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Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2008 Budget and Other Measures) Bill 2008

Schedule 4 Income management regime

Part 1 Voluntary income management agreements

Social Security (Administration) Act 1999

1  Section 123TA (at the end of the dot-point beginning with “A person may become subject to the income management regime”)

Add:

               ; or (f)  the person voluntarily agrees to be subject to the income management regime.

2  Section 123TC

Insert:

declared voluntary income management area has the meaning given by section 123TGA.

3  Section 123TC (definition of subject to the income management regime )

Omit “or 123UF”, substitute “, 123UF or 123UFA”.

4  Section 123TC

Insert:

voluntary income management agreement means an agreement under section 123UM.

5  After section 123TG

Insert:

123TGA   Declared voluntary income management area

                   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 voluntary income management area for the purposes of this Part.

6  At the end of Subdivision A of Division 2 of Part 3B

Add:

123UFA   Persons subject to the income management regime—voluntary income management agreement

                   For the purposes of this Part, a person is subject to the income management regime at a particular time if, at that time, a voluntary income management agreement is in force in relation to the person.

7  At the end of Division 2 of Part 3B

Add:

Subdivision D Voluntary income management agreements

123UM   Voluntary income management agreement

             (1)  A person may enter into a written agreement with the Secretary under which the person agrees voluntarily to be subject to the income management regime throughout the period when the agreement is in force.

             (2)  An agreement under subsection (1) is to be known as a voluntary income management agreement .

             (3)  The Secretary must not enter into a voluntary income management agreement with a person (the first person ) unless:

                     (a)  the first person is an eligible recipient of a category H welfare payment; and

                     (b)  the first person’s usual place of residence is within a declared voluntary income management area; and

                     (c)  if the first person has a payment nominee—the payment nominee is not an excluded payment nominee; and

                     (d)  if the first person is a payment nominee in relation to another person—a consent given by the other person is in force under section 123UP in relation to the first person.

             (4)  In deciding whether to enter into a voluntary income management agreement with a person, the Secretary must have regard to:

                     (a)  the extent to which it would be feasible for the Secretary to take action under Division 6 in relation to the person if the person were subject to the income management regime; and

                     (b)  such other matters (if any) as the Secretary considers relevant.

             (5)  The Secretary must not enter into a voluntary income management agreement with a person if:

                     (a)  the person is subject to the income management regime under section 123UB, 123UC, 123UD, 123UE or 123UF; or

                     (b)  during the 12-month period ending when the voluntary income management agreement is to come into force, there were 2 or more occasions on which previous voluntary income management agreements relating to the person were terminated under subsection 123UO(2).

123UN   Duration of voluntary income management agreement

             (1)  A voluntary income management agreement in relation to a person (the first person ):

                     (a)  comes into force at the time specified in the agreement, so long as:

                              (i)  at that time, the first person is an eligible recipient of a category H welfare payment; and

                             (ii)  at that time, the first person’s usual place of residence is within a declared voluntary income management area; and

                            (iii)  if, at that time, the first person has a payment nominee—the payment nominee is not an excluded payment nominee; and

                            (iv)  if, at that time, the first person is a payment nominee in relation to another person—a consent given by the other person is in force under section 123UP in relation to the first person; and

                             (v)  at that time, the first person is not subject to the income management regime under section 123UB, 123UC, 123UD, 123UE or 123UF; and

                     (b)  remains in force for 12 months.

             (2)  Subsection (1) has effect subject to section 123UO.

             (3)  If a voluntary income management agreement (the original agreement ) in relation to a person is in force, subsection (1) does not prevent the Secretary from entering into a new voluntary income management agreement with the person, so long as the new agreement is expressed to come into force immediately after the original agreement ceases to be in force.

             (4)  If a voluntary income management agreement in relation to a person has ceased to be in force, subsection (1) does not prevent the Secretary from entering into a new voluntary income management agreement with the person.

123UO   Termination of voluntary income management agreement

Termination by request

             (1)  If a voluntary income management agreement relates to a person, the person may, by written notice given to the Secretary, request the Secretary to terminate the agreement.

             (2)  The Secretary must comply with a request under subsection (1) as soon as practicable after receiving the request.

Grounds of termination

             (3)  If:

                     (a)  a voluntary income management agreement in relation to a person (the first person ) is in force; and

                     (b)  any of the following events occurs:

                              (i)  the first person ceases to be an eligible recipient of a category H welfare payment;

                             (ii)  the first person’s usual place of residence ceases to be within a declared voluntary income management area;

                            (iii)  in a case where the first person has a payment nominee—the payment nominee becomes an excluded payment nominee;

                            (iv)  in a case where the first person is a payment nominee in relation to another person—a consent given by the other person under section 123UP in relation to the first person ceases to be in force;

                             (v)  the first person becomes subject to the income management regime under section 123UB, 123UC, 123UD, 123UE or 123UF;

                            (vi)  the Secretary becomes satisfied that it is not feasible for the Secretary to take action under Division 6 in relation to the first person;

the Secretary must terminate the voluntary income management agreement as soon as practicable after the occurrence of the event.

Limit on new voluntary income management agreements

             (4)  If a voluntary income management agreement in relation to a person is terminated under this section, the Secretary must not enter into another voluntary income management agreement with the person within 60 days after the termination.

123UP   Consent for payment nominee to enter voluntary income management agreement

             (1)  If a person has a payment nominee, the person may give the Secretary a written consent to the existence of a voluntary income management agreement that relates to the payment nominee.

             (2)  A consent given by a person under subsection (1) remains in force until the person, by written notice given to the Secretary, withdraws the consent.

8  Paragraph 123WJ(1)(c)

Repeal the paragraph, substitute:

                     (c)  if, immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UB, 123UC, 123UD, 123UE or 123UF—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; and

                     (d)  if, immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UFA—the Secretary is satisfied that the first person is not likely to become subject to the income management regime under section 123UB, 123UC, 123UD, 123UE or 123UF within 60 days after the cessation.

9  At the end of subsection 123WJ(9)

Add:

               ; or (c)  immediately before the first person ceased to be subject to the income management regime, the first person was subject to the income management regime under section 123UFA.

10  After Subdivision D of Division 5 of Part 3B

Insert:

Subdivision DA Voluntary income management agreements

123XPA   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 123UFA; and

                     (b)  an instalment of a 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

             (3)  For the purposes of subsection (2), the deductible portion of an instalment of a category I welfare payment is:

                     (a)  70%; 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).

             (4)  An instrument under paragraph (3)(b) may specify different percentages in relation to different category I welfare payments.

123XPB   Deductions from category I welfare payments—lump sums

Scope

             (1)  This section applies if:

                     (a)  a person is subject to the income management regime under section 123UFA; and

                     (b)  a category I welfare payment is payable to the person otherwise than by instalments.

Deductions from category I welfare payments—lump sums

             (2)  The following provisions have effect:

                     (a)  the Secretary must deduct from the category I 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.

Deductible portion

             (3)  For the purposes of subsection (2), the deductible portion of a category I welfare payment 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 payment (rounded down to the nearest cent).

             (4)  An instrument under paragraph (3)(b) may specify different percentages in relation to different category I welfare payments.



 

Part 2 Other amendments

Social Security (Administration) Act 1999

11  Subsection 123WL(3)

Repeal the subsection, substitute:

Lump sum payment

             (3)  The residual amount is to be paid to:

                     (a)  the legal personal representative of the person; or

                     (b)  if:

                              (i)  the residual amount is $500 or less; and

                             (ii)  the Secretary has not been notified of the existence of a legal personal representative of the person; and

                            (iii)  the Secretary is satisfied that another person is carrying out, or will carry out, an appropriate activity in relation to the estate or affairs of the person;

                            that other person;

as a single lump sum on a day determined by the Secretary.

12  Subsections 123WM(1), (2), (3) and (4)

Omit “the legal personal representative of”.

13  Application of amendments

The amendments made by this Part apply in relation to a person who died before, or dies at or after, the commencement of this Part.