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A NEW TAX SYSTEM (FAMILY ASSISTANCE) (ADMINISTRATION) ACT 1999 - SECT 71A

Debts arising in respect of family tax benefit advances

No entitlement to advance

  (1)   If:

  (a)   a family tax benefit advance has been paid to an individual; and

  (b)   the individual was not entitled to the advance;

the amount so paid is a debt due to the Commonwealth by the individual.

Overpayment

  (2)   If:

  (a)   an amount (the received amount ) of family tax benefit advance has been paid to an individual; and

  (b)   the received amount is greater than the amount (the correct amount ) of family tax benefit advance that should have been paid to the individual under the family assistance law;

the difference between the received amount and the correct amount is a debt due to the Commonwealth by the individual.

Debt arising during the repayment period for a family tax benefit advance

  (3)   If:

  (a)   an individual is paid a family tax benefit advance; and

  (b)   the repayment period for the advance has not expired; and

  (c)   one of the following occurs:

  (i)   the individual ceases to be entitled to be paid family tax benefit by instalment;

  (ii)   the individual's Part A rate becomes nil (before reduction under clause   5 or 25A of Schedule   1 to the Family Assistance Act);

the amount of unrepaid family tax benefit advance becomes a debt due to the Commonwealth by the individual.

Debt arising due to variation or review after the repayment period for a family tax benefit advance has expired

  (4)   If:

  (a)   an individual is paid a family tax benefit advance; and

  (b)   the individual's Part A rate has been reduced under clause   5 or 25A of Schedule   1 to the Family Assistance Act to repay the advance; and

  (c)   the repayment period for the advance has expired; and

  (d)   due to a variation in a determination, or a variation or substitution of a decision on review (other than a variation under subsection   28(2) or (6)), the reduction in the individual's Part A rate under clause   5 or 25A of Schedule   1 to the Family Assistance Act has not been sufficient to repay the advance; and

  (e)   at the time of the variation of the determination, or the variation or substitution of the decision on review:

  (i)   the individual is not entitled to be paid family tax benefit by instalment; or

  (ii)   the individual's Part A rate is nil (before reduction under clause   5 or 25A of Schedule   1 to the Family Assistance Act);

the amount of the family tax benefit advance left unrepaid as a result of the variation of the determination, or the variation or substitution of the decision on review, becomes a debt due to the Commonwealth by the individual.

Note:   If the individual is entitled to be paid family tax benefit by instalment and has a Part A rate greater than nil, the unrepaid amount of the advance is to be repaid by reductions in the individual's Part A rate (see clause   51 of Schedule   1 to the Family Assistance Act).

Debt arising due to variation under subsection   28(2) or (6)

  (5)   If:

  (a)   an individual is paid a family tax benefit advance; and

  (b)   the individual's Part A rate has been reduced under clause   5 or 25A of Schedule   1 to the Family Assistance Act to repay the advance; and

  (c)   due to a variation in a determination of the individual's entitlement to family tax benefit made under subsection   28(2) or (6), the reduction in the individual's Part A rate under clause   5 or 25A of Schedule   1 to the Family Assistance Act has not been sufficient to repay the advance;

the amount of the family tax benefit advance left unrepaid as a result of the variation of the determination becomes a debt due to the Commonwealth by the individual.

  (6)   If a debt is created under subsection   (5) and the Secretary varies the determination of the individual's entitlement to family tax benefit under subsection   28(3) or (4), the debt is taken never to have been created.

Note:   If, after the variation, the individual's Part A rate was not sufficient to repay the advance, the unrepaid amount of the advance is to be repaid either by reductions in the individual's Part A rate (see clauses   48 and 51 of Schedule   1 to the Family Assistance Act) or as a debt under subsection   (3) or (4).

Debt arising due to determination under clause   45 of Schedule   1 to the Family Assistance Act

  (7)   If:

  (a)   an individual is paid a family tax benefit advance; and

  (b)   the Secretary determines under clause   45 of Schedule   1 to the Family Assistance Act that the amount of the advance that is unrepaid is to be a debt;

the amount of the family tax benefit advance becomes a debt due to the Commonwealth by the individual.

Meaning of FTB advance debt

  (8)   The debt due to the Commonwealth under subsection   (1), (2), (3), (4), (5) or (7) is an FTB advance debt .



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