27. Payment of advance subsidy

(1) Subject to this Scheme and the conditions in the PSS contract, the Chief Executive Medicare must pay to a contractor a subsidy under this Part on behalf of an eligible member for a premium period on or after 1 January 2004 if:

(a) the eligible member is eligible for a subsidy under Part 3; and

(b) the contractor has complied with the conditions specified in this Scheme, other than conditions in relation to actual income; and

(c) the contractor has calculated in accordance with this Scheme the amount of subsidy payable, but, for the PSS calculation, the calculation is based on estimated income (the amount of advance subsidy); and

(d) the contractor has applied to the Chief Executive Medicare for payment of the amount of advance subsidy in accordance with section 26 or 28; and

(e) the Chief Executive Medicare has no reason to believe at the time of receiving the application for advance subsidy that the information provided is false or inaccurate.

(2) A calculation by a contractor that a member is not eligible for an advance subsidy is deemed for the purpose of subsection 47 (1) to be a decision of the Chief Executive Medicare that the member is not an eligible member.

(3) The Chief Executive Medicare must make a payment of advance subsidy under this section in accordance with the manner and within the timeframe set out in the PSS contract, or otherwise as soon as practicable after receiving the application.