(b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage;
of the net amount of the payment (rounded down to the nearest cent).
(4) An instrument under paragraph (3)(b) may specify different percentages depending on one or more of the following:
(a) the category I welfare payments payable to persons subject to the income management regime under section 123UFAA;
(b) the usual place of residence of those persons;
(c) the recognised State/Territory authorities whose officers or employees may give a notice of the kind referred to in paragraph 123UFAA(1)(b).
Subdivision DA—Voluntary income management agreements
123XPA Deductions from category I welfare payments—instalments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime under section 123UFA; and
(b) an instalment of a category I welfare payment is payable to the person.
Deductions from category I welfare payments—instalments
(2) The following provisions have effect:
(a) the Secretary must deduct from the instalment of the category I welfare payment the deductible portion of the instalment;
(b) an amount equal to the deductible portion of the instalment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the instalment is credited to the person’s income management account.
Deductible portion
(3) For the purposes of subsection (2), the deductible portion of an instalment of a category I welfare payment is:
(a) 70%; or
(b) if another percentage (not exceeding 100%) is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the other percentage;
of the net amount of the instalment (rounded down to the nearest cent).
(4) An instrument under paragraph (3)(b) may specify different percentages in relation to different category I welfare payments.
123XPB Deductions from category I welfare payments—lump sums
Scope
(1) This section applies if:
(a) a person is subject to the income management regime under section 123UFA; and
(b) a category I welfare payment is payable to the person otherwise than by instalments.
Deductions from category I welfare payments—lump sums
(2) The following provisions have effect:
(a) the Secretary must deduct from the category I welfare payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
Deductible portion
(3) For the purposes of subsection (2), the deductible portion of a category I welfare payment is:
(a) 100%; or
(b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage;
of the net amount of the payment (rounded down to the nearest cent).
(4) An instrument under paragraph (3)(b) may specify different percentages in relation to different category I welfare payments.
Subdivision DB—Economic support payments, economic security strategy payments, household stimulus payments and cost of living payments
123XPBA Deductions from 2020 economic support payments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime; and
(b) a 2020 economic support payment is payable to the person.
Deductions from 2020 economic support payments
(2) The following provisions have effect:
(a) the Secretary must deduct from the 2020 economic support payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
(3) For the purposes of subsection (2), the deductible portion of a 2020 economic support payment is 100% of the amount of the payment.
123XPBB Deductions from additional economic support payments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime; and
(b) an additional economic support payment is payable to the person.
Deductions from additional economic support payments
(2) The following provisions have effect:
(a) the Secretary must deduct from the additional economic support payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
(3) For the purposes of subsection (2), the deductible portion of an additional economic support payment is 100% of the amount of the payment.
123XPC Deductions from economic security strategy payments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime; and
(b) an economic security strategy payment is payable to the person.
(2) However, this section does not apply in relation to an economic security strategy payment under Part VIIG of the Veterans’ Entitlements Act if the person is subject to the income management regime because of section 123UF.
Deductions from economic security strategy payments
(3) The following provisions have effect:
(a) the Secretary must deduct from the economic security strategy payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
(4) For the purposes of subsection (3), the deductible portion of an economic security strategy payment is 100% of the amount of the payment.
123XPD Deductions from household stimulus payments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime; and
(b) a household stimulus payment is payable to the person.
Deductions from household stimulus payments
(2) The following provisions have effect:
(a) the Secretary must deduct from the household stimulus payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
(3) For the purposes of subsection (2), the deductible portion of a household stimulus payment is 100% of the amount of the payment.
123XPE Deductions from 2022 cost of living payment
Scope
(1) This section applies if:
(a) a person is subject to the income management regime; and
(b) a 2022 cost of living payment is payable to the person.
Deductions from 2022 cost of living payment
(2) The following provisions have effect:
(a) the Secretary must deduct from the 2022 cost of living payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
(3) For the purposes of subsection (2), the deductible portion of a 2022 cost of living payment is 100% of the amount of the payment.
Subdivision DC—Relocation scholarship payments
123XPG Deductions from relocation scholarship payments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime; and
(b) a relocation scholarship payment is payable to the person.
Deductions from payment
(2) The following provisions have effect:
(a) the Secretary must deduct from the relocation scholarship payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
(3) For the purposes of subsection (2), the deductible portion of a relocation scholarship payment is:
(a) 100% of the amount of the payment; or
(b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage of the amount of the payment.
Subdivision DE—Clean energy income‑managed payments
123XPJ Deductions from clean energy income‑managed payments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime; and
(b) a clean energy income‑managed payment is payable to the person.
Deductions from clean energy income‑managed payments
(2) The following provisions have effect:
(a) the Secretary must deduct from the payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
(3) For the purposes of subsection (2), the deductible portion of a clean energy income‑managed payment is 100% of the amount of the payment.
Subdivision DF—ETR income‑managed payments
123XPK Deductions from ETR income‑managed payments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime; and
(b) an ETR income‑managed payment is payable to the person.
Deductions from ETR income‑managed payments
(2) The following provisions have effect:
(a) the Secretary must deduct from the payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Income Management Record;
(c) an amount equal to the deductible portion of the payment is credited to the person’s income management account.
(3) For the purposes of subsection (2), the deductible portion of an ETR income‑managed payment is 100% of the amount of the payment.
Subdivision E—Deducted amount taken to have been paid
123XQ Deducted amount taken to have been paid
Scope
(1) This section applies if an amount is deducted under this Division from an instalment or payment that is payable to a person.
Deducted amount taken to have been paid
(2) The deducted amount is taken, for the purposes of:
(a) the income tax law; and
(b) this Act (other than this Part); and
(c) the 1991 Act; and
(d) the Family Assistance Act; and
(e) the Family Assistance Administration Act; and
(f) the Student Assistance Act 1973; and
(g) the Veterans’ Entitlements Act; and
(h) the Child Support (Assessment) Act 1989;
to have been paid to the person at whichever of the following times is applicable:
(i) if the deducted amount was equal to 100% of the net amount of the instalment or payment—when the instalment or payment would have been paid if the deduction had not been made;
(j) otherwise—when the instalment or payment was paid.
Division 6—Debits from income management accounts
Subdivision A—General
123YA Priority needs—application of income management account
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.
Priority needs
(2) If the Secretary is aware of any unmet priority needs of:
(a) the first person; or
(b) the first person’s children (if any); or
(c) the first person’s partner (if any); or
(d) any other dependants of the first person;
the Secretary must, within a reasonable period after becoming aware of those priority needs, take appropriate action under Subdivision B directed towards meeting those priority needs.
(3) If:
(a) the Secretary is satisfied that the current or future balance of the first person’s income management account exceeds what is reasonably required to meet the current, and reasonably foreseeable, priority needs of:
(i) the first person; and
(ii) the first person’s children (if any); and
(iii) the first person’s partner (if any); and
(iv) any other dependants of the first person; and
(b) the first person requests the Secretary to take action under this Division that:
(i) is not directed towards meeting the current, and reasonably foreseeable, priority needs mentioned in paragraph (a); and
(ii) would result in the first person’s income management account being debited by a particular amount; and
(c) the Secretary is satisfied that the debit would not result in the current or future balance of the first person’s income management account falling below what is reasonably required to meet the current, and reasonably foreseeable, priority needs mentioned in paragraph (a);
the Secretary must not unreasonably refuse the request.
123YB Secretary must have regard to the best interests of children
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 person has one or more children.
Secretary must have regard to the best interests of children
(2) In deciding whether to take action under this Division that results in an amount being debited from the first person’s income management account, the Secretary must have regard to:
(a) the best interests of the first person’s children; and
(b) such other matters (if any) as the Secretary considers relevant.
Subdivision B—Restricted debits
123YC Vouchers—general
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 does not have a Part 3B payment nominee.
Vouchers
(2) The Secretary may, on behalf of the Commonwealth:
(a) give the first person a voucher that:
(i) has a face value of a particular amount; and
(ii) enables the first person to acquire goods or services; or
(b) with the consent of the first person, give a third person a voucher that:
(i) has a face value of a particular amount; and
(ii) enables the third person to acquire goods or services;
so long as the face value of the voucher does not exceed the credit balance of the first person’s income management account.
(3) A voucher may be for limited goods or services.
Income Management Record to be debited
(4) If the first person or a third person is given a voucher under subsection (2), the Income Management Record is debited by an amount equal to the face value of the voucher.
First person’s income management account to be debited
(5) If the first person or a third person is given a voucher under subsection (2), the first person’s income management account is debited by an amount equal to the face value of the voucher.
Criteria
(6) The Secretary must not give the first person or a third person a voucher under subsection (2) if the Secretary is satisfied that any of the relevant goods or services are excluded goods or excluded services.
Tax consequences
(7) If the first person or a third person is given a voucher under subsection (2), the giving of the voucher does not have any consequences under the income tax law for the first person or the third person, as the case may be.
123YD Vouchers—Part 3B payment nominee
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.
Vouchers
(2) The Secretary may, on behalf of the Commonwealth:
(a) give the Part 3B payment nominee a voucher that:
(i) has a face value of a particular amount; and
(ii) enables the Part 3B payment nominee to acquire goods or services; or
(b) with the consent of the Part 3B payment nominee, give a third person a voucher that:
(i) has a face value of a particular amount; and
(ii) enables the third person to acquire goods or services;
so long as the face value of the voucher does not exceed the credit balance of the first person’s income management account.
(3) A voucher may be for limited goods or services.
Income Management Record to be debited
(4) If the Part 3B payment nominee or a third person is given a voucher under subsection (2), the Income Management Record is debited by an amount equal to the face value of the voucher.
First person’s income management account to be debited
(5) If the Part 3B payment nominee or a third person is given a voucher under subsection (2), the first person’s income management account is debited by an amount equal to the face value of the voucher.
Criteria
(6) The Secretary must not give the Part 3B payment nominee or a third person a voucher under subsection (2) if the Secretary is satisfied that any of the relevant goods or services are excluded goods or excluded services.
Tax consequences
(7) If the Part 3B payment nominee or a third person is given a voucher under subsection (2), the giving of the voucher does not have any consequences under the income tax law for the Part 3B payment nominee, the first person or the third person.
123YE Stored value cards—general
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 does not have a Part 3B payment nominee.
Stored value cards
(2) The Secretary may, on behalf of the Commonwealth:
(a) give the first person a stored value card that enables the first person to acquire goods or services, so long as no part of the monetary value stored on the card may be withdrawn in cash; or
(c) increase the monetary value stored on a stored value card held by the first person, so long as:
(i) no part of the monetary value stored on the card may be withdrawn in cash; and