10ARecoverable payments

10A Recoverable payments

Purported benefits consisting of payments of amounts of money (1) If, apart from this subsection and paragraph 11(b), the Commonwealth does not have power under this Act to make a payment of an amount purportedly by way of benefit to a person (the recipient), then: (a) the Commonwealth has the power to make the payment; and (b) for the purpose of section 11, the payment is taken to be a payment of benefits; and (c) the amount of the payment: (i) is a debt due to the Commonwealth by the recipient; and (ii) may be recovered by action in a court of competent jurisdiction.

Note: If the purported benefit is a prescribed travel benefit, a loading may also apply: see Division 2.

Purported benefits consisting of goods, services or facilities (2) If, apart from this subsection and paragraph 11(b), the Commonwealth does not have power under this Act to provide goods, services or facilities purportedly by way of benefit to a person (the recipient), then: (a) the Commonwealth has the power to provide the goods, services or facilities; and (b) for the purpose of section 11, a payment by the Commonwealth of the costs of providing the goods, services or facilities is taken to be a payment of costs of benefits; and (c) the amount of such a payment: (i) is a debt due to the Commonwealth by the recipient; and (ii) may be recovered by action in a court of competent jurisdiction.

Note: If the purported benefit is a prescribed travel benefit, a loading may also apply: see Division 2.

(3) The reference in subsection (2) to the Commonwealth not having power to provide goods, services or facilities purportedly by way of benefit includes a reference to the Commonwealth only having power to provide lower‑cost goods, services or facilities. In this situation, paragraph (2)(c) applies to the amount by which the payment of costs exceeds what it would have been if the lower‑cost goods, services or facilities had instead been provided. Alternative method of recovery: reduction of future benefits (4) If: (a) an amount is recoverable as a debt under paragraph (1)(c) or (2)(c) from the recipient; and (b) an amount is payable to the recipient by way of benefit; then: (c) the debt; or (d) such part of the debt as the Secretary determines; may, if the Secretary so directs, be recovered by deduction from the amount referred to in paragraph (b) of this subsection. (5) The Secretary is required to consult the recipient before directing that the debt, or part of the debt, be recovered as mentioned in subsection (4). How this section applies to entitlements that relate to activities of another person (otherwise than as a member of staff) (6) For the purpose of this section, if: (a) a payment is made, or goods, services or facilities are provided, purportedly in respect of an entitlement of a person (the first person) to a benefit under this Act; and (b) the purported benefit relates to activities of another person, other than activities as a member of staff of the first person; then the payment, or the provision of goods, services or facilities, constitutes a payment or provision that is purportedly by way of benefit to the first person (rather than the other person).