Health Insurance Act 1973

This section applies if, at a time when a person is a bonded participant:

the person has completed their course of study in medicine at an Australian university; and

the person breaches the condition mentioned in paragraph 124ZG(1)(c).

Subject to subsection (4), the person must pay:

if the person is a bonded participant covered by subsection 124ZE(1) or (2)—both:

100% of the cost of the person’s course of study in medicine at an Australian university, as funded by the Commonwealth as a benefit to the person as a student, less a pro‑rata proportion based on any proportion of return of service obligation completed; and

interest on the amount worked out under subparagraph (i) and applied in accordance with the Bonded Medical Program rules; and

if the person is a bonded participant covered by subsection 124ZE(3)—both:

100% of the Commonwealth funded scholarship provided to the person in relation to their course of study in medicine at an Australian university as a benefit to the person as a student, less a pro‑rata proportion based on any proportion of return of service obligation completed; and

interest on the amount worked out under subparagraph (i) and applied in accordance with the Bonded Medical Program rules.

The amounts mentioned in subsection (2) are recoverable as a debt due to the Commonwealth from the person or the estate of the person.

Subsection (2) does not apply to a person if:

a determination is made under subsection 124ZEA(3) that exceptional circumstances apply in relation to the person; and

the written notice of the determination includes a statement that the Secretary is satisfied that the person breached the condition mentioned in paragraph 124ZG(1)(c) as a result of those exceptional circumstances.