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Schedule 16—Streamlining tax file number collection

Schedule 16 Streamlining tax file number collection

Part 1 Main amendments

Social Security (Administration) Act 1999

1  Sections 75 to 77

Repeal the sections, substitute:

75   Requesting tax file numbers

Persons who may be requested to provide tax file numbers

             (1)  The Secretary may make a request under subsection (2), (3) or (4) of a person (the request recipient ) in Australia who:

                     (a)  is making, or has made, a claim for a social security payment; or

                     (b)  is receiving a social security payment (other than utilities allowance or energy supplement under Part 2.25B of the 1991 Act); or

                     (c)  is making, or has made, a claim for a seniors health card; or

                     (d)  is the holder of a seniors health card.

Requesting tax file number of request recipient

             (2)  The Secretary may request, but not compel, the request recipient:

                     (a)  if the request recipient has a tax file number—to give the Secretary a written statement of the request recipient’s tax file number; or

                     (b)  if the request recipient does not have a tax file number:

                              (i)  to apply to the Commissioner of Taxation for a tax file number; and

                             (ii)  to give the Secretary a written statement of the request recipient’s tax file number after the Commissioner of Taxation has issued it.

Requesting tax file number of request recipient’s partner

             (3)  The Secretary may request, but not compel, the request recipient to give the Secretary a written statement of the tax file number of the request recipient’s partner if:

                     (a)  the request recipient is a member of a couple; and

                     (b)  the request recipient’s partner is in Australia.

Requesting tax file number of other person whose income is relevant to request recipient’s rate of payment

             (4)  If:

                     (a)  the request recipient is receiving a social security payment; and

                     (b)  the income of one or more other persons who are in Australia is required to be taken into account for the purpose of working out the rate of the request recipient’s social security payment;

the Secretary may request, but not compel, the request recipient to give the Secretary a written statement of the tax file number of any one or more of those other persons.

76   How request for tax file number is satisfied

Satisfying request for tax file number

             (1)  If the Secretary requests a person (the request recipient ) under section 75 to give the Secretary a written statement of the tax file number of a person (the relevant person ), the request recipient satisfies the request by giving the Secretary, within the period mentioned in subsection (2) of this section (if applicable):

                     (a)  the written statement of the relevant person’s tax file number; or

                     (b)  both of the following:

                              (i)  a declaration that meets the requirements of subsection (3) and contains the statement required by subsection (4);

                             (ii)  a document in which the relevant person authorises the Commissioner of Taxation to tell the Secretary the matters mentioned in subsection (5).

Note:          The relevant person may be the request recipient or another person whose tax file number has been requested under subsection 75(3) or (4).

Period within which request must be satisfied

             (2)  Unless the request recipient was making a claim for a social security payment or a seniors health card when the request under section 75 was made, the material mentioned in paragraph (1)(a) or (b) must be given within 28 days after the making of the request.

Requirements for declarations

             (3)  A declaration mentioned in paragraph (1)(b) must be:

                     (a)  for a request under subsection 75(2)—a TFN declaration; or

                     (b)  for a request under subsection 75(3) or (4)—in accordance with a form approved by the Secretary.

             (4)  A declaration mentioned in paragraph (1)(b) must contain:

                     (a)  a statement that the relevant person:

                              (i)  has a tax file number but does not know what it is; and

                             (ii)  has asked the Commissioner of Taxation to inform the relevant person of his or her tax file number; or

                     (b)  a statement that an application by the relevant person for a tax file number is pending.

Requirements for authorisation documents

             (5)  For the purposes of subparagraph (1)(b)(ii), the matters are as follows:

                     (a)  in a case where the declaration contains a statement mentioned in paragraph (4)(a):

                              (i)  whether the relevant person has a tax file number; and

                             (ii)  if the relevant person has a tax file number—that number; and

                     (b)  in a case where the declaration contains a statement mentioned in paragraph (4)(b):

                              (i)  if a tax file number is issued to the relevant person—that number; or

                             (ii)  if the application for a tax file number is refused or is withdrawn—that fact.

77   Consequences of not giving tax file number

Consequences of not satisfying request for tax file number

             (1)  If the Secretary makes a request of a person under section 75, the consequences set out in the following table apply unless the person satisfies the request in accordance with section 76.

Note:          The Secretary may exempt a person from the operation of this subsection (see subsection (4)).

 

Consequences of not satisfying request for tax file number

Item

If the request under section 75 was given to …

the consequence is …

1

a person who was making a claim for a social security payment

the social security payment is not payable

2

a person who was making a claim for a seniors health card

the Secretary must not determine the claim

3

a person who had made a claim for, or was receiving, a social security payment

at the end of 28 days after the Secretary made the request, the social security payment ceases to be payable to the person

4

a person who had made a claim for, or was the holder of, a seniors health card

at the end of 28 days after the Secretary made the request, the Secretary must determine that the card is to be cancelled

Consequences of relevant person not having tax file number after giving declaration

             (2)  The consequences set out in subsection (3) apply if:

                     (a)  the Secretary makes a request under section 75 of a person (the request recipient ); and

                     (b)  the request recipient satisfies the request by giving:

                              (i)  a declaration mentioned in subparagraph 76(1)(b)(i) that contains a statement as required by subsection 76(4); and

                             (ii)  a document in which the Commissioner of Taxation is authorised to tell the Secretary certain matters mentioned in subsection 76(5); and

                     (c)  the Commissioner of Taxation tells the Secretary that the relevant person mentioned in paragraph 76(4)(a) (if applicable) does not have a tax file number or that any of the following apply in relation to the relevant person mentioned in paragraph 76(4)(b) (if applicable):

                              (i)  the relevant person has not applied for a tax file number;

                             (ii)  an application by the relevant person for a tax file number has been refused;

                            (iii)  the relevant person has withdrawn an application for a tax file number.

Note 1:       The relevant person may be the request recipient or another person whose tax file number has been requested under subsection 75(3) or (4).

Note 2:       The Secretary may exempt a person from the operation of this subsection and subsection (3) (see subsection (4)).

             (3)  The consequences are that:

                     (a)  if the request recipient is receiving a social security payment—the social security payment ceases to be payable to the recipient; and

                     (b)  if the request recipient is the holder of a seniors health card—the Secretary must determine that the card is to be cancelled.

Exemptions

             (4)  The Secretary may exempt a person who has been given a request under section 75 from the operation of either or both the following:

                     (a)  subsection (1) of this section;

                     (b)  subsections (2) and (3) of this section.

             (5)  Without limiting subsection (4), if the Secretary requests the request recipient under section 75 to give a written statement of another person’s tax file number, the Secretary may exempt the request recipient under subsection (4) if the Secretary is satisfied that:

                     (a)  the request recipient does not know the other person’s tax file number; and

                     (b)  the request recipient cannot satisfy the request in accordance with section 76.

Part 2 Consequential amendments

Social Security Act 1991

2  Subsection 1061ZG(2) (note)

Omit “subsections 76(1A) and 77(1A)”, substitute “subsection 77(1)”.

Social Security (Administration) Act 1999

3  Subsection 37(8) (note)

Omit “subsections 76(1A) and 77(1A)”, substitute “subsection 77(1)”.

4  Subsection 86(1) (note)

Omit “76(1B) and 77(1B)”, substitute “77(1) and (3)”.

5  Section 121 (definition of adverse determination )

Omit “76(1B) or 77(1B) or”, substitute “77(1) or (3) determining that a seniors health card is to be cancelled or under”.

6  Paragraph 123(2)(a)

Omit “76(1B) or 77(1B)”, substitute “77(1) or (3)”.

Part 3 Application of amendments

7  Application of amendments

The amendments made by this Schedule apply in relation to a request that is made under section 75 of the Administration Act on or after the commencement of this item.