Coronavirus Economic Response Package (Payments and Benefits) Act 2020

This Act is the Coronavirus Economic Response Package (Payments and Benefits) Act 2020.

The object of this Act is to provide financial support directly or indirectly to entities that are directly or indirectly affected by the Coronavirus known as COVID‑19.

This Act extends to every external Territory referred to in the definition of Australia (within the meaning of section 960‑505 of the Income Tax Assessment Act 1997).

The Commissioner has the general administration of this Act.

Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.

In this Act:

approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953.

Australia has the same meaning as in section 960‑505 of the Income Tax Assessment Act 1997.

Commissioner means the Commissioner of Taxation.

Coronavirus economic response payment is the collective name for all of the kinds of payments provided for by the rules.

Note: Particular kinds of payments provided for by the rules may also have a particular name for that kind of payment.

entity has the meaning given by the Income Tax Assessment Act 1997.

general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.

income tax return has the meaning given by the Income Tax Assessment Act 1997.

income year has the meaning given by the Income Tax Assessment Act 1997.

prescribed period means the period between 1 March 2020 and 28 March 2021.

relevant period means the period between 7 October 2020 and 6 October 2022.

this Act includes the rules.

The rules may make provision for and in relation to:

one or more kinds of payments by the Commonwealth to an entity in respect of a time that occurs during the prescribed period; and

the establishment of a scheme providing for matters relating to one or more of those payments, and matters relating to such a scheme.

Paragraphs (a) and (b) do not limit each other.

The rules may also make provision for and in relation to:

one or more kinds of payments by the Commonwealth to an entity in respect of a time that occurs during the relevant period, being payments that are primarily for the purpose of:

improving the prospects of individuals getting employment in Australia; or

increasing workforce participation in Australia; and

the establishment of a scheme providing for matters relating to one or more of those payments, and matters relating to such a scheme.

Paragraphs (a) and (b) do not limit each other.

The rules may also make provision for and in relation to:

one or more kinds of payments by the Commonwealth to an entity in respect of a time that occurs during the period beginning on 1 July 2021 and ending on 31 December 2022, being payments that are for the purpose of providing financial support to entities that are adversely affected by restrictions imposed under a public health order of a State or Territory to prevent or control the transmission of the coronavirus known as COVID‑19; and

the establishment of a scheme providing for matters relating to one or more of those payments, and matters relating to such a scheme.

Paragraphs (a) and (b) do not limit each other.

Without limiting subsections (1), (1A) and (1B), the rules may make provision for and in relation to the following matters:

the eligibility criteria for a payment;

if or how an application for a payment may or must be made;

whether a payment is to be paid in instalments or as a lump sum;

entitlement to a payment or an instalment of a payment;

the amount of a payment or an instalment of a payment;

when a payment or an instalment of a payment is payable;

conditions applying to a payment or an instalment of a payment;

providing information or notices;

rights, obligations or liabilities of:

an entity that is paid a payment; or

an entity that directly benefits from another entity being paid a payment; or

if the entitlement of an entity to a payment relates to a relationship existing between the entity and another entity—the other entity.

Paragraphs (a) to (i) do not limit each other.

If, under the rules, the Commissioner is required to pay a Coronavirus economic response payment to an entity, the Commissioner must pay the payment to the credit of:

if the entity has nominated a financial institution account as referred to in section 8AAZLH of the Taxation Administration Act 1953—that account; or

if paragraph (a) does not apply—the financial institution account nominated by the entity in the entity’s most recent income tax return lodged for an income year.

However, the Commissioner may direct that the payment be paid to the entity in a different way.

If the entity has not nominated a financial institution account as mentioned in subsection (1) and the Commissioner has not directed that the payment be paid in a different way, the Commissioner is not obliged to pay the payment to the entity until the entity does so.

If the Commissioner pays a payment to the credit of a financial institution account nominated by an entity, the Commissioner is taken to have paid the payment to the entity.

This section applies if:

the Commissioner pays an amount by way of a Coronavirus economic response payment to an entity; and

either:

the entity was not entitled to the payment; or

the amount paid is more than the correct amount of the entity’s payment.

The entity is liable to repay the following amount to the Commonwealth:

if the entity was not entitled to the payment—the whole of the amount referred to in paragraph (1)(a);

if the amount paid is more than the correct amount of the entity’s payment—the amount by which the amount paid exceeds the correct amount.

An amount that an entity is liable to repay under subsection (2) is due and payable on the day on which the Commissioner pays the amount referred to in paragraph (1)(a).

The Commissioner may make a written determination that the entity is not liable to repay an amount under subsection (2), in which case the entity is not liable to repay the amount.

A determination under subsection (4) is not a legislative instrument.

If:

an entity is liable under subsection 9(2) to repay an amount; and

the whole or a part of the amount remains unpaid after the time by which the amount is due to be paid;

the entity is liable to pay general interest charge on the unpaid amount.

An entity that is liable under this section to pay general interest charge on an unpaid amount is liable to pay the charge for each day in the period that:

started at the beginning of the day on which the unpaid amount was due to be paid; and

finishes at the end of the last day at the end of which any of the following remains unpaid:

the unpaid amount;

general interest charge on any of the unpaid amount.

This section applies if the Commissioner is satisfied that:

an entity is liable under subsection 9(2) to repay an amount because of an overpayment of a Coronavirus economic response payment; and

the overpayment occurred because the entity reasonably relied on a statement that was made by another entity in the approved form; and

the statement by the other entity was false or misleading in a material particular, whether because of things in it or omitted from it; and

the other entity did not take reasonable care in connection with making the statement; and

the other entity directly benefitted from the entity being paid the Coronavirus economic response payment; and

it is reasonable for the entity and the other entity to be jointly and severally liable to pay the amount and any general interest charge payable on the amount under section 10.

This section also applies if the Commissioner is satisfied that:

an entity is liable under subsection 9(2) to repay an amount because of an overpayment of a Coronavirus economic response payment; and

the overpayment is due to fraud of another entity (whether or not the entity was also involved in that fraud); and

it is reasonable for the entity and the other entity to be jointly and severally liable to pay the amount and any general interest charge payable on the amount under section 10.

Despite sections 9 and 10, the entity and the other entity are jointly and severally liable to pay the amount and any general interest charge payable on the amount under section 10.

The rules may provide for:

circumstances in which a decision is taken to have been made by the Commissioner under this Act; and

when the decision is taken to have been made.

The rules may provide for:

circumstances in which a notice of a decision made by the Commissioner under this Act is taken to have been given to an entity; and

when the notice is taken to have been given to the entity.

If:

a decision relating to an entity is made by the Commissioner under this Act; and

the rules do not require the Commissioner to give a notice of the decision to the entity; and

rules are not made for the purposes of subsection (2) in relation to the decision; and

Part IVC of the Taxation Administration Act 1953 applies to the decision;

then, for the purposes of that Part, the Commissioner is taken to have given a notice of the decision to the entity on the day the decision was made.

Subsection (3) applies even if the Commissioner in fact gives the entity a notice of the decision on a different day.