Schedule 2, Part 2

A second enforcement stream inside the Agency

From 27 August 2026 the CEO has its own monitoring, investigation and civil penalty powers over provider conduct that relates to the Agency's functions, separate from the Commissioner's powers.

What does the provision require?

The Part inserts Part 3C of Chapter 4. It makes a set of provisions subject to monitoring and investigation under the Regulatory Powers Act, gives the CEO and appointed NDIA inspectors and investigators the powers of authorised persons, and makes the CEO the relevant chief executive. It adds civil penalties for a failure to comply with an information notice under section 53, for a nominee who knowingly breaches a duty or fails to tell the Agency of a change, for a plan nominee who fails to comply with a notice, for a potential compensation payer or an insurer that fails to notify a liability, for a payment made in breach of a notice, for a financial institution that fails to comply with a notice, and for a refusal to give information under the debt recovery provisions.

The CEO may issue a compliance notice to a person, other than a participant, a prospective participant, a plan nominee or a person acting for a child. The notice must state the non compliance, the action required, a reasonable period and, where the CEO considers it appropriate, a period to provide evidence. A failure to comply is 60 penalty units. The CEO may accept an enforceable undertaking, including one to pay compensation for loss or damage caused by a contravention. The CEO may appoint inspectors and investigators from the Agency's staff, from persons assisting the CEO, or from contractors. A determination under section 73ZSL must set conditions for exercising these powers on a participant or prospective participant.

Why does it matter to an insurer or a provider?

There are now two regulators in the same scheme. A notice may come from the Commissioner, which regulates registration and conduct, or from the CEO, which regulates the Agency facing provisions. For an insurer the direct exposure is in sections 110 and 114, and the indirect exposure is in the provider conduct it underwrites, because a compliance notice and an enforceable undertaking are both early warning signs that a claim is coming. The compensation undertaking in section 73ZSJ(5) is a route the Agency can use to recover loss without litigation.

What did the amendment change?

The Act splits enforcement. Part 3B keeps the Commissioner's functions. Part 3C gives the CEO monitoring and investigation powers over the Agency's provisions, and adds civil penalties across information gathering, nominee duties, compensation notices, financial institution notices and debt recovery. It also adds a delegation power for the CEO and an anti promotion order to the Commissioner's investigation provisions.

Suggested evidence

These are the publisher's control suggestions, not statutory requirements. The provision's own requirement is above; an auditor or regulator decides what is sufficient.

Every notice received, with the body that issued it and the date
The compliance notice, the action required and the evidence of completion
Any enforceable undertaking and its terms, including any compensation undertaking
The internal record of the period allowed and the response sent
For a financial institution, the facility documents and the notice response

What should be done before the date?

Separate the notice register by issuing body, Commissioner or CEO
Add compliance notices and enforceable undertakings to the underwriting questions
Check that delegated claims handlers know which body may issue which notice
Record the compensation undertaking route in the recovery playbook

What the text does not say

The text does not set the amount of a penalty unit. It does not say how the CEO will choose between a compliance notice, an infringement notice and a civil penalty proceeding. It does not limit the matters the CEO may consider before accepting an undertaking.

Where this sits

Part 3C of Chapter 4 and the new civil penalty provisions, inserted by item 33 in Schedule 2, Part 2, Civil penalties and regulatory powers (items 8 to 75). Read the official text at https://www.legislation.gov.au/C2026A00066/latest/text. The record was read on 21 October 2026.

Not legal advice; does not certify. This page is a reading of the provision in our own words, not a reproduction of it, and not advice on your own facts.