Social Services Legislation Amendment (Welfare Reform) Act 2018 (26 of 2018)

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 a health care card that is income-tested for the request recipient; or

(d) is the holder of a seniors health card, or a health care card that is income-tested for the request recipient.

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:

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

(ii) 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 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 described in paragraph 75(1)(a) or (c) when the request under section 75 was made, the material mentioned in paragraph (1)(a) or (b) of this section 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 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, or a health care card that is income-tested for the request recipient - 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.