109ZA.— (1) Where an adjudication officer is of the opinion that there has been a breach by a relevant provider of an obligation under a direction under section 71 or 98 (in this section referred to as a “specified obligation”), the adjudication officer may, for the purpose of enforcing the specified obligation, impose a penalty on a relevant provider as an administrative sanction in the form of a daily payment (in this Chapter referred to as a “daily penalty payment”).

(2) Where it appears to an adjudication officer to be necessary to impose a daily payment penalty on a relevant provider, the adjudication officer may give the provider concerned a notice in writing which–

(a) specifies the breach referred to in subsection (1) in respect of which the notice is given,

(b) gives the provider all relevant information relating to the breach,

(c) states the date by which the provider must comply with the notice which may not be earlier than the date on which the notice under this subsection is given,

(d) states that, if the provider fails to comply with the notice by that date, the adjudication officer shall proceed to impose a daily penalty payment on the person, for each day during which the failure continues, beginning with the day following that date,

(e) states the maximum daily amount of the penalty that may be imposed, and

(f) invites the provider to make written submissions to the adjudication officer regarding the matters to which the notice relates within the period specified in the notice or such further period as may be permitted.

(3) The amount of a penalty imposed under this section on a relevant provider for each day during which the failure referred to in subsection (2)(d) continues shall not exceed–

(a) in the case of an individual, 2% of his or her average daily income in the preceding calendar year, or

(b) in the case of a relevant provider that is not an individual, 3% of their average daily turnover in the preceding business year.

(4) Where it appears to the adjudication officer, after considering any written submissions made by the provider in accordance with subsection (2)(f), that it is necessary to impose a daily penalty payment on the provider for the purpose of enforcing the specified obligation referred to in the notice, the adjudication officer may –

(a) determine the daily amount of the penalty to be imposed, and the date on which it is to commence, and

(b) by notice in writing to the provider, impose the penalty.

(5) A daily penalty payment may be imposed for a period not exceeding 6 months (in this subsection referred to as the “initial period”) and where there is a continuing failure by the relevant provider in the initial period to comply with the specified obligation, the period for which the penalty may be imposed may be extended by an additional period not exceeding 6 months commencing on the expiry of the initial period.

(6) A decision to impose a daily penalty payment does not take effect unless it is confirmed on appeal under section 109ZB or on summary application under section 109ZC.

(7) The Minister may prescribe specific factors, criteria or methodology relevant to the determination of the amount of the financial penalty for the purposes of this section.]