Commonwealth Consolidated Acts

A NEW TAX SYSTEM (FAMILY ASSISTANCE) (ADMINISTRATION) ACT 1999 - SECT 87

             (1)  If, under section 82, a debt owed by a person is recoverable by the Commonwealth by means of application of an income tax refund payable to the person, the Commissioner of Taxation may apply the whole or a part of the refund to the debt.

             (2)  The amount of the refund and the amount of the debt are reduced accordingly.

             (3)  Subject to subsection (4), action under this section for the recovery of a debt is not to be taken after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

             (4)  If:

                     (a)  action is taken under this section to recover a debt owed by a person from an income tax refund that relates to a particular income year; and

                     (b)  the action is taken within 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt; and

                     (c)  the amount of the refund is not sufficient to reduce the amount of the debt to nil;

action may be taken under this section to apply an income tax refund payable to the person for a later income year to the remainder of the debt.