Document ID: chunk:federal_register_of_legislation:C2011C00056:clause:1_123wj:p2
Version: federal_register_of_legislation:C2011C00056
Segment Type: clause
Provision Reference: sch 1 cl 123WJ (pt 2/2)
Character Range: 57964–60002

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.