Restricted direct payment—Part 3B payment nominee
123YN Restricted direct payment—Part 3B payment nominee
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 has a Part 3B payment nominee.
Direct payment
The Secretary may, on behalf of the Commonwealth:
pay an amount to the credit of a bank account held by the Part 3B payment nominee (whether alone or jointly or in common with another person); or
with the consent of the Part 3B payment nominee, pay an amount to the credit of a bank account held by a third person (whether alone or jointly or in common with another person); or
if:
the first person is subject to the income management regime under section 123UF; and
under a law of Queensland, the Queensland Commission gave the Secretary a written notice stating that a specified bank account held by a third person is a nominated third party account in relation to the first person; and
the notice has not been withdrawn or revoked;
pay the amount to the credit of that bank account; or
pay an amount to the Part 3B payment nominee by way of a cheque; or
with the consent of the Part 3B payment nominee, pay an amount to a third person by way of a cheque; or
pay an amount to the Part 3B payment nominee by way of cash; or
with the consent of the Part 3B payment nominee, pay an amount to a third person by way of cash; or
give the Part 3B payment nominee a stored value card that enables the Part 3B payment nominee to withdraw cash; or
with the consent of the Part 3B payment nominee, give the first person a stored value card that enables the first person to withdraw cash;
so long as:
if paragraph (a), (b), (c), (d), (e), (f) or (g) applies—the amount paid does not exceed the credit balance of the first person’s income management account; or
if paragraph (h) or (i) applies—the monetary value stored on the card does not exceed the credit balance of the first person’s income management account.
Income Management Record to be debited
If the Secretary pays an amount under paragraph (2)(a), (b), (c), (d), (e), (f) or (g), the Income Management Record is debited by an amount equal to the amount paid.
If, under paragraph (2)(h) or (i), the Secretary gives the Part 3B payment nominee or the first person a stored value card, the Income Management Record is debited by an amount equal to the monetary value stored on the card.
First person’s income management account to be debited
If the Secretary pays an amount under paragraph (2)(a), (b), (c), (d), (e), (f) or (g), the first person’s income management account is debited by an amount equal to the amount paid.
If, under paragraph (2)(h) or (i), the Secretary gives the Part 3B payment nominee or the first person a stored value card, the first person’s income management account is debited by an amount equal to the monetary value stored on the card.
Criteria
The Secretary must not pay an amount under paragraph (2)(a), (b), (c), (d), (e), (f) or (g) if the Secretary has reasonable grounds to believe that the whole or a part of the amount paid will be used to acquire excluded goods or excluded services.
The Secretary must not give the Part 3B payment nominee or the first person a stored value card under paragraph (2)(h) or (i) if the Secretary has reasonable grounds to believe that the whole or a part of the monetary value stored on the card will be used to acquire excluded goods or excluded services.
Tax consequences
If the Secretary makes a payment under paragraph (2)(a), (d) or (f), the payment does not have consequences under the income tax law for the Part 3B payment nominee or the first person.
If the Secretary makes a payment under paragraph (2)(b), (c), (e) or (g), the payment does not have consequences under the income tax law for the Part 3B payment nominee or the first person.
If, under paragraph (2)(h) or (i), the Secretary gives the Part 3B payment nominee or the first person a stored value card, the giving of the card does not have consequences under the income tax law for the Part 3B payment nominee or the first person.
This Act’s bill:Explanatory memorandumSecond reading speech
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