What this section does

(1)

This section allows the HIC to collect money from a person who owes money to a person (the contribution debtor ) who has a debt to the Commonwealth under section 68 (a contribution debt ).

The HIC may give direction

(2)

The HIC may direct a person (the third party ) who owes, or may later owe, money (the available money ) to the contribution debtor to pay some or all of the available money to the HIC in accordance with the direction. The HIC must give a copy of the direction to the contribution debtor.

Limit on directions

(3)

The direction must:

(a)

not require an amount to be paid to the HIC at a time before it becomes owing by the third party to the contribution debtor; and

(b)

specify a period of not less than 14 days within which the third party must comply with the direction.

Third party to comply

(4)

The third party commits an offence if the third party fails to comply with the direction.

Penalty: 20 penalty units.

(5)

The third party does not commit an offence against subsection (4) if the third party complies with the direction so far as the third party is able to do so.

Note: A defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code ).

(6)

An offence against subsection (4) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

Court orders

(7)

If a person is convicted of an offence in relation to a failure of the third party to comply with subsection (4), the court may (in addition to imposing a penalty on the convicted person) order the convicted person to pay to the HIC an amount up to the amount involved in the failure of the third party.

Indemnity

(8)

Any payment made by the third party under this section is taken to have been made with the authority of the contribution debtor and of all other persons concerned and the third party is indemnified for the payment.

Notice

(9)

If the whole of the contribution debt of the contribution debtor is discharged before any payment is made by the third party, the HIC must immediately give notice to the third party of that fact.

(10)

If a part of the contribution debt of the contribution debtor is discharged before any payment is made by the third party, the HIC must:

(a)

immediately give notice to the third party of that fact; and

(b)

make an appropriate variation to the direction; and

(c)

give a copy of the varied direction to the contribution debtor.

When third party is taken to owe money

(11)

The third party is taken to owe money to the contribution debtor if:

(a)

money is due or accruing by the third party to the contribution debtor; or

(b)

the third party holds money for or on account of the contribution debtor; or

(c)

the third party holds money on account of some other person for payment to the contribution debtor; or

(d)

the third party has authority from some other person to pay money to the contribution debtor;

whether or not the payment of the money to the contribution debtor is dependent on a pre-condition that has not been fulfilled.