Amount of administrative penalty
56F Amount of administrative penalty
The amount of the administrative penalty for a dental service is worked out in accordance with this section.
Base penalty amount
Subject to subsections (3) and (4), the amount (the base penalty amount) of the administrative penalty for a dental service is 20% of the recoverable amount mentioned in paragraph 56E(b) in respect of the service.
Reductions in base penalty amount
A person’s base penalty amount for a dental service is reduced in accordance with the following table.
Reductions in base penalty amount | ||
|---|---|---|
Item | Column 1 | Column 2 |
If … | the base penalty amount is reduced by … | |
1 | before the Chief Executive Medicare contacts the person under subsection 32C(1) or (4) about the dental service, the person voluntarily tells the Chief Executive Medicare, or a Human Services employee, in the form approved in writing by the Chief Executive Medicare, that an amount paid, purportedly by way of benefit or payment under this Act, in respect of the service exceeds the amount (if any) that should have been paid | 100% |
2 | (a) after the Chief Executive Medicare contacts the person about the service under subsection 32C(4); and (b) before the Chief Executive Medicare gives a notice to the person under subsection 32C(1) that specifies the service; and (c) before the Chief Executive Medicare gives notice to the person under subsection 56C(1) of a decision to claim an amount as a debt in relation to the service; the person voluntarily tells the Chief Executive Medicare, or a Human Services employee, in the form approved in writing by the Chief Executive Medicare, that an amount paid, purportedly by way of benefit or payment under this Act, in respect of the service exceeds the amount (if any) that should have been paid | 50% |
3 | (a) after the Chief Executive Medicare gives a notice to the person under subsection 32C(1) that specifies the service; and (b) before the end of the period specified in the notice; and (c) before the Chief Executive Medicare gives notice to the person under subsection 56C(1) of a decision to claim an amount as a debt in relation to the service; the person tells the Chief Executive Medicare, or a Human Services employee, in the form approved in writing by the Chief Executive Medicare, that an amount paid, purportedly by way of benefit or payment under this Act, in respect of the service exceeds the amount (if any) that should have been paid | 25% |
Increases in base penalty amount
A person’s base penalty amount for a dental service is increased by 25% if:
the Chief Executive Medicare gives a notice to the person under subsection 32C(1) that specifies the service; and
the person does not comply with the notice in respect of the service, or any other dental service specified in the notice, within the period specified in the notice.
Interaction between reduction and increase
If a base penalty amount is subject to both a reduction and an increase, apply the reduction first.
This Act’s bill:Explanatory memorandumSecond reading speech
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