10Payment of amounts equal to levy or charge

10 Payment of amounts equal to levy or charge

(1) For better securing the payment of levy or charge imposed in relation to collection commodities/services, the rules may make provision for and in relation to the following: (a) making persons (each of whom is a collection agent) liable to pay an amount (the equivalent amount), on behalf of the levy payer or charge payer, equal to the amount of levy or charge due for payment in relation to the collection commodities/services; (b) the time the equivalent amount is due and payable; (c) the equivalent amount being payable to the Commonwealth or another entity on behalf of the Commonwealth; (d) any other matters relating to the above matters.

Note: For limitations on the rules, see subsections (10) and (11).

Deductions by collection agent (2) For the purpose of ensuring a collection agent has the funds necessary to pay the equivalent amount, the collection agent may deduct an amount from: (a) money received by the collection agent on behalf of the levy payer or charge payer in relation to the collection commodities/services; or (b) money payable by the collection agent to the levy payer or charge payer in relation to the collection commodities/services. (3) The amount the collection agent may deduct is an amount equal to, or that may reasonably be expected to be equal to, the equivalent amount. (4) If the collection agent deducts an amount, the collection agent must give the levy payer or charge payer a receipt or other written statement within 7 days after the deduction specifying the amount of the deduction and the day of the deduction. (5) Subsections (2) and (3) apply despite: (a) any law of a State, the Australian Capital Territory or the Northern Territory; and (b) any agreement. Discharge of levy payer’s or charge payer’s liability (6) If the collection agent deducts an amount under subsection (2), the levy payer or charge payer is discharged from liability to pay the levy or charge to the extent that the amount deducted does not exceed the amount of the levy or charge.

Note: Example: Assume a levy payer is liable to pay $100 levy.

Note: A collection agent deducts $90 under subsection (2), which is the amount the collection agent reasonably expected to be the levy payer’s liability. Under subsection (6), the levy payer’s liability is discharged by $90.

(7) If the collection agent makes a payment as mentioned in paragraph (1)(a), the levy payer or charge payer is discharged from liability to pay the levy or charge to the extent of: (a) so much of the amount paid that does not exceed the amount of the levy or charge; less (b) the amount of the discharge (if any) under subsection (6).