Expense payment—general
123YG Expense payment—general
Scope
This section applies if:
a person (the first person) is subject to the income management regime; and
the first person’s income management account has a credit balance; and
the first person does not have a Part 3B payment nominee.
Expense payment
The Secretary may, on behalf of the Commonwealth:
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; or
with the consent of the first person, 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
make a payment in discharge, in whole or in part, of an obligation of the first person to pay an amount by way of rates or land tax; or
with the consent of the first person, make a payment in discharge, in whole or in part, of an obligation of a third person to pay an amount by way of rates or land tax;
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
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
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
The Secretary must not make a payment under paragraph (2)(a) or (b) if the Secretary is satisfied that the relevant goods or services are excluded goods or excluded services.
Tax consequences
If the Secretary makes a payment under subsection (2), the payment does not have consequences under the income tax law for the first person.
This Act’s bill:Explanatory memorandumSecond reading speech
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