Document ID: chunk:federal_register_of_legislation:C2024A00104:section:178
Version: federal_register_of_legislation:C2024A00104
Segment Type: section
Provision Reference: s 178
Character Range: 310116–312192

178  Offences relating to non‑permitted use of refundable deposits

Offence for registered provider
 (1) An entity commits an offence if:
 (a) the entity is a registered provider; and
 (b) the entity uses a refundable deposit; and
 (c) the use of the refundable deposit is not permitted by section 310; and
 (d) at a particular time during the period of 5 years after the use of the refundable deposit, both of the following apply:
 (i) an insolvency event (within the meaning of the Aged Care (Accommodation Payment Security) Act 2006) occurs in relation to the entity;
 (ii) there is at least one outstanding accommodation payment balance (within the meaning of that Act) for the entity.
Penalty: 300 penalty units.

Offence for responsible persons
 (2) A person commits an offence if:
 (a) the person is a responsible person of a registered provider (the entity); and
 (b) the entity uses a refundable deposit; and
 (c) the use of the refundable deposit is not permitted by section 310; and
 (d) the person knew that, or was reckless or negligent as to whether:
 (i) the refundable deposit would be used; and
 (ii) the use of the refundable deposit was not permitted; and
 (e) the person was in a position to influence the conduct of the entity in relation to the use of the refundable deposit; and
 (f) the person failed to take all reasonable steps to prevent the use of the refundable deposit; and
 (g) at a particular time during the period of 5 years after the use of the deposit, both of the following apply:
 (i) an insolvency event (within the meaning of the Aged Care (Accommodation Payment Security) Act 2006) occurs in relation to the entity;
 (ii) there is at least one outstanding accommodation payment balance (within the meaning of that Act) for the entity; and
 (h) at the time the refundable deposit was used, the entity was a corporation.
Penalty: Imprisonment for 2 years.

Strict liability
 (3) Strict liability applies to paragraphs (1)(d) and (2)(g) and (h).

Part 5—Statutory duty and compensation

Division 1—Provider and responsible person duties