Document ID: chunk:federal_register_of_legislation:C2025C00163:section:42:p1
Version: federal_register_of_legislation:C2025C00163
Segment Type: section
Provision Reference: s 42 (pt 1/2)
Character Range: 151403–153918

42  Recovery of certain overpayments from third parties
 (2) This section applies where:
 (a) the liability of a person (in this section called the debtor) to the Commonwealth in relation to a debt has not been fully satisfied; and
 (b) there is another person (in this section called the third party):
 (i) by whom any money is due, or may become due, to the debtor; or
 (ii) who holds, or may subsequently hold, money for the debtor; or
 (iii) who holds, or may subsequently hold, money for some other person for payment to the debtor; or
 (iv) who has authority from some other person to pay money to the debtor.
 (2A) The first reference in paragraph (2)(b) to another person includes a reference to:
 (a) the Commonwealth; and
 (b) a State; and
 (c) a Territory; and
 (d) any authority of the Commonwealth or of a State or Territory.
 (3) The Secretary may, by written notice given to the third party, require the third party to pay to the Commonwealth:
 (a) a specified amount, not being an amount more than:
 (i) the amount then due to the Commonwealth in relation to the debt; or
 (ii) the amount of the money referred to in whichever of the subparagraphs of paragraph (2)(b) is applicable; or
 (b) a specified amount out of each payment that the third party becomes liable from time to time to make to the debtor until the total of the amounts paid to the Commonwealth under the notice equals the amount then due to the Commonwealth in relation to the debt.
 (4) A payment required to be made by the notice is to be made within the time specified in the notice, not being a time earlier than:
 (a) the money concerned becomes due or is held; or
 (b) 14 days after the notice is given.
 (5) The third party must not contravene the notice.
Penalty: Imprisonment for 1 year.
 (5A) Subsection (5) does not apply if the party has a reasonable excuse.
Note: A defendant bears an evidential burden in relation to the matter in subsection (5A) (see subsection 13.3(3) of the Criminal Code).
 (6) The Secretary must give a copy of the notice to the debtor.
 (7) Contravention of subsection (6) does not invalidate the notice.
 (8) If the third party makes a payment to the Commonwealth under the notice, the payment is to be taken to have been made with the authority of the debtor and of any other person concerned.
 (9) If the whole or a part of the debt stops being due to the Commonwealth otherwise than because of a payment made by the third party, the following provisions have effect:
 (a) the Secretary must