Medicare compliance debts and penalties

Debts incurred through incorrect claiming may attract administrative penalties. While you need to fully repay the incorrect payments, how you work with us can decrease or increase any applicable penalties.

We focus on helping you to meet your obligations and responsibilities so you don't incur debts. However, we will work to recover incorrect payments, even if accidentally claimed.

You are legally responsible for repaying any incorrect payments made to you. These debts are also subject to administrative and civil penalties.

Administrative penalties

Administrative penalties can be applied to unpaid debts. This includes debts owed by dentists and pharmacists.

Penalties can be decreased or increased depending on if, and when, you tell us about an incorrect payment. For example, if you tell us before we contact you, your penalty may be waived completely.

To minimise the penalties, tell us about an incorrect payment as soon as you can.

Civil penalties

A civil penalty is like a fine. The Federal Court can impose a penalty on an individual or corporation who:

  • is responsible for documents relating to claimed services
  • did not provide the service themselves
  • has not complied with notice to produce documents.
Last updated: 
9 June 2021

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