Document ID: chunk:federal_register_of_legislation:C2010A00093:clause:2_123xjc
Version: federal_register_of_legislation:C2010A00093
Segment Type: clause
Provision Reference: sch 2 cl 123XJC
Character Range: 34443–36388

123XJC  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 123UCB or 123UCC; and
 (b) an instalment of 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 Special Account;
 (c) an amount equal to the deductible portion of the instalment is credited to the person's income management account.

Deductible portion—instalments of baby bonus
 (3) For the purposes of subsection (2), the deductible portion of an instalment of baby bonus under the Family Assistance Act 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 instalment (rounded down to the nearest cent).

Deductible portion—instalments of other category I welfare payments
 (4) For the purposes of subsection (2), the deductible portion of an instalment of a category I welfare payment (other than baby bonus under the Family Assistance Act) is:
 (a) 50%; 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).
 (5) An instrument under paragraph (4)(b) may specify different percentages in relation to different category I welfare payments.
 (6) An instrument under paragraph (4)(b) may specify a percentage that is higher than 50% only if the Minister considers the higher percentage is necessary to promote the objects of this Part.