Person other than payee obtains value for non-endorsed cheque under income management

Person other than payee obtains value for non-endorsed cheques

Where an amount is debited from a person's income management account, to provide for a direct payment by cheque, and a person other than the payee obtains value for that cheque without permission (i.e. the payee did not endorse the cheque to that other person), then the person who obtained the cheque owes a debt to the Commonwealth for the value of that cheque. This applies to both restricted and unrestricted payments.

Act reference: SS(Admin)Act section 123ZF Person other than payee obtaining payment of a cheque, section 123YM Restricted direct payment-general, section 123YN Restricted direct payment-Part 3B payment nominee, section 123YO Unrestricted direct payment-general, section 123YP Unrestricted direct payment-Part 3B payment nominee

Last reviewed: 11 November 2019