Document ID: chunk:federal_register_of_legislation:C2004A04491:body:0:p24
Version: federal_register_of_legislation:C2004A04491
Segment Type: other
Provision Reference: 
Character Range: 60308–63105

and

       (ii) the balance is paid to the vendor.

Treatment of amount paid in respect of overpayment outstanding to which subsection 65K(5) applies

"65Q.(1) This section applies if the overpayment outstanding in respect of the approved nursing home has been determined under subsection 65K(5).

"(2) If the first investigation has established that, in respect of the investigation period, an overpayment is payable by the vendor:

     (a)     so much of the vendor payment as is equal to the overpayment is taken to be paid in settlement, or part settlement, of the overpayment; and

     (b)     the remainder of the vendor payment is held in trust for the benefit of the vendor until the second investigation is completed.

"(3) If the second investigation establishes that, in respect of that investigation period, no overpayment is payable by the vendor, the remainder of the vendor payment is paid to the vendor.

"(4) If the second investigation establishes that there has been, in respect of that investigation period, an overpayment for which the vendor is liable, then:

     (a) if the remainder of the vendor payment is equal to or less than the overpayment—the remainder of the vendor payment is taken to have been paid to the Commonwealth in settlement or part settlement of the overpayment; or

    (b) if the remainder of the vendor payment is more than the overpayment:

         (i) so much of the vendor payment as is equal to the overpayment is taken to have been paid to the Commonwealth in settlement of the overpayment; and

      (ii) the balance is paid to the vendor.

Treatment of amount paid in respect of overpayment outstanding to which subsection 65K(6) applies—Step 1: first investigation amount

  "65R.(1) This section:

    (a)     applies if the overpayment outstanding in respect of the approved nursing home has been determined under subsection 65K(6); and

    (b)     sets out how that part of the vendor payment as is equal to the overpayment established by the first investigation is to be dealt with.

   Note: The treatment of so much of the vendor payment that relates to the amount (if any) established by the second investigation is dealt with under section 65S.

"(2) If the purchaser payment in respect of the nursing home was less than the amount of the overpayment in respect of the first investigation period, then:

    (a)     so much of the vendor payment as is equal to the difference between the overpayment and the purchaser payment is taken to have been paid in settlement, or part settlement, of the overpayment outstanding; and

    (b)     the balance is held in trust for the vendor's benefit until the second investigation is completed.

"(3) If the purchaser payment is equal to or more than the overpayment, the vendor payment