Commonwealth: Social Security and Other Legislation Amendment (Welfare Payment Reform) Act 2007 (Cth)

Social Security and Other Legislation Amendment (Welfare Payment Reform) Act 2007 Act No. 130 of 2007 as amended This compilation was prepared on 7 January 2011 taking into account amendments up to Act No. 93 of 2010 The text of any of those amendments not in force on that date is appended in the Notes section The operation of amendments that have been incorporated may be affected by application provisions that are set out in the Notes section Prepared by the Office of Legislative Drafting and Publishing, Attorney-General's Department, Canberra Contents 1 Short title [see Note 1] 2 Commencement [see Note 1] 3 Schedule(s) Schedule 1—Income management regime A New Tax System (Family Assistance) (Administration) Act 1999 Social Security Act 1991 Social Security (Administration) Act 1999 Veterans' Entitlements Act 1986 Schedule 2—Baby bonus A New Tax System (Family Assistance) Act 1999 A New Tax System (Family Assistance) (Administration) Act 1999 Schedule 3—Northern Territory CDEP transition payment Income Tax Assessment Act 1936 Social Security Act 1991 Social Security (Administration) Act 1999 Notes An Act to amend the social security law, and for other purposes 1 Short title [see Note 1] This Act may be cited as the Social Security and Other Legislation Amendment (Welfare Payment Reform) Act 2007. 2 Commencement [see Note 1] This Act commences on the day after it receives the Royal Assent. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. Schedule 1—Income management regime A New Tax System (Family Assistance) (Administration) Act 1999 1 At the end of subsection 66(2) Add: ; and (g) Part 3B of the Social Security (Administration) Act 1999. 2 After subsection 219TE(1) Insert: (1A) If a person who is a nominee by virtue of an appointment under section 219TB becomes subject to the income management regime under section 123UC of the Social Security (Administration) Act 1999, the Secretary must, as soon as practicable, cancel the appointment. Social Security Act 1991 3 Subsection 1061EK(1) After "238", insert "and Part 3B". Social Security (Administration) Act 1999 4 After paragraph 60(2)(a) Insert: (aa) Part 3B of this Act; and 5 Subsection 67(2) Omit "either or both", substitute "any or all". 6 At the end of subsection 67(2) Add: ; (c) give the Department a statement about a matter that might affect the operation, or prospective operation, of Part 3B in relation to the person. 7 Subsection 67(5) Repeal the subsection, substitute: (5) An event or change of circumstances is not to be specified in a notice under this section unless the occurrence of the event or change of circumstances might: (a) affect the payment of the social security payment or the person's qualification for the concession card, as the case requires; or (b) affect the operation, or prospective operation, of Part 3B in relation to the person. 8 Subsection 68(2) Omit "either or both", substitute "any or all". 9 At the end of subsection 68(2) Add: ; (c) give the Department one or more statements about a matter that might affect the operation, or prospective operation, of Part 3B in relation to the person. 10 Subsection 68(5) Repeal the subsection, substitute: (5) An event or change of circumstances is not to be specified in a notice under this section unless the occurrence of the event or change of circumstances might: (a) affect the payment of the social security payment or the person's qualification for the concession card, as the case requires; or (b) affect the operation, or prospective operation, of Part 3B in relation to the person. 11 After section 70 Insert: 70A Person who is subject to the income management regime etc. Scope (1) This section applies to a person if: (a) the person is subject to the income management regime (within the meaning of Part 3B); or (b) the Secretary is satisfied that it is likely that the person will become subject to the income management regime (within the meaning of Part 3B). Requirement (2) The Secretary may give the person a notice that requires the person to do either or both of the following: (a) inform the Department if: (i) a specified event or change of circumstances occurs; or (ii) the person becomes aware that a specified event or change of circumstances is likely to occur; (b) give the Department one or more statements about a matter that might affect the operation, or prospective operation, of Part 3B in relation to the person. (3) An event or change of circumstances is not to be specified in a notice under this section unless the occurrence of the event or change of circumstances might affect the operation, or prospective operation, of Part 3B in relation to the person. 12 At the end of subsection 72(3) Add: or (e) in the case of a notice under section 70A that requires the giving of information mentioned in paragraph 70A(2)(a)—be the period of 14 days after: (i) the day on which the event or change of circumstances occurs; or (ii) the day on which the person becomes aware that the event or change of circumstances is likely to occur; as the case may be; or (f) in the case of a notice under section 70A that requires the giving of a statement mentioned in paragraph 70A(2)(b)—end not earlier than 14 days after the day on which the notice is given. 13 Paragraph 72(4)(a) Omit "or 68", substitute ", 68 or 70A". 14 Subsections 72(6) and (7) Omit "or 68", substitute ", 68 or 70A". 15 Subsection 74(1) Omit "or 70", substitute ", 70 or 70A". 16 After subsection 123E(1) Insert: (1A) If a person who is a nominee by virtue of an appointment under section 123B becomes subject to the income management regime under section 123UC, the Secretary must, as soon as practicable, revoke the appointment. 17 After Part 3A Insert: Part 3B—Income management regime Division 1—Introduction 123TA Simplified outline The following is a simplified outline of this Part: • This Part sets up an income management regime for recipients of certain welfare payments. • A person may become subject to the income management regime because: (a) the person lives in a declared relevant Northern Territory area; or (b) a child protection officer of a State or Territory requires the person to be subject to the income management regime; or (c) the person, or the person's partner, has a child who does not meet school enrolment requirements; or (d) the person, or the person's partner, has a child who has unsatisfactory school attendance; or (e) the Queensland Commission requires the person to be subject to the income management regime. • A person who is subject to the income management regime will have an income management account. • Amounts will be deducted from the person's welfare payments and credited to the person's income management account. • Amounts will be debited from the person's income management account for the purposes of enabling the Secretary to take action directed towards meeting the priority needs of: (a) the person; and (b) the person's partner; and (c) the person's children; and (d) any other dependants of the person. 123TB Objects The objects of this Part are as follows: (a) to promote socially responsible behaviour, particularly in relation to the care and education of children; (b) to set aside the whole or a part of certain welfare payments; (c) to ensure that the amount set aside is directed to meeting the priority needs of: (i) the recipient of the welfare payment; and (ii) the recipient's partner; and (iii) the recipient's children; and (iv) any other dependants of the recipient. 123TC Definitions In this Part: account statement, in relation to an income management account, means a statement that sets out: (a) the amounts credited to the income management account during a particular period; and (b) the amounts debited from the income management account during that period; and (c) the balance of the income management account as at the end of that period. acquire has the same meaning as in the Trade Practices Act 1974. alcoholic beverage means a beverage that contains more than 0.1% by volume of ethyl alcohol. applicable school period has the meaning given by section 123UI. category A welfare payment means: (a) a social security benefit; or (b) a social security pension; or (c) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as living allowance. category B welfare payment means: (a) a category A welfare payment; or (b) double orphan pension; or (c) carer allowance; or (d) mobility allowance; or (e) pensioner education supplement; or (f) telephone allowance under Part 2.25 of the 1991 Act; or (g) utilities allowance under Part 2.25A of the 1991 Act; or (h) family tax benefit by instalment (other than arrears of family tax benefit by instalment) under the Family Assistance Administration Act; or (i) a distance education payment under the scheme known as the Assistance for Isolated Children Scheme, where the payment relates to a child or children at a Homelands Learning Centre; or (j) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as pensioner education supplement; or (k) a social security bereavement payment; or (l) a Northern Territory CDEP transition payment; but does not include: (m) an advance payment under Part 2.22 of the 1991 Act; or (n) an advance pharmaceutical allowance under Part 2.23 of the 1991 Act; or (o) a mobility allowance advance under section 1045 of the 1991 Act. category C welfare payment means: (a) an advance payment under Part 2.22 of the 1991 Act; or (b) an advance pharmaceutical allowance under Part 2.23 of the 1991 Act; or (c) a mobility allowance advance under section 1045 of the 1991 Act; or (d) arrears of family tax benefit by instalment under the Family Assistance Administration Act; or (e) family tax benefit for a past period under the Family Assistance Administration Act; or (f) family tax benefit by single payment/in substitution because of the death of another individual under the Family Assistance Administration Act; or (g) family tax benefit advance under the Family Assistance Administration Act; or (h) baby bonus under the Family Assistance Act; or (i) maternity immunisation allowance under the Family Assistance Act. category D welfare payment means: (a) a service pension; or (b) income support supplement; or (c) Defence Force Income Support Allowance. category F welfare payment means: (a) family tax benefit by instalment (other than arrears of family tax benefit by instalment) under the Family Assistance Administration Act; or (b) double orphan pension; or (c) carer allowance; or (d) a distance education payment under the scheme known as the Assistance for Isolated Children Scheme, where the payment relates to a child or children at a Homelands Learning Centre. category G welfare payment means: (a) arrears of family tax benefit by instalment under the Family Assistance Administration Act; or (b) family tax benefit for a past period under the Family Assistance Administration Act; or (c) family tax benefit by single payment/in substitution because of the death of another individual under the Family Assistance Administration Act; or (d) family tax benefit advance under the Family Assistance Administration Act; or (e) baby bonus under the Family Assistance Act; or (f) maternity immunisation allowance under the Family Assistance Act. category H welfare payment means: (a) a social security benefit; or (b) a social security pension; or (c) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as living allowance; or (d) a service pension; or (e) income support supplement; or (f) Defence Force Income Support Allowance. category I welfare payment means: (a) a category H welfare payment; or (b) double orphan pension; or (c) family tax benefit under the Family Assistance Act; or (d) family tax benefit advance under the Family Assistance Administration Act; or (e) baby bonus under the Family Assistance Act; or (f) maternity immunisation allowance under the Family Assistance Act; or (g) carer allowance; or (h) mobility allowance; or (i) pensioner education supplement; or (j) telephone allowance under Part 2.25 of the 1991 Act; or (k) telephone allowance under Part VIIB of the Veterans' Entitlements Act; or (l) utilities allowance under Part 2.25A of the 1991 Act; or (m) utilities allowance under Part VIIAC of the Veterans' Entitlements Act; or (n) a distance education payment under the scheme known as the Assistance for Isolated Children Scheme, where the payment relates to a child or children at a Homelands Learning Centre; or (o) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as pensioner education supplement; or (p) a social security bereavement payment; or (q) a veterans' entitlement bereavement payment; or (r) a Northern Territory CDEP transition payment; or (s) an advance payment under Part 2.22 of the 1991 Act; or (t) an advance pharmaceutical allowance under Part 2.23 of the 1991 Act; or (u) a mobility allowance advance under section 1045 of the 1991 Act; or (v) an advance payment under Part IVA or VIIA of the Veterans' Entitlements Act. category P welfare payment means: (a) a social security benefit; or (b) a social security pension (other than an age pension or a carer payment); or (c) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as living allowance. category Q welfare payment means: (a) a category P welfare payment; or (b) carer allowance; or (c) mobility allowance; or (d) pensioner education supplement; or (e) telephone allowance under Part 2.25 of the 1991 Act; or (f) utilities allowance under Part 2.25A of the 1991 Act; or (g) a distance education payment under the scheme known as the Assistance for Isolated Children Scheme, where the payment relates to a child or children at a Homelands Learning Centre; or (h) a social security bereavement payment (other than a social security bereavement payment in relation to an age pension or a carer payment); or (i) a payment under the scheme known as the ABSTUDY scheme that includes an amount identified as pensioner education supplement; or (j) an advance payment under Part 2.22 of the 1991 Act (other than an advance payment of an age pension or a carer payment); or (k) an advance pharmaceutical allowance under Part 2.23 of the 1991 Act (other than an advance pharmaceutical allowance in relation to an age pension or a carer payment); or (l) a mobility allowance advance under section 1045 of the 1991 Act; or (m) double orphan pension; or (n) family tax benefit under the Family Assistance Act; or (o) family tax benefit advance under the Family Assistance Administration Act; or (p) baby bonus under the Family Assistance Act; or (q) maternity immunisation allowance under the Family Assistance Act. category R welfare payment means: (a) age pension; or (b) carer payment; or (c) a service pension; or (d) income support supplement; or (e) Defence Force Income Support Allowance. category S welfare payment means: (a) family tax benefit under the Family Assistance Act; or (b) family tax benefit advance under the Family Assistance Administration Act; or (c) baby bonus under the Family Assistance Act; or (d) maternity immunisation allowance under the Family Assistance Act; or (e) double orphan pension; or (f) carer allowance; or (g) a distance education payment under the scheme known as the Assistance for Isolated Children Scheme, where the payment relates to a child or children at a Homelands Learning Centre. Centrelink means the Commonwealth Services Delivery Agency. child of a person means: (a) a dependent child of the person; or (b) an FTB child of the person; or (c) on or after 1 July 2008—a regular care child of the person. This definition does not apply to: (d) the definition of child protection officer in this section; or (e) Division 2; or (f) subsection 123ZE(2); or (g) section 123ZEB. child protection officer means an officer or employee of a State or Territory who has functions, powers or duties in relation to the care, protection or welfare of children. declared child protection State or Territory has the meaning given by section 123TF. declared primary school area has the meaning given by subsection 123TG(1). declared relevant Northern Territory area has the meaning given by section 123TE. declared secondary school area has the meaning given by subsection 123TG(3). designated nominee of a person (the first person) means: (a) a payment nominee of the first person; or (b) a person to whom instalments of youth allowance of the first person are to be paid in accordance with subsection 45(1). eligible care child has the meaning given by section 123UH. eligible care period has the meaning given by section 123UJ. eligible recipient has the meaning given by section 123TK. excluded goods has the meaning given by subsection 123TI(1). excluded payment nominee means: (a) the Public Trustee (however described) of a State or Territory; or (b) a payment nominee who is not subject to the income management regime. excluded service has the meaning given by subsection 123TI(2). exempt Northern Territory person has the meaning given by section 123UG. family law order means: (a) a parenting order within the meaning of section 64B of the Family Law Act 1975; or (b) a family violence order within the meaning of section 4 of that Act; or (c) a State child order registered under section 70D of that Act; or (d) an overseas child order registered under section 70G of that Act. Finance Minister has the same meaning as in the Financial Management and Accountability Act 1997. gambling means a service provided to a person in the capacity of a customer of a gambling service (within the meaning of the Interactive Gambling Act 2001). goods has the same meaning as in the Trade Practices Act 1974. income management account means a notional account kept in accordance with section 123WA. income tax law has the same meaning as in the Income Tax Assessment Act 1997. net amount of an instalment or payment means: (a) if a deduction is made from, or an amount is set off against, the instalment or payment under: (i) section 61 or 238 of this Act; or (ii) section 1231 of the 1991 Act; or (iii) section 84, 84A, 92, 92A, 225, 226 or 227 of the Family Assistance Administration Act; or (iv) section 50A, 50B, 58J, 79L, 122B, 122D, 205 or 205AA of the Veterans' Entitlements Act; so much of the instalment or payment as remains after the deduction is made or the set‑off occurs, as the case may be; or (b) in any other case—the amount of the instalment or payment. non‑alcoholic beverage means a beverage other than an alcoholic beverage. parenting plan has the same meaning as in the Family Law Act 1975. payment nominee means: (a) a person who is, by virtue of an appointment in force under section 123B of this Act or section 219TB of the Family Assistance Administration Act, the payment nominee of another person; or (b) a person to whom payment of another person's service pension is made by virtue of an approval in force under section 58D of the Veterans' Entitlements Act; or (c) a person to whom payment of another person's service pension is made by virtue of an appointment in force under section 202 of the Veterans' Entitlements Act. pornographic material has the meaning given by section 123TJ. priority needs has the meaning given by section 123TH. quarter means a period of 3 months beginning on 1 January, 1 April, 1 July or 1 October. Queensland Commission means a body or agency that: (a) is established by a law of Queensland; and (b) is specified in a legislative instrument made by the Minister for the purposes of this paragraph. registered parenting plan has the same meaning as in the Family Law Act 1975. relevant Northern Territory area has the meaning given by section 123TD. service has the same meaning as in the Trade Practices Act 1974. social security bereavement payment means a payment under any of the following provisions of the 1991 Act: (a) Division 9 of Part 2.2; (b) Division 10 of Part 2.3; (c) Subdivision B of Division 9 of Part 2.4; (d) Subdivision B or D of Division 9 of Part 2.5; (e) Division 9 of Part 2.7; (f) Division 9 of Part 2.8; (g) Subdivision B or C of Division 9 of Part 2.10; (h) Subdivision A of Division 10 of Part 2.11; (i) Division 10 of Part 2.11A; (j) Subdivision AA of Division 9 of Part 2.12; (k) Subdivision C of Division 11 of Part 2.12B; (l) Division 9 of Part 2.14; (m) Division 9 of Part 2.15; (n) Subdivision C of Division 9 of Part 2.15A; (o) Division 10 of Part 2.16; (p) Subdivision C of Division 10 of Part 2.19; (q) Subdivision B of Division 10 of Part 2.20. Special Account means the Income Management Special Account established by section 123VA. stored value card includes a portable device that is: (a) capable of storing monetary value in a form other than physical currency; and (b) of a kind specified in a legislative instrument made by the Minister for the purposes of this paragraph. subject to the income management regime has the meaning given by section 123UB, 123UC, 123UD, 123UE or 123UF. supply has the same meaning as in the Trade Practices Act 1974. tobacco product has the same meaning as in the Tobacco Advertising Prohibition Act 1992. unsatisfactory school attendance situation has the meaning given by section 123UK. veterans' entitlement bereavement payment means: (a) a bereavement payment within the meaning of subsection 53K(3) of the Veterans' Entitlements Act; or (b) a bereavement payment paid under subsection 53L(4) of that Act; or (c) an amount paid under subsection 53Q(1) of that Act; or (d) a bereavement payment within the meaning of subsection 53T(1) of that Act. 123TD Relevant Northern Territory area For the purposes of this Part, each of the following areas in the Northern Territory is a relevant Northern Territory area: (a) each prescribed area within the meaning of the Northern Territory National Emergency Response Act 2007; (b) the place known as Finke or Aputula; (c) the place known as Kalkarindji or Wave Hill. 123TE Declared relevant Northern Territory area (1) The Minister may, by writing, determine that a specified relevant Northern Territory area is a declared relevant Northern Territory area for the purposes of this Part. (2) A determination under subsection (1) must specify an expiry date for the determination. (3) An expiry date must occur in the 12‑month period beginning when the determination was made. (4) Subsection (3) has effect subject to subsection (7). (5) In deciding whether to make a determination under subsection (1), the Minister must have regard to the following matters: (a) the availability in the relevant Northern Territory area of information setting out: (i) the proposal to make the determination; and (ii) an explanation, in summary form, of the consequences of the making of the determination for people who may become subject to the income management regime under section 123UB; (b) the opportunities that have been made available to people in the area to discuss: (i) the proposal to make the determination; and (ii) the consequences of the making of the determination for people who may become subject to the income management regime under section 123UB; with employees or officers of the Commonwealth; (c) the opportunities that have been made available to potentially affected people in the area to: (i) discuss their circumstances with officers of Centrelink; and (ii) give Centrelink information about their expenditure; (d) the extent to which it will be feasible for the Secretary to take action under Division 6 in relation to people who may become subject to the income management regime under section 123UB; (e) such other matters (if any) as the Minister considers relevant. (6) A contravention of subsection (5) does not affect the validity of a determination under subsection (1). Extension of expiry date (7) The Minister may, by writing, extend or further extend the expiry date of a specified determination made under subsection (1), so long as the extension or further extension is for a period of not more than 12 months. Duration of determination (8) Unless sooner revoked, a determination under subsection (1) ceases to be in force on the expiry date of the determination. Fresh determination (9) If a determination under subsection (1) expires, this Act does not prevent the Minister from making a fresh determination under subsection (1) relating to the same relevant Northern Territory area as the expired determination. Revocation (10) If a determination is in force under subsection (1), the Minister may, by writing, revoke the determination. (11) Subsection (10) does not limit the application of subsection 33(3) of the Acts Interpretation Act 1901 to other instruments under this Act. Interlocutory orders (12) A court must not make an interlocutory order suspending the operation of a decision under this section unless the court is satisfied that there are exceptional circumstances. Legislative instrument (13) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the determination. (14) An instrument under subsection (7) or (10) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the instrument. 123TF Declared child protection State or Territory The Minister may, by legislative instrument, determine that a specified State or Territory is a declared child protection State or Territory for the purposes of this Part. 123TG Declared primary school area and declared secondary school area Declared primary school area (1) The Minister may, by legislative instrument, determine that: (a) a specified State; or (b) a specified Territory; or (c) a specified area; is a declared primary school area for the purposes of this Part. (2) This Part does not prevent an area specified under paragraph (1)(c) from being described as the area within the boundary of premises occupied by a particular primary school. Declared secondary school area (3) The Minister may, by legislative instrument, determine that: (a) a specified State; or (b) a specified Territory; or (c) a specified area; is a declared secondary school area for the purposes of this Part. (4) This Part does not prevent an area specified under paragraph (3)(c) from being described as the area within the boundary of premises occupied by a particular secondary school. 123TH Priority needs (1) For the purposes of this Part, a person's priority needs are as follows: (a) food; (b) non‑alcoholic beverages; (c) clothing; (d) footwear; (e) basic personal hygiene items; (f) basic household items; (g) housing, including: (i) rent; and (ii) home loan repayments; and (iii) repairs; and (iv) maintenance; (h) household utilities, including: (i) electricity; and (ii) gas; and (iii) water; and (iv) sewerage; and (v) garbage collection; and (vi) fixed‑line telephone; (i) rates and land tax; (j) health, including: (i) medical, nursing, dental or other health services; and (ii) pharmacy items; and (iii) the supply, alteration or repair of artificial teeth; and (iv) the supply, alteration or repair of an artificial limb (or part of a limb), artificial eye or hearing aid; and (v) the supply, alteration or repair of a medical or surgical appliance; and (vi) the testing of eyes; and (vii) the prescribing of spectacles or contact lenses; and (viii) the supply of spectacles or contact lenses; and (ix) the management of a disability; (k) child care and development; (l) education and training; (m) items required for the purposes of the person's employment, including: (i) a uniform or other occupational clothing; and (ii) protective footwear; and (iii) tools of trade; (n) funerals; (o) public transport services, where the services are used wholly or partly for purposes in connection with any of the above needs; (p) the acquisition, repair, maintenance or operation of: (i) a motor vehicle; or (ii) a motor cycle; or (iii) a bicycle; that is used wholly or partly for purposes in connection with any of the above needs; (q) any thing specified in a legislative instrument made by the Minister for the purposes of this paragraph. (2) For the purposes of this Part, excluded goods or excluded services are not priority needs. 123TI Excluded goods and excluded services Excluded goods (1) Each of the following goods are excluded goods for the purposes of this Part: (a) alcoholic beverages; (b) tobacco products; (c) pornographic material; (d) goods specified in a legislative instrument made by the Minister for the purposes of this paragraph. Excluded services (2) Each of the following services is an excluded service for the purposes of this Part: (a) gambling; (b) a service specified in a legislative instrument made by the Minister for the purposes of this paragraph. 123TJ Pornographic material (1) For the purposes of this Part, pornographic material is: (a) a publication, film or computer game classified RC; or (b) an unclassified publication, film or computer game that contains material that would be likely to cause it to be classified RC; or (c) a publication classified Category 1 restricted or Category 2 restricted; or (d) an unclassified publication that contains material that would be likely to cause it to be classified Category 1 restricted or Category 2 restricted; or (e) a film classified X 18+; or (f) an unclassified film that contains material that would be likely to cause it to be classified X 18+. (2) An expression used in subsection (1) and in the Classification (Publications, Films and Computer Games) Act 1995 has the same meaning in subsection (1) as it has in that Act. 123TK Eligible recipient For the purposes of this Part, if a claim by a person for a particular payment is granted, the person is an eligible recipient of the payment during the period: (a) beginning on: (i) if the payment is in relation to a service pension, income support supplement or Defence Force Income Support Allowance—the provisional commencement day (within the meaning of the Veterans' Entitlements Act) for the payment; or (ii) in any other case—the start day for the payment; and (b) ending when the payment is cancelled. Division 2—Persons subject to the income management regime Subdivision A—Situations in which a person is subject to the income management regime 123UA Persons subject to the income management regime This Subdivision sets out the various situations in which a person is subject to the income management regime. 123UB Persons subject to the income management regime—relevant Northern Territory area (1) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person, or the person's partner, is an eligible recipient of a category A welfare payment; and (b) the person was physically present overnight in a relevant Northern Territory area at any time during the period: (i) beginning at the start of 21 June 2007; and (ii) ending at the end of the most recent instalment period in relation to the category A welfare payment or payments; and (c) at the test time, the relevant Northern Territory area is a declared relevant Northern Territory area; and (d) at the test time, the person is not an exempt Northern Territory person in relation to the relevant Northern Territory area (see section 123UG); and (e) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (f) at the test time, the person is not subject to the income management regime under section 123UC, 123UD, 123UE or 123UF; and (g) the test time occurs in the 5‑year period that began at the commencement of this section. (2) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, neither the person, nor the person's partner, is an eligible recipient of a category A welfare payment; and (b) at the test time, the person, or the person's partner, is an eligible recipient of a category D welfare payment; and (c) the person, or the person's partner, is entitled to be paid family tax benefit under the Family Assistance Act; and (d) the person was physically present overnight in a relevant Northern Territory area at any time during the period: (i) beginning at the start of 21 June 2007; and (ii) ending at the end of the most recent instalment period in relation to the category D welfare payment or payments; and (e) at the test time, the relevant Northern Territory area is a declared relevant Northern Territory area; and (f) at the test time, the person is not an exempt Northern Territory person in relation to the relevant Northern Territory area (see section 123UG); and (g) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (h) at the test time, the person is not subject to the income management regime under section 123UC, 123UD, 123UE or 123UF; and (i) the test time occurs in the 5‑year period that began at the commencement of this section. (3) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is not subject to the income management regime under any other provision of this Subdivision; and (b) at the test time, the person has a payment nominee; and (c) at the test time, the payment nominee is subject to the income management regime under subsection (1) or (2). 123UC Persons subject to the income management regime—child protection For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person, or the person's partner, is an eligible recipient of a category H welfare payment; and (b) before the test time, a child protection officer of a State or Territory gave the Secretary a written notice requiring that the person be subject to the income management regime under this section; and (c) the notice was given: (i) under a law (whether written or unwritten) in force in a State or Territory (other than a law of the Commonwealth); or (ii) in the exercise of the executive power of a State or Territory; and (d) at the test time, the notice had not been withdrawn or revoked; and (e) at the test time, the State or Territory is a declared child protection State or Territory; and (f) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (g) at the test time, the person is not subject to the income management regime under section 123UF. 123UD Persons subject to the income management regime—school enrolment (1) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person, or the person's partner, is an eligible recipient of a category H welfare payment; and (b) at the test time, the person, or the person's partner, has an eligible care child; and (c) under a law of a State or Territory, the eligible care child is required to be enrolled at school; and (d) the Secretary is satisfied that it is appropriate for the eligible care child to be enrolled at: (i) a primary school in a declared primary school area; or (ii) a secondary school in a declared secondary school area; and (e) at the test time, the eligible care child is not enrolled at: (i) if subparagraph (d)(i) applies—a primary school in the declared primary school area; or (ii) if subparagraph (d)(ii) applies—a secondary school in the declared secondary school area; and (f) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (g) at the test time, the person is not subject to the income management regime under section 123UC or 123UF; and (h) at the test time, a determination under subsection (2) is not in force in relation to the person; and (i) such other conditions (if any) as are specified in a legislative instrument made by the Minister for the purposes of this paragraph are satisfied. (2) The Secretary may, by writing, determine that a person is exempt from subsection (1). (3) In making a determination under subsection (2), the Secretary must comply with any principles set out in a legislative instrument made by the Minister for the purposes of this subsection. (4) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is not subject to the income management regime under any other provision of this Subdivision; and (b) at the test time, the person has a payment nominee; and (c) at the test time, the payment nominee is subject to the income management regime under subsection (1). Documentary evidence (5) If a person, or the person's partner, has an eligible care child, the Secretary may, by written notice given to the person, request the person to give the Secretary, within a period (the compliance period) specified in the notice, documentary evidence of the eligible care child's enrolment at a school during a specified applicable school period. (6) A notice under subsection (5) must set out the effect of subsection (9). (7) The compliance period specified in a notice under subsection (5) must not be shorter than 7 days. (8) The Secretary may extend the compliance period specified in a notice under subsection (5). (9) If: (a) a person is given a notice under subsection (5); and (b) the person does not comply with the notice; the Secretary may determine that subsection (1) has effect as if the eligible care child was not enrolled at any school at any time during the applicable school period specified in the notice. (10) This Part does not prevent a notice from being characterised as: (a) a notice under subsection (5); and (b) a notice under another provision of a law of the Commonwealth. 123UE Persons subject to the income management regime—school attendance (1) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person, or the person's partner, is an eligible recipient of a category H welfare payment; and (b) at the test time, an unsatisfactory school attendance situation exists in relation to a child; and (c) throughout a period that ended before the unsatisfactory school attendance situation came into existence, the child was an eligible care child of: (i) the person; or (ii) the person's partner; and (d) at the test time, the child is enrolled at a school; and (e) if the school is a primary school—at the test time, the school is in a declared primary school area; and (f) if the school is a secondary school—at the test time, the school is in a declared secondary school area; and (g) before the test time, the person, or the person's partner, had been given a formal warning under section 123UL; and (h) the whole or a part of an applicable school period in relation to the child occurred in the period: (i) beginning when the formal warning was given; and (ii) ending at the test time; and (i) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (j) at the test time, the person is not subject to the income management regime under section 123UC or 123UF; and (k) at the test time, a determination under subsection (2) is not in force in relation to the person; and (l) such other conditions (if any) as are specified in a legislative instrument made by the Minister for the purposes of this paragraph are satisfied. (2) The Secretary may, by writing, determine that a person is exempt from subsection (1). (3) In making a determination under subsection (2), the Secretary must comply with any principles set out in a legislative instrument made by the Minister for the purposes of this subsection. (4) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is not subject to the income management regime under any other provision of this Subdivision; and (b) at the test time, the person has a payment nominee; and (c) at the test time, the payment nominee is subject to the income management regime under subsection (1). 123UF Persons subject to the income management regime—Queensland Commission (1) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person, or the person's partner, is an eligible recipient of a category P welfare payment; and (b) before the test time, the Queensland Commission gave the Secretary a written notice requiring that the person be subject to the income management regime under this subsection; and (c) the notice was given under a law of Queensland; and (d) the notice was not given in such circumstances (if any) as are specified in a legislative instrument made by the Minister for the purposes of this paragraph; and (e) at the test time, the notice had not been withdrawn or revoked; and (f) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (g) the test time occurs before 1 January 2012. (2) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, neither the person, nor the person's partner, is an eligible recipient of a category P welfare payment; and (b) at the test time, the person, or the person's partner, is an eligible recipient of a category R welfare payment; and (c) before the test time, the Queensland Commission gave the Secretary a written notice requiring that the person be subject to the income management regime under this subsection; and (d) the notice was given under a law of Queensland; and (e) the notice was not given in such circumstances (if any) as are specified in a legislative instrument made by the Minister for the purposes of this paragraph; and (f) at the test time, the notice had not been withdrawn or revoked; and (g) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (h) the test time occurs before 1 January 2012. (3) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is not subject to the income management regime under any other provision of this Subdivision; and (b) at the test time, the person has a payment nominee; and (c) at the test time, the payment nominee is subject to the income management regime under subsection (1) or (2). Subdivision B—Exempt Northern Territory persons 123UG Exempt Northern Territory persons Each relevant Northern Territory area (1) The Secretary may, by written notice given to a person, determine that the person is an exempt Northern Territory person in relation to each relevant Northern Territory area for the purposes of this Part. (2) In deciding whether to make a determination under subsection (1), the Secretary must have regard to the following matters: (a) the person's family and kinship relationships; (b) the area in which the person is usually physically present overnight; (c) the area or areas in which the person's assets are located; (d) if the person has travelled outside the relevant Northern Territory areas: (i) the frequency of that travel; and (ii) the duration of that travel; and (iii) the reason for that travel; (e) the address of the place of residence of the person last known to the Secretary; (f) the postal address of the person last known to the Secretary; (g) whether the person has been physically present in any of the relevant Northern Territory areas on a temporary basis; (h) if the person has been physically present in any of the relevant Northern Territory areas on a temporary basis—the circumstances that resulted in the person being so physically present in the area concerned. (3) A determination under subsection (1) is not a legislative instrument. (4) The Minister may, by legislative instrument, determine that a specified person is an exempt Northern Territory person in relation to each relevant Northern Territory area for the purposes of this Part. Note: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003. (5) Subsections (1) and (4) do not limit each other. Specific relevant Northern Territory area (6) The Secretary may, by written notice given to a person, determine that the person is an exempt Northern Territory person in relation to a specified relevant Northern Territory area for the purposes of this Part. (7) In deciding whether to make a determination under subsection (6), the Secretary must have regard to the following matters: (a) the person's family and kinship relationships; (b) the area in which the person is usually physically present overnight; (c) the area or areas in which the person's assets are located; (d) if the person has travelled outside the relevant Northern Territory area: (i) the frequency of that travel; and (ii) the duration of that travel; and (iii) the reason for that travel; (e) the address of the place of residence of the person last known to the Secretary; (f) the postal address of the person last known to the Secretary; (g) whether the person has been physically present in the relevant Northern Territory area on a temporary basis; (h) if the person has been physically present in the relevant Northern Territory area on a temporary basis—the circumstances that resulted in the person being so physically present in that area. (8) A determination under subsection (6) is not a legislative instrument. Subdivision C—Additional provisions relating to school enrolment and attendance 123UH Eligible care child For the purposes of this Part, a person (the first person) is an eligible care child of another person at a particular time if, and only if: (a) at that time, the first person is a dependent child of the other person; or (b) all of the following conditions are satisfied: (i) that time occurs during an eligible care period; (ii) under a family law order, registered parenting plan or parenting plan that is in force during the eligible care period, the first person is supposed to live or spend time with the other person; (iii) assuming the family law order, registered parenting plan or parenting plan were complied with during the eligible care period, the first person would have been in the other person's care for at least 14% of that period. 123UI Applicable school period (1) For the purposes of this Part, an applicable school period in relation to a child is a period ascertained in accordance with a legislative instrument made by the Minister for the purposes of this subsection. (2) A period ascertained under subsection (1) may be a recurring period. (3) A period may be ascertained under subsection (1) by reference to a term of the school attended by the child. (4) For the purposes of this Part, it is immaterial whether an applicable school period begins before or after the commencement of this section. 123UJ Eligible care period (1) For the purposes of this Part, an eligible care period is a period ascertained in accordance with a legislative instrument made by the Minister for the purposes of this subsection. (2) A period ascertained under subsection (1) may be a recurring period (for example, a fortnight). (3) For the purposes of this Part, it is immaterial whether an eligible care period begins before or after the commencement of this section. 123UK Unsatisfactory school attendance situation (1) For the purposes of this Part, the question whether an unsatisfactory school attendance situation exists, or has existed, in relation to a child is to be ascertained in accordance with a legislative instrument made by the Minister for the purposes of this subsection. (2) However, an unsatisfactory school attendance situation does not exist in relation to a child if the child is not required, under a law of a State or Territory, to attend school in a State or Territory. (3) For the purposes of this Part, it is immaterial whether an unsatisfactory school attendance situation exists or has existed before or after the commencement of this section. 123UL Formal warning—unsatisfactory school attendance situation If: (a) a person is not subject to the income management regime under section 123UE; and (b) the person, or the person's partner, has an eligible care child; and (c) an unsatisfactory school attendance situation exists, or has existed, in relation to the eligible care child; the Secretary may give the person a formal warning that the person, or the person's partner, could become subject to the income management regime under section 123UE if an unsatisfactory school attendance situation exists in relation to the eligible care child. Division 3—Establishment of the Income Management Special Account 123VA Establishment of the Income Management Special Account (1) The Income Management Special Account is established by this section. (2) The Account is a Special Account for the purposes of the Financial Management and Accountability Act 1997. 123VB Special Account not held on trust etc. An amount standing to the credit of the Special Account: (a) is not held on trust; and (b) is special public money for the purposes of section 16 of the Financial Management and Accountability Act 1997. 123VC Bank account Amounts standing to the credit of the Special Account 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 Special Account 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. 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) 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. 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 Special Account 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. (10) If a lump sum is paid under subsection (7): (a) the Special Account 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 Special Account 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 Special Account 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. 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. 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. Lump sum payment (3) The residual amount is to be paid to the legal personal representative of the person as a single lump sum on a day determined by the Secretary. (4) The day specified in the determination must occur within the 12‑month period beginning on the day of the person's death. (5) If a lump sum is paid under subsection (3): (a) the Special Account 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 Scope (1) This section applies to an amount that is to be paid to the legal personal representative of a person under subsection 123WL(3). Payment into bank account etc. (2) The amount is to be paid to the credit of a bank account kept by the legal personal representative of the person. (3) The bank account may be kept by the legal personal representative of 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 legal personal representative of 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. 123WN Crediting of amounts to income management accounts—Ministerial rules The Minister and the Finance Minister may, by legislative instrument, make rules providing that an amount ascertained in accordance with the rules is to be credited to: (a) the Special Account; and (b) a person's income management account; in the circumstances specified in the rules. Division 5—Deductions from welfare payments Subdivision A—Relevant Northern Territory area 123XA Deductions from category B welfare payments—instalments Scope (1) This section applies if: (a) a person is subject to the income management regime under subsection 123UB(1) or (3); and (b) an instalment of a category B welfare payment is payable to the person. Deductions from category B welfare payments—instalments (2) The following provisions have effect: (a) the Secretary must deduct from the instalment of the category B welfare payment the deductible portion of the instalment; (b) an amount equal to the deductible portion of the instalment is credited to the Special Account; (c) an amount equal to the deductible portion of the instalment is credited to the person's income management account. (3) For the purposes of subsection (2), the deductible portion of an instalment of a category B welfare payment is 50% of the net amount of the instalment (rounded down to the nearest cent). 123XB Deductions from category B welfare payments—lump sums Scope (1) This section applies if: (a) a person is subject to the income management regime under subsection 123UB(1) or (3); and (b) a category B welfare payment is payable to the person otherwise than by instalments. Deductions from category B welfare payments—lump sums (2) The following provisions have effect: (a) the Secretary must deduct from the category B welfare payment the deductible portion of the payment; (b) an amount equal to the deductible portion of the payment is credited to the Special Account; (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 ca