(ii) if the agreement specifies a period (which must be at least 13 weeks) during which it is to remain in force, and the agreement has not been terminated under section 123UO before the end of that period—the end of that period.
(3) If a voluntary income management agreement (the original agreement) in relation to a person is in force, subsection (1) does not prevent the Secretary from entering into a new voluntary income management agreement with the person, so long as the new agreement is expressed to come into force immediately after the original agreement ceases to be in force.
(4) If a voluntary income management agreement in relation to a person has ceased to be in force, subsection (1) does not prevent the Secretary from entering into a new voluntary income management agreement with the person.
123UO Termination of voluntary income management agreement
Termination by request
(1) A person may, by written notice given to the Secretary, request the Secretary to terminate a voluntary income management agreement in relation to the person if:
(a) the agreement has been in force for at least 13 weeks; or
(b) the person has made a request (whether orally or in writing) to the Secretary to enter into a voluntary enhanced income management agreement (within the meaning of Part 3AA).
(2) The Secretary must terminate a voluntary income management agreement in relation to a person as soon as practicable after the person makes a valid request under subsection (1).
Grounds of termination
(3) If:
(a) a voluntary income management agreement in relation to a person (the first person) is in force; and
(b) any of the following events occurs:
(i) the first person ceases to be an eligible recipient of a category H welfare payment;
(iii) in a case where the first person has a Part 3B payment nominee—the Part 3B payment nominee becomes an excluded Part 3B payment nominee;
(v) the first person becomes subject to the income management regime under section 123UC, 123UCA, 123UCB, 123UCC, 123UD, 123UE, 123UF or 123UFAA;
(vi) the Secretary becomes satisfied that it is not feasible for the Secretary to take action under Division 6 in relation to the first person;
the Secretary must terminate the voluntary income management agreement as soon as practicable after the occurrence of the event.
(3A) If:
(a) a voluntary income management agreement in relation to a person is in force; and
(b) the person’s usual place of residence is within the Northern Territory;
the Secretary may, by written notice given to the person, terminate the agreement. The termination takes effect on a day specified in the notice (which must not be earlier than the day on which the notice is given).
Limit on new voluntary income management agreements
(4) If a voluntary income management agreement in relation to a person is terminated under this section, the Secretary must not enter into another voluntary income management agreement with the person within 21 days after the termination.
Subdivision E—Relationship with Part 3AA
123UP Payment of credit balances of income management account to BasicsCard bank account
(1) This section applies if a person becomes subject to the enhanced income management regime (within the meaning of Part 3AA) on a day (the trigger day).
Note: A person who is subject to the income management regime can request to transfer to the enhanced income management regime (see section 123SIA).
(2) Despite any other provision of this Part, the Secretary may, on a day (the payment day) before the end of 60 days beginning on the trigger day, pay, to the credit of a BasicsCard bank account (within the meaning of Part 3AA) maintained by the person, an amount equal to the credit balance (if any) of the person’s income management account as at the end of the day before the payment day.
(3) Immediately after any such payment:
(a) the Income Management Record is debited by an amount equal to the payment; and
(b) the person’s income management account is debited by an amount equal to the payment.
(4) Despite any other provision of this Part, the person cannot become subject to the income management regime under any provision of this Part at any time on or after the trigger day.
Division 3—Establishment of the Income Management Record
123VA Establishment of the Income Management Record
The Income Management Record is established by this section.
123VC Bank account
Amounts standing to the credit of the Income Management Record may be kept in a single bank account.
Division 4—Income management accounts
Subdivision A—Income management accounts
123WA Income management accounts
Income management accounts to be kept
(1) Separate notional accounts are to be kept within the Income Management Record in the names of particular persons.
Person’s income management account
(2) An account kept in the name of a person is to be known as the person’s income management account.
Note: Section 123TC provides that income management account means a notional account kept in accordance with this section.
Amounts not held on trust
(3) An amount standing to the credit of a person’s income management account is not held on trust.
123WB Opening of income management accounts
Power
(1) The Secretary may open an income management account in the name of a particular person.
(2) The Secretary may open the income management account even if the person is not subject to the income management regime.
Duty
(3) The Secretary must open an income management account in the name of a particular person if:
(a) the person does not already have an income management account; and
(b) the person is subject to the income management regime.
123WC Closing of income management accounts
The Secretary may close a person’s income management account if the balance of the income management account is nil, and:
(a) the person is not subject to the income management regime; or
(b) the person has died.
123WD Income management accounts may have a nil balance
Nil balance
(1) A person’s income management account may have a nil balance.
Examples
(2) The following are examples of cases where an income management account might have a nil balance:
(a) no amount has been credited to the income management account;
(b) the balance of the income management account has been debited under section 123WJ;
(c) the balance of the income management account has been debited under section 123WL;
(d) the balance of the income management account has been debited under Division 6.
123WE One income management account per person
Only one income management account
(1) Only one income management account may be kept in respect of a particular person.
(2) A contravention of subsection (1) does not affect the validity of an income management account.
Amalgamation
(3) If the Secretary becomes aware that 2 or more income management accounts are being kept in respect of the same person, the Secretary must amalgamate the accounts into a single account.
123WF Credits to, and debits from, a person’s income management account
An amount must not be credited to, or debited from, a person’s income management account except as provided by this Part.
Subdivision B—Account statements
123WG Internet and telephone access to account statements etc.
Scope
(1) This section applies if an income management account is kept in the name of a person.
Internet and telephone access to account statements etc.
(2) The Secretary may issue the person with a means of identification (for example, a personal identification number) that enables the person to do either or both of the following:
(a) to access on the internet electronic versions of account statements for the person’s income management account;
(b) to be told the balance of the person’s income management account using an automated telephone answering system.
123WH Person may request account statements
Scope
(1) This section applies if an income management account is kept in the name of a person.
Account statement may be requested
(2) The person may request the Secretary to give the person a written account statement for the income management account.
(3) The Secretary must comply with the request.
(4) However, the Secretary may refuse to comply with the request if the person has made a previous request at any time during the preceding period of 30 days.
123WI Account statements to be given
Scope
(1) This section applies if an income management account is kept in the name of a person.
Account statement to be given
(2) At least once each quarter, the Secretary must give the person a written account statement for the income management account.
(3) However, the Secretary is not required to give the person a written account statement relating to a particular period unless:
(a) an amount has been credited to, or debited from, the income management account during that period; or
(b) the income management account has a credit balance as at the end of that period.
Subdivision C—Miscellaneous
123WJ Payment of credit balances of income management accounts—person ceases to be subject to the income management regime
Scope
(1) This section applies if:
(a) at a particular time, a person (the first person) ceases to be subject to the income management regime; and
(b) the first person’s income management account has a credit balance at that time; and
(c) if, immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UC, 123UCA, 123UCB, 123UCC, 123UD, 123UE, 123UF or 123UFAA—the Secretary is satisfied that the first person is not likely to become subject to the income management regime within 60 days after the cessation; and
(d) if, immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UFA—the Secretary is satisfied that the first person is not likely to become subject to the income management regime under section 123UC, 123UCA, 123UCB, 123UCC, 123UD, 123UE, 123UF or 123UFAA within 60 days after the cessation.
Residual amount
(2) For the purposes of this section, the residual amount is an amount equal to the credit balance of the first person’s income management account.
(3) The residual amount is payable to the first person in accordance with this section.
Payment by instalments
(4) The Secretary may determine that the whole or a part of the residual amount is to be paid to the first person by instalments. The instalments are to be paid on the days specified in a determination made by the Secretary.
(5) The days specified in the determination must occur within the 12‑month period beginning when the person ceased to be subject to the income management regime.
(6) If an instalment is paid under subsection (4):
(a) the Income Management Record is debited by an amount equal to the amount of the instalment; and
(b) the first person’s income management account is debited by an amount equal to the amount of the instalment.
Lump sum payment
(7) The Secretary may determine that the whole or a part of the residual amount is to be paid to the first person as a single lump sum on a day determined by the Secretary.
(8) The day specified in the determination must occur within the 12‑month period beginning when the person ceased to be subject to the income management regime.
(9) The Secretary must not make a determination under subsection (7) unless:
(a) the lump sum is $200 or less; or
(b) the Secretary is satisfied that there are special circumstances that warrant the making of the determination; or
(c) immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UFA.
(10) If a lump sum is paid under subsection (7):
(a) the Income Management Record is debited by an amount equal to the lump sum; and
(b) the first person’s income management account is debited by an amount equal to the lump sum.
Expense payment
(11) The Secretary may, on behalf of the Commonwealth:
(a) 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; or
(b) 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;
so long as:
(c) the payment is made with the consent of the first person; and
(d) the amount paid by the Secretary does not exceed the residual amount.
(12) The payment under subsection (11) must occur within the 12‑month period beginning when the person ceased to be subject to the income management regime.
(13) If the Secretary makes a payment under subsection (11):
(a) the Income Management Record is debited by an amount equal to the amount paid under subsection (11); and
(b) the first person’s income management account is debited by an amount equal to the amount paid under subsection (11); and
(c) the Secretary is taken to have paid the first person so much of the residual amount as equals the amount paid under subsection (11).
Set‑off
(14) If the first person owes an amount (the debt amount) to the Commonwealth, the Secretary may, with the consent of the first person, set off the whole or part of the residual amount against the whole or a part of the debt amount.
(15) The set‑off under subsection (14) must occur within the 12‑month period beginning when the person ceased to be subject to the income management regime.
(16) If the Secretary sets off an amount under subsection (14):
(a) the Income Management Record is debited by an amount equal to the amount set off; and
(b) the first person’s income management account is debited by an amount equal to the amount set off; and
(c) the Secretary is taken to have paid the first person so much of the residual amount as equals the amount set off.
(16A) Subsection (14) is not limited by Chapter 5 of the 1991 Act also applying in relation to the debt amount.
Tax consequences
(17) If a payment is made under subsection (4), (7) or (11), the payment does not have consequences under the income tax law for the first person.
(18) If the Secretary sets off an amount under subsection (14), the set‑off does not have consequences under the income tax law for the first person.
Interpretation
(19) This section is subject to section 123WJA.
123WJA Ceasing payment of credit balances of income management accounts—person becomes subject to the income management regime again
(1) This section applies if:
(a) at a particular time, a person ceases to be subject to the income management regime; and
(b) at the time referred to in paragraph (a), there is a residual amount in relation to the person; and
(c) at any time after the cessation, the person becomes subject to the income management regime again; and
(d) at the time referred to in paragraph (c), the whole or a part of the residual amount has not been paid to the person in accordance with section 123WJ.
(2) The Secretary may determine that section 123WJ ceases to apply in relation to:
(a) the whole of the residual amount; or
(b) a part of the residual amount specified in the determination.
The determination has effect accordingly.
(3) In this section:
residual amount has the same meaning as in subsection 123WJ(2).
123WK Payment into bank account etc. of credit balances of income management accounts—person ceases to be subject to the income management regime
Scope
(1) This section applies to an amount that is to be paid to a person as:
(a) an instalment under subsection 123WJ(4); or
(b) a lump sum under subsection 123WJ(7).
Payment into bank account etc.
(2) The amount is to be paid to the credit of a bank account kept by the person.
(3) The bank account may be kept by the person either alone or jointly or in common with another person.
(4) The Secretary may direct that the whole or a part of the amount be paid to the person in a different way from that provided for by subsection (2).
(5) If the Secretary gives a direction under subsection (4), the amount is to be paid in accordance with the direction.
123WL Payment of credit balances of income management accounts—person dies
Scope
(1) This section applies if:
(a) an income management account is kept in the name of a person; and
(b) the person dies; and
(c) at the time of the person’s death, the person’s income management account has a credit balance.
Residual amount
(2) For the purposes of this section, the residual amount is an amount equal to the credit balance of the person’s income management account.
Payment of residual amount
(3) The residual amount is to be paid in one or more of the following ways (as determined by the Secretary):
(a) to the legal personal representative of the person;
(b) to one or more other persons whom the Secretary is satisfied have carried out, are carrying out, or will carry out, an appropriate activity in relation to the estate or affairs of the person;
(c) to the credit of a bank account nominated by the person for the purposes of subsection 55(2).
An amount that is to be paid under this subsection is to be paid as a lump sum on a day determined by the Secretary.
(3A) A person may be paid more than one amount under subsection (3).
(5) If a lump sum is paid under subsection (3):
(a) the Income Management Record is debited by an amount equal to the lump sum; and
(b) the person’s income management account is debited by an amount equal to the lump sum.
Tax consequences
(6) If a payment is made under subsection (3), the payment does not have consequences under the income tax law for the person’s estate.
123WM Payment into bank account etc. of credit balances of income management accounts—person dies