123YL

Transfers to accounts—Part 3B payment nominee

In force

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.

Transfers

(2)

The Secretary may, on behalf of the Commonwealth:

(a)

pay an amount to the credit of an account held by the Part 3B payment nominee with:

(i)

a bank; or

(ii)

a person specified in a legislative instrument made by the Secretary for the purposes of this subparagraph;

so long as money standing to the credit of the account cannot be debited except for the purposes of:

(iii)

acquiring goods or services; or

(iv)

paying account‑related fees or charges; or

(b)

with the consent of the Part 3B payment nominee, pay an amount to the credit of an account held by a third person with:

(i)

a bank; or

(ii)

a person specified in a legislative instrument made by the Secretary for the purposes of this subparagraph;

so long as money standing to the credit of the account cannot be debited except for the purposes of:

(iii)

acquiring goods or services; or

(iv)

paying account‑related fees or charges;

so long as the amount paid by the Secretary does not exceed the credit balance of the first person’s income management account.

(3)

The goods or services referred to in paragraph (2)(a) or (b) may be limited to such goods or services as are determined by the Secretary.

Income Management Record to be debited

(4)

If, under subsection (2), the Secretary pays an amount to the credit of an account, the Income Management Record is debited by an amount equal to the amount paid.

First person’s income management account to be debited

(5)

If, under subsection (2), the Secretary pays an amount to the credit of an account, the first person’s income management account is debited by an amount equal to the amount paid.

Criteria

(6)

The Secretary must not, under subsection (2), pay an amount to the credit of an account if the Secretary is satisfied that any of the relevant goods or services are excluded goods or excluded services.

Tax consequences

(7)

If, under subsection (2), the Secretary pays an amount to the credit of an account, the payment does not have consequences under the income tax law for the Part 3B payment nominee or the first person.

This Act’s bill:Explanatory memorandum Second reading speech

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