Section 59ZJ — Veterans' Entitlements Act 1986: Offence to make compensation payment after receiving preliminary notice or recovery notice

(1) If an insurer has been given a preliminary notice under section 59ZE or a recovery notice under section 59ZG in relation to the insurer’s liability to make a payment indemnifying a compensation payer, the insurer must not make the payment to the compensation payer. Penalty: Imprisonment for 12 months. (1A) Subsection (1) does not apply if: (a) in the case of a preliminary notice—the Commission has given the insurer written notice that the preliminary notice is revoked; or (b) in the case of a recovery notice—the insurer has paid to the Commonwealth the amount specified in the notice; or (c) the Commission has given the insurer written permission to make the payment to the compensation payer. Note: The defendant bears an evidential burden in relation to the matters in subsection (1A). See subsection 13.3(3) of the Criminal Code. (2) An insurer who contravenes subsection (1) is, in addition to being liable to prosecution for an offence under subsection (1), liable to pay to the Commonwealth: (a) if the contravention relates to a preliminary notice—an amount determined by the Commission; and (b) if the contravention relates to a recovery notice—the recoverable amount specified in the notice. (3) The amount determined by the Commission under paragraph (2)(a) may not be more than the smallest of the amounts worked out under: (a) if the person claiming compensation is not a member of a couple—subsection 59ZG(4); or (b) if the person claiming compensation is a member of a couple—subsection 59ZG(5).