10CLoading in respect of contraventions of section 7A

10C Loading in respect of contraventions of section 7A

When this section applies (1) This section applies if: (a) a person (the recipient) makes a claim for a prescribed travel benefit in contravention of section 7A; and (b) the Commonwealth pays an amount, or provides goods, services or facilities, purportedly by way of prescribed travel benefit, pursuant to the claim; and (c) either: (i) the amount of the payment exceeds the amount (if any) to which the recipient was entitled; or (ii) the Commonwealth’s costs of providing the goods, services or facilities exceed what they would have been if the goods, services or facilities (if any) to which the recipient was entitled had instead been provided; and (d) the excess was not attributable, to any extent, to administrative error within the Department. (2) In determining the amount of the payment, or the goods, services or facilities, to which the recipient was entitled, disregard section 10A. Excess to be reduced by any repayment made to Commonwealth within 28 days of claim (3) This section applies to the amount of the excess referred to in subparagraph (1)(c)(i) or (ii), reduced by any part of that excess that is repaid to the Commonwealth, by or on behalf of the recipient, before the end of 28 days after the day the claim was made.

Note: If the whole of the excess is repaid within the 28 day period, then there is no amount to which this section applies.

Loading payable as a penalty for the contravention of section 7A (4) The recipient is liable to pay the Commonwealth, by way of penalty for the contravention of section 7A, an amount equal to 25% of the amount to which this section applies. (5) The amount of the penalty: (a) is a debt due to the Commonwealth by the recipient; and (b) may be recovered by action in a court of competent jurisdiction. Alternative method of recovery: reduction of future benefits (6) If: (a) an amount is recoverable as a debt under subsection (5) from the recipient; and (b) an amount is payable to the recipient by way of benefit; then: (c) the amount of 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. (7) The Secretary is required to consult the recipient before directing that the debt, or part of the debt, be recovered as mentioned in subsection (6).