Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section applies if:
(a) an income management account is kept in the name of a person; and
(b) the person dies; and
(c) at the time of the person's death, the person's income management account has a credit balance.
(2) For the purposes of this section, the residual amount is an amount equal to the credit balance of the person's income management account.
Payment of residual amount
(3) The residual amount is to be paid in one or more of the following ways (as determined by the Secretary):
(a) to the legal personal representative of the person;
(b) to one or more other persons whom the Secretary is satisfied have carried out, are carrying out, or will carry out, an appropriate activity in relation to the estate or affairs of the person;
(c) to the credit of a bank account nominated by the person for the purposes of subsection 55(2).
An amount that is to be paid under this subsection is to be paid as a lump sum on a day determined by the Secretary.
(3A) A person may be paid more than one amount under subsection (3).
(5) If a lump sum is paid under subsection (3):
(a) the Income Management Record is debited by an amount equal to the lump sum; and
(b) the person's income management account is debited by an amount equal to the lump sum.
Tax consequences
(6) If a payment is made under subsection (3), the payment does not have consequences under the income tax law for the person's estate.