DATE OF ISSUE: 24 December 1992
NON-COMPLIANCE WITH A REQUEST FOR A TAX FILE NUMBER
Purpose
The purpose of this Departmental Instruction is to advise of the action that should be taken if a person does not comply with a request to supply a tax file number (TFN).
2.Income Support has received confirmation that an income payment, as specified in section 128A, can be cancelled where a pensioner does not comply within specified time limits. If either a veteran or spouse does not supply their TFN both payments should be suspended/cancelled.
Procedures
Refusals
3.After receiving a request letter, a pensioner may refuse to provide their TFN. The TFN team will record on the TFN Collection Network that the pension is to be suspended and then forward the case to the relevant Branch Office (through the TFN Contact Officer) instructing them to suspend pension.
4.On receipt of the case the Branch must immediately suspend the pension and advise the pensioner. The advice must also inform the pensioner that if they provide their TFN or a completed Application/Enquiry form within 14 days, their pension will be resumed from the date it was suspended. Once 14 days have elapsed cancellation action should commence.
5.Where a pension has been cancelled an advice letter must be sent to the pensioner and the TFN team notified so the TFN action can be finalised.
Whereabouts Unknown (return to sender/unclaimed)
6.The TFN Team will also forward to Branch Offices details of pensioners whose whereabouts are unknown. For these cases, usual Branch Office procedures are to be followed before the pension is suspended. If a pensioner in receipt of service pension only, has not contacted the Department within 6 weeks of suspension, their pension should be cancelled. If a pensioner in receipt of disability pension or war widow/ers pension only has not contacted the Department within 3 months of suspension, their pension should be cancelled.
7.If the Branch Office obtains the pensioner's correct address, the TFN Team must be notified as they will forward a second request.
8.When the Branch Office suspends or cancels a payment the TFN Team must be notified so they can update or finalise the case.
No Response
9.After receiving a request letter, the pensioner may not comply within the required 28 days. The TFN team will send a second request letter to these pensioners giving them a further 14 days to comply. The second request letter also explains that if they do not comply within the required time, their pension will be suspended.
10.The TFN team will notify Branch Offices to suspend pension payments of those pensioners who have not responded to the second request. If a pensioner in receipt of service pension has not contacted the Department within 6 weeks of suspension, their pension should be cancelled and an advice letter sent. If a person in receipt of disability pension or war widow/ers pension only has not contacted the Department within 3 months, their pension should be cancelled and an advice letter sent.
11.If the Branch Office obtains the pensioner's correct address, the TFN Team must be notified as they will forward a further request.
12.When the Branch Office suspends or cancels a payment the TFN Team must be notified so they can update or finalise the case.
Suspension or Cancellation of Pharmaceutical Allowance (PA)
13.When suspending or cancelling a payment because the pensioner has not complied with the request for their TFN, consideration must be given to whether PA should be suspended or cancelled.
14.Where a pensioner is not eligible to receive benefits under the Repatriation Pharmaceutical Benefits Scheme (RPBS) ie. they do not have an accepted disability, PA should also be suspended or cancelled. Therefore, pensioners whose service pension and/or war widows pension payments have been suspended/cancelled should also have their PA suspended or cancelled.
Example:
a)Service Pension only (married couple)
If either or both the service pensioner and spouse do not supply their TFNs then service pension and PA is suspended/cancelled for both.
b)Service Pension and Disability Pension (married couple)
If either or both the service pensioner and spouse do not supply their TFNs then service and disability pensions should be suspended. PA should continue.
Where there is no response (within 6 weeks) to the suspension, service and disability pension should be cancelled for both the veteran and spouse. PA paid to the spouse should be cancelled from the current reduction date and the veteran's PA increased to $5.20 from the same date.
c)Disability Pension only
Both the veteran and spouse are receiving disability pension
If either or both the disability pensioner and spouse do not supply their TFNs then disability pension should be suspended for both. PA should continue.
Where there is no response (within 3 months) to the suspension, disability pension should be cancelled for both the veteran and spouse. PA paid to the spouse should be cancelled from the current reduction date and the veterans' PA increased to $5.20 from the same date.
Veteran only receiving Disability pension (married or single)
If the disability pensioner does not supply their TFN then disability pension should be suspended. PA should continue.
Where there is no response (within 3 months) to the suspension, disability pension should be cancelled and the PA continued.
d)War Widow/ers Pension
If a person does not supply their TFN then war widow/ers pension and PA should be suspended.
Where there is no response (within 3 months) to the suspension, pension and PA should be cancelled.
Effective Dates
Cancellation
15.Payment should be cancelled from the date of suspension.
Resumption
16.Cases that have been suspended are to be resumed from the date of suspension.
17.Where a TFN or Application/Enquiry form has been supplied within a reasonable time after cancellation, eg. within two paydays and the pensioner provides a valid reason for not complying, payment can resume from the day of cancellation. A service pensioner will be required to either state that income and asset details are unchanged or complete an SP3A (this will be at the discretion of the delegate).
18.If more than two paydays have elapsed, the date of effect will be the next payday after the TFN is supplied.
Arrears
19.If a pensioner requests arrears to be paid they must provide a valid reason why they could not comply with the request for their TFN within the specified time frame. This will also be at the delegate's discretion.
Attribution
20.When cancelling a pension because the person fails to supply a TFN, please ensure that the following attribution is used:
DIA Classification Type — 870
Attribute Number — 330 - TFN Collection.
21.If you have any queries regarding this DI please contact Traci O'Shannassy on (06) 2896437.
PETER HAWKER
NATIONAL PROGRAM
DIRECTOR (BENEFITS)