Scope
(1) This section applies if:
(a) a person (the first person ) is subject to the income management regime; and
(b) the first person's income management account has a credit balance; and
(c) the first person has a Part 3B payment nominee.
Expense payment
(2) The Secretary may, on behalf of the Commonwealth:
(a) make a payment in discharge, in whole or in part, of an obligation of the Part 3B payment nominee to pay an amount to a third person in respect of expenditure incurred by the Part 3B payment nominee in relation to goods or services; or
(b) with the consent of the Part 3B payment nominee, 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 in respect of expenditure incurred by the third person in relation to goods or services; or
(c) 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 in respect of expenditure incurred by the first person in relation to goods or services;
so long as the amount paid does not exceed the credit balance of the first person's income management account.
Income Management Record to be debited
(3) If the Secretary makes a payment under subsection (2), the Income Management Record is debited by an amount equal to the amount paid.
First person's income management account to be debited
(4) If the Secretary makes a payment under subsection (2), the first person's income management account is debited by an amount equal to the amount paid.
Criteria
(5) The Secretary must not make a payment under subsection (2) if the Secretary is satisfied that the relevant goods or services are excluded goods or excluded services.
Tax consequences
(6) If the Secretary makes a payment under subsection (2), the payment does not have consequences under the income tax law for the Part 3B payment nominee or the first person.