Recovery of subsidy
29 Recovery of subsidy
Where subsidy in relation to an advance to a person ceases to be payable under section 26, 27 or 27A, for a reason referred to in:
paragraph 26(1)(a), (b) or (c); or
subsection 26(2), (2B) or (7); or
paragraph 27(1)(a), (b) or (c); or
subsection 27A(1) or (2);
the Secretary may, by notice in writing given to the person, require the person to pay to the Commonwealth the amount specified in the notice in the manner, and within the period, specified in the notice.
The Secretary may specify in a notice an amount equal to:
where paragraph 26(1)(a) or (b) or paragraph 27(1)(a) or (b) applied—the whole of the amount of subsidy paid in respect of the person; or
where paragraph 26(1)(c) or 27(1)(c) applied—the whole of the amount of subsidy paid in respect of the person since the day when the use referred to in that paragraph happened; or
where subsection 26(2) applied—the whole of the amount of subsidy paid in respect of the person since the day when the person agreed or arranged to transfer the relevant land, or land and dwelling‑house; or
where subparagraph 26(2B)(b)(i) applied—the whole of the amount of subsidy paid in respect of the person since the day when the assignor agreed to transfer the right of residence in the retirement village, or gave up the right of residence in the retirement village; or
where subparagraph 26(2B)(b)(ii) applied—the whole of the amount of subsidy paid in respect of the person since the day on which the assignee agreed to transfer the interest in the retirement village, or terminated the assignor’s right of residence in the retirement village; or
where subsection 26(7) applied—the whole of the amount of subsidy paid in respect of the person since the day on which the person’s right of residence was terminated and the person has ceased to reside in the retirement village accommodation;
where subsection 27A(1) or (2) applied—the whole of the amount of subsidy paid in respect of the person since the day on which the cancellation of subsidy took effect;
or such part of that amount of subsidy as the Secretary determines to be reasonable.
The Secretary shall cause a copy of a notice under this section to be given:
to the credit provider; and
if subsection 26(2B) applied—to the assignor.
Subject to this section, where a person fails to comply with a notice, the amount specified in the notice may be recovered from the person in a court of competent jurisdiction as a debt due to the Commonwealth.
Where:
a credit provider sells any property of a person by way of enforcing:
a specified portfolio asset; or
a mortgage securing a subsidised advance; or
in the case of a right of residence in a retirement village—any other security that the credit provider has in relation to that advance; and
the Secretary has given the person a notice under this section;
the credit provider shall pay to the Commonwealth an amount equal to:
the part of the proceeds of the sale that, but for this subsection, would have been payable by the credit provider to the person; or
such part of the amount specified in the notice as remains unpaid;
whichever is less.
A payment by a credit provider to the Commonwealth under subsection (5) is, to the extent of the payment, a discharge of the liability of the person referred to in that subsection to the Commonwealth and of any liability of the credit provider to the person under the specified portfolio asset, mortgage or other security.
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