This was an agreed penalty for admitted contraventions by the respondent of s 23DZZIL(1) of the Health Insurance Act 1973 (Cth) by entering into a lease (as tenant) with various corporate landlords. The respondent admitted that, by agreeing to pay elevated rents under four leases, it was provided a benefit within the meaning of s 23DZZIF, consisting of a payment for the use and occupation of the relevant premises, to requesters of pathology services. The respondent admitted that the rents agreed to be paid under the relevant leases (dealt with in further detail at - below) were “substantially different” from market value and, accordingly, were not “permitted benefits” and therefore constituted contraventions of s 23DZZIL(1) of the Act.
Michael Hodge KC (leading S Patterson) appeared for the applicant, instructed by Australian Government Solicitor.
The judgment is published here.