Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section applies if:
(a) at a particular time, a person (the first person ) ceases to be subject to the income management regime; and
(b) the first person's income management account has a credit balance at that time; and
(c) if, immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UC, 123UCA, 123UCB, 123UCC, 123UD, 123UE, 123UF or 123UFAA--the Secretary is satisfied that the first person is not likely to become subject to the income management regime within 60 days after the cessation; and
(d) if, immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UFA--the Secretary is satisfied that the first person is not likely to become subject to the income management regime under section 123UC, 123UCA, 123UCB, 123UCC, 123UD, 123UE, 123UF or 123UFAA within 60 days after the cessation.
(2) For the purposes of this section, the residual amount is an amount equal to the credit balance of the first person's income management account.
(3) The residual amount is payable to the first person in accordance with this section.
Payment by instalments
(4) The Secretary may determine that the whole or a part of the residual amount is to be paid to the first person by instalments. The instalments are to be paid on the days specified in a determination made by the Secretary.
(5) The days specified in the determination must occur within the 12 - month period beginning when the person ceased to be subject to the income management regime.
(6) If an instalment is paid under subsection (4):
(a) the Income Management Record is debited by an amount equal to the amount of the instalment; and
(b) the first person's income management account is debited by an amount equal to the amount of the instalment.
Lump sum payment
(7) The Secretary may determine that the whole or a part of the residual amount is to be paid to the first person as a single lump sum on a day determined by the Secretary.
(8) The day specified in the determination must occur within the 12 - month period beginning when the person ceased to be subject to the income management regime.
(9) The Secretary must not make a determination under subsection (7) unless:
(a) the lump sum is $200 or less; or
(b) the Secretary is satisfied that there are special circumstances that warrant the making of the determination; or
(c) immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UFA.
(10) If a lump sum is paid under subsection (7):
(a) the Income Management Record is debited by an amount equal to the lump sum; and
(b) the first person's income management account is debited by an amount equal to the lump sum.
Expense payment
(11) The Secretary may, on behalf of the Commonwealth:
(a) make a payment in discharge, in whole or in part, of an obligation of the first person to pay an amount to a third person; or
(b) make a payment in discharge, in whole or in part, of an obligation of a third person to pay an amount to a fourth person;
so long as:
(c) the payment is made with the consent of the first person; and
(d) the amount paid by the Secretary does not exceed the residual amount.
(12) The payment under subsection (11) must occur within the 12 - month period beginning when the person ceased to be subject to the income management regime.
(13) If the Secretary makes a payment under subsection (11):
(a) the Income Management Record is debited by an amount equal to the amount paid under subsection (11); and
(b) the first person's income management account is debited by an amount equal to the amount paid under subsection (11); and
(c) the Secretary is taken to have paid the first person so much of the residual amount as equals the amount paid under subsection (11).
Set - off
(14) If the first person owes an amount (the debt amount ) to the Commonwealth, the Secretary may, with the consent of the first person, set off the whole or part of the residual amount against the whole or a part of the debt amount.
(15) The set - off under subsection (14) must occur within the 12 - month period beginning when the person ceased to be subject to the income management regime.
(16) If the Secretary sets off an amount under subsection (14):
(a) the Income Management Record is debited by an amount equal to the amount set off; and
(b) the first person's income management account is debited by an amount equal to the amount set off; and
(c) the Secretary is taken to have paid the first person so much of the residual amount as equals the amount set off.
(16A) Subsection (14) is not limited by Chapter 5 of the 1991 Act also applying in relation to the debt amount.
Tax consequences
(17) If a payment is made under subsection (4), (7) or (11), the payment does not have consequences under the income tax law for the first person.
(18) If the Secretary sets off an amount under subsection (14), the set - off does not have consequences under the income tax law for the first person.
Interpretation
(19) This section is subject to section 123WJA.