Deductions from category I welfare payments—lump sums
123XPAB Deductions from category I welfare payments—lump sums
Scope
This section applies if:
a person is subject to the income management regime under section 123UFAA; and
a category I welfare payment is payable to the person otherwise than by instalments.
Deductions from category I welfare payments—lump sums
The following provisions have effect:
the Secretary must deduct from the category I welfare payment the deductible portion of the payment;
an amount equal to the deductible portion of the payment is credited to the Income Management Record;
an amount equal to the deductible portion of the payment is credited to the person’s income management account.
Deductible portion
For the purposes of subsection (2), the deductible portion of a category I welfare payment is:
100%; or
if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage;
of the net amount of the payment (rounded down to the nearest cent).
An instrument under paragraph (3)(b) may specify different percentages depending on one or more of the following:
the category I welfare payments payable to persons subject to the income management regime under section 123UFAA;
the usual place of residence of those persons;
the recognised State/Territory authorities whose officers or employees may give a notice of the kind referred to in paragraph 123UFAA(1)(b).
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