Document ID: chunk:federal_register_of_legislation:C2011C00056:clause:1_123yg
Version: federal_register_of_legislation:C2011C00056
Segment Type: clause
Provision Reference: sch 1 cl 123YG
Character Range: 94136–96132

123YG  Expense payment—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 designated nominee.

Expense payment

 (2) 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 in respect of expenditure incurred by the first person in relation to goods or services; or
 (b) with the consent of the first person, 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 in respect of expenditure incurred by the third person in relation to goods or services; or
 (c) make a payment in discharge, in whole or in part, of an obligation of the first person to pay an amount by way of rates or land tax; or
 (d) with the consent of the first person, make a payment in discharge, in whole or in part, of an obligation of a third person to pay an amount by way of rates or land tax;
so long as the amount paid does not exceed the credit balance of the first person's income management account.

Special Account to be debited

 (3) If the Secretary makes a payment under subsection (2), the Special Account is debited by an amount equal to the amount paid.

First person's income management account to be debited

 (4) If the Secretary makes a payment under subsection (2), the first person's income management account is debited by an amount equal to the amount paid.

Criteria

 (5) The Secretary must not make a payment under paragraph (2)(a) or (b) if the Secretary is satisfied that the relevant goods or services are excluded goods or excluded services.

Tax consequences

 (6) If the Secretary makes a payment under subsection (2), the payment does not have consequences under the income tax law for the first person.