Dr. Moffet, a registered dentist, entered into a service contract for the provision of dental services to Dental Corporation for a period of five years. After the service contract expired in 2012 (and despite attempts to renegotiate the terms of the service contract), Dr. Moffet continued to provide dental services to Dental Corporation under the same conditions until his resignation. If a dental practice does not deposit the minimum amount of Super Guarantee (SG) for its employees in the correct fund before the due date, it may be required to pay a penalty which is a Super Guarantee Charge (SGC). This decision is an important reminder that every facet of the relationship between the parties must be studied and duly taken into account. This concerns both the form of the agreement and how the agreement between a clinic and a doctor is implemented in practice. It also highlights the persistent potential for negative effects that may result from the use of independent business subcontracting agreements. The Plenary Assembly of the Federal Court of Australia recently rendered its decision in Dental Corporation Pty Ltd v. Moffet  FCAFC 118. This decision once again highlights the potential risks, particularly with regard to pension insurance, dental practices that enter into independent purchasing agreements. It should also be noted that a director of a dental practice and/or company who is not fully responsible for the CMS until its due date is automatically held personally liable for a penalty equal to the unpaid amount.
Mr. Bamin has helped international clients navigate through Australia`s framework for foreign investment, including their activities with the Foreign Investment Review Board. He also has experience in the preparation of service agreements and accommodations in the dental and medical fields. This case highlights certain negative consequences for dental practices, which may be caused by the use of independent subcontracts or service contracts, in this case a violation of the Pension Guarantee Act. This decision is an important reminder that every aspect of the relationship between the parties must be examined and considered closely. . . .