contribution is to be applied

(1) This section applies if a Level 2 Commonwealth contribution (the contribution) is paid to a person (the recipient) in relation to a liability of a person (the midwife).

Note: The recipient will either be the midwife himself or herself, or a person acting on behalf of the midwife.

Chief Executive Medicare to give recipient of payment a notice identifying the liability to be discharged (2) The Chief Executive Medicare must give the recipient a written notice (the payment notice) identifying the liability in relation to which the contribution is paid, and advising the recipient how this section requires the contribution to be dealt with. Recipient’s obligation if the amount of the contribution equals or is less than the liability (3) If the amount of the contribution equals or is less than the undischarged amount of the liability identified in the payment notice, the recipient must apply the whole of the contribution towards the discharge of the liability. Recipient’s obligation if the amount of the contribution exceeds the liability (4) If the amount of the contribution is greater than the undischarged amount of the liability identified in the payment notice, the recipient must: (a) apply so much of the contribution as equals the undischarged amount of the liability towards the discharge of the liability; and (b) if the recipient is not the midwife—deal with the balance of the contribution in accordance with the directions of the midwife. Time by which recipient must comply with obligation (5) The recipient must comply with whichever of subsections (3) and (4) applies: (a) by the time specified in a written direction (whether contained in the payment notice or otherwise) given to the recipient by the Chief Executive Medicare; or (b) if no such direction is given to the recipient—as soon as practicable after the Commonwealth contribution is received by the recipient. To avoid doubt, the Chief Executive Medicare may vary a direction under paragraph (a) to specify a different time. Debt to Commonwealth if recipient does not comply with obligation on time (6) If the recipient does not comply with whichever of subsections (3) and (4) applies by the time required by subsection (5), the amount of the contribution is a debt due to the Commonwealth. (7) The debt may be recovered: (a) by action by the Chief Executive Medicare against the recipient in a court of competent jurisdiction; or (b) under section 65. (8) If the amount of the contribution is recoverable, or has been recovered, as mentioned in subsection (7), no amount is recoverable under section 25 or section 64 in relation to the same payment of contribution.