2004-2005-2006-2007 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Social Security and Other Legislation Amendment (Welfare Payment Reform) Bill 2007 No. , 2007 (Families, Community Services and Indigenous Affairs) A Bill for an Act to amend the social security law, and for other purposes [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 1 4 Racial Discrimination Act--Part 3B of the Social Security (Administration) Act.......................................................................... 2 5 Some Queensland and Northern Territory laws excluded-- Part 3B of the Social Security (Administration) Act ......................... 3 6 Racial Discrimination Act--determining terms of relevant activity agreement for approved programs of work for income support................................................................................... 4 7 Some Northern Territory laws excluded--determining terms of relevant activity agreement for approved programs of work for income support.................................................................... 5 Schedule 1--Income management regime 7 A New Tax System (Family Assistance) (Administration) Act 1999 7 Social Security Act 1991 7 Social Security (Administration) Act 1999 7 Veterans' Entitlements Act 1986 100 Schedule 2--Baby bonus 101 A New Tax System (Family Assistance) Act 1999 101 A New Tax System (Family Assistance) (Administration) Act 1999 101 Schedule 3--Northern Territory CDEP transition payment 103 Income Tax Assessment Act 1936 103 Social Security Act 1991 103 Social Security (Administration) Act 1999 110 [Page Break] 2 and for other purposes 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the Social Security and Other Legislation 6 Amendment (Welfare Payment Reform) Act 2007. 7 2 Commencement 8 This Act commences on the day after it receives the Royal Assent. 9 3 Schedule(s) 10 Each Act that is specified in a Schedule to this Act is amended or 11 repealed as set out in the applicable items in the Schedule Social Security and Other Legislation Amendment (Welfare Payment Reform) Bill 2007 No. , 2007 1 [Page Break] 2 according to its terms. 3 4 Racial Discrimination Act--Part 3B of the Social Security 4 (Administration) Act 5 (1) Subsections (2) and (3) apply to: 6 (a) the provisions of Part 3B of the Social Security 7 (Administration) Act 1999; and 8 (b) any acts done under or for the purposes of: 9 (i) those provisions; or 10 (ii) the income management regime; 11 in relation to: 12 (c) a person who is, or is potentially, subject to the income 13 management regime under section 123UB of that Act 14 (relevant Northern Territory area); or 15 (d) a person in the Northern Territory who is, or is potentially, 16 subject to the income management regime under 17 section 123UD or 123UE of that Act (school enrolment and 18 attendance); or 19 (e) a person who is subject to the income management regime 20 under section 123UF of that Act (Queensland Commission). 21 (2) To the extent that this subsection applies, the provisions referred to 22 in paragraph (1)(a), and any acts referred to in paragraph (1)(b), 23 are, for the purposes of the Racial Discrimination Act 1975, special 24 measures. 25 (3) To the extent that this subsection applies, the provisions referred to 26 in paragraph (1)(a), and any acts referred to in paragraph (1)(b), are 27 excluded from the operation of Part II of the Racial Discrimination 28 Act 1975. 29 (4) The following are, for the purposes of the Racial Discrimination 30 Act 1975, special measures: 31 (a) any acts done by the Queensland Commission in relation to 32 the giving of: 33 (i) a notice referred to in paragraph 123UF(1)(b) or (2)(c) 34 of the Social Security (Administration) Act 1999; or 35 (ii) a notice referred to in paragraph 123YM(2)(c) or 36 123YN(2)(c) of that Act; or [Page Break] 2 (b) any provisions of any laws made by, or any acts done by, 3 Queensland in relation to the establishment or operation of 4 the Queensland Commission. 5 (5) The following are excluded from the operation of Part II of the 6 Racial Discrimination Act 1975: 7 (a) any acts done by the Queensland Commission in relation to 8 the giving of: 9 (i) a notice referred to in paragraph 123UF(1)(b) or (2)(c) 10 of the Social Security (Administration) Act 1999; or 11 (ii) a notice referred to in paragraph 123YM(2)(c) or 12 123YN(2)(c) of that Act; or 13 (iii) a direction referred to in section 123ZK of that Act; 14 (b) any provisions of any laws made by, or any acts done by, 15 Queensland in relation to the establishment or operation of 16 the Queensland Commission. 17 Definitions etc. 18 (6) In this section: 19 Queensland Commission has the meaning given by section 123TC 20 of the Social Security (Administration) Act 1999. 21 (7) In this section, a reference to any acts done includes a reference to 22 any failure to do an act. 23 5 Some Queensland and Northern Territory laws excluded--Part 3B 24 of the Social Security (Administration) Act 25 (1) Subsections (2) and (3) apply to: 26 (a) the provisions of Part 3B of the Social Security 27 (Administration) Act 1999; and 28 (b) any acts done under or for the purposes of: 29 (i) those provisions; or 30 (ii) the income management regime; 31 in relation to: 32 (c) a person who is, or is potentially, subject to the income 33 management regime under section 123UB of that Act 34 (relevant Northern Territory area); or [Page Break] 2 subject to the income management regime under 3 section 123UD or 123UE of that Act (school enrolment and 4 attendance); or 5 (e) a person who is subject to the income management regime 6 under section 123UF of that Act (Queensland Commission). 7 (2) To the extent that this subsection applies, the provisions referred to 8 in paragraph (1)(a) are intended to apply to the exclusion of a law 9 of Queensland or the Northern Territory that deals with 10 discrimination so far as it would otherwise apply. 11 (3) To the extent that this subsection applies, any acts referred to in 12 paragraph (1)(b) have effect despite any law of Queensland or the 13 Northern Territory that deals with discrimination. 14 Queensland and Northern Territory laws that are not excluded 15 (4) However, subsections (2) and (3) do not apply to a law of 16 Queensland or the Northern Territory so far as the Minister 17 determines, by legislative instrument, that the law is a law to which 18 subsections (2) and (3) do not apply. 19 Reference to acts done includes failure to do an act 20 (5) In this section, a reference to any acts done includes a reference to 21 any failure to do an act. 22 6 Racial Discrimination Act--determining terms of relevant activity 23 agreement for approved programs of work for income 24 support 25 (1) Subsections (2) and (3) apply in relation to the implementation of 26 guidelines, or the doing of any other acts, for the purpose of 27 determining the terms of a relevant activity agreement in relation to 28 an approved program of work for income support payment, if the 29 implementation or acts are done in the period: 30 (a) beginning on 9 July 2007; and 31 (b) ending 5 years after the commencement of section 1 of the 32 Northern Territory National Emergency Response Act 2007. 33 (2) Any such implementation, or other acts, are, for the purposes of the 34 Racial Discrimination Act 1975, special measures. [Page Break] 2 operation of Part II of the Racial Discrimination Act 1975. 3 Definitions etc. 4 (4) In this section: 5 approved program of work for income support payment has the 6 same meaning as in the Social Security Act 1991. 7 relevant activity agreement means: 8 (a) a Parenting Payment Activity Agreement (within the 9 meaning of the Social Security Act 1991); or 10 (b) a Youth Allowance Activity Agreement (within the meaning 11 of that Act); or 12 (c) a Newstart Activity Agreement (within the meaning of that 13 Act); or 14 (d) a Special Benefit Activity Agreement (within the meaning of 15 that Act); 16 that is in force between the Secretary and a person who is 17 ordinarily resident in a relevant Northern Territory area within the 18 meaning of Part 3B of the Social Security (Administration) Act 19 1999. 20 Reference to acts done includes failure to do an act 21 (5) In this section, a reference to any acts done includes a reference to 22 any failure to do an act. 23 7 Some Northern Territory laws excluded--determining terms of 24 relevant activity agreement for approved programs of 25 work for income support 26 (1) Subsection (2) applies in relation to the implementation of 27 guidelines, or the doing of any other acts, for the purpose of 28 determining the terms of a relevant activity agreement in relation to 29 an approved program of work for income support payment, if the 30 implementation or acts are done in the period: 31 (a) beginning on 9 July 2007; and 32 (b) ending 5 years after the commencement of section 1 of the 33 Northern Territory National Emergency Response Act 2007. [Page Break] 2 law of the Northern Territory that deals with discrimination. 3 Northern Territory laws that are not excluded 4 (3) However, subsection (2) does not apply to a law of the Northern 5 Territory so far as the Minister determines, by legislative 6 instrument, that the law is a law to which subsection (2) does not 7 apply. 8 Definitions 9 (4) In this section: 10 approved program of work for income support payment has the 11 same meaning as in the Social Security Act 1991. 12 relevant activity agreement means: 13 (a) a Parenting Payment Activity Agreement (within the 14 meaning of the Social Security Act 1991); or 15 (b) a Youth Allowance Activity Agreement (within the meaning 16 of that Act); or 17 (c) a Newstart Activity Agreement (within the meaning of that 18 Act); or 19 (d) a Special Benefit Activity Agreement (within the meaning of 20 that Act); 21 that is in force between the Secretary and a person who is 22 ordinarily resident in a relevant Northern Territory area within the 23 meaning of Part 3B of the Social Security (Administration) Act 24 1999. 25 Reference to acts done includes failure to do an act 26 (5) In this section, a reference to any acts done includes a reference to 27 any failure to do an act. [Page Break] 2 Schedule 1--Income management regime 3 4 A New Tax System (Family Assistance) (Administration) Act 5 1999 6 1 At the end of subsection 66(2) 7 Add: 8 ; and (g) Part 3B of the Social Security (Administration) Act 1999. 9 2 After subsection 219TE(1) 10 Insert: 11 (1A) If a person who is a nominee by virtue of an appointment under 12 section 219TB becomes subject to the income management regime 13 under section 123UC of the Social Security (Administration) Act 14 1999, the Secretary must, as soon as practicable, cancel the 15 appointment. 16 Social Security Act 1991 17 3 Subsection 1061EK(1) 18 After "238", insert "and Part 3B". 19 Social Security (Administration) Act 1999 20 4 After paragraph 60(2)(a) 21 Insert: 22 (aa) Part 3B of this Act; and 23 5 Subsection 67(2) 24 Omit "either or both", substitute "any or all". 25 6 At the end of subsection 67(2) 26 Add: 27 ; (c) give the Department a statement about a matter that might 28 affect the operation, or prospective operation, of Part 3B in 29 relation to the person. [Page Break] 2 Repeal the subsection, substitute: 3 (5) An event or change of circumstances is not to be specified in a 4 notice under this section unless the occurrence of the event or 5 change of circumstances might: 6 (a) affect the payment of the social security payment or the 7 person's qualification for the concession card, as the case 8 requires; or 9 (b) affect the operation, or prospective operation, of Part 3B in 10 relation to the person. 11 8 Subsection 68(2) 12 Omit "either or both", substitute "any or all". 13 9 At the end of subsection 68(2) 14 Add: 15 ; (c) give the Department one or more statements about a matter 16 that might affect the operation, or prospective operation, of 17 Part 3B in relation to the person. 18 10 Subsection 68(5) 19 Repeal the subsection, substitute: 20 (5) An event or change of circumstances is not to be specified in a 21 notice under this section unless the occurrence of the event or 22 change of circumstances might: 23 (a) affect the payment of the social security payment or the 24 person's qualification for the concession card, as the case 25 requires; or 26 (b) affect the operation, or prospective operation, of Part 3B in 27 relation to the person. 28 11 After section 70 29 Insert: [Page Break] 2 Scope 3 (1) This section applies to a person if: 4 (a) the person is subject to the income management regime 5 (within the meaning of Part 3B); or 6 (b) the Secretary is satisfied that it is likely that the person will 7 become subject to the income management regime (within 8 the meaning of Part 3B). 9 Requirement 10 (2) The Secretary may give the person a notice that requires the person 11 to do either or both of the following: 12 (a) inform the Department if: 13 (i) a specified event or change of circumstances occurs; or 14 (ii) the person becomes aware that a specified event or 15 change of circumstances is likely to occur; 16 (b) give the Department one or more statements about a matter 17 that might affect the operation, or prospective operation, of 18 Part 3B in relation to the person. 19 (3) An event or change of circumstances is not to be specified in a 20 notice under this section unless the occurrence of the event or 21 change of circumstances might affect the operation, or prospective 22 operation, of Part 3B in relation to the person. 23 12 At the end of subsection 72(3) 24 Add: 25 or (e) in the case of a notice under section 70A that requires the 26 giving of information mentioned in paragraph 70A(2)(a)--be 27 the period of 14 days after: 28 (i) the day on which the event or change of circumstances 29 occurs; or 30 (ii) the day on which the person becomes aware that the 31 event or change of circumstances is likely to occur; 32 as the case may be; or 33 (f) in the case of a notice under section 70A that requires the 34 giving of a statement mentioned in paragraph 70A(2)(b)-- [Page Break] 2 is given. 3 13 Paragraph 72(4)(a) 4 Omit "or 68", substitute ", 68 or 70A". 5 14 Subsections 72(6) and (7) 6 Omit "or 68", substitute ", 68 or 70A". 7 15 Subsection 74(1) 8 Omit "or 70", substitute ", 70 or 70A". 9 16 After subsection 123E(1) 10 Insert: 11 (1A) If a person who is a nominee by virtue of an appointment under 12 section 123B becomes subject to the income management regime 13 under section 123UC, the Secretary must, as soon as practicable, 14 revoke the appointment. 15 17 After Part 3A 16 Insert: 17 Part 3B--Income management regime 18 Division 1--Introduction 19 123TA Simplified outline 20 The following is a simplified outline of this Part: 21 · This Part sets up an income management regime for recipients 22 of certain welfare payments. 23 · A person may become subject to the income management 24 regime because: 25 (a) the person lives in a declared relevant Northern 26 Territory area; or [Page Break] 2 requires the person to be subject to the income 3 management regime; or 4 (c) the person, or the person's partner, has a child who 5 does not meet school enrolment requirements; or 6 (d) the person, or the person's partner, has a child who 7 has unsatisfactory school attendance; or 8 (e) the Queensland Commission requires the person to 9 be subject to the income management regime. 10 · A person who is subject to the income management regime 11 will have an income management account. 12 · Amounts will be deducted from the person's welfare 13 payments and credited to the person's income management 14 account. 15 · Amounts will be debited from the person's income 16 management account for the purposes of enabling the 17 Secretary to take action directed towards meeting the priority 18 needs of: 19 (a) the person; and 20 (b) the person's partner; and 21 (c) the person's children; and 22 (d) any other dependants of the person. 23 123TB Objects 24 The objects of this Part are as follows: 25 (a) to promote socially responsible behaviour, particularly in 26 relation to the care and education of children; 27 (b) to set aside the whole or a part of certain welfare payments; 28 (c) to ensure that the amount set aside is directed to meeting the 29 priority needs of: [Page Break] 2 (ii) the recipient's partner; and 3 (iii) the recipient's children; and 4 (iv) any other dependants of the recipient. 5 123TC Definitions 6 In this Part: 7 account statement, in relation to an income management account, 8 means a statement that sets out: 9 (a) the amounts credited to the income management account 10 during a particular period; and 11 (b) the amounts debited from the income management account 12 during that period; and 13 (c) the balance of the income management account as at the end 14 of that period. 15 acquire has the same meaning as in the Trade Practices Act 1974. 16 alcoholic beverage means a beverage that contains more than 0.1% 17 by volume of ethyl alcohol. 18 applicable school period has the meaning given by section 123UI. 19 category A welfare payment means: 20 (a) a social security benefit; or 21 (b) a social security pension; or 22 (c) a payment under the scheme known as the ABSTUDY 23 scheme that includes an amount identified as living 24 allowance. 25 category B welfare payment means: 26 (a) a category A welfare payment; or 27 (b) double orphan pension; or 28 (c) carer allowance; or 29 (d) mobility allowance; or 30 (e) pensioner education supplement; or 31 (f) telephone allowance under Part 2.25 of the 1991 Act; or 32 (g) utilities allowance under Part 2.25A of the 1991 Act; or [Page Break] 2 tax benefit by instalment) under the Family Assistance 3 Administration Act; or 4 (i) a distance education payment under the scheme known as the 5 Assistance for Isolated Children Scheme, where the payment 6 relates to a child or children at a Homelands Learning Centre; 7 or 8 (j) a payment under the scheme known as the ABSTUDY 9 scheme that includes an amount identified as pensioner 10 education supplement; or 11 (k) a social security bereavement payment; or 12 (l) a Northern Territory CDEP transition payment; 13 but does not include: 14 (m) an advance payment under Part 2.22 of the 1991 Act; or 15 (n) an advance pharmaceutical allowance under Part 2.23 of the 16 1991 Act; or 17 (o) a mobility allowance advance under section 1045 of the 1991 18 Act. 19 category C welfare payment means: 20 (a) an advance payment under Part 2.22 of the 1991 Act; or 21 (b) an advance pharmaceutical allowance under Part 2.23 of the 22 1991 Act; or 23 (c) a mobility allowance advance under section 1045 of the 1991 24 Act; or 25 (d) arrears of family tax benefit by instalment under the Family 26 Assistance Administration Act; or 27 (e) family tax benefit for a past period under the Family 28 Assistance Administration Act; or 29 (f) family tax benefit by single payment/in substitution because 30 of the death of another individual under the Family 31 Assistance Administration Act; or 32 (g) family tax benefit advance under the Family Assistance 33 Administration Act; or 34 (h) baby bonus under the Family Assistance Act; or 35 (i) maternity immunisation allowance under the Family 36 Assistance Act. 37 category D welfare payment means: 38 (a) a service pension; or [Page Break] 2 (c) Defence Force Income Support Allowance. 3 category F welfare payment means: 4 (a) family tax benefit by instalment (other than arrears of family 5 tax benefit by instalment) under the Family Assistance 6 Administration Act; or 7 (b) double orphan pension; or 8 (c) carer allowance; or 9 (d) a distance education payment under the scheme known as the 10 Assistance for Isolated Children Scheme, where the payment 11 relates to a child or children at a Homelands Learning Centre. 12 category G welfare payment means: 13 (a) arrears of family tax benefit by instalment under the Family 14 Assistance Administration Act; or 15 (b) family tax benefit for a past period under the Family 16 Assistance Administration Act; or 17 (c) family tax benefit by single payment/in substitution because 18 of the death of another individual under the Family 19 Assistance Administration Act; or 20 (d) family tax benefit advance under the Family Assistance 21 Administration Act; or 22 (e) baby bonus under the Family Assistance Act; or 23 (f) maternity immunisation allowance under the Family 24 Assistance Act. 25 category H welfare payment means: 26 (a) a social security benefit; or 27 (b) a social security pension; or 28 (c) a payment under the scheme known as the ABSTUDY 29 scheme that includes an amount identified as living 30 allowance; or 31 (d) a service pension; or 32 (e) income support supplement; or 33 (f) Defence Force Income Support Allowance. 34 category I welfare payment means: 35 (a) a category H welfare payment; or 36 (b) double orphan pension; or [Page Break] 2 (d) family tax benefit advance under the Family Assistance 3 Administration Act; or 4 (e) baby bonus under the Family Assistance Act; or 5 (f) maternity immunisation allowance under the Family 6 Assistance Act; or 7 (g) carer allowance; or 8 (h) mobility allowance; or 9 (i) pensioner education supplement; or 10 (j) telephone allowance under Part 2.25 of the 1991 Act; or 11 (k) telephone allowance under Part VIIB of the Veterans' 12 Entitlements Act; or 13 (l) utilities allowance under Part 2.25A of the 1991 Act; or 14 (m) utilities allowance under Part VIIAC of the Veterans' 15 Entitlements Act; or 16 (n) a distance education payment under the scheme known as the 17 Assistance for Isolated Children Scheme, where the payment 18 relates to a child or children at a Homelands Learning Centre; 19 or 20 (o) a payment under the scheme known as the ABSTUDY 21 scheme that includes an amount identified as pensioner 22 education supplement; or 23 (p) a social security bereavement payment; or 24 (q) a veterans' entitlement bereavement payment; or 25 (r) a Northern Territory CDEP transition payment; or 26 (s) an advance payment under Part 2.22 of the 1991 Act; or 27 (t) an advance pharmaceutical allowance under Part 2.23 of the 28 1991 Act; or 29 (u) a mobility allowance advance under section 1045 of the 1991 30 Act; or 31 (v) an advance payment under Part IVA or VIIA of the Veterans' 32 Entitlements Act. 33 category P welfare payment means: 34 (a) a social security benefit; or 35 (b) a social security pension (other than an age pension or a carer 36 payment); or [Page Break] 2 scheme that includes an amount identified as living 3 allowance. 4 category Q welfare payment means: 5 (a) a category P welfare payment; or 6 (b) carer allowance; or 7 (c) mobility allowance; or 8 (d) pensioner education supplement; or 9 (e) telephone allowance under Part 2.25 of the 1991 Act; or 10 (f) utilities allowance under Part 2.25A of the 1991 Act; or 11 (g) a distance education payment under the scheme known as the 12 Assistance for Isolated Children Scheme, where the payment 13 relates to a child or children at a Homelands Learning Centre; 14 or 15 (h) a social security bereavement payment (other than a social 16 security bereavement payment in relation to an age pension 17 or a carer payment); or 18 (i) a payment under the scheme known as the ABSTUDY 19 scheme that includes an amount identified as pensioner 20 education supplement; or 21 (j) an advance payment under Part 2.22 of the 1991 Act (other 22 than an advance payment of an age pension or a carer 23 payment); or 24 (k) an advance pharmaceutical allowance under Part 2.23 of the 25 1991 Act (other than an advance pharmaceutical allowance in 26 relation to an age pension or a carer payment); or 27 (l) a mobility allowance advance under section 1045 of the 1991 28 Act; or 29 (m) double orphan pension; or 30 (n) family tax benefit under the Family Assistance Act; or 31 (o) family tax benefit advance under the Family Assistance 32 Administration Act; or 33 (p) baby bonus under the Family Assistance Act; or 34 (q) maternity immunisation allowance under the Family 35 Assistance Act. 36 category R welfare payment means: 37 (a) age pension; or [Page Break] 2 (c) a service pension; or 3 (d) income support supplement; or 4 (e) Defence Force Income Support Allowance. 5 category S welfare payment means: 6 (a) family tax benefit under the Family Assistance Act; or 7 (b) family tax benefit advance under the Family Assistance 8 Administration Act; or 9 (c) baby bonus under the Family Assistance Act; or 10 (d) maternity immunisation allowance under the Family 11 Assistance Act; or 12 (e) double orphan pension; or 13 (f) carer allowance; or 14 (g) a distance education payment under the scheme known as the 15 Assistance for Isolated Children Scheme, where the payment 16 relates to a child or children at a Homelands Learning Centre. 17 Centrelink means the Commonwealth Services Delivery Agency. 18 child of a person means: 19 (a) a dependent child of the person; or 20 (b) an FTB child of the person; or 21 (c) on or after 1 July 2008--a regular care child of the person. 22 This definition does not apply to: 23 (d) the definition of child protection officer in this section; or 24 (e) Division 2; or 25 (f) subsection 123ZE(2); or 26 (g) section 123ZEB. 27 child protection officer means an officer or employee of a State or 28 Territory who has functions, powers or duties in relation to the 29 care, protection or welfare of children. 30 declared child protection State or Territory has the meaning given 31 by section 123TF. 32 declared primary school area has the meaning given by subsection 33 123TG(1). [Page Break] 2 by section 123TE. 3 declared secondary school area has the meaning given by 4 subsection 123TG(3). 5 designated nominee of a person (the first person) means: 6 (a) a payment nominee of the first person; or 7 (b) a person to whom instalments of youth allowance of the first 8 person are to be paid in accordance with subsection 45(1). 9 eligible care child has the meaning given by section 123UH. 10 eligible care period has the meaning given by section 123UJ. 11 eligible recipient has the meaning given by section 123TK. 12 excluded goods has the meaning given by subsection 123TI(1). 13 excluded payment nominee means: 14 (a) the Public Trustee (however described) of a State or 15 Territory; or 16 (b) a payment nominee who is not subject to the income 17 management regime. 18 excluded service has the meaning given by subsection 123TI(2). 19 exempt Northern Territory person has the meaning given by 20 section 123UG. 21 family law order means: 22 (a) a parenting order within the meaning of section 64B of the 23 Family Law Act 1975; or 24 (b) a family violence order within the meaning of section 4 of 25 that Act; or 26 (c) a State child order registered under section 70D of that Act; 27 or 28 (d) an overseas child order registered under section 70G of that 29 Act. 30 Finance Minister has the same meaning as in the Financial 31 Management and Accountability Act 1997. [Page Break] 2 customer of a gambling service (within the meaning of the 3 Interactive Gambling Act 2001). 4 goods has the same meaning as in the Trade Practices Act 1974. 5 income management account means a notional account kept in 6 accordance with section 123WA. 7 income tax law has the same meaning as in the Income Tax 8 Assessment Act 1997. 9 net amount of an instalment or payment means: 10 (a) if a deduction is made from, or an amount is set off against, 11 the instalment or payment under: 12 (i) section 61 or 238 of this Act; or 13 (ii) section 1231 of the 1991 Act; or 14 (iii) section 84, 84A, 92, 92A, 225, 226 or 227 of the Family 15 Assistance Administration Act; or 16 (iv) section 50A, 50B, 58J, 79L, 122B, 122D, 205 or 205AA 17 of the Veterans' Entitlements Act; 18 so much of the instalment or payment as remains after the 19 deduction is made or the set-off occurs, as the case may be; 20 or 21 (b) in any other case--the amount of the instalment or payment. 22 non-alcoholic beverage means a beverage other than an alcoholic 23 beverage. 24 parenting plan has the same meaning as in the Family Law Act 25 1975. 26 payment nominee means: 27 (a) a person who is, by virtue of an appointment in force under 28 section 123B of this Act or section 219TB of the Family 29 Assistance Administration Act, the payment nominee of 30 another person; or 31 (b) a person to whom payment of another person's service 32 pension is made by virtue of an approval in force under 33 section 58D of the Veterans' Entitlements Act; or [Page Break] 2 pension is made by virtue of an appointment in force under 3 section 202 of the Veterans' Entitlements Act. 4 pornographic material has the meaning given by section 123TJ. 5 priority needs has the meaning given by section 123TH. 6 quarter means a period of 3 months beginning on 1 January, 7 1 April, 1 July or 1 October. 8 Queensland Commission means a body or agency that: 9 (a) is established by a law of Queensland; and 10 (b) is specified in a legislative instrument made by the Minister 11 for the purposes of this paragraph. 12 registered parenting plan has the same meaning as in the Family 13 Law Act 1975. 14 relevant Northern Territory area has the meaning given by 15 section 123TD. 16 service has the same meaning as in the Trade Practices Act 1974. 17 social security bereavement payment means a payment under any 18 of the following provisions of the 1991 Act: 19 (a) Division 9 of Part 2.2; 20 (b) Division 10 of Part 2.3; 21 (c) Subdivision B of Division 9 of Part 2.4; 22 (d) Subdivision B or D of Division 9 of Part 2.5; 23 (e) Division 9 of Part 2.7; 24 (f) Division 9 of Part 2.8; 25 (g) Subdivision B or C of Division 9 of Part 2.10; 26 (h) Subdivision A of Division 10 of Part 2.11; 27 (i) Division 10 of Part 2.11A; 28 (j) Subdivision AA of Division 9 of Part 2.12; 29 (k) Subdivision C of Division 11 of Part 2.12B; 30 (l) Division 9 of Part 2.14; 31 (m) Division 9 of Part 2.15; 32 (n) Subdivision C of Division 9 of Part 2.15A; 33 (o) Division 10 of Part 2.16; [Page Break] 2 (q) Subdivision B of Division 10 of Part 2.20. 3 Special Account means the Income Management Special Account 4 established by section 123VA. 5 stored value card includes a portable device that is: 6 (a) capable of storing monetary value in a form other than 7 physical currency; and 8 (b) of a kind specified in a legislative instrument made by the 9 Minister for the purposes of this paragraph. 10 subject to the income management regime has the meaning given 11 by section 123UB, 123UC, 123UD, 123UE or 123UF. 12 supply has the same meaning as in the Trade Practices Act 1974. 13 tobacco product has the same meaning as in the Tobacco 14 Advertising Prohibition Act 1992. 15 unsatisfactory school attendance situation has the meaning given 16 by section 123UK. 17 veterans' entitlement bereavement payment means: 18 (a) a bereavement payment within the meaning of subsection 19 53K(3) of the Veterans' Entitlements Act; or 20 (b) a bereavement payment paid under subsection 53L(4) of that 21 Act; or 22 (c) an amount paid under subsection 53Q(1) of that Act; or 23 (d) a bereavement payment within the meaning of subsection 24 53T(1) of that Act. 25 123TD Relevant Northern Territory area 26 For the purposes of this Part, each of the following areas in the 27 Northern Territory is a relevant Northern Territory area: 28 (a) each prescribed area within the meaning of the Northern 29 Territory National Emergency Response Act 2007; 30 (b) the place known as Finke or Aputula; 31 (c) the place known as Kalkarindji or Wave Hill. [Page Break] 2 (1) The Minister may, by writing, determine that a specified relevant 3 Northern Territory area is a declared relevant Northern Territory 4 area for the purposes of this Part. 5 (2) A determination under subsection (1) must specify an expiry date 6 for the determination. 7 (3) An expiry date must occur in the 12-month period beginning when 8 the determination was made. 9 (4) Subsection (3) has effect subject to subsection (7). 10 (5) In deciding whether to make a determination under subsection (1), 11 the Minister must have regard to the following matters: 12 (a) the availability in the relevant Northern Territory area of 13 information setting out: 14 (i) the proposal to make the determination; and 15 (ii) an explanation, in summary form, of the consequences 16 of the making of the determination for people who may 17 become subject to the income management regime 18 under section 123UB; 19 (b) the opportunities that have been made available to people in 20 the area to discuss: 21 (i) the proposal to make the determination; and 22 (ii) the consequences of the making of the determination for 23 people who may become subject to the income 24 management regime under section 123UB; 25 with employees or officers of the Commonwealth; 26 (c) the opportunities that have been made available to potentially 27 affected people in the area to: 28 (i) discuss their circumstances with officers of Centrelink; 29 and 30 (ii) give Centrelink information about their expenditure; 31 (d) the extent to which it will be feasible for the Secretary to take 32 action under Division 6 in relation to people who may 33 become subject to the income management regime under 34 section 123UB; 35 (e) such other matters (if any) as the Minister considers relevant. [Page Break] 2 determination under subsection (1). 3 Extension of expiry date 4 (7) The Minister may, by writing, extend or further extend the expiry 5 date of a specified determination made under subsection (1), so 6 long as the extension or further extension is for a period of not 7 more than 12 months. 8 Duration of determination 9 (8) Unless sooner revoked, a determination under subsection (1) ceases 10 to be in force on the expiry date of the determination. 11 Fresh determination 12 (9) If a determination under subsection (1) expires, this Act does not 13 prevent the Minister from making a fresh determination under 14 subsection (1) relating to the same relevant Northern Territory area 15 as the expired determination. 16 Revocation 17 (10) If a determination is in force under subsection (1), the Minister 18 may, by writing, revoke the determination. 19 (11) Subsection (10) does not limit the application of subsection 33(3) 20 of the Acts Interpretation Act 1901 to other instruments under this 21 Act. 22 Interlocutory orders 23 (12) A court must not make an interlocutory order suspending the 24 operation of a decision under this section unless the court is 25 satisfied that there are exceptional circumstances. 26 Legislative instrument 27 (13) A determination under subsection (1) is a legislative instrument, 28 but section 42 (disallowance) of the Legislative Instruments Act 29 2003 does not apply to the determination. [Page Break] 2 instrument, but section 42 (disallowance) of the Legislative 3 Instruments Act 2003 does not apply to the instrument. 4 123TF Declared child protection State or Territory 5 The Minister may, by legislative instrument, determine that a 6 specified State or Territory is a declared child protection State or 7 Territory for the purposes of this Part. 8 123TG Declared primary school area and declared secondary school 9 area 10 Declared primary school area 11 (1) The Minister may, by legislative instrument, determine that: 12 (a) a specified State; or 13 (b) a specified Territory; or 14 (c) a specified area; 15 is a declared primary school area for the purposes of this Part. 16 (2) This Part does not prevent an area specified under paragraph (1)(c) 17 from being described as the area within the boundary of premises 18 occupied by a particular primary school. 19 Declared secondary school area 20 (3) The Minister may, by legislative instrument, determine that: 21 (a) a specified State; or 22 (b) a specified Territory; or 23 (c) a specified area; 24 is a declared secondary school area for the purposes of this Part. 25 (4) This Part does not prevent an area specified under paragraph (3)(c) 26 from being described as the area within the boundary of premises 27 occupied by a particular secondary school. 28 123TH Priority needs 29 (1) For the purposes of this Part, a person's priority needs are as 30 follows: 31 (a) food; [Page Break] 2 (c) clothing; 3 (d) footwear; 4 (e) basic personal hygiene items; 5 (f) basic household items; 6 (g) housing, including: 7 (i) rent; and 8 (ii) home loan repayments; and 9 (iii) repairs; and 10 (iv) maintenance; 11 (h) household utilities, including: 12 (i) electricity; and 13 (ii) gas; and 14 (iii) water; and 15 (iv) sewerage; and 16 (v) garbage collection; and 17 (vi) fixed-line telephone; 18 (i) rates and land tax; 19 (j) health, including: 20 (i) medical, nursing, dental or other health services; and 21 (ii) pharmacy items; and 22 (iii) the supply, alteration or repair of artificial teeth; and 23 (iv) the supply, alteration or repair of an artificial limb (or 24 part of a limb), artificial eye or hearing aid; and 25 (v) the supply, alteration or repair of a medical or surgical 26 appliance; and 27 (vi) the testing of eyes; and 28 (vii) the prescribing of spectacles or contact lenses; and 29 (viii) the supply of spectacles or contact lenses; and 30 (ix) the management of a disability; 31 (k) child care and development; 32 (l) education and training; 33 (m) items required for the purposes of the person's employment, 34 including: 35 (i) a uniform or other occupational clothing; and 36 (ii) protective footwear; and 37 (iii) tools of trade; [Page Break] 2 (o) public transport services, where the services are used wholly 3 or partly for purposes in connection with any of the above 4 needs; 5 (p) the acquisition, repair, maintenance or operation of: 6 (i) a motor vehicle; or 7 (ii) a motor cycle; or 8 (iii) a bicycle; 9 that is used wholly or partly for purposes in connection with 10 any of the above needs; 11 (q) any thing specified in a legislative instrument made by the 12 Minister for the purposes of this paragraph. 13 (2) For the purposes of this Part, excluded goods or excluded services 14 are not priority needs. 15 123TI Excluded goods and excluded services 16 Excluded goods 17 (1) Each of the following goods are excluded goods for the purposes 18 of this Part: 19 (a) alcoholic beverages; 20 (b) tobacco products; 21 (c) pornographic material; 22 (d) goods specified in a legislative instrument made by the 23 Minister for the purposes of this paragraph. 24 Excluded services 25 (2) Each of the following services is an excluded service for the 26 purposes of this Part: 27 (a) gambling; 28 (b) a service specified in a legislative instrument made by the 29 Minister for the purposes of this paragraph. 30 123TJ Pornographic material 31 (1) For the purposes of this Part, pornographic material is: 32 (a) a publication, film or computer game classified RC; or [Page Break] 2 contains material that would be likely to cause it to be 3 classified RC; or 4 (c) a publication classified Category 1 restricted or Category 2 5 restricted; or 6 (d) an unclassified publication that contains material that would 7 be likely to cause it to be classified Category 1 restricted or 8 Category 2 restricted; or 9 (e) a film classified X 18+; or 10 (f) an unclassified film that contains material that would be 11 likely to cause it to be classified X 18+. 12 (2) An expression used in subsection (1) and in the Classification 13 (Publications, Films and Computer Games) Act 1995 has the same 14 meaning in subsection (1) as it has in that Act. 15 123TK Eligible recipient 16 For the purposes of this Part, if a claim by a person for a particular 17 payment is granted, the person is an eligible recipient of the 18 payment during the period: 19 (a) beginning on: 20 (i) if the payment is in relation to a service pension, income 21 support supplement or Defence Force Income Support 22 Allowance--the provisional commencement day 23 (within the meaning of the Veterans' Entitlements Act) 24 for the payment; or 25 (ii) in any other case--the start day for the payment; and 26 (b) ending when the payment is cancelled. 27 Division 2--Persons subject to the income management 28 regime 29 Subdivision A--Situations in which a person is subject to the 30 income management regime 31 123UA Persons subject to the income management regime 32 This Subdivision sets out the various situations in which a person 33 is subject to the income management regime. [Page Break] 2 Northern Territory area 3 (1) For the purposes of this Part, a person is subject to the income 4 management regime at a particular time (the test time) if: 5 (a) at the test time, the person, or the person's partner, is an 6 eligible recipient of a category A welfare payment; and 7 (b) the person was physically present overnight in a relevant 8 Northern Territory area at any time during the period: 9 (i) beginning at the start of 21 June 2007; and 10 (ii) ending at the end of the most recent instalment period in 11 relation to the category A welfare payment or payments; 12 and 13 (c) at the test time, the relevant Northern Territory area is a 14 declared relevant Northern Territory area; and 15 (d) at the test time, the person is not an exempt Northern 16 Territory person in relation to the relevant Northern Territory 17 area (see section 123UG); and 18 (e) if, at the test time, the person has a payment nominee--the 19 payment nominee is not an excluded payment nominee; and 20 (f) at the test time, the person is not subject to the income 21 management regime under section 123UC, 123UD, 123UE or 22 123UF; and 23 (g) the test time occurs in the 5-year period that began at the 24 commencement of this section. 25 (2) For the purposes of this Part, a person is subject to the income 26 management regime at a particular time (the test time) if: 27 (a) at the test time, neither the person, nor the person's partner, is 28 an eligible recipient of a category A welfare payment; and 29 (b) at the test time, the person, or the person's partner, is an 30 eligible recipient of a category D welfare payment; and 31 (c) the person, or the person's partner, is entitled to be paid 32 family tax benefit under the Family Assistance Act; and 33 (d) the person was physically present overnight in a relevant 34 Northern Territory area at any time during the period: 35 (i) beginning at the start of 21 June 2007; and 36 (ii) ending at the end of the most recent instalment period in 37 relation to the category D welfare payment or payments; 38 and [Page Break] 2 declared relevant Northern Territory area; and 3 (f) at the test time, the person is not an exempt Northern 4 Territory person in relation to the relevant Northern Territory 5 area (see section 123UG); and 6 (g) if, at the test time, the person has a payment nominee--the 7 payment nominee is not an excluded payment nominee; and 8 (h) at the test time, the person is not subject to the income 9 management regime under section 123UC, 123UD, 123UE or 10 123UF; and 11 (i) the test time occurs in the 5-year period that began at the 12 commencement of this section. 13 (3) For the purposes of this Part, a person is subject to the income 14 management regime at a particular time (the test time) if: 15 (a) at the test time, the person is not subject to the income 16 management regime under any other provision of this 17 Subdivision; and 18 (b) at the test time, the person has a payment nominee; and 19 (c) at the test time, the payment nominee is subject to the income 20 management regime under subsection (1) or (2). 21 123UC Persons subject to the income management regime--child 22 protection 23 For the purposes of this Part, a person is subject to the income 24 management regime at a particular time (the test time) if: 25 (a) at the test time, the person, or the person's partner, is an 26 eligible recipient of a category H welfare payment; and 27 (b) before the test time, a child protection officer of a State or 28 Territory gave the Secretary a written notice requiring that 29 the person be subject to the income management regime 30 under this section; and 31 (c) the notice was given: 32 (i) under a law (whether written or unwritten) in force in a 33 State or Territory (other than a law of the 34 Commonwealth); or 35 (ii) in the exercise of the executive power of a State or 36 Territory; and [Page Break] 2 revoked; and 3 (e) at the test time, the State or Territory is a declared child 4 protection State or Territory; and 5 (f) if, at the test time, the person has a payment nominee--the 6 payment nominee is not an excluded payment nominee; and 7 (g) at the test time, the person is not subject to the income 8 management regime under section 123UF. 9 123UD Persons subject to the income management regime--school 10 enrolment 11 (1) For the purposes of this Part, a person is subject to the income 12 management regime at a particular time (the test time) if: 13 (a) at the test time, the person, or the person's partner, is an 14 eligible recipient of a category H welfare payment; and 15 (b) at the test time, the person, or the person's partner, has an 16 eligible care child; and 17 (c) under a law of a State or Territory, the eligible care child is 18 required to be enrolled at school; and 19 (d) the Secretary is satisfied that it is appropriate for the eligible 20 care child to be enrolled at: 21 (i) a primary school in a declared primary school area; or 22 (ii) a secondary school in a declared secondary school area; 23 and 24 (e) at the test time, the eligible care child is not enrolled at: 25 (i) if subparagraph (d)(i) applies--a primary school in the 26 declared primary school area; or 27 (ii) if subparagraph (d)(ii) applies--a secondary school in 28 the declared secondary school area; and 29 (f) if, at the test time, the person has a payment nominee--the 30 payment nominee is not an excluded payment nominee; and 31 (g) at the test time, the person is not subject to the income 32 management regime under section 123UC or 123UF; and 33 (h) at the test time, a determination under subsection (2) is not in 34 force in relation to the person; and 35 (i) such other conditions (if any) as are specified in a legislative 36 instrument made by the Minister for the purposes of this 37 paragraph are satisfied. [Page Break] 2 from subsection (1). 3 (3) In making a determination under subsection (2), the Secretary must 4 comply with any principles set out in a legislative instrument made 5 by the Minister for the purposes of this subsection. 6 (4) For the purposes of this Part, a person is subject to the income 7 management regime at a particular time (the test time) if: 8 (a) at the test time, the person is not subject to the income 9 management regime under any other provision of this 10 Subdivision; and 11 (b) at the test time, the person has a payment nominee; and 12 (c) at the test time, the payment nominee is subject to the income 13 management regime under subsection (1). 14 Documentary evidence 15 (5) If a person, or the person's partner, has an eligible care child, the 16 Secretary may, by written notice given to the person, request the 17 person to give the Secretary, within a period (the compliance 18 period) specified in the notice, documentary evidence of the 19 eligible care child's enrolment at a school during a specified 20 applicable school period. 21 (6) A notice under subsection (5) must set out the effect of 22 subsection (9). 23 (7) The compliance period specified in a notice under subsection (5) 24 must not be shorter than 7 days. 25 (8) The Secretary may extend the compliance period specified in a 26 notice under subsection (5). 27 (9) If: 28 (a) a person is given a notice under subsection (5); and 29 (b) the person does not comply with the notice; 30 the Secretary may determine that subsection (1) has effect as if the 31 eligible care child was not enrolled at any school at any time 32 during the applicable school period specified in the notice. 33 (10) This Part does not prevent a notice from being characterised as: 34 (a) a notice under subsection (5); and [Page Break] 2 Commonwealth. 3 123UE Persons subject to the income management regime--school 4 attendance 5 (1) For the purposes of this Part, a person is subject to the income 6 management regime at a particular time (the test time) if: 7 (a) at the test time, the person, or the person's partner, is an 8 eligible recipient of a category H welfare payment; and 9 (b) at the test time, an unsatisfactory school attendance situation 10 exists in relation to a child; and 11 (c) throughout a period that ended before the unsatisfactory 12 school attendance situation came into existence, the child was 13 an eligible care child of: 14 (i) the person; or 15 (ii) the person's partner; and 16 (d) at the test time, the child is enrolled at a school; and 17 (e) if the school is a primary school--at the test time, the school 18 is in a declared primary school area; and 19 (f) if the school is a secondary school--at the test time, the 20 school is in a declared secondary school area; and 21 (g) before the test time, the person, or the person's partner, had 22 been given a formal warning under section 123UL; and 23 (h) the whole or a part of an applicable school period in relation 24 to the child occurred in the period: 25 (i) beginning when the formal warning was given; and 26 (ii) ending at the test time; and 27 (i) if, at the test time, the person has a payment nominee--the 28 payment nominee is not an excluded payment nominee; and 29 (j) at the test time, the person is not subject to the income 30 management regime under section 123UC or 123UF; and 31 (k) at the test time, a determination under subsection (2) is not in 32 force in relation to the person; and 33 (l) such other conditions (if any) as are specified in a legislative 34 instrument made by the Minister for the purposes of this 35 paragraph are satisfied. 36 (2) The Secretary may, by writing, determine that a person is exempt 37 from subsection (1). [Page Break] 2 comply with any principles set out in a legislative instrument made 3 by the Minister for the purposes of this subsection. 4 (4) For the purposes of this Part, a person is subject to the income 5 management regime at a particular time (the test time) if: 6 (a) at the test time, the person is not subject to the income 7 management regime under any other provision of this 8 Subdivision; and 9 (b) at the test time, the person has a payment nominee; and 10 (c) at the test time, the payment nominee is subject to the income 11 management regime under subsection (1). 12 123UF Persons subject to the income management regime-- 13 Queensland Commission 14 (1) For the purposes of this Part, a person is subject to the income 15 management regime at a particular time (the test time) if: 16 (a) at the test time, the person, or the person's partner, is an 17 eligible recipient of a category P welfare payment; and 18 (b) before the test time, the Queensland Commission gave the 19 Secretary a written notice requiring that the person be subject 20 to the income management regime under this subsection; and 21 (c) the notice was given under a law of Queensland; and 22 (d) the notice was not given in such circumstances (if any) as are 23 specified in a legislative instrument made by the Minister for 24 the purposes of this paragraph; and 25 (e) at the test time, the notice had not been withdrawn or 26 revoked; and 27 (f) if, at the test time, the person has a payment nominee--the 28 payment nominee is not an excluded payment nominee; and 29 (g) the test time occurs before 1 January 2012. 30 (2) For the purposes of this Part, a person is subject to the income 31 management regime at a particular time (the test time) if: 32 (a) at the test time, neither the person, nor the person's partner, is 33 an eligible recipient of a category P welfare payment; and 34 (b) at the test time, the person, or the person's partner, is an 35 eligible recipient of a category R welfare payment; and [Page Break] 2 Secretary a written notice requiring that the person be subject 3 to the income management regime under this subsection; and 4 (d) the notice was given under a law of Queensland; and 5 (e) the notice was not given in such circumstances (if any) as are 6 specified in a legislative instrument made by the Minister for 7 the purposes of this paragraph; and 8 (f) at the test time, the notice had not been withdrawn or 9 revoked; and 10 (g) if, at the test time, the person has a payment nominee--the 11 payment nominee is not an excluded payment nominee; and 12 (h) the test time occurs before 1 January 2012. 13 (3) For the purposes of this Part, a person is subject to the income 14 management regime at a particular time (the test time) if: 15 (a) at the test time, the person is not subject to the income 16 management regime under any other provision of this 17 Subdivision; and 18 (b) at the test time, the person has a payment nominee; and 19 (c) at the test time, the payment nominee is subject to the income 20 management regime under subsection (1) or (2). 21 Subdivision B--Exempt Northern Territory persons 22 123UG Exempt Northern Territory persons 23 Each relevant Northern Territory area 24 (1) The Secretary may, by written notice given to a person, determine 25 that the person is an exempt Northern Territory person in relation 26 to each relevant Northern Territory area for the purposes of this 27 Part. 28 (2) In deciding whether to make a determination under subsection (1), 29 the Secretary must have regard to the following matters: 30 (a) the person's family and kinship relationships; 31 (b) the area in which the person is usually physically present 32 overnight; 33 (c) the area or areas in which the person's assets are located; 34 (d) if the person has travelled outside the relevant Northern 35 Territory areas: [Page Break] 2 (ii) the duration of that travel; and 3 (iii) the reason for that travel; 4 (e) the address of the place of residence of the person last known 5 to the Secretary; 6 (f) the postal address of the person last known to the Secretary; 7 (g) whether the person has been physically present in any of the 8 relevant Northern Territory areas on a temporary basis; 9 (h) if the person has been physically present in any of the 10 relevant Northern Territory areas on a temporary basis--the 11 circumstances that resulted in the person being so physically 12 present in the area concerned. 13 (3) A determination under subsection (1) is not a legislative 14 instrument. 15 (4) The Minister may, by legislative instrument, determine that a 16 specified person is an exempt Northern Territory person in 17 relation to each relevant Northern Territory area for the purposes of 18 this Part. 19 Note: For specification by class, see subsection 13(3) of the Legislative 20 Instruments Act 2003. 21 (5) Subsections (1) and (4) do not limit each other. 22 Specific relevant Northern Territory area 23 (6) The Secretary may, by written notice given to a person, determine 24 that the person is an exempt Northern Territory person in relation 25 to a specified relevant Northern Territory area for the purposes of 26 this Part. 27 (7) In deciding whether to make a determination under subsection (6), 28 the Secretary must have regard to the following matters: 29 (a) the person's family and kinship relationships; 30 (b) the area in which the person is usually physically present 31 overnight; 32 (c) the area or areas in which the person's assets are located; 33 (d) if the person has travelled outside the relevant Northern 34 Territory area: 35 (i) the frequency of that travel; and [Page Break] 2 (iii) the reason for that travel; 3 (e) the address of the place of residence of the person last known 4 to the Secretary; 5 (f) the postal address of the person last known to the Secretary; 6 (g) whether the person has been physically present in the 7 relevant Northern Territory area on a temporary basis; 8 (h) if the person has been physically present in the relevant 9 Northern Territory area on a temporary basis--the 10 circumstances that resulted in the person being so physically 11 present in that area. 12 (8) A determination under subsection (6) is not a legislative 13 instrument. 14 Subdivision C--Additional provisions relating to school 15 enrolment and attendance 16 123UH Eligible care child 17 For the purposes of this Part, a person (the first person) is an 18 eligible care child of another person at a particular time if, and 19 only if: 20 (a) at that time, the first person is a dependent child of the other 21 person; or 22 (b) all of the following conditions are satisfied: 23 (i) that time occurs during an eligible care period; 24 (ii) under a family law order, registered parenting plan or 25 parenting plan that is in force during the eligible care 26 period, the first person is supposed to live or spend time 27 with the other person; 28 (iii) assuming the family law order, registered parenting plan 29 or parenting plan were complied with during the eligible 30 care period, the first person would have been in the 31 other person's care for at least 14% of that period. 32 123UI Applicable school period 33 (1) For the purposes of this Part, an applicable school period in 34 relation to a child is a period ascertained in accordance with a [Page Break] 2 subsection. 3 (2) A period ascertained under subsection (1) may be a recurring 4 period. 5 (3) A period may be ascertained under subsection (1) by reference to a 6 term of the school attended by the child. 7 (4) For the purposes of this Part, it is immaterial whether an applicable 8 school period begins before or after the commencement of this 9 section. 10 123UJ Eligible care period 11 (1) For the purposes of this Part, an eligible care period is a period 12 ascertained in accordance with a legislative instrument made by the 13 Minister for the purposes of this subsection. 14 (2) A period ascertained under subsection (1) may be a recurring 15 period (for example, a fortnight). 16 (3) For the purposes of this Part, it is immaterial whether an eligible 17 care period begins before or after the commencement of this 18 section. 19 123UK Unsatisfactory school attendance situation 20 (1) For the purposes of this Part, the question whether an 21 unsatisfactory school attendance situation exists, or has existed, 22 in relation to a child is to be ascertained in accordance with a 23 legislative instrument made by the Minister for the purposes of this 24 subsection. 25 (2) However, an unsatisfactory school attendance situation does not 26 exist in relation to a child if the child is not required, under a law of 27 a State or Territory, to attend school in a State or Territory. 28 (3) For the purposes of this Part, it is immaterial whether an 29 unsatisfactory school attendance situation exists or has existed 30 before or after the commencement of this section. [Page Break] 2 If: 3 (a) a person is not subject to the income management regime 4 under section 123UE; and 5 (b) the person, or the person's partner, has an eligible care child; 6 and 7 (c) an unsatisfactory school attendance situation exists, or has 8 existed, in relation to the eligible care child; 9 the Secretary may give the person a formal warning that the 10 person, or the person's partner, could become subject to the income 11 management regime under section 123UE if an unsatisfactory 12 school attendance situation exists in relation to the eligible care 13 child. 14 Division 3--Establishment of the Income Management 15 Special Account 16 123VA Establishment of the Income Management Special Account 17 (1) The Income Management Special Account is established by this 18 section. 19 (2) The Account is a Special Account for the purposes of the Financial 20 Management and Accountability Act 1997. 21 123VB Special Account not held on trust etc. 22 An amount standing to the credit of the Special Account: 23 (a) is not held on trust; and 24 (b) is special public money for the purposes of section 16 of the 25 Financial Management and Accountability Act 1997. 26 123VC Bank account 27 Amounts standing to the credit of the Special Account may be kept 28 in a single bank account. [Page Break] 2 Subdivision A--Income management accounts 3 123WA Income management accounts 4 Income management accounts to be kept 5 (1) Separate notional accounts are to be kept within the Special 6 Account in the names of particular persons. 7 Person's income management account 8 (2) An account kept in the name of a person is to be known as the 9 person's income management account. 10 Note: Section 123TC provides that income management account means a 11 notional account kept in accordance with this section. 12 123WB Opening of income management accounts 13 Power 14 (1) The Secretary may open an income management account in the 15 name of a particular person. 16 (2) The Secretary may open the income management account even if 17 the person is not subject to the income management regime. 18 Duty 19 (3) The Secretary must open an income management account in the 20 name of a particular person if: 21 (a) the person does not already have an income management 22 account; and 23 (b) the person is subject to the income management regime. 24 123WC Closing of income management accounts 25 The Secretary may close a person's income management account if 26 the balance of the income management account is nil, and: 27 (a) the person is not subject to the income management regime; 28 or [Page Break] 2 123WD Income management accounts may have a nil balance 3 Nil balance 4 (1) A person's income management account may have a nil balance. 5 Examples 6 (2) The following are examples of cases where an income management 7 account might have a nil balance: 8 (a) no amount has been credited to the income management 9 account; 10 (b) the balance of the income management account has been 11 debited under section 123WJ; 12 (c) the balance of the income management account has been 13 debited under section 123WL; 14 (d) the balance of the income management account has been 15 debited under Division 6. 16 123WE One income management account per person 17 Only one income management account 18 (1) Only one income management account may be kept in respect of a 19 particular person. 20 (2) A contravention of subsection (1) does not affect the validity of an 21 income management account. 22 Amalgamation 23 (3) If the Secretary becomes aware that 2 or more income management 24 accounts are being kept in respect of the same person, the Secretary 25 must amalgamate the accounts into a single account. 26 123WF Credits to, and debits from, a person's income management 27 account 28 An amount must not be credited to, or debited from, a person's 29 income management account except as provided by this Part. [Page Break] 2 123WG Internet and telephone access to account statements etc. 3 Scope 4 (1) This section applies if an income management account is kept in 5 the name of a person. 6 Internet and telephone access to account statements etc. 7 (2) The Secretary may issue the person with a means of identification 8 (for example, a personal identification number) that enables the 9 person to do either or both of the following: 10 (a) to access on the Internet electronic versions of account 11 statements for the person's income management account; 12 (b) to be told the balance of the person's income management 13 account using an automated telephone answering system. 14 123WH Person may request account statements 15 Scope 16 (1) This section applies if an income management account is kept in 17 the name of a person. 18 Account statement may be requested 19 (2) The person may request the Secretary to give the person a written 20 account statement for the income management account. 21 (3) The Secretary must comply with the request. 22 (4) However, the Secretary may refuse to comply with the request if 23 the person has made a previous request at any time during the 24 preceding period of 30 days. 25 123WI Account statements to be given 26 Scope 27 (1) This section applies if an income management account is kept in 28 the name of a person. [Page Break] 2 (2) At least once each quarter, the Secretary must give the person a 3 written account statement for the income management account. 4 (3) However, the Secretary is not required to give the person a written 5 account statement relating to a particular period unless: 6 (a) an amount has been credited to, or debited from, the income 7 management account during that period; or 8 (b) the income management account has a credit balance as at 9 the end of that period. 10 Subdivision C--Miscellaneous 11 123WJ Payment of credit balances of income management 12 accounts--person ceases to be subject to the income 13 management regime 14 Scope 15 (1) This section applies if: 16 (a) at a particular time, a person (the first person) ceases to be 17 subject to the income management regime; and 18 (b) the first person's income management account has a credit 19 balance at that time; and 20 (c) the Secretary is satisfied that the first person is not likely to 21 become subject to the income management regime within 60 22 days after the cessation. 23 Residual amount 24 (2) For the purposes of this section, the residual amount is an amount 25 equal to the credit balance of the first person's income 26 management account. 27 (3) The residual amount is payable to the first person in accordance 28 with this section. 29 Payment by instalments 30 (4) The Secretary may determine that the whole or a part of the 31 residual amount is to be paid to the first person by instalments. The [Page Break] 2 made by the Secretary. 3 (5) The days specified in the determination must occur within the 4 12-month period beginning when the person ceased to be subject to 5 the income management regime. 6 (6) If an instalment is paid under subsection (4): 7 (a) the Special Account is debited by an amount equal to the 8 amount of the instalment; and 9 (b) the first person's income management account is debited by 10 an amount equal to the amount of the instalment. 11 Lump sum payment 12 (7) The Secretary may determine that the whole or a part of the 13 residual amount is to be paid to the first person as a single lump 14 sum on a day determined by the Secretary. 15 (8) The day specified in the determination must occur within the 16 12-month period beginning when the person ceased to be subject to 17 the income management regime. 18 (9) The Secretary must not make a determination under subsection (7) 19 unless: 20 (a) the lump sum is $200 or less; or 21 (b) the Secretary is satisfied that there are special circumstances 22 that warrant the making of the determination. 23 (10) If a lump sum is paid under subsection (7): 24 (a) the Special Account is debited by an amount equal to the 25 lump sum; and 26 (b) the first person's income management account is debited by 27 an amount equal to the lump sum. 28 Expense payment 29 (11) The Secretary may, on behalf of the Commonwealth: 30 (a) make a payment in discharge, in whole or in part, of an 31 obligation of the first person to pay an amount to a third 32 person; or [Page Break] 2 obligation of a third person to pay an amount to a fourth 3 person; 4 so long as: 5 (c) the payment is made with the consent of the first person; and 6 (d) the amount paid by the Secretary does not exceed the residual 7 amount. 8 (12) The payment under subsection (11) must occur within the 9 12-month period beginning when the person ceased to be subject to 10 the income management regime. 11 (13) If the Secretary makes a payment under subsection (11): 12 (a) the Special Account is debited by an amount equal to the 13 amount paid under subsection (11); and 14 (b) the first person's income management account is debited by 15 an amount equal to the amount paid under subsection (11); 16 and 17 (c) the Secretary is taken to have paid the first person so much of 18 the residual amount as equals the amount paid under 19 subsection (11). 20 Set-off 21 (14) If the first person owes an amount (the debt amount) to the 22 Commonwealth, the Secretary may, with the consent of the first 23 person, set off the whole or part of the residual amount against the 24 whole or a part of the debt amount. 25 (15) The set-off under subsection (14) must occur within the 12-month 26 period beginning when the person ceased to be subject to the 27 income management regime. 28 (16) If the Secretary sets off an amount under subsection (14): 29 (a) the Special Account is debited by an amount equal to the 30 amount set off; and 31 (b) the first person's income management account is debited by 32 an amount equal to the amount set off; and 33 (c) the Secretary is taken to have paid the first person so much of 34 the residual amount as equals the amount set off. [Page Break] 2 (17) If a payment is made under subsection (4), (7) or (11), the payment 3 does not have consequences under the income tax law for the first 4 person. 5 (18) If the Secretary sets off an amount under subsection (14), the 6 set-off does not have consequences under the income tax law for 7 the first person. 8 123WK Payment into bank account etc. of credit balances of income 9 management accounts--person ceases to be subject to the 10 income management regime 11 Scope 12 (1) This section applies to an amount that is to be paid to a person as: 13 (a) an instalment under subsection 123WJ(4); or 14 (b) a lump sum under subsection 123WJ(7). 15 Payment into bank account etc. 16 (2) The amount is to be paid to the credit of a bank account kept by the 17 person. 18 (3) The bank account may be kept by the person either alone or jointly 19 or in common with another person. 20 (4) The Secretary may direct that the whole or a part of the amount be 21 paid to the person in a different way from that provided for by 22 subsection (2). 23 (5) If the Secretary gives a direction under subsection (4), the amount 24 is to be paid in accordance with the direction. 25 123WL Payment of credit balances of income management 26 accounts--person dies 27 Scope 28 (1) This section applies if: 29 (a) an income management account is kept in the name of a 30 person; and [Page Break] 2 (c) at the time of the person's death, the person's income 3 management account has a credit balance. 4 Residual amount 5 (2) For the purposes of this section, the residual amount is an amount 6 equal to the credit balance of the person's income management 7 account. 8 Lump sum payment 9 (3) The residual amount is to be paid to the legal personal 10 representative of the person as a single lump sum on a day 11 determined by the Secretary. 12 (4) The day specified in the determination must occur within the 13 12-month period beginning on the day of the person's death. 14 (5) If a lump sum is paid under subsection (3): 15 (a) the Special Account is debited by an amount equal to the 16 lump sum; and 17 (b) the person's income management account is debited by an 18 amount equal to the lump sum. 19 Tax consequences 20 (6) If a payment is made under subsection (3), the payment does not 21 have consequences under the income tax law for the person's 22 estate. 23 123WM Payment into bank account etc. of credit balances of income 24 management accounts--person dies 25 Scope 26 (1) This section applies to an amount that is to be paid to the legal 27 personal representative of a person under subsection 123WL(3). 28 Payment into bank account etc. 29 (2) The amount is to be paid to the credit of a bank account kept by the 30 legal personal representative of the person. [Page Break] 2 of the person either alone or jointly or in common with another 3 person. 4 (4) The Secretary may direct that the whole or a part of the amount be 5 paid to the legal personal representative of the person in a different 6 way from that provided for by subsection (2). 7 (5) If the Secretary gives a direction under subsection (4), the amount 8 is to be paid in accordance with the direction. 9 123WN Crediting of amounts to income management accounts-- 10 Ministerial rules 11 The Minister and the Finance Minister may, by legislative 12 instrument, make rules providing that an amount ascertained in 13 accordance with the rules is to be credited to: 14 (a) the Special Account; and 15 (b) a person's income management account; 16 in the circumstances specified in the rules. 17 Division 5--Deductions from welfare payments 18 Subdivision A--Relevant Northern Territory area 19 123XA Deductions from category B welfare payments--instalments 20 Scope 21 (1) This section applies if: 22 (a) a person is subject to the income management regime under 23 subsection 123UB(1) or (3); and 24 (b) an instalment of a category B welfare payment is payable to 25 the person. 26 Deductions from category B welfare payments--instalments 27 (2) The following provisions have effect: 28 (a) the Secretary must deduct from the instalment of the category 29 B welfare payment the deductible portion of the instalment; 30 (b) an amount equal to the deductible portion of the instalment is 31 credited to the Special Account; [Page Break] 2 credited to the person's income management account. 3 (3) For the purposes of subsection (2), the deductible portion of an 4 instalment of a category B welfare payment is 50% of the net 5 amount of the instalment (rounded down to the nearest cent). 6 123XB Deductions from category B welfare payments--lump sums 7 Scope 8 (1) This section applies if: 9 (a) a person is subject to the income management regime under 10 subsection 123UB(1) or (3); and 11 (b) a category B welfare payment is payable to the person 12 otherwise than by instalments. 13 Deductions from category B welfare payments--lump sums 14 (2) The following provisions have effect: 15 (a) the Secretary must deduct from the category B welfare 16 payment the deductible portion of the payment; 17 (b) an amount equal to the deductible portion of the payment is 18 credited to the Special Account; 19 (c) an amount equal to the deductible portion of the payment is 20 credited to the person's income management account. 21 (3) For the purposes of subsection (2), the deductible portion of a 22 category B welfare payment is 50% of the net amount of the 23 payment (rounded down to the nearest cent). 24 123XC Deductions from category C welfare payments--instalments 25 Scope 26 (1) This section applies if: 27 (a) a person is subject to the income management regime under 28 subsection 123UB(1) or (3); and 29 (b) an instalment of a category C welfare payment is payable to 30 the person. [Page Break] 2 (2) The following provisions have effect: 3 (a) the Secretary must deduct from the instalment of the category 4 C welfare payment the deductible portion of the instalment; 5 (b) an amount equal to the deductible portion of the instalment is 6 credited to the Special Account; 7 (c) an amount equal to the deductible portion of the instalment is 8 credited to the person's income management account. 9 (3) For the purposes of subsection (2), the deductible portion of an 10 instalment of a category C welfare payment is 100% of the net 11 amount of the instalment (rounded down to the nearest cent). 12 123XD Deductions from category C welfare payments--lump sums 13 Scope 14 (1) This section applies if: 15 (a) a person is subject to the income management regime under 16 subsection 123UB(1) or (3); and 17 (b) a category C welfare payment is payable to the person 18 otherwise than by instalments. 19 Deductions from category C welfare payments--lump sums 20 (2) The following provisions have effect: 21 (a) the Secretary must deduct from the category C welfare 22 payment the deductible portion of the payment; 23 (b) an amount equal to the deductible portion of the payment is 24 credited to the Special Account; 25 (c) an amount equal to the deductible portion of the payment is 26 credited to the person's income management account. 27 (3) For the purposes of subsection (2), the deductible portion of a 28 category C welfare payment is 100% of the net amount of the 29 payment (rounded down to the nearest cent). [Page Break] 2 Scope 3 (1) This section applies if: 4 (a) a person is subject to the income management regime under 5 subsection 123UB(2); and 6 (b) an instalment of a category F welfare payment is payable to 7 the person. 8 Deductions from category F welfare payments--instalments 9 (2) The following provisions have effect: 10 (a) the Secretary must deduct from the instalment of the category 11 F welfare payment the deductible portion of the instalment; 12 (b) an amount equal to the deductible portion of the instalment is 13 credited to the Special Account; 14 (c) an amount equal to the deductible portion of the instalment is 15 credited to the person's income management account. 16 (3) For the purposes of subsection (2), the deductible portion of an 17 instalment of a category F welfare payment is 50% of the net 18 amount of the instalment (rounded down to the nearest cent). 19 123XF Deductions from category F welfare payments--lump sums 20 Scope 21 (1) This section applies if: 22 (a) a person is subject to the income management regime under 23 subsection 123UB(2); and 24 (b) a category F welfare payment is payable to the person 25 otherwise than by instalments. 26 Deductions from category F welfare payments--lump sums 27 (2) The following provisions have effect: 28 (a) the Secretary must deduct from the category F welfare 29 payment the deductible portion of the payment; 30 (b) an amount equal to the deductible portion of the payment is 31 credited to the Special Account; [Page Break] 2 credited to the person's income management account. 3 (3) For the purposes of subsection (2), the deductible portion of a 4 category F welfare payment is 50% of the net amount of the 5 payment (rounded down to the nearest cent). 6 123XG Deductions from category G welfare payments--instalments 7 Scope 8 (1) This section applies if: 9 (a) a person is subject to the income management regime under 10 subsection 123UB(2); and 11 (b) an instalment of a category G welfare payment is payable to 12 the person. 13 Deductions from category G welfare payments--instalments 14 (2) The following provisions have effect: 15 (a) the Secretary must deduct from the instalment of the category 16 G welfare payment the deductible portion of the instalment; 17 (b) an amount equal to the deductible portion of the instalment is 18 credited to the Special Account; 19 (c) an amount equal to the deductible portion of the instalment is 20 credited to the person's income management account. 21 (3) For the purposes of subsection (2), the deductible portion of an 22 instalment of a category G welfare payment is 100% of the net 23 amount of the instalment (rounded down to the nearest cent). 24 123XH Deductions from category G welfare payments--lump sums 25 Scope 26 (1) This section applies if: 27 (a) a person is subject to the income management regime under 28 subsection 123UB(2); and 29 (b) a category G welfare payment is payable to the person 30 otherwise than by instalments. [Page Break] 2 (2) The following provisions have effect: 3 (a) the Secretary must deduct from the category G welfare 4 payment the deductible portion of the payment; 5 (b) an amount equal to the deductible portion of the payment is 6 credited to the Special Account; 7 (c) an amount equal to the deductible portion of the payment is 8 credited to the person's income management account. 9 (3) For the purposes of subsection (2), the deductible portion of a 10 category G welfare payment is 100% of the net amount of the 11 payment (rounded down to the nearest cent). 12 Subdivision B--Child protection 13 123XI Deductions from category I welfare payments--instalments 14 Scope 15 (1) This section applies if: 16 (a) a person is subject to the income management regime under 17 section 123UC; and 18 (b) an instalment of a category I welfare payment is payable to 19 the person. 20 Deductions from category I welfare payments--instalments 21 (2) The following provisions have effect: 22 (a) the Secretary must deduct from the instalment of the category 23 I welfare payment the deductible portion of the instalment; 24 (b) an amount equal to the deductible portion of the instalment is 25 credited to the Special Account; 26 (c) an amount equal to the deductible portion of the instalment is 27 credited to the person's income management account. 28 Deductible portion 29 (3) For the purposes of subsection (2), the deductible portion of an 30 instalment of a category I welfare payment is: 31 (a) 100%; or [Page Break] 2 made by the Minister for the purposes of this paragraph--the 3 lower percentage; 4 of the net amount of the instalment (rounded down to the nearest 5 cent). 6 (4) An instrument under paragraph (3)(b) may specify different 7 percentages in relation to different category I welfare payments. 8 123XJ Deductions from category I welfare payments--lump sums 9 Scope 10 (1) This section applies if: 11 (a) a person is subject to the income management regime under 12 section 123UC; and 13 (b) a category I welfare payment is payable to the person 14 otherwise than by instalments. 15 Deductions from category I welfare payments--lump sums 16 (2) The following provisions have effect: 17 (a) the Secretary must deduct from the category I welfare 18 payment the deductible portion of the payment; 19 (b) an amount equal to the deductible portion of the payment is 20 credited to the Special Account; 21 (c) an amount equal to the deductible portion of the payment is 22 credited to the person's income management account. 23 Deductible portion 24 (3) For the purposes of subsection (2), the deductible portion of a 25 category I welfare payment is: 26 (a) 100%; or 27 (b) if a lower percentage is specified in a legislative instrument 28 made by the Minister for the purposes of this paragraph--the 29 lower percentage; 30 of the net amount of the payment (rounded down to the nearest 31 cent). 32 (4) An instrument under paragraph (3)(b) may specify different 33 percentages in relation to different category I welfare payments. [Page Break] 2 123XK Deductions from category I welfare payments--instalments 3 Scope 4 (1) This section applies if: 5 (a) a person is subject to the income management regime under 6 section 123UD or 123UE; and 7 (b) an instalment of a category I welfare payment is payable to 8 the person. 9 Deductions from category I welfare payments--instalments 10 (2) The following provisions have effect: 11 (a) the Secretary must deduct from the instalment of the category 12 I welfare payment the deductible portion of the instalment; 13 (b) an amount equal to the deductible portion of the instalment is 14 credited to the Special Account; 15 (c) an amount equal to the deductible portion of the instalment is 16 credited to the person's income management account. 17 Deductible portion 18 (3) For the purposes of subsection (2), the deductible portion of an 19 instalment of a category I welfare payment is: 20 (a) 100%; or 21 (b) if a lower percentage is specified in a legislative instrument 22 made by the Minister for the purposes of this paragraph--the 23 lower percentage; 24 of the net amount of the instalment (rounded down to the nearest 25 cent). 26 (4) An instrument under paragraph (3)(b) may specify different 27 percentages in relation to different category I welfare payments. 28 123XL Deductions from category I welfare payments--lump sums 29 Scope 30 (1) This section applies if: [Page Break] 2 section 123UD or 123UE; and 3 (b) a category I welfare payment is payable to the person 4 otherwise than by instalments. 5 Deductions from category I welfare payments--lump sums 6 (2) The following provisions have effect: 7 (a) the Secretary must deduct from the category I welfare 8 payment the deductible portion of the payment; 9 (b) an amount equal to the deductible portion of the payment is 10 credited to the Special Account; 11 (c) an amount equal to the deductible portion of the payment is 12 credited to the person's income management account. 13 Deductible portion 14 (3) For the purposes of subsection (2), the deductible portion of a 15 category I welfare payment is: 16 (a) 100%; or 17 (b) if a lower percentage is specified in a legislative instrument 18 made by the Minister for the purposes of this paragraph--the 19 lower percentage; 20 of the net amount of the payment (rounded down to the nearest 21 cent). 22 (4) An instrument under paragraph (3)(b) may specify different 23 percentages in relation to different category I welfare payments. 24 Subdivision D--Queensland Commission 25 123XM Deductions from category Q welfare payments--instalments 26 Scope 27 (1) This section applies if: 28 (a) a person is subject to the income management regime under 29 subsection 123UF(1) or (3); and 30 (b) an instalment of a category Q welfare payment is payable to 31 the person. [Page Break] 2 (2) The following provisions have effect: 3 (a) the Secretary must deduct from the instalment of the category 4 Q welfare payment the deductible portion of the instalment; 5 (b) an amount equal to the deductible portion of the instalment is 6 credited to the Special Account; 7 (c) an amount equal to the deductible portion of the instalment is 8 credited to the person's income management account. 9 Deductible portion 10 (3) For the purposes of subsection (2), the deductible portion of an 11 instalment of a category Q welfare payment is the percentage of the 12 net amount of the instalment determined by the Secretary in 13 relation to the instalment (rounded down to the nearest cent). 14 (4) The percentage specified in the determination must not exceed 15 100%. 16 123XN Deductions from category Q welfare payments--lump sums 17 Scope 18 (1) This section applies if: 19 (a) a person is subject to the income management regime under 20 subsection 123UF(1) or (3); and 21 (b) a category Q welfare payment is payable to the person 22 otherwise than by instalments. 23 Deductions from category Q welfare payments--lump sums 24 (2) The following provisions have effect: 25 (a) the Secretary must deduct from the category Q welfare 26 payment the deductible portion of the payment; 27 (b) an amount equal to the deductible portion of the payment is 28 credited to the Special Account; 29 (c) an amount equal to the deductible portion of the payment is 30 credited to the person's income management account. [Page Break] 2 (3) For the purposes of subsection (2), the deductible portion of a 3 category Q welfare payment is the percentage of the net amount of 4 the payment determined by the Secretary in relation to the payment 5 (rounded down to the nearest cent). 6 (4) The percentage specified in the determination must not exceed 7 100%. 8 123XO Deductions from category S welfare payments--instalments 9 Scope 10 (1) This section applies if: 11 (a) a person is subject to the income management regime under 12 subsection 123UF(2); and 13 (b) an instalment of a category S welfare payment is payable to 14 the person. 15 Deductions from category S welfare payments--instalments 16 (2) The following provisions have effect: 17 (a) the Secretary must deduct from the instalment of the category 18 S welfare payment the deductible portion of the instalment; 19 (b) an amount equal to the deductible portion of the instalment is 20 credited to the Special Account; 21 (c) an amount equal to the deductible portion of the instalment is 22 credited to the person's income management account. 23 Deductible portion 24 (3) For the purposes of subsection (2), the deductible portion of an 25 instalment of a category S welfare payment is the percentage of the 26 net amount of the instalment determined by the Secretary in 27 relation to the instalment (rounded down to the nearest cent). 28 (4) The percentage specified in the determination must not exceed 29 100%. [Page Break] 2 Scope 3 (1) This section applies if: 4 (a) a person is subject to the income management regime under 5 subsection 123UF(2); and 6 (b) a category S welfare payment is payable to the person 7 otherwise than by instalments. 8 Deductions from category S welfare payments--lump sums 9 (2) The following provisions have effect: 10 (a) the Secretary must deduct from the category S welfare 11 payment the deductible portion of the payment; 12 (b) an amount equal to the deductible portion of the payment is 13 credited to the Special Account; 14 (c) an amount equal to the deductible portion of the payment is 15 credited to the person's income management account. 16 Deductible portion 17 (3) For the purposes of subsection (2), the deductible portion of a 18 category S welfare payment is the percentage of the net amount of 19 the payment determined by the Secretary in relation to the payment 20 (rounded down to the nearest cent). 21 (4) The percentage specified in the determination must not exceed 22 100%. 23 Subdivision E--Deducted amount taken to have been paid 24 123XQ Deducted amount taken to have been paid 25 Scope 26 (1) This section applies if an amount is deducted under this Division 27 from an instalment or payment that is payable to a person. 28 Deducted amount taken to have been paid 29 (2) The deducted amount is taken, for the purposes of: 30 (a) the income tax law; and [Page Break] 2 (c) the 1991 Act; and 3 (d) the Family Assistance Act; and 4 (e) the Family Assistance Administration Act; and 5 (f) the Student Assistance Act 1973; and 6 (g) the Veterans' Entitlements Act; and 7 (h) the Child Support (Assessment) Act 1989; 8 to have been paid to the person at whichever of the following times 9 is applicable: 10 (i) if the deducted amount was equal to 100% of the net amount 11 of the instalment or payment--when the instalment or 12 payment would have been paid if the deduction had not been 13 made; 14 (j) otherwise--when the instalment or payment was paid. 15 Division 6--Debits from income management accounts 16 Subdivision A--General 17 123YA Priority needs--application of income management account 18 Scope 19 (1) This section applies if: 20 (a) a person (the first person) is subject to the income 21 management regime; and 22 (b) the first person's income management account has a credit 23 balance. 24 Priority needs 25 (2) If the Secretary is aware of any unmet priority needs of: 26 (a) the first person; or 27 (b) the first person's partner (if any); or 28 (c) the first person's children (if any); or 29 (d) any other dependants of the first person; 30 the Secretary must, within a reasonable period after becoming 31 aware of those priority needs, take appropriate action under 32 Subdivision B directed towards meeting those priority needs. [Page Break] 2 (a) the Secretary is satisfied that the current or future balance of 3 the first person's income management account exceeds what 4 is reasonably required to meet the current, and reasonably 5 foreseeable, priority needs of: 6 (i) the first person; and 7 (ii) the first person's partner (if any); and 8 (iii) the first person's children (if any); and 9 (iv) any other dependants of the first person; and 10 (b) the first person requests the Secretary to take action under 11 this Division that: 12 (i) is not directed towards meeting the current, and 13 reasonably foreseeable, priority needs mentioned in 14 paragraph (a); and 15 (ii) would result in the first person's income management 16 account being debited by a particular amount; and 17 (c) the Secretary is satisfied that the debit would not result in the 18 current or future balance of the first person's income 19 management account falling below what is reasonably 20 required to meet the current, and reasonably foreseeable, 21 priority needs mentioned in paragraph (a); 22 the Secretary must not unreasonably refuse the request. 23 123YB Secretary must have regard to the best interests of children 24 Scope 25 (1) This section applies if: 26 (a) a person (the first person) is subject to the income 27 management regime; and 28 (b) the first person's income management account has a credit 29 balance; and 30 (c) the person has one or more children. 31 Secretary must have regard to the best interests of children 32 (2) In deciding whether to take action under this Division that results 33 in an amount being debited from the first person's income 34 management account, the Secretary must have regard to: 35 (a) the best interests of the first person's children; and [Page Break] 2 relevant. 3 Subdivision B--Restricted debits 4 123YC Vouchers--general 5 Scope 6 (1) This section applies if: 7 (a) a person (the first person) is subject to the income 8 management regime; and 9 (b) the first person's income management account has a credit 10 balance; and 11 (c) the first person does not have a designated nominee. 12 Vouchers 13 (2) The Secretary may, on behalf of the Commonwealth: 14 (a) give the first person a voucher that: 15 (i) has a face value of a particular amount; and 16 (ii) enables the first person to acquire goods or services; or 17 (b) with the consent of the first person, give a third person a 18 voucher that: 19 (i) has a face value of a particular amount; and 20 (ii) enables the third person to acquire goods or services; 21 so long as the face value of the voucher does not exceed the credit 22 balance of the first person's income management account. 23 (3) A voucher may be for limited goods or services. 24 Special Account to be debited 25 (4) If the first person or a third person is given a voucher under 26 subsection (2), the Special Account is debited by an amount equal 27 to the face value of the voucher. 28 First person's income management account to be debited 29 (5) If the first person or a third person is given a voucher under 30 subsection (2), the first person's income management account is 31 debited by an amount equal to the face value of the voucher. [Page Break] 2 (6) The Secretary must not give the first person or a third person a 3 voucher under subsection (2) if the Secretary is satisfied that any of 4 the relevant goods or services are excluded goods or excluded 5 services. 6 Tax consequences 7 (7) If the first person or a third person is given a voucher under 8 subsection (2), the giving of the voucher does not have any 9 consequences under the income tax law for the first person or the 10 third person, as the case may be. 11 123YD Vouchers--designated nominee 12 Scope 13 (1) This section applies if: 14 (a) a person (the first person) is subject to the income 15 management regime; and 16 (b) the first person's income management account has a credit 17 balance; and 18 (c) the first person has a designated nominee. 19 Vouchers 20 (2) The Secretary may, on behalf of the Commonwealth: 21 (a) give the designated nominee a voucher that: 22 (i) has a face value of a particular amount; and 23 (ii) enables the designated nominee to acquire goods or 24 services; or 25 (b) with the consent of the designated nominee, give a third 26 person a voucher that: 27 (i) has a face value of a particular amount; and 28 (ii) enables the third person to acquire goods or services; 29 so long as the face value of the voucher does not exceed the credit 30 balance of the first person's income management account. 31 (3) A voucher may be for limited goods or services. [Page Break] 2 (4) If the designated nominee or a third person is given a voucher 3 under subsection (2), the Special Account is debited by an amount 4 equal to the face value of the voucher. 5 First person's income management account to be debited 6 (5) If the designated nominee or a third person is given a voucher 7 under subsection (2), the first person's income management 8 account is debited by an amount equal to the face value of the 9 voucher. 10 Criteria 11 (6) The Secretary must not give the designated nominee or a third 12 person a voucher under subsection (2) if the Secretary is satisfied 13 that any of the relevant goods or services are excluded goods or 14 excluded services. 15 Tax consequences 16 (7) If the designated nominee or a third person is given a voucher 17 under subsection (2), the giving of the voucher does not have any 18 consequences under the income tax law for the designated 19 nominee, the first person or the third person. 20 123YE Stored value cards--general 21 Scope 22 (1) This section applies if: 23 (a) a person (the first person) is subject to the income 24 management regime; and 25 (b) the first person's income management account has a credit 26 balance; and 27 (c) the first person does not have a designated nominee. 28 Stored value cards 29 (2) The Secretary may, on behalf of the Commonwealth: 30 (a) give the first person a stored value card that enables the first 31 person to acquire goods or services, so long as no part of the [Page Break] 2 or 3 (b) with the consent of the first person, give a third person a 4 stored value card that enables the third person to acquire 5 goods or services, so long as no part of the monetary value 6 stored on the card may be withdrawn in cash; or 7 (c) increase the monetary value stored on a stored value card 8 held by the first person, so long as: 9 (i) no part of the monetary value stored on the card may be 10 withdrawn in cash; and 11 (ii) the stored value card enables the first person to acquire 12 goods or services; or 13 (d) with the consent of the first person, increase the monetary 14 value stored on a stored value card held by a third person, so 15 long as: 16 (i) no part of the monetary value stored on the card may be 17 withdrawn in cash; and 18 (ii) the stored value card enables the third person to acquire 19 goods or services; 20 so long as: 21 (e) if paragraph (a) or (b) applies--the monetary value stored on 22 the card does not exceed the credit balance of the first 23 person's income management account; or 24 (f) if paragraph (c) or (d) applies--the increase in monetary 25 value does not exceed the credit balance of the first person's 26 income management account. 27 (3) A stored value card may be for limited goods or services. 28 Special Account to be debited 29 (4) If, under subsection (2), the Secretary gives the first person or a 30 third person a stored value card, the Special Account is debited by 31 an amount equal to the monetary value stored on the card. 32 (5) If, under subsection (2), the Secretary increases the monetary value 33 stored on a stored value card held by the first person or a third 34 person, the Special Account is debited by an amount equal to the 35 increase in the monetary value. [Page Break] 2 (6) If, under subsection (2), the Secretary gives the first person or a 3 third person a stored value card, the first person's income 4 management account is debited by an amount equal to the 5 monetary value stored on the card. 6 (7) If, under subsection (2), the Secretary increases the monetary value 7 stored on a stored value card held by the first person or a third 8 person, the first person's income management account is debited 9 by an amount equal to the increase in the monetary value. 10 Criteria 11 (8) The Secretary must not, under subsection (2): 12 (a) give the first person or a third person a stored value card; or 13 (b) increase the monetary value stored on a stored value card; 14 if the Secretary is satisfied that the relevant goods or services are 15 excluded goods or excluded services. 16 Tax consequences 17 (9) If, under subsection (2), the Secretary gives the first person or a 18 third person a stored value card, the giving of the card does not 19 have consequences under the income tax law for the first person or 20 the third person, as the case may be. 21 (10) If, under subsection (2), the Secretary increases the monetary value 22 stored on a stored value card held by the first person or a third 23 person, the increase does not have consequences under the income 24 tax law for the first person or the third person, as the case may be. 25 123YF Stored value cards--designated nominee 26 Scope 27 (1) This section applies if: 28 (a) a person (the first person) is subject to the income 29 management regime; and 30 (b) the first person's income management account has a credit 31 balance; and 32 (c) the first person has a designated nominee. [Page Break] 2 (2) The Secretary may, on behalf of the Commonwealth: 3 (a) give the designated nominee a stored value card that enables 4 the designated nominee to acquire goods or services, so long 5 as no part of the monetary value stored on the card may be 6 withdrawn in cash; or 7 (b) with the consent of the designated nominee, give a third 8 person a stored value card that enables the third person to 9 acquire goods or services, so long as no part of the monetary 10 value stored on the card may be withdrawn in cash; or 11 (c) increase the monetary value stored on a stored value card 12 held by the designated nominee, so long as: 13 (i) no part of the monetary value stored on the card may be 14 withdrawn in cash; and 15 (ii) the stored value card enables the designated nominee to 16 acquire goods or services; or 17 (d) with the consent of the designated nominee, increase the 18 monetary value stored on a stored value card held by a third 19 person, so long as: 20 (i) no part of the monetary value stored on the card may be 21 withdrawn in cash; and 22 (ii) the stored value card enables the third person to acquire 23 goods or services; 24 so long as: 25 (e) if paragraph (a) or (b) applies--the monetary value stored on 26 the card does not exceed the credit balance of the first 27 person's income management account; or 28 (f) if paragraph (c) or (d) applies--the increase in the monetary 29 value does not exceed the credit balance of the first person's 30 income management account. 31 (3) A stored value card may be for limited goods or services. 32 Special Account to be debited 33 (4) If, under subsection (2), the Secretary gives the designated 34 nominee or a third person a stored value card, the Special Account 35 is debited by an amount equal to the monetary value stored on the 36 card. [Page Break] 2 stored on a stored value card held by the designated nominee or a 3 third person, the Special Account is debited by an amount equal to 4 the increase in the monetary value. 5 First person's income management account to be debited 6 (6) If, under subsection (2), the Secretary gives the designated 7 nominee or a third person a stored value card, the first person's 8 income management account is debited by an amount equal to the 9 monetary value stored on the card. 10 (7) If, under subsection (2), the Secretary increases the monetary value 11 stored on a stored value card held by the designated nominee or a 12 third person, the first person's income management account is 13 debited by an amount equal to the increase in the monetary value. 14 Criteria 15 (8) The Secretary must not, under subsection (2): 16 (a) give the designated nominee or a third person a stored value 17 card; or 18 (b) increase the monetary value stored on a stored value card; 19 if the Secretary is satisfied that the relevant goods or services are 20 excluded goods or excluded services. 21 Tax consequences 22 (9) If, under subsection (2), the Secretary gives the designated 23 nominee or a third person a stored value card, the giving of the 24 card does not have consequences under the income tax law for the 25 designated nominee, the first person or the third person. 26 (10) If, under subsection (2), the Secretary increases the monetary value 27 stored on a stored value card held by the designated nominee or a 28 third person, the increase does not have consequences under the 29 income tax law for the designated nominee, the first person or the 30 third person. [Page Break] 2 Scope 3 (1) This section applies if: 4 (a) a person (the first person) is subject to the income 5 management regime; and 6 (b) the first person's income management account has a credit 7 balance; and 8 (c) the first person does not have a designated nominee. 9 Expense payment 10 (2) The Secretary may, on behalf of the Commonwealth: 11 (a) make a payment in discharge, in whole or in part, of an 12 obligation of the first person to pay an amount to a third 13 person in respect of expenditure incurred by the first person 14 in relation to goods or services; or 15 (b) with the consent of the first person, make a payment in 16 discharge, in whole or in part, of an obligation of a third 17 person to pay an amount to a fourth person in respect of 18 expenditure incurred by the third person in relation to goods 19 or services; or 20 (c) make a payment in discharge, in whole or in part, of an 21 obligation of the first person to pay an amount by way of 22 rates or land tax; or 23 (d) with the consent of the first person, make a payment in 24 discharge, in whole or in part, of an obligation of a third 25 person to pay an amount by way of rates or land tax; 26 so long as the amount paid does not exceed the credit balance of 27 the first person's income management account. 28 Special Account to be debited 29 (3) If the Secretary makes a payment under subsection (2), the Special 30 Account is debited by an amount equal to the amount paid. 31 First person's income management account to be debited 32 (4) If the Secretary makes a payment under subsection (2), the first 33 person's income management account is debited by an amount 34 equal to the amount paid. [Page Break] 2 (5) The Secretary must not make a payment under paragraph (2)(a) or 3 (b) if the Secretary is satisfied that the relevant goods or services 4 are excluded goods or excluded services. 5 Tax consequences 6 (6) If the Secretary makes a payment under subsection (2), the 7 payment does not have consequences under the income tax law for 8 the first person. 9 123YH Expense payment--designated nominee 10 Scope 11 (1) This section applies if: 12 (a) a person (the first person) is subject to the income 13 management regime; and 14 (b) the first person's income management account has a credit 15 balance; and 16 (c) the first person has a designated nominee. 17 Expense payment 18 (2) The Secretary may, on behalf of the Commonwealth: 19 (a) make a payment in discharge, in whole or in part, of an 20 obligation of the designated nominee to pay an amount to a 21 third person in respect of expenditure incurred by the 22 designated nominee in relation to goods or services; or 23 (b) with the consent of the designated nominee, make a payment 24 in discharge, in whole or in part, of an obligation of a third 25 person to pay an amount to a fourth person in respect of 26 expenditure incurred by the third person in relation to goods 27 or services; or 28 (c) make a payment in discharge, in whole or in part, of an 29 obligation of the first person to pay an amount to a third 30 person in respect of expenditure incurred by the first person 31 in relation to goods or services; 32 so long as the amount paid does not exceed the credit balance of 33 the first person's income management account. [Page Break] 2 (3) If the Secretary makes a payment under subsection (2), the Special 3 Account is debited by an amount equal to the amount paid. 4 First person's income management account to be debited 5 (4) If the Secretary makes a payment under subsection (2), the first 6 person's income management account is debited by an amount 7 equal to the amount paid. 8 Criteria 9 (5) The Secretary must not make a payment under subsection (2) if the 10 Secretary is satisfied that the relevant goods or services are 11 excluded goods or excluded services. 12 Tax consequences 13 (6) If the Secretary makes a payment under subsection (2), the 14 payment does not have consequences under the income tax law for 15 the designated nominee or the first person. 16 123YI Crediting of account--general 17 Scope 18 (1) This section applies if: 19 (a) a person (the first person) is subject to the income 20 management regime; and 21 (b) the first person's income management account has a credit 22 balance; and 23 (c) the first person does not have a designated nominee. 24 Crediting of accounts 25 (2) The Secretary may, on behalf of the Commonwealth: 26 (a) pay an amount to a third person on condition that the third 27 person will: 28 (i) credit the amount to an account held by the first person 29 with the third person; and 30 (ii) not allow the first person to debit the account except for 31 the purposes of acquiring goods or services; and [Page Break] 2 Commonwealth so much of the amount paid by the 3 Secretary as has not been applied by the first person for 4 the purposes of the acquisition of goods or services; or 5 (b) with the consent of the first person, pay an amount to a third 6 person on condition that the third person will: 7 (i) credit the amount to an account held by a fourth person 8 with the third person; and 9 (ii) not allow the fourth person to debit the account except 10 for the purposes of acquiring goods or services; and 11 (iii) if required to do so under section 123ZH, repay to the 12 Commonwealth so much of the amount paid by the 13 Secretary as has not been applied by the fourth person 14 for the purposes of the acquisition of goods or services; 15 so long as the amount paid by the Secretary does not exceed the 16 credit balance of the first person's income management account. 17 (3) The goods or services referred to in paragraph (2)(a) or (b) may be 18 limited to such goods or services as are determined by the 19 Secretary. 20 Special Account to be debited 21 (4) If the Secretary pays an amount to a third person under 22 subsection (2), the Special Account is debited by an amount equal 23 to the amount paid. 24 First person's income management account to be debited 25 (5) If the Secretary pays an amount to a third person under 26 subsection (2), the first person's income management account is 27 debited by an amount equal to the amount paid. 28 Criteria 29 (6) The Secretary must not, under subsection (2), pay an amount to a 30 third person if the Secretary is satisfied that any of the relevant 31 goods or services are excluded goods or excluded services. [Page Break] 2 (7) If the Secretary pays an amount to a third person under 3 subsection (2), the payment does not have consequences under the 4 income tax law for the first person. 5 123YJ Crediting of account--designated nominee 6 Scope 7 (1) This section applies if: 8 (a) a person (the first person) is subject to the income 9 management regime; and 10 (b) the first person's income management account has a credit 11 balance; and 12 (c) the first person has a designated nominee. 13 Crediting of accounts 14 (2) The Secretary may, on behalf of the Commonwealth: 15 (a) pay an amount to a third person on condition that the third 16 person will: 17 (i) credit the amount to an account held by the designated 18 nominee with the third person; and 19 (ii) not allow the designated nominee to debit the account 20 except for the purposes of acquiring goods or services; 21 and 22 (iii) if required to do so under section 123ZH, repay to the 23 Commonwealth so much of the amount paid by the 24 Secretary as has not been applied by the designated 25 nominee for the purposes of the acquisition of goods or 26 services; or 27 (b) with the consent of the designated nominee, pay an amount to 28 a third person on condition that the third person will: 29 (i) credit the amount to an account held by a fourth person 30 with the third person; and 31 (ii) not allow the fourth person to debit the account except 32 for the purposes of acquiring goods or services; and 33 (iii) if required to do so under section 123ZH, repay to the 34 Commonwealth so much of the amount paid by the 35 Secretary as has not been applied by the fourth person [Page Break] 2 or 3 (c) pay an amount to a third person on condition that the third 4 person will: 5 (i) credit the amount to an account held by the first person 6 with the third person; and 7 (ii) not allow the first person to debit the account except for 8 the purposes of acquiring goods or services; and 9 (iii) if required to do so under section 123ZH, repay to the 10 Commonwealth so much of the amount paid by the 11 Secretary as has not been applied by the first person for 12 the purposes of the acquisition of goods or services; 13 so long as the amount paid by the Secretary does not exceed the 14 credit balance of the first person's income management account. 15 (3) The goods or services referred to in paragraph (2)(a), (b) or (c) may 16 be limited to such goods or services as are determined by the 17 Secretary. 18 Special Account to be debited 19 (4) If the Secretary pays an amount to a third person under 20 subsection (2), the Special Account is debited by an amount equal 21 to the amount paid. 22 First person's income management account to be debited 23 (5) If the Secretary pays an amount to a third person under 24 subsection (2), the first person's income management account is 25 debited by an amount equal to the amount paid. 26 Criteria 27 (6) The Secretary must not, under subsection (2), pay an amount to a 28 third person if the Secretary is satisfied that any of the relevant 29 goods or services are excluded goods or excluded services. 30 Tax consequences 31 (7) If the Secretary pays an amount to a third person under 32 subsection (2), the payment does not have consequences under the 33 income tax law for the designated nominee or the first person. [Page Break] 2 Scope 3 (1) This section applies if: 4 (a) a person (the first person) is subject to the income 5 management regime; and 6 (b) the first person's income management account has a credit 7 balance; and 8 (c) the first person does not have a designated nominee. 9 Transfers 10 (2) The Secretary may, on behalf of the Commonwealth: 11 (a) pay an amount to the credit of an account held by the first 12 person with: 13 (i) a bank; or 14 (ii) a person specified in a legislative instrument made by 15 the Secretary for the purposes of this subparagraph; 16 so long as money standing to the credit of the account cannot 17 be debited except for the purposes of: 18 (iii) acquiring goods or services; or 19 (iv) paying account-related fees or charges; or 20 (b) with the consent of the first person, pay an amount to the 21 credit of an account held by a third person with: 22 (i) a bank; or 23 (ii) a person specified in a legislative instrument made by 24 the Secretary for the purposes of this subparagraph; 25 so long as money standing to the credit of the account cannot 26 be debited except for the purposes of: 27 (iii) acquiring goods or services; or 28 (iv) paying account-related fees or charges; 29 so long as the amount paid by the Secretary does not exceed the 30 credit balance of the first person's income management account. 31 (3) The goods or services referred to in paragraph (2)(a) or (b) may be 32 limited to such goods or services as are determined by the 33 Secretary. [Page Break] 2 (4) If, under subsection (2), the Secretary pays an amount to the credit 3 of an account, the Special Account is debited by an amount equal 4 to the amount paid. 5 First person's income management account to be debited 6 (5) If, under subsection (2), the Secretary pays an amount to the credit 7 of an account, the first person's income management account is 8 debited by an amount equal to the amount paid. 9 Criteria 10 (6) The Secretary must not, under subsection (2), pay an amount to the 11 credit of an account if the Secretary is satisfied that any of relevant 12 goods or services are excluded goods or excluded services. 13 Tax consequences 14 (7) If, under subsection (2), the Secretary pays an amount to the credit 15 of an account, the payment does not have any consequences under 16 the income tax law for the first person. 17 123YL Transfers to accounts--designated nominee 18 Scope 19 (1) This section applies if: 20 (a) a person (the first person) is subject to the income 21 management regime; and 22 (b) the first person's income management account has a credit 23 balance; and 24 (c) the first person has a designated nominee. 25 Transfers 26 (2) The Secretary may, on behalf of the Commonwealth: 27 (a) pay an amount to the credit of an account held by the 28 designated nominee with: 29 (i) a bank; or 30 (ii) a person specified in a legislative instrument made by 31 the Secretary for the purposes of this subparagraph; [Page Break] 2 be debited except for the purposes of: 3 (iii) acquiring goods or services; or 4 (iv) paying account-related fees or charges; or 5 (b) with the consent of the designated nominee, pay an amount to 6 the credit of an account held by a third person with: 7 (i) a bank; or 8 (ii) a person specified in a legislative instrument made by 9 the Minister for the purposes of this subparagraph; 10 so long as money standing to the credit of the account cannot 11 be debited except for the purposes of: 12 (iii) acquiring goods or services; or 13 (iv) paying account-related fees or charges; 14 so long as the amount paid by the Secretary does not exceed the 15 credit balance of the first person's income management account. 16 (3) The goods or services referred to in paragraph (2)(a) or (b) may be 17 limited to such goods or services as are determined by the 18 Secretary. 19 Special Account to be debited 20 (4) If, under subsection (2), the Secretary pays an amount to the credit 21 of an account, the Special Account is debited by an amount equal 22 to the amount paid. 23 First person's income management account to be debited 24 (5) If, under subsection (2), the Secretary pays an amount to the credit 25 of an account, the first person's income management account is 26 debited by an amount equal to the amount paid. 27 Criteria 28 (6) The Secretary must not, under subsection (2), pay an amount to the 29 credit of an account if the Secretary is satisfied that any of the 30 relevant goods or services are excluded goods or excluded services. [Page Break] 2 (7) If, under subsection (2), the Secretary pays an amount to the credit 3 of an account, the payment does not have consequences under the 4 income tax law for the designated nominee or the first person. 5 123YM Restricted direct payment--general 6 Scope 7 (1) This section applies if: 8 (a) a person (the first person) is subject to the income 9 management regime; and 10 (b) the first person's income management account has a credit 11 balance; and 12 (c) the first person does not have a designated nominee. 13 Direct payment 14 (2) The Secretary may, on behalf of the Commonwealth: 15 (a) pay an amount to the credit of a bank account held by the 16 first person (whether alone or jointly or in common with 17 another person); or 18 (b) with the consent of the first person, pay an amount to the 19 credit of a bank account held by a third person (whether 20 alone or jointly or in common with another person); or 21 (c) if: 22 (i) the first person is subject to the income management 23 regime under section 123UF; and 24 (ii) under a law of Queensland, the Queensland 25 Commission gave the Secretary a written notice stating 26 that a specified bank account held by a third person is a 27 nominated third party account in relation to the first 28 person; and 29 (iii) the notice has not been withdrawn or revoked; 30 pay the amount to the credit of that bank account; or 31 (d) pay an amount to the first person by way of a cheque; or 32 (e) with the consent of the first person, pay an amount to a third 33 person by way of a cheque; or 34 (f) pay an amount to the first person by way of cash; or [Page Break] 2 person by way of cash; or 3 (h) give the first person a stored value card that enables the first 4 person to withdraw cash; or 5 (i) with the consent of the first person, give a third person a 6 stored value card that enables the third person to withdraw 7 cash; 8 so long as: 9 (j) if paragraph (a), (b), (c), (d), (e), (f) or (g) applies--the 10 amount paid does not exceed the credit balance of the first 11 person's income management account; or 12 (k) if paragraph (h) or (i) applies--the monetary value stored on 13 the card does not exceed the credit balance of the first 14 person's income management account. 15 Special Account to be debited 16 (3) If the Secretary pays an amount under paragraph (2)(a), (b), (c), 17 (d), (e), (f) or (g), the Special Account is debited by an amount 18 equal to the amount paid. 19 (4) If, under paragraph (2)(h) or (i), the Secretary gives the first person 20 or a third person a stored value card, the Special Account is debited 21 by an amount equal to the monetary value stored on the card. 22 First person's income management account to be debited 23 (5) If the Secretary pays an amount under paragraph (2)(a), (b), (c), 24 (d), (e), (f) or (g), the first person's income management account is 25 debited by an amount equal to the amount paid. 26 (6) If, under paragraph (2)(h) or (i), the Secretary gives the first person 27 or a third person a stored value card, the first person's income 28 management account is debited by an amount equal to the 29 monetary value stored on the card. 30 Criteria 31 (7) The Secretary must not pay an amount under paragraph (2)(a), (b), 32 (c), (d), (e), (f) or (g) if the Secretary has reasonable grounds to 33 believe that the whole or a part of the amount paid will be used to 34 acquire excluded goods or excluded services. [Page Break] 2 stored value card under paragraph (2)(h) or (i) if the Secretary has 3 reasonable grounds to believe that the whole or a part of the 4 monetary value stored on the card will be used to acquire excluded 5 goods or excluded services. 6 Tax consequences 7 (9) If the Secretary makes a payment under paragraph (2)(a), (d) or (f) 8 the payment does not have consequences under the income tax law 9 for the first person. 10 (10) If the Secretary makes a payment under paragraph (2)(b), (c), (e) or 11 (g), the payment does not have consequences under the income tax 12 law for the first person or the third person. 13 (11) If, under paragraph (2)(h) or (i), the Secretary gives the first person 14 or a third person a stored value card, the giving of the card does not 15 have consequences under the income tax law for the first person or 16 the third person, as the case may be. 17 123YN Restricted direct payment--designated nominee 18 Scope 19 (1) This section applies if: 20 (a) a person (the first person) is subject to the income 21 management regime; and 22 (b) the first person's income management account has a credit 23 balance; and 24 (c) the first person has a designated nominee. 25 Direct payment 26 (2) The Secretary may, on behalf of the Commonwealth: 27 (a) pay an amount to the credit of a bank account held by the 28 designated nominee (whether alone or jointly or in common 29 with another person); or 30 (b) with the consent of the designated nominee, pay an amount to 31 the credit of a bank account held by a third person (whether 32 alone or jointly or in common with another person); or 33 (c) if: [Page Break] 2 regime under section 123UF; and 3 (ii) under a law of Queensland, the Queensland 4 Commission gave the Secretary a written notice stating 5 that a specified bank account held by a third person is a 6 nominated third party account in relation to the first 7 person; and 8 (iii) the notice has not been withdrawn or revoked; 9 pay the amount to the credit of that bank account; or 10 (d) pay an amount to the designated nominee by way of a 11 cheque; or 12 (e) with the consent of the designated nominee, pay an amount to 13 a third person by way of a cheque; or 14 (f) pay an amount to the designated nominee by way of cash; or 15 (g) with the consent of the designated nominee, pay an amount to 16 a third person by way of cash; or 17 (h) give the designated nominee a stored value card that enables 18 the designated nominee to withdraw cash; or 19 (i) with the consent of the designated nominee, give a third 20 person a stored value card that enables the third person to 21 withdraw cash; 22 so long as: 23 (j) if paragraph (a), (b), (c), (d), (e), (f) or (g) applies--the 24 amount paid does not exceed the credit balance of the first 25 person's income management account; or 26 (k) if paragraph (h) or (i) applies--the monetary value stored on 27 the card does not exceed the credit balance of the first 28 person's income management account. 29 Special Account to be debited 30 (3) If the Secretary pays an amount under paragraph (2)(a), (b), (c), 31 (d), (e), (f) or (g), the Special Account is debited by an amount 32 equal to the amount paid. 33 (4) If, under paragraph (2)(h) or (i), the Secretary gives the designated 34 nominee or a third person a stored value card, the Special Account 35 is debited by an amount equal to the monetary value stored on the 36 card. [Page Break] 2 (5) If the Secretary pays an amount under paragraph (2)(a), (b), (c), 3 (d), (e), (f) or (g), the first person's income management account is 4 debited by an amount equal to the amount paid. 5 (6) If, under paragraph (2)(h) or (i), the Secretary gives the designated 6 nominee or a third person a stored value card, the first person's 7 income management account is debited by an amount equal to the 8 monetary value stored on the card. 9 Criteria 10 (7) The Secretary must not pay an amount under paragraph (2)(a), (b), 11 (c), (d), (e), (f) or (g) if the Secretary has reasonable grounds to 12 believe that the whole or a part of the amount paid will be used to 13 acquire excluded goods or excluded services. 14 (8) The Secretary must not give the designated nominee a stored value 15 card under paragraph (2)(h) or (i) if the Secretary has reasonable 16 grounds to believe that the whole or a part of the monetary value 17 stored on the card will be used to acquire excluded goods or 18 excluded services. 19 Tax consequences 20 (9) If the Secretary makes a payment under paragraph (2)(a), (d) or (f), 21 the payment does not have consequences under the income tax law 22 for the designated nominee or the first person. 23 (10) If the Secretary makes a payment under paragraph (2) (b), (c), (e) 24 or (g), the payment does not have consequences under the income 25 tax law for the designated nominee, the first person or the third 26 person. 27 (11) If, under paragraph (2)(h) or (i), the Secretary gives the designated 28 nominee or a third person a stored value card, the giving of the 29 card does not have consequences under the income tax law for the 30 designated nominee, the first person or the third person. [Page Break] 2 123YO Unrestricted direct payment--general 3 Scope 4 (1) This section applies if: 5 (a) a person (the first person) is subject to the income 6 management regime; and 7 (b) the first person's income management account has a credit 8 balance; and 9 (c) the first person does not have a designated nominee. 10 Direct payment 11 (2) The Secretary may, on behalf of the Commonwealth: 12 (a) pay an amount to the credit of a bank account held by the 13 first person (whether alone or jointly or in common with 14 another person); or 15 (b) with the consent of the first person, pay an amount to the 16 credit of a bank account held by a third person (whether 17 alone or jointly or in common with another person); or 18 (c) pay an amount to the first person by way of a cheque; or 19 (d) with the consent of the first person, pay an amount to a third 20 person by way of a cheque; or 21 (e) pay an amount to the first person by way of cash; or 22 (f) with the consent of the first person, pay an amount to a third 23 person by way of cash; or 24 (g) give the first person a stored value card that enables the first 25 person to withdraw cash; or 26 (h) with the consent of the first person, give a third person a 27 stored value card that enables the third person to withdraw 28 cash; 29 so long as: 30 (i) if paragraph (a), (b), (c), (d), (e) or (f) applies--the amount 31 paid does not exceed the credit balance of the first person's 32 income management account; or 33 (j) if paragraph (g) or (h) applies--the monetary value stored on 34 the card does not exceed the credit balance of the first 35 person's income management account. [Page Break] 2 Secretary must have regard to: 3 (a) such matters (if any) as are specified in a legislative 4 instrument made by the Minister for the purposes of this 5 paragraph; and 6 (b) such other matters (if any) as the Secretary considers 7 relevant. 8 Special Account to be debited 9 (4) If the Secretary pays an amount under paragraph (2)(a), (b), (c), 10 (d), (e) or (f), the Special Account is debited by an amount equal to 11 the amount paid. 12 (5) If, under paragraph (2)(g) or (h), the Secretary gives the first 13 person or a third person a stored value card, the Special Account is 14 debited by an amount equal to the monetary value stored on the 15 card. 16 First person's income management account to be debited 17 (6) If the Secretary pays an amount under paragraph (2)(a), (b), (c), 18 (d), (e) or (f), the first person's income management account is 19 debited by an amount equal to the amount paid. 20 (7) If, under paragraph (2)(g) or (h), the Secretary gives the first 21 person or a third person a stored value card, the first person's 22 income management account is debited by an amount equal to the 23 monetary value stored on the card. 24 Tax consequences 25 (8) If the Secretary makes a payment under paragraph (2)(a), (c) or (e), 26 the payment does not have consequences under the income tax law 27 for the first person. 28 (9) If the Secretary makes a payment under paragraph (2)(b), (d) or (f), 29 the payment does not have consequences under the income tax law 30 for the first person or the third person. 31 (10) If, under paragraph (2)(g) or (h), the Secretary gives the first 32 person or a third person a stored value card, the giving of the card 33 does not have consequences under the income tax law for the first 34 person or the third person, as the case may be. [Page Break] 2 Scope 3 (1) This section applies if: 4 (a) a person (the first person) is subject to the income 5 management regime; and 6 (b) the first person's income management account has a credit 7 balance; and 8 (c) the first person has a designated nominee. 9 Direct payment 10 (2) The Secretary may, on behalf of the Commonwealth: 11 (a) pay an amount to the credit of a bank account held by the 12 designated nominee (whether alone or jointly or in common 13 with another person); or 14 (b) with the consent of the designated nominee, pay an amount to 15 the credit of a bank account held by a third person (whether 16 alone or jointly or in common with another person); or 17 (c) pay an amount to the designated nominee by way of a 18 cheque; or 19 (d) with the consent of the designated nominee, pay an amount to 20 a third person by way of a cheque; or 21 (e) pay an amount to the designated nominee by way of cash; or 22 (f) with the consent of the designated nominee, pay an amount to 23 a third person by way of cash; or 24 (g) give the designated nominee a stored value card that enables 25 the designated nominee to withdraw cash; or 26 (h) with the consent of the designated nominee, give a third 27 person a stored value card that enables the third person to 28 withdraw cash; 29 so long as: 30 (i) if paragraph (a), (b), (c), (d), (e) or (f) applies--the amount 31 paid does not exceed the credit balance of the first person's 32 income management account; or 33 (j) if paragraph (g) or (h) applies--the monetary value stored on 34 the card does not exceed the credit balance of the first 35 person's income management account. [Page Break] 2 Secretary must have regard to: 3 (a) such matters (if any) as are specified in a legislative 4 instrument made by the Minister for the purposes of this 5 paragraph; and 6 (b) such other matters (if any) as the Secretary considers 7 relevant. 8 Special Account to be debited 9 (4) If the Secretary pays an amount under paragraph (2)(a), (b), (c), 10 (d), (e) or (f), the Special Account is debited by an amount equal to 11 the amount paid. 12 (5) If, under paragraph (2)(g) or (h), the Secretary gives the designated 13 nominee or a third person a stored value card, the Special Account 14 is debited by an amount equal to the monetary value stored on the 15 card. 16 First person's income management account to be debited 17 (6) If the Secretary pays an amount under paragraph (2)(a), (b), (c), 18 (d), (e) or (f), the first person's income management account is 19 debited by an amount equal to the amount paid. 20 (7) If, under paragraph (2)(g) or (h), the Secretary gives the designated 21 nominee or a third person a stored value card, the first person's 22 income management account is debited by an amount equal to the 23 monetary value stored on the card. 24 Tax consequences 25 (8) If the Secretary makes a payment under paragraph (2)(a), (c) or (e), 26 the payment does not have consequences under the income tax law 27 for the designated nominee or the first person. 28 (9) If the Secretary makes a payment under paragraph (2)(b), (d) or (f), 29 the payment does not have consequences under the income tax law 30 for the designated nominee, the first person or the third person. 31 (10) If, under paragraph (2)(g) or (h), the Secretary gives the designated 32 nominee or a third person a stored value card, the giving of the 33 card does not have consequences under the income tax law for the 34 designated nominee, the first person or the third person. [Page Break] 2 123YQ Miscellaneous action 3 Scope 4 (1) This section applies if: 5 (a) a person (the first person) is subject to the income 6 management regime; and 7 (b) the first person's income management account has a credit 8 balance. 9 Miscellaneous action 10 (2) The Secretary may, on behalf of the Commonwealth, take an action 11 specified in a legislative instrument made by the Minister for the 12 purposes of this subsection, so long as the non-administrative 13 expenses paid by the Commonwealth in relation to the taking of 14 the action do not exceed the credit balance of the first person's 15 income management account. 16 Special Account to be debited 17 (3) If the Secretary takes action under subsection (2), the Special 18 Account is debited by an amount equal to the non-administrative 19 expenses paid by the Commonwealth in relation to the taking of 20 the action. 21 First person's income management account to be debited 22 (4) If the Secretary takes action under subsection (2), the first person's 23 income management account is debited by an amount equal to the 24 non-administrative expenses paid by the Commonwealth in 25 relation to the taking of the action. 26 Criteria 27 (5) The Secretary must not take action under subsection (2) unless the 28 Secretary is satisfied that the action: 29 (a) will benefit any or all of the following: 30 (i) the first person; 31 (ii) the first person's partner (if any); [Page Break] 2 (iv) any other dependants of the first person; and 3 (b) will not result in the acquisition of any excluded goods or 4 excluded services. 5 Tax consequences 6 (6) If the Secretary takes action under subsection (2), the taking of the 7 action does not have consequences under the income tax law for: 8 (a) the first person; or 9 (b) any other person for whose benefit the action was taken. 10 Division 7--Information 11 123ZA Information-gathering powers--Northern Territory 12 In determining the scope of the power conferred on the Secretary 13 by section 192 or 195 to require the giving of information, or the 14 production of a document, it is to be assumed that each reference in 15 this Part to a declared relevant Northern Territory area included a 16 reference to a proposed declared relevant Northern Territory area. 17 123ZB Information-gathering powers--school enrolment and 18 attendance 19 In determining the scope of the power conferred on the Secretary 20 by section 192 or 195 to require the giving of information, or the 21 production of a document, it is to be assumed that: 22 (a) each reference in this Part to a declared primary school area 23 were a reference to a State or Territory; and 24 (b) each reference in this Part to a declared secondary school 25 area were a reference to a State or Territory. 26 123ZC Child protection--notice of cancellation of category H 27 welfare payments 28 Scope 29 (1) This section applies if: 30 (a) a person ceases to be subject to the income management 31 regime under section 123UC because of the cancellation of a [Page Break] 2 partner; and 3 (b) immediately before the cancellation, the relevant notice 4 referred to in paragraph 123UC(b) had not been withdrawn or 5 revoked. 6 Notice 7 (2) As soon as practicable after the cancellation, the Secretary must 8 give a child protection officer of the State or Territory written 9 notice of the cancellation. 10 123ZD Queensland Commission--notice of cancellation of welfare 11 payments 12 Scope 13 (1) This section applies if: 14 (a) a person ceases to be subject to the income management 15 regime under section 123UF because of the cancellation of: 16 (i) a category P welfare payment of the person or the 17 person's partner; or 18 (ii) a category R welfare payment of the person or the 19 person's partner; and 20 (b) immediately before the cancellation, the relevant notice 21 referred to in paragraph 123UF(1)(b) or (2)(c) had not been 22 withdrawn or revoked. 23 Notice 24 (2) As soon as practicable after the cancellation, the Secretary must 25 give the Queensland Commission written notice of the 26 cancellation. 27 123ZE Disclosure of information to the Secretary--child protection 28 (1) Despite any law (whether written or unwritten) in force in a State 29 or Territory, a child protection officer of a State or Territory may 30 give the Secretary information about a person if: 31 (a) either: 32 (i) the person is subject to the income management regime 33 under section 123UC; or [Page Break] 2 give a notice of the kind referred to in paragraph 3 123UC(b) in relation to the person; and 4 (b) the disclosed information is relevant to the operation of this 5 Part. 6 (2) If information about a person is disclosed by a child protection 7 officer of a State or Territory as mentioned in subsection (1), the 8 Secretary may disclose information about the person to a child 9 protection officer of the State or Territory for the purposes of the 10 performance of the functions and duties, or the exercise of the 11 powers, of the child protection officer in relation to the care, 12 protection or welfare of children. 13 123ZEA Disclosure of information to the Secretary--Queensland 14 Commission 15 (1) Despite any law (whether written or unwritten) in force in 16 Queensland, the Queensland Commission may give the Secretary 17 information about a person if: 18 (a) either: 19 (i) the person is subject to the income management regime 20 under section 123UF; or 21 (ii) the Queensland Commission is considering whether to 22 give a notice of the kind referred to in paragraph 23 123UF(1)(b) or (2)(c) in relation to the person; and 24 (b) the disclosed information is relevant to the operation of this 25 Part. 26 (2) If information about a person is disclosed by the Queensland 27 Commission as mentioned in subsection (1), the Secretary may 28 disclose information about the person to the Queensland 29 Commission for the purposes of the performance of the functions, 30 or the exercise of the powers, of the Queensland Commission. 31 123ZEB Disclosure of information to the Secretary--school 32 enrolment and attendance 33 (1) Despite any law (whether written or unwritten) in force in a State 34 or Territory: 35 (a) a State or Territory; or [Page Break] 2 (c) any other person who is responsible for the operation of one 3 or more schools; 4 may give the Secretary information about the enrolment, or 5 non-enrolment, of children at school. 6 (2) Despite any law (whether written or unwritten) in force in a State 7 or Territory: 8 (a) a State or Territory; or 9 (b) a non-government school authority; or 10 (c) any other person who is responsible for the operation of one 11 or more schools; 12 may give the Secretary information about the attendance, or 13 non-attendance, of children at school. 14 Division 8--Debt recovery etc. 15 123ZF Person other than payee obtaining payment of a cheque 16 Scope 17 (1) This section applies if: 18 (a) a person (the first person) is subject to the income 19 management regime; and 20 (b) an amount is paid by cheque under section 123YM, 123YN, 21 123YO or 123YP; and 22 (c) the payment resulted in the first person's income 23 management account being debited by an amount equal to the 24 amount paid; and 25 (d) a person (the second person) other than the payee of the 26 cheque obtains possession of the cheque from the payee; and 27 (e) the cheque is not endorsed by the payee to the second person; 28 and 29 (f) the second person obtains value for the cheque. 30 Recovery 31 (2) The amount of the cheque is a debt due by the second person to the 32 Commonwealth. [Page Break] 2 (3) If an amount is received by the Commonwealth under 3 subsection (2), an amount equal to the amount received is credited 4 to the Special Account. 5 First person's income management account to be credited 6 (4) If an amount is received by the Commonwealth under 7 subsection (2), the first person's income management account is 8 credited by an amount equal to the amount received. 9 123ZG Misuse of vouchers and stored value cards 10 Scope 11 (1) This section applies if: 12 (a) a person (the first person) is subject to the income 13 management regime; and 14 (b) either: 15 (i) the Secretary has given the first person or another 16 person a voucher under subsection 123YC(2) or 17 123YD(2); or 18 (ii) the Secretary has given the first person or another 19 person a stored value card under subsection 123YE(2), 20 123YF(2), 123YM(2), 123YN(2), 123YO(2) or 21 123YP(2); and 22 (c) the Secretary's action resulted in the first person's income 23 management account being debited; and 24 (d) a person (the unauthorised person) other than the person to 25 whom the voucher or stored value card was given: 26 (i) obtains possession of the voucher or stored value card 27 from the person to whom the voucher or stored value 28 card was given; and 29 (ii) uses the voucher or stored value card to acquire goods 30 or services or to obtain cash; and 31 (e) the unauthorised person does so without the consent of the 32 person to whom the voucher or stored value card was given. [Page Break] 2 (2) In the case of the use of a voucher, an amount equal to the face 3 value of the voucher is a debt due by the unauthorised person to the 4 Commonwealth. 5 (3) In the case of the use of a stored value card, an amount equal to the 6 monetary value involved in the use is a debt due by the 7 unauthorised person to the Commonwealth. 8 Special Account to be credited 9 (4) If an amount is received by the Commonwealth under 10 subsection (2) or (3), an amount equal to the amount received is 11 credited to the Special Account. 12 First person's income management account to be credited 13 (5) If an amount is received by the Commonwealth under 14 subsection (2) or (3), the first person's income management 15 account is credited by an amount equal to the amount received. 16 123ZH Repayment of money credited to an account 17 Scope 18 (1) This section applies if: 19 (a) a person (the first person) is subject to the income 20 management regime; and 21 (b) under section 123YI or 123YJ, the Secretary has paid an 22 amount to a third person; and 23 (c) the payment resulted in the first person's income 24 management account being debited by an amount equal to the 25 amount paid. 26 Repayment 27 (2) The Secretary may, by written notice given to the third person, 28 require the third person to repay to the Commonwealth so much of 29 the amount paid as has not been applied by the relevant account 30 holder for the purposes of the acquisition of goods or services. [Page Break] 2 (3) If an amount is received by the Commonwealth in compliance with 3 a notice under subsection (2), an amount equal to the amount 4 received is credited to the Special Account. 5 First person's income management account to be credited 6 (4) If an amount is received by the Commonwealth in compliance with 7 a notice under subsection (2), the first person's income 8 management account is credited by an amount equal to the amount 9 received. 10 123ZI Breach of condition relating to crediting of account 11 Scope 12 (1) This section applies if: 13 (a) a person (the first person) is subject to the income 14 management regime; and 15 (b) under section 123YI or 123YJ, the Secretary has paid an 16 amount to a third person; and 17 (c) the payment resulted in the first person's income 18 management account being debited by an amount equal to the 19 amount paid; and 20 (d) the third person has breached a condition of the payment. 21 Recovery 22 (2) So much of the amount paid as has not been applied by the relevant 23 account holder for the purposes of the acquisition of goods or 24 services is a debt due by the third person to the Commonwealth. 25 Special Account to be credited 26 (3) If an amount is received by the Commonwealth under 27 subsection (2), an amount equal to the amount received is credited 28 to the Special Account. [Page Break] 2 (4) If an amount is received by the Commonwealth under 3 subsection (2), the first person's income management account is 4 credited by an amount equal to the amount received. 5 123ZJ Value of action taken under Division 6 exceeds credit balance 6 of income management account 7 Scope 8 (1) This section applies if: 9 (a) a person (the first person) is subject to the income 10 management regime; and 11 (b) the Secretary purports to take action under Division 6; and 12 (c) apart from this section, the action is invalid because of a 13 breach of whichever of the following requirements is 14 applicable under Division 6: 15 (i) in the case of giving a voucher--the requirement that 16 the face value of the voucher must not exceed the credit 17 balance of the first person's income management 18 account; 19 (ii) in the case of giving a stored value card--the 20 requirement that the monetary value stored on the card 21 must not exceed the credit balance of the first person's 22 income management account; 23 (iii) in the case of increasing the monetary value stored on a 24 stored value card--the requirement that the increase in 25 the monetary value must not exceed the credit balance 26 of the first person's income management account; 27 (iv) in the case of paying an amount--the requirement that 28 the amount paid must not exceed the credit balance of 29 the first person's income management account; 30 (v) in the case of taking an action under subsection 31 123YQ(2)--the requirement that the non-administrative 32 expenses paid by the Commonwealth in relation to the 33 taking of the action must not exceed the credit balance 34 of the first person's income management account; and 35 (d) the breach was the result of an administrative error or 36 oversight. [Page Break] 2 (2) Both: 3 (a) the action taken by the Secretary; and 4 (b) the resulting debit from the first person's income 5 management account; 6 are as valid as they would have been if: 7 (c) the requirement mentioned in paragraph (1)(c) were not 8 applicable to the action; and 9 (d) this Part had allowed the first person's income management 10 account to have a debit balance. 11 Relevant excess 12 (3) For the purposes of this section, the relevant excess is: 13 (a) in the case of giving a voucher--the amount by which the 14 face value of the voucher exceeds the credit balance of the 15 first person's income management account; or 16 (b) in the case of giving a stored value card--the amount by 17 which the monetary value stored on the card exceeds the 18 credit balance of the first person's income management 19 account; or 20 (c) in the case of increasing the monetary value stored on a 21 stored value card--the amount by which the increase in the 22 monetary value exceeds the credit balance of the first 23 person's income management account; or 24 (d) in the case of paying an amount--the amount by which the 25 amount paid exceeds the credit balance of the first person's 26 income management account; or 27 (e) in the case of taking an action under subsection 123YQ(2)-- 28 the amount by which the non-administrative expenses paid 29 by the Commonwealth in relation to the taking of the action 30 exceeds the credit balance of the first person's income 31 management account. 32 Special Account to be credited 33 (4) An amount equal to the relevant excess is credited to the Special 34 Account. [Page Break] 2 (5) An amount equal to the relevant excess is a debt due by the first 3 person to the Commonwealth. 4 (6) If an amount is received by the Commonwealth under 5 subsection (5): 6 (a) an amount equal to the amount received is credited to the 7 Special Account; and 8 (b) an amount equal to the amount received is debited from the 9 Special Account. 10 (7) If an amount is received by the Commonwealth under 11 subsection (5), the first person's income management account is 12 credited by an amount equal to the amount received. 13 Division 9--Miscellaneous 14 123ZK Secretary must comply with certain directions given by the 15 Queensland Commission 16 Deductible portion 17 (1) If: 18 (a) a person is subject to the income management regime under 19 section 123UF; and 20 (b) under a law of Queensland, the Queensland Commission 21 gives the Secretary a written direction about the exercise of a 22 power of the Secretary under subsection 123XM(3), 23 123XN(3), 123XO(3) or 123XP(3) in relation to the person; 24 the Secretary must comply with the direction. 25 Debits from income management accounts 26 (2) If: 27 (a) a person is subject to the income management regime under 28 section 123UF; and 29 (b) under a law of Queensland, the Queensland Commission 30 gives the Secretary a written direction about the exercise of a 31 power of the Secretary under Division 6 that results in a debit 32 from the person's income management account; 33 the Secretary must comply with the direction. [Page Break] 2 Scope 3 (1) This section applies if: 4 (a) a person (the first person) is subject to the income 5 management regime; and 6 (b) either: 7 (i) the Secretary has given the first person or another 8 person a voucher under subsection 123YC(2) or 9 123YD(2); or 10 (ii) the Secretary has given the first person or another 11 person a stored value card under subsection 123YE(2), 12 123YF(2), 123YM(2), 123YN(2), 123YO(2) or 13 123YP(2); and 14 (c) as a result of the taking of the action referred to in 15 paragraph (b), the first person's income management account 16 has been debited by a particular amount (the debited 17 amount); and 18 (d) the voucher or stored value card has not been used. 19 Surrender of voucher or stored value card 20 (2) The voucher or stored value card may be surrendered to the 21 Secretary. 22 Special Account to be credited 23 (3) If, under subsection (2), the voucher or stored value card is 24 surrendered to the Secretary, an amount equal to the debited 25 amount is credited to the Special Account. 26 First person's income management account to be credited 27 (4) If, under subsection (2), the voucher or stored value card is 28 surrendered to the Secretary, an amount equal to the debited 29 amount is credited to the first person's income management 30 account. [Page Break] 2 (1) The Secretary may, on behalf of the Commonwealth, purchase 3 vouchers to be given under subsection 123YC(2) or 123YD(2). 4 (2) The Secretary may, on behalf of the Commonwealth: 5 (a) issue vouchers to be given under subsection 123YC(2) or 6 123YD(2); and 7 (b) enter into agreements with the suppliers of goods or services 8 under which the suppliers undertake to accept those vouchers 9 in consideration for the supply of goods or services. 10 (3) Subsections (1) and (2) do not limit the executive power of the 11 Commonwealth. 12 (4) To the extent to which: 13 (a) the issue of vouchers under paragraph (2)(a); or 14 (b) an agreement entered into under paragraph (2)(b); 15 involves a borrowing of money by the Commonwealth, that 16 borrowing is authorised by this subsection. 17 Note: Section 37 of the Financial Management and Accountability Act 1997 18 provides that an agreement for the borrowing of money by the 19 Commonwealth is of no effect unless the borrowing is authorised by 20 an Act. 21 123ZN Appropriation 22 (1) The Consolidated Revenue Fund is appropriated to the extent 23 necessary for the purposes of: 24 (a) making payments under subsection 123WJ(4), (7) or (11) or 25 123WL(3); and 26 (b) enabling the Secretary to set off an amount under subsection 27 123WJ(14); and 28 (c) making a purchase mentioned in subsection 123ZM(1); and 29 (d) making a payment of an amount payable by the 30 Commonwealth under an agreement mentioned in paragraph 31 123ZM(2)(b); and 32 (e) enabling the Secretary to give a stored value card under 33 subsection 123YE(2), 123YF(2), 123YM(2), 123YN(2), 34 123YO(2) or 123YP(2); and [Page Break] 2 123YE(2) or 123YF(2), the monetary value stored on a 3 stored value card; and 4 (g) enabling the Secretary to pay an amount under subsection 5 123YG(2), 123YH(2), 123YI(2), 123YJ(2), 123YK(2), 6 123YL(2), 123YM(2), 123YN(2), 123YO(2) or 123YP(2); 7 and 8 (h) paying or discharging expenses incurred by the 9 Commonwealth in relation to action taken by the Secretary 10 under subsection 123YQ(2). 11 (2) To avoid doubt, subsection (1) is the only provision of this Part 12 that appropriates the Consolidated Revenue Fund. 13 123ZO This Part has effect despite other provisions etc. 14 This Part has effect despite anything in: 15 (a) any other provision of this Act; or 16 (b) the 1991 Act; or 17 (c) the Family Assistance Act; or 18 (d) the Family Assistance Administration Act; or 19 (e) the Student Assistance Act 1973; or 20 (f) the Veterans' Entitlements Act. 21 18 After paragraph 144(k) 22 Insert: 23 (ka) a decision under Part 3B of this Act that relates to a person 24 who is subject to the income management regime under 25 section 123UB; 26 19 After paragraph 192(da) 27 Insert: 28 (db) the operation of Part 3B; 29 20 After paragraph 195(1)(c) 30 Insert: 31 (ca) to facilitate the administration of Part 3B; 32 21 At the end of section 202 [Page Break] 2 (6) A person may disclose protected information to another person 3 who is responsible for the operation of a school if the protected 4 information relates to the enrolment, or non-enrolment, of children 5 at the school. 6 (7) A person may disclose protected information to another person 7 who is responsible for the operation of a school if the protected 8 information relates to the attendance, or non-attendance, of 9 children at the school. 10 Veterans' Entitlements Act 1986 11 22 Section 125 12 After "to this Act", insert "and Part 3B of the Social Security 13 (Administration) Act 1999". [Page Break] 2 Schedule 2--Baby bonus 3 4 A New Tax System (Family Assistance) Act 1999 5 1 Subparagraph 38(c)(ii) 6 Omit "47(2)", substitute "47(1A), (2)". 7 A New Tax System (Family Assistance) (Administration) Act 8 1999 9 2 After subsection 47(1) 10 Insert: 11 Payment of baby bonus by instalment for those 18 and over 12 (1A) Despite subsection (1), if: 13 (a) the claimant has turned 18 on the day on which the claimant 14 makes a claim for payment of baby bonus; and 15 (b) the claimant is entitled to be paid baby bonus in respect of a 16 child; and 17 (c) on the day on which the determination granting the claim is 18 made: 19 (i) the claimant is subject to the income management 20 regime (within the meaning of Part 3B of the Social 21 Security (Administration) Act 1999); or 22 (ii) the claimant is included in a class of individuals 23 specified in a legislative instrument made by the 24 Minister for the purposes of this subparagraph; 25 the Secretary must, after each of the first 13 instalment periods that 26 end after the determination granting the claim is made, pay to the 27 claimant 1/13 of the amount of baby bonus that the claimant is 28 entitled to be paid. The Secretary must pay it at such time as the 29 Secretary considers appropriate and to the credit of a bank account 30 nominated and maintained by the claimant. 31 (1B) However, the Secretary may direct that the whole or a part of an 32 amount which is to be paid for the purposes of subsection (1A) is 33 to be paid in a manner other than by payment to the credit of a [Page Break] 2 Secretary gives the direction, the amount is to be paid in 3 accordance with the direction (despite that subsection). 4 3 Subsection 47(2) 5 Omit "However", substitute "Despite subsection (1)". 6 Note: The heading to subsection 47(2) is deleted. 7 4 After paragraph 47(2)(a) 8 Insert: 9 (ab) subsection (1A) does not apply to the claimant; and 10 5 Subsection 47(3) 11 Omit "If", substitute "Despite subsection (1), if". 12 6 Subsections 47(4) and (6) 13 Before "(2)", insert "(1A),". 14 7 Application 15 The amendments made by this Schedule apply to claims for payment of 16 baby bonus made after this item commences. [Page Break] 2 Schedule 3--Northern Territory CDEP 3 transition payment 4 5 Income Tax Assessment Act 1936 6 1 Subsection 160AAA(1) (after paragraph (c) of the definition 7 of rebatable benefit) 8 Insert: 9 (d) paid by way of Northern Territory CDEP transition payment 10 under Part 2.27 of the Social Security Act 1991; or 11 Social Security Act 1991 12 2 Subsection 23(1) 13 Insert: 14 CDEPManager means the computer system known as 15 CDEPManager. 16 3 Subsection 23(1) 17 Insert: 18 CDEP Scheme provider means a person or organisation that is a 19 party to a Programme Funding Agreement with the 20 Commonwealth under which the person or organisation receives 21 Commonwealth funding to deliver the CDEP Scheme. 22 4 Subsection 23(1) 23 Insert: 24 Northern Territory CDEP transition payment means a Northern 25 Territory CDEP transition payment under Part 2.27. 26 5 Subsection 23(1) 27 Insert: 28 transition day, for a person affected by Part 2.27 (Northern 29 Territory CDEP transition payment), has the meaning given by 30 section 1061ZAAM. [Page Break] 2 Add: 3 Part 2.27--Northern Territory CDEP transition 4 payment 5 Division 1--Qualification for and payability of Northern 6 Territory CDEP transition payment 7 Subdivision A--Qualification for Northern Territory CDEP 8 transition payment 9 1061ZAAL Qualification for Northern Territory CDEP transition 10 payment 11 (1) A person is qualified for Northern Territory CDEP transition 12 payment if: 13 (a) on 23 July 2007, the person was eligible to participate in the 14 CDEP Scheme under the criteria set out in paragraphs 6.1, 15 6.2 and 6.3 of CDEP Annexure B (see subsection (2)); and 16 (b) on 23 July 2007, the person was recorded as active in 17 CDEPManager; and 18 (c) there is a transition day for the person (see 19 section 1061ZAAM); and 20 (d) during the period starting on 23 July 2007 and ending on the 21 transition day for the person, the person did not cease to 22 participate in the CDEP Scheme for a period of more than 12 23 consecutive weeks (disregarding any period during which the 24 person was taking paid or unpaid leave approved by a CDEP 25 Scheme provider); and 26 (e) the person meets any other conditions specified in rules made 27 for the purposes of this paragraph under section 1061ZAAW. 28 (2) The reference in paragraph (1)(a) to CDEP Annexure B is a 29 reference to Annexure B to the CDEP Schedule of the 2007/2008 30 Commonwealth Programme Funding Agreement as in force on 31 23 July 2007. [Page Break] 2 accessible through the Australian Government Internet site at 3 www.workplace.gov.au. 4 1061ZAAM Northern Territory CDEP transition day 5 (1) The Secretary may give a CDEP Scheme provider a written notice 6 specifying the day on which the provider must stop making CDEP 7 Scheme payments to or on behalf of persons participating in the 8 CDEP Scheme in the Northern Territory. 9 (2) A notice under subsection (1) is not a legislative instrument. 10 (3) If the Secretary has given a CDEP Scheme provider a notice under 11 subsection (1), the Secretary may, before the day specified in that 12 notice, vary that notice by further written notice to the provider. 13 (4) The transition day for a person is the day specified in a notice 14 given to a CDEP Scheme provider under this section, if: 15 (a) at any time before the specified day, the person has been 16 registered as active in CDEPManager so far as that system is 17 maintained by that provider; and 18 (b) between that time and the specified day, the person has not 19 been registered as active in CDEPManager so far as that 20 system is maintained by any other provider. 21 (5) However, if, apart from this subsection, a person would have more 22 than one transition day, the transition day for the person is the 23 earliest of the days that would otherwise have been transition days. 24 Subdivision B--Payability of Northern Territory CDEP 25 transition payment 26 1061ZAAN Northern Territory CDEP transition payment only 27 payable if certain claim criteria met 28 Northern Territory CDEP transition payment is not payable to a 29 person unless one of the following applies: 30 (a) a claim made by the person for a social security benefit or a 31 social security pension was granted before the transition day 32 for the person and the benefit or pension had not been 33 cancelled by the transition day; [Page Break] 2 social security pension before the transition day for the 3 person had not been determined by the transition day; 4 (c) on or after the transition day for the person, the person has 5 made a claim for a social security benefit or a social security 6 pension. 7 1061ZAAO Northern Territory CDEP transition payment not 8 payable while CDEP Scheme payments being received 9 Northern Territory CDEP transition payment is not payable to a 10 person in respect of any period for which the person is receiving 11 CDEP Scheme payments. 12 1061ZAAP Northern Territory CDEP transition payment not 13 payable if rate too low 14 Northern Territory CDEP transition payment is not payable to a 15 person if the person's fortnightly rate of Northern Territory CDEP 16 transition payment under subsection 1061ZAAS(2) would be less 17 than $5. 18 1061ZAAQ Northern Territory CDEP transition payment not 19 payable if compliance penalty period applies 20 Northern Territory CDEP transition payment is not payable to a 21 person if a compliance penalty period applies in relation to the 22 person. 23 Note: For compliance penalty period see subsection 23(1). 24 1061ZAAR Northern Territory CDEP transition payment not 25 payable from 1 July 2008 26 Northern Territory CDEP transition payment is not payable: 27 (a) for a period that includes 1 July 2008--in respect of so much 28 of the period as occurs on or after 1 July 2008; and 29 (b) in respect of any period starting on or after 1 July 2008. [Page Break] 2 payment 3 1061ZAAS Rate of Northern Territory CDEP transition payment 4 (1) The rate of a person's Northern Territory CDEP transition payment 5 is a daily rate, worked out by dividing the person's fortnightly rate 6 worked out under subsection (2) by 14. 7 (2) The person's fortnightly rate is: 8 (a) the excess (if any) of the amount in subparagraph (i) over the 9 amount in subparagraph (ii): 10 (i) the person's pre-transition fortnightly income worked 11 out under section 1061ZAAT; and 12 (ii) the person's post-transition fortnightly income worked 13 out under section 1061ZAAU; or 14 (b) if the Secretary considers that a person's rate worked out 15 under paragraph (a) is not appropriate in the person's 16 circumstances--the rate determined by the Secretary. 17 (3) In making a determination under this section, the Secretary must 18 have regard to the guidelines (if any) set out in rules made for the 19 purposes of this section under section 1061ZAAW. 20 1061ZAAT Pre-transition fortnightly income 21 (1) For the purposes of subparagraph 1061ZAAS(2)(a)(i), a person's 22 pre-transition fortnightly income is the sum of: 23 (a) the person's average fortnightly income from CDEP Scheme 24 payments during the period determined for the person by the 25 Secretary under subsection (2); and 26 (b) if the person was receiving a social security benefit on 27 23 July 2007--the person's provisional fortnightly payment 28 rate for the benefit; and 29 (c) if the person was receiving a social security pension on 30 23 July 2007--the person's provisional annual payment rate 31 for the pension, expressed as a fortnightly rate; and 32 (d) if the person received remote area allowance in respect of a 33 fortnight that included 23 July 2007--the person's remote 34 area allowance for the fortnight; and [Page Break] 2 under Division 3 of Part 3.15A in respect of a period that 3 included 23 July 2007--$20.80. 4 (2) The Secretary must determine a period for a person for the 5 purposes of paragraph (1)(a). The period must not be more than 13 6 weeks and must end on 23 July 2007. 7 (3) Despite subsection (1), if the Secretary considers that a person's 8 pre-transition fortnightly income as worked out under that 9 subsection would not be appropriate in the person's circumstances, 10 the person's pre-transition fortnightly income is the amount 11 determined by the Secretary (having regard to the person's income 12 as at 23 July 2007 from CDEP Scheme payments and any social 13 security benefit or social security pension). 14 (4) In making a determination under this section, the Secretary must 15 have regard to the guidelines (if any) set out in rules made for the 16 purposes of this section under section 1061ZAAW. 17 1061ZAAU Post-transition fortnightly income 18 (1) For the purposes of subparagraph 1061ZAAS(2)(a)(ii), a person's 19 post-transition fortnightly income is the sum of: 20 (a) if the person is receiving a social security benefit on the 21 relevant day--the person's provisional fortnightly payment 22 rate for the benefit; and 23 (b) if the person is receiving a social security pension on the 24 relevant day--the person's provisional annual payment rate 25 for the pension, expressed as a fortnightly rate; and 26 (c) if the person is receiving remote area allowance in respect of 27 a period that includes the relevant day--the person's remote 28 area allowance for the period. 29 (2) The relevant day for the purposes of subsection (1) is: 30 (a) the start day for the person's Northern Territory CDEP 31 transition payment; or 32 (b) a later day determined by the Secretary. 33 (3) Despite subsection (1), if the Secretary considers that a person's 34 post-transition fortnightly income as worked out under that 35 subsection would not be appropriate in the person's circumstances, [Page Break] 2 determined by the Secretary. 3 (4) In making a determination under this section, the Secretary must 4 have regard to the guidelines (if any) set out in rules made for the 5 purposes of this section under section 1061ZAAW. 6 1061ZAAV Maximum rate of Northern Territory CDEP transition 7 payment 8 The maximum fortnightly rate of Northern Territory CDEP 9 transition payment under subsection 1061ZAAS(2) is $794.80. 10 Division 3--Miscellaneous 11 1061ZAAW Northern Territory CDEP transition payment rules 12 (1) The Secretary may, by legislative instrument, make rules in 13 relation to any or all of the following: 14 (a) any matters required or permitted by this Part to be set out in 15 rules; 16 (b) qualification for, and payability and rate of, Northern 17 Territory CDEP transition payment; 18 (c) any other matters in relation to Northern Territory CDEP 19 transition payment. 20 (2) Rules made for the purposes of paragraph (1)(b) may impose 21 requirements or limitations additional to the requirements or 22 limitations imposed under this Part. 23 7 After subsection 1188B(2) 24 Insert: 25 (2A) Without limiting persons who are not CDEP Scheme participants, a 26 person who is undertaking an activity approved by the Secretary 27 under section 1188BA as a Northern Territory CDEP transitional 28 activity is not a CDEP Scheme participant. 29 8 At the end of Division 1 of Part 3.15A 30 Add: [Page Break] 2 activities 3 (1) The Secretary may, in writing, approve an activity as a Northern 4 Territory CDEP transitional activity for the purposes of this Act. 5 (2) An approval under subsection (1) is not a legislative instrument. 6 1188BB Effect of undertaking Northern Territory CDEP 7 transitional activities 8 A person is not taken to be: 9 (a) an employee within the meaning of section 9 of the 10 Occupational Health and Safety Act 1991; or 11 (b) an employee within the meaning of section 5 of the Safety, 12 Rehabilitation and Compensation Act 1988; or 13 (c) an employee for the purposes of the Superannuation 14 Guarantee (Administration) Act 1992; or 15 (d) an employee for the purposes of the Workplace Relations Act 16 1996; 17 merely by undertaking an activity approved by the Secretary under 18 section 1188BA as a Northern Territory CDEP transitional activity 19 for the purposes of this Act. 20 Social Security (Administration) Act 1999 21 9 At the end of subsection 52(1) 22 Add: 23 ; (l) Northern Territory CDEP transition payment. 24 10 At the end of section 138 25 Add: 26 (3) Paragraphs (1)(a) and (c) do not apply in relation to a decision that 27 is not reviewable by the Social Security Appeals Tribunal (see 28 section 144). 29 11 After paragraph 144(d) 30 Insert: [Page Break] 2 Part 2.27 of the 1991 Act (Northern Territory CDEP 3 transition payment); 4 12 Subclause 1(1) of Schedule 1 (at the end of the definition 5 of social security periodic payment) 6 Insert: 7 ; or (j) Northern Territory CDEP transition payment.