Student and Youth Assistance Act 1973

Act No. 155 of 1973 as amended

Consolidated as in force on 30 March 1998

(includes amendments up to Act No. 202 of 1997)

Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra

Contents

Part 1—Preliminary 1

1 Short title [see Note 1]...........................1

2 Commencement [see Note 1]........................1

3 Interpretation.................................1

5 Binding of the Crown............................6

5A Extension of Act...............................6

5B Secretary to have general administration.................6

5C Principles of administration........................6

Part 2—AUSTUDY Scheme 8

6 AUSTUDY scheme.............................8

6A Definitions..................................8

6B Deciding whether a person resides in Australia.............9

6C Refugees...................................9

6D Dependent child..............................10

6E Member of a couple............................10

6F Meaning of change of circumstances resident.............10

6G Meaning of post-1996 Australian resident...............12

6H Meaning of pre-1997 Australian resident................12

6J Certain determinations disallowable instruments...........12

7 Benefits under the AUSTUDY scheme.................12

8 Waiting period...............................14

9 Duration of waiting period........................14

Part 4—Advance, Suspension and Termination of Benefits 16

11 Advances on account of benefit.....................16

12 Suspension and termination of benefits.................16

Part 4A—Financial Supplement for Tertiary Students 17

Division 1—Preliminary 17

12A Object and explanation of this Part....................17

12B Interpretation................................18

12C Which students are eligible for financial supplement.........18

12D Agreements between Commonwealth and financial corporations..18

Division 2—Applications for financial supplement 20

12E Explanation of Division..........................20

12F Secretary to give student notice of entitlement.............20

12G Application for financial supplement..................21

12H Effect of financial supplement on certain other benefits.......21

Division 3—Payment of financial supplement 23

12J Explanation of Division..........................23

12K Contract between applicant for financial supplement and participating corporation              23

12L Financial supplement contract exempt from certain laws and taxes.24

12M Students (Financial Supplement) Reserve................24

12N How payments of financial supplement are to be made........24

Division 4—Payments under financial supplement contract to stop in certain circumstances              26

12P Explanation of Division..........................26

12Q Payments to stop at request of student..................26

12R Payments to stop if student ceases to be eligible for financial supplement              26

12S What happens if student fails to notify change in circumstances..27

12T Payments to stop if student is found never to have been eligible for financial supplement              28

12U What happens if financial supplement was paid because of provision of false or misleading information              29

12V Death of student..............................30

Division 5—Repayments of financial supplement during contract period 31

12W Explanation of Division..........................31

12X Calculation of amount outstanding under financial supplement contract              31

12Y Indexation amount.............................32

12Z Notice to student of amount outstanding in respect of financial supplement              33

12ZA Rights of student during contract period to make repayments in respect of financial supplement              33

12ZB What happens at end of contract period.................35

12ZC Notice to student..............................35

12ZD Requests for correction of notices....................36

Division 6—Indebtedness existing after termination date 37

Subdivision A—Introductory 37

12ZE Explanation of Division..........................37

12ZF FS debt and accumulated FS debt....................37

12ZG Accumulated FS debt discharges earlier debts.............39

12ZH Notice and a certificate to Commissioner................40

Subdivision B—Voluntary discharge of indebtedness 41

12ZJ Voluntary payments in respect of FS debts...............41

Subdivision C—Requirement to discharge indebtedness 41

12ZK Compulsory payments in respect of accumulated FS debt......41

Subdivision D—Returns and assessments 42

12ZL Annual returns...............................42

12ZM Assessment.................................43

12ZN Application of the Income Tax Assessment Act............43

12ZO How notices of assessment may be served...............43

12ZP Power of Commissioner to defer assessment or reduce assessment to nil              44

12ZQ Review of decision of Commissioner..................44

Subdivision E—Miscellaneous 45

12ZR Benefits to students under student financial supplement scheme not subject to taxation              45

12ZS Application of payments..........................45

12ZT Indebtedness discharged by death....................45

12ZU Secrecy....................................45

Division 7—General 48

12ZV Explanation of Division..........................48

12ZW Application of the Bankruptcy Act....................48

12ZX What happens if a decision of Secretary is set aside or varied....49

12ZY Notices of assignment...........................49

12ZZ Assignments etc. not subject to State or Territory taxes.......49

Part 4B—Other Indexation Provisions 50

12ZZA Maximum living allowances under AUSTUDY Regulations to be indexed by reference to Consumer Price Index              50

12ZZB Other provisions relating to indexation.................51

Part 6—Overpayments under this Act and under certain other Acts and Administrative Schemes              52

38 Recovery of certain overpayments by offsetting............52

40 Late payment charge and interest in relation to overpayment of a benefit              53

41 Determination that late payment interest not to be payable in relation to certain periods              55

42 Recovery of certain overpayments from third parties.........55

43 Write off and waiver of certain overpayments etc............58

Part 7—Miscellaneous 59

44A Provision of tax file numbers.......................59

48 Obligation to notify happening of certain events............60

49 Offences...................................60

50 Proceedings against corporations.....................61

51 Evidentiary certificates..........................62

55 Time for instituting criminal proceedings................63

55A Appropriation................................63

56 Regulations.................................63

Part 8—Youth Training Allowance 65

Division 1—Interpretation 65

57 Application of Part 1.2 of the Social Security Act...........65

58 Interpretation [see Note 2]........................65

60 Calculation of amount of pharmaceutical allowance paid......69

61 Transferee to youth training allowance.................70

62 Tables, notes etc. form part of section..................71

63 Payments are period-based........................72

64 Qualification for, or payability of, youth training allowance.....72

Division 2—Qualification for, and payability of, youth training allowance 73

Subdivision A—Basic qualifications 73

65 Qualification for youth training allowance [see Note 3].......73

67 Youth training allowance may continue to end of payment period.78

68 People may be treated as unemployed..................78

69 Unemployment due to industrial action.................79

70 Assurance of support............................80

71 Move to area of lower employment prospects.............80

72 Liquid assets test waiting period [see Note 8].............81

73 Registration by Commonwealth Employment Service........85

74 Prospective determinations for some claimants............86

Subdivision B—Activity test 87

75 Activity test.................................87

75A Certain actions deemed to be failure to satisfy activity test......91

76 Relief from activity test—general....................91

77 Relief from activity test—people engaged in voluntary work....92

78 Relief from activity test—special circumstances............93

78AA Pre-natal and post-natal relief from activity test............94

Subdivision BAA—Exemption from activity test–people temporarily incapacitated for work              94

78AAA Subdivision not to apply to person with a pending claim for disability support pension              94

78A Interpretation................................94

78B Incapacitated person not required to satisfy activity test.......94

78D Refusal to attend interview etc. may result in person being required to satisfy activity test              95

78E Time limit for exemption from requirement to satisfy activity test.96

Subdivision C—Youth Training Activity Agreements 99

79 Youth Training Activity Agreements—requirement.........99

80 Youth Training Activity Agreements—terms.............99

81 Youth Training Activity Agreements—failure to negotiate.....101

82 Youth Training Activity Agreements—self-employment......102

83 Youth Training Activity Agreements—group enterprises and co-operative enterprises              103

84 Agreements entered into before 20 March 1995...........104

Subdivision D—Situations in which allowance not payable (general) 104

85 Youth training allowance not payable in certain circumstances..104

86 Provision of tax file number.......................106

87 Provision of partner’s tax file number.................108

88 Full-time students.............................109

89 Multiple entitlement exclusion.....................110

90 Commonwealth funded employment program exclusion......111

90A Provisional commencement day: claimant for disability support pension              111

91 Provisional commencement day: general...............112

91A Claims by telephone, facsimile or computer [see Note 9]......116

92 Start of youth training allowance—person subject to activity test.117

92A Start of youth training allowance—person not subject to activity test117

92B Refusal to attend interview etc......................119

Subdivision E—Situations in which allowance not payable (waiting periods)120

96 Ordinary waiting period.........................120

97 Duration of ordinary waiting period..................121

98 Education leavers waiting period....................122

99 Duration of education leavers waiting period—non-secondary school leavers              124

100 Duration of education leavers waiting period—secondary school leavers              128

101 Newly arrived residents waiting period................132

102 Duration of newly arrived residents waiting period.........133

Subdivision F—Activity test breaches 134

103 Activity test penalties for failure to satisfy activity test.......134

104 Activity test penalties for failure to enter Youth Training Activity Agreement              135

105 Activity test penalties for failure to comply with Youth Training Activity Agreement              136

106 Unemployment due to voluntary act..................137

107 Unemployment due to misconduct...................137

108 Refusal of job offer............................137

108A Failure to provide information etc....................138

109 Activity test non-payment periods...................138

110 Start of activity test non-payment periods [see Note 2].......139

111 Application of activity test non-payment periods before claims for youth training allowance              139

111A Activity test non-payment periods—interaction with activity test breach rate reduction periods              140

112 Activity test non-payment periods—interaction with waiting periods141

113 Effect of sections 110, 111 and 112..................141

113A Where one event may give rise to both an activity test penalty and an administrative breach rate reduction period              142

Subdivision G—Situations in which allowance not payable (administrative breaches)              142

114 Secretary may require a person to attend the Department of Social Security or the Commonwealth Employment Service etc.              142

115 Administrative breach rate reduction period to apply to persons who fail to comply with notification requirements              143

Subdivision H—Other situations in which allowance not payable 143

120 Removal from allowance for failure to continue Commonwealth Employment Service registration              143

121 Seasonal workers.............................144

122 Move to area of lower employment prospects............145

123 Youth training allowance not payable while person in gaol or in psychiatric confinement following criminal charge              146

124 Double benefit payment on release from gaol or from psychiatric confinement following criminal charge              146

Division 3—Claim for youth training allowance 147

125 Need for a claim..............................147

126 Form of claim...............................147

127 Lodgment of claim............................147

128 Claimant must be Australian resident and in Australia.......148

129 Claim may be withdrawn........................148

130 Secretary may request claimant to give statement of claimant’s tax file number              148

131 Secretary may request claimant to give statement of partner’s tax file number              149

Division 4—Determination of claim 150

132 Secretary to determine claim [see Note 4]...............150

133 Grant of claim...............................150

134 Date of effect of determination.....................151

Division 5—Rate of youth training allowance 153

Subdivision A—Rate of youth training allowance 153

135 How to work out a person’s youth training allowance rate.....153

136 Youth training supplement........................153

Subdivision AA—Activity test breach rate reductions 154

136AA Activity test breach rate reduction periods..............154

136AB Commencement of activity test breach rate reduction periods...154

136AC Application of activity test breach rate reduction periods before claims for youth training              155

136AD Activity test breach rate reduction periods—interaction with waiting periods              156

136AE Rate of youth training allowance where activity test breach rate reduction period applies              156

Subdivision B—Administrative breach reductions in the rate of youth training allowance              157

136A Administrative breach rate reduction periods.............157

136B Commencement of administrative breach rate reduction periods.158

136C Administrative breach rate reduction periods—interaction with activity test non-payment periods              158

136D Administrative breach rate reduction periods—interaction with activity test breach rate reduction periods              159

136DA Administrative breach rate reduction periods—interaction with waiting periods              159

136E Effect of sections 136C and 136D...................160

136F Administrative breach rate reduction period not to apply in certain circumstances              160

136G Rate of youth training allowance where administrative breach rate reduction applies              160

Division 6—Payment of youth training allowance 162

137 Start of youth training allowance....................162

138 Instalments.................................162

139 Instalments for period less than a fortnight..............162

140 Rounding off instalment.........................163

141 Instalments to be paid to person or nominee.............164

142 Payment into bank account etc......................164

143 If allowance payday would fall on public holiday etc.........165

144 Payment of allowance after death....................165

Division 7—Protection of youth training allowance 167

145 Youth training allowance to be absolutely inalienable........167

146 Effect of garnishee or attachment order................167

Division 8—Recipient obligations 169

147 Secretary may request recipient to give statement of recipient’s tax file number              169

148 Secretary may request recipient to give statement of partner’s tax file number              169

149 Secretary may require notice of the happening of an event or a change in circumstances              170

150 Secretary may require recipient to give particular information relevant to payment of youth training allowance              172

Division 9—Continuation, variation and termination 174

Subdivision A—General 174

151 Continuing effect of determination [see Note 2]...........174

Subdivision B—Automatic termination 174

151A Automatic termination: change of basis of qualification......174

152 Automatic termination—transfer to social security pension or benefit175

153 Automatic termination—recipient complying with section 149 notification obligations              175

154 Automatic termination—recipient not complying with section 149 notification obligations              175

155 Automatic termination—failure to provide section 150 statement.176

Subdivision C—Automatic rate reduction 177

156 Automatic rate reduction—partner starting to receive allowance, pension or benefit              177

156A Automatic rate reduction—recipient complying with section 149 notification obligations              177

157 Automatic rate reduction—recipient not complying with section 149 notification obligations              177

159 Changes to payments by computer following automatic termination or reduction              178

Subdivision D—Determinations 178

160 Rate increase determination.......................178

161 Rate reduction determination......................179

162 Cancellation or suspension determination...............179

163 Cancellation or suspension for failure to comply with section 150, 343 or 344 notice              179

164 Changes to payments by computer...................179

165 Resumption of payment after cancellation or suspension......180

Subdivision E—Date of effect of determination 180

166 Date of effect of favourable determination..............180

167 Date of effect of adverse determination................182

Division 10—Bereavement payments on death of partner 185

168 Qualification for payments under this Division............185

169 Continued payment of partner’s pension or benefit.........186

170 Lump sum payable in some circumstances..............186

171 Adjustment of person’s youth training allowance rate........187

172 Effect of death of person entitled to payments under this Division 187

173 Matters affecting payments under this Division...........189

Division 11—General provisions relating to the ordinary income test 191

Subdivision A—Ordinary income concept 191

174 General meaning of ordinary income.................191

175 Certain amounts taken to be received over 12 months........191

Subdivision B—Business income 191

176 Ordinary income from a business—treatment of trading stock [see Note 5]              191

177 Permissible reductions of business income [see Note 6]......192

Subdivision C—Deemed income from financial assets 192

178 Deemed income from financial assets—people other than members of couples              192

179 Deemed income from financial assets—members of couples....193

182 Deeming threshold............................194

183 Below threshold rate, above threshold rate..............194

184 Actual return on financial assets not treated as ordinary income..195

185 Certain money and financial investments not taken into account.195

Subdivision D—Investments taken into account on realisation 195

186 Treatment of superannuation fund investments............195

187 Early withdrawal from superannuation fund.............196

188 Adjustment of ordinary income for investment losses........196

Subdivision F—Immediate annuities and superannuation pensions 197

195 Immediate annuities...........................197

196 Superannuation pensions.........................197

Subdivision J—Disposal of ordinary income 197

215 Disposal of ordinary income......................197

216 Amount of disposition..........................198

217 Disposal of ordinary income—individuals..............198

218 Disposal of ordinary income—members of couples.........199

219 Treatment of transactions that constitute both a disposal of ordinary income and a disposal of assets              201

220 Dispositions more than 5 years old to be disregarded........201

Division 12—Compensation recovery 203

Subdivision A—General 203

224 General effect of Division........................203

225 Certain lump sums to be treated as though they were received as periodic payments              204

226 Effect of certain State and Territory laws...............204

Subdivision B—Enforcement of compensation rights 205

227 Secretary may require person to take action to obtain compensation205

Subdivision C—Receipt of compensation 206

228 Youth training allowance not payable during lump sum preclusion period              206

229 Person may have to repay amount if both lump sum and youth training allowance payments have been received [see Note 2]              210

230 Lump sum compensation not counted as ordinary income.....213

231 Rate reduction if periodic compensation payments received [see Note 2]              213

232 Rate reduction under income test and this Division.........216

233 Person may have to repay amount if both periodic compensation payments and allowance payments have been received [see Note 2]              216

234 Periodic compensation payments not counted as ordinary income.219

Subdivision D—Compensation payers 219

235 Secretary may send preliminary notice to potential compensation payer              219

236 Potential compensation payer must tell Department of liability..220

237 Secretary may send recovery notice to compensation payer....220

238 Preliminary notice or recovery notice suspends liability to pay compensation              225

239 Compensation payer’s payment to Commonwealth discharges liability to compensation recipient              225

240 Offence to make compensation payment after receiving preliminary notice or recovery payment              225

Subdivision E—Insurers 226

241 Secretary may send preliminary notice to insurer..........226

242 Insurer must tell Department of liability................227

243 Secretary may send recovery notice to insurer............227

244 Preliminary notice or recovery notice to insurer suspends both insurer’s and compensation payer’s liability              231

245 Insurer’s payment to Commonwealth discharges liability......231

246 Offence to make compensation payment after receiving preliminary notice or recovery notice              231

Subdivision F—Miscellaneous 232

247 Secretary may give recovery notice either to compensation payer or to insurer but not to both              232

248 Secretary may disregard some payments...............233

249 Division to bind Crown.........................233

Division 13—Indexation and adjustment of amounts 234

Subdivision A—Preliminary 234

250 Analysis of Division...........................234

251 Indexed amounts.............................234

Subdivision B—Indexation 236

252 CPI Indexation Table...........................236

253 Indexation of amounts..........................238

254 Indexation factor.............................239

255 Rounding off indexed amounts.....................239

256 Adjustment of certain pharmaceutical rates..............240

Subdivision C—One-off adjustments of rent assistance thresholds 240

256A Rent assistance threshold increased on 20 March 1996.......240

Division 14—Miscellaneous 241

257 Application of asset and income test reductions and compensation reductions for income tax purposes              241

Division 15—Overpayments and debt recovery 242

Subdivision A—Effect of Division 242

258 General effect of Division........................242

Subdivision B—Amounts recoverable under this Part 246

259 Application overseas...........................246

260 Debts due to the Commonwealth....................246

261 Debts arising under this Part.......................246

262 Debts arising from prepayments and certain other payments....248

263 Debt arising from AAT stay orders...................249

266 Debts arising from recipient’s contravention of Part.........250

267 Person other than payee obtaining payment of a cheque......250

268 Debts arising from conviction of person for involvement in contravention of Part by debtor              250

270 Compensation debts...........................251

271 Compensation payer and insurer debts.................251

272 Compensation arrears debts.......................251

273 Assurance of support debt........................252

274 Overpayments and debts arising under other Acts and schemes..252

275 Interest payable on debt for failure to enter agreement to pay debt 253

276 Interest payable on debt for breach of agreement to pay debt....255

277 Penalty interest rate............................257

278 Guidelines on the penalty interest charge scheme..........257

279 Debt from failure to comply with garnishee notice..........258

279A Recoverable debts.............................259

Subdivision C—Methods of recovery 260

280 Application of sections dealing with deductions...........260

281 Deductions from debtor’s allowance..................260

282 Legal proceedings.............................262

283 Garnishee notice.............................264

284 Secretary may allow payment of debt by instalments........267

285 Deductions by consent from allowance of person who is not the debtor268

Subdivision D—Non-recovery of debts 268

286 Meaning of debt..............................268

287 Secretary may write off debt......................269

289 Waiver of debt arising from error....................270

290 Waiver of debt relating to an offence.................271

290A Waiver of small debt...........................271

290B Waiver in relation to settlements....................272

290C Waiver in special circumstances....................274

291 Determination that penalty interest not payable in relation to particular periods              274

Division 16—Miscellaneous 276

Subdivision A—Offences 276

292 Operation of Subdivision........................276

293 False statement in connection with claims...............276

294 False statement—to deceive or to affect rates.............276

295 False statement or document......................277

296 Payment knowingly obtained if not payable.............277

297 Payment knowingly obtained through fraud etc............278

298 Conduct by directors, servants or agents................278

Subdivision B—Collection of tax 280

299 Payment to Commissioner of Taxation—section 218 of Income Tax Assessment Act              280

300 Judicial notice to be taken of certain matters.............280

301 Evidence..................................281

Part 9—Review of Decisions 282

Division 1—Internal review 282

302 Application of Division.........................282

303 Secretary may review decisions.....................282

304 Application for review..........................284

305 Secretary may continue payment pending outcome of application for review              285

306 Powers of Secretary or authorised review officer if application for review              286

307 Certain determinations not to be revived...............287

308 Notification of further rights of review................288

Division 2—Review by Social Security Appeals Tribunal 289

309 Application of Division.........................289

310 SSAT objectives.............................289

311 Application for review by SSAT....................289

312 Application requirement for certain decisions............290

313 Non-reviewable decisions........................290

314 Secretary may continue payment pending outcome of application for review              291

315 Automatic payment if review sought of decision concerning terms of agreement              292

316 SSAT review powers...........................293

317 SSAT review powers (Youth Training Activity Agreement decision)295

318 Date of effect of SSAT decisions....................295

319 Date of effect of SSAT decision (Youth Training Activity Agreement decision)              297

320 Application requirements........................297

321 Variation of decision before review completed............298

322 Parties to SSAT review.........................299

Division 3—Right to review by Administrative Appeals Tribunal 301

323 Application of Division.........................301

324 Review of SSAT decision by AAT...................301

325 Variation of decision before AAT review completed........302

326 Review of SSAT decision on application by the Secretary.....303

326A Secretary may settle proceedings before the Administrative Appeals Tribunal              303

Division 4—Modification of the Administrative Appeals Tribunal Act 1975304

327 Modification of the Administrative Appeals Tribunal Act.....304

328 Statement of reasons for decision....................304

329 Notice of application for review....................304

330 Parties to review by the AAT......................304

331 Lodging documents with the AAT...................305

332 Power of the AAT to obtain additional statements..........306

333 Operation and implementation of the decision under review....306

334 Power of the AAT if party fails to appear...............307

Part 10—Administration 308

Division 1—General administration 308

335 Government policy statements.....................308

336 The Secretary and National Convener may agree on administrative arrangements              308

337 The Secretary and the Secretary to the Department of Social Security may agree on administrative arrangements for Parts 8, 9 and 10              309

338 Delegation.................................309

338A Delegations by Secretary: references to the Secretary, the Department etc.              310

339 Authorised review officers........................311

340 Decisions to be in writing........................312

341 Notice of decisions............................312

Division 2—Information gathering 314

342 Application................................314

343 General power to obtain information..................314

344 Power to obtain information from a person who owes a debt to the Commonwealth              315

345 Power to obtain information about a person who owes a debt to the Commonwealth              316

346 Power to obtain information to verify claims etc...........317

347 Provisions relating to requirements...................318

348 State/Territory law does not affect obligations to provide information320

349 End-of-employment statement by employer.............320

Division 3—Confidentiality 322

350 Operation of section 12ZU unaffected.................322

351 Protection of personal information...................322

352 Offence—unauthorised access to protected information [see Note 7]322

353 Offence—unauthorised use of protected information........323

354 Protection extends to court, tribunal etc. proceedings........324

355 Secretary’s certificate..........................324

356 Guidelines for exercise of Secretary’s certificate power.......325

357 Offence—soliciting disclosure of protected information......325

358 Making untrue representations for purpose of soliciting disclosure of protected information              326

359 Offences—offering to supply protected information.........326

360 Officer’s oath or declaration.......................327

361 Freedom of Information Act not affected...............327

Schedule 1–Calculation of Rate of Youth Training Allowance 328

Part 1—Interpretation 328

1 Interpretation...............................328

2 When a person is regarded as independent..............328

3 Person required to live away from home...............332

4 Person living at home..........................332

Part 2—Modules  334

Module A—Overall Rate Calculation Process 334

Module B—Maximum Basic Rate 336

Module C—Pharmaceutical Allowance 338

Module D—Rent Assistance 340

Module E—Assets Test 344

Module F—Parental Income Test 349

Module G—Income Test [see Notes 2 and 8] 356

Module H—Remote Area Allowance 365

Schedule 2—Pensions, Benefits and Allowances 367

Schedule 3—Fringe Benefits 370

Part 1—Preliminary 370

1 Definitions.................................370

Part 2—Car Benefits 372

Division 1—What is a car benefit? 372

3 Definitions.................................372

4 Car benefits................................372

Division 2—Exempt car benefits 375

5 Exempt car benefits............................375

Division 3—Value of a car benefit 376

6 Method of valuing car benefits.....................376

Part 3—Health Insurance Benefits 378

Division 1—What is a health insurance benefit? 378

7 Health insurance benefits........................378

Division 2—Value of a health insurance benefit 379

8 Value of health insurance benefits...................379

Part 4—Housing Benefits 380

Division 1—What is a housing benefit? 380

9 Definitions.................................380

10 Housing benefits.............................381

Division 2—Exempt housing benefits 382

11 Exempt housing benefits.........................382

Division 3—Value of a housing benefit 383

12 Method of valuing housing benefits..................383

Part 5—Loan Benefits 386

Division 1—What is a loan benefit? 386

13 Definitions.................................386

14 Loan benefits...............................386

Division 2—Exempt loan benefits 389

Division 3—Value of a loan benefit 391

16 Method of valuing loan benefits....................391

17 What is a housing loan?.........................392

18 What is a relevant interest?.......................393

Part 6—School Fees Benefits 395

Division 1—What is a school fees benefit? 395

19 Definition.................................395

20 School fees benefits............................395

Division 2—Value of a school fees benefit 396

21 Value of school fees benefits......................396

Schedule 5—Application, Saving and Transitional Provisions 396

1 Definitions.................................397

2 Application and transitional provisions: amendments relating to tightening the activity test administration and simplifying the penalty periods that apply to youth training allowance              397

3 Application provision: amendments relating to unemployment due to industrial action              398

4 Application provision: amendments relating to the abolition of the minimum rate of payment to under 18 year old youth training allowance recipients              398

5 Application provision: abolition of the earnings credit scheme..398

6 Application provision: amendments relating to the application of the below threshold deeming rate              398

6A Application and transitional provisions: amendments relating to simplifying the penalty periods that apply to youth training allowance              399

7 Application provision: income maintenance periods.........400

8 Application provision: amendments relating to the liquid assets test waiting period              400

9 Application and saving provisions: debts due to the Commonwealth and their recovery              401

 

An Act to provide certain benefits to students and young people and for other purposes

Do not : placeholder

Do not e : placeholder

This Act may be cited as the Student and Youth Assistance Act 1973.

This Act shall come into operation on a date to be fixed by Proclamation.

 (1) In this Act, unless the contrary intention appears:

accumulated FS debt has the meaning given by subsection 12ZF(2) or (3).

actual repayments, in relation to financial supplement, at a particular time, means the sum of the amounts actually repaid in respect of the financial supplement before that time.

adjusted parental income, for the purposes of Part 4A, has the meaning given by the regulations.

Agency means the Commonwealth Services Delivery Agency established by the Agency Act.

Agency Act means the Commonwealth Services Delivery Agency Act 1997.

amount notionally repaid, in relation to financial supplement, has the meaning given by subparagraph 12ZA(10)(b)(ii).

amount outstanding, in relation to a financial supplement contract, has the meaning given by section 12X.

CEO means the Chief Executive Officer of the Agency.

Commissioner means the Commissioner of Taxation.

contract period, in relation to a financial supplement contract, means the period beginning when the contract was entered into and ending on 31 May in the year in which the last of the periods of 12 months referred to in paragraph 12X(3)(b) ends.

current special educational assistance scheme means:

 (a) the Assistance for Isolated Children Scheme; or

 (b) the ABSTUDY Scheme (also known as the Aboriginal Study Assistance Scheme); or

 (c) the Aboriginal Overseas Study Assistance Scheme.

discount, in relation to a repayment of an amount of financial supplement, has the meaning given by section 12ZA.

education institution means:

 (a) a higher education institution;

 (b) a technical and further education institution; or

 (c) a secondary school;

and includes any other educational institution, or any other institution, authority or body, in Australia that, under the regulations, is to be treated as an education institution for the purposes of this Act.

eligible student, for the purposes of Part 4A, has the meaning given by section 12C.

employee has the same meaning as in the Public Service Act 1922.

employee, in relation to the Agency, has the same meaning as in the Agency Act.

financial corporation means:

 (a) a foreign corporation within the meaning of paragraph 51(xx) of the Constitution whose sole or principal business activities in Australia are the borrowing of money and the provision of finance; or

 (b) a financial corporation within the meaning of that paragraph;

and includes a bank.

financial supplement means a loan made by a participating corporation under a financial supplement contract to the other party to the contract.

financial supplement contract means a contract in force as provided by subsection 12K(2).

former special educational assistance scheme means:

 (a) the former Aboriginal Secondary Assistance Scheme; or

 (b) the former Adult Secondary Education Assistance Scheme; or

  (c) the former Secondary Allowances Scheme; or

 (d) the former Living Allowance for English as a Second Language Scheme.

FS assessment debt means an amount that is required to be paid in respect of an accumulated FS debt under section 12ZK and is included in a notice of an assessment made under section 12ZM.

FS debt has the meaning given by subsection 12ZF(1).

higher education institution means an educational institution in Australia that, under the regulations, is to be treated as a higher education institution for the purposes of this Act.

index number, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.

indexation amount, in relation to a financial supplement contract, has the meaning given by section 12Y.

late payment charge means an amount payable to the Commonwealth under any of the following provisions as currently or previously in force:

 (a) paragraph 40(2)(a);

 (b) subsection 246(3), or any other prescribed provision, of the Social Security Act 1947;

 (ba) section 1229 or 1229A, or any other prescribed provision, of the Social Security Act 1991;

 (c) subsection 205(5), or any other prescribed provision, of the Veterans’ Entitlements Act 1986.

notional repayments, in relation to financial supplement, at a particular time, means the sum of the amounts notionally repaid in respect of the financial supplement before that time.

office, in relation to a financial corporation, has the meaning given by the regulations.

officer means a person performing duties, or exercising powers or functions, under or in relation to this Act and, in relation to a provision of Division 3 of Part 10, includes:

 (a) a person who has been such a person; and

 (b) a person who is or has been appointed or employed by the Commonwealth and who, as a result of that appointment or employment, may acquire or has acquired information concerning a person under this Act; and

 (c) a person who, although not appointed or employed by the Commonwealth, performs or did perform services for the Commonwealth and who, as a result of performing those services, may acquire or has acquired information concerning a person under this Act.

participating corporation has the meaning given by subsection 12D(2).

prescribed benefit, for the purposes of Part 4A, in relation to the AUSTUDY scheme or the ABSTUDY scheme, means a benefit under the scheme concerned that is declared by the regulations to be a prescribed benefit for the purposes of that Part.

prescribed educational scheme overpayment  means an amount paid under a prescribed education scheme that should not have been paid.

principal sum, in relation to a financial supplement contract, at a particular time, means the total of the amounts of financial supplement paid under the contract before that time by the relevant participating corporation to the other party to the contract.

protected information means information about a person that has been obtained for the purposes of this Act and is held in the records of the Department of Employment, Education and Training or of the Department of Social Security or of the Agency.

Reserve means the Students (Financial Supplement) Reserve established by section 12M.

secondary school means a school in Australia that, under the regulations, is to be treated as a secondary school for the purposes of this Act.

Secretary means Secretary to the Department.

service arrangements has the same meaning as in the Agency Act.

Social Security or Veterans’ legislation overpayment means:

 (a) an amount paid under the Social Security Act 1947:

 (i) that should not have been paid; or

 (ii) that was paid solely because of a decision under subsection 136(2A) of that Act; or

 (aa) an amount paid under the Social Security Act 1991:

 (i) that should not have been paid; or

 (ii) that was paid solely because of a decision under:

 (A) subsection 533(2) of that Act; or

 (C) subsection 675(2) of that Act; or

 (D) subsection 738(2) of that Act; or

 (b) an amount paid under the Veterans’ Entitlements Act 1986 or the Seamen’s War Pensions and Allowances Act 1940 that should not have been paid.

special educational assistance scheme overpayment  means an amount paid under a current special educational assistance scheme, or a former special educational assistance scheme, that should not have been paid.

student, in Part 4A, has a meaning affected by subsection 12B(2).

student assistance means assistance under this Act by way of a benefit under the AUSTUDY scheme.

student assistance benefit means a payment under:

 (a) the AUSTUDY scheme; or

 (b) the Student Financial Supplement Scheme; or

 (c) a current or former special educational assistance scheme.

student assistance overpayment means:

 (a) an amount paid under the AUSTUDY scheme that should not have been paid; or

 (b) a debt due by a person other than a financial corporation to the Commonwealth under paragraph 12S(2)(d) or 12U(2)(c).

Student Financial Supplement Scheme means the scheme constituted by Part 4A for the payment of financial supplement to students.

subsidy means subsidy under an agreement referred to in section 12D.

technical and further education institution means an educational institution in Australia that, under the regulations, is to be treated as a technical and further education institution for the purposes of this Act.

termination date, in relation to a financial supplement contract, means the last day of the contract period.

year means a calendar year.

youth training allowance overpayment means an amount purported to have been paid under Part 8 but that should not have been paid.

 (2) For the purposes of the definitions of education institution, higher education institution, secondary school and technical and further education institution in subsection (1), a reference to Australia includes a reference to the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands.

 (3) A person who, although not employed by the Commonwealth, performs services for the Commonwealth shall be taken, for the purposes of this Act, to be included within the definition of employee in subsection (1).

 (1) This Act other than:

 (a) Part 8 but subject to section 249; and

 (b) Part 9, in so far as it relates to youth training allowance; and

 (c) Part 10, in so far as it relates to youth training allowance but subject to subsection 342(2);

binds the Crown in all its capacities.

 (2) Nothing in this Act permits the Crown to be prosecuted for an offence.

This Act extends to the Territory of Christmas Island and to the Territory of Cocos (Keeling) Islands.

The Secretary is, subject to any directions of the Minister, to have the general administration of this Act.

In administering this Act, the Secretary is to have regard to:

 (a) the desirability of achieving the following results:

 (i) the ready availability to members of the public of advice and information services relating to benefits under this Act;

 (ii) the ready availability of publications containing clear statements about entitlements under this Act and procedural requirements;

 (iii) the delivery of services under this Act in a fair, courteous, prompt and cost-efficient manner;

 (iv) a process of monitoring and evaluating delivery of programs with an emphasis on the impact of programs on people who receive benefits under this Act;

 (v) the establishment of procedures to ensure that abuses of the schemes for benefits under this Act are minimised; and

 (b) the special needs of disadvantaged groups in the community; and

 (c) the need to be responsive to Aboriginality and to cultural and linguistic diversity; and

 (d) the importance of the systems of review of decisions under this Act; and

 (e) the need to apply government policy in accordance with the law and with due regard to relevant decisions of the Administrative Appeals Tribunal and the Social Security Appeals Tribunal.

Note: In administering this Act, the Secretary is also bound by the Privacy Act 1988 and by the provisions of this Act concerning confidentiality—see Division 3 of Part 10.

Do not e : placeholder

The scheme for the provision of benefits under this Part is referred to as the AUSTUDY scheme.

In this Part, unless the contrary intention appears:

Australian resident means a person who is not an Australian citizen but who resides in Australia and is the holder of:

 (a) a permanent visa; or

 (b) a special category visa.

exempt resident means an Australian resident who:

 (a) was the holder of a subclass 820 visa—Extended eligibility (spouse); or

 (b) was the holder of a subclass 826 visa—Interdependency; or

 (c) is the holder of a subclass 832 visa—Close ties; or

 (d) is the holder of a subclass 833 visa—Certain unlawful noncitizens; or

 (e) is the holder of a visa in a class of visas determined by the Minister for the purposes of this paragraph.

family member, in relation to a person, means:

 (a) a partner of the person; or

 (b) a dependent child of the person.

holder, in relation to a visa, has the same meaning as in the Migration Act 1958.

parent includes an adoptive parent.

partner, in relation to a person who is a member of a couple, means the other member of the couple.

permanent protection visa has the same meaning as in the Migration Act 1958.

permanent visa has the same meaning as in the Migration Act 1958.

special category visa has the same meaning as in the Migration Act 1958.

visa has the same meaning as in the Migration Act 1958.

 (1) A person is not to be treated, for the purposes of this Part, as residing in Australia unless the person intends to remain permanently in Australia.

 (2) In deciding whether or not a person intends to remain permanently in Australia, regard must be had to the following:

 (a) the nature of the accommodation used by the person in Australia;

 (b) the nature and extent of the family relationships the person has in Australia;

 (c) the nature and extent of the person’s employment, business or financial ties with Australia;

 (d) the nature and extent of the person’s assets located in Australia;

 (e) the frequency and duration of the person’s travel outside Australia;

 (f) any other matter relevant to determining whether the person intends to remain permanently in Australia.

 (1) A person is a refugee for the purposes of this Part if the person is the holder of a permanent protection visa or a permanent visa in any of the following classes of permanent visa referred to in Schedule 1 to the Migration Regulations:

 (a) Ahmadi (Special Assistance) (Class BJ);

 (b) Burmese in Burma (Special Assistance) (Class AB);

 (c) Burmese in Thailand (Special Assistance) (Class AC);

 (d) Cambodian (Special Assistance) (Class AE);

 (e) Camp Clearance (Migrant) (Class AF);

 (f) Citizens of the Former Yugoslavia (Special Assistance) (Class A1);

 (g) East Timorese in Portugal, Macau and Mozambique (Special Assistance) (Class AM);

 (h) Minorities of Former USSR (Special Assistance) (Class AV);

 (i) Refugee and Humanitarian (Migrant) (Class BA);

 (j) Sri Lankan (Special Assistance) (Class BF);

 (k) Sudanese (Special Assistance) (Class BD);

 (l) Territorial Asylum (Residence) (Class BE);

 (m) Vietnamese (Special Assistance) (Class BK).

 (2) A person is a refugee for the purposes of this Part if the person is the holder of a permanent visa in a class of visas determined by the Minister for the purposes of this subsection.

A person (the child) is, for the purposes of this Part, taken to be a dependent child of another person if the other person is a parent of the child and the child:

 (a) is under 18 and wholly or substantially in the parent’s care and control (whether alone or jointly with someone else); or

 (b) is 18 or older and financially, psychologically or physically dependent on the parent (whether alone or jointly with someone else).

 (1) Subject to subsection (2), a person is a member of a couple for the purposes of this Part if:

 (a) the person is legally married to another person and is not living separately and apart from the other person on a permanent or indefinite basis; or

 (b) all of the following conditions are met:

 (i) the person has a relationship with a person of the opposite sex (in this paragraph called the partner);

 (ii) the person is not legally married to the partner;

 (iii) the relationship between the person and the partner is a marriage-like relationship;

 (iv) both the person and the partner are over the age of consent applicable in the State or Territory in which they live;

 (v) the person and the partner are not within a prohibited relationship for the purposes of section 23B of the Marriage Act 1961.

 (2) For the purposes of subparagraph (1)(b)(iii), 2 people are not in a marriage-like relationship if they are living separately and apart from each other on a permanent or indefinite basis.

 (1) For the purposes of this Part a change of circumstances resident is a person to whom subsection (2) applies.

 (2) This subsection applies to an Australian resident who is 21 or younger and:

 (a) who became an orphan after entering Australia; or

 (b) whose parents, or whose only parent, began serving a sentence of imprisonment for life, or for a term of at least 10 years, after the person entered Australia; or

 (c) whose parents, or whose only parent, became mentally incapacitated after the person entered Australia, and are likely to remain so for an indefinite period; or

 (d) whose parents, or whose only parent, started living in a nursing home after the person entered Australia, and are likely to continue living in a nursing home for an indefinite period; or

 (e) whose parents, or whose only parent, went missing after the person entered Australia; or

 (f) who is unable to live with his or her parents, or with his or her only parent, because of extreme family breakdown or because to do so would seriously endanger the person’s physical or mental well-being due, for example, to actual or threatened violence, sexual abuse or other similar behaviour; or

 (g) who does not live with his or her parents, or with his or her only parent, but who is in the lawful custody, control or guardianship of another person; or

 (h) who does not live with his or her parents, or with his or her only parent, and who, only because of reaching a particular age, stopped being in the lawful custody, control or guardianship of another person.

 (3) Subsection (2) ceases to apply to a person if:

 (a) where paragraph (2)(b) applied to a person—the person’s parents are, or parent is, released from gaol; or

 (b) where paragraph (2)(c) applied to a person—the person’s parents, or parent, ceases to be mentally incapacitated; or

 (c) where paragraph (2)(d) applied to a person—the person’s parents, or parent, ceases living in a nursing home; or

 (d) where paragraph (2)(e) applied to a person—the person’s parents are, or parent is, located; or

 (e) where paragraph (2)(f) applied to a person—the person recommences living with his or her parents or parent.

For the purposes of this Part, a person is taken to be a post-1996 Australian resident if he or she:

 (a) first entered Australia as an Australian resident or as the holder of a permanent visa on or after 1 January 1997; or

 (b) last entered Australia on or after 1 January 1997 and subsequently became an Australian resident.

 (1) For the purposes of this Part, an Australian resident (other than a New Zealand citizen) who is not a post-1996 Australian resident is taken to be a pre-1997 Australian resident.

 (2) For the purposes of this Part, an Australian resident who is a New Zealand citizen and who is not a post-1996 Australian resident is taken to be a pre-1997 Australian resident provided he or she has lived in Australia continuously for the last 26 weeks, or has, during the last 52 weeks, not been absent from Australia for a period of, or periods totalling, more than 8 weeks.

A determination by the Minister for the purposes of paragraph (e) of the definition of exempt resident in section 6A, or for the purposes of subsection 6C(2), is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

 (1) Subject to and in accordance with this section, sections 8 and 9 and the regulations, the Secretary may grant a benefit under this Part to a person who:

 (a) is an Australian citizen, a pre-1997 Australian resident or a post-1996 Australian resident;

 (b) is enrolled, or proposes to enrol, as a student of an education institution for that year or that part of that year; and

 (c) is undertaking, or proposes to undertake, wholly at that institution in that year or that part of that year:

 (i) a course of study or instruction that the Minister has determined in writing to be a secondary course, or a tertiary course, for the purposes of this section; or

 (ii) a part of a course of study or instruction, being a part that the Minister has determined in writing to be a part of a secondary course, or a part of a tertiary course, for the purposes of this section.

 (1A) The Secretary must not grant a benefit under this Part to a person who is subject to a waiting period if that period has not ended (see sections 8 and 9).

 (2) Without limiting the generality of matters that may be dealt with by the regulations the regulations may:

 (a) specify the benefits that may be granted under this Part; and

 (b) specify circumstances in which benefits are not payable under this Part.

 (3) Where a person undertaking:

 (a) a course of study or instruction; or

 (b) a part of a course of study or instruction;

offered by an education institution is required or allowed by that institution to attend, and attends, for the purposes of that course, or that part of the course, a place other than that institution (not being a place in respect of which a determination under subsection (4) is in force), the person shall, for the purposes of paragraph (1)(c), be taken to be undertaking that course or that part of the course wholly at that institution.

 (4) The Minister may determine, in writing, that subsection (3) does not apply in relation to a place, or to a class of places, specified in the determination.

 (5) Where a person is undertaking, or proposes to undertake, by correspondence with an education institution:

 (a) a course of study or instruction; or

 (b) a part of a course of study or instruction;

offered by that education institution, the person shall, for the purposes of paragraph (1)(c), be taken to be undertaking that course, or that part of that course, wholly at that institution.

 (6) A determination under subparagraph (1)(c)(i) or (ii) or subsection (4) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

 (7) Subsection (6) does not apply to a determination made before the date of commencement of that subsection (which was also the date of commencement of section 4 of the Student Assistance Amendment Act 1991).

 (8) A person who received a benefit under this Part during any period being:

 (a) the part of a year beginning on 1 January and ending on 31 May; or

 (b) the part of a year beginning on 1 July and ending on 30 September;

may, before the end of the period, repay to the Commonwealth the whole or any part of the benefit and, if an amount of benefit is so repaid, the amount is taken, for the purposes of this Act, never to have been paid to the person.

 (1) A post-1996 Australian resident is subject to a waiting period.

 (2) Subsection (1) does not apply to the following:

 (a) a refugee;

 (b) a person who was a family member of a refugee when the refugee arrived in Australia;

 (c) an exempt resident;

 (d) a person while the person is a change of circumstances resident.

 (1) If a person is not a New Zealand citizen and is subject to a waiting period, the period:

 (a) starts on the day on which the person:

 (i) entered Australia; or

 (ii) was granted a permanent visa;

  whichever last occurs; and

 (b) ends when the person has been in Australia for a period of, or periods totalling, 104 weeks after that day.

 (2) If a person is a New Zealand citizen and is subject to a waiting period, the period:

 (a) starts on the day on which the person became an Australian resident; and

 (b) ends when the person has been in Australia for a period of, or periods totalling, 104 weeks after that day.

 (3) For the purposes of subsection (1), the day on which a permanent visa is granted to a person is:

 (a) if an initial decision maker decides to grant a visa to the person—that day; or

 (b) if:

 (i) an initial decision maker decides not to grant a visa to the person; and

 (ii) on a review of the decision referred to in subparagraph (i), that decision is set aside (however described) and a visa is granted to the person;

  the day on which the initial decision maker decided not to grant the visa to the person.

Do not e : placeholder

 (1) The Secretary may authorise the payment of an advance on account of any benefit that is expected to become payable under student assistance.

The regulations may make provision for and in relation to the suspension and termination of benefit payable under student assistance.

 (1) The object of this Part is to enable a tertiary student who is, or except for the AUSTUDY parental income test or the ABSTUDY parental income test would be, eligible for certain benefits under the AUSTUDY scheme or the ABSTUDY scheme to obtain a repayable financial supplement by choosing to enter into a contract for that purpose with a financial corporation that participates in the Student Financial Supplement Scheme.

 (2) The payment of financial supplement will reduce certain other benefits payable to the student under the AUSTUDY scheme or ABSTUDY scheme. The amount of the supplement that the student is eligible to obtain depends on the total amount of those benefits that the student chooses to receive, and the student may choose to repay some of the benefits, or to receive lower benefits, in order to receive a higher supplement.

 (3) The student is not liable to pay interest to the financial corporation in respect of financial supplement obtained, but the Commonwealth will, without cost to the student, pay a subsidy to the financial corporation that includes an amount in lieu of interest.

 (4) However, the amount of the financial supplement that has to be repaid under a contract will be indexed on 1 June in the year next following the year in which the contract is entered into and on 1 June in each subsequent year. The amount by which supplement is increased by indexation is owed by the student to the Commonwealth and not to the financial corporation. The student is entitled, but not required, to make early repayments above a certain amount in respect of the supplement during the period of the contract. There is a 15% discount for any repayments before the end of that period.

 (5) If financial supplement obtained by a student is not repaid in full before the end of the period of the contract, the obligation to repay the amount of the supplement that is still outstanding is assigned to the Commonwealth and the indexed amount is repayable by the student to the Commonwealth through the taxation system when the student’s income reaches a certain level.

 (1) In this Part, unless the contrary intention appears, expressions that are defined in the Income Tax Assessment Act 1936 have the same meanings as in that Act.

  (2) For the purposes of the application of this Part in relation to a person at a time after the person entered or first entered into a financial supplement contract with a participating corporation, the person is called a student even though the contract period or any contract period may have ended or the person may have ceased to be a student.

 (1) A person is an eligible student for the purposes of this Part in relation to a year or a part of a year if:

 (a) the person is undertaking, or proposes to undertake, at an education institution in that year or that part of that year, a prescribed course of study or instruction; and

 (b) either of the following subparagraphs applies:

 (i) the person qualifies, or apart from this Part would qualify, for a prescribed benefit under the AUSTUDY scheme or the ABSTUDY scheme in respect of that year or that part of that year;

 (ii) the adjusted parental income in relation to the person in respect of that year or that part of that year is less than such amount as is prescribed by the regulations and, except for the parental income test applicable under the AUSTUDY scheme or ABSTUDY scheme, the person would have qualified for a prescribed benefit under that scheme in respect of that year or that part of that year.

 (2) Subsections 7(3) to (7) have effect for the purposes of paragraph (1)(a) of this section in the same way as they have effect for the purposes of paragraph 7(1)(c).

 (1) An eligible student may apply for financial supplement only to a financial corporation that has entered into an agreement with the Commonwealth to pay financial supplement in accordance with this Act.

 (2) Subject to this section, if the Minister has, whether before or after the commencement of this Part, entered into, on behalf of the Commonwealth, an agreement with a financial corporation for the payment by the corporation, in the year beginning on 1 January 1993 or a subsequent year, of financial supplement to eligible students, the corporation is a participating corporation for the purposes of this Part in respect of that year.

 (3) Subsection (2) does not apply in relation to an agreement unless the agreement:

 (a) is expressed to have effect subject to this Act; and

 (b) provides for the payment by the Commonwealth to the financial corporation, in respect of each amount of financial supplement paid by the corporation to a student that has not been repaid, or in respect of which the rights of the corporation have been assigned to the Commonwealth, of a subsidy of such amount or amounts, or at such rate or rates, and in respect of such period or periods, as are stated in the agreement.

 (4) Subject to subsection (5), the parties to an agreement referred to in subsection (2) (or such an agreement as previously amended) may enter into an agreement amending or terminating the first-mentioned agreement (or that agreement as previously amended).

 (5) The amendment or termination of an agreement does not affect any financial supplement contract that was in force immediately before the amendment or termination took effect.

 (6) An agreement entered into between the Commonwealth and a financial corporation as mentioned in this section is not subject to any stamp duty or other tax under a law of a State or Territory.

 (7) An officer may disclose to a participating corporation any information about a student that is relevant to the exercise or performance by the corporation of any of its rights or obligations in respect of the student under this Part.

 (8) A participating corporation may disclose to an officer any information about a student that is relevant to the exercise or performance of any rights, powers or obligations conferred or imposed on an officer or on the Commonwealth in respect of the student under this Part.

This Division sets out how an eligible student can, if he or she so chooses, obtain financial supplement, the amount of the financial supplement that can be obtained and the effect of payment of the financial supplement on the student’s entitlement to certain other benefits under the AUSTUDY scheme or the ABSTUDY scheme.

 (1) The Secretary must:

 (a) decide whether a person (the student) who seeks to obtain financial supplement in respect of a year or a part of a year is an eligible student in respect of that year or that part of that year; and

 (b) give to the student written notice of the decision stating whether the student is an eligible student in respect of that year or that part of that year and, if so, stating:

 (i) the minimum and maximum amounts, as determined under the regulations, of the financial supplement that the student is eligible to obtain; and

 (ii) such other information as is required by the regulations to be included in such a notice.

 (2) If the notice states that the student is an eligible student, the Secretary must give to the student a form of application for the financial supplement approved by the Secretary.

 (3) At any time, whether before or after the student has lodged an application for the financial supplement with a participating corporation under section 12G, the Secretary may review the decision and must, if the decision is revoked or varied, give to the student:

 (a) a notice under paragraph (1)(b) stating that the decision has been revoked or varied and, if the decision has been varied, setting out particulars of the variation; and

 (b) if the decision has been varied before the student lodged an application for the financial supplement—a fresh form of application.

 (4) If a notice is given to the student as mentioned in subsection (3), any notice previously given to the student under paragraph (1)(b) before the decision was reviewed is taken to be revoked and the student is not entitled to use any previous notice in connection with an application for financial supplement under section 12G.

 (1) If a person receives a notice under section 12F stating that the person is an eligible student in respect of a year or a part of a year, the person may choose to apply for the whole or a part of the financial supplement that the person is eligible to obtain as stated in the notice by lodging the form of application for the financial supplement, duly completed, together with the notice, at any office of a participating corporation.

 (2) At any time after a person applies to a participating corporation for an amount of financial supplement, the person may:

 (a) if he or she has not received any payment of financial supplement in respect of the application—withdraw the application by written notice to the corporation lodged at any office of the corporation; or

 (b) otherwise—by written notice to the corporation lodged at any office of the corporation tell the corporation that the person requires:

 (i) a specified lesser amount of financial supplement (not being an amount that is less than the total financial supplement already received); or

 (ii) a specified greater amount of financial supplement (not being an amount that is greater than the maximum amount of financial supplement that the person is eligible to obtain).

 (1) The payment of financial supplement to a person will, as mentioned in subsection 12A(2), reduce the person’s entitlement to certain other benefits under the AUSTUDY scheme or the ABSTUDY scheme in accordance with subsection (2).

 (2) If:

 (a) apart from this section a person would be entitled to a prescribed benefit under the AUSTUDY scheme or the ABSTUDY scheme in respect of a year or a part of a year; and

 (b) an application by the person to a participating corporation for financial supplement in respect of that year or that part of that year is accepted by the corporation in accordance with section 12K;

the benefit referred to in paragraph (a) is reduced by an amount equal to one-half of the amount of the financial supplement paid to the person.

 (3) If, apart from this subsection, the amount by which a benefit would be reduced by subsection (2) is an amount of dollars and cents and the cents include a half of one cent, the amount is increased by a half of one cent.

This Division sets out the legal relationship between a person who applies for financial supplement and the financial corporation that pays the financial supplement. An application for financial supplement relates only to a year or a part of a year and a separate contract between the person and the corporation therefore arises in respect of each year or part of a year for which an application for financial supplement is made.

 (1) If a person (the student) who is entitled to do so applies to a participating corporation in accordance with section 12G for the payment of financial supplement in respect of a year or a part of a year, the corporation must, as soon as practicable, accept the application by written notice to the student.

 (2) The acceptance of the application forms a binding contract in respect of that year or that part of that year between the corporation and the student for the making of a loan by the corporation to the student in accordance with this Division of such amount of financial supplement as the student from time to time requests but not exceeding the maximum amount of financial supplement that the student is from time to time eligible to obtain and for the making, if the student so wishes, of repayments during the contract period in accordance with Division 5 in respect of the amount outstanding from time to time under the contract.

 (3) Despite subsection (2), any amount paid to the student by the corporation in accordance with advice provided by the Commonwealth is taken to be financial supplement paid under the contract even though the student may not have been eligible to obtain that amount.

 (4) Subsection (3) does not affect the operation of Division 4.

 (5) In determining the extent (if any) to which it is liable to make a payment in respect of financial supplement to a student under a financial supplement contract, a participating corporation is entitled to rely on advice provided by the Commonwealth.

 (6) Subject to this Part, the validity of a financial supplement contract is not affected merely because the student was not an eligible student when the application was accepted or ceases at a later time to be an eligible student.

 (7) A financial supplement contract is not invalid, and is not voidable, under any other law (whether written or unwritten) in force in a State or Territory.

 (8) Without limiting the generality of subsection (7), a financial supplement contract is not invalid merely because the student is an undischarged bankrupt when the contract is entered into, and any liability of the student to a participating corporation or the Commonwealth under or because of the contract is enforceable despite the bankruptcy.

 (1) A law of a State or Territory relating to the provision of credit or other financial assistance does not apply to a financial supplement contract.

 (2) An application for the payment of financial supplement, a financial supplement contract, or an act or thing done or transaction entered into under such a contract, is not subject to taxation under any law of a State or Territory.

 (1) This subsection establishes a reserve called the Students (Financial Supplement) Reserve.

 (2) The Reserve is a component of the Reserved Money Fund.

 (1) A participating corporation that is liable to make a payment in respect of financial supplement to a student under a financial supplement contract must, unless the agreement between the corporation and the Commonwealth under section 12D otherwise provides, make the payment to the Commonwealth as its agent for the purpose of passing on the amount of the payment to the student in accordance with subsection (2).

 (2) An amount equal to any amount paid by a participating corporation to the Commonwealth under subsection (1) in respect of a student is to be paid into the Reserve out of the Consolidated Revenue Fund and:

 (a) when it is paid into the Reserve, an amount equal to that amount is to be paid out of the Reserve to the student on behalf of the corporation; and

 (b) the amount so paid to the student is taken to be an amount paid to the student by the corporation in discharge of its liability under the contract to pay that amount to the student.

 (3) If, after an amount paid by a participating corporation to the Commonwealth in respect of a student under subsection (1) is paid into the Reserve, it is found, for any reason, not to be possible to pass on the amount to the student under paragraph (2)(a), an amount equal to the first-mentioned amount is to be paid as soon as practicable out of the Reserve to the corporation.

This Division provides for payments in respect of financial supplement to stop if the person in receipt of the financial supplement so requests, ceases to be, or is found never to have been, eligible for the financial supplement, or dies.

 (1) A student who is a party to a financial supplement contract with a participating corporation may, by written notice to the corporation lodged at any office of the corporation, tell the corporation that he or she does not require any further payments under the contract after a day stated in the notice.

 (2) If notice is so given to the corporation:

 (a) as from the end of the day stated in the notice, the corporation is discharged from liability to make further payments to the student under the contract; but

 (b) if, despite paragraph (a), the corporation makes any payments to the student after that day, any amounts so paid after that day or the end of 4 weeks after the notice was given to the corporation, whichever is the later:

 (i) are taken not to be payments of financial supplement made under the contract; and

 (ii) are repayable by the student to the corporation; and

 (iii) may be recovered by the corporation as a debt due to it by the student.

 (1) If the Secretary decides that a student who is a party to a financial supplement contract with a participating corporation ceased to be an eligible student during the year or the part of the year to which the contract relates, the Secretary must give written notice to the student and to the corporation stating that the student ceased to be an eligible student and stating the date on which the student so ceased.

 (2) If notice is so given to the corporation, then, unless the decision of the Secretary under subsection (1) is set aside or varied:

 (a) as from the time when the notice was given to the corporation, the corporation is discharged from liability to make further payments to the student under the contract; but

 (b) if, despite paragraph (a), the corporation makes any payments to the student after that time, any amounts so paid after the end of 4 weeks after the notice was given to the corporation:

 (i) are taken not to be payments of financial supplement made under the contract; and

 (ii) are repayable by the student to the corporation; and

 (iii) may be recovered by the corporation as a debt due to it by the student.

 (3) This section has effect subject to section 12ZX.

 (1) If the Secretary decides that the student to whom a notice is given under subsection 12R(1) failed to notify the Department under section 48 that he or she had ceased to be an eligible student within 7 days after he or she so ceased, the Secretary may give written notice of the decision to the student and to the corporation.

 (2) If notice is so given, then, unless the decision of the Secretary under subsection (1) is set aside or varied:

 (a) the corporation’s rights in respect of the student under the contract that relate to financial supplement paid by the corporation to the student after the end of the date stated in the notice given by the Secretary to the student under subsection 12R(1) and before the end of the period of 4 weeks referred to in paragraph 12R(2)(b) (wrongly paid financial supplement) are assigned to the Commonwealth, by force of this paragraph, at the time when the notice was given to the corporation; and

 (b) any actual repayments of financial supplement made by the student before the notice was given to the student are taken to have been made:

  (i) first, in or towards repayment of the wrongly paid financial supplement; and

 (ii) secondly, to the extent (if any) to which the sum of those repayments exceeded the amount of the wrongly paid financial supplement, in or towards repayment of the remainder of the financial supplement paid to the student under the contract; and

 (c) the Commonwealth is liable to pay to the corporation in respect of the rights referred to in paragraph (a), the amount of any wrongly paid financial supplement that has not been repaid; and

 (d)  the student is liable to pay to the Commonwealth an amount equal to the sum of:

 (i) the amount that the Commonwealth is liable to pay to the corporation under paragraph (c); and

 (ii) the part of the total subsidy paid by the Commonwealth to the corporation in respect of the financial supplement paid to the student under the contract that was paid in lieu of interest on the principal sum in respect of the period beginning at the end of the period of 7 days referred to in subsection (1) and ending at the end of the period of 4 weeks referred to in paragraph 12R(2)(b).

 (3) Nothing in this section affects the operation of section 12R.

 (1) If:

 (a) a student is a party to a financial supplement contract with a participating corporation; and

 (b) the Secretary decides that the statement contained in the notice given to a student under paragraph 12F(1)(b) that the student was an eligible student in respect of the year or the part of the year to which the contract relates was incorrect;

the Secretary must give written notice to the student and to the corporation stating that the student had never been eligible for financial supplement in respect of that year or that part of that year.

 (2) If notice is so given, then, unless the decision of the Secretary under subsection (1) is set aside or varied:

 (a) as from the time when the notice was given to the corporation, the corporation is discharged from liability to make further payments to the student under the contract; but

 (b) if, despite paragraph (a), the corporation makes any payments to the student after that time, any amounts so paid after the end of 4 weeks after the notice was given to the corporation:

  (i) are taken not to be payments of financial supplement made under the contract; and

 (ii) are repayable by the student to the corporation; and

 (iii) may be recovered by the corporation as a debt due to it by the student.

 (3) This section has effect subject to section 12ZX.

 (1) If the Secretary decides that the incorrectness of the statement referred to in paragraph 12T(1)(b) resulted from false or misleading information provided to the Commonwealth in relation to the student, the Secretary may give written notice of the decision to the student and to the corporation.

 (2) If notice is so given, then, unless the decision of the Secretary under subsection (1) is set aside or varied:

 (a) the corporation’s rights in respect of the student under the contract that relate to financial supplement paid by the corporation to the student at any time after the beginning of the contract period and before the end of the period of 4 weeks referred to in paragraph 12T(2)(b) are assigned to the Commonwealth, by force of this paragraph, at the time when the notice was given to the corporation; and

 (b) the Commonwealth is liable to pay to the corporation in respect of those rights the amount worked out in relation to the contract, as at the end of that period of 4 weeks, using the formula:

principal sum    (actual repayments  +  notional repayments);

  and

 (c) no amount is taken to be outstanding under the contract after the notice is given but the student is liable to pay to the Commonwealth the amount worked out in relation to the contract, as at the end of that period of 4 weeks, using the formula:

principal sum   actual repayments  +  interest subsidy.

 (3) In the formula in paragraph (2)(c):

interest subsidy means the part of the total subsidy paid by the Commonwealth to the corporation in respect of the financial supplement paid to the student under the contract that was paid in lieu of interest on the principal sum.

 (4) Nothing in this section affects the operation of section 12T.

 (1) If a student who is a party to a financial supplement contract with a participating corporation dies during the contract period, the Secretary may give written notice to that effect to the corporation.

 (2) If notice is so given as a result of the death of a student:

 (a) the corporation’s rights in respect of the student under the contract are assigned to the Commonwealth, by force of this paragraph, at the time when the notice was given; and

 (b) the Commonwealth is liable to pay to the corporation in respect of those rights the amount worked out in relation to the contract, as at the time of the death, using the formula:

principal sum    (actual repayments  +  notional repayments);

  and

 (c) the indebtedness of the student to the Commonwealth under the contract as a result of the assignment is discharged by force of this paragraph.

This Division sets out how a student who is a party to a financial supplement contract (the contract) with a participating corporation may make repayments of financial supplement before the end of 4 years beginning on 1 June in the year next following the year in which the contract was entered into. Section 12X explains how the amount outstanding at any time under the contract (including the amount attributable to indexation, which is identified by section 12Y) is calculated. Section 12ZA explains how the discount for early repayment is calculated and applied.

 (1) Subject to this section, the amount outstanding under the contract at any time after the contract was entered into and before 1 June in the year next following the year in respect of which the contract was entered into is the amount worked out in relation to the contract, as at that time, using the formula:

principal sum minus (actual repayments plus discounts).

 (2) In subsection (1):

discounts means the sum of the discounts under subsection 12ZA(7) to which the student became entitled in respect of the financial supplement before the time mentioned in subsection (1).

  (3) Subject to the following provisions of this section, at any time during:

 (a) the period of 12 months beginning on 1 June in the year next following the year in respect of which a financial supplement contract was entered into; or

 (b) any of the following 3 periods of 12 months;

the amount outstanding under the contract is taken to be the amount worked out in relation to the period concerned using the formula:

 (4) For the purposes of the application of the formula in subsection (3) in relation to a time (the relevant time) within a period of 12 months beginning on 1 June (the relevant 12 months);

previous amount outstanding means the amount that was outstanding under the contract immediately before the beginning of the relevant 12 months.

actual repayments means the sum of the amounts actually repaid in respect of the financial supplement during the relevant 12 months but before the relevant time.

discounts means the sum of the discounts under subsection 12ZA(7) to which the student became entitled in respect of the financial supplement during the relevant 12 months but before the relevant time.

indexation factor means the number worked out to 3 decimal places in relation to the relevant 12 months using the formula:

the sum of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters

divided by

the sum of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.

later reference period means the period of 12 months immediately before the relevant 12 months.

earlier reference period means the period of 12 months immediately before the later reference period.

  (5) If an indexation factor worked out under subsection (4) would end with a number greater than 4 if it were worked out to 4 decimal places, the indexation factor is increased by 0.001.

 (6) If, apart from this subsection, an amount worked out under subsection (3) would be an amount of dollars and cents, the amount of the cents is to be disregarded.

 (7) This section has effect subject to paragraph 12U(2)(c).

An indexation amount exists in relation to the contract at a particular time (the relevant time) if:

 (a) subsection 12X(3) applied for the purpose of working out the amount outstanding under the contract at the relevant time; and

 (b) the amount outstanding under the contract at the relevant time exceeds the amount worked out using the formula:

principal sum    (actual repayments  +  notional repayments);

and the amount of the excess constitutes the indexation amount in relation to the contract at the relevant time.

If an amount is outstanding under the contract on 1 June in the year next following the year in respect of which the contract was entered into or on 1 June in any of the next 3 years, the Secretary must arrange for written notice to be given to the student stating the amount outstanding at that date.

 (1) Subject to paragraphs 12S(2)(d) and 12U(2)(c), the student is not required during the contract period to make a repayment in respect of the amount outstanding under the contract.

 (2) Non-payment by the student of the amount outstanding under the contract does not constitute a default under the contract for the purposes of any law of the Commonwealth, of a State or of a Territory.

 (3) Subject to subsection (4), the student may make to the corporation a repayment in respect of the amount outstanding under the contract at any time during the contract period.

  (4) The student is not entitled to make a repayment under subsection (3) that is less than an amount prescribed by the regulations unless the amount repaid is equal to the amount outstanding under the contract.

 (5) If the student purports to make a repayment under subsection (3) that exceeds the amount that, having regard to the discount to which the student would be entitled under subsection (7), would be needed to be paid in order to pay in full the amount outstanding under the contract, the excess is taken not to be a repayment in respect of the financial supplement and is to be repaid by the corporation to the student.

 (6) If the student makes a repayment as mentioned in subsection (3), the following provisions of this section have effect in relation to the amount of that repayment (the amount repaid) except:

 (a) to the extent (if any) to which that repayment is taken to have been made in or towards repayment of any wrongly paid financial supplement referred to in subsection 12S(2); or

 (b) in respect of a repayment made after the giving of a notice under section 12U.

 (7) The student is entitled for the purposes of this Part, in respect of the amount outstanding under the contract, to a discount (the discount) of an amount worked out using the formula:

 (8) If, apart from this subsection, an amount worked out under subsection (7) would be an amount of dollars and cents, the amount is to be rounded to the nearest dollar (rounding 50 cents upwards).

 (9) If no indexation amount existed in relation to the contract immediately before the repayment is made, the student is taken to have repaid to the corporation in respect of the financial supplement an amount (the amount notionally repaid) equal to the discount.

 (10) If an indexation amount existed in relation to the contract immediately before the repayment is made:

 (a) if the discount is equal to or less than the indexation amount—the amount outstanding under the contract is taken to be reduced by the amount of the discount; or

 (b) if the discount exceeds the indexation amount:

 (i) the amount outstanding under the contract is taken to be reduced by the indexation amount; and

 (ii) the student is taken to have repaid to the corporation in respect of the financial supplement an amount (the amount notionally repaid) equal to the excess.

 (11) The Commonwealth is liable to pay to the corporation an amount equal to the amount notionally repaid.

 (12) If, after the making of the repayment mentioned in subsection (6), the sum of the actual repayments and the notional repayments is equal to or exceeds the principal sum:

 (a) the corporation’s rights in respect of the student under the contract are assigned to the Commonwealth by force of this paragraph; and

 (b) if the sum of the actual repayments and the notional repayments exceeds the principal sum—the corporation is liable to pay the excess to the Commonwealth.

At the end of the contract period:

 (a) if the corporation’s rights in respect of the student under the contract have not previously been assigned to the Commonwealth, those rights are assigned to the Commonwealth by force of this paragraph; and

 (b) if the principal sum exceeds the sum of the actual repayments and the notional repayments, the Commonwealth is liable to pay the excess to the corporation.

 (1) The Secretary must, as soon as practicable after the termination date in relation to the contract, arrange for written notice to be given to the student:

 (a) stating that at the end of the contract period the student ceased to be indebted to the participating corporation under the contract and will not receive any discount for repayments made after that time; and

 (b) stating that on a date specified in the notice, being 1 June immediately following the termination date, the student incurred an FS debt or FS debts to the Commonwealth and setting out the amount of that debt or the amounts of those debts; and

 (c) stating that the student is entitled at any time to make a repayment in respect of that debt or those debts and that so much of that debt or those debts as is not voluntarily repaid by the student will be recovered under the taxation system in accordance with this Part.

  (2) If, after a notice was given to the student under subsection (1) or this subsection, the Secretary or an officer of the Department is satisfied that a material particular in the notice was not, or has ceased to be, correct, the Secretary must arrange for a further written notice to be given to the student setting out the correct particular.

 (3) A notice given to the student under this section is given for the purpose only of providing information to the student, and an FS debt of the student to the Commonwealth is not affected by a failure to give such a notice or by any incorrect statement in such a notice.

 (1) If the student considers that the notice given to the student under section 12ZC was not, or has ceased to be, correct in a material particular, the student may, within 14 days after the date on which the notice was given, or within such further period as the Secretary or an officer of the Department allows, give to the Secretary a written request for the notice to be corrected in respect of that particular.

 (2) A request must set out the particular that is considered to be incorrect and the grounds on which the student considers that particular to be incorrect.

 (3) The making of a request does not affect an FS debt of the student to the Commonwealth.

 (4) If a request is received by the Secretary, the Secretary must arrange, as soon as practicable, for the matter to which the request relates to be considered and for written notice to be given to the student of the decision on the request and, if it is decided as a result of that consideration that a material particular in the notice under section 12ZC was not, or has ceased to be, correct, for a further notice to be given to the student under subsection 12ZC(2).

This Division provides for the recovery through the taxation system of a student’s outstanding indebtedness in respect of financial supplement paid to the student and not repaid before the end of 4 years beginning on 1 June in the year next following the year in which the relevant financial supplement contract was entered into. The Division uses certain technical expressions to define:

  (a) a student’s indebtedness in respect of a contract under which the student received financial supplement for a year or a part of a year, which is called an FS debt; and

 (b) a student’s total indebtedness under such contracts, which is called accumulated FS debt; and

 (c) the amount that a student is assessed by the Commissioner of Taxation to be liable to pay in a particular year of income in respect of that total indebtedness, which is called an FS assessment debt.

 (1) If, at the end of the contract period in relation to a financial supplement contract between a participating corporation and another person, there was an amount outstanding under the contract, the person incurs on 1 June immediately following the end of that period a debt (FS debt) to the Commonwealth worked out using the formula:

amount outstanding    indexation factor

where:

amount outstanding means the amount outstanding under the contract at the end of the contract period.

indexation factor means the factor calculated under subsection (6).

 (2) If an FS debt or FS debts of a person that existed on 1 June in a year (the relevant date) are not, or do not include, an FS debt that existed on 1 June in the immediately preceding year, the person incurs on the relevant date an accumulated FS debt to the Commonwealth equal to that FS debt or the total of those FS debts.

 (3) If an FS debt or FS debts of a person that existed on 1 June in a year (the later date) are, or include, an FS debt or FS debts that existed on 1 June in the immediately preceding year (the earlier date), the person incurs on the later date an accumulated FS debt to the Commonwealth worked out using the formula:

(adjusted accumulated FS debt    indexation factor) + later FS
debts

where:

adjusted accumulated FS debt means the adjusted accumulated FS debt at the earlier date.

indexation factor means the factor calculated under subsection (6).

later FS debts means any FS debt, or the total of any FS debts, of the person that did not exist on the earlier date.

  (4) The reference in subsection (3) to the adjusted accumulated FS debt of a person at the earlier date is a reference to the amount worked out using the formula:

accumulated FS debt

minus

where:

accumulated FS debt means the accumulated FS debt of the person at the earlier date.

FSA debts means the sum of:

 (a) any FS assessment debt or FS assessment debts of the person assessed on or after the earlier date and before the later date excluding any such FS assessment debt assessed as a result of a return furnished before the earlier date; and

 (b) any FS assessment debt or FS assessment debts of the person assessed on or after the later date as a result of a return furnished before the later date.

repayments means any amount, or the sum of any amounts, paid, except in discharge of an FS assessment debt, on or after the earlier date and before the later date in reduction of the accumulated FS debt of the person at the earlier date.

increases in FSA debts means any amount, or the sum of any amounts, by which any FS assessment debt of the person is increased by an amendment of the relevant assessment (whether as a result of an increase in the person’s taxable income or otherwise), being an amendment made on or after the earlier date and before the later date.

reductions in FSA debts means any amount, or the sum of any amounts, by which any FS assessment debt of the person is reduced by an amendment of the relevant assessment (whether as a result of a reduction in the person’s taxable income or otherwise), being an amendment made on or after the earlier date and before the later date.

 (5) For the purposes of subsection (4), an assessment or an amendment of an assessment is taken to have been made on the date specified in the notice of assessment or notice of amended assessment, as the case may be, as the date of that notice.

 (6) The factor to be calculated for the purposes of the definition of indexation factor in subsection (1) or (3) in determining an FS debt or the accumulated FS debt of a person at 1 June in a year (the relevant year) is the number worked out to 3 decimal places using the formula:

the sum of the index number for the March

quarter in the relevant year and the index

numbers for the 3 immediately preceding quarters

divided by

the sum of the index number for the March quarter

in the year immediately before the relevant year

 and the index numbers for the 3 immediately

preceding quarters.

 (7) If an indexation factor calculated in accordance with subsection (6) would end with a number greater than 4 if it were worked out to 4 decimal places, the indexation factor is increased by 0.001.

 (8) If, apart from this subsection, the amount of an FS debt or accumulated FS debt worked out under this section would be an amount of dollars and cents, the amount of the cents is to be disregarded.

 (1) Subject to subsection (2), an accumulated FS debt that a person incurs on 1 June in a year (the relevant date):

 (a) discharges, or discharges the unpaid part of:

 (i) any accumulated FS debt of the person that the person incurred on the immediately preceding 1 June; and

 (ii) any FS debt that was incurred by the person on the relevant date; and

 (b) discharges the liability of the person to pay the amount outstanding immediately before the relevant date under the financial supplement contract in relation to which any FS debt referred to in subparagraph (a)(ii) was incurred.

 (2) For the purpose of applying section 12ZF, subsection (1) of this section is to be disregarded.

 (1) The Secretary must, as soon as practicable after the termination date in relation to a financial supplement contract between a participating corporation and a student, arrange for notice to be given to the Commissioner stating such of the following information as is in the possession of the Secretary:

 (a) the name of the student;

 (b) the student number of the student;

 (c) the student’s last known address;

 (d) the student’s tax file number;

 (e) the amount of the FS debt or the amounts of the FS debts that the student incurred to the Commonwealth on 1 June immediately following the termination date;

 (f) any other information relating to the student that is reasonably required by the Commissioner for the purpose of administering this Division.

 (2) If, after a notice is given to the Commissioner under subsection (1) or this subsection, the Secretary or an officer of the Department is satisfied that a material particular in the notice was not, or has ceased to be, correct, the Secretary must arrange for a further notice to be given to the Commissioner setting out the correct particular.

 (3) The Secretary must, if required by the Commissioner to do so, give a written certificate to the Commissioner setting out a matter specified by the Commissioner that was, or was required to be, set out in a notice under subsection (1) or (2).

 (1) If a person is indebted to the Commonwealth under this Division, the person may at any time make a payment in respect of that indebtedness.

 (2) A payment under subsection (1) is to be made to the Commissioner.

 (1) If:

 (a) the taxable income of a person in respect of a year of income is greater than the minimum prescribed amount in relation to that year of income; and

 (b) the person had an accumulated FS debt on 1 June immediately before the making of an assessment in respect of the person’s income of that year of income;

the person is liable to pay in accordance with this Division to the Commonwealth in reduction of the relevant debt an amount equal to so much of the relevant debt as does not exceed:

 (c) if that taxable income is not greater than the intermediate prescribed amount in relation to that year of income—2% of that taxable income; or

 (d) if that taxable income is greater than the intermediate prescribed amount in relation to that year of income but is not greater than the maximum prescribed amount in relation to that year of income—3% of that taxable income; or

 (e) if that taxable income is greater than the maximum prescribed amount in relation to that year of income—4% of that taxable income.

 (2) In subsection (1):

relevant debt means:

 (a) subject to paragraph (b) of this subsection, the person’s accumulated FS debt referred to in paragraph (1)(b); or

 (b) if an amount or amounts have been paid in reduction of that debt or an amount or amounts have been assessed under section 12ZM to be payable in respect of that debt—the amount (if any) remaining after deducting from that debt the amount or the sum of the amounts so paid or assessed to be payable.

 (3) A reference in paragraph (2)(b) to an amount assessed under section 12ZM to be payable in respect of a person’s accumulated FS debt is, if the amount has been increased or reduced by an amendment of the relevant assessment, taken to be a reference to the increased or reduced amount, as the case may be.

 (4) For the purposes of subsection (1):

 (a) the minimum prescribed amount in relation to a year of income (the relevant year of income) is $27,747 (being the amount applicable under subparagraph 68(4)(a)(ii) of the Higher Education Funding Act 1988 in relation to the year of income ending on 30 June 1993) as subsequently varied and applicable in relation to the relevant year of income in accordance with the indexation procedure set out in section 68 of that Act; and

 (b) the intermediate prescribed amount in relation to a year of income (the relevant year of income) is $31,532 (being the amount applicable under subparagraph 68(4)(b)(ii) of the Higher Education Funding Act 1988 in relation to the year of income ending on 30 June 1993) as subsequently varied and applicable in relation to the relevant year of income in accordance with that indexation procedure; and

 (c) the maximum prescribed amount in relation to a year of income (the relevant year of income) is $44,146 (being the amount applicable under subparagraph 68(4)(c)(ii) of the Higher Education Funding Act 1988 in relation to the year of income ending on 30 June 1993) as subsequently varied and applicable in relation to the relevant year of income in accordance with that indexation procedure.

If a person is required under section 161 of the Income Tax Assessment Act 1936 to furnish to the Commissioner a return in respect of income of the year of income ending on 30 June 1998 or in respect of income of a later year of income, the person must, if the person had an accumulated FS debt at 1 June immediately before the furnishing of the return, set out in the return the amount of that debt and any payments made since that date in respect of the person’s indebtedness to the Commonwealth under this Division.

The Commissioner may, from any information in the Commissioner’s possession, whether from a return or otherwise, make an assessment of:

 (a) the amount of the accumulated FS debt of a person at 1 June immediately before the making of the assessment; and

 (b) the amount required to be paid in respect of that accumulated FS debt under section 12ZK.

 (1) Part IV and Division 1 of Part VI of the Income Tax Assessment Act 1936 and Part IVC of the Taxation Administration Act 1953 apply, so far as they are capable of application and subject to this Division, in relation to an FS assessment debt of a person as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936.

 (2)  Sections 222A to 222F, 222 and 226G to 226ZB of the Income Tax Assessment Act 1936 have effect as if any FS assessment debt of a person were income tax payable by the person in respect of the year of income in respect of which the assessment of that debt was made.

If:

 (a) the Commissioner is required to serve on a person a notice of assessment in respect of the person’s income of a year of income under section 174 of the Income Tax Assessment Act 1936; and

 (b) an assessment (the relevant assessment) has been made in respect of the person of the amounts referred to in section 12ZM of this Act but notice of the relevant assessment has not been served on the person;

notice of the relevant assessment may be served by setting out the amounts concerned in the notice referred to in paragraph (a).

 (1) The Commissioner may, on written application by a person, defer, for such period as the Commissioner considers appropriate, the making of an assessment in relation to the person under section 12ZM if the Commissioner considers that, were the assessment to be made, payment of the assessed amount would cause serious hardship to the person or considers that there are other special reasons that make it fair and reasonable to defer the making of the assessment.

 (2) The Commissioner may, on written application by a person, amend an assessment made in relation to the person under section 12ZM so that no amount is payable under the assessment if the Commissioner considers that payment of the assessed amount has caused or would cause serious hardship to the person or considers that there are other special reasons that make it fair and reasonable to make the amendment.

 (3) If an application referred to in subsection (1) or (2) is made, the Commissioner must as soon as practicable consider the matter to which the application relates and give to the applicant written notice of the Commissioner’s decision on the application.

 (1) Application may be made to the Administrative Appeals Tribunal for review of a decision of the Commissioner on an application referred to in subsection 12ZP(1) or a decision by the Commissioner refusing to amend an assessment pursuant to an application referred to in subsection 12ZP(2).

 (2) A notice under subsection 12ZP(3) must:

 (a) include a statement to the effect that, if the person is dissatisfied with the decision of the Commissioner on the application under section 12ZP, application may, subject to the Administrative Appeals Tribunal Act 1975, be made to the Tribunal for review of the decision; and

 (b) except if subsection 28(4) of that Act applies, also include a statement to the effect that the person may request a statement under section 28 of that Act.

  (3) A failure to comply with subsection (2) in relation to a notice does not affect the validity of the notice or of the decision to which the notice relates.

 (1) Any amount paid or other benefit given to a person under the Student Financial Supplement Scheme is not subject to taxation under any law of the Commonwealth unless a provision of such a law expressly provides to the contrary.

 (2) Subsection (1) does not affect any liability to taxation of a participating corporation in respect of any subsidy or other amount paid to the corporation under the Student Financial Supplement Scheme.

An amount paid by a person in respect of the person’s indebtedness to the Commonwealth under this Division is to be applied in accordance with the direction of the person or, in the absence of such a direction or to the extent that the direction does not adequately deal with the matter:

 (a) first, in discharge or reduction of any FS assessment debts of the person; and

 (b) secondly, in discharge or reduction of any accumulated FS debt of the person.

Upon the death of a person who has an indebtedness to the Commonwealth under this Division, other than an indebtedness in respect of an FS assessment debt, the indebtedness is discharged by force of this section.

 (1) In this section:

Commissioner includes a Second Commissioner of Taxation and a Deputy Commissioner of Taxation.

officer means a person:

 (a) who is or has been appointed or employed by the Commonwealth and, because of the appointment or employment or in the course of the performance of the duties of the appointment or in the course of the employment, may acquire or has acquired confidential information; or

 (b) to whom powers or functions have been delegated by the Commissioner and who, because of, or in the course of the exercise of powers or the performance of functions under, the delegation, may acquire or has acquired confidential information.

 (2) A reference in this section to the acquisition by a person of confidential information is a reference to the acquisition of information in relation to the affairs of another person disclosed or obtained under or for the purposes of this Division.

 (3) For the purposes of this section, a person who performs services for the Commonwealth, although not appointed or employed by the Commonwealth, is taken to be employed by the Commonwealth.

 (4) A person who is or has been an officer must not, except for the purposes of this Division, or in the performance of the person’s duties as an officer, directly or indirectly:

 (a) make a record of any information in relation to the affairs of a second person; or

 (b) disclose to a second person any information in relation to the affairs of a third person;

being information disclosed or obtained under or for the purposes of this Division and acquired by the person:

 (c) because of the person’s appointment or employment by the Commonwealth or in the course of such employment; or

 (d) because of the delegation to the person of powers or functions by the Commissioner or in the course of the exercise of such powers or performance of such functions.

Penalty: $10,000 or imprisonment for 2 years, or both.

 (5) Except when it is necessary to do so for the purpose of carrying into effect the provisions of this Division, an officer cannot be required:

 (a) to produce to a court any document made or given under or for the purposes of this Division; or

 (b) to disclose to a court a matter or thing in relation to information disclosed or obtained under or for the purposes of this Division;

being a document or information acquired by the officer:

 (c) because of the officer’s appointment or employment by the Commonwealth or in the course of such employment; or

 (d) because of the delegation to the officer of powers or functions by the Commissioner or in the course of the exercise of such powers or the performance of such functions.

 (6) Subsection (4) does not prohibit the Commissioner, or a person authorised by the Commissioner, from disclosing any information to the Administrative Appeals Tribunal in connection with proceedings under this Act or any Act of which the Commissioner of Taxation has the general administration.

 (7) No Act of which the Commissioner of Taxation has the general administration prohibits the Commissioner, or a person authorised by the Commissioner, from disclosing any information to a person performing, as an officer, duties arising under this Division for the purpose of enabling the person to perform those duties.

 (8) Subsection (4) does not prohibit an officer (the relevant officer) from disclosing any information to an officer of the Department for the purpose of assisting the relevant officer in the performance of duties arising under this Division.

 (9) For the purposes of subsection (4), an officer is taken to have disclosed information to another person in contravention of that subsection if the officer discloses the information to a Minister.

 (10) An officer must, if and when required by the Commissioner to do so, make an oath or declaration, in a manner and form specified by the Commissioner in writing, to maintain secrecy in accordance with the provisions of this section.

 (11) In this section:

court includes a tribunal, authority or person having power to require the production of documents or the answering of questions.

disclose, in relation to information, means give, reveal or communicate in any way.

This Division deals with:

 (a) the application of the Bankruptcy Act 1966 in relation to rights and liabilities arising under or out of a financial supplement contract; and

 (b) the effect of decisions reviewing decisions by the Secretary under this Part; and

 (c) the giving of notice to a student when the student’s obligations to a participating corporation have been assigned to the Commonwealth; and

 (d) the exemption from State and Territory taxes of assignments and other acts and transactions under this Part.

 (1) This section applies if, at any time after a financial supplement contract (the contract) is entered into between a participating corporation (the corporation) and a student, including a time after the end of the contract period:

 (a) the student becomes bankrupt; or

 (b) the student enters into a deed of assignment, a deed of arrangement or a composition under Part X of the Bankruptcy Act 1966.

 (2) A debt arising under or out of the contract is not a provable debt in the bankruptcy or for the purposes of the deed of assignment, deed of arrangement or composition.

 (3) Any right of the Commonwealth or of the corporation to bring an action or other proceeding against the student in respect of such a debt is not affected by the bankruptcy, deed of assignment, deed of arrangement or composition.

 (4) The trustee of the estate of the bankrupt student or the trustee of the deed of assignment, deed of arrangement or composition, as the case may be, is not entitled to recover under the Bankruptcy Act 1966 any payment made by the student to the Commonwealth or to the corporation in respect of such a debt.

 (5) A reference in this section to a debt arising under or out of the contract includes a reference to:

 (a) the amount outstanding at any time under the contract; and

 (b) an amount that the student is liable to pay under paragraph 12S(2)(d) or 12U(2)(c); and

 (c) any accumulated FS debt that discharges, or discharges the unpaid part of, an FS debt;

but does not include a reference to:

 (d) a debt constituted by an obligation to repay the amount of a payment that, because of subparagraph 12Q(2)(b)(i), 12R(2)(b)(i) or 12T(2)(b)(i), is not a payment of financial supplement made under the contract; or

 (e) an FS assessment debt that is required to be paid in respect of an accumulated FS debt.

If a decision of the Secretary under this Part is set aside or varied:

 (a) if the decision is set aside—subject to paragraph (b), this Part has effect, and is taken to have always had effect, as if the decision had not been made; or

 (b) if the decision is set aside and another decision is substituted for the original decision—this Part has effect, and is taken to have always had effect, as if the substituted decision had been the original decision; or

 (c) if the decision is varied—this Part has effect, and is taken to have always had effect, as if the decision as varied had been the original decision.

If any right of a participating corporation to receive a payment from a person under this Part is assigned to the Commonwealth, the Secretary must as soon as practicable arrange for written notice to be given to the person stating that the right has been so assigned and identifying any future payments by the person that, because of the assignment, are required to be made to the Commonwealth.

An assignment to the Commonwealth under this Part of rights of a corporation under a financial supplement contract, or any other act or thing done or transaction entered into under this Part, is not subject to taxation under any law of a State or Territory.

Do not e : placeholder

 (1) In this section:

indexable amount, at any time, means:

 (a) subject to paragraph (b)—an amount set out at that time in regulation 61 of the AUSTUDY Regulations; or

 (b) if an amount set out at that time has previously been taken under this section to be altered by substituting another amount—the substituted amount or the last substituted amount.

 (2) On 1 January in each year (the relevant year) each indexable amount is taken to be altered by substituting an amount worked out using the formula:

previous indexable amount    indexation factor

where:

previous indexable amount means the indexable amount immediately before 1 January in the relevant year.

indexation factor means the number worked out to three decimal places for the relevant year using the formula:

the index number for the June quarter in the later reference period

divided by

the index number for the June quarter in the earlier reference period;

later reference period means the year that immediately preceded the relevant year.

earlier reference period means the year that immediately preceded the later reference period.

 (3) If an indexation factor worked out under subsection (2) would end with a number greater than 4 if it were worked out to 4 decimal places, the indexation factor is increased by 0.001.

 (4) If, apart from this subsection, an amount worked out under subsection (2) would be an amount of dollars and cents, the amount is to be rounded to the nearest dollar (rounding fifty cents upwards).

 (1) Subject to subsection (2), if at any time, whether before or after the commencement of this Part, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by the Australian Statistician in respect of that quarter, the publication of the later index number is to be disregarded for the purposes of this Part.

 (2) If at any time, whether before or after the commencement of this Part, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this Part after the change took place or takes place, regard is to be had only to the index numbers published in terms of the new reference base.

 (3) The Minister must cause to be published in the Gazette before each 1 June the indexation factor worked out under subsection 12X(4) (as affected by subsection 12X(5)) in relation to the period of 12 months beginning on that day.

 (4) The Commissioner must cause to be published in the Gazette before 1 June 1998, and before each later 1 June, the indexation factor worked out under subsection 12ZF(6) (as affected by subsection 12ZF(7)) that is applicable in working out FS debts and accumulated FS debts incurred on the 1 June concerned.

 (5) The Minister must cause to be published in the Gazette before each 1 January the indexation factor worked out under subsection 12ZZA(2) (as affected by subsection 12ZZA(3)) in relation to the year beginning on that day.

Do not e : placeholder

 (1) In this section:

benefit payable under student assistance includes an advance under section 11 on account of benefit that is expected to become payable under student assistance.

 (2) Where:

 (a) whether before or after the commencement of this Part, an amount (in this section called the overpayment amount) that is:

 (i) a student assistance overpayment; or

 (ia) a youth training allowance overpayment; or

 (ii) a special educational assistance scheme overpayment; or

 (iii) a prescribed educational scheme overpayment; or

 (iv) a Social Security or Veterans’ legislation overpayment;

  has been paid to or in relation to a person; and

 (b) there is an unsatisfied liability to the Commonwealth in relation to the overpayment amount; and

 (c) the person to or in relation to whom the overpayment amount was paid is receiving, or entitled to receive, benefit payable under student assistance (whether the benefit is being paid, or to be paid, to the person or to another person);

each payment of the benefit is to be reduced by such proportion or amount (if any) as is determined by the Secretary until the liability is satisfied.

 (3) If a payment of the benefit is reduced under subsection (2), the payment of the benefit is to be taken to have been made in full and the amount of the reduction is to be taken to have been paid to the Commonwealth in satisfaction or partial satisfaction, as the case requires, of the liability.

 (4) If there are 2 or more unsatisfied liabilities to the Commonwealth of or in relation to a person in relation to an amount or amounts of a kind mentioned in paragraph (2)(a), the Secretary may:

 (a) for the purposes of subsection (2), treat the liabilities as if they were a single liability; and

 (b) for the purposes of subsection (3), apportion the amount of each reduction under that subsection between the liabilities in such proportions as the Secretary considers appropriate.

 (5) A determination or apportionment made by the Secretary under this section must be made in writing.

 (6) In this section, a reference to a liability to the Commonwealth in relation to an amount of a kind mentioned in paragraph (2)(a) includes a reference to a liability to the Commonwealth that consists of an amount payable as late payment charge or interest in relation to an amount of a kind mentioned in that paragraph.

 (1) Where, whether before or after the commencement of this subsection, a person has been paid an amount that is a student assistance overpayment or a special educational assistance scheme overpayment, the amount of the overpayment (in this section called the recoverable amount) is a debt owed by the person to the Commonwealth.

  (1A) Where the whole or a part of the recoverable amount is due to the Commonwealth, the Secretary may give the person by whom the amount is due a written notice that specifies however much of the recoverable amount as is still due and draws the person’s attention to the terms of subsection (2).

 (2) If the whole or a part of the recoverable amount is still due to the Commonwealth at the end of 3 months after the notice is given, the person is liable:

 (a) to pay to the Commonwealth an additional amount of $100; and

 (b) to pay interest to the Commonwealth:

 (i) from the date when the notice was given until the date when the recoverable amount is repaid; and

  (ii) at the rate ascertained under the regulations;

on so much of the recoverable amount as, from time to time, remains due.

 (3) If:

 (a) judgment is given by, or entered in, a court for the payment of:

 (i) the whole or a part of the recoverable amount; or

 (ii) an amount that consists of the whole or a part of the recoverable amount (which whole or part is in this subsection called the recoverable portion) and also another amount; and

 (b) the judgment debt carries interest;

then:

 (c) the recoverable amount, or the part of the recoverable amount, as the case may be, does not, for the purposes of subsection (2), stop being due solely because of the giving or entering of the judgment; and

 (d) the interest that would, but for this subsection, be payable under this section in relation to the recoverable amount is reduced by:

 (i) if subparagraph (a)(i) applies—the amount of the interest on the judgment debt; or

 (ii) if subparagraph (a)(ii) applies—the amount worked out using the following formula:

 (4) Any amount paid to the Commonwealth by or under the authority of the person in relation to the recoverable amount is:

 (a) to be taken first to reduce any additional amount payable under paragraph (2)(a); and

 (b) to be taken secondly to reduce any interest payable under paragraph (2)(b).

 (5) Interest is not payable under this section in relation to the recoverable amount in relation to any period during which an instrument under section 284 as applied under subsection 43(2) is in force in relation to the recoverable amount unless the instrument provides that interest is to be so payable or an instalment is not paid in accordance with the instrument.

 (6) If a person has unsatisfied liabilities to the Commonwealth in relation to more than one student assistance overpayment or special educational assistance scheme overpayment, the Secretary may, for the purposes of subsection (1), treat the overpayments as if they were a single amount.

 (1) The Secretary may, in writing, determine that:

 (a) an additional amount otherwise payable by a person under paragraph 40(2)(a); or

 (b) interest otherwise payable by a person in respect of a certain period under paragraph 40(2)(b);

is not payable.

 (2) A determination under paragraph (1)(b) may relate to a period before, or period that includes a period before, the making of the determination.

 (3) A determination may be expressed to be subject to the person complying with specified conditions.

 (4) The Secretary must give a copy of the determination to the person as soon as practicable after making a determination.

 (5) Contravention of subsection (4) does not invalidate a determination.

 (6) If:

 (a) a determination is expressed to be subject to the person complying with specified conditions; and

 (b) the person contravenes a condition;

the determination ceases to have effect.

 (1) In this section:

recoverable amount means an amount of any of the following kinds (whether the amount was paid, or became payable, before or after the commencement of this Part):

 (a) a student assistance overpayment;

 (b) a special educational assistance scheme overpayment;

 (c) an amount payable to the Commonwealth in relation to an amount of a kind referred to in paragraph (a) or (b) (including an amount payable as late payment charge or interest under section 40).

 (2) This section applies where:

 (a) the liability of a person (in this section called the debtor) to the Commonwealth in relation to a recoverable amount has not been fully satisfied; and

 (b) there is another person (in this section called the third party):

 (i) by whom any money is due, or may become due, to the debtor; or

 (ii) who holds, or may subsequently hold, money for the debtor; or

 (iii) who holds, or may subsequently hold, money for some other person for payment to the debtor; or

 (iv) who has authority from some other person to pay money to the debtor.

 (2A) The first reference in paragraph (2)(b) to another person includes a reference to:

 (a) the Commonwealth; and

 (b) a State; and

 (c) a Territory; and

 (d) any authority of the Commonwealth or of a State or Territory.

 (3) The Secretary may, by written notice given to the third party, require the third party to pay to the Commonwealth:

 (a) a specified amount, not being an amount more than:

 (i) the amount then due to the Commonwealth in relation to the recoverable amount; or

  (ii) the amount of the money referred to in whichever of the subparagraphs of paragraph (2)(b) is applicable; or

 (b) a specified amount out of each payment that the third party becomes liable from time to time to make to the debtor until the total of the amounts paid to the Commonwealth under the notice equals the amount then due to the Commonwealth in relation to the recoverable amount.

 (4) A payment required to be made by the notice is to be made within the time specified in the notice, not being a time earlier than:

 (a) the money concerned becomes due or is held; or

 (b) 14 days after the notice is given.

 (5) The third party must not, without reasonable excuse, contravene the notice.

Penalty: Imprisonment for 1 year.

 (6) The Secretary must give a copy of the notice to the debtor.

 (7) Contravention of subsection (6) does not invalidate the notice.

 (8) If the third party makes a payment to the Commonwealth under the notice, the payment is to be taken to have been made with the authority of the debtor and of any other person concerned.

 (9) If the whole or a part of the recoverable amount stops being due to the Commonwealth otherwise than because of a payment made by the third party, the following provisions have effect:

 (a) the Secretary must notify the third party of the amount that has stopped being due;

 (b) if paragraph (3)(a) applies to the notice—the amount specified in the notice is to be taken to be reduced, or further reduced, as the case requires, by the amount that has stopped being due;

 (c) if paragraph (3)(b) applies to the notice—the reference in that paragraph to the total of the amounts paid to the Commonwealth under the notice is to be taken to be a reference to that total as increased, or further increased, as the case requires, by the amount that has stopped being due.

 (10) If the third party, without reasonable excuse, contravenes the notice, an amount equal to:

 (a) so much (if any) of the amount required by the notice to be paid by the third party as the third party was able to pay to the Commonwealth but did not pay; or

 (b) so much of the recoverable amount as remains due to the Commonwealth from time to time;

whichever is the lesser, is a debt due by the third party to the Commonwealth.

 (11) If:

 (a) the third party is indebted to the Commonwealth under subsection (10); and

 (b) the Commonwealth recovers the whole or a part of the third party’s debt;

the debtor’s liability to the Commonwealth in relation to the recoverable amount is reduced or further reduced, as the case requires, by the amount recovered from the third party.

 (12) If, apart from this section, money is not due or payable on demand by the third party unless a condition is fulfilled, the money is to be taken, for the purposes of this section, to be due or payable on demand, whether or not the condition has been fulfilled.

 (13) If a person has unsatisfied liabilities to the Commonwealth in relation to more than one recoverable amount, the Secretary may:

 (a) for the purposes of this section, treat the amounts as if they were a single amount; and

 (b) apportion any amount recovered under this section in relation to the amounts between them in such proportions as the Secretary considers appropriate.

 (14) An apportionment made by the Secretary under subsection (13) must be made in writing.

 (1) In this section:

recoverable amount means an amount of any of the following kinds (whether the amount was paid, or became payable, before or after the commencement of this Part):

 (a) a student assistance overpayment;

 (b) a special educational assistance scheme overpayment;

 (c) an amount payable to the Commonwealth in relation to an amount of a kind referred to in paragraph (a) or (b) (including an amount payable as late payment charge or interest under section 40).

 (2) Section 284 and Subdivision D of Division 15 of Part 8 apply to recoverable amounts referred to in subsection (1) in the same way as that section and that Subdivision apply to debts recoverable by the Commonwealth under Subdivision B of Division 15 of that Part.

 (3) In the application of Subdivision D of Division 15 of Part 8 to recoverable amounts referred to in subsection (1), that Subdivision has effect as if:

 (a) the reference in subsection 290A(1) to $200 were a reference to $50; and

 (b) subsection 290A(2) were omitted.

Do not e : placeholder

 (1) Subject to this section, a benefit is not payable in respect of a person (in this section called the applicant) under the AUSTUDY scheme or a current special educational assistance scheme, or financial supplement is not to be paid to a person (in this section also called the applicant) under the Student Financial Supplement Scheme, unless the Secretary is given:

 (a) the applicant’s tax file number; and

 (b) where another person’s income or assets are required to be taken into account for the purpose of calculating the benefit, that person’s tax file number.

 (2) Paragraph (1)(b) does not require the giving of the tax file number of a person who:

 (a) is a parent of the applicant for the purposes of the scheme under which application for the benefit in question has been made; and

 (b) is resident outside Australia; and

 (c) had no assessable income under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997 for the period in relation to which the person’s income is to be taken into account for the purpose of calculating the benefit.

 (3) Subsection (1) does not apply to a benefit if the application for the benefit was made before 1 July 1991.

 (4) The regulations may prescribe circumstances in which a benefit or financial supplement may be paid even though a tax file number required by subsection (1) to be given to the Secretary has not been given.

 (5) Subject to subsection (6), a person is taken, for the purposes of the ABSTUDY scheme, to have given his or her tax file number to the Secretary if he or she has lodged an application for a tax file number with the Department.

 (6) If the Commissioner for Taxation refuses to issue a tax file number to a person who has lodged an application with the Department under subsection (5), subsection (5) is taken not to have applied to that person in relation to that application.

 (7) In this section, tax file number has the same meaning as in Part VA of the Income Tax Assessment Act 1936.

If a prescribed event happens in relation to a person who is receiving, or entitled to receive, an amount under this Act other than Part 8 (including an amount under a financial supplement contract) or a current special educational assistance scheme, the person must notify the Department, in accordance with the regulations, of the happening of the event within 7 days.

 (1) A person shall not:

 (a) knowingly or recklessly make, whether orally or in writing, a false or misleading statement:

 (i) in connection with a request under section 20 or 21 or an application or claim, whether made on behalf of that person or of any other person;

 (ii) to deceive an officer or employee of the Department in the performance of the officer’s or employee’s functions or duties under, or in relation to, this Act other than Part 8 or the regulations; or

 (iii) to affect the rate of a benefit payable under student assistance; or

 (iv) to affect the amount of financial supplement that may be paid to the person under Part 4A;

 (b) knowingly obtain payment of an amount under this Act other than Part 8, or a current special educational assistance scheme, that is not payable (whether in whole or part); or

 (c) obtain payment of an amount under this Act other than Part 8, or a current educational assistance scheme, by means of a false or misleading statement that is knowingly or recklessly made or by means of impersonation or fraud; or

 (d) knowingly or recklessly make or present to an officer or employee of the Department a statement or document that is false or misleading in a material particular; or

 (e) without reasonable excuse, contravene section 48.

Penalty: Imprisonment for 1 year.

 (2) Where a person is convicted of an offence against subsection (1), the court may, in addition to imposing a penalty, order the person to pay to the Commonwealth an amount equal to any amount paid under this Act other than Part 8, or a current special educational assistance scheme, as a result of the act, failure or omission in respect of which the person was convicted.

 (3) For the purposes of subsection (2), a certificate by the Secretary stating that a specified amount is the amount paid to a specified person under this Act other than Part 8, or a current special educational assistance scheme, as a result of a specified act, failure or omission is prima facie evidence of the matters stated in the certificate.

 (4) A reference in this section to payment of an amount under this Act other than Part 8 or to an amount paid under this Act other than Part 8 includes a reference to payment of an amount or to an amount paid, as the case may be, under a financial supplement contract.

 (1) Where, in proceedings for an offence against this Act (other than Part 8) or regulations made for the purposes of this Act (other than Part 8) in respect of any conduct engaged in by a corporation, it is necessary to establish the state of mind of the corporation, it is sufficient to show that a director, servant or agent of the corporation, being a director, servant or agent who engaged in the conduct within the scope of his or her actual or apparent authority, had the state of mind.

 (2) Any conduct engaged in on behalf of a corporation:

 (a) by a director, servant or agent of the corporation within the scope of his or her actual or apparent authority; or

 (b) by any other person at the direction or with the consent or agreement (whether express or implied) of a director, servant or agent of the corporation, where the giving of such direction, consent or agreement is within the scope of the actual or apparent authority of the director, servant or agent;

shall be deemed, for the purposes of this Act (other than Part 8) and regulations made for the purposes of this Act (other than Part 8), to have been engaged in by the corporation.

 (3) A reference in subsection (1) to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose of the person and the person’s reasons for the intention, opinion, belief or purpose.

 (1) A certificate by the Secretary stating:

 (a) that specified amounts have been paid, as a specified kind of payment, to or in relation to a specified person under this Act other than Part 8, a current special educational assistance scheme, or a former special educational assistance scheme, in relation to a specified period; or

 (b) that, on a specified day, a notice, to a specified effect, under subsection 40(1A) was given to a specified person by the Secretary;

is prima facie evidence of the matters stated in the certificate.

 (2) A certificate given by the Secretary stating:

 (a) that a specified amount was the principal sum at a particular time under a specified financial supplement contract; or

 (b) that a specified amount was the sum of the actual repayments, or the sum of the notional repayments, made before a particular time or during a particular period in respect of a specified financial supplement contract; or

 (c) that a specified amount was the amount, or the total of the amounts, of subsidy paid by the Commonwealth to a specified participating corporation in respect of a specified financial supplement contract in lieu of interest on the principal sum or in lieu of interest on the principal sum in relation to a specified period; or

 (d) that a specified amount was, at a particular time, the amount outstanding under a specified financial supplement contract; or

 (e) that a specified amount was, at a particular time, the indexation amount in relation to a specified financial supplement contract; or

 (f) that the rights, or specified rights, of a specified participating corporation in respect of a specified person under a specified financial supplement contract were assigned by the corporation to the Commonwealth on a specified date; or

 (g) that, on a specified day, a person had an FS debt or FS debts to the Commonwealth of a specified amount or specified amounts; or

 (h) that, on a specified day, a notice, to a specified effect, under a provision of Part 4A was given to a specified person by the Secretary;

is prima facie evidence of the matters stated in the certificate.

 (3) In any proceeding, a document purporting to be a certificate by the Secretary under this section is taken, unless the contrary is established, to be such a certificate and to have been duly given.

Notwithstanding anything in any other law, proceedings for an offence against the regulations may be instituted within the period of 2 years after the commission of the offence.

 (1) Payment of benefit in relation to:

 (a) the AUSTUDY scheme; and

 (b) the Assistance for Isolated Children Scheme; and

 (c) the ABSTUDY Scheme (also known as the Aboriginal Study Assistance Scheme);

is to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.

 (1A) The following payments, namely:

 (a) payments of subsidy to a participating corporation under an agreement entered into under section 12D;

 (b) payments to a participating corporation under paragraph 12S(2)(c), 12U(2)(b) or 12V(2)(b), subsection 12ZA(11) or paragraph 12ZB(b);

are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.

 (1B) The following payments are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly:

 (a) payments under Part 8 (other than section 136);

 (b) payments to a person under the Social Security Act 1991 the making of which is dependent upon the person being qualified for youth training allowance under Part 8.

 (2) In this section:

benefit includes an advance on account of benefit that is expected to become payable under a scheme mentioned in subsection (1).

The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters which, by this Act, are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act, and, in particular:

 (a) making provision in relation to the furnishing of information by applicants for benefits under the AUSTUDY scheme or a current special educational assistance scheme and by persons to whom such benefits have been granted; and

 (aa) making provision in relation to the furnishing of information by applicants under the Student Financial Supplement Scheme or by persons who are parties to financial supplement contracts; and

 (ab) making provision in relation to the furnishing of information relating to persons whose income or assets are required to be taken into account for the purpose of calculating a benefit under the AUSTUDY scheme or under a current special educational assistance scheme; and

 (ac) making provision in relation to the furnishing of information relating to persons whose income or assets are required to be taken into account for the purpose of determining the eligibility of a person to obtain financial supplement; and

 (b) making provision for and in relation to the giving of notices and other documents under this Act; and

 (d) prescribing penalties, not exceeding a fine of $1,000 or imprisonment for 6 months, or both, for offences against the regulations; and

 (e) making provision in relation to:

 (i) the times at which; and

 (ii) the manner in which; and

 (iii) the persons to whom;

  benefits payable under student assistance are to be paid; and

 (f) making provision in relation to:

 (i) the times at which; and

 (ii) the manner in which;

  payments are to be made to persons out of the Reserve.

 (1) Subject to subsection (4), the provisions of Part 1.2 of the Social Security Act apply for the purposes:

 (a) of this Part; and

 (b) of Parts 9 and 10 in so far as those Parts apply to youth training allowance.

 (2) Without limiting the generality of subsection (1), if a provision of Part 1.2 of the Social Security Act applies only for the purposes of a particular provision or particular provisions of that Act, then, subject to subsection (4), the first-mentioned provision also applies for the purposes of any provision:

 (a) of this Part; or

 (b) of Part 9 or 10 in so far as that Part applies to youth training allowance;

that corresponds to that particular provision or those particular provisions of the Social Security Act.

 (3) In applying a provision of Part 1.2 of the Social Security Act under subsection (1) or (2) for the purposes:

 (a) of this Part or a provision of this Part; or

 (b) of Part 9 or 10, or a provision of Part 9 or 10, in so far as that Part applies to youth training allowance;

this Part, and Parts 9 and 10 in so far as they so apply, are to be treated as if they were incorporated in the Social Security Act.

 (4) A provision of Part 1.2 of the Social Security Act only applies under subsection (1) or (2) in so far as it is not inconsistent:

 (a) with this Part; and

 (b) with Parts 9 and 10 in so far as those Parts apply to youth training allowance.

Definitions

 (1) In this Part, unless the contrary intention appears:

administrative breach rate reduction period has the same meaning as in the Social Security Act.

assurance of support debt means a debt due and payable by a person to the Commonwealth, or a liability of a person to the Commonwealth, because of the operation of Part 5 of the Migration (1993) Regulations in respect of the payment to another person of youth training allowance.

available money has the same meaning as in the Social Security Act but does not include money to which Subdivision G of Division 11 of this Part applies.

Commonwealth funded employment program means a Commonwealth program of funding to a community or group where the funding is based, either wholly or partly, on the number of people in that community or group who are, or are likely to be, qualified for youth training allowance or newstart allowance.

current figure, as at a particular time and in relation to an amount that is to be indexed under Division 13, means:

 (a) if the amount has not yet been indexed under that Division before that time—the amount; or

 (b) if the amount has been indexed under that Division before that time—the amount most recently substituted for the amount under that Division before that time.

dependent child has the meaning that would be given to that expression by subsections 5(2) to (9) of the Social Security Act if references in those subsections to a young person were references to a person.

discretionary deferment provision means:

 (a) a youth training allowance discretionary deferment provision; or

 (b) a JSA discretionary deferment provision; or

 (c) an NS allowance discretionary deferment provision.

education leavers waiting period means an education leavers waiting period under section 98.

entry contribution has the same meaning as in section 1147 of the Social Security Act.

fringe benefits year means a year beginning on 1 April.

income maintenance period has the meaning given in points G6B to G6BA (inclusive) of Schedule 1.

lump sum preclusion period means either an old lump sum preclusion period within the meaning given by subsections 228(3) to (7) (inclusive) or a new lump sum preclusion period within the meaning given by subsections 228(7A) to (7D) (inclusive), as the case requires.

managed investment has the same meaning as in the Social Security Act but does not include a loan within the meaning of Subdivision G of Division 11 of this Part.

net property loss, in relation to a person for an accounting period, means:

 (a) if the expenses incurred by the person on rental property during the period are more than the person’s gross rental property income for the period—the amount by which those expenses are more than that gross rental property income; or

 (b) if the expenses incurred by the person on rental property during the period are not more than the person’s gross rental property income for the period—nil.

newly arrived residents waiting period means a newly arrived residents waiting period under section 101.

ordinary waiting period means an ordinary waiting period under section 96.

parent, in relation to a person (the relevant person), means (except in Part 2 of Schedule 1):

 (a) if the relevant person is not an adopted child—a natural parent of the person; or

 (b) if the relevant person is an adopted child—an adoptive parent of the person.

provisional commencement day has the meaning given by section 91.

receiving full-time education has a meaning affected by subsection (4).

recipient notification notice means a notice given by the Secretary under section 149.

recipient statement notice means a notice given by the Secretary under section 150.

registered in allowance category as being unemployed  has the meaning given by subsection (2).

served the waiting period has the meaning given by subsection (3).

Social Security Act means the Social Security Act 1991.

this Part includes the Schedules.

transferee to the youth training allowance and transfer day have the meanings given by section 61.

unused annual leave waiting period means an unused annual leave waiting period under section 93.

waiting period means:

 (b) an ordinary waiting period; or

 (c) an education leavers waiting period; or

 (d) a newly arrived residents waiting period.

Youth Training Activity Agreement has the meaning given by subsection 79(4).

youth training allowance discretionary deferment provision means:

 (a) subsection 114(1) (failure to comply with Secretary’s requirements); or

 (b) subsection 120(1) (failure to continue Commonwealth Employment Service registration); or

 (c) subsection 121(1) (seasonal workers); or

 (d) subsection 122(1) (lower employment prospects).

Registered in allowance category as being unemployed

 (2) A person registered by the Commonwealth Employment Service as being unemployed is registered in an allowance category as being unemployed if the person:

 (a) is so registered for the purposes of the Social Security Act; or

 (b) is registered in a category approved by the Secretary for the purposes of this Part as being unemployed.

Served the waiting period

 (3) If a person is subject to an ordinary waiting period for youth training allowance, the person is taken to have served the waiting period if, and only if:

 (a) the waiting period has ended; and

 (b) the person was, throughout the waiting period, qualified for youth training allowance.

Receiving full-time education—education leavers

 (4) If:

 (a) a person ceases to receive full-time education at a school, college or university; and

 (b) youth training allowance is not payable to the person because of an education leavers waiting period;

the person is taken to be receiving full-time education at a school, college or university during the period for the purposes of this Part (other than sections 98, 99 and 100).

Calculation of rate

 (1) If:

 (a) a person is paid an instalment of youth training allowance on a particular day; and

 (b) an amount by way of pharmaceutical allowance is to be added to the person’s maximum basic rate in working out the amount of the instalment;

then, for the purposes of this Part, the amount of pharmaceutical allowance paid to the person on that day is the amount worked out using subsections (2), (3) and (4).

Allowance rate for whole fortnights

 (2) If the instalment is for a fortnight or a period of whole fortnights, the amount of allowance paid is the amount worked out using the formula:

pharmaceutical allowance rate   number of fortnights

where:

pharmaceutical allowance rate is the fortnightly amount of pharmaceutical allowance added to the person’s maximum basic rate in working out the amount of the instalment.

number of fortnights is the number of fortnights in the period for which the instalment is paid.

Allowance rate for period less than a fortnight

 (3) If the instalment is for a period of less than a fortnight, the amount of allowance paid is the amount worked out using the formula:

where:

pharmaceutical allowance rate is the fortnightly amount of pharmaceutical allowance added to the person’s maximum basic rate in working out the amount of the instalment.

week days in period is the number of week days in the period for which the instalment is paid.

Allowance rate for whole fortnights and additional days

 (4) If the instalment is for a period that consists of:

 (a) a fortnight or a number of whole fortnights; and

 (b) a period of less than a fortnight;

the amount of allowance paid is the amount worked out using the formula:

where:

pharmaceutical allowance rate is the fortnightly amount of pharmaceutical allowance added to the person’s maximum basic rate in working out the amount of the instalment.

number of whole fortnights is the number of whole fortnights in the period for which the instalment is paid.

week days in short period is the number of days in the period that is less than a fortnight.

Single person

 (1) If:

 (a) a person becomes qualified for a youth training allowance; and

 (b) immediately before becoming qualified for the allowance the person was receiving:

 (i) a social security pension or service pension (an old pension); or

 (ii) a social security benefit (an old benefit); and

 (c) the person ceases to receive the old pension or old benefit;

then, for the purposes of this Part, the person is a transferee to the youth training allowance and the person’s transfer day is the day that immediately follows:

 (d) if the person was receiving an old pension—the person’s last pension payday; or

 (e) if the person was receiving an old benefit—the day on which the person ceases to receive the old benefit.

Member of couple

 (2) If:

 (a) a person becomes qualified for a youth training allowance; and

 (b) immediately before becoming qualified for the allowance:

 (i) the person was a member of a couple; and

 (ii) the person’s partner was receiving a social security benefit or a rehabilitation allowance;

then, for the purposes of this Part, the person is a transferee to the youth training allowance and the person’s transfer day is the day on which the person becomes qualified for the youth training allowance.

Table and Key to a Table

 (1) For the purposes of this Act, a Table and a Key to a Table are to be taken to be part of:

 (a) if the Table occurs in a section containing subsections—the subsection immediately before the Table; and

 (b) if the Table occurs in a section that does not contain subsections—the section.

Notes

 (2) For the purposes of this Act, a Note is to be taken to be part of:

 (a) if the Note immediately follows a section that does not contain subsections—the section; or

 (b) if the Note immediately follows a subsection—the subsection; or

 (c) if the Note immediately follows a point in a MODULE in a Schedule—the point; or

 (d) if the Note immediately follows a Step in a Method Statement and is aligned with the text of the Step—the Step; or

 (e) if the Note immediately follows a Table—the Table; or

 (f) if the Note immediately follows a paragraph and is aligned with the text of the paragraph—the paragraph.

Modules

 (3) Part 2 of Schedule 1 and Schedule 4 are divided into MODULES (for example, MODULE A).

Points

 (4) A MODULE in a Schedule is divided into points.

Period-based payments

 (1) Payments under this Part are referable to periods.

Effect of payments being period-based

 (2) If a payment is payable to a person, the person will be paid only for the particular period (which might be less than a fortnight) in respect of which the payment is payable.

Note: The qualifications for a payment usually require the qualifying conditions to be met throughout a particular period and the payment is expressed as being in respect of or for that period.

Before a youth training allowance is payable to a person under this Part:

 (a) the person must be qualified for the allowance; and

 (b) there must be nothing in this Part that makes the allowance not payable to the person (for example, a waiting period provision, a multiple entitlement exclusion provision or a compensation preclusion provision).

Note: Provisions in the Part relating to paragraph (a) matters refer to the person being qualified, disqualified or not qualified for the allowance and provisions in the Part relating to paragraph (b) matters refer to the allowance being payable or not payable to the person.

Basic qualifications

 (1) Subject to subsection (2) and to sections 67, 69, 70, 71 and 72, a person is qualified for a youth training allowance in respect of a period if:

 (a) the person did not receive job search allowance at any time during either:

 (i) the 6 weeks immediately before the period; or

 (ii) the 6 weeks immediately before the person’s provisional commencement day; and

 (b) the person satisfies the Secretary that throughout the period the person is unemployed; and

 (c) throughout the period, or each period within the period, the person either:

 (i) satisfies the activity test; or

 (ii) is not required to satisfy the activity test; and

 (d) when the person is required by the Secretary to enter into a Youth Training Activity Agreement in relation to the period, the person enters into the agreement; and

Note: A person who, under Subdivision BAA, is not required to satisfy the activity test is not to be required to enter into a Youth Training Activity Agreement (see subsection 79(1A)).

 (e) while the agreement is in force, the person satisfies the Secretary that the person is taking reasonable steps to comply with the terms of the agreement; and

Note: See subsection (4) on taking reasonable steps.

 (f) at all times when the person is a party to the agreement, the person is prepared to enter into another such agreement instead of the existing agreement if required to do so by the Secretary; and

 (g) throughout the period, the person:

 (i) is over the age of 16 years but under the age of 18 years; and

 (ii) is an Australian resident; and

 (iii) subject to subsection (3A), is in Australia; and

Note: See subsection (5).

 (iv) is registered by the Commonwealth Employment Service in an allowance category as being unemployed.

 (1A) Subject to sections 67, 69, 70, 71 and 72, a person is qualified for a youth training allowance in respect of a period if:

 (a) the person satisfies the Secretary that throughout the period the person is unemployed; and

 (b) throughout the period the person:

 (i) is over the age of 16 years but under the age of 18 years; and

 (ii) is an Australian resident; and

 (iii) is in Australia; and

 (c) the person was not in receipt of a newstart allowance during the period; and

 (d) the person made a claim for disability support pension at or before the start of the period and the claim was not determined before the end of the period; and

 (e) the Secretary is satisfied that throughout the period the person suffered from a medical condition that had a significant adverse effect on the person’s ability to work; and

 (f) the person satisfies any one of the conditions in subsection (1B).

 (1B) The conditions referred to in paragraph (1A)(f) are:

 (a) a condition that the person was an Australian resident when the significant adverse effect of the medical condition on the person’s ability to work first occurred; and

 (b) a condition that at the start of the period the person had 10 years qualifying Australian residence or had a qualifying residence exemption for youth training allowance; and

 (c) a condition that:

 (i) the person was born outside Australia; and

 (ii) when the significant adverse effect of the medical condition first occurred the person was not an Australian resident but was a dependent child of an Australian resident; and

 (iii) the person became an Australian resident while a dependent child of an Australian resident.

Basic qualifications for certain people aged 15 years

 (3) Subject to subsection (3A) and sections 67, 69, 70, 71 and 72, a person is qualified for youth training allowance in respect of a period if:

 (a) throughout the period the person is over the age of 15 years but under the age of 16 years; and

 (b) had the person reached the age of 16 years, he or she would have been qualified for a youth training allowance in respect of the period under subsection (1); and

 (c) the person satisfies the Secretary that the person:

 (i) has an employment history involving full-time employment that was on either a permanent basis or a regular casual basis; or

 (ii) has received an offer of employment of that kind but has been unable to take up the offer for reasons beyond his or her control; or

 (iii) has been registered by the Commonwealth Employment Service in an allowance category as being unemployed for at least 13 weeks; and

 (d) before the period begins:

 (i) the person reached the minimum school leaving age for the State or Territory in which the person is living; or

 (ii) a formal exemption from attending school was granted in respect of the person by the education authority of that State or Territory; and

 (e) throughout the period, the person:

 (i) does not live at a home of either of his or her parents; and

 (ii) does not receive regular financial support from either of those parents.

 (3A) In determining whether a person is qualified for youth training allowance in respect of a period under subsection (3):

 (a) if, disregarding subclause 2(2) of Schedule 1, the person is to be regarded as independent for the purposes of Schedule 1—subsection (3) of this section has effect as if paragraph (c) were omitted; or

 (b) if, throughout the period:

 (i) the person lives at a home of either of his or her parents; and

 (ii) the parent with whom the person lives is receiving a social security pension, a social security benefit, a service pension or payments under a prescribed educational scheme;

  subsection (3) of this section has effect as if paragraph (e) were omitted.

Note: For prescribed educational scheme see subsection 5(1) of the Social Security Act.

 (3B) For the purposes of subparagraph (1)(g)(iii), if:

 (a) a person is, under Subdivision BAA, not required to satisfy the activity test; and

 (b) the person is temporarily absent from Australia; and

 (c) the person is absent in order to seek medical treatment of a kind that is not available in Australia;

the person is taken to be in Australia during:

 (d) if the period is not more than 3 months—the whole of the period; or

 (e) if the period is more than 3 months—the first 3 months of the period.

What are reasonable steps

 (4) For the purposes of paragraph (1)(e), a person is taking reasonable steps to comply with the terms of a Youth Training Activity Agreement unless the person has failed to comply with the terms of the agreement and:

 (a) the main reason for failing to comply involved a matter that was within the person’s control; or

 (b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.

Attendance at Reserve or Emergency Force training camp

 (5) A person is not disqualified for youth training allowance because of being outside Australia during a period if the person is attending a training camp during that period as a member of:

 (a) the Australian Naval Reserve; or

 (b) the Naval Emergency Reserve Forces; or

 (c) the Australian Army Reserve; or

 (d) the Australian Air Force Reserve; or

 (e) the Air Force Emergency Force; or

 (f) the Army Individual Emergency Reserve.

Person taken to be qualified

 (6) If:

 (a) a person was receiving a social security pension; and

 (b) the person claims a youth training allowance within 14 days after the day on which the last instalment of the person’s pension was paid; and

 (c) the person becomes qualified for a youth training allowance at some time during the 14 day period but after the first day of that period;

the person is taken to be qualified for a youth training allowance for the whole of the 14 day period.

Note 1: A person may be treated as unemployed (see section 68).

Note 2: The activity test is set out in section 75.

Note 3: For allowance category see subsection 58(2).

Note 4: For Australian resident see section 7 of the Social Security Act.

Note 5: A person may not be qualified if the person’s unemployment is due to industrial action (see section 69).

Note 6:  A person may not be qualified if the person has reduced the person’s employment prospects by moving to an area of lower employment prospects (see section 71).

Note 7: If circumstances beyond the person’s control prevent the person from being registered by the Commonwealth Employment Service, this requirement may be waived (see section 73).

Note 8: A person unregistered by the Commonwealth Employment Service for up to 6 weeks may be taken to be registered (see section 73).

Note 9: A youth training allowance is not payable in certain circumstances even if the person is qualified (see Subdivisions D, E, F, G and H).

Note 11: Qualification for a youth training allowance may continue to the end of the last pay period (see section 67).

Note 12: Section 76 relieves people attending training camps mentioned in subsection 65(5) from the activity test.

Note 13: Subsection (6) operates when a person transfers from a pension to a youth training allowance and the person is not qualified for a youth training allowance immediately after the day on which the person’s last instalment of pension is paid. The subsection treats the person as being so qualified. As a result, the person may be paid a youth training allowance for the period beginning on the day after the day on which the person’s last instalment of pension was paid. The subsection aims to ensure that there is minimal disruption to a person’s payments when a person transfers from a pension to a youth training allowance.

If:

 (a) a person is receiving a youth training allowance; and

 (b) apart from this section, the person would cease on a particular day to be qualified for the allowance because the person reaches the age of 18 years; and

 (c) that day falls in, but is not the last day of, a period for which an instalment of youth training allowance is payable to the person;

the person continues to be qualified for the allowance until the end of that period.

Work may be disregarded

 (1) If:

 (a) a person undertakes paid work during a period; and

 (b) the Secretary is of the opinion that, taking into account:

 (i) the nature of the work; and

 (ii) the duration of the work; and

 (iii) any other matters relating to the work that the Secretary thinks relevant;

  the work should be disregarded;

the Secretary may treat the person as being unemployed throughout the period.

Compliance with activity test requirement

 (2) A person complying with:

 (a) a requirement under subsection 75(7) (activity test); or

 (b) a Youth Training Activity Agreement;

may be treated by the Secretary as being unemployed.

Matters relevant to Secretary’s decision

 (3) In deciding whether to treat a person as being unemployed, the Secretary is to take into account:

 (a) the nature of the activity undertaken by the person so as to comply with a requirement under subsection 75(7) (activity test) or a Youth Training Activity Agreement; and

 (b) the duration of the activity; and

 (c) any other matters relating to the activity that the Secretary thinks relevant.

Applicant engaged in industrial action

 (1) A person is not qualified for a youth training allowance in respect of a period unless the person satisfies the Secretary that the person’s unemployment during the period was not due to the person being, or having been, engaged in industrial action or in a series of industrial actions.

Other people engaged in industrial action

 (2) If:

 (a) a person’s unemployment during a period was due to other people being, or having been, engaged in industrial action or in a series of industrial actions; and

 (b) the people, or some of the people, were members of a trade union that was involved in the industrial action;

the person is not qualified for a youth training allowance in respect of the period unless the Secretary is satisfied that the person was not a member of the trade union during the period.

Period after industrial action stops

 (3) Subject to subsection (4), subsections (1) and (2) do not prevent a person from being qualified for a youth training allowance in respect of a period that occurs after the relevant industrial action or series of industrial actions have stopped.

Note: For industrial action, trade union and unemployment see section 16 of the Social Security Act.

 (4) Where the relevant industrial action or series of industrial actions is in breach of an order, direction or injunction issued by a State industrial authority, the Australian Industrial Relations Commission or the Federal Court, a person is not qualified for a youth training allowance in respect of a period unless that period occurs 6 weeks or more after the relevant industrial action or series of industrial actions has stopped.

Note: For State industrial authority see section 4 of the Workplace Relations Act.

A person is not qualified for a youth training allowance in respect of a period if the Secretary is satisfied that throughout the period:

 (a) an assurance of support was in force in respect of the person (the assuree); and

 (b) the person who gave the assurance of support was willing and able to provide an adequate level of support to the assuree; and

 (c) it was reasonable for the assuree to accept that support.

Note: For assurance of support see subsection 23(1) of the Social Security Act.

Move to an area without sufficient reason

 (1) Subject to subsection (2), a person is not qualified for a youth training allowance on a day on which, in the opinion of the Secretary, the person has reduced his or her employment prospects by moving to a new place of residence without sufficient reason.

Not applicable to certain people

 (2) Subsection (1) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii) a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

What constitutes sufficient reason

 (3) For the purposes of subsection (1), a person has a sufficient reason for moving to a new place of residence if, and only if, the person:

 (a) moves to accompany a parent who changes his or her residence; or

 (b) moves to live with a family member who has already established his or her residence in that place of residence; or

 (c) moves to live near a family member who has already established residence in the same area; or

 (d) satisfies the Secretary that the move is necessary for the purpose of treating or alleviating a physical disease or illness suffered by the person or by a family member.

Note: For family member see subsection 23(1) of the Social Security Act.

Definitions

 (1) In this section:

liquid assets, in relation to a person, means the person’s cash and readily realisable assets, and includes:

 (a) the person’s shares in, and debentures issued by, a public company within the meaning of the Corporations Law; and

 (b) amounts deposited with, or otherwise lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and

 (c) amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person;

but does not include an amount that is an eligible termination payment for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act.

maximum reserve, in relation to a person, means:

 (a) if the person is not a member of a couple and does not have a dependent child—$2,500; or

 (b) in any other case—$5,000.

Liquid assets

 (2) For the purposes of this Part, a person’s liquid assets are taken to include:

 (a) the liquid assets of the person’s partner; and

 (b) the liquid assets of the person and the person’s partner.

Transfer taken not to have occurred

 (3) If:

 (a) during the 4 weeks immediately before a person claims youth training allowance, the person or the person’s partner transfers liquid assets to a person of any age who is the natural or adopted child of the person or the partner; and

 (b) either:

 (i) the person transferring receives no consideration or inadequate consideration, in money or money’s worth, for the transfer; or

 (ii) the Secretary is satisfied that the purpose, or the dominant purpose, of the transfer was to enable the claimant to obtain youth training allowance;

then the transfer is taken, for the purposes of this section, not to have occurred.

Liquid assets test

 (4) Subject to subsections (10), (11), (12) and (13), if:

 (a) the value of a person’s liquid assets is more than the person’s maximum reserve on:

 (i) the day on which the person becomes unemployed; or

 (ii) the day on which the person claims a youth training allowance; and

 (b) the person is not a transferee to a youth training allowance;

the person is not qualified for a youth training allowance for a period unless the person has served the liquid assets test waiting period in relation to the claim before the beginning of that period.

Note 1:  For transferee to a youth training allowance see section 61.

Note 2: For served the liquid assets test waiting period see subsection (14).

 (5) The liquid assets test waiting period in relation to the claim is to be worked out under subsections (5A), (5B) and (5C).

 (5A) Work out the number of formula weeks (disregarding any fractions of a week) in relation to the claim using the formula:

where:

liquid assets means the person’s liquid assets.

maximum reserve amount means the maximum reserve in relation to the person under subsection 72(1).

divisor means, in relation to a person:

 (a) if the person is not a member of a couple and does not have a dependent child—$500; or

 (b) otherwise—$1,000.

 (5B) If the number of formula weeks is equal to or greater than 13 weeks, the liquid assets test waiting period in relation to the claim is 13 weeks.

 (5C) If subsection (5B) does not apply, the liquid assets test waiting period in relation to the claim is the number of weeks equal to the number of formula weeks.

Operation of subsections (7) and (8)

 (6) Subsection (7) applies for the purpose of determining, at a time before 20 March 1995, when a liquid assets test waiting period starts, and subsection (8) applies for the purpose of the making of such a determination on or after that date.

Start of waiting period before 20 March 1995

 (7) Subject to subsections (6) and (9) the liquid assets test waiting period in relation to the claim starts on the day on which the person becomes unemployed.

Start of waiting period on or after 20 March 1995

 (8) Subject to subsections (6), (8A), (8B) and (9), the liquid assets test waiting period in relation to the claim starts:

 (a) if the person is not a member of a couple—on the day on which the person became unemployed; or

 (b) if the person is a member of a couple—on the last occurring of the following days:

 (i) the day on which the person became unemployed;

 (ii) if, when the claim is made, the person’s partner is unemployed—the day on which the person’s partner became unemployed;

 (iii) if, when the claim is made, the person’s partner is incapacitated for work—the day on which the person’s partner became incapacitated for work.

Effect of incapacity for work

 (9) If:

 (a) a person becomes incapacitated for work; and

 (b) because of section 676 (sickness allowance liquid assets test disqualification) of the Social Security Act, the person is not qualified for sickness allowance during the liquid assets test waiting period that starts on the day on which the person becomes incapacitated for work; and

 (c) within that liquid assets test waiting period:

 (i) the person ceases to be incapacitated for work; and

 (ii) the person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed; and

 (d) within 14 days after the day on which the person becomes so registered by the Commonwealth Employment Service, the person claims a youth training allowance;

the liquid assets test waiting period starts on the day on which the person becomes incapacitated for work.

Person serving liquid assets test waiting period

 (10) On or after 20 March 1995, subsection (4) does not apply to a person if, at any time during the 12 months before:

 (a) the day on which the person becomes unemployed; or

 (b) the day on which the person claims youth training allowance;

the person was serving a liquid assets test waiting period under this Part or the Social Security Act that started during that 12 months.

Waiver for disadvantage or hardship

 (11) If the Secretary is satisfied that the application of subsection (4) to a person will cause undue long term disadvantage or significant hardship to the person, the Secretary may:

 (a) waive the application of that subsection to the person; and

 (b) authorise the payment of a youth training allowance to the person.

No application to certain transferees to youth training allowance

 (12) Subsection (4) does not apply to a person if both of the following conditions apply:

 (a) the person is a transferee to youth training allowance;

 (b) the person claims the youth training allowance:

 (i) within 14 days of the transfer day; or

 (ii) if the person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed within 14 days after the transfer day—within 14 days of the person becoming so registered or any further period that the Secretary considers reasonable.

Exemption

 (13) Subsection (4) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii) a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

Person taken to have served liquid assets test waiting period

 (14) A person who is subject to a liquid assets test waiting period for a youth training allowance is taken to have served the waiting period if, and only if:

 (a) the waiting period has ended; and

 (b) the person was, apart from this section, qualified for the allowance throughout so much of the waiting period as occurred after the claim for the allowance was made.

Certain people not required to be registered at Commonwealth Employment Service

 (1) The Secretary may decide that a person does not have to satisfy subparagraph 65(1)(g)(iv) (Commonwealth Employment Service registration) for a period if:

 (a) the person was not registered as unemployed by the Commonwealth Employment Service during the period; and

 (b) the Secretary is satisfied that there are circumstances beyond the person’s control relating to the person’s failure to be registered; and

 (c) having regard to those circumstances, the Secretary is satisfied that the person’s failure to be registered should be disregarded in respect of the period.

Period of registration for purposes of 12 month limit

 (2) If, because of subsection (1), a person does not have to satisfy subparagraph 65(1)(g)(iv) for a period, then, for the purposes of that subparagraph, the period is one for which the person is taken to be registered as required by that subparagraph.

Registration ceasing for less than 6 weeks

 (3) If a person:

 (a) is registered by the Commonwealth Employment Service in an allowance category as being unemployed; and

 (b) ceases for a period of not longer than 6 weeks to be registered by the Commonwealth Employment Service in an allowance category as being unemployed; and

 (c) at the end of that period becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed;

then, for the purposes of subparagraph 65(1)(g)(iv), the person is taken to have been registered throughout that period by the Commonwealth Employment Service in an allowance category as being unemployed.

 (1) A person is qualified for youth training allowance in respect of a period, if:

 (a) the person was, immediately before starting to receive youth training allowance, receiving:

 (i) a social security benefit; or

 (ii) a rehabilitation allowance instead of a social security benefit; and

 (b) the last payment of that benefit or allowance was made in respect of a period that ended after the day on which the payment was made; and

 (c) the person may, in the Secretary’s opinion, reasonably be expected to satisfy the qualification requirements for youth training allowance (see sections 65 to 73) during the period.

 (2) A person is qualified for youth training allowance in respect of a period determined by the Secretary if:

 (a) immediately before the start of the period, the person:

 (i) was receiving youth training allowance; and

 (ii) was incapacitated for work; and

 (iii) was, under Subdivision BAA, not required to satisfy the activity test; and

 (b) in the Secretary’s opinion:

 (i) the person will comply with the requirements of this Act during the period; and

 (ii) the person may reasonably be expected to be qualified for youth training allowance in respect of the period; and

 (iii) youth training allowance may reasonably be expected to be payable to the person in respect of the period.

Satisfaction of activity test

 (1) Subject to subsections (2) and (8), a person satisfies the activity test in respect of a period if the person satisfies the Secretary that, throughout the period, the person is:

 (a) actively seeking; and

 (b) willing to undertake;

paid work, other than paid work that is unsuitable to be undertaken by the person.

Note 1: For situations in which a person is not required to satisfy the activity test see:

(a) section 76 (people attending training camp);

(b) section 77 (certain people engaged in voluntary work);

(c) section 78 (special circumstances).

Note 2: See subsections (8) to (11) on what paid work is unsuitable.

Requirements regarding job application

 (2) The Secretary may notify a person (other than a person who is not required to satisfy the activity test) who is receiving a youth training allowance that the person must take reasonable steps to apply for a particular number of advertised job vacancies in the period specified in the notice.

Failure to comply

 (3) If a person refuses or fails to comply with a notice under subsection (2), the person fails to satisfy the activity test in respect of the period specified in the notice.

Statement from employer

 (4) The person must give the Secretary a written statement from each employer whose job vacancy the person applied for that confirms that the person applied for that job vacancy.

Form of statement

 (5) The statement from the employer must be in a form approved by the Secretary.

Special circumstances

 (6) Subsection (4) does not apply to a person if the Secretary is satisfied that there are special circumstances in which it is not reasonable to expect the person to give the statement referred to in that subsection.

 (6A) If a person contravenes subsection (4), the person fails to satisfy the activity test.

Participation in courses

 (7) A person also satisfies the activity test in respect of a period if the Secretary is of the opinion that, throughout the period, the person:

 (a) should undertake particular paid work other than paid work that is unsuitable to be done by the person; or

 (b) should:

 (i) undertake a course of vocational training; or

 (ii) participate in a labour market program; or

 (iii) participate in a rehabilitation program; or

 (iv) participate in another course;

  approved by the Secretary that is likely to:

 (v) improve the person’s prospects of obtaining suitable paid work; or

 (vi) help the person in seeking suitable paid work; or

 (c) if the person lives in an area where:

 (i) there is no locally accessible labour market; and

 (ii) there is no locally accessible vocational training course or labour market program;

  should participate in an activity suggested by the person and approved by the Commonwealth Employment Service;

and, after the Secretary notifies the person that the person is required to act in accordance with the opinion, the person takes reasonable steps to comply, throughout the period, with the Secretary’s requirement.

Note: See subsection (15) on taking reasonable steps.

Unsuitable work

 (8) For the purposes of subsection (1) and paragraph (7)(a), particular paid work is unsuitable for a person if, and only if, in the Secretary’s opinion:

 (a) the person lacks the particular skills, experience or qualifications that are needed to perform the work and no training will be provided by the employer; or

 (b) it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

 (c) performing the work in the conditions in which the work would be performed would constitute a risk to health or safety and would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or

 (d) the work would involve the person being self-employed; or

 (e) the work would be covered by an industrial award but the employer would only employ the person if the person agreed to become a party to an agreement reducing or abolishing rights that the award confers on employees; or

 (f) the work would not be covered by an industrial award and the remuneration for the work would be lower than the minimum applicable rate of remuneration for comparable work that is covered by an industrial award; or

 (g) commuting between the person’s home and the place of work would be unreasonably difficult; or

 (h) the work would require enlistment in the Defence Force or the Reserve Forces; or

 (i) for any other reason, the work is unsuitable for the person.

Commuting—unreasonable difficulty

 (9) For the purposes of paragraph (8)(g), commuting is not unreasonably difficult if:

 (a) the sole or principal reason for the difficulty is that the commuting involves a journey, either from the person’s home to the place of work or from the place of work to the person’s home, that does not normally exceed 90 minutes in duration; or

 (b) in the Secretary’s opinion a substantial number of people living in the same area as the person regularly commute to their places of work in circumstances similar to those of the person.

 (10) Subsection (9) does not limit the Secretary’s discretion to form the opinion that, for the purposes of paragraph (8)(g), commuting is not unreasonably difficult.

Remuneration for work

 (11) A reference in subsection (8) to remuneration for work is a reference to any income derived from the work that is income from personal exertion.

Note: For income from personal exertion see subsection 8(1) of the Social Security Act.

Failure to take reasonable steps to comply with requirements

 (12) If a person fails to take reasonable steps to comply, throughout a period, with a requirement of the Secretary under subsection (7), the person cannot be taken to satisfy the activity test in respect of that period in spite of any compliance of the person with subsection (1).

Reasonable steps to comply with terms of Agreement

 (13) A person also satisfies the activity test in respect of a period if, throughout the period, the person is taking reasonable steps to comply with the terms of a Youth Training Activity Agreement between the Commonwealth Employment Service and the person.

Note: See subsection (15) on taking reasonable steps.

Failure to take reasonable steps to comply with terms of Agreement

 (14) If a person fails to take reasonable steps to comply, throughout a period, with the terms of a Youth Training Activity Agreement between the Commonwealth Employment Service and the person, the person cannot be taken to satisfy the activity test in respect of the period in spite of any compliance of the person with subsection (1).

Note: See subsection (15) on taking reasonable steps.

What are reasonable steps

 (15) For the purposes of this section, a person takes reasonable steps to comply with a notice under subsection (2), with a requirement of the Secretary under subsection (7) or with the terms of a Youth Training Activity Agreement (as the case requires) unless the person has failed so to comply and:

 (a) the main reason for failing to comply involved a matter that was within the person’s control; or

 (b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.

 (16) In this section:

Reserve Forces means:

 (a) the Australian Naval Reserve; or

 (b) the Naval Emergency Reserve Forces; or

 (c) the Australian Army Reserve; or

 (d) the Australian Airforce Reserve; or

 (e) the Airforce Emergency Reserve; or

 (f) the Army Individual Emergency Reserve.

 (1) If a person, who is subject to the activity test in respect of a period, refuses or fails, without reasonable excuse, to attend a job interview, the person is taken to fail the activity test.

Note: For the consequences of failing the activity test see section 103.

 (2) If a person, who is subject to the activity test in respect of a period, voluntarily ceases, without reasonable excuse, to take part in, or is dismissed for misconduct from, a labour market program, the person is taken to fail the activity test.

Note: For the consequences of failing the activity test see section 103.

Relief from test for people attending training camps

 (1) A person is taken to satisfy the activity test in respect of a period when the person is attending a training camp as a member of:

 (a) the Australian Naval Reserve; or

 (b) the Naval Emergency Reserve Forces; or

 (c) the Australian Army Reserve; or

 (d) the Australian Airforce Reserve; or

 (e) the Airforce Emergency Force; or

 (f) the Army Individual Emergency Reserve.

Note: Subsection 65(5) relieves people attending these training camps from the requirement of being in Australia to qualify for youth training allowance.

Relief from test for certain people in remote areas

 (2) If the Secretary considers that:

 (a) it would be reasonable to assume that, at the end of a period, a person is present in an area described in paragraph 75(7)(c); and

 (b) it would also be reasonable to assume that the person is throughout the period:

 (i) unemployed; and

 (ii) capable of undertaking paid work that in the Secretary’s opinion is suitable to be undertaken by the person; and

 (iii) willing to undertake paid work that in the Secretary’s opinion is suitable to be undertaken by the person; and

 (c) having regard to all the relevant factors, including:

 (i) the location of offices of the Department of Social Security; and

 (ii) difficulties with transport and communication; and

 (iii) the educational and cultural background of the person;

   it would be unreasonable to expect the person to comply with the activity test in order to be qualified for youth training allowance for the period;

then, unless the person has been notified of a requirement under subsection 75(7) in relation to the period, the person is taken to satisfy the activity test during the period.

Note: For activity test see section 75.

 (1) This section applies to a person who has received income support payments in respect of a continuous period of at least 3 months but less than 12 months immediately before the start of the relevant period (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection).

 (2) Subject to subsection (3), a person to whom this section applies is taken to satisfy the activity test in respect of a period (the relevant period) if:

 (a) the person is engaged in approved full-time unpaid voluntary work for an approved organisation for at least 32 hours in the period; and

 (b) the period occurs during the 12 months after the person commenced receiving income support payments (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection); and

 (c) the person has not already undertaken full-time unpaid voluntary work with one or more approved organisations in more than 6 periods during the 12 month period referred to in paragraph (b).

 (3) Subsection (2) does not apply to a person in respect of a day in a relevant period if, in respect of the person, having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that the subsection is not to apply to the person in respect of that day.

 (4) For the purposes of subsection (2):

 (a) approved full-time voluntary unpaid work is work that has been approved by the Secretary for the purposes of this section; and

 (b) an approved organisation is an organisation that has been approved by the Secretary for the purposes of this section.

Special circumstances

 (1) Subject to subsections (2) and (3), a person is not required to satisfy the activity test for a period if:

 (a) the Secretary is satisfied that special circumstances, beyond the person’s control, exist; and

 (b) the Secretary is satisfied that in those circumstances it would be unreasonable to expect the person to comply with the activity test for that period.

Duration of period

 (2) The period referred to in subsection (1) is not to be more than 13 weeks.

Duration where a number of determinations made

 (3) If:

 (a) the Secretary makes a number of determinations under subsection (1); and

 (b) the periods to which the determinations relate form a continuous period;

the continuous period is not to be more than 13 weeks, unless the Secretary determines otherwise, having regard to the continued existence, or likely continued existence, of the special circumstances on which the last preceding determination was based.

 (1) A pregnant woman is not required to satisfy the activity test for the period that starts 6 weeks before the woman’s expected date of confinement and ends on the day on which the woman gives birth to the child (whether or not the child is born alive).

 (2) If a woman gives birth to a child (whether or not the child is born alive), the woman is not required to satisfy the activity test for the period that starts on the day on which she gives birth to the child and ends 6 weeks after that day.

This Subdivision does not apply to a person who is qualified for a youth training allowance under subsection 65(1A).

A reference in this Subdivision to a person being exempt from the activity test, or ceasing to be exempt from the activity test, under, or under a provision of, this Subdivision is a reference to a person not being required to satisfy the activity test, or becoming required to satisfy the activity test, as the case may be, because of the operation of, or the operation of that provision of, this Subdivision.

 (1) Subject to this Subdivision, a person is not required to satisfy the activity test in respect of a period if:

 (a) throughout the period the person is incapacitated for work because of sickness or an accident; and

 (b) the incapacity is caused wholly, or virtually wholly, by a medical condition arising from the sickness or accident; and

 (c) the incapacity is, or is likely to be, of a temporary nature; and

 (d) if this Subdivision had not been enacted and paragraphs 65(1)(c), (d), (e) and (f) were disregarded, the person would qualify for youth training allowance; and

 (e) the person has, whether before or after the commencement of this section, given the Secretary a certificate of a medical practitioner, in a form approved by the Secretary, stating:

 (i) the medical practitioner’s diagnosis; and

 (ii) the medical practitioner’s prognosis; and

 (iii) that the person is incapacitated for work; and

 (iv) the period for which the person is incapacitated for work; and

 (f) the Secretary is satisfied that the incapacity has not been brought about with a view to obtaining an exemption from the activity test.

 (2) In this section:

work, in relation to a person, means work (whether full-time, part-time, permanent or casual) that:

 (a) is of a kind that the person could, in the Secretary’s opinion, be reasonably expected to do; and

 (b) is for at least 8 hours per week at award wages or above.

 (1) A person ceases to be exempt, under this Subdivision, from the activity test if:

 (a) the Secretary is of the opinion that the person should:

 (i) contact a particular officer of the Department; or

 (ii) attend an interview at a particular place; or

 (iii) complete a questionnaire; or

 (iv) attend a medical, psychiatric or psychological examination; and

 (b) the Secretary gives the person a written notice stating that the person is required, within a period stated in the notice, to:

 (i) contact the officer; or

 (ii) attend the interview; or

 (iii) complete the questionnaire; or

 (iv) attend the examination; or

 (v) if the person has undergone an examination—give the Secretary a report on the examination in the approved form; and

 (c) the Secretary is satisfied that it is reasonable for this section to apply to the person; and

 (d) the person does not take reasonable steps to comply with the requirement.

 (2) A notice under paragraph (1)(b) must inform the person to whom it is given of the effect of failure by the person to take reasonable steps to comply with the requirement set out in the notice.

 (1) A person ceases to be exempt, under this Subdivision, from the activity test if the person’s maximum exemption period ends.

 (2) Subject to this section, a person’s maximum exemption period is:

 (a) if the person has, whether before or after the commencement of this section, given the Secretary a medical certificate for the purpose of enabling the Secretary to decide whether the person was required to satisfy the activity test—the lesser of the following periods:

 (i) the period stated in the certificate as the period for which the person would be incapacitated for work;

 (ii) the period of 13 weeks that started or starts on the first day of the period so stated in the certificate; or

 (b) otherwise—the period of 4 weeks that started or starts on the day determined by the Secretary to have been the day on which the person’s incapacity for work began.

 (3) If:

 (a) a person is exempt, under this Subdivision, from the activity test; and

 (b) the person has, whether before or after the commencement of this section, given the Secretary a certificate of a medical practitioner that states the matters listed in paragraph 78B(1)(e) and is in accordance with the form approved under that paragraph; and

 (c) the Secretary is satisfied that the person’s incapacity for work will continue after the end of the person’s maximum exemption period;

the Secretary may extend the person’s maximum exemption period by a period that is not more than the lesser of the following periods:

 (d) a period equal to the period stated in the certificate as the period for which the person would be incapacitated for work;

 (e) 13 weeks.

 (3A) If:

 (a) a person was exempt, under this Subdivision, from the activity test; and

 (b) within 14 days after the end of the person’s maximum exemption period the person gives the Secretary a certificate of a medical practitioner containing the matters listed in paragraph 78B(1)(e) and in accordance with the form approved under that paragraph; and

 (c) the Secretary is satisfied that the person’s incapacity for work has continued after the end of the person’s maximum exemption period and that the incapacity will continue;

the Secretary may extend the maximum exemption period by a period of not more than the lesser of the following periods:

 (d) a period equal to the period stated in the certificate as the period for which the person would be incapacitated for work;

 (e) 13 weeks.

 (4) If:

 (a) a person is exempt, under this Subdivision, from the activity test; and

 (b) the person gives the Secretary written evidence (other than a certificate referred to in paragraph (3)(b)) that the person’s incapacity for work will continue after the end of the person’s maximum exemption period; and

 (c) the Secretary is satisfied that:

 (i) the person’s circumstances make it unreasonable to expect the person to obtain a certificate referred to in paragraph (3)(b) before the end of the maximum exemption period; and

 (ii) the person’s incapacity for work will continue after the end of the person’s maximum exemption period;

the Secretary may extend the person’s maximum exemption period by not more than 4 weeks.

 (4A) If:

 (a) a person was exempt, under this Subdivision, from the activity test; and

 (b) within 14 days after the end of the person’s maximum exemption period the person gives the Secretary written evidence (other than a certificate referred to in paragraph (3A)(b)) that the person’s incapacity for work will continue after the end of the person’s maximum exemption period; and

 (c) the Secretary is satisfied that:

 (i) the person’s circumstances make it unreasonable to expect the person to obtain a certificate referred to in paragraph (3A)(b); and

 (ii) the person’s incapacity for work has continued after the end of the person’s maximum exemption period and that the incapacity will continue;

the Secretary may extend the maximum exemption period by a period of not more than 4 weeks from the end of the previous maximum exemption period.

 (5) If:

 (a) a person is exempt, under this Subdivision, from the activity test; and

 (b) the person has, whether before or after the commencement of this section, given the Secretary a certificate referred to in paragraph (3)(b) before the end of the person’s maximum exemption period; and

 (c) before the end of the person’s maximum exemption period, the Secretary does not satisfy himself or herself that the person’s incapacity for work will continue after the end of that period; and

 (d) the sole or dominant cause of the Secretary failing so to satisfy himself or herself is an act or omission of an officer of the Department;

the Secretary may extend the person’s maximum exemption period by not more than 4 weeks.

Requirement to enter into Agreement

 (1) Subject to subsection (1A), if a person is claiming or receiving a youth training allowance, the Secretary may require the person to enter into a Youth Training Activity Agreement.

 (1AA) Subsection (1) does not apply to a person who is qualified for a youth training allowance only under subsection 65(1A).

 (1A) A person who, under Subdivision BAA, is not required to satisfy the activity test is not to be required to enter into a Youth Training Activity Agreement.

Require to enter other agreement

 (2) The Secretary may require a person who has entered into a Youth Training Activity Agreement to enter into another such agreement instead of the existing one.

Notice of requirement

 (3) The Secretary is to give a person who is required to enter into a Youth Training Activity Agreement notice of:

 (a) the requirement; and

 (b) the places and times at which the agreement is to be negotiated.

Form of Agreement

 (4) A Youth Training Activity Agreement is a written agreement, in a form approved by the Secretary, with the Commonwealth Employment Service.

Approved activities

 (1) A Youth Training Activity Agreement with a person is to require the person to undertake one or more of the following activities approved by the Secretary:

 (a) a job search;

 (b) a vocational training course;

 (c) training that would help in searching for work;

 (d) paid work experience;

 (e) measures designed to eliminate or reduce any disadvantage the person has in the labour market, other than measures compelling the person to work in return for payment of youth training allowance;

 (f) subject to section 82, if the agreement is entered into on or after 20 March 1995—development of self-employment;

 (g) subject to section 83, if the agreement is entered into on or after 20 March 1995—development of and/or participation in group enterprises or co-operative enterprises;

 (h) participation in a labour market program conducted by the Commonwealth Employment Service;

 (i) participation in a rehabilitation program;

 (j) an activity proposed by the person (such as unpaid voluntary work proposed by the person).

Secretary’s approval

 (2) The terms of an agreement (including the description of the activities that the person is to be required to undertake) are to be approved by the Secretary.

Secretary’s considerations concerning approval of terms

 (3) In considering whether to approve the terms of an agreement with a person, the Secretary is to have regard to the person’s capacity to comply with the proposed agreement and the person’s needs.

Capacity to comply with agreement, and person’s needs

 (4) In having regard to a person’s capacity to comply with an agreement and the person’s needs, the Secretary is to take into account:

 (a) the person’s education, experience, skills, age and physical condition; and

 (b) the state of the labour market in the locality where the person resides; and

 (c) the training opportunities available to the person; and

 (d) any matters that the Secretary considers relevant in the circumstances.

Variation, suspension, cancellation and review

 (5) An agreement with a person:

 (a) may be varied or suspended by the Secretary; and

 (b) if another Youth Training Activity Agreement is made with the person—may be cancelled by the Secretary; and

 (c) may be reviewed from time to time by the Secretary at the request of either party to the agreement.

Circumstances preventing or affecting compliance

 (6) The party to an agreement other than the Commonwealth Employment Service must tell the Secretary of any circumstances preventing or affecting the party’s compliance with the agreement.

Failure to enter agreement

 (1) If:

 (a) a person has been given notice under subsection 79(3) of a requirement to enter into a Youth Training Activity Agreement; and

 (b) the Secretary is satisfied, because of the person’s failure to:

 (i) attend the negotiation of the agreement; or

 (ii) respond to correspondence about the agreement; or

 (iii) agree to terms of the agreement proposed by the Commonwealth Employment Service;

  or for any other reason, that the person is unreasonably delaying entering into the agreement:

then:

 (c) the Secretary may give the person notice that the person is taken to have failed to enter the agreement; and

 (d) if the notice is given—the person is taken to have so failed.

Note: Refusal to enter into an agreement disqualifies a person for youth training allowance (see section 65).

Form of notice

 (2) A notice under paragraph (1)(c) must:

 (a) be in writing; and

 (b) set out the reasons for the decision to give the notice; and

 (c) include a statement describing the rights of the person to apply for the review of the decision.

Person previously received allowance

 (1) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any development of self-employment unless:

 (a) at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving either of the following:

 (i) a youth training allowance;

 (ii) a job search allowance; and

 (b) the Secretary is satisfied that the activity:

 (i) will be commercially viable 12 months after the person begins the activity; and

 (ii) is likely to provide the person with sustainable full-time employment that will provide the person with a level of income at least equivalent to the person’s maximum basic rate worked out under MODULE B in Schedule 1.

Time limitation

 (2) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any development of self-employment if:

 (a) the person is to undertake the activity for more than 12 months; or

 (b) subject to subsection (3), the person has previously been subject to a requirement under that or any other Youth Training Activity Agreement to undertake the same activity or a similar activity; or

 (c) at any time during the 6 months immediately before the time at which the activity is to start, the person has been subject to a requirement under that or any other Youth Training Activity Agreement or any Job Search Activity Agreement to undertake as an activity other development of self-employment.

Exception

 (3) Paragraph (2)(b) does not apply if the Secretary determines in writing that there are special circumstances that justify inclusion of the activity in the Youth Training Activity Agreement.

Certain activities excluded

 (4) This section does not apply to an activity to which a paragraph of subsection 80(1) other than paragraph 80(1)(f) or (g) applies.

Person previously received allowance, and activity will be commercially viable

 (1) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any development of a group enterprise or co-operative enterprise unless:

 (a) at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving either of the following:

 (i) a youth training allowance;

 (ii) a job search allowance; and

 (b) the Secretary is satisfied that the activity:

 (i) will be commercially viable 12 months after the person begins the activity; and

 (ii) is likely to provide the person with sustainable full-time employment that will provide the person with a level of income at least equivalent to the person’s maximum basic rate worked out under MODULE B in Schedule 1.

Person previously received allowance, and activity will provide work experience

 (2) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any participation in a group enterprise or co-operative enterprise unless:

 (a) at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving either of the following:

 (i) a youth training allowance;

 (ii) a job search allowance; and

 (b) the Secretary is satisfied that the activity is likely to provide the person with skills, training or work experience that will help the person to obtain paid employment providing a level of income at least equal to the person’s maximum basic rate worked out under MODULE B in Schedule 1.

Agreement not to require certain group activity

 (3) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any development of, or participation in, a group enterprise or co-operative enterprise if:

 (a) the person is to undertake the activity for more than 12 months; or

 (b) the person has previously been subject to a requirement under that or any other Youth Training Activity Agreement to undertake the same activity or a similar activity; or

 (c) at any time during the 6 months immediately before the time at which the activity is to start, the person has been subject to a requirement under that or any other Youth Training Activity Agreement to undertake as an activity other development of, or participation in, a group enterprise or co-operative enterprise.

Exception

 (4) This section does not apply to an activity to which a paragraph of subsection 80(1), other than paragraph 80(1)(f) or (g), applies.

 (1) If a Youth Training Activity Agreement entered into before 20 March 1995 contains a requirement that, because of section 82 or 83, could not have lawfully been included in the agreement if it had been entered into on or after that date, then, on and after that date, the agreement is taken not to include the requirement.

Relevant situations

 (1) A youth training allowance is not payable to a person for a period during which the person is qualified for youth training allowance if during that period:

 (a) the person has not provided a tax file number for the person (see section 86) or for the person’s partner (see section 87); or

 (b) the person is a full-time student (see section 88); or

 (c) another income support payment is being paid to the person (see section 89); or

 (d) the person is receiving income that is paid by a community or group from funds provided under a Commonwealth funded employment program (see section 90); or

 (e) the youth training allowance has not begun to be payable (see sections 92 and 137); or

 (g) the person is subject to an ordinary waiting period and has not served that waiting period (see sections 96 and 97); or

 (h) the person is subject to an education leavers waiting period and that period has not ended (see sections 98, 99 and 100); or

 (i) the person is subject to a newly arrived residents waiting period and that period has not ended (see sections 101 and 102); or

 (ia) section 92B applies to the person and the person fails to comply with a requirement in a notice given to the person under that section; or

 (j) the person fails to comply with a requirement that the person:

 (i) attend an office of the Department of Social Security or of the Commonwealth Employment Service; or

 (ii)  contact the Department of Social Security or the Commonwealth Employment Service; or

 (iii) give information;

  as required by section 114; or

 (ja) the person fails to comply with a notification requirement under section 148, 149, 150 or 343 (see section 115); or

 (k) a period of non-payment has been imposed because the person had previously ceased to be qualified for youth training allowance for failure to satisfy the activity test (see section 103); or

 (m) a period of non-payment has been imposed because:

 (i) the person’s unemployment is due to a voluntary act of the person (see section 106); or

 (ii) the person’s unemployment is due to misconduct by the person (see section 107); or

 (iii) the person has refused an offer of employment (see section 108); or

 (iiia) the person has refused or failed to provide information in relation to the person’s income from remunerative work (see paragraph 108A(a)); or

 (iiib) the person has knowingly or recklessly provided false or misleading information in relation to the person’s income from remunerative work; or

 (v) the person had previously ceased to be qualified for youth training allowance because the person was not registered with the Commonwealth Employment Service in an allowance category as being unemployed (see section 120); or

 (vi) the person is a seasonal worker (see section 121); or

 (vii) the person moved to an area of lower employment prospects (see section 122); or

 (n) the person is in gaol or undergoing psychiatric confinement (see section 123); or

 (o) the person is subject to a compensation preclusion period (see Division 12).

Note 1: For serving of waiting period see subsection 58(3).

Note 2: For allowance category see subsection 58(2).

Allowance rate nil

 (2) A youth training allowance is not payable to a person if the person’s youth training allowance rate would be nil.

Person must provide tax file number or employment declaration

 (1) A youth training allowance is not payable to a person if:

 (a) the person is requested under section 130 or 147 to:

 (i) give the Secretary a written statement of the person’s tax file number; or

 (ii) apply for a tax file number and give the Secretary a written statement of the person’s tax file number once it has been issued; and

 (b) at the end of 28 days after the request is made, the person has neither:

 (i) given the Secretary a written statement of the person’s tax file number; nor

 (ii) given the Secretary an employment declaration and satisfied either subsection (2) or (3).

Note 1: The Secretary can request a claimant for youth training allowance to quote the claimant’s tax file number under section 130.

Note 2: The Secretary can request a recipient of youth training allowance to quote the recipient’s tax file number under section 147.

Person does not know tax file number

 (2) A person satisfies this subsection if:

 (a) the employment declaration states that the person:

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

 (ii) has asked the Commissioner of Taxation to inform him or her of the number; and

 (b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

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

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

 (c) the Commissioner of Taxation has not told the Secretary that the person has no tax file number.

Application for tax file number pending

 (3) A person satisfies this subsection if:

 (a) the person’s declaration states that the person has applied for a tax file number; and

 (b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

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

 (ii) if the application is refused—that the application has been refused; or

 (iii) if the application is withdrawn—that the application has been withdrawn; and

 (c) the Commissioner of Taxation has not told the Secretary that the person has not applied for a tax file number; and

 (d) the Commissioner of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and

 (e) the application for a tax file number has not been withdrawn.

Member of couple must provide partner’s tax file number or declaration

 (1) Subject to subsection (4), a youth training allowance is not payable to a person if:

 (a) the person is a member of a couple; and

 (b) the person is requested under section 131 or 148 to give the Secretary a written statement of the tax file number of the person’s partner; and

 (c) at the end of 28 days after the request is made the person has neither:

 (i) given the Secretary a written statement of the partner’s tax file number; nor

 (ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).

Partner does not know tax file number

 (2) A person satisfies this subsection if:

 (a) the partner’s declaration states that the partner:

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

 (ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

 (b) the person has given the Secretary a document signed by the partner that authorises the Commissioner of Taxation to tell the Secretary:

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

 (ii) if the partner has a tax file number—the tax file number; and

 (c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

Application for partner’s tax file number pending

 (3) A person satisfies this subsection if:

 (a) the partner’s declaration states that the partner has applied for a tax file number; and

 (b) the person has given the Secretary a document signed by the partner that authorises the Commissioner of Taxation to tell the Secretary:

 (i) if a tax file number is issued to the partner—the tax file number; or

 (ii) if the application is refused—that the application has been refused; or

 (iii) if the application is withdrawn—that the application has been withdrawn; and

 (c) the Commissioner of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and

 (d) the application for a tax file number has not been withdrawn.

Secretary may waive requirement

 (4) The Secretary may waive the request for a statement of the partner’s tax file number if the Secretary is satisfied that:

 (a) the person does not know the partner’s tax file number; and

 (b) the person can obtain none of the following from the partner:

 (i) the partner’s tax file number;

 (ii) a statement of the partner’s tax file number;

 (iii) a declaration by the partner under subparagraph (1)(c)(ii).

Allowance not payable to full-time student

 (1) Subject to subsection (2), a youth training allowance is not payable to a person who is enrolled in a full-time course of education or of vocational training for the period that:

 (a) starts when the person starts the course; and

 (b) finishes when the person:

 (i) completes the course; or

 (ii) abandons the course; or

 (iii) gives notice to the provider of the course that the person wishes to withdraw from the course, or wishes to withdraw from such number of subjects that the person’s course will no longer be a full-time course; and

 (c) includes periods of vacation.

Periods when allowance payable to full-time student

 (2) Subsection (1) does not prevent a youth training allowance from being payable for any period during which:

 (a) a person is enrolled in a course that the Secretary has required the person to undertake under subsection 75(7); or

 (b) the person has deferred a course of education.

Social security pension or benefit becoming payable

 (1) If:

 (a) a person is receiving a youth training allowance; and

 (b) a social security pension or a social security benefit becomes payable to the person;

a youth training allowance is not payable to the person.

Note 1: Another payment type will generally not become payable to the person until the person claims it.

Note 2: The expression social security pension includes sheltered employment and rehabilitation allowances (see subsection 23(1) of the Social Security Act).

Note 3: For the day on which the youth training allowance ceases to be payable see section 151.

Person receiving payment under certain schemes

 (2) Subject to subsections (3) and (4), a youth training allowance is not payable to a person for a period if a payment has been or may be made in respect of the person for that period under:

 (a) a prescribed educational scheme, other than the ABSTUDY Tertiary Scheme to the extent that it applies to part-time students; or

 (b) the scheme to provide an allowance known as the Maintenance Allowance for Refugees; or

 (ba) the scheme to provide an allowance known as the Adult Migrant Education Program Living Allowance; or

 (bb) the scheme to provide an allowance known as the English as a Second Language Allowance to the extent that the scheme applies to full-time students; or

 (c) a LEAP program.

Note 1: For prescribed educational scheme see section 5 of the Social Security Act.

Note 2: For LEAP program see subsection 23(1) of the Social Security Act.

Payment before person starts course of study

 (3) If:

 (a) a person enrols in a full-time course of education; and

 (b) a payment under a scheme referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), youth training allowance is payable to the person for a period before the person starts the course.

Application made under AUSTUDY or ABSTUDY Schemes

 (4) If:

 (a) a person enrols in a full-time course of education; and

 (b) the course is to last for 6 months or more; and

 (c) an application is made for a payment in respect of the person under:

 (i) the AUSTUDY Scheme; or

 (ii) the ABSTUDY Schooling Scheme; or

 (iii) the ABSTUDY Tertiary Scheme; and

 (d) the person was receiving youth training allowance immediately before the start of the course;

the Secretary may decide that, in spite of subsection (2), youth training allowance is payable to the person until:

 (e) the application is determined; or

 (f) the end of the period of 3 weeks beginning on the day on which the course starts;

whichever happens first.

A youth training allowance is not payable to a person for a period if the person has received, or may receive, income for that period that is paid by a community or group from funds provided under a Commonwealth funded employment program.

Note: For Commonwealth funded employment program see subsection 58(1).

 (1) The provisional commencement day of a person who is qualified for youth training allowance under subsection 65(1A) is the day on which the person made the claim for disability support pension mentioned in paragraph 65(1A)(d).

 (2) If the person’s claim for disability support pension is rejected, the person’s provisional commencement day is to be worked out under section 91.

Day when person claims benefit

 (1) Subject to section 90A and this section, a person’s provisional commencement day is the day on which the person claims a youth training allowance.

 (1A) Subject to the following provisions of this section, if a person is, under Subdivision BAA, not required to satisfy the activity test, the person’s provisional commencement day is the day on which the person became incapacitated for work.

Initial incorrect or inappropriate claim followed by claim for youth training allowance

 (2) If:

 (a) the person makes a claim (the initial claim) for:

 (i) a social security pension, a service pension or a social security benefit; or

 (ii) a pension, allowance, benefit or other payment under an Act other than this Act or the Social Security Act, or under a program administered by the Commonwealth, that is similar in character to a youth training allowance; and

 (b) on the day on which the person makes the initial claim, the person is qualified for youth training allowance; and

 (c) the person afterwards makes a claim for youth training allowance; and

 (d) the Secretary is satisfied that it is reasonable for this subsection to apply to the person;

the person’s provisional commencement day is, subject to subsections (3), (4) and (5), the day on which the person made the initial claim.

Provisional commencement day where youth training allowance ceases to be payable because of an administrative breach

 (2B) If:

 (a) a person receives a youth training allowance; and

 (b) youth training allowance ceases to be payable to the person because of section 114 or 115; and

 (c) payment of the youth training allowance is cancelled or automatically terminated; and

 (d) the person lodges a claim for a youth training allowance within 14 days after the date of effect of the cancellation or automatic termination referred to in paragraph (c);

the person’s provisional commencement day is the day after the date of effect of the cancellation or automatic termination.

Claim within 14 days of Commonwealth Employment Service registration

 (3) Subject to subsection (3A), if:

 (a) a person is not a transferee to youth training allowance; and

 (b) the person is not subject to an education leavers waiting period (see subsection 98 (1)); and

 (c) the person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed; and

 (d) the day that would be the person’s provisional commencement day under subsections (1) and (2) occurs:

 (i) within 14 days after becoming so registered by the Commonwealth Employment Service; or

 (ii)  within a further period after becoming so registered by the Commonwealth Employment Service that the Secretary considers reasonable;

the person’s provisional commencement day is the day on which the person became registered by the Commonwealth Employment Service.

 (3A) Subject to subsection (2B), if:

 (a) a person is receiving a youth training allowance; and

 (b) youth training allowance ceases to be payable to the person because of section 114 or 115; and

 (c) payment of the youth training allowance to the person is cancelled or automatically terminated; and

 (d) the person registers with the CES within 14 days after the day on which the youth training allowances ceases to be payable; and

 (e) the person claims a youth training allowance more than 14 days after that allowance ceases to be payable to the person but within 14 days after registering with the CES;

then, the person’s provisional commencement day is 15 days after the date of effect of the cancellation or automatic termination.

Education leavers who claim within 14 days of Commonwealth Employment Service registration

 (4) If:

 (a) a person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed; and

 (b) the person is subject to an education leavers waiting period (see subsection 98(1));

the person’s provisional commencement day is:

 (c) if the person becomes so registered by the Commonwealth Employment Service before stopping the course, and the day that would be the person’s provisional commencement day under subsections (1) and (2) occurs:

 (i) within 14 days after stopping the course; or

 (ii) within any further period after stopping the course that the Secretary considers reasonable;

  the day after the last day on which the person was undertaking the course; or

 (d) if the person becomes so registered by the Commonwealth Employment Service after stopping the course, and the day that would be the person’s provisional commencement day under subsections (1) and (2) occurs:

 (i) within 14 days after becoming so registered by the Commonwealth Employment Service; or

 (ii) within any further period after becoming so registered by the Commonwealth Employment Service that the Secretary considers reasonable;

  the day on which the person became so registered by the Commonwealth Employment Service.

Transferees

 (5) Subject to subsections (5A) and (5B), if a person is a transferee to youth training allowance and:

 (a) the person claims the youth training allowance within 14 days after the transfer day; or

 (b) both of the following subparagraphs are satisfied:

 (i) the person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed within 14 days after the transfer day; and

 (ii) the day that would be the person’s provisional commencement day under subsections (1) and (2) occurs within 14 days after the person becomes so registered by the Commonwealth Employment Service or within any further period that the Secretary considers reasonable;

the person’s provisional commencement day is the person’s transfer day.

 (5A) Subject to subsection (5B), if:

 (a) a person is a transferee to youth training allowance; and

 (b) the person is, under Subdivision BAA, not required to satisfy the activity test; and

 (c) the person claims the youth training allowance within 4 weeks after the person’s transfer day;

the person’s provisional commencement day is the person’s transfer day.

 (5B) If:

 (a) a person is, under Subdivision BAA, not required to satisfy the activity test; and

 (b) the person is subject to an education leaver’s waiting period (see subsection 98(1)); and

 (c) the person became incapacitated for work while undertaking the course of education;

the person’s provisional commencement day is the last day on which the person was undertaking the course.

Claim resulting from a major disaster

 (6) If a person:

 (a) claims a disaster relief payment under the Social Security Act; and

 (b) is qualified for the payment; and

 (c) as a result of the major disaster to which the payment relates, claims youth training allowance within 14 days after the day on which the person claimed the disaster relief payment;

the person’s provisional commencement day is the day on which he or she was affected by the disaster.

Note 1: For transferee to a youth training allowance and transfer day see section 61.

Note 2: For allowance category see subsection 58(2).

 (1) Subject to subsection (2), this section applies to a person if:

 (a) the person telephones the Department in relation to making a claim for:

 (i) a youth training allowance; or

 (ii) a disability support pension under the Social Security Act; or

 (ii) a sickness allowance under the Social Security Act; or

 (iii) a newstart allowance under the Social Security Act; and

 (b) on the day the person made the telephone call, the person was qualified for a youth training allowance; and

 (c) the Secretary gives the person a written notice acknowledging that the Department has been contacted in relation to making the claim; and

 (d) the person lodges a claim for a pension or allowance referred to in paragraph (a) within the period specified in subsection (2); and

 (e) if the claim referred to in paragraph (d) is not a claim for a youth training allowance—the person subsequently lodges a claim for a youth training allowance; and

 (f) the Secretary is satisfied that the person suffered a medical condition that significantly impacted on the person’s ability to work at the time the person made the telephone call referred to in paragraph (a); and

 (g) either:

 (i) the person gives the Secretary the notice referred to in paragraph (c) when lodging the claim referred to in paragraph (d); or

 (ii) the Department has a written record that the notice referred to in paragraph (c) has been sent to the person.

 (2) Subject to subsection (3), for the purposes of paragraph (1)(d), the period is 21 days after the day on which the person made the telephone call to the Department (the 21 day period).

 (3) The Secretary may determine, by written notice given to the person:

 (a) within the 21 day period; or

 (b) within the period of any extension under this subsection;

that the period for the purposes of paragraph (1)(d) is extended to a period that is not longer than 3 months after the day on which the person made the telephone call to the Department.

 (4) If this section applies to a person, the person is taken to have lodged a claim in accordance with section 127 on the day on which the person made the telephone call referred to in paragraph (1)(a).

 (1) A youth training allowance is not payable to a person who is qualified for the allowance before:

 (a) if the person is not subject to a waiting period—the person’s provisional commencement day; or

 (b) if the person is subject to one waiting period only—the first day after the end of that waiting period; or

 (c) if the person is subject to more than one waiting period—the first day after all of the waiting periods have ended.

 (2) This section does not apply to a person who is, under Subdivision BAA, not required to satisfy the activity test.

Note 1: For provisional commencement day see section 91.

Note 2: A waiting period is:

(b) an ordinary waiting period (see sections 96 and 97); or

(c) an education leavers waiting period (see sections 98, 99 and 100); or

(d) a newly arrived residents waiting period (see sections 101 and 102).

Note 4: If the person is subject to an education leavers waiting period and another waiting period, the education leavers waiting period runs concurrently with the other waiting period and the youth training allowance will not be payable until the longest waiting period has ended.

Note 5: If the person is subject to a newly arrived residents waiting period and another waiting period, the newly arrived residents waiting period runs concurrently with the other waiting period and the youth training allowance will not be payable until the longest waiting period has ended.

 (1) If a person who is, under Subdivision BAA, not required to satisfy the activity test is qualified for youth training allowance, the allowance is not payable to the person before the day worked out in accordance with the following provisions of this section.

 (2) If the person:

 (a) claims the allowance within 5 weeks after the day on which the person becomes incapacitated for work; and

 (b) the person is not subject to a waiting period;

the allowance is not payable to the person before the person’s provisional commencement day.

Note 1: A waiting period is:

(b) an ordinary waiting period (see sections 96 and 97); or

(c) an education leavers waiting period (see sections 98 to 100); or

(d) a newly arrived resident’s waiting period (see sections 101 and 102).

Note 2: For provisional commencement day see section 91.

 (3) If the person:

 (a) claims the allowance within 5 weeks after the day on which the person becomes incapacitated for work; and

 (b) the person is subject to a waiting period;

the allowance is not payable to the person before the first day after the end of the waiting period.

Note 2:  If the person is subject to an education leavers waiting period and another waiting period, the education leavers waiting period runs concurrently with the other waiting period and the youth training allowance will not be payable until the longest waiting period has ended.

Note 3: If the person is subject to a newly arrived resident’s waiting period and another waiting period, the newly arrived resident’s waiting period runs concurrently with the other waiting period and the youth training allowance will not be payable until the longest waiting period has ended.

 (4) If:

 (a) the person claims the allowance more than 5 weeks after the day on which the person becomes incapacitated for work; and

 (b) the Secretary is satisfied that the incapacity is the sole or dominant cause for the failure to claim the allowance within 5 weeks after that day;

the allowance is not payable to the person before the day determined by the Secretary.

 (5) The day determined under subsection (4):

 (a) must not be more than 4 weeks before the day on which the person lodges the claim for the allowance; and

 (b) if the person is subject to a waiting period—must not be earlier than the first day after the end of the waiting period.

Note 2: If the person is subject to an education leavers waiting period and another waiting period, the education leavers waiting period runs concurrently with the other waiting period and the youth training allowance will not be payable until the longest waiting period has ended.

Note 3: If the person is subject to a newly arrived resident’s waiting period and another waiting period, the newly arrived resident’s waiting period runs concurrently with the other waiting period and the youth training allowance will not be payable until the longest waiting period has ended.

 (6) If:

 (a) the person claims the allowance more than 5 weeks after the day on which the person becomes incapacitated for work; and

 (b) the Secretary is not satisfied that the incapacity is the sole or dominant cause of the failure to claim the allowance within 5 weeks after that day;

the allowance is not payable to the person before the day on which the claim is lodged.

 (1) A youth training allowance is not payable to a person who is not required to satisfy the activity test if:

 (a) the person is receiving a youth training allowance; and

 (b) the Secretary is of the opinion that the person should:

 (i) contact a particular officer of the Department; or

 (ii) attend an interview at a particular place; or

 (iii) complete a questionnaire; or

 (iv) attend a medical, psychiatric or psychological examination; and

 (c) the Secretary gives the person a written notice stating that the person is required, within a period stated in the notice, to:

 (i) contact the officer; or

 (ii) attend the interview; or

 (iii) complete the questionnaire; or

 (iv) attend the examination; or

 (v) if the person has undergone an examination—give the Secretary a report on the examination in the approved form; and

 (d) the Secretary is satisfied that it is reasonable for this section to apply to the person; and

 (e) the person does not take reasonable steps to comply with the requirement.

 (2) A notice under paragraph (1)(b) must inform the person to whom it is given of the effect of failure by the person to take reasonable steps to comply with the requirement set out in the notice.

A person is subject to an ordinary waiting period unless:

 (a) at some time in the 13 weeks immediately before the person’s provisional commencement day, the person received:

 (i) a youth training allowance; or

 (ii) a social security benefit; or

 (iii) a social security pension; or

 (iv) a service pension; or

 (b) the person:

 (i) has started formal vocational training in a labour market program approved by the Secretary or has started a rehabilitation program approved by the Secretary; and

 (ii) has been exempted from the application of this section by the Secretary; or

 (c) the person is a member of a couple and the person’s partner dies; or

 (d) the Secretary is satisfied that the person would suffer severe financial hardship if the person were subject to the ordinary waiting period; or

 (e) the following conditions apply:

 (i) the person undertakes a LEAP program;

 (ii) immediately before undertaking the program, the person was receiving a social security pension, a social security benefit or a youth training allowance;

 (iii) the person completes the program;

 (iv) immediately after completing the program, the person is qualified for youth training allowance;

 (v) the person claims youth training allowance within 14 days after the day on which the person completes the program.

Note 1: For provisional commencement day see section 91.

Note 2: For social security benefit see subsection 23(1) of the Social Security Act.

Note 3:  For social security pension see subsection 23(1) of the Social Security Act.

Note 4: For service pension see subsection 23(1) of the Social Security Act.

Note 5: For LEAP program see subsection 23(1) of the Social Security Act.

No unused annual leave waiting period

 (1) If a person:

 (a) is subject to an ordinary waiting period; and

 (c) is not disqualified for youth training allowance under section 72 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the person’s provisional commencement day.

Note 1: For provisional commencement day see section 91.

Note 2: If the person is subject to an education leavers waiting period, the education leavers waiting period runs concurrently with the ordinary waiting period.

Note 3: If the person is subject to a newly arrived residents waiting period, the newly arrived residents waiting period runs concurrently with the ordinary waiting period.

Day on which liquid assets test waiting period ends

 (3) If a person:

 (a) is subject to an ordinary waiting period; and

 (b) is disqualified for youth training allowance under section 72 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the day after the end of the liquid assets waiting period.

 (4) If:

 (a) after the commencement of this subsection, a person becomes temporarily incapacitated for work and claims sickness allowance under the Social Security Act 1991; and

 (b) because of sections 693 and 694 of that Act (ordinary waiting period), sickness allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

 (i) if the person is not disqualified for sickness allowance under section 676 of that Act (liquid assets test)—the person’s provisional commencement day for sickness allowance ; or

 (ii) if the person is disqualified for sickness allowance under section 676 of that Act (liquid assets test)—the day after the day on which the person’s liquid assets waiting period for sickness allowance ends; and

 (c) during that period the person ceases to be incapacitated for work and claims youth training allowance;

then, despite subsections (1), (2) and (3), the person’s ordinary waiting period is a period of 7 days starting on the applicable day.

Note 1: For liquid assets test waiting period for sickness allowance see section 676 of the Social Security Act.

Note 2: For provisional commencement day for sickness allowance see section 687 of the Social Security Act.

People subject to waiting period

 (1) Subject to subsections (2), (3), (4) and (5), a person is subject to an education leavers waiting period if the person:

 (a) was undertaking a full-time course of education of at least 6 months duration; and

 (b) has stopped the course; and

 (c) immediately before stopping the course, was not receiving:

 (i) a social security pension; or

 (ii) a social security benefit; and

 (d) has a provisional commencement day within 6 months after stopping the course; and

 (e) is not covered by subsection (6); and

 (f) is not covered by subsection (7) (people otherwise qualified for special benefit).

People not subject to waiting period

 (2) Subsection (1) does not apply to a person if both of the following conditions apply:

 (a) the person is a transferee to youth training allowance;

 (b) the person claims the youth training allowance:

 (i) within 14 days after the transfer day; or

 (ii) if the person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed within 14 days after the transfer day—within 14 days after the day on which the person became so registered or any further period that the Secretary considers reasonable.

No application to certain transferees to youth training allowance

 (3) Subsection (1) does not apply to a person who becomes qualified for a youth training allowance at the end of a period for which, under subsection 73(3), the person is taken to have been registered by the Commonwealth Employment Service in an allowance category as being unemployed (non-registration up to 6 weeks).

No application to certain people who become qualified for youth training allowance

 (4) Subsection (1) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii) a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

Note: For provisional commencement day see section 91.

People returning to income support

 (5) Subsection (1) does not apply to a person if:

 (a) the person is receiving a social security pension or social security benefit; and

 (b) the person stops receiving the pension or benefit on a particular day (the termination day); and

 (c) the person undertakes a full-time course of education of at least 6 months duration; and

 (d) the person stops the course; and

 (e) the person’s provisional commencement day is within 12 months after the termination day.

Note 1:  For social security benefit see subsection 23(1) of the Social Security Act.

Note 2: For social security pension see subsection 23(1) of the Social Security Act.

Note 3: For provisional commencement day see section 91.

No education leavers waiting period in some cases if already served

 (6) A person who would otherwise be subject to an education leavers waiting period in relation to youth training allowance is not subject to such a period if:

 (a) the person had previously been subject to an education leavers waiting period under this Part or the Social Security Act; and

 (b) a youth training allowance had been payable to the person continuously from the end of the education leavers waiting period until immediately before the person started the course; and

 (c) the person’s provisional commencement day is within 4 weeks after starting the course.

Note 1: For provisional commencement day see section 91.

Note 2: For education leavers waiting period  see subsection 58(1).

People otherwise qualified for special benefit

 (7) A person is not subject to an education leavers waiting period if the Secretary is satisfied that special benefit under Part 2.15 of the Social Security Act would be payable to the person during the waiting period if the person were subject to the waiting period.

Note: For education leavers waiting period see subsection 58(1).

People covered by this section

 (1) This section applies to a person unless section 100 (secondary school leavers) applies to the person.

General rule

 (2) Subject to this section, the education leavers waiting period starts on the person’s provisional commencement day and lasts for:

 (a) 13 weeks if, on the person’s provisional commencement day, the person:

 (i) is not a member of a couple; and

 (ii) does not have a dependent child; or

 (b) 6 weeks if, on the person’s provisional commencement day, the person:

 (i) is a member of a couple; or

 (ii) has a dependent child.

Note 1: The duration of the education leavers waiting period may be modified by:

(a) subsections (3) and (4) (change of status during waiting period);

(b) subsection (6) (periods of employment or periods on special benefit);

(c) subsections (7) and (8) (periods of part-time employment);

(d) subsection (10) (previous periods of non-payment because of education leavers waiting period);

(e) subsection (11) (6 months ceiling).

Note 2: For provisional commencement day see section 91.

Change of status in first 6 weeks

 (3) Subject to subsection (5), if:

 (a) a person who is covered by paragraph (2)(a) becomes a member of a couple; or

 (b) a person becomes a dependent child of someone who is covered by paragraph (2)(a);

within 6 weeks from and including the person’s provisional commencement day, the education leavers waiting period starts on the person’s provisional commencement day and lasts for 6 weeks.

Note: For provisional commencement day see section 91.

Change of status after 6 weeks

 (4) Subject to subsection (5), if:

 (a) a person who is covered by paragraph (2)(a) becomes a member of a couple; or

 (b) a person becomes a dependent child of someone who is covered by paragraph (2)(a);

in the period:

 (c) starting at the end of 6 weeks from the person’s provisional commencement day; and

 (d) lasting for 6 weeks;

the education leavers waiting period starts on the person’s provisional commencement day and ends on the day before the day on which the person is first covered by paragraph (a) or (b).

Note: For provisional commencement day see section 91.

 (4A) If:

 (a) after the commencement of this subsection, a person becomes temporarily incapacitated for work and claims sickness allowance under the Social Security Act 1991; and

 (b) because of sections 695 and 696 of that Act (education leavers waiting period—non-secondary school leavers), sickness allowance is not payable to the person for a period starting on the person’s provisional commencement day for sickness allowance; and

 (c) during that period the person ceases to be incapacitated for work and claims youth training allowance;

then, despite subsections (2), (3) and (4), the person’s education leavers waiting period is taken to have started on the person’s provisional commencement day for sickness allowance.

Note: For provisional commencement day for sickness allowance see section 687 of the Social Security Act.

Notification required

 (5) For the purposes of subsections (3) and (4):

 (a) a person is not taken to have become a member of a couple; and

 (b) a person is not taken to have become a dependent child of someone;

until the person tells the Department of Social Security that this is the case.

Reduction of waiting period for periods of full-time employment or special benefit

 (6) The waiting period imposed by subsection (2) or (3) is to be reduced by a period equivalent to:

 (a) if the person is subject to a 13 week education leavers waiting period—any period during which the person was employed on a full-time basis after stopping the course; and

 (b) if the person is subject to a 6 week education leavers waiting period—any period during which the person has been employed, at any time, on a full-time basis; and

 (c) any period during which the person was paid special benefit under Part 2.15 of the Social Security Act after stopping the course.

Reduction of waiting period for periods of part-time work

 (7) The waiting period imposed by subsection (2) or (3) is reduced for the period worked out under subsection (8) if the person has had at least 35 hours of part-time work.

Note: For part-time work see subsection (12).

Calculation of part-time work reduction

 (8) If subsection (7) applies to the person, the waiting period reduction is:

 (a) one week for the first 35 hours of part-time work the person has had; and

 (b) one day for each complete additional 7 hours of part-time work the person has had.

Date of part-time work

 (9) If the person is subject to a 13 week education leavers waiting period, only part-time work that the person has had since stopping the course of education is to be taken into account for the purposes of subsections (7) and (8).

Reduction of education leavers waiting period where already partially served

 (10) If:

 (a) a person is subject to an education leavers waiting period; and

 (b) the person started the course concerned at a time when a job search allowance or youth training allowance was not payable to the person because of an education leavers waiting period under this Part or the Social Security Act; and

 (c) the person’s provisional commencement day is within 4 weeks after the person started the course concerned;

the duration of the first-mentioned education leavers waiting period is reduced by the number of days of the previous education leavers waiting period that the person had served immediately before starting the course.

Note 1: For provisional commencement day see section 91.

Note 2: For education leavers waiting period  see section 98.

Period not to extend beyond 6 months after end of course

 (11) An education leavers waiting period that applies in respect of a course of study undertaken by a person is not to extend more than 6 months after the person has stopped the course.

Interpretation

 (12) In this section:

part-time work means work engaged in otherwise than on a full-time basis and includes such work engaged in on a casual basis.

People covered by this section

 (1) This section applies to a person if the course of education that the person stops is a full-time course of education at a secondary school.

General rule

 (2) Subject to this section, the education leavers waiting period starts on the person’s waiting period start day and lasts for:

 (a) 13 weeks if, on that day, the person:

 (i) is not a member of a couple; and

 (ii) does not have a dependent child; or

 (b) 6 weeks if, on that day, the person:

 (i) is a member of a couple; or

 (ii) has a dependent child.

Note 1: The duration of the education leavers waiting period may be modified by:

(a) subsections (3) and (4) (change of status during waiting period);

(b) subsection (6) (15 February cut-off);

(c) subsection (7) (periods of full-time employment or periods on special benefit);

(d) subsections (8) and (9) (periods of part-time employment);

(e) subsection (11) (previous periods of non-payment because of education leavers waiting period).

Note 2: For waiting period start day see subsection (12).

Change of status in first 6 weeks

 (3) Subject to subsection (5), if:

 (a) a person who is covered by paragraph (2)(a) becomes a member of a couple; or

 (b) a person becomes a dependent child of someone who is covered by paragraph (2)(a);

within 6 weeks from and including the person’s waiting period start day, the education leavers waiting period starts on the person’s waiting period start day and lasts for 6 weeks.

Note: For waiting period start day see subsection (12).

Change of status after 6 weeks

 (4) Subject to subsection (5), if:

 (a) a person who is covered by paragraph (2)(a) becomes a member of a couple; or

 (b) a person becomes a dependent child of someone who is covered by paragraph (2)(a);

in the period:

 (c) starting at the end of 6 weeks from the person’s waiting period start day; and

 (d) lasting for 6 weeks;

the education leavers waiting period starts on the person’s waiting period start day and ends on the day before the day on which the person is first covered by paragraph (a) or (b).

Note:  For waiting period start day see subsection (12).

 (4A) If:

 (a) after the commencement of this subsection, a person becomes temporarily incapacitated for work and claims sickness allowance under the Social Security Act 1991; and

 (b) because of sections 695 and 696A of that Act (education leavers waiting period—secondary school leavers), sickness allowance is not payable to the person for a period starting on the day after the day on which the person stops a full-time course of education at a secondary school; and

 (c) during that period the person ceases to be incapacitated for work and claims youth training allowance;

then, despite subsections (2), (3) and (4), the person’s education leavers waiting period is taken to have started on the day after the day on which the person stopped a full-time course of education at a secondary school.

Notification required

 (5) For the purposes of subsections (3) and (4):

 (a) a person is not taken to have become a member of a couple; and

 (b) a person is not taken to have become a dependent child of someone;

until the person tells the Department of Social Security that this is the case.

Waiting period to end on 15 February

 (6) If, apart from this subsection, a person’s education leavers waiting period would end later than 15 February next after the person’s waiting period start day, then the waiting period ends on that 15 February.

Reduction of waiting period for periods of special benefit and full-time employment

 (7) The waiting period imposed by subsection (2) or (3) is reduced by a period equivalent to:

 (a) if the person is subject to a 13 week education leavers waiting period—any period during which the person was employed on a full-time basis after stopping the course; and

 (b) if the person is subject to a 6 week education leavers waiting period—any period during which the person has been employed, at any time, on a full-time basis; and

 (c) any period during which the person was paid special benefit under Part 2.15 of the Social Security Act after stopping the course.

Reduction of waiting period for periods of part-time work

 (8) The waiting period imposed by subsection (2) or (3) is reduced for the period worked out under subsection (9) if the person has had at least 35 hours of part-time work.

Note: For part-time work see subsection (12).

Calculation of part-time work reduction

 (9) If subsection (8) applies to the person, the waiting period reduction is:

 (a) one week for the first 35 hours of part-time work the person has had; and

 (b) one day for each complete additional 7 hours of part-time work the person has had.

Date of part-time work

 (10) If the person is subject to a 13 week education leavers waiting period, only part-time work that the person has had since stopping the course of education is taken into account for the purposes of subsections (8) and (9).

Reduction of education leavers waiting period if already partially served

 (11) If:

 (a) a person is subject to an education leavers waiting period; and

 (b) the person started the course concerned at the time when a job search allowance, a youth training allowance or sickness allowance was not payable to the person because of an education leavers waiting period under this Part or the Social Security Act; and

 (c) the person’s provisional commencement day is within 4 weeks after the person started the course concerned;

the duration of the first-mentioned education leavers waiting period is reduced by the number of days of the previous education leavers waiting period that the person had served immediately before starting the course.

Note 1:  For provisional commencement day see section 91.

Note 2: For education leavers waiting period see section 98.

Interpretation

 (12) In this section:

part-time work means work engaged in otherwise than on a full-time basis and includes such work engaged in on a casual basis.

waiting period start day, in relation to a person, means the day after the day on which the person stops a full-time course of education at a secondary school.

Application

 (1) Subject to this section, a person who:

 (a) has entered Australia on or after 1 January 1993; and

 (b) holds a permanent visa;

is subject to a newly arrived residents waiting period.

Note: For holder and permanent visa see subsection 7(1) of the Social Security Act.

Person holding visa

 (2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a youth training allowance.

Person holding entry permit

 (3) Subsection (1) does not apply to a person:

 (a) if, immediately before 1 September 1994, the person had held a valid designated temporary entry permit for a continuous period of at least 26 weeks; or

 (b) if:

 (i) immediately before 1 September 1994, the person had held a valid designated temporary entry permit for a continuous period (permit period) of less than 26 weeks; and

 (ii) that permit was continued in force as a temporary visa by regulations made under the Migration Reform Act 1992; and

 (iii) the period during which that permit continued to be in force as a temporary visa together with the permit period is at least 26 weeks.

Note: For designated temporary entry permit see subsection 7(1) of the Social Security Act.

Person already subject to waiting period

 (5) Subsection (1) does not apply to a person if:

 (a) the person has already served a newly arrived residents waiting period under this Part or a newly arrived resident’s waiting period under the Social Security Act; or

 (b) the person:

 (i) has previously entered Australia; and

 (ii)  held a permanent entry permit granted under the Migration Act 1958 as then in force, or a permanent visa, before the person’s last departure from Australia before 1 January 1993.

Note: For newly arrived resident’s waiting period under the Social Security Act see subsection 23(1) of that Act.

Start of period

 (1) If a person is subject to a newly arrived resident’s waiting period, the period starts on the day on which the person:

 (a) entered Australia; or

 (b) was granted a permanent visa;

whichever is the later.

Note: For permanent visa see subsection 7(1) of the Social Security Act 1991.

Duration—temporary entry permit holders

 (2) If:

 (a) immediately before 1 September 1994, the person held a valid designated temporary entry permit; and

 (b) that permit was continued in force as a temporary visa by regulations made under the Migration Reform Act 1992; and

 (c) that temporary visa was in force immediately before the person was granted his or her permanent visa;

the newly arrived residents waiting period ends 26 weeks after the day on which the designated temporary entry permit was granted to the person.

Note: For designated temporary entry permit see subsection 7(1) of the Social Security Act.

Duration—other people

 (3) If subsection (2) does not apply, the newly arrived resident’s waiting period ends:

 (a) if a person:

 (i) entered Australia; and

 (ii) was granted a permanent visa;

  before the day on which this subsection commences—26 weeks after whichever of the events referred to in subparagraphs (i) and (ii) happened last; or

 (b) if a person:

 (i) entered Australia; and

 (ii) was granted a permanent visa;

  on or after the day on which this subsection commences—104 weeks after whichever of the events referred to in subparagraphs (i) and (ii) happened last; or

 (c) if a person:

 (i) entered Australia before the day on which this subsection commences; and

 (ii) was granted a permanent visa on or after the day on which this subsection commences;

  104 weeks after the day on which the person was granted the permanent visa; or

 (d) if a person:

 (i) was granted a permanent visa before the day on which this subsection commences; and

 (ii) entered Australia on or after the day on which this subsection commences;

  104 weeks after the day on which the person entered Australia.

 (1) Subject to subsection (2), if a person fails to satisfy the activity test (the failure), a youth training allowance is not payable to the person.

 (1A) If a youth training allowance becomes payable to the person after the time it ceases to be payable under subsection (1), then:

 (a) if the failure is the person’s first or second activity test breach in the 2 years immediately before the day after the failure—an activity test breach rate reduction period applies to the person; or

 (b) if the failure is the person’s third or subsequent activity test breach in the 2 years immediately before the day after the failure—an activity test non-payment period applies to the person.

Exemption for person in labour market or rehabilitation program

 (2) Subsection (1) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii)  a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

 (1) Subject to subsection (2), if:

 (a) a person is required to enter into a Youth Training Activity Agreement in order to qualify, or to continue to qualify, for a youth training allowance; and

 (b) the person fails to enter into a Youth Training Activity Agreement (the failure);

a youth training allowance is not payable to the person because of the failure.

 (1A) If a youth training allowance becomes payable to the person after the time it ceases to be payable under subsection (1), then:

 (a) if the failure is the person’s first or second activity test breach in the 2 years immediately before the day after the failure—an activity test breach rate reduction period applies to the person; or

 (b) if the failure is the person’s third or subsequent activity test breach in the 2 years immediately before the day after the failure—an activity test non-payment period applies to the person.

Exemption for person in labour market or rehabilitation program

 (2) Subsection (1) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii)  a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

Exemption for person referred to case manager

 (3) Subsection (1) does not apply to a person who:

 (a) has been referred to a case manager under Part 4.3 of the Employment Services Act 1994; and

 (b) has been exempted from the application of that subsection by the Secretary.

 (1) Subject to subsection (2), if:

 (a) a person is required to take reasonable steps to comply with the terms of a Youth Training Activity Agreement in order to qualify, or to continue to qualify, for a youth training allowance; and

 (b) the person fails to take reasonable steps to comply with the terms of the Youth Training Activity Agreement (the failure);

a youth training allowance is not payable to the person because of the failure.

 (1A) If a youth training allowance becomes payable to the person after the time it ceases to be payable under subsection (1), then:

 (a) if the failure is the person’s first or second activity test breach in the 2 years immediately before the day after the failure—an activity test breach rate reduction period applies to the person; or

 (b) if the failure is the person’s third or subsequent activity test breach in the 2 years immediately before the day after the failure—an activity test non-payment period applies to the person.

Note:The operation of this section is modified for participants in the case management system by section 45 of the Employment Services Act 1994.

Exemption for person in labour market or rehabilitation program

 (2) Subsection (1) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii) a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

Exemption for person referred to case manager

 (3) Subsection (1) does not apply to a person who:

 (a) has been referred to a case manager under Part 4.3 of the Employment Services Act 1994; and

 (b) has been exempted from the application of that subsection by the Secretary.

  If:

 (a) a person’s unemployment is due, either directly or indirectly, to a voluntary act of the person (the voluntary act); and

 (b) the Secretary is not satisfied that the person’s voluntary act was reasonable;

then:

 (c) if the voluntary act is the person’s first or second activity test breach in the 2 years immediately before the day after the voluntary act—an activity test breach rate reduction period applies to the person; or

 (d) if the voluntary act is the person’s third or subsequent activity test breach in the 2 years immediately before the day after the voluntary act—an activity test non-payment period applies to the person.

  If a person’s unemployment is due to the person’s misconduct as a worker (the misconduct), then:

 (a) if the misconduct is the person’s first or second activity test breach in the 2 years immediately before the day after the misconduct—an activity test breach rate reduction period applies to the person; or

 (b) if the misconduct is the person’s third or subsequent activity test breach in the 2 years immediately before the day after the misconduct—an activity test non-payment period applies to the person.

 (1) If a person has refused or failed, without reasonable excuse, to accept a suitable offer of employment (the failure), a youth training allowance is not payable to the person.

 (2) If a youth training allowance becomes payable to the person after the time it ceases to be payable under subsection (1), then:

 (a) if the failure is the person’s first or second activity test breach in the 2 years immediately before the day after the failure—an activity test breach rate reduction period applies to the person; or

 (b) if the failure is the person’s third or subsequent activity test breach in the 2 years immediately before the day after the failure—an activity test non-payment period applies to the person.

 (1) If a person:

 (a) refuses or fails, without reasonable excuse, to provide information in relation to a person’s income from remunerative work (the failure); or

 (b) knowingly or recklessly provides false or misleading information in relation to the person’s income from remunerative work (the provision of information);

when required to do so under a provision of this Act, a youth training allowance is not payable to the person.

 (2) If a youth training allowance becomes payable to the person after the time it ceases to be payable under subsection (1), then:

 (a) if the failure or the provision of information is the person’s first or second activity test breach in the 2 years immediately before the day after the failure or the provision of information—an activity test breach rate reduction period applies to the person; or

 (b) if the failure or provision of information is the person’s third or subsequent activity test breach in the 2 years immediately before the day after the failure or the provision of information—an activity test non-payment period applies to the person.

If an activity test non-payment period applies to a person under this Part, the period applicable to the person is 8 weeks.

Notice of start of period

 (1) Subject to subsection 111(2), if an activity test non-payment period applies to a person under this Part, the Secretary must give the person a written notice telling the person of the start of the activity test non-payment period that applies to the person.

When period starts

 (2) Subject to subsections (3) and (6) and section 111, the activity test non-payment period starts on the day on which the notice is given to the person.

 (3) If, at the time of the commencement of an activity test non-payment period under this Part, the person is already subject to an activity test non-payment period (the pre-existing non-payment period), the pre-existing non-payment period is taken to end immediately before the commencement of the activity test non-payment period under this Part.

Youth training allowance ceasing to be payable

 (6) Subject to sections 111 and 112, if:

 (a) on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have started, youth training allowance ceases to be payable to the person; and

 (b) it has not ceased to be payable because of the application of an activity test deferment period;

the activity test non-payment period referred to in subsection (1) starts on the day on which the youth training allowance ceases to be payable to the person.

Note: For activity test deferment period, youth training allowance automatic deferment provision and deferment period see subsection 58(1).

 (1) Subject to section 112:

 (a) at a time when the person was not qualified for a youth training allowance, an event occurred that would have resulted in an activity test non-payment period applying to the person under:

 (i) section 103 because the person would have been taken to have failed the activity test under subsection 75A(2); or

 (ii) section 106 or 107;

  had the person made a claim for a youth training allowance; and

 (b) before the end of that period (assuming that the period had commenced on the day on which the event occurred), the person made a claim for a youth training allowance;

the activity test non-payment period is taken to have commenced on the day after the day on which the event occurred.

 (3) Subject to section 112, if:

 (a) at a time when the person was not qualified for a youth training allowance, an event occurred that would have resulted in an activity test non-payment period applying to the person under:

 (i) section 103 because the person would have been taken to have failed the activity test under subsection 75A(2); or

 (ii) section 106 or 107;

  had the person made a claim for a youth training allowance; and

 (b) the person made a claim for a youth training allowance after the end of that period (assuming that the period had commenced on the day on which the event occurred);

then:

 (c) the activity test non-payment period is taken to have commenced and to have ended before the claim was made; and

 (d) the Secretary is not obliged to give the person a written notice under subsection 110(1) in respect of the activity test non-payment period.

 (1) This section applies if, under this Part:

 (a) an activity test non-payment period applies to a person; and

 (b) during the whole or part of that period, the whole or part of an activity test breach rate reduction period also applies to the person (the overlap period).

Note: Other periods such as an administrative breach rate reduction period may also apply—see section 136C.

 (2) Subject to subsection (4), if this section applies, the activity test non-payment period and the activity test breach rate reduction period are to run concurrently during the overlap period.

 (3) If this section applies, then, subject to section 112, only the non-payment restriction relating to the activity test non-payment period is to apply to the person during the overlap period.

 (4) If, at the time of the commencement of an activity test non-payment period under this Part, the person is already subject to an activity test breach rate reduction period (the pre-existing reduction period), the pre-existing reduction period is taken to end immediately before the commencement of the activity test non-payment period under this Part.

 (1) This section applies if, under this Part:

 (a) an activity test non-payment period applies to a person; and

 (b) during the whole or part of that period, the whole or part of a waiting period also applies to the person (the overlap period).

Note: Other periods such as an administrative breach rate reduction period may also apply—see section 136C.

 (2) If this section applies, the non-payment period and the waiting period are to run concurrently during the overlap period.

 (3) If this section applies, then, despite any other provision of this Act, only the restriction on payment relating to the waiting period is to apply to the person during the overlap period.

 (4) A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 72.

For the avoidance of doubt, sections 110, 111 and 112 do not prevent a youth training allowance ceasing to be payable in circumstances that do not involve the application of an activity test non-payment period under this Part.

If, but for this section, an event would result in an activity test penalty period and an administrative breach rate reduction period applying to a person under the provisions of this Act, only the provision imposing the activity test penalty period is to apply to the person.

Allowance not payable if requirement not complied with

 (1) If:

 (a) a person (other than a person who is not required to satisfy the activity test) is receiving, or has lodged a claim for, a youth training allowance; and

 (b) the Secretary is of the opinion that the person should:

 (i) attend an office of the Department of Social Security or of the Commonwealth Employment Service; or

 (ii) contact the Department of Social Security or the Commonwealth Employment Service; or

 (iii) give information to the Secretary; and

 (c) the Secretary tells the person that the person is required to:

 (i) attend that office; or

 (ii)  contact that Department or the Commonwealth Employment Service; or

 (iii) give that information; and

 (d) the requirement is reasonable; and

 (e) the person does not comply with the requirement;

subsection (1A) applies to the person.

 (1A) If this subsection applies to a person:

 (a) a youth training allowance is not payable to the person; and

 (b) if, at a later time, a youth training allowance becomes payable to the person—an administrative breach rate reduction period applies to the person.

Reasonable excuse for not complying

 (2) The Secretary may determine that:

 (a) a youth training allowance is payable to a person that was not payable under paragraph (1A)(a); and

 (b) an administrative breach rate reduction period does not apply to a person under paragraph (1A)(b);

if the Secretary is satisfied that the person had a reasonable excuse for not complying with the requirement under subsection (1).

If a person refuses or fails, without reasonable excuse, to comply with a requirement made of the person under section 148, 149, 150 or 343, an administrative breach rate reduction period applies to the person.

Note: For administrative breach rate reduction period see section 136A.

Allowance not payable in certain circumstances

 (1) If:

 (a) a youth training allowance was payable to a person; and

 (b) the person ceased to be qualified for youth training allowance because the person:

 (i) was not registered by the Commonwealth Employment Service in an allowance category as being unemployed (see subparagraph 65(1)(g)(iv)); and

 (ii) the Secretary has not excused the person from being so registered by the Commonwealth Employment Service under section 73; and

 (c) the person later becomes qualified for youth training allowance again;

a youth training allowance is not payable to the person for a period determined, in writing, by the Secretary.

Note 1: If a person has been paid youth training allowance while the person was not qualified because he or she was not registered at the Commonwealth Employment Service, an overpayment may arise (see Division 15). Subsection (1) does not prevent the Secretary from taking action to recover the overpayment.

Note 2: For allowance category see subsection 58(2).

Exemption for person in labour market or rehabilitation program

 (2) Subsection (1) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii) a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

Secretary may determine when period of non-payment begins

 (3) The Secretary may determine in writing the day on which the period of non-payment imposed by subsection (1) begins and that day may be before the day of the determination.

Note: See section 109 for the length of activity test deferment periods and section 110 for the start of activity test deferment periods.

Allowance not payable in certain circumstances

 (1) If:

 (a) a person is a seasonal or intermittent worker; and

 (b) the person’s income is enough to maintain:

 (i) the person; and

 (ii) any other people who are ordinarily maintained by the person;

  even though the person is temporarily unemployed;

a youth training allowance is not payable to the person for a period determined, in writing, by the Secretary.

Exemption

 (2) Subsection (1) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii) a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

Secretary may determine when period of non-payment begins

 (3) The Secretary may determine in writing the day on which the period of non-payment imposed by subsection (1) begins and that day may be before the day of the determination.

Allowance not payable for 12 weeks

 (1) If, in the opinion of the Secretary, a person has reduced his or her employment prospects by moving to a new place of residence without sufficient reason, a youth training allowance is not payable to the person for 26 weeks.

Exemption for person in labour market or rehabilitation program

 (2) Subsection (1) does not apply to a person who:

 (a) has started:

 (i) formal vocational training in a labour market program approved by the Secretary; or

 (ii) a rehabilitation program approved by the Secretary; and

 (b) has been exempted from the application of that subsection by the Secretary.

Sufficient reason for moving

 (3) For the purposes of subsection (1), a person has a sufficient reason for moving to a new place of residence if, and only if, the person:

 (a) moves to live with a family member who has already established his or her residence in that place of residence; or

 (b) moves to live near a family member who has already established residence in the same area; or

 (c) is receiving youth training allowance at the rate that applies to a person who is not independent and lives at home, and moves to accompany his or her parents who wish to establish, or have established, a place of residence; or

 (d) satisfies the Secretary that the move is necessary for the purposes of treating or alleviating a disease or illness suffered by the person or by a family member.

Secretary may determine when period of non-payment begins

 (4) The Secretary may determine in writing the day on which the period of non-payment imposed by subsection (1) begins and that day may be before the day of the determination.

Youth training allowance is not payable to a person in respect of a period during which the person is:

 (a) in gaol; or

 (b) undergoing psychiatric confinement because the person has been charged with committing an offence.

Note 1: For in gaol, see subsection 23(5) of the Social Security Act.

Note 2: For psychiatric confinement see subsections 23(8) and (9) of the Social Security Act.

If:

 (a) a person is released from gaol, or from psychiatric confinement that the person was undergoing because he or she had been charged with committing an offence, after spending at least 7 days in gaol or such confinement; and

 (b) the person claims youth training allowance within 7 days after being released; and

 (c) the allowance is payable to the person on the day on which the claim is made;

the rate of allowance payable to the person in respect of the period of 7 days starting on the day on which the claim is made is twice the amount that would otherwise be payable to the person in respect of that period.

Proper claim

 (1) A person who wants to be granted a youth training allowance must make a proper claim for that allowance.

Note 1: For proper claim see section 126 (form), section 127 (manner of lodgment) and section 128 (residence/presence in Australia).

Note 2: Because the payability of youth training allowance may be affected by, for example, the provisions dealing with the circumstances in which a person’s former employment ended (see sections 106 and 107), the person may be asked to support his or her claim for youth training allowance with an end of employment statement by the former employer (see section 349).

Claim taken not to be made

 (2) For the purposes of subsection (2), if:

 (a) a claim for youth training allowance is made by or on behalf of a person; and

 (b) at the time the claim is made, the claim cannot be granted because the person is not qualified for youth training allowance;

the claim is to be taken not to have been made.

Person serving liquid assets waiting period

 (3) Subsection (2) does not apply if:

 (a) a claim for youth training allowance is made by or on behalf of a person; and

 (b) at the time the claim is made, the claim cannot be granted because the person is serving a liquid assets test waiting period.

Note: For liquid assets test waiting period see section 72.

To be a proper claim, a claim must be made in writing and must be in accordance with a form approved by the Secretary.

To be a proper claim, a claim must be lodged:

 (a) at an office of the Department of Social Security; or

 (b) at a place in Australia approved for the purpose by the Secretary; or

 (c) with a person in Australia approved for the purpose by the Secretary.

A claim by a person is not a proper claim unless the person is:

 (a) an Australian resident; and

 (b) in Australia;

on the day on which the claim is lodged.

Withdrawal of claim

 (1) A claimant for a youth training allowance or a person on behalf of a claimant may withdraw a claim that has not been determined.

Effect of withdrawal

 (2) A claim that is withdrawn is taken not to have been made.

Manner of withdrawal

 (3) A withdrawal may be made orally or in writing.

Request for tax file number

 (1) The Secretary may request but not compel a claimant for youth training allowance:

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

 (b) if the claimant 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 claimant’s tax file number after the Commissioner of Taxation has issued it.

Failure to satisfy request

 (2) A youth training allowance is not payable to a claimant if, at the end of 28 days after a request is made:

 (a) the claimant has failed to satisfy the request; and

 (b) the Secretary has not exempted the claimant from having to satisfy the request.

Request for tax file number

 (1) If:

 (a) a claimant for youth training allowance is a member of a couple; and

 (b) the claimant’s partner is in Australia;

the Secretary may request but not compel the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Failure to satisfy request

 (2) A youth training allowance is not payable to a claimant if, at the end of 28 days after a request is made:

 (a) the claimant has failed to satisfy the request; and

 (b) the Secretary has not exempted the claimant from having to satisfy the request.

Note 1: In some cases the request can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information relevant to the partner’s tax file number (see subsections 87(2) and (3)).

Note 2:  The Secretary may waive the requirement in some cases (see subsection 87(4)).

The Secretary must, in accordance with this Part, determine a claim for youth training allowance.

 (1) The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

 (a) the person is qualified for a youth training allowance; and

 (b) the allowance is payable.

 (2) The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

 (a) the person is qualified or is expected to be qualified, for a youth training allowance; and

 (b) the allowance would be payable, apart from the application of:

 (i) a waiting period; or

 (ii) the application of an activity test non-payment period; or

 (iii) an administrative breach rate reduction period applies and the administrative breach rate reduction reduces the rate of youth training allowance payable to the person to nil; or

 (iv) an income maintenance period applies.

 (3) If:

 (a) a determination has been made under subsection (1) granting a claim for a youth training allowance to a person who was qualified for the allowance under subsection 65(1A); and

 (b) the person ceases to be qualified for the allowance under subsection 65(1A) but becomes qualified for the allowance under subsection 65(1) within 14 days after the person ceased to be qualified under subsection 65(1A);

the Secretary may make a determination varying the firstmentioned determination to give effect to any change in the person’s provisional commencement day.

Date of effect

 (1) Subject to this section, a determination under section 133 takes effect on the day on which the determination is made or on any later day or earlier day that is stated in the determination.

Notified decision—review sought within 3 months

 (2) If:

 (a) a decision (the previous decision) is made rejecting a person’s claim for youth training allowance; and

 (b) a notice is given to the person telling the person of the making of the previous decision; and

 (c) the person applies to the Secretary under section 304, within 3 months after the notice is given, for review of the previous decision; and

 (d) a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Notified decision—review sought after 3 months

 (3) If:

 (a) a decision (the previous decision) is made rejecting a person’s claim for youth training allowance; and

 (b) a notice is given to the person telling the person of the making of the previous decision; and

 (c) the person applies to the Secretary under section 304, more than 3 months after the notice is given, for review of the previous decision; and

 (d) a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the person sought the review.

Decision not notified

 (4) If:

 (a) a decision (the previous decision) is made rejecting a person’s claim for youth training allowance; and

 (b) no notice is given to the person telling the person of the making of the previous decision; and

 (c) the person applies to the Secretary under section 304 for review of the previous decision; and

 (d) a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Rate to be worked out using Schedule 1

 (1) The rate of a person’s youth training allowance is to be worked out in accordance with Schedule 1.

Limit on benefit rate

 (2) If:

 (a) a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person; and

 (b) the other person is of the opposite sex; and

 (c) either or both of them are under the age of consent that applies in the State or Territory in which they are living;

the rate of the person’s youth training allowance is not to be more than the rate at which the allowance would be payable to the person if the other person were the person’s partner.

Note: This provision has the effect of taking into account the ordinary income and assets of the partner in applying the income test and assets test respectively.

Supplement for course of vocational training

 (1) If a person who is receiving a youth training allowance is undertaking a course of vocational training approved by the Secretary for the purposes of this section, the rate of the person’s youth training allowance may be increased by an amount, to be known as a youth training supplement, that the Secretary considers appropriate.

Components of supplement

 (2) The youth training supplement is made up of either or both of the following:

 (a) an amount to help with the person’s expenses in living away from the person’s usual residence while undertaking the training (the living away from home component);

 (b) an amount to assist with the person’s expenses in maintaining the person’s usual residence while living away from that residence and undertaking the training (the home base maintenance component).

Maximum living away from home component

 (3) The maximum amount of the living away from home component is $30.00 a fortnight.

Maximum maintenance component

 (4) The maximum amount of the home base maintenance component is $75.80 a fortnight.

How to calculate amount of supplement

 (5) The Secretary is to calculate the amount (if any) of the youth training supplement by determining:

 (a) which of the 2 components the person is to receive; and

 (b) the appropriate amount for each component that the person is to receive.

  If an activity test breach rate reduction period applies to a person under this Part, the period applicable to the person is 26 weeks.

 (1) Subject to section 136AC, if an activity test breach rate reduction period applies to a person under this Part, the Secretary must give to the person a written notice informing the person of the commencement of the activity test breach rate reduction period applicable to the person.

 (2) Subject to section 136AC, the activity test breach rate reduction period commences on the day on which the notice is given to the person.

 (3) If, at the time of the commencement of an activity test breach rate reduction period under this Part, the person is already subject to an activity test breach rate reduction period (the pre-existing reduction period), the pre-existing reduction period is taken to end immediately before the commencement of the activity test breach rate reduction period under this Part.

 (4) Subject to section 136AC, if, on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have commenced, youth training allowance ceases to be payable to the person, the period commences on the day on which youth training allowance ceases to be payable to the person.

 (1) Subject to subsection (2), if:

 (a) at a time when the person was not qualified for a youth training allowance, an event occurred that would have resulted in an activity test breach rate reduction period applying to the person under:

 (i) section 103 because the person would have been taken to have failed the activity test under subsection 75A(2); or

 (ii) section 106 or 107;

  had the person made a claim for a youth training allowance; and

 (b) before the end of that period (assuming that the period had commenced on the day on which the event occurred), the person made a claim for a youth training allowance;

the activity test breach rate reduction period is taken to have commenced on the day after the day on which the event occurred.

 (2) If:

 (a) at a time when the person was not qualified for a youth training allowance, an event occurred that would have resulted in an activity test breach rate reduction period applying to the person under:

 (i) section 103 because the person would have been taken to have failed the activity test under subsection 75A(2); or

 (ii) section 106 or 107;

  had the person made a claim for a youth training allowance; and

 (b) the person makes a claim for a youth training allowance after the end of that period (assuming that the period had commenced on the day on which the event occurred);

then:

 (c) the activity test breach rate reduction period is taken to have commenced and to have ended before the claim was made; and

 (d) the Secretary is not obliged to give the person a written notice under subsection 136AB(1).

 (1) This section applies if, under this Part:

 (a) an activity test breach rate reduction period applies to a person; and

 (b) during the whole or part of that period the whole or part of a waiting period also applies to the person (the overlap period).

Note: Other periods such as an administrative breach rate reduction period may also apply—see section 136D.

 (2) If this section applies, the activity test breach rate reduction period and the waiting period are to run concurrently during the overlap period.

 (3) If this section applies, then despite any other provision of this Act, only the restriction on payment relating to the waiting period is to apply to the person during the overlap period.

 (4) A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 72.

 (1) If:

 (a) an activity test breach rate reduction period applies to a person under this Part; and

 (b) the person qualifies for a youth training allowance; and

 (c) a youth training allowance is payable to the person;

the person’s rate of youth training allowance for the activity test breach rate reduction period is worked out as follows:

Youth training allowance rate calculator for activity test breach rate reduction period

This is how to work out a person’s rate of youth training allowance for an activity test breach rate reduction period that applies to the person.

Method statement

Step 1. Work out the person’s maximum basic rate of youth training allowance specified in Table B of Module B of Schedule 1:

 the result is called the maximum payment rate.

Step 2. Work out the rate reduction amount in accordance with subsection (2).

Step 3. Take the rate reduction amount away from the rate of benefit worked out in accordance with Schedule 1:

 the result is called the activity test breach reduced rate.

 Note: An activity test breach reduced rate may be a nil rate.

 (2) A person’s rate reduction amount is worked out as follows:

 (a) if the activity test breach is the person’s first breach in the 2 year period:

 (b) if the activity test breach is the person’s second breach in the 2 year period:

 (3) In this section:

2 year period means the 2 years immediately before the day after the activity test breach.

  If an administrative breach rate reduction period applies to a person under this Part, the period applicable to the person is 13 weeks.

 (1) If an administrative breach rate reduction period applies to a person under this Part, the Secretary must give to the person a written notice informing the person of the commencement of the administrative breach rate reduction period applicable to the person.

 (2) Subject to subsection (6), the administrative breach rate reduction period commences on the day on which the notice is given to the person.

 (3) If, at the time of the commencement of an administrative breach rate reduction period under subsection (1), the person is already subject to an administrative breach rate reduction period (the pre-existing reduction period), the pre-existing reduction period is taken to end immediately before the commencement of the administrative breach rate reduction period under subsection (1).

 (6) If:

 (a) on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have commenced, youth training allowance ceases to be payable to the person; and

 (b) it has not ceased to be payable because of the application of an administrative breach rate reduction period;

the administrative breach rate reduction period referred to in subsection (1) commences on the day on which the youth training allowance ceases to be payable to the person.

Note: For administrative breach rate reduction period see subsection 136B.

 (1) This section applies if, under this Part:

 (a) an administrative breach rate reduction period applies to a person; and

 (b) during the whole or part of that period, the whole or part of an activity test non-payment period also applies to the person (the overlap period).

Note: Other periods such as a waiting period may also apply—see section 136DA.

 (2) If this section applies, the activity test non-payment period and the administrative breach rate reduction period are to run concurrently during the overlap period.

 (3) If this section applies, then, subject to section 112, the non-payment penalty relating to the activity test non-payment period is to apply to the person during the overlap period.

 (1) This section applies if, under this Part:

 (a) an administrative breach rate reduction period applies to a person; and

 (b) during the whole or part of that period, the whole or part of an activity test breach rate reduction period also applies to the person (the overlap period).

Note: Other periods such as a waiting period may also apply—see section 136DA.

 (2) Subject to subsection (3), if this section applies, the administrative breach rate reduction period and the whole or part of the activity test breach rate reduction period are to run concurrently during the overlap period.

 (3) If this section applies, then, subject to sections 111A, 112, 136AD and 136AE, the higher of the percentage rate reduction amounts that relate to the activity test breach rate reduction period and the administrative breach rate reduction period respectively is the only percentage rate reduction amount that is to apply to the person during the overlap period.

Note 1: For rate reduction amount in relation to an activity test breach rate reduction period see subsection 136AC(1).

Note 2:` For rate reduction amount in relation to an administrative breach rate reduction period see subsection 136G(1).

 (1) This section applies if, under this Part:

 (a) an administrative breach rate reduction period applies to a person; and

 (b) during the whole or part of that period the whole or part of a waiting period also applies to the person (the overlap period).

Note: Other periods such as an activity test breach rate reduction period may also apply—see section 136E.

 (2) If this section applies, the whole or part of the administrative breach rate reduction period and the whole or part of the waiting period are to run concurrently during the overlap period.

 (3) If this section applies, then despite any other provision of this Act, only the restriction on payment relating to the waiting period is to apply to the person during the overlap period.

 (4) A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 72.

  For the avoidance of doubt, sections 136C and 136D do not prevent a youth training allowance ceasing to be payable in circumstances that do not involve the application of an administrative breach rate reduction period.

  Despite any other provision of this Part, an administrative breach rate reduction period does not apply if:

 (a) a person receives a youth training allowance; and

 (b) youth training allowance ceases to be payable to the person because of section 114 or 115; and

 (c) payment of the youth training allowance is cancelled or automatically terminated; and

 (d) the person lodges a claim for a youth training allowance more than 14 days after the date of effect of the cancellation or automatic termination referred to in paragraph (c).

 (1) If:

 (a) an administrative breach rate reduction period applies to a person under this Part; and

 (b) the person qualifies for a youth training allowance; and

 (c) a youth training allowance is payable to the person;

the person’s rate of youth training allowance for the administrative breach rate reduction period is worked out as follows:

 

Youth training allowance rate calculator for administrative breach rate reduction period

This is how to work out a person’s rate of youth training allowance for an administrative breach rate reduction period that applies to the person.

Method statement

Step 1. Work out the person’s maximum basic rate of youth training allowance specified in Table B of Module B of Schedule 1;

 the result is called the maximum payment rate.

Step 2. Work out the rate reduction amount in accordance with subsection (2).

Step 3. Take the rate reduction amount away from the rate of youth training allowance worked out in accordance with Schedule 1;

 the result is called the administrative breach reduced rate.

 Note: An administrative breach reduced rate may be a nil rate.

 (2) A person’s rate reduction amount is worked out as follows:

 

Youth training allowance becomes payable to a person on the first day on which:

 (a) the person is qualified for the allowance; and

 (b) no provision of this Part makes the allowance not payable to the person.

Note 1: For qualification see section 65.

Note 2: For circumstances in which a youth training allowance is not payable see section 85.

Allowance paid by instalments

 (1) Youth training allowance is to be paid by instalments for periods determined by the Secretary.

Time of payment

 (2) Instalments of youth training allowance are to be paid at the times determined by the Secretary.

Period less than a fortnight

 (1) If:

 (a) an instalment of youth training allowance is for a period; and

 (b) the period is less than a fortnight;

the instalment for the period is the amount worked out using the formula:

Period consisting of number of whole fortnights and period less than fortnight

 (2) If:

 (a) an instalment of youth training allowance is for a period; and

 (b) the period consists of:

 (i) a number of whole fortnights; and

 (ii) a period that is less than a fortnight;

the instalment, in so far as it relates to the period that is less than a fortnight, is the amount worked out using the formula:

Fraction of a cent

 (1) If the amount of an instalment includes a fraction of a cent, the amount is to be rounded to the nearest whole cent (0.5 cent being rounded upwards).

Amount increased to fortnightly PA rate

 (2) If:

 (a) an amount of pharmaceutical allowance is added to a person’s maximum basic rate in working out the amount of an instalment of youth training allowance; and

 (b) apart from this subsection, the amount of the instalment would be less than the person’s fortnightly PA rate;

the amount of the instalment is to be increased to the person’s fortnightly PA rate.

Fortnightly PA rate

 (3) For the purposes of subsection (2), the person’s fortnightly PA rate is the rate worked out using the formula:

pharmaceutical allowance rate    N

where:

pharmaceutical allowance rate means the fortnightly amount of pharmaceutical allowance added to the person’s maximum basic rate in working out the amount of the instalment.

N means:

 (a) if the instalment is for a number of whole fortnights—the number of fortnights; or

 (b) if the instalment is for a period of less than a fortnight—the number worked out using the formula:

 (c) if the instalment is for a period that consists of a number of whole fortnights and a period of less than a fortnight—the number worked out using the formula:

Amount increased to $1.00

 (4) If, apart from this section, the amount of an instalment would be less than $1.00, the amount is to be increased to $1.00.

Payment to person

 (1) Subject to subsection (3), instalments of a person’s youth training allowance are to be paid to the person.

Payment on behalf of person

 (2) The Secretary may direct that the whole or a part of the instalments of a person’s youth training allowance is to be paid to someone else on behalf of the person.

Payment in accordance with Secretary’s direction

 (3) If the Secretary gives a direction under subsection (2), the instalments are to be paid in accordance with the direction.

Manner of payment

 (1) An amount that is to be paid to a person under section 141 is to be paid in the manner set out in this section.

Payment into account

 (2) Subject to this section, the amount is to be paid, at the intervals that the Secretary directs, to the credit of a bank account, credit union account or building society account nominated and maintained by the person.

Joint or common account

 (3) The account may be an account that is maintained by the person either alone or jointly or in common with another person.

Secretary may direct payment in different way

 (6) The Secretary may direct that the whole or a part of the amount be paid to the person in a different way from that provided for by subsection (2).

Payment in accordance with direction

 (7) If the Secretary gives a direction under subsection (6), the amount is to be paid in accordance with the direction.

 (8) If, at the end of the period (the preliminary period) of 28 days starting on the day on which the youth training allowance became payable to the person:

 (a) the person has not nominated an account for the purposes of subsection (2); and

 (b) the Secretary has not given a direction under subsection (6) in relation to payments of the allowance to the person;

the allowance ceases to be payable to the person.

 (9) If the person nominates an account for the purposes of subsection (2) after the end of the preliminary period, then, subject to this Part, the youth training allowance again becomes payable to the person and is so payable:

 (a) if the nomination was made within 3 months after the end of the preliminary period—on and from the first day after the end of that period; or

 (b) otherwise—on and from the day on which the nomination was made.

If the Secretary is satisfied that an amount of youth training allowance that would normally be paid on a particular day cannot reasonably be paid on that day (because, for example, it is a public holiday or a bank holiday), the Secretary may direct that the amount be paid on an earlier day.

Payment to person determined by Secretary

 (1) If:

 (a) a youth training allowance is payable to a person; and

 (b) the person dies; and

 (c) at the date of the person’s death the person had not received an amount of youth training allowance payable to him or her; and

 (d) another person applies to receive the amount; and

 (e) the application is made:

 (i) within 6 months after the death; or

 (ii)  within a further period allowed by the Secretary in special circumstances;

the Secretary may pay the amount to the person who, in the Secretary’s opinion, is best entitled to it.

No further liability for Commonwealth

 (2) If the Secretary pays an amount of youth training allowance under subsection (1), the Commonwealth has no further liability to any person in respect of that amount of youth training allowance.

Allowance absolutely inalienable

 (1) Subject to subsections (2) and (3) and section 299, youth training allowance is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

Payments to Commissioner of Taxation at recipient’s request

 (2) The Secretary may make deductions from the instalments of youth training allowance payable to a person if the person asks the Secretary:

 (a) to make the deductions; and

 (b) to pay the amount to be deducted to the Commissioner of Taxation.

Note:  The Secretary must make deductions from a person’s youth training allowance if requested by the Commissioner of Taxation—see section 299.

Deductions from instalments with recipient’s consent

 (3) The Secretary may make deductions from the instalments of youth training allowance payable to a person if the person consents under section 283 to the Secretary making the deduction.

Note: Section 283 enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a youth training allowance.

Court order not to apply to saved amount

 (1) If:

 (a) a person has an account with a financial institution; and

 (b) instalments of youth training allowance payable to the person (whether on the person’s own behalf or not) are being paid to the credit of that account; and

 (c) a court order in the nature of a garnishee order comes into force in respect of the account;

the court order does not apply to the saved amount (if any) in the account.

Method of working out saved amount

 (2) The saved amount is worked out as follows:

Method statement

Step 1.

Work out the total amount of youth training allowance payable to the person that has been paid to the credit of the account during the 4 week period immediately before the court order came into force.

Step 2.

Subtract from that amount the total amount withdrawn from the account during the same 4 week period: the result is the saved amount.

Single, joint or common account

 (3) This section applies to an account whether it is maintained by a person:

 (a) alone; or

 (b) jointly with another person; or

 (c) in common with another person.

Request for tax file number

 (1) The Secretary may request but not compel a person to whom youth training allowance is being paid:

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

 (b) if the person 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 person’s tax file number after the Commissioner of Taxation has issued it.

Failure to satisfy request

 (2) A youth training allowance is not payable to a person if, at the end of 28 days after a request is made:

 (a) the person has failed to satisfy the request; and

 (b) the Secretary has not exempted the person from having to satisfy the request.

Request for tax file number

 (1) If:

 (a) a person to whom youth training allowance is being paid is a member of a couple; and

 (b) the person’s partner is in Australia;

the Secretary may request but not compel the person to give the Secretary a written statement of the tax file number of the person’s partner.

Failure to satisfy request

 (2) A youth training allowance is not payable to a person if, at the end of 28 days after a request is made:

 (a) the person has failed to satisfy the request; and

 (b) the Secretary has not exempted the person from having to satisfy the request.

Note 1: In some cases the request can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information relevant to the partner’s tax file number (see subsections 87(2) and (3)).

Note 2:  The Secretary may waive the requirement in some cases (see subsection 87(4)).

Secretary may give notice requiring information

 (1) The Secretary may give a person to whom a youth training allowance is being paid a notice that requires the person to tell the Department of Social Security if:

 (a) a stated event or change of circumstances occurs; or

 (b) the person becomes aware that a stated event or change of circumstances is likely to occur.

Event or change relevant to payment

 (2) An event or change of circumstances is not to be stated in a notice under subsection (1) unless the occurrence of the event or change of circumstances might affect the payment of the allowance.

Formalities related to notice

 (3) Subject to subsection (4), a notice under subsection (1):

 (a) must be in writing; and

 (b) may be given personally or by post; and

 (c) must state how the person is to give the information to the Department of Social Security; and

 (d) must state the period within which the person is to give the information to that Department; and

 (e) must state that the notice is a recipient notification notice given under this Part.

Validity of notice

 (4) A notice under subsection (1) is not invalid merely because it fails to comply with paragraph (3)(c) or (e).

Period within which information to be given

 (5) Subject to subsections (6) and (7), the period stated under paragraph (3)(d) must end at least 7 days after:

 (a) the day on which the event or change of circumstances occurs; or

 (b) the day on which the person becomes aware that the event or change of circumstances is likely to occur.

Person leaving Australia

 (6) If a notice requires the person to tell the Department of any proposal by the person to leave Australia, subsection (5) does not apply to that requirement.

Information as to compensation payment

 (7) If the notice requires information about receipt of a compensation payment, the period stated under paragraph (3)(d) in relation to the information must end at least 7 days after the day on which the person becomes aware that he or she has received or is to receive a compensation payment.

Refusal or failure to comply with notice

 (8) A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.

Penalty: Imprisonment for 6 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Application overseas

 (9) This section extends to:

 (a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and

 (b) all people irrespective of their nationality or citizenship.

Secretary may give notice requiring statement on matter

 (1) The Secretary may give a person to whom a youth training allowance is being paid a notice that requires the person to give the Department of Social Security a statement about a matter that might affect the payment of the allowance to the person.

Formalities related to notice

 (2) Subject to subsection (3), a notice under subsection (1):

 (a) must be in writing; and

 (b) may be given personally or by post; and

 (c) must state how the statement is to be given to the Department; and

 (d) must state the period within which the person is to give the statement to the Department; and

 (e) must state that the notice is a recipient statement notice given under this Part.

Validity of notice

 (3) A notice under subsection (1) is not invalid merely because it fails to comply with paragraph (2)(c) or (e).

Period within which statement to be provided

 (4) The period stated under paragraph (2)(d) must end at least 7 days after the day on which the notice is given.

Statement must be in approved form

 (5) A statement given in response to a notice under subsection (1) must be in writing and in accordance with a form approved by the Secretary.

Refusal or failure to comply with notice

 (6) A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.

Penalty: Imprisonment for 6 months.

Note:  Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Application overseas

 (7) This section extends to:

 (a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and

 (b) all people irrespective of their nationality or citizenship.

Entitlement determination

 (1) A determination that:

 (a) a person’s claim for a youth training allowance is to be granted; or

 (b) a youth training allowance is payable to a person;

continues in effect until:

 (c) the allowance ceases to be payable under section 151A, 152, 153, 154 or 155; or

 (d) a further determination in relation to the allowance under section 162 or 163 has taken effect.

Note 1:  For paragraph (a) see section 133.

Note 2: For paragraph (b) see section 165—this paragraph is relevant if the determination in question reverses an earlier cancellation or suspension.

Note 3: For paragraph (d) see also section 164.

Rate determination

 (2) A determination of the rate of a youth training allowance continues in effect until:

 (a) the allowance becomes payable at a lower rate under section 156 or 157; or

 (b) a further determination in relation to the allowance under section 160 or 161 has taken effect.

  If:

 (a) a person ceases to be qualified for a youth training allowance under subsection 65(1A); and

 (b) the person does not become qualified for the allowance under subsection 65(1) within 14 days after the person ceases to be qualified as mentioned under paragraph (a);

the youth training allowance ceases to be payable to the person at the end of 14 days after the person is notified that he or she has ceased to be qualified under subsection 65(1A).

If:

 (a) a person is receiving youth training allowance; and

 (b) a social security pension or a social security benefit becomes payable to the person;

the youth training allowance ceases to be payable to the person immediately before the day on which the pension or benefit becomes payable to the person.

If:

 (a) a person who is receiving a youth training allowance is given a notice under section 149; and

 (b) the notice requires the person to tell the Department of the occurrence of an event or change in circumstances within a stated period (the notification period); and

 (c) the event or change in circumstances occurs; and

 (d) the person tells the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

 (e) because of the occurrence of the event or change in circumstances;

 (i) the person ceases to be qualified for the allowance; or

 (ii) the allowance would, apart from this section, cease to be payable to the person; and

 (f) the allowance is not cancelled before the end of the notification period;

the allowance continues to be payable to the person until the end of the notification period and then ceases to be payable to the person.

If:

 (a) a person who is receiving a youth training allowance is given a notice under section 149; and

 (b) the notice requires the person to tell the Department of the occurrence of an event or change in circumstances within a stated period (the notification period); and

 (c) the event or change in circumstances occurs; and

 (d) the person does not tell the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

 (e) because of the occurrence of the event or the change in circumstances:

 (i) the person ceases to be qualified for the allowance; or

 (ii) the allowance ceases to be payable to the person;

the allowance ceases to be payable to the person immediately before the day on which the event or change in circumstances occurs.

Allowance ceases to be payable

 (1) If:

 (a) a person who is receiving a youth training allowance is given a notice under section 150 requiring the person to give the Department a statement; and

 (b) the notice relates to the payment of the allowance in respect of a period stated in the notice; and

 (c) the person does not comply with the notice;

the allowance, subject to subsection (2), ceases to be payable to the person as from the first day in that period.

Secretary may determine that allowance continues

 (2) If the Secretary is satisfied that, in the special circumstances of the case, it is appropriate to do so, the Secretary may determine in writing that subsection (1) does not apply to the person from a day stated in the determination.

Stated day

 (3) The day stated under subsection (2) may be before or after the making of the determination.

If:

 (a) a person is receiving youth training allowance; and

 (b) the person’s partner starts to receive:

 (i) a youth training allowance; or

 (ii) a social security pension or social security benefit; or

 (iii) a service pension; and

 (c) the person’s youth training allowance rate is reduced because of the partner’s receipt of that pension, benefit or allowance;

the youth training allowance becomes payable to the person at the reduced rate on the day on which the partner starts to receive that pension, benefit or allowance.

  If:

 (a) a person who is receiving a youth training allowance is given a notice under section 149, whether before, on or after 1 October 1997; and

 (b) the notice requires the person to tell the Department of the occurrence of an event or change in circumstances within a stated period (the notification period) and

 (c) the event or change in circumstances occurs on or after 1 October 1997; and

 (d) the person tells the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

 (e) because of the occurrence of the event or change in circumstances, the person’s rate of allowance is to be reduced; and

 (f) the person’s rate of allowance is not reduced before the end of the notification period;

the allowance becomes payable to the person at the reduced rate immediately after the end of the notification period.

If:

 (a) a person who is receiving a youth training allowance is given a notice under section 149; and

 (b) the notice requires the person to tell the Department of the occurrence of an event or change in circumstances within a stated period (the notification period); and

 (c) the event or change in circumstances occurs; and

 (d) the person does not tell the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

 (e) because of the occurrence of the event or change in circumstances, the person’s rate of allowance is to be reduced;

the allowance becomes payable to the person at the reduced rate immediately before the day on which the event or change in circumstances occurs.

If:

 (a) a person is receiving a youth training allowance on the basis of data in a computer; and

 (b) the allowance is automatically terminated or the allowance rate is automatically reduced by the operation of a provision of this Part; and

 (c) the automatic termination or reduction is given effect to by the operation of a computer program approved by the Secretary stopping payment or reducing the rate of payment of the allowance;

there is taken to be a decision by the Secretary that the automatic termination or rate reduction provision applies to the person’s allowance.

Note: The decision that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 303 and 304) and the Social Security Appeals Tribunal (see section 311).

If the Secretary is satisfied that the rate at which a youth training allowance is being, or has been, paid is less than the rate provided for by this Part, the Secretary is to determine that the rate is to be increased to the rate stated in the determination.

Note: For the date of effect of a determination under this section see section 166.

If the Secretary is satisfied that the rate at which a youth training allowance is being, or has been, paid is more than the rate provided for by this Part, the Secretary is to determine that the rate is to be reduced to the rate stated in the determination.

Note 1: A determination under this section is not necessary if an automatic rate reduction is produced by section 157 (see subsection 151(2)).

Note 2: For the date of effect of a determination under this section see section 167.

If the Secretary is satisfied that a youth training allowance is being, or has been, paid to a person to whom it is not, or was not, payable under this Part, the Secretary is to determine that the allowance is to be cancelled or suspended.

Note 1: A determination under this section is not necessary if an automatic termination is produced by section 152, 153, 154 or 155 (see subsection 151(1)).

Note 2: For the date of effect of a determination under this section see section 167.

If:

 (a) a person who is receiving a youth training allowance is given a notice under section 150, 343 or 344; and

 (b) the person does not comply with the requirements set out in the notice;

the Secretary may determine that the allowance is to be cancelled or suspended.

Note 1: This section will not apply if section 153 or 162 applies.

Note 2: For the date of effect of a determination under this section see section 167.

If:

 (a) payment of a youth training allowance to a person is based upon data in a computer; and

 (b) the allowance rate is increased or reduced, or the allowance is cancelled or suspended, because of the operation of a computer program approved by the Secretary; and

 (c) the program causes the change for a reason for which the Secretary could determine the change;

the change is taken to have been made because of a determination by the Secretary for that reason.

Note: The determination that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 303 and 304) and the Social Security Appeals Tribunal (see section 311).

Secretary to determine allowance payable

 (1) If the Secretary:

 (a) cancels or suspends a person’s youth training allowance under section 162 or 163; and

 (b) reconsiders the decision to cancel or suspend; and

 (c) becomes satisfied that because of the decision to cancel or suspend:

 (i) the person did not receive a youth training allowance that was payable to the person; or

 (ii) the person is not receiving a youth training allowance that is payable to the person;

the Secretary is to determine that a youth training allowance was or is payable to the person.

Reconsideration on application or Secretary’s initiative

 (2) The reconsideration referred to in paragraph (1)(b) may be a reconsideration on an application under section 304 for review or a reconsideration on the Secretary’s own initiative.

Note: For the date of effect of a determination under this section see section 166.

Method of working out date

 (1) The day on which a determination under section 160 or 165 (the favourable determination) takes effect is worked out in accordance with this section.

Notified decision—review sought within 3 months

 (2) If:

 (a) a decision (the previous decision) is made in relation to a youth training allowance; and

 (b) a notice is given to the person to whom the allowance is payable telling the person of the making of the previous decision; and

 (c) the person applies to the Secretary under section 304, within 3 months after the notice is given, for review of the previous decision; and

 (d) a favourable determination is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Notified decision—review sought after 3 months

 (3) If:

 (a) a decision (the previous decision) is made in relation to a youth training allowance; and

 (b) a notice is given to the person to whom the allowance is payable telling the person of the making of the previous decision; and

 (c) the person applies to the Secretary under section 304, more than 3 months after the notice is given, for review of the previous decision; and

 (d) a favourable determination is made as a result of the application for review;

the determination takes effect on the day on which the person sought the review.

Decision not notified

 (4) If:

 (a) a decision (the previous decision) is made in relation to a youth training allowance; and

 (b) no notice is given to the person to whom the allowance is payable telling the person of the making of the previous decision; and

 (c) the person applies to the Secretary under section 304, for review of the previous decision; and

 (d) a favourable determination is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Notified change of circumstances

 (5) If the favourable determination is made following a person having told the Department of a change in circumstances, the determination takes effect on the day on which the Department was told or the day on which the change occurred, whichever is the later.

Other determinations

 (6) In any other case, the favourable determination takes effect on the day on which the determination was made or on any later day or earlier day (other than a day more than 3 months before the determination was made) that is stated in the determination.

General

 (1) The day on which a determination under section 161, 162 or 163 (the adverse determination) takes effect is worked out in accordance with this section.

Note: If the adverse determination depends on a discretion or opinion and a person affected by the determination applies for review, the Secretary may continue payment pending the outcome of the review (see section 305 (internal review) and section 314 (review by Social Security Appeals Tribunal)).

Date determination takes effect

 (2) The adverse determination takes effect on:

 (a) the day on which the determination is made; or

 (b) if another day is stated in the determination—that day.

Later date than determination

 (3) Subject to subsections (4), (5), (6), (7) and (8), the day stated under paragraph (2)(b) must be later than the day on which the determination is made.

Contravention of Part

 (4) If:

 (a) the person whose allowance is affected by the adverse determination has contravened a provision of this Part (other than section 150, 343, 344, 345 or 346); and

 (b) the contravention causes a delay in making the determination;

the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.

False statement or misrepresentation—suspension or cancellation

 (5) If:

 (a) a person has made a false statement or a misrepresentation; and

 (b) because of the false statement or misrepresentation, the allowance has been paid to a person when it should have been cancelled or suspended;

the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.

False statement or misrepresentation—rate reduction

 (6) If:

 (a) a person has made a false statement or a misrepresentation; and

 (b) because of the false statement or misrepresentation, the rate at which the allowance was paid to a person was more than it should have been;

the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.

Payment of arrears of periodic compensation payments—suspension or cancellation

 (7) If:

 (a) an adverse determination is made in relation to a person because of point G11 in MODULE G in Schedule 1 (payment of arrears of periodic compensation payments); and

 (b) the allowance has been paid to the person or the person’s partner when, because of the payment of arrears of periodic compensation, the allowance should have been cancelled or suspended;

the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.

Payment of arrears of periodic compensation payments—rate reduction

 (8) If:

 (a) an adverse determination is made in relation to a person because of point G11 in MODULE G in Schedule 1 (payment of arrears of periodic compensation payments); and

 (b) the rate at which the allowance was paid to the person or the person’s partner was, because of the payment of arrears of periodic compensation, more than the rate at which the allowance should have been paid;

the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.

Qualification for payment

 (1) If:

 (a) a person is receiving youth training allowance; and

 (b) the person is a long-term social security recipient; and

 (c) the person is a member of a couple; and

 (d) the person’s partner dies; and

 (e) immediately before the partner died, the partner:

 (i) was receiving a social security pension; or

 (ii) was receiving a service pension; or

 (iii) was a long-term social security recipient; and

 (f) on the person’s payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not qualified for payments under this Division is less than the sum of:

 (i) the amount that would otherwise be payable to the person under section 171 (person’s continued rate) on that payday; and

 (ii) the amount (if any) that would otherwise be payable to the person under section 169 (continued payment of partner’s pension or benefit) on the partner’s payday immediately before the first available bereavement adjustment payday;

the person is qualified for payments under this Division to cover the bereavement period.

Note 1: Section 169 provides for the payment to the person, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the person’s partner during that period if the partner had not died.

Note 2:  Section 170 provides for a lump sum that represents the instalments that would have been paid to the person’s partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the partner had not died.

Choice not to receive payments

 (2) A person who is qualified for payments under this Division may choose not to receive payments under this Division.

Form of choice

 (3) A choice under subsection (2):

 (a) must be made by written notice to the Secretary; and

 (b) may be made after the person has been paid an amount or amounts under this Division; and

 (c) cannot be withdrawn after the Department has taken all the action required to give effect to that choice.

Rate during bereavement period

 (4) If a person is qualified for payments under this Division in relation to the partner’s death, the rate at which youth training allowance is payable to the person during the bereavement period is, unless the person has made a choice under subsection (2), governed by section 171.

If a person is qualified for payments under this Division in relation to the death of the person’s partner, there is payable to the person, on each of the partner’s paydays in the bereavement rate continuation period, an amount equal to the amount that would have been payable to the partner on that payday if the partner had not died.

If:

 (a) a person is qualified for payments under this Division in relation to the death of the person’s partner; and

 (b) the first available bereavement adjustment payday occurs before the end of the bereavement period;

there is payable to the person as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Add up:

 (a) the amount that, if the person’s partner had not died, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday; and

 (b) the amount (if any) that, if the partner had not died, would have been payable to the partner on the partner’s payday immediately before the first available bereavement adjustment payday;

 the result is called the combined rate.

Step 2. Work out the amount that, apart from section 171, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday: the result is called the person’s individual rate.

Step 3. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 4. Work out the number of the partner’s paydays in the bereavement lump sum period.

Step 5.  Multiply the partner’s instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable to the person under this section.

If:

 (a) a person is qualified for payments under this Division; and

 (b) the person does not elect under subsection 168(2) not to receive payments under this Division;

the rate of the person’s youth training allowance during the bereavement period is worked out as follows:

 (c) during the bereavement rate continuation period, the rate of youth training allowance payable to the person is the rate at which the allowance would have been payable to the person if the person’s partner had not died;

 (d) during the bereavement lump sum period (if any), the rate at which youth training allowance is payable to the person is the rate at which the allowance would be payable to the person apart from this Division.

If:

 (a) a person is qualified for payments under this Division in relation to the death of the person’s partner; and

 (b) the person dies within the bereavement period; and

 (c) the Secretary does not become aware of the death of the person’s partner before the person dies;

there is payable, to any person that the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Add up:

 (a) the amount that, if neither the person nor the person’s partner had died, would have been payable to the person on the person’s payday immediately after the day on which the person dies; and

 (b) the amount (if any) that, if neither the person nor the person’s partner had died, would have been payable to the person’s partner on the partner’s payday immediately after the day on which the person died;

 the result is called the combined rate.

Step 2. Work out the amount that, apart from section 171, would have been payable to the person on the person’s payday immediately after the day on which the person died if the person had not died: the result is called the person’s individual rate.

Step 3. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 4. Work out the number of paydays of the partner in the period that begins on the day after the person dies and ends on the day on which the bereavement period ends.

Step 5.  Multiply the partner’s instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable under this section.

Recovery/reduction of amount payable

 (1) If:

 (a) a person is qualified for payments under this Division in relation to the death of the person’s partner; and

 (b) after the person’s partner died, an amount to which the partner would have been entitled if the partner had not died has been paid under this Part, the Social Security Act or Part III of the Veterans’ Entitlements Act; and

 (c) the Secretary is not satisfied that the person has not had the benefit of that amount;

the following provisions have effect:

 (d) the amount referred to in paragraph (b) is not recoverable from the person or from the personal representative of the person’s partner, except to the extent (if any) that the amount is more than the amount payable to the person under this Division;

 (e) the amount payable to the person under this Division is to be reduced by the amount referred to in paragraph (b).

 Financial institution not liable

 (2) If:

 (a) a person is qualified for payments under this Division in relation to the death of the person’s partner; and

 (b) the amount to which the person’s partner would have been entitled if the person’s partner had not died has been paid under this Part, the Social Security Act or Part III of the Veterans’ Entitlements Act, within the bereavement period, into an account with a bank, credit union or building society (the financial institution); and

 (c) the financial institution pays to the person, out of the account, an amount not more than the total of the amounts paid as mentioned in paragraph (b);

the financial institution is, in spite of anything in any other law, not liable to any action, claim or demand by the Commonwealth, the personal representative of the person’s partner or anyone else in respect of the payment of that money to the person.

A reference in this Part to a person’s ordinary income for a period is a reference to the person’s gross ordinary income from all sources for the period calculated without any reduction, other than a reduction under Subdivision B.

Note 1: For ordinary income see subsection 8(1) of the Social Security Act.

Note 2: For other provisions affecting the amount of a person’s ordinary income see sections 176 and 177 (business income), sections 178 to 185 (deemed income from financial assets) and sections 186 to 196 (income from retirement funds and annuities).

Subject to points G6A to G6K (inclusive), if a person has, whether before or after the commencement of this section, received an amount that:

 (a) is not income within the meaning of Subdivision C or D; and

 (b) is not:

 (i) income in the form of periodic payments; or

 (ii) ordinary income from remunerative work undertaken by the person;

the person is, for the purposes of this Part, taken to receive one fifty-second of that amount as ordinary income of the person during each week in the 12 months beginning on the day on which the person became entitled to receive that amount.

 (1) If:

 (a) a person carries on a business; and

 (b) the value of all the trading stock on hand at the end of a tax year is greater than the value of all the trading stock on hand at the beginning of that tax year;

the person’s ordinary income for that tax year in the form of profits from the business is to include the amount of the difference in values.

 (2) If:

 (a) a person carries on a business; and

 (b) the value of all the trading stock on hand at the end of that tax year is less than the value of all the trading stock on hand at the beginning of that tax year;

the person’s ordinary income for that tax year in the form of profits from the business is to be reduced by the amount of the difference in values.

 (1) Subject to subsection (2), if a person carries on a business, the person’s ordinary income from the business is to be reduced by:

 (a) losses and outgoings that relate to the business and are allowable deductions for the purposes of section 51 of the Income Tax Assessment Act 1936 or section 8-1 of the Income Tax Assessment Act 1997, as appropriate; and

 (b) depreciation that relates to the business and is an allowable deduction for the purposes of subsection 54(1) of that Act; and

 (c) amounts that relate to the business and are allowable deductions under subsection 82AAC(1) of that Act.

 (2) If, under Subdivision C, a person is taken to receive ordinary income on a financial investment, that ordinary income is not to be reduced by the amount of any expenses incurred by the person because of that investment.

Note: For financial investment see subsection 9(1) of the Social Security Act.

 (1) This section applies to a person who is not a member of a couple.

 (2) A person who has financial assets is taken, for the purposes of this Part, to receive ordinary income on those assets in accordance with this section.

 (3) If the total value of the person’s financial assets is equal to or less than the person’s deeming threshold, the ordinary income the person is taken to receive per year on the financial assets is the amount worked out by multiplying the value of those assets by the below threshold rate.

 (3A) If the total value of the person’s financial assets exceeds the person’s deeming threshold, the ordinary income that the person is taken to receive is worked out as follows:

Method statement

Step 1. Multiply the person’s deeming threshold by the below threshold rate.

 Note 1: For deeming threshold see subsection 182(1).

 Note 2: For below threshold rate see subsection 183(1).

Step 2. Subtract the deeming threshold from the total value of the person’s financial assets.

 Note: For deeming threshold see subsection 182(1).

Step 3. Multiply the remainder worked out at Step 2 by the above threshold rate.

 Note: For above threshold rate see subsection 183(2).

Step 4. The total of the amounts worked out at Steps 1 and 3 represents the ordinary income the person is taken to receive per year on the financial assets.

 (4) The person is taken, for the purposes of this Part, to receive one fifty-second of the amount worked out under subsection (3) or (3A) as ordinary income of the person during each week.

 (1) This section applies to a person who is a member of a couple.

 (2) A person who has financial assets is taken, for the purposes of this Part, to receive ordinary income on those assets in accordance with this section.

 (3) If the total value of the person’s financial assets is equal to or less than the person’s deeming threshold, the ordinary income the person is taken to receive per year on the financial assets is the amount worked out by multiplying the value of those assets by the below threshold rate.

 (3A) If the total value of the person’s financial assets exceeds the person’s deeming threshold, the ordinary income that the person is taken to receive is worked out as follows:

Method statement

Step 1. Multiply the person’s deeming threshold by the below threshold rate.

 Note 1: For deeming threshold see subsection 182(2).

 Note 2: For below threshold rate see subsection 183(1).

Step 2. Subtract the deeming threshold from the total value of the person’s financial assets.

 Note: For deeming threshold see subsection 182(2).

Step 3. Multiply the remainder worked out at Step 2 by the above threshold rate.

 Note: For above threshold rate see subsection 183(2).

Step 4. The total of the amounts worked out at Steps 1 and 3 represents the ordinary income the person is taken to receive per year on the financial assets.

 (4) The person is taken, for the purposes of this Part, to receive one fifty-second of the amount worked out under subsection (3) or (3A) as ordinary income of the person during each week.

 (1) The deeming threshold for a person who is not a member of a couple is $30,000.

 (2) The deeming threshold for a member of a couple is $25,000.

Note: The amounts fixed by subsections (1) and (2) are indexed every 1 July. See section 252.

 (1) For the purposes of this Subdivision, the below threshold rate is the rate determined by the Minister to be the below threshold rate for the purposes of this Subdivision.

 (2) For the purposes of this Subdivision, the above threshold rate is the rate determined by the Minister to be the above threshold rate for the purposes of this Subdivision.

 (3) A rate determined under this section must be in the form of a stated percentage.

 (4) A determination under this section:

 (a) must be in writing; and

 (b) is a disallowable instrument.

 (1) Subject to subsection (2), any return on a financial asset that a person actually receives is taken, for the purposes of this Part, not to be ordinary income of the person.

 (2) If, because of a determination under subsection 185(1), a financial investment is not to be regarded as a financial asset for the purposes of section 178 or 179, subsection (1) does not apply to any return on the investment that the person actually receives.

 (1) The Minister may determine that:

 (a) particular financial investments; or

 (b) financial investments of a particular class;

are not to be regarded as financial assets for the purposes of section 178 or 179.

 (3) A determination under subsection (1) must be in writing.

 (4) A determination under subsection (1) takes effect on the day on which it is made or on any other day (whether earlier or later) that is stated in the determination.

If:

 (a) a person has an investment in:

 (i) a superannuation fund; or

 (ii) an approved deposit fund; or

 (iii) a deferred annuity; and

 (b) the person has not begun to receive a pension or annuity from the investment;

the investment is treated as follows:

 (c) the return on the investment is not treated as ordinary income (see paragraph 8(8)(b) of the Social Security Act);

 (d) if the investment is realised, the return is spread across the following 12 months (see section 187).

If:

 (a) a person realises an investment in a superannuation fund, approved deposit fund or deferred annuity; and

 (b) the amount is not rolled over into:

 (i) a superannuation fund; or

 (ii) an approved deposit fund; or

 (iii) a deferred annuity; or

 (iv) an immediate annuity;

the person is taken to receive one fifty-second of the assessable growth component of that amount as ordinary income of the person during each week in the period of 12 months beginning on the day on which the person realises the investment.

Note: For assessable growth component see subsection 9(1) of the Social Security Act.

 (1) If:

 (a) a person realises an investment to which section 187 applies; and

 (b) the investment is realised at a loss;

the person’s ordinary income is taken to be reduced during each week in the 12 months beginning on the day on which the person realises the investment by the amount worked out using the formula:

where:

assessable loss is so much (if any) of the amount of the loss as is attributable to the person’s assessable period.

Note: For assessable period see subsection 9(1) of the Social Security Act.

 (2) The reduction under subsection (1) in a person’s rate as at a particular day is not to exceed the increase to be made under section 187 in working out the person’s rate as at that day.

For the purpose of working out the annual rate of a person’s ordinary income from an immediate annuity, the person is taken to receive from the annuity each year an amount worked out by reducing the amount payable each year by the deductible amount in relation to the annuity.

Note: For deductible amount see subsection 9(1) of the Social Security Act.

For the purpose of working out the annual rate of a person’s ordinary income from a superannuation pension, the person is taken to receive from the pension each year an amount worked out by reducing the amount payable each year by the deductible amount in relation to the superannuation pension.

Note: For deductible amount see subsection 9(1) of the Social Security Act.

When person disposes of ordinary income

 (1) For the purposes of this Part, a person disposes of ordinary income of the person if:

 (a) the person engages in a course of conduct that directly or indirectly:

 (i) destroys the source of the income; or

 (ii) disposes of the income or the source of the income; or

 (iii) diminishes the income; and

 (b) one of the following subparagraphs is satisfied:

 (i) the person receives no consideration in money or money’s worth for the destruction, disposal or diminution;

 (ii) the person receives inadequate consideration in money or money’s worth for the destruction, disposal or diminution;

 (iii) the Secretary is satisfied that the person’s purpose, or the person’s dominant purpose, in engaging in that course of conduct was to obtain a social security advantage.

Purpose of obtaining social security advantage

 (2) For the purposes of subsection (1), a person has a purpose of obtaining a social security advantage if the person has a purpose of:

 (a) obtaining a youth training allowance or obtaining such an allowance at a higher rate than would otherwise have been payable; or

 (b) enabling the person’s partner to obtain a social security pension, a social security benefit, a service pension or a youth training allowance or to obtain such a pension, benefit or allowance at a higher rate than would otherwise have been payable; or

 (c) ensuring that the person or the person’s partner would be qualified for fringe benefits for the purposes of this Act or the Veterans’ Entitlements Act.

Note 1: For amount of disposition see section 216.

Note 2: For the effect of a transaction that constitutes both a disposal of an asset and a disposal of ordinary income see section 219.

If a person disposes of ordinary income, the amount of the disposition is the amount that, in the Secretary’s opinion, is:

 (a) if the person receives no consideration for the destruction, disposal or diminution—the annual rate of the diminution of the income because of the destruction, disposal or diminution; or

 (b) if the person receives consideration for the destruction, disposal or diminution—the annual rate of the diminution of the income because of the destruction, disposal or diminution less the part (if any) of the consideration that the Secretary considers to be fair and reasonable in all the circumstances.

If a person who is not a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person, the amount of the disposition is to be included in the person’s ordinary income for the purposes of this Part.

Note 1: For disposes of ordinary income see section 215.

Note 2: For amount of disposition see section 216.

Note 3: For ordinary income see subsection 8(1) of the Social Security Act: ordinary income includes investment income but does not include maintenance income.

Disposal after 14 May 1987

 (1) Subject to subsections (1A), (1B), (2), (3) and (4), if a person who is a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person:

 (a) 50% of the amount of the disposition is to be included in the person’s ordinary income; and

 (b) 50% of the amount of the disposition is to be included in the person’s partner’s ordinary income.

Note 1: For disposes of ordinary income see section 215.

Note 2: For amount of disposition see section 216.

 (1A) Subject to subsection (3), for the purposes of the application of this Act in relation to a person’s rate of youth training allowance, if:

 (a) a person who is a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person; and

 (b) the amount of the disposition is not greater than the least amount that, if added to the person’s ordinary income (disregarding this section), would cause the person’s rate of youth training allowance to be reduced to nil;

the amount of the disposition is to be included in the person’s ordinary income.

 (1B) Subject to subsection (3), for the purposes of the application of this Act in relation to a person’s rate of youth training allowance, if:

 (a) a person who is a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person; and

 (b) the amount of the disposition is greater than the least amount that, if added to the person’s ordinary income (disregarding this section), would cause the person’s rate of youth training allowance to be reduced to nil;

then:

 (c) the second of the amounts referred to in paragraph (b) is to be included in the person’s ordinary income; and

 (d) the difference between the 2 amounts referred to in paragraph (b) is to be included in the person’s partner’s ordinary income.

Cessation of membership of couple

 (2) If:

 (a) amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and

 (b) the person and the person’s partner cease to be members of the same couple;

any amount that was included in the ordinary income of the person’s former partner because of the disposition is to be included in the person’s ordinary income.

Death of member of couple

 (3) If:

 (a) amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and

 (b) the person dies;

no amount is to be included in the ordinary income of the person’s partner because of the disposition.

Death of member’s partner

 (4) If:

 (a) an amount is included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and

 (b) the person’s partner dies;

any amount that would, if the person’s partner had not died, be included in the ordinary income of the person’s partner because of the disposition is to be included in the person’s ordinary income.

Note: For ordinary income see subsection 8(1) of the Social Security Act: ordinary income includes investment income but does not include maintenance income.

Disposal

 (1) This section applies if:

 (a) a person disposes of an asset of the person; and

 (b) the course of conduct that constituted the disposition of the asset also constituted a disposition of ordinary income; and

 (c) the ordinary income disposed of is attributable, in whole or in part, to the asset.

No amount included

 (2) If:

 (a) this section applies; and

 (b) an amount is not included in the value of the person’s assets under point E8 or E9 in MODULE E in Schedule 1 because of the disposition of the asset;

an amount is not, for the purposes of section 217 or 218, to be included in the person’s ordinary income because of the disposition of ordinary income.

Amount included

 (3) If:

 (a) this section applies; and

 (b) the amount that is included in the value of the person’s assets under point E8 or E9 in MODULE E in Schedule 1 because of the disposition of the asset is:

 (i) if point E8 applies—less than 50% of the amount of the disposition of the asset; or

 (ii)  if point E9 applies—less than the amount of the disposition of the asset;

the amount to be included in the person’s ordinary income because of the disposition of ordinary income is to be worked out disregarding so much of the amount of the disposition of ordinary income as the Secretary decides is attributable to the part of the amount of the disposition of the asset that is not included in the value of the person’s assets under point E8 or E9.

This Subdivision does not apply to a disposition of ordinary income that took place:

 (a) more than 5 years before the time when:

 (i) the person who disposed of the ordinary income; or

 (ii) if the person who disposed of the ordinary income was, at the time of disposition, a member of a couple—the person’s partner;

  became qualified for a youth training allowance; or

 (b) less than 5 years before the time referred to in paragraph (a) and before the time when the Secretary is satisfied that the person who disposed of the ordinary income could reasonably have expected that the person or the person’s partner would become qualified for a youth training allowance.

Payments affected

 (1) If a person is or may be entitled to or receives compensation, payments of youth training allowance to the person or the person’s partner might be affected under this Division.

Failure to claim or obtain compensation

 (2) If the person is or may be entitled to compensation and does not take reasonable action to claim or obtain the compensation, the allowance might not be payable to the person.

Compensation in form of lump sum

 (3) If the compensation is a lump sum compensation payment, the allowance might cease to be payable for a period (based on the amount of the lump sum) and some or all of the allowance payments might be repayable.

Note 1: Under section 225, certain lump sum payments may be treated as though they were received as periodic payments.

Note 2: Under section 226, a person may be treated as having received compensation that the person would have received but for the effect of a State or Territory law.

Compensation in form of periodic payments

 (4) If the compensation is in the form of a series of periodic payments, the rate of the allowance might be reduced for the period for which the payments are received.

Note 1: Under section 225, certain lump sum payments may be treated as though they were received as periodic payments.

Note 2: Under section 226, a person may be treated as having received compensation that the person would have received except for the effect of a State or Territory law.

Connection between circumstances giving rise to qualification and compensation unnecessary

 (5) This Division operates in certain stated circumstances to affect a person’s youth training allowance because of compensation received by the person or the person’s partner. This Division is not intended to contain any implication that, in addition to those stated circumstances, there needs to be some connection between the circumstances that give rise to the person’s qualification for the allowance and the circumstances that give rise to the person’s or the partner’s compensation.

Note: See the note to subsection 248(2) for more background information.

 (1) If:

 (a) a person is entitled to periodic payments under a law of a State or Territory; and

 (b) the person’s entitlement to the periodic payments is converted under the law of the State or Territory into an entitlement to a lump sum; and

 (c) the lump sum is calculated by reference to a period;

 (e) the person had not received:

 (i) the lump sum; or

 (ii) if the lump sum is to be paid in instalments—any of the instalments; and

 (f) the person had received in each fortnight during the period a periodic compensation payment equal to the amount worked out using the formula:

  where:

  lump sum amount is the amount of the lump sum referred to in paragraph (b).

  number of fortnights in the period is the number of whole fortnights in the period referred to in paragraph (c).

 (2) This section does not apply in respect of a lump sum to which a person is entitled if section 228 applies in respect of the lump sum.

If:

 (a) a law of a State or Territory provides for the payment of compensation; and

 (b) the law includes a provision to the effect that a person’s compensation under the law is to be or may be reduced or cancelled if the person is qualified for or receives payments under this Part;

this Part applies as if the person had received under the law the compensation that the person would have received under the law if the provision referred to in paragraph (b) had not been enacted.

Person claiming or receiving youth training allowance

 (1) If:

 (a) a person claims or is receiving youth training allowance; and

 (b) the person or the person’s partner is entitled or may, in the Secretary’s opinion, be entitled to compensation; and

 (c) the person or the partner has taken:

 (i) no action to claim or obtain the compensation; or

 (ii) no action that the Secretary considers reasonable to claim or obtain the compensation;

the Secretary may require the person or the partner to take the action stated by the Secretary.

Secretary’s opinion regarding entitlement

 (3) Even though a person has entered into an agreement to give up the person’s right to compensation, the Secretary may form the opinion that the person may be entitled to compensation if the Secretary is satisfied that the agreement is void, ineffective or unenforceable.

Agreement to give up right to compensation

 (4) For the purposes of subsection (3), a person enters into an agreement to give up the person’s right to compensation if the person:

 (a) enters into an agreement to waive the person’s right to compensation; or

 (b) enters into an agreement to withdraw the person’s claim for compensation.

Stated action

 (5) The action stated by the Secretary is to be the action that the Secretary considers reasonable to enable the person to claim or obtain the compensation.

Allowance not payable or not to be granted if claimant etc. fails to comply

 (6) If, under subsection (1), the Secretary requires a person who claims or is receiving youth training allowance to take action to claim or obtain compensation, the allowance is not to be granted, or is not payable, to the person unless the person complies with the requirement.

Allowance not payable or not to be granted if partner fails to comply

 (7) If, under subsection (1), the Secretary requires the partner of a person who claims or is receiving youth training allowance to take action to claim or obtain compensation, the allowance is not to be granted, or is not payable, to the person unless the partner complies with the requirement.

Person not member of couple—payment received before 20 March 1997

 (1) If:

 (a) a person claims or receives youth training allowance; and

 (b) the person is not a member of a couple; and

 (c) the person receives a lump sum compensation payment (whether before or after the person claims or receives the allowance before 20 March 1997);

youth training allowance is not payable to the person for the old lump sum preclusion period.

Note 1: For old lump sum preclusion period see subsections (3) to (7).

Note 2: A series of lump sum payments can be taken to be one lump sum compensation payment under subsection 17(2B) of the Social Security Act.

Person not member of a couple—payment received on or after 20 March 1997

 (1A) If:

 (a) a person receives or claims a youth training allowance; and

 (b) the person is not a member of a couple; and

 (c) the person receives a lump sum compensation payment (whether before or after the person receives or claims the youth training allowance) on or after 20 March 1997;

no youth training allowance is payable to the person for the new lump sum preclusion period.

Note 1: For new lump sum preclusion period see subsections (7A) to (7D).

Note 2: A series of lump sum payments can be taken to be one lump sum compensation payment under subsection 17(2B).

Person member of a couple

 (2) If:

 (a) a person claims or receives youth training allowance; and

 (b) the person is a member of a couple; and

 (c) the person, or the person’s partner, receives a lump sum compensation payment (whether before or after the person claims or receives the allowance before 20 March 1997);

the following provisions have effect:

 (d) youth training allowance is not payable to the person for the old lump sum preclusion period;

 (e) youth training allowance is not payable to the person’s partner for the old lump sum preclusion period.

Note 1: For old lump sum preclusion period see subsections (3) to (7).

Note 2: A series of lump sum payments can be taken to be one lump sum compensation payment under subsection 17(2B) of the Social Security Act.

Person member of a couple—payment received on or after 20 March 1997

 (2A) If:

 (a) a person receives or claims a youth training allowance; and

 (b) the person is a member of a couple; and

 (c) the person receives a lump sum compensation payment (whether before or after the person receives or claims the youth training allowance) on or after 20 March 1997;

no youth training allowance is payable to the person for the lump sum preclusion period.

Old lump sum preclusion period

 (3) If periodic compensation payments are made in respect of the lost earnings or lost earning capacity, the old lump sum preclusion period is the period that:

 (a) begins on the day after the last day of the periodic payments period; and

 (b) ends after the number of weeks stated in subsection (7).

Note:  For periodic payments period see section 17 of the Social Security Act.

Entitlement received in lump sum

 (4) If a person chooses to receive part of an entitlement to periodic compensation payments in the form of a lump sum, the old lump sum preclusion period is the period that:

 (a) begins on the first day on which the person’s periodic compensation payment is a reduced payment because of that choice; and

 (b) ends after the number of weeks stated in subsection (7).

Compensation for injury, disease or condition

Lump sum preclusion period in other circumstances

 (6) If neither subsection (3) nor subsection (4) applies, the old lump sum preclusion period is the period that:

 (a) begins on the day on which the loss of earnings or loss of earning capacity began; and

 (b) ends after the number of weeks stated in subsection (7).

Number of weeks in period

 (7) The number of weeks in the old lump sum preclusion period is the number worked out using the following formula:

Note 1: For compensation part of lump sum see section 17 of the Social Security Act.

Note 2: For average weekly earnings see section 17 of the Social Security Act.

New lump sum preclusion period

 (7A) If periodic compensation payments are made in respect of the lost earnings or lost earning capacity, the new lump sum preclusion period is the period that:

 (a) begins on the day after the last day of the periodic payment period; and

 (b) ends after the number of weeks worked out under subsections (7D) and (8).

Note: For periodic payments period see section 17 of the Social Security Act.

 (7B) If a person chooses to receive part of an entitlement to periodic compensation payments in the form of a lump sum, the new lump sum preclusion period is the period that:

 (a) begins on the first day on which the person’s periodic compensation payment is a reduced payment because of that choice; and

 (b) ends the number of weeks worked out under subsections (7D) and (8).

 (7C) If neither subsection (8A) nor (8B) applies, the new lump sum preclusion period is the period that:

 (a) begins on the day on which the loss of earnings or loss of earning capacity began; and

 (b) ends after the number of weeks worked out under subsections (7D) and (8).

 (7D) If a compensation lump sum is received on or after 20 March 1997, the number of weeks in the preclusion period is the number worked out under the following formula:

Note 1: For compensation part of lump sum, see section 17 of the Social Security Act.

Note 2: For income cut-out amount, see section 17 of the Social Security Act.

Rounding down number of weeks

 (8) If the number worked out under subsection (7) or (7D) is not a whole number, the number is to be rounded down to the nearest whole number.

Secretary may determine person liable to pay amount

 (1) If:

 (a) a person in relation to whom youth training allowance is payable receives a lump sum compensation payment; and

 (b) the person receives payments of youth training allowance for the lump sum preclusion period;

the Secretary may, by written notice to the person, determine that the person is liable to pay to the Commonwealth the amount stated in the notice.

Note 2: A series of lump sum payments can be taken to be one lump sum compensation payment under subsection 17(2B) of the Social Security Act.

Method of working out recoverable amount

 (2) Subject to subsection (5), the amount specified in the notice is the recoverable amount and is worked out under subsections (3), (4), (4A), (4B) and (4C).

 (3) If the person is not a member of a couple, the recoverable amount is equal to the smaller of the following amounts:

 (a) the compensation part of the lump sum compensation payment;

 (b) the sum of the payments of youth training allowance made to the person:

 (i) if the lump sum compensation payment is received before 20 March 1997—for the old lump sum preclusion period; or

 (ii) if the lump sum compensation payment is received on or after 20 March 1997—for the new lump sum preclusion period.

 (4) If:

 (a) the person is a member of a couple; and

 (b) the person’s partner does not receive a compensation affected payment or youth training allowance for the old lump sum preclusion period;

the recoverable amount is equal to the smaller of the following amounts:

 (c) the compensation part of the lump sum compensation payment;

 (d) the sum of the payments of the compensation affected payment made to the person for:

 (i) if the lump sum compensation payment is received before 20 March 1997—the old lump sum preclusion period; or

 (ii) if the lump sum compensation payment is received on or after 20 March 1997—the new lump sum preclusion period.

 (4A) If:

 (a) the person is a member of a couple; and

 (b) the person receives a lump sum compensation payment before 20 March 1997; and

 (c) the person’s partner receives a compensation affected payment (other than a parenting payment) or youth training allowance, for the old lump sum preclusion period;

the recoverable amount is equal to the smaller of the following amounts:

 (d) the compensation part of the lump sum compensation payment;

 (e) the sum of:

 (i) the payments of youth training allowance made to the person for the old lump sum preclusion period; and

 (ii) the payments of the compensation affected payment (excluding any payments of parenting payment) made to the person’s partner under the Social Security Act for the old lump sum preclusion period and that would not have been recovered under the provision of that Act that corresponds to this section.

 (4B) If:

 (a) the person is a member of a couple; and

 (b) the person receives a lump sum compensation payment before 20 March 1997; and

 (c) the person’s partner receives a parenting payment for some or all of the old lump sum preclusion period;

the recoverable amount is equal to the smaller of the following amounts:

 (d) the compensation part of the lump sum compensation payment;

 (e) the sum of:

 (i) the payments of youth training allowance made to the person for the old lump sum preclusion period; and

 (ii) the payments of any compensation affected payment (excluding any payments of parenting payment) made to the person’s partner under the Social Security Act for the old lump sum preclusion period and that have not been recovered under the provision of that Act that corresponds to this section; and

 (iii) any payments of parenting payment in excess of the maximum basic component of parenting payment made to the person’s partner under the Social Security Act during the old lump sum preclusion period and that have not been recovered under the provision of that Act that corresponds to this section.

 (4C) If:

 (a) the person is a member of a couple; and

 (b) the person receives a lump sum compensation payment on or after 20 March 1997;

the recoverable amount is equal to the smaller of the following amounts:

 (c) the compensation part of the lump sum compensation payment;

 (d) the sum of the payments of the compensation affected payment made to the person for the new lump sum preclusion period.

Amount to be reduced by notional FAS entitlement

 (5) If:

 (a) subsection (1) applies to payments of youth training allowance paid to a person for a particular period (the overpayment recovery period); and

 (b) the Secretary is satisfied that family allowance supplement would have been payable to the person’s partner for some or all of the overpayment recovery period if:

 (i) the person’s partner had claimed family allowance supplement for that period; and

 (ii)  neither the person nor the person’s partner had been receiving a social security pension, a social security benefit or a youth training allowance during that period;

the amount stated in the notice under subsection (1) is to be reduced by the notional FAS entitlement.

Meaning of notional FAS entitlement

 (6) For the purposes of subsection (5), the notional FAS entitlement is the amount of family allowance supplement that the person’s partner would, in the Secretary’s opinion, have received during the overpayment recovery period if:

 (a) the person’s partner had claimed family allowance supplement for that period; and

 (b) neither the person nor the person’s partner had been receiving a social security pension, a social security benefit or a youth training allowance during that period.

Meaning of family allowance supplement

 (7) In subsections (5) and (6):

family allowance supplement means family allowance supplement within the meaning of the Social Security Act 1991 as in force immediately before 1 January 1993.

If an amount per fortnight of youth training allowance is not payable to a person under section 228 because of a lump sum compensation payment, that lump sum compensation payment is not to be regarded as ordinary income of either the person or the person’s partner for the purposes of this Part.

Note: For ordinary income, see section 8 of the Social Security Act.

Person qualified for youth training allowance

 (1) If:

 (a) a person, or the person’s partner, receives a periodic compensation payment for the whole or part of a period (the period) in respect of which the person claims or is receiving youth training allowance; and

 (b) the person was not receiving youth training allowance or a compensation affected payment at the time of the event that gave rise to the entitlement of the person, or the person’s partner, to the compensation;

the rate of the person’s youth training allowance for the period is to be reduced in accordance with this section.

Note 1: For compensation affected payment, see subsection 17(1) of the Social Security Act.

Note 2: If the person, or the person’s partner, was receiving youth training allowance or a compensation affected payment at the time of the event that gave rise to the entitlement of the person, or the partner, to compensation, the compensation is treated as ordinary income.

Note 3: Arrears of periodic compensation payments are dealt with under section 233.

Method of working out reduced rate

 (2) If the rate of the person’s youth training allowance is to be reduced under subsection (1), subsections (3), (4), (5) and (6) are to be used to work out the person’s reduced rate.

Note 1: If the fortnightly rate of periodic compensation is higher than the fortnightly rate of the youth training allowance, the youth training allowance will be reduced to nil for the period.

Note 2: If a person’s rate is reduced under subsection (1), the order in which the reduction is to be made against the components of the maximum payment rate is set out in section 257 (maximum basic rate first, then rent assistance).

Person not member of couple

 (3) If the person is not a member of a couple, the person’s fortnightly rate of youth training allowance is reduced by the fortnightly rate of periodic compensation.

Person member of couple

 (4) If:

 (a) the person is a member of a couple; and

 (b) the person’s partner does not claim or receive youth training allowance, a compensation affected payment, or a compensation affected pension under the Veterans’ Entitlements Act, for the period;

the person’s fortnightly rate of youth training allowance is reduced by the fortnightly rate of periodic compensation.

Note: A compensation affected pension under the Veterans’ Entitlements Act is an invalidity service pension, a partner service pension, a carer service pension or an income support supplement.

Person’s partner claims or receives compensation affected payment other than social security benefit or parenting payment

 (5) If:

 (a) the person is a member of a couple; and

 (b) the person’s partner claims or is receiving a compensation affected payment (other than a social security benefit or a parenting payment), or a compensation affected pension under the Veterans’ Entitlements Act, for the period;

the person’s fortnightly rate of youth training allowance is reduced by half the fortnightly rate of the periodic compensation.

Note: A compensation affected pension under the Veterans’ Entitlements Act is an invalidity service pension, a partner service pension, a carer service pension or an income support supplement.

Person’s partner claims or receives social security benefit, parenting payment or youth training allowance

 (6) If:

 (a) the person is a member of a couple; and

 (b) the person’s partner claims or is receiving a social security benefit, a parenting payment or youth training allowance, for the period;

the rate of the person’s youth training allowance for the period is to be reduced in accordance with subsection (7).

Method of working out reduced rate under subsection (6)

 (7) If the rate of a person’s youth training allowance is to be reduced under subsection (6), the person’s reduced rate is worked out as follows:

where:

youth training allowance payment rate is the fortnightly rate of youth training allowance that would (apart from subsection (6)) be payable to the person during the period.

partner’s excess compensation rate is the amount (if any) by which the fortnightly rate of any periodic compensation payable to the person’s partner for the period exceeds the fortnightly rate of:

 (a) the social security benefit or parenting payment that would (apart from subsection 1168(4) of the Social Security Act) be payable to the partner during that period; or

 (b) youth training allowance that would (apart from subsection (6) of this section) be payable to the partner during that period.

person’s compensation rate is the fortnightly rate of any periodic compensation paid or payable to the person for the period.

Note: If the person’s compensation rate or the partner’s excess compensation rate, or the 2 rates taken together, are higher than the fortnightly rate of youth training allowance, the allowance will be reduced to nil for the period.

If:

 (a) the rate of a person’s youth training allowance is to be reduced under this Division; and

 (b) the person’s rate is reduced under MODULE E or MODULE G in Schedule 1;

the reduction under this Division is to apply to the person’s rate as reduced under the MODULE or MODULES concerned.

Secretary may determine person liable to pay amount

 (1) If:

 (a) a person receives a series of periodic compensation payments; and

 (b) the person receives payments of youth training allowance for the periodic payments period; and

 (c) the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, receiving youth training allowance; and

 (d) the payments referred to in paragraph (b) have not been reduced under section 231;

the Secretary may, by written notice to the person, determine that the person is liable to pay to the Commonwealth the amount stated in the notice.

Note:  If a person was, at the time of the event that gave rise to the entitlement of the person to compensation, receiving youth training allowance, the compensation is treated as ordinary income. If arrears of periodic compensation payments are treated as ordinary income and a compensation debt is involved, then see subsections 167(7) and (8).

Method of working out recoverable amount

 (2) The amount specified in the notice is the recoverable amount and is worked out under subsection (3), (4), (5) or (6).

Person not member of couple

 (3) If the person is not a member of a couple, the recoverable amount is equal to the smaller of the following amounts:

 (a) the sum of the periodic compensation payments;

 (b) the sum of the payments of youth training allowance made to the person for the periodic payments period.

Person member of couple

 (4) If:

 (a) the person is a member of a couple; and

 (b) the person’s partner does not receive a compensation affected payment, youth training allowance, or a compensation affected pension under the Veterans’ Entitlements Act, for the periodic payments period;

the recoverable amount is equal to the smaller of the following amounts:

 (c) the sum of the periodic compensation payments;

 (d) the sum of the payments of youth training allowance made to the person for the periodic payments period.

Note: A compensation affected pension under the Veterans’ Entitlements Act is an invalidity service pension, a partner service pension, a carer service pension or an income support supplement.

Person’s partner receiving youth training allowance or compensation affected payment other than parenting payment

 (5) Subject to subsection (6), if:

 (a) the person is a member of a couple; and

 (b) the person’s partner receives a compensation affected payment (other than parenting payment), youth training allowance, or a compensation affected pension under the Veterans’ Entitlements Act, for the periodic payments period;

the recoverable amount is equal to the smaller of the following amounts:

 (c) the sum of the periodic compensation payments;

 (d)  the sum of:

 (i) the payments of youth training allowance made to the person and to the person’s partner for the periodic payments period; and

 (ii) the payments of the compensation affected payment (excluding any payments of parenting payment) made to the person’s partner under the Social Security Act for the periodic payments period and that have not been recovered under the provision of that Act that corresponds to this section; and

 (iii) the payments of compensation affected pension made to the person’s partner under the Veterans’ Entitlements Act for the lump sum preclusion period and that have not been recovered under the provision of that Act that corresponds to this section.

Note: A compensation affected pension under the Veterans’ Entitlements Act is an invalidity service pension, a partner service pension, a carer service pension or an income support supplement.

Person’s partner receiving parenting payment

 (6) If:

 (a) the person is a member of a couple; and

 (b) the person’s partner receives a parenting payment for the whole or part of the periodic payments period;

the recoverable amount is equal to the smaller of the following amounts:

 (c) the sum of the periodic compensation payments;

 (d) the sum of:

 (i) the payments of youth training allowance made to the person and to the person’s partner for the periodic payments period; and

 (ii) the payments of any compensation affected payment (excluding any payments of parenting payment) made to the person’s partner under the Social Security Act for the periodic payments period and that have not been recovered under the provision of that Act that corresponds to this section; and

 (iii) any payments of parenting payment in excess of the maximum basic component of parenting allowance made to the person’s partner under the Social Security Act for the periodic payments period and that have not been recovered under the provision of that Act that corresponds to this section.

Note 1: For maximum basic component of parenting payment see point 1068B-B6 of the PP (Partnered) Rate Calculator in section 1068B of the Social Security Act.

Note 2: If the partner of a compensation recipient claims or is receiving parenting payment, the payment may be reduced during the periodic payments period under subsection 1168(6) of the Social Security Act.

If the amount per fortnight of a youth training allowance payable to a person is reduced under section 231 because of a series of periodic compensation payments, those payments are not to be regarded as ordinary income of either the person or the person’s partner for the purposes of this Part.

Note: For ordinary income, see section 8 of the Social Security Act.

Notice that Secretary may wish to recover amount

 (1) If:

 (a) a person seeks compensation wholly or partly in respect of the person’s lost earnings or lost capacity to earn; and

 (b) the person receives or claims a youth training allowance for any period to which the compensation relates;

the Secretary may give written notice to the person’s potential compensation payer stating that the Secretary may wish to recover an amount from the potential compensation payer.

Note: For potential compensation payer see section 17 of the Social Security Act.

Contents of notice

 (2) A notice under subsection (1) must contain:

 (a) a statement of the potential compensation payer’s obligation under section 236; and

 (b) a statement of the effect of section 240 so far as it relates to a preliminary notice.

If a potential compensation payer:

 (a) is given notice under section 235 in relation to a person; and

 (b) either before or after receiving the notice, becomes liable to pay compensation to the person;

the potential compensation payer must give written notice to the Department of Social Security of the liability within 7 days after:

 (c) becoming liable; or

 (d) receiving the notice;

whichever happens later.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Notice that Secretary proposes to recover amount

 (1) If:

 (a) a compensation payer:

 (i) is liable to pay compensation to a person for a disease, injury or condition of the person; or

 (ii) has determined that a payment by way of compensation is to be made to a person in respect of a disease, injury or condition of the person; and

 (b) the person receives or claims a youth training allowance for the periodic payments period or the lump sum preclusion period;

the Secretary may give written notice to the compensation payer stating that the Secretary proposes to recover the amount stated in the notice from the compensation payer.

Note: For compensation payer see section 17 of the Social Security Act.

Payer liable to pay Commonwealth

 (2) If a compensation payer is given notice under subsection (1), the compensation payer is liable to pay to the Commonwealth the amount stated in the notice.

Amount stated in notice

 (3) The amount stated in the notice is the recoverable amount and is worked out under subsections (4), (5) and (6).

Person claiming compensation not member of couple

 (4) If the person claiming compensation is not a member of a couple, the recoverable amount is equal to the smallest of the following amounts:

 (a) the sum of the youth training allowance payments payable to the person for:

 (i) the periodic payments period; or

 (ii) if a lump sum compensation payment is received before 20 March 1997—the old lump sum preclusion period; or

 (iii) if a lump sum compensation affected payment is received before 20 March 1997—the new lump sum preclusion period;

 (b) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;

 (c) the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving:

 (i) a preliminary notice under section 235 in relation to the matter; or

 (ii) if the compensation payer has not received a preliminary notice—the recovery notice under this section in relation to the matter.

Person claiming compensation is member of couple and partner not getting pension or benefit

 (5) If:

 (a) the person claiming compensation is a member of a couple; and

 (b) the person’s partner neither receives nor claims a compensation affected payment or a youth training allowance for the periodic payments period or the lump sum preclusion period;

the recoverable amount is equal to the smallest of the following amounts:

 (c) the sum of the youth training allowance payments payable to the person for:

 (i) the periodic payments period; or

 (ii) if a lump sum compensation payment is received before 20 March 1997—the old lump sum preclusion period; or

 (iii) if a lump sum compensation affected payment is received before 20 March 1997—the new lump sum preclusion period;

 (d) the compensation part of the lump sum or the sum of the amounts of the periodic compensation payments;

 (e) the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving:

 (i) a preliminary notice under section 235 in relation to the matter; or

 (ii) if the compensation payer has not received a preliminary notice—the recovery notice under this section in relation to the matter.

Person claiming compensation is member of couple and partner getting pension or benefit

 (6) If:

 (a) the person claiming compensation is a member of a couple; and

 (b) the person’s partner receives or claims a compensation affected payment or a youth training allowance for:

 (i) the periodic payments period; or

 (ii) if a lump sum compensation payment is received by the person before 20 March 1997;

the recoverable amount is equal to the smallest of the following amounts:

 (c) subject to subsection (6A), the sum of:

 (i) the youth training allowance payable to the person for the periodic payments period or the lump sum preclusion period; and

 (iia) if a periodic payments period applies to the person’s partner—the youth training allowance payments payable to the person’s partner for that period; and

 (iib) if a lump sum compensation payment is received by the person’s partner before 20 March 1997—the youth training allowance payments payable to the person’s partner for the old lump sum preclusion period; and

 (ii) so much of the compensation affected payment payable to the person’s partner under the Social Security Act for the periodic payments period or the old lump sum preclusion period as has not been recovered under the provisions of the Social Security Act that correspond to this Division; and

 (iii) so much of the compensation affected pension payable to the person’s partner under the Veterans’ Entitlements Act for the preclusion payments period as has not been recovered under the provisions of that Act that correspond to this Division;

 (d) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;

 (e) the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving:

 (i) a preliminary notice under section 235 in relation to the matter; or

 (ii) if the compensation payer has not received a preliminary notice—the recovery notice under this section in relation to the matter.

Note: A compensation affected pension under the Veterans’ Entitlements Act is an invalidity service pension, a partner service pension, a carer service pension or an income support supplement.

 (6A) For the purposes of paragraph (6)(c), any payment of parenting payment payable to the person’s partner for the periodic payments period or the lump sum preclusion period is to be disregarded so far as it does not exceed the maximum basic component of parenting payment.

 

Note: For maximum basic component of parenting payment see point 1068B-B6 of the PP (Partnered) Rate Calculator in section 1068B of the Social Security Act.

Amounts to be reduced by notional FAS entitlement

 (7) If:

 (a) subsection (1) applies to payments of youth training allowance paid to a person for a particular period (the overpayment recovery period); and

 (b) the Secretary is satisfied that family allowance supplement would have been payable to the person’s partner for some or all of the overpayment recovery period if:

 (i) the person’s partner had claimed family allowance supplement for that period; and

 (ii) neither the person nor the person’s partner had been receiving a social security pension, a social security benefit or a youth training allowance during that period;

the amount stated in the notice under subsection (1) is to be reduced by the notional FAS entitlement.

Meaning of notional FAS entitlement

 (8) For the purposes of subsection (7), the notional FAS entitlement is the amount of family allowance supplement that the person’s partner would, in the Secretary’s opinion, have received during the overpayment recovery period if:

 (a) the person’s partner had claimed family allowance supplement for that period; and

 (b) neither the person nor the person’s partner had been receiving a social security pension, a social security benefit or a youth training allowance during that period.

Meaning of family allowance supplement

 (9) In subsections (7) and (8):

family allowance supplement means family allowance supplement within the meaning of the Social Security Act 1991 as in force immediately before 1 January 1993.

Contents of notice

 (10) A notice under this section must contain a statement of the effect of section 240 so far as it relates to a recovery notice.

Application

 (11) This section applies to an amount payable by way of compensation in spite of any law of a State or Territory (however expressed) under which compensation is inalienable.

If a compensation payer has been given a preliminary notice under section 235 or a recovery notice under section 237 in relation to the compensation payer’s liability, or possible liability, to pay compensation, the compensation payer is not liable to pay that compensation while the notice has effect.

Payment to the Commonwealth of an amount that a compensation payer is liable to pay under section 237 in relation to a person operates, to the extent of the payment, as a discharge of the compensation payer’s liability to pay compensation to the person.

Payer must not make payment

 (1) If a compensation payer has been given a preliminary notice under section 235 or a recovery notice under section 237 in relation to the payment of compensation to a person, the compensation payer must not intentionally or recklessly make the compensation payment to the person unless:

 (a) in respect of a preliminary notice—the Secretary has given the compensation payer written notice that the preliminary notice is revoked; or

 (b) in respect of a recovery notice—the compensation payer has paid to the Commonwealth the amount stated in the notice; or

 (c) the Secretary has given the compensation payer written permission to pay the compensation.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Amounts liable to be paid

 (2) A compensation payer who contravenes subsection (1) is, in addition to being liable under subsection (1), liable to pay to the Commonwealth:

 (a) if the contravention relates to a preliminary notice—an amount determined by the Secretary; and

 (b) if the contravention relates to a recovery notice—the recoverable amount stated in the notice.

Amount determined by Secretary

 (3) The amount determined by the Secretary under paragraph (2)(a) must not be more than the smallest of the amounts worked out under:

 (a) if the person is not a member of a couple—subsection 237(4); or

 (b) if the person is a member of a couple—subsection 237(5) or (6), as the case may be.

Application

 (4) This section applies in relation to a payment by way of compensation in spite of any law of a State or Territory (however expressed) under which the compensation is inalienable.

Notice that Secretary may wish to recover amount

 (1) If:

 (a) a person makes a claim against a potential compensation payer for compensation wholly or partly in respect of the person’s lost earnings or lost capacity to earn; and

 (b) the person receives or claims youth training allowance for any period to which the compensation relates; and

 (c) the potential compensation payer’s insurer, under a contract of insurance, may be liable to indemnify the potential compensation payer against any liability arising from the claim for compensation;

the Secretary may give written notice to the insurer stating that the Secretary may wish to recover an amount from the insurer.

Contents of notice

 (2) A notice under subsection (1) must contain:

 (a) a statement of the insurer’s obligation under section 242; and

 (b) a statement of the effect of section 247 so far as it relates to a preliminary notice.

If an insurer:

 (a) is given notice under section 241 in relation to a claim; or

 (b) either before or after receiving the notice, becomes liable to indemnify the compensation payer, either wholly or partly, in relation to the claim;

the insurer must give to the Department of Social Security written notice of the liability within 7 days after:

 (c) becoming liable; or

 (d) receiving the notice;

whichever happens later.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Notice that Secretary proposes to recover amount

 (1) If:

 (a) an insurer is liable, under a contract of insurance, to indemnify a compensation payer against any liability arising from a person’s claim for compensation wholly or partly in respect of the person’s lost earnings or lost capacity to earn; and

 (b) the person receives or claims youth training allowance for the periodic payments period or the lump sum preclusion period;

the Secretary may give written notice to the insurer stating that the Secretary proposes to recover the amount stated in the notice from the insurer.

Insurer liable to pay Commonwealth

 (2) If an insurer is given notice under subsection (1), the insurer is liable to pay to the Commonwealth the amount stated in the notice.

Amount stated in notice

 (3) The amount stated in the notice is the recoverable amount and is worked out under subsections (4), (5) and (6).

Person not member of couple

 (4) If the person claiming compensation is not a member of a couple, the recoverable amount is equal to the smallest of the following amounts:

 (a) the sum of the youth training allowance payments payable to the person for:

 (i) the periodic payments period; or

 (ii) if a lump sum compensation payment is received before 20 March 1997—the old lump sum preclusion period; or

 (iii) if a lump sum compensation affected payment is received before 20 March 1997—the new lump sum preclusion period;

 (b) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;

 (c) the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving:

 (i) a preliminary notice under section 241 in relation to the matter; or

 (ii) if the insurer has not received a preliminary notice—the recovery notice under this section in relation to the matter.

Person claiming compensation is member of couple and partner not getting pension, benefit or allowance

 (5) If:

 (a) the person claiming compensation is a member of a couple; and

 (b) the person’s partner neither receives nor claims a compensation affected payment or a youth training allowance for the periodic payments period or the lump sum preclusion period;

the recoverable amount is equal to the smallest of the following amounts:

 (c) the sum of the youth training allowance payments payable to the person for:

 (i) the periodic payments period; or

 (ii) if a lump sum compensation payment is received before 20 March 1997—the old lump sum preclusion period; or

 (iii) if a lump sum compensation affected payment is received before 20 March 1997—the new lump sum preclusion period;

 (d) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;

 (e) the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving:

 (i) a preliminary notice under section 241 in relation to the matter; or

 (ii) if the insurer has not received a preliminary notice—the recovery notice under this section in relation to the matter.

Person claiming compensation is member of couple and partner getting pension, benefit or allowance

 (6) If:

 (a) the person claiming compensation is a member of a couple; and

 (b) the person’s partner receives or claims a compensation affected payment or a youth training allowance for:

 (i) the periodic payments period; or

 (ii) if a lump sum compensation payment is received by the person before 20 March 1997—the old lump sum preclusion period;

the recoverable amount is equal to the smallest of the following amounts:

 (c) subject to subsection (6A), the sum of:

 (i) the youth training allowance payable to the person for the periodic payments period or the lump sum preclusion period; and

 (iia) if a periodic payments period applies to the person’s partner—the youth training allowance payments payable to the person’s partner for that period; and

 (iib) if a lump sum compensation payment is received by the person’s partner before 20 March 1997—the youth training allowance payments payable to the person’s partner for the old lump sum preclusion period; and

 (ii) so much of the compensation affected payment payable to the person’s partner under the Social Security Act for the periodic payments period or the old lump sum preclusion period as has not been recovered under the provisions of the Social Security Act that correspond to this Division;

 (d) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;

 (e) the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving:

 (i) a preliminary notice under section 241 in relation to the matter; or

 (ii) if the insurer has not received a preliminary notice—the recovery notice under this section in relation to the matter.

 (6A) For the purposes of paragraph (6)(c), any payment of parenting payment payable to the person’s partner for the periodic payments period or the lump sum preclusion period is to be disregarded so far as it does not exceed the maximum basic component of parenting payment.

 

Note: For maximum basic component of parenting payment see point 1068B-B6 of the PP (Partnered) Rate Calculator in section 1068B of the Social Security Act.

Contents of notice

 (7) A notice under this section must contain a statement of the effect of section 246 so far as it relates to a recovery notice.

If an insurer has been given a preliminary notice under section 241 or a recovery notice under section 243 in relation to the insurer’s liability, or possible liability, to indemnify a compensation payer against a liability arising from a claim for compensation:

 (a) the insurer is not liable so to indemnify the compensation payer; and

 (b) the compensation payer is not liable to pay that compensation;

while the notice has effect.

Payment of an amount that an insurer is liable to pay to the Commonwealth under section 243 in relation to a person claiming compensation operates, to the extent of the payment, as a discharge of:

 (a) the insurer’s liability to the compensation payer; and

 (b) the compensation payer’s liability to pay compensation to the person.

Insurer must not make payment

 (1) If an insurer has been given a preliminary notice under section 241 or a recovery notice under section 243 in relation to the insurer’s liability to make a payment indemnifying a compensation payer, the insurer must not intentionally or recklessly make the payment to the compensation payer unless:

 (a) in respect of a preliminary notice—the Secretary has given the insurer written notice that the preliminary notice is revoked; or

 (b) in respect of a recovery notice—the insurer has paid to the Commonwealth the amount stated in the notice; or

 (c) the Secretary has given the insurer written permission to make the payment to the compensation payer.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Liability to pay Commonwealth

 (2) An insurer who contravenes subsection (1) is, in addition to being liable under subsection (1), liable to pay to the Commonwealth:

 (a) if the contravention relates to a preliminary notice—an amount determined by the Secretary; and

 (b) if the contravention relates to a recovery notice—the recoverable amount stated in the notice.

Amount determined by Secretary

 (3) The amount determined by the Secretary under paragraph (2)(a) must not be more than the smallest of the amounts worked out under:

 (a) if the person claiming compensation is not a member of a couple—subsection 243(4); or

 (b) if the person claiming compensation is a member of a couple—subsection 243(5) or (6), as the case may be.

Notice to compensation payer in force

 (1) The Secretary is not to give a recovery notice to an insurer (under section 243) about a matter if there is a recovery notice to a compensation payer (under section 237) in force in relation to the same matter.

Notice to insurer in force

 (2) The Secretary is not to give a recovery notice to a compensation payer (under section 237) about a matter if there is a recovery notice to an insurer (under section 243) in force in relation to the same matter.

Special circumstances

 (1) For the purposes of this Division, the Secretary may treat the whole or a part of a compensation payment as:

 (a) not having been made; or

 (b) not liable to be made;

if the Secretary thinks it is appropriate to do so in the special circumstances of the case.

Partner in receipt of compensation

 (2) If:

 (a) a person claims or receives a youth training allowance; and

 (b) the person’s partner receives compensation; and

 (c) the set of circumstances giving rise to the compensation are not related to the set of circumstances that give rise to the person’s claim for or receipt of the youth training allowance;

the fact that those 2 sets of circumstances are unrelated does not in itself constitute special circumstances for the purposes of subsection (1).

Note: Subsection (2) is in response to comments made in the decision of the Administrative Appeals Tribunal in Re Secretary, Department of Social Security and Lee (S92/155) to the effect that the Social Security Act is aimed at reducing pensions in situations where a social security recipient’s entitlement is somehow connected with the fact that the recipient’s partner is in receipt of compensation payments and not wages.

This Division binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.

This Division provides for:

 (a) the indexation, in line with CPI (Consumer Price Index) increases, of the amounts in column 2 of the CPI Indexation Table at the end of section 252; and

 (b) the adjustment of certain amounts of pharmaceutical allowance in line with the increases in the amounts indexed; and

 (c) one-off adjustments of rent assistance threshold amounts.

The following table sets out:

 (a) each amount that is to be indexed or adjusted under this Division; and

 (b) the abbreviation (if any) used in this Division for referring to that amount; and

 (c) the provision or provisions in which that amount is to be found.

 

INDEXED AMOUNTS TABLE

 column 1

item

column 2

description of amount and abbreviation (if any)

column 3

provisions in which amount stated

1. 

Maximum basic rate of youth training
allowance (abbreviated as maximum
basic rate)

Table B in point B1 in MODULE B
in Schedule 1—column 3—all
amounts

2.

Rent threshold rate

Table DA in point D2 in MODULE
D in Schedule 1—column 3—all
amounts and Table DB in point D6 in
MODULE D in Schedule 1—column
3—all rent threshold amounts

3.

Maximum rent assistance rate

Table DB in point D6 in MODULE
D in Schedule 1—column 4—all
amounts

5.

Rate of pharmaceutical allowance for
a person who is not a member of a
couple (abbreviated as PA item 5
rate)

Item 1 in Table C in point C5 in
MODULE C in Schedule 1—column
3

6.

Rate of pharmaceutical allowance for
a person who is partnered
(abbreviated as PA item 6 rate)

Item 2 in Table C in point C5 in
MODULE C in Schedule 1—column
3

7.

Rate of pharmaceutical allowance for
a person who is a member of an
illness separated couple or a respite
care couple (abbreviated as PA item 7
rate)

Items 3 and 4 in Table C in point C5
in MODULE C in Schedule 1—
column 3

8.

Rate of pharmaceutical allowance for
a person:

(a) who is a member of a couple; and

(b)  whose partner is receiving a service pension

(abbreviated as PA item 8 rate)

Item 5 in Table C in point C5 in
MODULE C in Schedule 1—column
3

9.

Rate of pharmaceutical allowance for
a person:

(a)  who is a member of a couple; and

(b) whose partner is in gaol

(abbreviated as PA item 9 rate)

Item 6 in Table C in point C5 in
MODULE C in Schedule 1—column
3

10.

Deeming threshold for a person who
is not a member of a couple
(abbreviated as Deeming threshold
individual)

Subsection 182(1)

11.

Deeming threshold for a member of a
couple (abbreviated as Deeming
threshold member of a couple)

Subsection 182(2)

Amount to be indexed

 (1) An amount referred to in the following CPI Indexation Table below is to be indexed under this Subdivision on each indexation day for the amount, using the reference quarter and base quarter for the amount and indexation day and rounding off to the nearest multiple of the rounding base.

 

CPI INDEXATION TABLE

column 1

column 2

column 3

column 4

column 5

column 6

 item

 amount

indexation
day(s)

reference
quarter (most
recent before
indexation
day)

base quarter

rounding
base

1.

Maximum
basic rate

1 January

June

highest June
quarter before
reference
quarter (but not
earlier than
June quarter
1986)

$0.10

2.

Rent
threshold
rate

(a) 20 March

(b)  20 September

(a) December

(b) June

highest June or
December
quarter before
reference
quarter (but not
earlier than June
quarter 1979)

$0.20

3.

Maximum
rent
assistance
rate

(a)  20 March

(b) 20 September

(a) December 

(b) June

highest June or 
December
quarter before
reference
quarter (but not
earlier than June
quarter 1979)

$0.20

5.

PA item 6
rate and
PA item 8
rate

1 January

September

highest
September
quarter before
reference
quarter (but not
earlier than
September
quarter 1991)

$0.10

6.

Deeming
threshold
individual

1 July

March

highest March
quarter before
reference
quarter (but not
earlier than
March 1994
quarter)

$200.00

7.

Deeming
threshold
member
of a
couple

1 July

March

highest March
quarter before
reference
quarter (but not
earlier than
March 1994
quarter)

$200.00

Highest quarter

 (2) A reference in the CPI Indexation Table to the highest of a group of quarters is a reference to the quarter in that group that has the highest index number.

Indexed amount substituted

 (1) If an amount is to be indexed under this Division on an indexation day, this Part has effect as if the indexed amount were substituted for that amount on that day.

Method of working out indexed amount

 (2) This is how to work out the indexed amount for an amount that is to be indexed under this Subdivision on an indexation day:

Method statement

Step 1. Use section 254 to work out the indexation factor for the amount on the indexation day.

Step 2. Work out the current figure for the amount immediately before the indexation day.

Step 3. Multiply the current figure by the indexation factor: the result is the provisional indexed amount.

Step 4. Use section 255 to round off the provisional indexed amount: the result is the indexed amount.

Note:  For current figure see subsection 58(1).

First indexation of maximum basic rate

 (3) The first indexation of the amounts under items 1, 4 and 5 of the CPI indexation Table in subsection 252(1) is to take place on 1 January 1996.

 (4) The first indexation of amounts under items 6 and 7 of the CPI Indexation Table in subsection 252(1) is to take place on 1 July 1997.

Method of working out indexation factor

 (1) Subject to subsections (2) and (3), the indexation factor for an amount that is to be indexed under this Division on an indexation day is the factor worked out to 3 decimal places using the following formula:

Note: For reference quarter and base quarter see CPI Indexation Table in section 252.

Factor ending in number greater than 4

 (2) If an indexation factor worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the indexation factor is to be increased by 0.001.

Factor less than 1

 (3) If an indexation factor worked out under subsections (1) and (2) would be less than 1, the indexation factor is to be increased to 1.

Amount is multiple of rounding base

 (1) If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount.

Note 1:  For provisional indexed amount see Step 3 in subsection 253(2).

Note 2: For rounding base see the CPI Indexation Table in section 252.

Amount not multiple of rounding base

 (2) Subject to subsections (3) and (4), if a provisional indexed amount is not a multiple of the rounding base, the indexed amount is the provisional indexed amount rounded up or down to the nearest multiple of the rounding base.

Amount is multiple of half rounding base

 (3) Subject to subsection (4), if a provisional indexed amount is not a multiple of the rounding base but is a multiple of half the rounding base, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of the rounding base.

Amount for pharmaceutical allowance or payment limit

 (4) If a provisional indexed amount for a pharmaceutical allowance rate is not a multiple of 10 cents, the indexed amount is the provisional indexed amount rounded down to the nearest multiple of 10 cents.

This Part has effect as if, on 1 January 1996 and on 1 January in each later year, there were substituted for the PA item 5 rate, the PA item 7 rate and the PA item 9 rate the amount worked out using the formula:

Current PA item 6 rate    2

where:

Current PA item 6 rate means the current figure, as at that 1 January, for the PA item 6 rate.

This Part has effect as if $5 were added to each amount that is taken to be substituted on 20 March 1996 for an amount in column 3 of Table DA or column 3 of Table DB.

Note: Table DA is in point D2 of Module D in Schedule 1 and Table DB is in point D6 of that Module.

If:

 (a) the rate of a youth training allowance that applies to a person is increased under MODULE C (pharmaceutical allowance), or MODULE D (rent assistance), in Schedule 1; and

 (b) the rate of the allowance is to be reduced under MODULE E (assets test), or MODULE G (ordinary income test), in Schedule 1 or under section 231 (compensation reduction provisions);

the reduction is to be applied:

 (c) first, to the rate of the allowance apart from any increase referred to in paragraph (a); and

 (d) secondly, to the amount of any increase under MODULE D; and

 (e) finally, to the amount of any increase under MODULE C.

Recovery methods

 (1) This Division provides methods for recovery by the Commonwealth of:

 (a) debts owed to the Commonwealth under Subdivision B; and

 (b) assurance of support debts; and

 (c) overpayments under certain other Acts or schemes; and

 (d) debts incurred under other Acts for failing to repay part or all of the overpayments referred to in paragraph (c); and

 (e) debts under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990.

Note 1: The debts owed to the Commonwealth under Subdivision B are:

         section 261 debts—debts arising under this Part;

         section 262 debts—debts arising from prepayments;

         section 263 debts—debts arising from AAT stay orders;

         section 264 debts—debts arising from automatic termination (transfer to social security pension or benefit) provisions;

         section 265 debts—automatic rate reductions because of partner starting to receive allowance, pension or benefit;

         section 266 debts arising because of recipient’s contravention of Part;

         section 267 debts—person other than payee obtaining payment of a cheque;

         section 268—debts arising from conviction of person for involvement in contravention of Part by debtor;

         section 269 debts—Data-matching Program debts;

         section 270 debts—compensation debts;

         section 271 debts—compensation payer and insurer debts;

         section 272 debts—compensation arrears debts;

         section 275 debts—penalty interest debts;

         section 276 debts—penalty interest agreement debts;

         section 279 debts—garnishee notice debts.

Note 2: For assurance of support debt see section 58.

Note 3: For overpayments under other Acts and schemes see section 274.

Available methods

 (2) The methods of recovery available for the various types of debt are set out in the following Table:

 

RECOVERY METHODS TABLE

column 1

column 2

column 3

column 4

item

debt

methods

provision

1.

261
(debt arising under this Part)

deductions
legal proceedings
garnishee notice

281
282
283
285

2.

262
(debt arising from prepayment)

deductions
legal
proceedings
garnishee notice

281
282
283
285

3.

263
(debt arising from AAT stay order)

deductions
legal
proceedings
garnishee notice

281
282
283
285

4.

264 (automatic termination (transfer to social security pension or benefit)) 

deductions
legal
proceedings
garnishee notice

281
282
283
285

5.

265
(partner rate adjustment)

deductions
legal
proceedings
garnishee notice

281
282
283
285

6.

266
(contravention of Part)

deductions
legal
proceedings
garnishee notice

281
282
283
285

7.

267
(person other than payee obtaining payment of a cheque)

deductions
legal
proceedings
garnishee notice

281
282
283
285

8.

268
(conviction of person for involvement in contravention of Part by debtor)

deductions
legal
proceedings
garnishee notice

281
282
283
285

9.

269 
(Data-matching Program debts)

deductions
legal
proceedings
garnishee notice

281
282
283
285

10.

270
(compensation debt)

deductions
legal
proceedings
garnishee notice

281
282
283
285

11.

271
(compensation payer and insurer debts)

legal
proceedings

282

12.

272
(compensation arrears debt)

deductions
legal
proceedings
garnishee notice

281
282
283
285

13.

273
(assurance of support debt)

deductions
legal
proceedings
garnishee notice

281
282
283
285

14.

275
(penalty interest debt)

deductions
legal
proceedings
garnishee notice

281
282
283
285

15.

276
(penalty interest agreement debt)

deductions
legal
proceedings
garnishee notice

281
282
283
285

16.

279 
(garnishee notice debt)

legal
proceedings
garnishee notice

282
283

Note: The Secretary may decide to allow a person to pay a debt in one or more instalments—see section 284.

Recovery of deductions

 (3) If a person:

 (a) has (whether before or after the commencement of this Part) received an overpayment under certain other Acts or schemes; or

 (b) has (whether before or after the commencement of this Part) incurred a debt under another Act for failing to repay part or all of such an overpayment;

the amount of the overpayment or debt may be recoverable by means of deductions from the person’s youth training allowance.

Note: For deductions see section 281.

Sections 261, 266, 268, 270, 272, 273 and 274 extend to:

 (a) acts, omissions, matters and things outside Australia, whether or not in a foreign country; and

 (b) all people irrespective of their nationality or citizenship.

If an amount has been paid by way of youth training allowance under this Part, the amount is a debt due to the Commonwealth if, and only if, a provision of this Part or of the Data-matching Program (Assistance and Tax) Act 1990  expressly provides that it is.

Note:  For the provisions of this Part that create debts due to the Commonwealth see sections 261, 262, 263, 264, 265, 266, 267, 268, 269, 270, 271, 272, 275 and 276.

Recipient not qualified for payment or amount not payable

 (1) Subject to subsection (2), if an amount has been paid to a person by way of youth training allowance on or after 1 October 1997 and:

 (a) the person was not qualified for the payment; or

 (b) the amount was not payable to the person;

the amount so paid is a debt due to the Commonwealth.

Duplicate instalments

 (3) If:

 (a) an amount has been paid to a person by way of an instalment of a youth training allowance; and

 (b) another amount (the later amount) is paid to the person in respect of the same instalment; and

 (c) the later amount is not a payment of arrears; and

 (d) the later amount would not otherwise be a debt due to the Commonwealth;

the later amount is a debt due to the Commonwealth.

Incorrectly paid amount

 (4) If:

 (a) an amount (the received amount) has been paid to a person by way of youth training allowance on or after 1 October 1997; and

 (b) because the received amount had not been correctly calculated, or for any other reason, the received amount is more than the amount (the correct amount) of the youth training allowance that should have been paid to the person;

the difference between the received amount and the correct amount is a debt due to the Commonwealth.

Amount calculated using remote area allowance/youth training allowance supplement—no remote area allowance or supplement payable

 (6) If:

 (a) an amount has been paid to a person by way of youth training allowance; and

 (b) the amount was calculated using:

 (i) an amount of remote area allowance when an amount by way of remote area allowance was not payable; or

 (ii)  an amount of youth training allowance supplement when a youth training allowance supplement was not payable;

each of the following amounts is a debt due to the Commonwealth:

 (c) the amount of remote area allowance;

 (d) the amount of youth training allowance supplement.

Amount calculated using incorrect remote area allowance/youth training allowance supplement—remote area allowance or supplement payable

 (7) If:

 (a) an amount (the received amount) has been paid to a person by way of youth training allowance; and

 (b) the received amount is more than the amount (the correct amount) of the youth training allowance that was payable to the person; and

 (c) the received amount was calculated using:

 (i) a rate of remote area allowance that was more than the remote area allowance that was used to calculate the correct amount; or

 (ii)  an amount of youth training allowance supplement that was greater than the rate of youth training allowance supplement that was used to calculate the correct amount;

the difference between the received amount and the correct amount is a debt due to the Commonwealth.

When prepayment is debt

 (1) If:

 (a) a person has received a prepayment of youth training allowance for a period; and

 (b) the person fails to provide a statement under section 150 in relation to the period;

the amount of the prepayment is a debt due to the Commonwealth.

Note: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).

Determination of Secretary

 (2) If the Secretary is satisfied that, in the special circumstances of the case, it is appropriate to do so, the Secretary may determine in writing that subsection (1) does not apply to the prepayment.

Calculation of debt

 (3) If:

 (a) a person has received a prepayment of a youth training allowance for a period; and

 (b) the amount of the prepayment is more than the amount (if any) (the correct amount) of youth training allowance that would have been payable to the person if:

 (i) the prepayment had not been made; and

 (ii) the person had not made a false statement or false representation in relation to matters that affect payment for the period; and

 (iii) the person had not contravened this Part in relation to matters that affect payment for the period; and

 (c) subsection (1) does not apply to the prepayment;

the difference between the prepayment and the correct amount is a debt due to the Commonwealth.

Calculation of debt: estimated income or anticipated circumstances

 (3A) If:

 (a) a person has, whether before or after the commencement of this subsection, received a payment (the received amount) of a youth training allowance in respect of a period; and

 (b) the received amount was calculated having regard to estimated income or anticipated changes of circumstances set out in a statement made in response to a notice under section 150 in respect of the period; and

 (c) the person’s actual income or the circumstances that actually occur are different from those estimated or anticipated; and

 (d) the received amount is more than the amount (if any) of the youth training allowance (the correct amount) that would have been paid under this Act to the person in respect of the period if the income or circumstances set out in the statement had been the person’s actual income or the circumstances that actually occurred;

the difference between the received amount and the correct amount is a debt due to the Commonwealth.

Meaning of prepayment

 (5) In this section:

prepayment means a payment under section 143 (prepayment because of public holiday etc.).

If:

 (a) a person applies to the Administrative Appeals Tribunal under section 324 for review of a decision; and

 (b) the Administrative Appeals Tribunal makes an order under subsection 41(2) of the Administrative Appeals Tribunal Act 1975; and

 (c) as a result of the order, the amount that has in fact been paid to the person by way of youth training allowance is more than the amount that was payable to the person;

the difference between the amount that was in fact paid to the person and the amount that was payable to the person is a debt due to the Commonwealth.

Note 1: Subsection 43(6) of the Administrative Appeals Tribunal Act 1975 provides that the AAT’s decision on the review will generally take effect from the day on which the SSAT’s decision had effect. Since this is the case, the amount payable to the person during the stay period is the amount finally determined by the AAT as being payable and not the amount that was paid in accordance with the terms of the stay order.

When amount is debt due

 (1) If:

 (a) an amount has been paid to a person by way of youth training allowance under this Part; and

 (b) the amount was paid because the person or another person:

 (i) made a false statement or a false representation; or

 (ii) contravened this Part;

the amount so paid is a debt due by the first-mentioned person to the Commonwealth.

Note: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).

When amount is debt due

 (1) If:

 (a) an instalment of a youth training allowance is paid by cheque; and

 (b) a person other than the payee obtains possession of the cheque from the payee; and

 (c) the cheque is not endorsed by the payee to the person; and

 (d) the person obtains value for the cheque;

the amount of the cheque is a debt due by the person to the Commonwealth.

Liability

 (1) If:

 (a) a person is liable to pay a debt under section 266 because the person contravened this Part; and

 (b) another person is convicted of an offence under section 5, 7A or 86 of the Crimes Act 1914 in relation to the contravention;

the first-mentioned person and the other person are jointly and severally liable to pay the debt.

Note 1: Subsection (1) does not create a new debt. It extends liability for a debt that has already arisen under section 266 to a person who is convicted of certain offences.

Note 2: In recovering a debt, regard may be had to any view expressed by a court as to the responsibility of a person to pay the debt.

If a person is liable to pay a compensation debt, that debt is a debt due to the Commonwealth..

Note 1: For compensation debt see section 23 of the Social Security Act.

Note 5: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).

If a person is liable to pay an amount to the Commonwealth because of:

 (a) a notice by the Secretary under section 237 (compensation payer); or

 (b) a notice by the Secretary under section 243 (insurer);

the amount is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of legal proceedings.

If a person is liable to pay a compensation arrears debt, that debt is a debt due to the Commonwealth..

Note 1: For compensation arrears debt see subsection 23(1) of the Social Security Act.

Note 5: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).

  If a person is liable to pay an assurance of support debt, the debt is a debt due to the Commonwealth.

Note 1: For assurance of support debt see section 58.

Note 2: If the person does not pay the debt or enter into an agreement to pay it within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).

Overpayment or debt recoverable by deductions

 (1) If:

 (a) an amount has, whether before or after the commencement of this Part, been paid to a person by way of a payment or payments to which subsection (2) applies but the amount should not have been paid; or

 (b) a person owes:

 (i) a debt referred to in paragraph (b) of the definition of student assistance overpayment in subsection 3(1); or

 (ii)  a debt referred to in section 79 of the Child Support (Registration and Collection) Act 1988;

and the person is receiving a youth training allowance:

 (c) for which the person is qualified; and

 (d) which is payable to the person;

the amount or debt, as the case may be, is taken to be an overpayment that is recoverable by the Commonwealth by means of deductions.

Note: For deductions see section 281.

Payments covered

 (2) This subsection applies to:

 (a) a payment, or an advance payment, of pension, benefit or allowance under the Social Security Act; or

 (b) a payment of pension or allowance under the Veterans’ Entitlements Act; or

 (c) a payment of pension or allowance under the Seamen’s War Pensions and Allowances Act 1940; or

 (d) a payment under:

 (i) the AUSTUDY Scheme; or

 (ii) the ABSTUDY Schooling Scheme; or

 (iii) the ABSTUDY Tertiary Scheme (to the extent that it applies to full-time students); or

 (iv)  the Assistance for Isolated Children Scheme; or

 (v) the Veterans’ Children Education Scheme; or

 (vi) the former Post-Graduate Awards Scheme; or

 (vii) the Adult Migrant Education Program Living Allowance; or

 (viii) the Maintenance Allowance for Refugees; or

 (ix) the English as a Second Language Allowance (to the extent that it applies to full-time students); or

 (e) if the amount was paid to the person on or after 12 August 1988—a payment under a program included in the programs known as Labour Market Programs.

Note: Labour Market Programs are administered by the Department and provide income support for people undertaking various kinds of vocational training.

Debt recovery from non-youth training allowance recipients

 (1) If:

 (a) a person is not receiving a youth training allowance; and

 (b) the person owes a debt to the Commonwealth under this Division; and

 (c) the Secretary has given the person a notice asking the person to pay the debt; and

 (d) at the end of 3 months after the day on which the notice was given, the person:

 (i) has not entered into negotiations to pay the debt; or

 (ii) has entered into negotiations to pay the debt, but has not entered into an agreement to pay the debt by reasonable instalments;

the Secretary may give the person a notice telling the person the following:

 (e) the amount of the debt;

 (f) that, unless the person, within 14 days after the notice is given:

 (i) pays the whole of the debt; or

 (ii) enters into an agreement to pay the debt by reasonable instalments;

  interest may become payable on the debt;

 (g) how any interest that becomes payable is to be calculated.

Interest payable

 (2) Subject to subsection (3), if:

 (a) the whole of the debt is not paid within 14 days after the person is given the notice; or

 (b) the person does not enter into an agreement to pay the debt within the 14 day period;

interest is payable by way of penalty on the debt by the person and the amount of the interest is to be worked out under subsection (4).

Intention to pay debt

 (3) The Secretary may determine that interest is not payable on the debt if the Secretary is satisfied that the person intends to pay the debt as soon as is reasonably practicable having regard to the person’s circumstances.

Interest payable

 (4) Interest is payable on the amount of the debt (excluding interest) that remains due from time to time:

 (a) on and from the day after the 14 day period ends; and

 (b) at the penalty interest rate.

Note: For penalty interest rate see section 277.

Payments in satisfaction of debt and interest

 (5) If:

 (a) interest is payable on the debt; and

 (b) an amount is paid for the purpose of paying the debt and the interest;

the amount so paid is to be applied as follows:

 (c) until the debt (excluding interest) is fully paid—in satisfaction of the amount of the debt that is due when the payment is made;

 (d) after the debt (excluding interest) is fully paid—in satisfaction of the interest that had become payable on the debt before the debt was fully paid.

Interest ceases to be payable if agreement entered into

 (6) If a person enters into an agreement to pay the debt by reasonable instalments, interest that would, apart from this subsection, become payable on the debt on and from the day on which the agreement is entered into is not payable.

Interest not payable during garnishee notice period if 2 or more payments made

 (7) If 2 or more payments are made in reduction of the debt in compliance with a garnishee notice under subsection 283(1), interest that would, apart from this subsection, become payable on the debt during the garnishee notice period is not payable.

Interpretation

 (8) In this section:

garnishee notice period means the period that begins on the day the first payment is made in compliance with a garnishee notice and ends on the day on which the last payment is made in compliance with that notice (whether or not the debt is satisfied).

Methods of recovery

 (9) The interest that is payable on the debt is a debt due to the Commonwealth.

Interest applies if debt not repaid

 (1) If:

 (a) a person is not receiving a youth training allowance; and

 (b) the person owes:

 (i) a debt to the Commonwealth under this Division; or

 (ii) an assurance of support debt; and

 (c) the person enters into an agreement to pay the debt by reasonable instalments; and

 (d) the person does not pay an instalment;

the Secretary may give the person a notice telling the person the following:

 (f) the amount of the debt;

 (g) that, unless the person pays the instalment within 14 days after the notice is given, interest may become payable on the debt;

 (h) how any interest that becomes payable is to be calculated.

Interest payable

 (2) Subject to subsections (3) and (4), if the instalment is not paid within 14 days after the person is given the notice, interest is payable by way of penalty on the debt by the person and the amount of interest is to be worked out under subsection (5).

Intention to pay debt

 (3) The Secretary may determine that interest is not payable on the debt if the Secretary is satisfied that the person intends to pay the instalment as soon as is reasonably practicable having regard to the person’s circumstances.

Interest ceases to accrue

 (4) Interest payable under subsection (2) stops accruing on and from the day the person:

 (a) next pays the instalment due under an agreement; or

 (b) enters into a new agreement;

whichever first occurs.

Interest payable

 (5) Interest is payable on the amount of the debt (excluding interest) that remains due from time to time:

 (a) on and from the day after the 14 day period ends; and

 (b) at the penalty interest rate.

Note: For penalty interest rate see section 277.

Payments in satisfaction of debt and interest

 (6) If:

 (a) interest is payable on the debt; and

 (b) an amount is paid for the purpose of paying the debt and the interest;

the amount so paid is to be applied as follows:

 (c) until the debt (excluding interest) is fully paid—in satisfaction of the amount of the debt that is due when the payment is made;

 (d) after the debt (excluding interest) is fully paid—in satisfaction of the interest that had become payable on the debt before it was fully paid.

Methods of recovery

 (7) The interest that is payable on the debt is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of:

 (a) if the person is receiving a youth training allowance—deductions from the person’s youth training allowance; or

 (b) if section 285 applies to another person who is receiving a youth training allowance—deductions from the other person’s youth training allowance; or

 (c) legal proceedings; or

 (d) garnishee notice.

Note 1: For deductions see sections 281 and 285.

Note 2: For legal proceedings see section 282.

Note 3: For garnishee notice see section 283.

Rate of penalty interest

 (1) The penalty interest rate is:

 (a) 20% a year; or

 (b) if a lower rate is determined under subsection (2)—that lower rate.

Minister may lower penalty interest rate

 (2) The Minister may from time to time determine in writing a rate of less than 20% a year that is to be the penalty interest rate for the purposes of sections 275 and 276.

Status of determination

 (3) A determination under subsection (2) is a disallowable instrument.

Note: For disallowable instrument see subsection 23(1) of the Social Security Act.

Issue of guidelines

 (1) The Minister must, as soon as practicable after the commencement of this Part, and afterwards from time to time, determine in writing guidelines for the operation of the provisions of this Part dealing with Penalty Interest Charge.

Status of determination

 (2) A determination under subsection (1) is a disallowable instrument.

Note: For disallowable instrument see subsection 23(1) of the Social Security Act.

Amount recoverable from garnishee debtor

 (1) If:

 (a) a person (the garnishee debtor) is given a notice under section 283 in respect of a debt due by another person (the original debtor) under this Part; and

 (b) the garnishee debtor fails to comply with the notice to the extent that he or she is capable of complying with it;

then the amount of the debt outstanding (worked out under subsection (2)) is recoverable from the garnishee debtor by the Commonwealth by means of:

 (c) legal proceedings; or

 (d) garnishee notice.

Note 1: For legal proceedings see section 282.

Note 2: For garnishee notice see section 283.

Note 3: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).

Meaning of amount of the debt outstanding

 (2) The amount of the debt outstanding is the amount equal to:

 (a) as much of the amount required by the notice under section 283 to be paid by the garnishee debtor as the garnishee debtor was able to pay; or

 (b) as much of the debt due by the original debtor when the notice was given as remains due from time to time;

whichever is the less.

Recovery of debt due by garnishee debtor and by other person

 (3) If the Commonwealth recovers:

 (a) the whole or a part of the debt due by the garnishee debtor under subsection (1); or

 (b) the whole or a part of the debt due by the original debtor;

then:

 (c) both debts are reduced by the amount that the Commonwealth has so recovered; and

 (d) the amount stated in the notice under section 283 is to be taken to be reduced by the amount so recovered.

Application

 (4) This section applies to an amount in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.

Meaning of person

 (5) In this section:

person includes:

 (a) the Commonwealth; and

 (b) a State; and

 (c) a Territory; and

 (d) any authority of the Commonwealth or of a State or Territory.

 (1) A debt is recoverable by the Commonwealth by means of:

 (a) if the person is receiving a youth training allowance—deductions from the person’s youth training allowance; or

 (b) if section 285 applies to another person who is receiving a youth training allowance—deductions from the other person’s youth training allowance; or

 (c) legal proceedings; or

 (d) garnishee notice.

 (2) In this section:

debt means:

 (a) a debt due to the Commonwealth under section 261, 262, 263, 266, 267, 270, 272, 273, 275, 276 or 279; or

 (b) a debt due to the Commonwealth for which a person is liable because of section 268; or

 (c) an amount paid to a person by way of a youth training allowance that is a debt due to the Commonwealth under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990.

Sections 281 and 285 provide for debt recovery by deductions in the following situations:

 (a) section 281—debt recovery from person who incurred the debt;

 (b) section 285—debt recovery by consent from person other than debtor.

Method of making deduction

 (1) Subject to subsection (2), each of the following debts or overpayments (whether, in the case of paragraphs (b) to (e), incurred or arising before or after the commencement of this Part):

 (a) a debt under this Part;

 (b) a debt referred to in paragraph 274(1)(b);

 (c) an overpayment arising under an Act or scheme referred to in subsection 274(2); or

 (d) a debt incurred under an Act or scheme for failing to repay part or all of a debt referred to in paragraph (b) or an overpayment referred to in paragraph (c);

 (e) a debt under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990;

is to be deducted from a person’s youth training allowance in the following way:

Method statement

Step 1.  Take the amount, decided under subsection (2), by which each payment of the person’s youth training allowance is to be reduced

Step 2.  Each payment of the person’s youth training allowance is to be reduced by that amount, until the sum of those amounts is equal to the debt or overpayment.

Secretary to decide amount of reduction

 (2) The Secretary is to decide in each case the amount by which each payment of the person’s youth training allowance is to be reduced, and may vary the amount from time to time.

Overpayment must be deducted

 (3) Subject to subsections (4) to (8), the debt or overpayment must be deducted unless:

 (a) the Secretary takes action under Subdivision D (write off and waiver) in relation to the amount; or

 (b) the amount is recovered by the Commonwealth under another provision of this Division.

Limitation period generally

 (4) Subject to subsections (5), (6), (7) and (8), action under this section for the recovery of a debt or overpayment is not to be begun after the end of the period of 6 years starting on the day on which the debt or overpayment arose.

Limitation period for certain debts

 (5) If the debt arose under section 266 of this Act (debt due to contravention of this Part) or under section 1224 of the Social Security Act, action under this section for the recovery of the debt may be begun at any time within the period of 6 years starting on the first day on which an officer became aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

Note 1: The time limit in subsection (5) also applies to action for recovery against a person who is liable because of section 268 for a debt that arises under section 266.

Note 2: For officer see subsection 58(1).

Amount owing paid

 (6) If:

 (a) subsection (4) or (5) applies so that action under this section for the recovery of a debt or overpayment must be begun within a particular period; and

 (b) within that period part of the amount owing is paid;

action under this section for the recovery of the balance of the debt or overpayment may be begun within the period of 6 years starting on the day of payment.

Debt acknowledged

 (7) If:

 (a) subsection (4) or (5) applies so that action under this section for the recovery of a debt or overpayment must be begun within a particular period; and

 (b) within that period, the person who owes the amount acknowledges that he or she owes it;

action under this section for the recovery of the debt or overpayment may be begun within the period of 6 years starting on the day of acknowledgment.

Certain actions, review, activity occurring

 (8) If:

 (a) subsection (4) or (5) applies so that action under this section for the recovery of a debt or overpayment must be begun within a particular period; and

 (b) within that period:

 (i) action is taken under this section or section 282 (legal proceedings) or 283 (garnishee notice) for the recovery of the debt or overpayment; or

 (ii) a review of a file relating to action for the recovery of the debt or overpayment occurs; or

 (iii) other internal activity in the Department of Social Security relating to action for the recovery of the debt or overpayment occurs;

action under this section for the recovery of the debt or overpayment may be begun within the period of 6 years after the end of the activity or action referred to in paragraph (b).

Debt recoverable in court of competent jurisdiction

 (1) If a debt is recoverable by the Commonwealth by means of legal proceedings under Subdivision B, the debt is recoverable by the Commonwealth in a court of competent jurisdiction.

Time limit of 6 years

 (2) Subject to subsection (3), (4), (5) or (6), legal proceedings for the recovery of the debt are not to be begun after the end of the period of 6 years starting on the day on which the debt arose.

Debt due to contravention of Part

 (3) If the debt arises under section 266 (debt due to contravention of Part), legal proceedings for the recovery of the debt may be begun at any time within the period of 6 years starting on the first day on which an officer became aware, or could reasonably be expected to have become aware, of the circumstances giving rise to the debt.

Note 1: For officer see subsection 58(1).

Note 2: The time limit in subsection (3) also applies to legal proceedings for recovery against a person who is liable because of section 268 for a debt that arises under section 266.

Amount owing if paid

 (4) If:

 (a) subsection (2) or (3) applies so that legal proceedings for the recovery of a debt must be begun within a particular period; and

 (b) within that period part of the amount owing is paid;

legal proceedings for the recovery of the balance of the debt may be begun within the period of 6 years starting on the day of payment.

Debt acknowledged

 (5) If:

 (a) subsection (2) or (3) applies so that legal proceedings for the recovery of a debt must be begun within a particular period; and

 (b) within that period, the person who owes the amount acknowledges that he or she owes it;

legal proceedings for the recovery of the debt may be begun within the period of 6 years starting on the day of acknowledgment.

Action taken, review or other activity occurs

 (6) If:

 (a) subsection (2) or (3) applies so that action under this section for the recovery of a debt must be begun within a particular period; and

 (b) within that period:

 (i) action is taken under this section or section 281 (deductions) or 283 (garnishee notice) for the recovery of the debt; or

 (ii) a review of a file relating to action for the recovery of the debt occurs; or

 (iii) other internal activity in the Department of Social Security relating to action for the recovery of the debt occurs;

action under this section for the recovery of the debt may be begun within the period of 6 years after the end of the activity or action referred to in paragraph (b).

Secretary may give notice

 (1) If a debt is recoverable from a person (the debtor) by the Commonwealth under section 279A, the Secretary may by written notice given to another person:

 (a) by whom any money is due or accruing, or may become due, to the debtor; or

 (b) who holds or may later hold money for or on account of the debtor; or

 (c) who holds or may later hold money on account of some other person for payment to the debtor; or

 (d) who has authority from some other person to pay money to the debtor;

require the person to whom the notice is given to pay to the Commonwealth:

 (e) an amount stated in the notice that is not more than the amount of the debt or the amount of the money referred to in paragraph (d) that applies; or

 (f) an amount stated in the notice out of each payment that the person becomes liable from time to time to make to the debtor until that debt is satisfied; or

 (g) a percentage stated in the notice of each payment that the person becomes liable from time to time to make to the debtor until that debt is satisfied.

Time for making payment

 (2) The time for making a payment in compliance with a notice under subsection (1) is the time stated in the notice, but the time so stated must not be a time before the money concerned becomes due or is held or before the end of the period of 14 days after the notice is given.

Failure to comply with notice

 (3) A person must comply with a notice under subsection (1) to the extent that the person is capable of doing so.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Note 2: See also section 279 (consequence of failure to comply with notice under this section).

Copy of notice to be given to debtor

 (4) If the Secretary gives a notice to a person under subsection (1), the Secretary must give a copy of the notice to the debtor.

Payment under debtor’s authority

 (5) A person who makes a payment to the Commonwealth in compliance with a notice under subsection (1) is taken to have made the payment under the authority of the debtor and of any other person concerned.

Amount paid by another person

 (6) If:

 (a) a notice is given to a person under subsection (1) in respect of a debt due; and

 (b) an amount is paid by another person in reduction or in satisfaction of the debt;

the Secretary must notify the first-mentioned person accordingly, and the amount stated in the notice is to be taken to be reduced by the amount so paid.

Fulfilment of condition

 (7) If, apart from this subsection, money is not due or repayable on demand to a person unless a condition is fulfilled, the money is taken, for the purposes of this section, to be due or repayable on demand, as the case may be, even though the condition has not been fulfilled.

Limitation period generally

 (8) Subject to subsections (9), (10), (11) and (12), action under this section for the recovery of a debt is not to be begun after the end of the period of 6 years starting on the day on which the debt arose.

Limitation for certain periods

 (9) If the debt arose under section 266 (debt due to contravention of this Part), action under this section for the recovery of the debt may be begun at any time within the period of 6 years starting on the first day on which an officer became aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

Note 1: For officer see subsection 58(1).

Note 2: The time limit in subsection (9) also applies to action for recovery against a person who is liable because of section 268 for a debt that arises under section 266.

Amount owing paid

 (10) If:

 (a) subsection (8) or (9) applies so that action under this section for the recovery of a debt must be begun within a particular period; and

 (b) within that period part of the amount owing is paid;

action under this section for the recovery of the balance of the debt may be begun within the period of 6 years starting on the day of payment.

Debt acknowledged

 (11) If:

 (a) subsection (8) or (9) applies so that action under this section for the recovery of a debt must be begun within a particular period; and

 (b) within that period, the person who owes the amount acknowledges that he or she owes it;

action under this section for the recovery of the debt may be begun within the period of 6 years starting on the day of acknowledgment.

Certain actions, review, activity occurred

 (12) If:

 (a) subsection (8) or (9) applies so that action under this section for the recovery of a debt must be begun within a particular period; and

 (b) within that period:

 (i) action is taken under this section, section 281 (deductions) or 282 (legal proceedings) for the recovery of the debt; or

 (ii) a review of a file relating to action for the recovery of the debt occurs; or

  (iii) other internal activity in the Department of Social Security relating to action for the recovery of the debt occurs;

action under this section for the recovery of the debt may be begun within the period of 6 years after the end of the activity or action referred to in paragraph (b).

Application

 (13) This section applies to money in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.

Meaning of person

 (14)  In this section:

person includes:

 (a) the Commonwealth; and

 (b) a State; and

 (c) a Territory; and

 (d) any authority of the Commonwealth or of a State or Territory.

Payment by instalment

 (1) If a debt is recoverable by the Commonwealth under Subdivision B, the Secretary may, on behalf of the Commonwealth, decide to allow a person to pay the debt in one or more instalments.

When decision takes effect

 (2) A decision made under subsection (1) takes effect:

 (a) if no day is stated in the decision—on the day on which the decision is made; or

 (b) if a day is stated in the decision—on the day so stated (whether that day is before, after or on the day on which the decision was made).

Note: Overpayments and debts referred to in section 274 are not debts for the purposes of Subdivision B.

Secretary may deduct amount from allowance

 (1) If:

 (a) a person (the debtor) has, whether before or after the commencement of this section, incurred a debt under this Act, the Social Security Act, the Data-matching Program (Assistance and Tax) Act 1990, the Social Security Act 1947 or the Farm Household Support Act 1992; and

 (b) another person (the consenting person) is receiving a youth training allowance; and

 (c) for the purpose of the recovery of the debt, the consenting person consents to the deduction of an amount from the consenting person’s youth training allowance;

the Secretary may deduct the amount from the consenting person’s youth training allowance.

Reduction of debt

 (2) The debtor’s debt is reduced by an amount equal to the amount deducted from the consenting person’s youth training allowance.

Revocation of consent

 (3) The consenting person may revoke the consent at any time.

In this Subdivision, unless the contrary intention appears:

debt means a debt recoverable by the Commonwealth under Subdivision B.

Note: Overpayments and debts referred to in section 274 are not debts for the purposes of Subdivision B.

Writing off debts

 (1) Subject to subsection (2), the Secretary may, on behalf of the Commonwealth, decide to write off a debt, for a stated period or otherwise.

Limits on Secretary’s power to write off debts

 (2) The Secretary may decide to write off a debt under subsection (1) if, and only if:

 (a) the debt is irrecoverable at law; or

 (b) the debtor has no capacity to repay the debt; or

 (c) the debtor’s whereabouts are unknown after all reasonable efforts have been made to locate the debtor; or

 (d) the debtor is not receiving a youth training allowance under this Act and it is not cost effective for the Commonwealth to take action to recover the debt.

Debts irrecoverable at law

 (2A) For the purposes of paragraph (2)(a), a debt is taken to be irrecoverable at law if, and only if:

 (a) the debt cannot be recovered by means of deductions from a person’s youth training allowance, or legal proceedings, or garnishee notice, because the relevant 6 year period mentioned in section 281, 282 or 283 has elapsed; or

 (b) there is no proof of the debt capable of sustaining legal proceedings for its recovery; or

 (c) the debtor is discharged from bankruptcy and the debt was incurred before the discharge and was not incurred by fraud; or

 (d) the debtor has died leaving no estate or insufficient funds in the debtor’s estate to repay the debt.

Capacity to repay a debt

 (2B) For the purposes of paragraph (2)(b), if a debt is recoverable by means of deductions from a person’s youth training allowance, the person is taken to have a capacity to repay the debt unless recovery by those means would cause the person severe financial hardship.

When decision takes effect

 (3) A decision made under subsection (1) takes effect:

 (a) if no day is stated in the decision—on the day on which the decision is made; or

 (b) if a day is stated in the decision—on the day so stated (whether that day is before, after or on the day on which the decision is made).

 (4) Nothing in this section prevents anything being done at any time to recover a debt that has been written off under this section.288  Power to waive Commonwealth’s right to recover debt

Secretary’s limited power to waive

 (1) On behalf of the Commonwealth, the Secretary may waive the Commonwealth’s right to recover the whole or a part of a debt from a debtor only in the circumstances described in section 289, 290, 290A, 290B or 290C.

When waiver takes effect

 (2) A waiver takes effect:

 (a) on the day specified in the waiver (whether that day is before, after or on the day on which the decision to waive is made); or

 (b) if the waiver does not specify when it takes effect—on the day on which the decision to waive is made.

Note: If the Secretary waives the Commonwealth’s right to recover all or part of a debt, the waiver is a permanent bar to recovery of that debt or that part of the debt—that debt or that part of the debt effectively ceases to exist.

Administrative error

 (1) Subject to subsection (1A), the Secretary must waive the right to recover the proportion of a debt that is attributable solely to an administrative error made by the Commonwealth if the debtor received in good faith the payment or payments that gave rise to that proportion of the debt.

Note: Subsection (1) does not allow waiver of part of a debt that was caused partly by administrative error and partly by one or more other factors (such as error by the debtor).

 (1A) Subsection (1) only applies if:

 (a) the debt is not raised within a period of 6 weeks from the first payment that caused the debt; or

 (b) if the debt arose because a person has complied with a notification obligation, the debt is not raised within a period of 6 weeks from the end of the notification period;

whichever is the later.

Underestimating value of property

 (2) If:

 (a) a debt arose because the debtor, the debtor’s partner, or the debtor’s parent or parents underestimated the value of particular property; and

 (b) the estimate was made in good faith; and

 (c) the value of the property was not able to be easily determined when the estimate was made;

the Secretary must waive the right to recover the proportion of the debt attributable to the underestimate.

Proportion of a debt

 (3) For the purposes of this section, a proportion of a debt may be 100% of the debt.

 (1) If:

 (a) a debtor has been convicted of an offence that gave rise to a proportion of a debt; and

 (b) the court indicated in sentencing the debtor that it imposed a longer custodial sentence on the debtor because he or she was unable or unwilling to pay the debt;

the Secretary must waive the right to recover the proportion of the debt that arose in connection with the offence.

 (2) For the purposes of this section, a proportion of a debt may be 100% of the debt.

 (1) The Secretary must waive the right to recover a debt if:

 (a) the debt is, or is likely to be, less than $200; and

 (b) it is not cost effective for the Commonwealth to take action to recover the debt.

 (2) Subsection (1) does not apply if the debt is at least $50 and could be recovered by deductions under section 281 from the debtor’s youth training allowance.

Settlement of civil action

 (1) If the Commonwealth has agreed to settle a civil action against a debtor for recovery of a debt for less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.

Settlement of proceedings before the Administrative Appeals Tribunal

 (2) If the Secretary has agreed to settle proceedings before the Administrative Appeals Tribunal relating to recovery of a debt on the basis that the debtor will pay less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.

Waiver where at least 80% of debt recovered and debtor cannot pay more

 (3) If:

 (a) the Commonwealth has recovered at least 80% of the original value of a debt from a debtor; and

 (b) the Commonwealth and the debtor agree that the recovery is in full satisfaction for the whole of the debt; and

 (c) the debtor cannot repay a greater proportion of the debt;

the Secretary must waive the remaining 20% or less of the value of the original debt.

Agreement for part-payment in satisfaction of outstanding debt

 (4) If the Secretary and a debtor agree that the debtor’s debt will be fully satisfied if the debtor pays the Commonwealth an agreed amount less than the amount of the debt outstanding at the time of the agreement (the unpaid amount), the Secretary must waive the right to recover the difference between the unpaid amount and the agreed amount.

Limits on agreement to accept part-payment in satisfaction of outstanding debt

 (5) The Secretary must not make an agreement described in subsection (4) unless the Secretary is satisfied that:

 (a) the debtor cannot repay more of the debt than the agreed amount; and

 (b) the agreed amount is at least the present value of the unpaid amount repaid in instalments whose amount and timing is determined by the Secretary; and

 (c) it would take at least a year to recover the unpaid amount under Subdivision C if subsection (4) did not apply.

Formula for working out present value of unpaid amount

 (6) For the purposes of subsection (5), the present value of the unpaid amount is the amount worked out in accordance with the following formula:

where:

annual repayment is the amount of the debt that the Secretary believes would be recovered under Subdivision C in a year if subsection (4) did not apply in relation to the debt.

interest is the annual rate of interest specified by the Minister in a written notice.

repayment period is the number of years needed to repay the unpaid amount if repayments equal to the annual repayment were made each year.

Example:

Facts:

Bill owed a debt of $35,000 to the Commonwealth. After repaying $5,000 (leaving an unpaid amount of $30,000), he offers to make an immediate payment of a further $20,000 in full satisfaction of the debt. The Secretary is satisfied that Bill cannot repay a larger amount of the debt than this. The Secretary believes that $1,500 of the debt would be recovered under Subdivision C in a year, at which rate it would take 20 years to repay the debt. The Minister has specified an interest rate of 5% a year for the purposes of subsection (6).

Application:

The Secretary can accept Bill’s offer and make an agreement with him as described in subsection (4), because the $20,000 is more than the present value of $30,000 repaid over 20 years at a 5% interest rate (which is $18,693.33 = ($1,500 ÷ 0.05) (1 — (1 ÷ (1 + 0.05)20))). If the Secretary makes the agreement, the Secretary must waive $10,000 of the debt (the difference between the unpaid amount of $30,000 and the agreed amount of $20,000).

Notice is a disallowable instrument

 (7) A notice described in the definition of interest in subsection (6) is a disallowable instrument.

The Secretary may waive the right to recover all or part of a debt if the Secretary is satisfied that:

 (a) the debt did not result wholly or partly from the debtor or another person knowingly:

 (i) making a false statement or a false representation; or

 (ii) failing or omitting to comply with a provision of this Act; and

 (b) there are special circumstances (other than financial hardship alone) that make it desirable to waive; and

 (c) it is more appropriate to waive than to write off the debt or part of the debt.

Note: Section 287 allows the Secretary to write off a debt on behalf of the Commonwealth.

Secretary determines interest payable

 (1) The Secretary may, in writing, determine that interest payable by a person in respect of a certain period under subsection 275(2) or 276(2) is not payable.

Time of determination

 (2) The determination may relate to a period before the making of the determination.

Conditions

 (3) The determination may be expressed to be subject to the person complying with stated conditions.

Notification

 (4) The Secretary must give a copy of the determination to the person as soon as practicable after making the determination.

Validity

 (5) A failure to comply with subsection (4) does not invalidate the determination.

Contravention of conditions

 (6) If:

 (a) the determination is expressed to be subject to the person complying with stated conditions; and

 (b) the person contravenes a condition;

the determination ceases to have effect.

Cancellation or variation

 (7) The Secretary may cancel or vary the determination by written notice to the person.

This Subdivision extends to:

 (a) acts, omissions, matters and things outside Australia, whether or not in a foreign country; and

 (b) all people, irrespective of their nationality, who are making or who have made, a claim for a youth training allowance; and

 (c) all people, irrespective of their nationality, who are receiving or have received, a payment of a youth training allowance.

Note: This Subdivision does not contain an exhaustive list of all offences against this Part.

Person must not make false or misleading statement

 (1) A person must not knowingly or recklessly make a false or misleading statement in connection with, or in support of, the person’s, or any other person’s, claim for a youth training allowance.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Spoken or written statement

 (2) The statement referred to in subsection (1) may be a spoken statement or a written statement.

Person must not make false or misleading statement

 (1) A person must not knowingly or recklessly make a false or misleading statement to:

 (a) deceive an officer doing duty in relation to this Part; or

 (b) affect the rate of a youth training allowance.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Spoken or written statement

 (2) The statement referred to in subsection (1) may be a spoken statement or a written statement.

Offence

 (1) A person must not knowingly or recklessly:

 (a) make a statement to an officer that is false in any particular; or

 (b) present a document to an officer that is false in any particular.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Spoken or written statement

 (2) The statement referred to in subsection (1) may be a spoken statement or a written statement.

A person must not knowingly obtain:

 (a) payment of a youth training allowance; or

 (b) payment of an instalment of a youth training allowance;

that is:

 (c) not payable at all; or

 (d) only payable in part.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

A person must not knowingly obtain:

 (a) payment of a youth training allowance; or

 (b) payment of an instalment of a youth training allowance;

by means of:

 (c) a false or misleading statement made knowingly or recklessly; or

 (d) pretending to be someone else;

 (e) a fraudulent device.

Penalty: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

State of mind of corporation

 (1) If, in proceedings for an offence against this Part, it is necessary to prove the state of mind of a body corporate in relation to particular conduct, it is enough to show:

 (a) that the conduct was engaged in by a director, servant or agent of the body corporate within the scope of his or her actual or apparent authority; and

 (b) that the director, servant or agent had the state of mind.

Conduct of directors, servants or agents of corporation

 (2) Any conduct engaged in on behalf of a body corporate by a director, servant or agent of the body corporate within the scope of his or her actual or apparent authority is taken, for the purposes of a prosecution for an offence against this Part, to have been engaged in also by the body corporate unless it proves that it took reasonable precautions and exercised due diligence to avoid the conduct.

State of mind of individual

 (3) If, in proceedings for an offence against this Part, it is necessary to prove the state of mind of an individual in relation to particular conduct, it is enough to show:

 (a) that the conduct was engaged in by a servant or agent of the individual within the scope of his or her actual or apparent authority; and

 (b) that the servant or agent had the state of mind.

Conduct of servants or agents of individual

 (4) Any conduct engaged in on behalf of an individual by a servant or agent of the individual within the scope of his or her actual or apparent authority is taken, for the purposes of a prosecution for an offence against this Part, to have been engaged in also by the individual unless he or she proves that he or she took reasonable precautions and exercised due diligence to avoid the conduct.

Individual not subject to imprisonment for vicarious liability

 (5) If:

 (a) an individual is convicted of an offence; and

 (b) he or she would not have been convicted of the offence if subsections (3) and (4) had not been enacted;

he or she is not liable to be punished by imprisonment for that offence.

Meaning of state of mind

 (6) A reference in this section to the state of mind of a person includes a reference to:

 (a) the knowledge, intention, opinion, belief or purpose of the person; and

 (b) the person’s reasons for the intention, opinion, belief or purpose.

Meaning of director

 (7) A reference in this section to a director of a body corporate includes a reference to a constituent member of a body corporate incorporated for a public purpose by a law of the Commonwealth, a State or a Territory.

Meaning of engaging in conduct

 (8) A reference in this section to engaging in conduct includes a reference to failing or refusing to engage in conduct.

Meaning of offence against this Part

 (9) In this section:

offence against this Part includes an offence against:

 (a) section 6, 7 or 7A of the Crimes Act 1914; or

 (b) subsection 86(1) of that Act because of paragraph (a) of that subsection;

that relates to an offence against this Part.

The Secretary to the Department of Social Security must, in accordance with section 218 of the Income Tax Assessment Act, for the purpose of enabling the collection of tax that is, or may become, payable by a person who receives a youth training allowance:

 (a) make deductions from the instalments of the youth training allowance payable to a person; and

 (b) pay the amount deducted to the Commissioner of Taxation.

Judicial notice of certain signatures

 (1) All courts must take judicial notice of a signature that purports to appear on an official document if the signature is of a person who:

 (a) holds or has held the office of Secretary; or

 (b) is or was an officer.

Judicial notice that person holds office

 (2) If the signature of a person referred to in subsection (1) purports to appear on an official document, all courts must take judicial notice of the fact that the person holds, or has held, the office referred to in paragraph (1)(a) or is or was an officer, as the case requires.

Certain documents are prima facie evidence

 (1) If the signature of a person who:

 (a) holds or has held the office of Secretary; or

 (b) is or was an officer;

purports to appear on an official document, the document must be received in all courts as prima facie evidence of the facts and statements contained in it.

Prima facie evidence that person receiving payment

 (2) A written statement signed by a person referred to in subsection (1) that a person is or was receiving payment of youth training allowance on a certain date at a certain rate must be received in all courts as prima facie evidence that the person is or was receiving the payment of youth training allowance on the date and at the rate stated.

Unless otherwise stated, this Division applies to:

 (a) all decisions of an officer under this Act relating to the AUSTUDY scheme; or

 (b) all decisions of an officer under this Act relating to the Student Financial Supplement Scheme; or

 (c) all decisions of an officer under this Act relating to the recovery of amounts paid under a current or former special educational assistance scheme; or

 (d) all decisions of an officer under this Act relating to the youth training allowance (including a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force).

Note: For officer see subsection 3(1).

Decisions that Secretary may review

 (1) The Secretary may review a decision to which this Division applies if satisfied that there is sufficient reason to review the decision.

Note:  If a payment made under Part 8 is stopped or a rate of payment is varied because of the operation of a computer program there will still be a decision of an officer for review purposes. Section 159 provides that there is a decision of the Secretary if Part 8 operates automatically to terminate or reduce the rate of a youth training allowance. If the Secretary could have made a determination to suspend or cancel, or increase or reduce the rate of, a youth training allowance, section 164 provides that the determination is taken to have been made.

Decisions that are not reviewed

 (2) Subsection (1) does not apply to a decision made by the Secretary:

 (a) under paragraph 58(2)(b) (approval of registration category); or

 (b) under section 59 (approval of voluntary organisations); or

 (c) approving a course or labour market program; or

 (d) exempting a person from the application of a provision; or

 (e) relating to the Secretary’s power under section 326A to settle proceedings before the Administrative Appeals Tribunal.

Applications to Tribunals

 (3) The Secretary may review a decision even if an application has been made to the Social Security Appeals Tribunal or the Administrative Appeals Tribunal for review of the decision.

Secretary may affirm, vary or substitute

 (4) The Secretary may:

 (a) affirm the decision; or

 (b) vary the decision; or

 (c) set the decision aside and substitute a new decision.

Notice to National Convener

 (5) If:

 (a) the Secretary makes a decision under subsection (4); and

 (b) when the Secretary makes that decision, a person has applied to the Social Security Appeals Tribunal for review of the decision that was reviewed by the Secretary;

the Secretary must give the National Convener written notice of the Secretary’s decision under subsection (4).

Notice to AAT Registrar

 (6) If:

 (a) the Secretary makes a decision under subsection (4); and

 (b) when the Secretary makes that decision, a person has applied to the Administrative Appeals Tribunal for review of the decision that was reviewed by the Secretary;

the Secretary must give the Registrar of the Administrative Appeals Tribunal written notice of the Secretary’s decision under subsection (4).

Event taken to have occurred

 (7) If:

 (a) the Secretary sets a decision aside under subsection (4); and

 (b) the Secretary is satisfied that an event that did not occur would have occurred if the decision had not been made;

the Secretary may, if satisfied that it is reasonable to do so, treat the event as having occurred for the purposes of this Act.

People affected may apply for review

 (1) A person affected by a decision to which this Division applies may apply to the Secretary for review of the decision.

Note: If a payment made under Part 8 is stopped or a rate of payment is varied because of the operation of a computer program there will still be a decision of an officer for review purposes. Section 159 provides that there is a decision of the Secretary if Part 8 operates automatically to terminate or reduce the rate of a youth training allowance. If the Secretary could have made a determination to suspend or cancel, or increase or reduce the rate of, a youth training allowance, section 164 provides that the determination is taken to have been made.

Period within which application for internal review to be sought

 (2) If a decision referred to in subsection (1) is a decision relating to a matter other than youth training allowance, the application under subsection (1) must be made within 3 months, or within such longer period as the Secretary, in special circumstances, allows, after the making of the decision.

No application to decisions by Secretary

 (3) Subsection (1) does not apply to a decision made by the Secretary himself or herself.

Review following application

 (4) If a person applies under subsection (1) for review of a decision, the Secretary or an authorised review officer may review the decision under section 306.

Application taken to have been made

 (5) If:

 (a) a person who may apply to the Secretary for review of a decision under subsection (1) has not so applied; and

 (b) the person applies to the Social Security Appeals Tribunal for review of the decision;

the person is, if the application to the Tribunal is made within any applicable time limit under subsection (2), taken to apply to the Secretary for review of the decision under subsection (1) on the day on which the person applies to the Social Security Appeals Tribunal.

Declaration that payment to continue

 (1) If:

 (a) a decision to which this Division applies is an adverse decision; and

 (b) the adverse decision depends on:

 (i) the exercise of a discretion by a person; or

 (ii) the holding of an opinion by a person; and

 (c) a person applies to the Secretary under subsection 304(1) for review of the adverse decision;

the Secretary may, by writing, declare that payment of benefit under the AUSTUDY scheme, Financial Supplement, or youth training allowance, to which the decision relates is to continue, pending the determination of the review, as if the adverse decision had not been made.

Application of Act

 (2) While a declaration under subsection (1) is in force in relation to the adverse decision, this Act (other than this Part) applies as if the adverse decision had not been made.

Start and cessation of declaration

 (3) A declaration under subsection (1) in relation to an adverse decision:

 (a) starts to have effect on the day on which the declaration is made or on the earlier day (if any) stated in the declaration; and

 (b) stops having effect if:

 (i) the application to the Secretary for review of the adverse decision is withdrawn; or

 (ii) the review of the adverse decision is determined by the Secretary; or

 (iii) the declaration is revoked by the Secretary.

Holding of an opinion

 (4) A reference in subsection (1) to a person’s holding of an opinion is a reference to the person’s holding the opinion whether or not this Act expressly requires the opinion to be held before making the decision concerned.

Meaning of adverse decision

 (5) In this section:

adverse decision, means:

 (a) in relation to the AUSTUDY scheme—a decision:

 (i) to amend a determination of benefit under the AUSTUDY scheme by reducing the rate of benefit payable; or

 (ii) to replace a determination of benefit under the scheme by substituting a new determination of a lesser rate; or

 (b) in relation to Financial Supplement—a decision under section 12R or 12T to stop the payment of Financial Supplement; or

 (c) in relation to youth training allowance:

 (i) a decision to cancel or suspend the allowance; or

 (ii) a decision to reduce the rate of the allowance.

Secretary or review officer may affirm, vary or substitute

 (1) If an application for review of a decision is made under subsection 304(1), the Secretary or an authorised review officer must:

 (a) affirm the decision; or

 (b) vary the decision; or

 (c) set the decision aside and substitute a new decision.

Notice to applicant

 (2) If a person makes a decision under subsection (1), the person must give the applicant written notice of the decision.

Note: Meaning of given—sections 28A and 29 of the Acts Interpretation Act 1901 provide that a notice is given:

(a) to a natural person if the notice is:

          delivered personally; or

          left at the last known address of the person; or

          sent by prepaid post to the last known address of the person; and

(b) to a body corporate if the notice is left at, or sent by prepaid post to, the head office or a registered office or a principal office of the body corporate.

Event taken to have occurred

 (3) If:

 (a) a person sets a decision aside under subsection (1); and

 (b) the Secretary is satisfied that an event that did not occur would have occurred if the decision had not been made;

the Secretary may, if satisfied that it is reasonable to do so, treat the event as having occurred for the purposes of this Act.

If 2 determinations made

 (1) If:

 (a) the Secretary makes a determination (the first determination) that:

 (i) a youth training allowance is granted or is payable to a person; or

 (ii) a youth training allowance is payable at a particular rate to a person; and

 (b) the Secretary makes a determination (the second determination):

 (i) to cancel the allowance; or

 (ii) to reduce the rate at which the allowance is payable; and

 (c) notice of the second determination is given to the person; and

 (d) the person applies to the Secretary under section 304 for review of the second determination; and

 (e) the application is made more than 13 weeks after the notice is given; and

 (f) a decision (the review decision) is made by the Secretary, an authorised review officer, the Social Security Appeals Tribunal or the Administrative Appeals Tribunal; and

 (g) the review decision, or the effect of the review decision, is:

 (i) to set aside the second determination; or

 (ii) to affirm a decision setting aside the second determination;

the following provisions have effect:

 (h) the second determination does not become void from the time when it was made;

 (i) the mere setting aside of the second determination does not of itself revive the first determination.

Application for review taken to have been made

 (2) For the purposes of this section, a person is taken to have applied for review of a determination (the primary determination) if:

 (a) the person applies for review of another determination or decision; and

 (b) an examination of the primary determination is necessary to resolve the issues raised by the review of the other determination or decision.

Note 1: For the meaning of given in relation to a notice of a decision see section 341.

Note 2: A notice is taken to have been given to a person even if the Secretary is satisfied that the person did not actually receive the notice (see subsection 23(12) of the Social Security Act).

Note 3:  This section does not apply to a determination by the Secretary to suspend a youth training allowance. If the Secretary’s determination to suspend a youth training allowance is set aside on review, the recipient is placed in the position in which he or she would have been if the determination to suspend had not been made.

Contents of notice

 (1) If a person gives the applicant notice under subsection 306(2), the notice must include:

 (a) a statement to the effect that the applicant may, subject to this Act, apply to the Social Security Appeals Tribunal for review of the person’s decision; and

 (b) a statement about the person’s decision that:

 (i) sets out the reasons for the decision; and

 (ii) sets out the findings by the person on material questions of fact; and

 (iii) refers to the evidence or other material on which those findings were based; and

 (c) a statement to the effect that, if the person is dissatisfied with the Social Security Appeals Tribunal’s decision, application may, subject to the Administrative Appeals Tribunal Act 1975, be made to the Administrative Appeals Tribunal for review of the Social Security Appeals Tribunal’s decision.

Validity not affected

 (2) A contravention of subsection (1) in relation to a decision does not affect the validity of the decision.

Unless otherwise stated, this Division applies to:

 (a) all decisions of an officer under this Act relating to the AUSTUDY scheme; or

 (b) all decisions of an officer under this Act relating to the Student Financial Supplement Scheme; or

 (c) all decisions of an officer under this Act relating to the recovery of amounts paid under a current or former special educational assistance scheme; or

 (d) all decisions of an officer under this Act relating to the youth training allowance (including a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force).

Note:  For officer see subsection 3(1).

The Social Security Appeals Tribunal must, in carrying out its functions under this Act, pursue the objective of providing a mechanism of review that is fair, just, economical, informal and quick.

Note:  For establishment and membership of the SSAT see Division 1 of Part 7.3 of the Social Security Act.

People who may apply for review

 (1) Subject to section 313, if:

 (a) a decision has been reviewed by the Secretary or an authorised review officer under section 306; and

 (b) the decision has been affirmed, varied or set aside;

a person whose interests are affected by the decision of the Secretary or the authorised review officer may apply to the Social Security Appeals Tribunal for review of that decision.

Note:  If a payment made under Part 8 is stopped or a rate of payment is varied because of the operation of a computer program there will still be a decision of an officer for review purposes. Section 159 provides that there is a decision of the Secretary if Part 8 operates automatically to terminate or reduce the rate of a youth training allowance. If the Secretary could have made a determination to suspend or cancel, or increase or reduce the rate of, a youth training allowance, section 164 provides that the determination is taken to have been made.

Decision made by Secretary or review officer

 (2) For the purposes of subsection (1), the decision made by the Secretary or the authorised review officer is taken to be:

 (a) if the Secretary or the authorised review officer affirms a decision—the decision as affirmed; and

 (b) if the Secretary or the authorised review officer varies a decision—the decision as varied; and

 (c) if the Secretary or the authorised review officer sets a decision aside and substitutes a new decision—the new decision.

Period within which application for review by SSAT to be sought

 (3) If the decision last referred to in subsection (1) is a decision affirming, varying or setting aside a decision relating to a matter other than a youth training allowance, the application under subsection (1) to the Social Security Appeals Tribunal for review of the decision as affirmed, as varied or as substituted for the decision set aside must be made within 3 months, or within such longer period as the Secretary, in special circumstances, allows after the original decision was affirmed, varied or set aside by the Secretary or an authorised review officer.

The Social Security Appeals Tribunal may only review a decision under section 80 (to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force) if the application is expressed to be an application for review of that decision.

The Social Security Appeals Tribunal cannot review a decision:

 (a) requesting information or evidence about a student’s eligibility for benefit under the AUSTUDY scheme; or

 (b) under section 126 or 127 (form and place of lodgment of claim); or

 (c) to give a recipient notification notice; or

 (d) to give a recipient statement notice; or

 (e) under section 343, 345 or 346 (notice requiring information from any person); or

 (f) under section 305 or 314 (continuation of payment pending review of adverse decision); or

 (g) under section 299 (deduction of amounts from allowance payments for tax purposes).

Note: For recipient notification notice and recipient statement notice see section 58.

Secretary may declare payment to continue

 (1) If:

 (a) a decision to which this Division applies is an adverse decision; and

 (b) the adverse decision depends on:

 (i) the exercise of a discretion by a person; or

 (ii) the holding of an opinion by a person; and

 (c) a person applies to the Social Security Appeals Tribunal under subsection 311(1) for review of the adverse decision;

the Secretary may declare that payment of benefit under the AUSTUDY scheme, Financial Supplement or youth training allowance to which the decision relates is to continue, pending the determination of the review, as if the adverse decision had not been made.

Written declaration

 (2) A declaration under subsection (1) is to be in writing.

Act applies as if decision not made

 (3) While a declaration under subsection (1) is in force in relation to the adverse decision, this Act (other than this Part) applies as if the adverse decision had not been made.

Start and cessation of declaration

 (4) A declaration under subsection (1) in relation to an adverse decision:

 (a) starts to have effect on the day on which the declaration is made or on the earlier day (if any) stated in the declaration; and

 (b) stops having effect if:

 (i) the application to the Social Security Appeals Tribunal for review of the adverse decision is withdrawn; or

 (ii) the review of the adverse decision is determined by the Social Security Appeals Tribunal; or

 (iii) the declaration is revoked by the Secretary.

Holding of an opinion

 (5) A reference in subsection (1) to a person’s holding of an opinion is a reference to the person’s holding that opinion whether or not this Act expressly requires the opinion to be held before making the decision concerned.

Adverse decision

 (6) In this section:

adverse decision means:

 (a) in relation to the AUSTUDY scheme—a decision:

 (i) to amend a determination of benefit under the AUSTUDY scheme by reducing the rate of benefit payable; or

 (ii) to replace a determination of benefit under the scheme by substituting a new determination of a lesser rate; or

 (b) in relation to Financial Supplement—a decision under section 12R or 12T to stop the payment of Financial Supplement; or

 (c) in relation to youth training allowance:

 (i) a decision to cancel or suspend the allowance; or

 (ii) a decision to reduce the rate of the allowance.

Application

 (1) This section applies to a decision to give notice under section 81 because of a person’s failure to agree to terms of a Youth Training Activity Agreement proposed by the Commonwealth Employment Service (subparagraph 81(1)(b)(iii)).

Continuation of payment

 (2) If:

 (a) a person applies to the Social Security Appeals Tribunal under subsection 311(1) for review of a decision; and

 (b) the person makes the application within 14 days after being told of the decision;

the following provisions have effect:

 (c) payment of the youth training allowance is to be made pending the determination of the review, as if the Agreement had not been required;

 (d) if payment of the allowance had ceased for a period before the person applied for the review—in spite of section 167, arrears of allowance are payable to the person for the period;

 (e) this Act (other than this Part) applies as if the Agreement had not been required.

When payment stops

 (3) Subsection (2) ceases to have effect if:

 (a) the application for review is withdrawn; or

 (b) the review of the decision is determined.

Powers of SSAT

 (1) If a person applies to the Social Security Appeals Tribunal for review of a decision (other than a decision referred to in subsection (7)), the Tribunal must:

 (a) affirm the decision; or

 (b) vary the decision; or

 (c) set the decision aside; and

 (i) substitute a new decision; or

 (ii) send the matter back to the Secretary for reconsideration in accordance with any directions or recommendations of the Tribunal.

Note: This subsection is subject to section 1274 of the Social Security Act (which allows an applicant to withdraw the application) and 1275 of the Social Security Act (which allows the National Convener to dismiss an application for review in certain circumstances).

 (2) If the Social Security Appeals Tribunal sets a decision aside and substitutes for it:

 (a) a decision that a person is entitled to benefit under the AUSTUDY scheme and Financial Supplement; or

 (b) a decision that a person is entitled to Financial Supplement;

the Tribunal must:

 (c) assess the rate at which benefit under the AUSTUDY scheme and Financial Supplement, or Financial Supplement, is to be paid to the person; or

 (d) ask the Secretary to assess the rate at which benefit under the AUSTUDY scheme and Financial Supplement, or Financial Supplement, is to be paid to the person.

Procedure if decision substituted

 (3) If the Social Security Appeals Tribunal sets a decision aside and substitutes for it a decision that a person is entitled to a youth training allowance, the Tribunal must:

 (a) assess the rate at which the youth training allowance is to be paid to the person; or

 (b) ask the Secretary to assess the rate at which the youth training allowance is to be paid to the person.

Tribunal may exercise Secretary’s powers

 (4) Subject to subsection (5), the Social Security Appeals Tribunal may, for the purpose of reviewing a decision under this Act, exercise all the powers and discretions that are conferred by this Act on the Secretary.

Certain powers of Secretary not exercisable by Tribunal

 (5) The reference in subsection (4) to powers and discretions conferred by this Act does not include a reference to powers and discretions conferred by:

 (a) a provision dealing with the form and place of lodgment of a claim; or

 (b) a provision dealing with the manner of payment of benefit under the AUSTUDY scheme, Financial Supplement or youth training allowance; or

 (c) subsection 42(3) (notice requiring payment to the Commonwealth); or

 (d) section 283 (garnishee notice); or

 (e) a provision dealing with the giving of a notice requiring information from a person who receives a youth training allowance; or

 (f) sections 343 to 346 (notice requiring information from any person); or

 (g) section 305 or 314 (continuation of payment pending review of adverse decision); or

 (h) a provision dealing with the imposition of requirements before grant of a youth training allowance; or

 (i) a provision dealing with the deduction of amounts from a youth training allowance for tax purposes.

Event taken to have occurred

 (6) If:

 (a) the Social Security Appeals Tribunal sets a decision aside under subsection (1); and

 (b) the Secretary, or the Tribunal, is satisfied that an event that did not occur would have occurred if the decision had not been made;

the Secretary or the Tribunal (as the case may be) may, if satisfied that it is reasonable to do so, treat the event as having occurred for the purposes of this Division.

Application

 (7) This section does not apply to a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force.

If a person applies to the Social Security Appeals Tribunal for a review of a decision under section 80 to the extent that it relates to the terms of a Youth Training Activity Agreement that is in force, the Tribunal must:

 (a) affirm the decision; or

 (b) set aside the decision and send the matter back to the Secretary for reconsideration in accordance with any recommendations of the Tribunal.

General rule

 (1) Subject to subsections (2) and (3), a decision by the Social Security Appeals Tribunal comes into operation immediately on the giving of the decision.

Tribunal may nominate later date

 (2) The Tribunal may provide in a decision that the decision is not to come into operation until a later day stated in the decision and, if it does so, the decision comes into operation on that later day.

Decision varied or substituted

 (3) Subject to subsections (4) and (5), if the Tribunal:

 (a) varies the decision under review; or

 (b) sets aside the decision under review and substitutes a new decision for the decision under review;

the decision as varied or the new decision (as the case may be) has effect, or is taken to have had effect, on and from the day on which the decision under review has or had effect.

Rule where application more than 3 months after notice

 (4) If:

 (a) a person is given written notice of a decision to which this Division applies that relates to youth training allowance; and

 (b) the person applies to the Tribunal more than 3 months after the notice was given, for review of the decision; and

 (c) the Tribunal varies the decision or sets the decision aside and substitutes a new decision; and

 (d) the effect of the Tribunal’s decision is:

 (i) to grant the person’s claim for a youth training allowance; or

 (ii) to direct the making of a payment of youth training allowance to the person; or

 (iii) to increase the rate of the person’s youth training allowance;

subsection (3) applies as if references in that subsection to the day on which the decision under review had effect were references to the day on which the application was made to the Tribunal for review of the decision under review.

Note: Meaning of given—sections 28A and 29 of the Acts Interpretation Act 1901 provide that a notice is given:

(a) to a natural person if the notice is:

          delivered personally; or

          left at the last known address of the person; or

          sent by prepaid post to the last known address of the person; and

(b) to a body corporate if the notice is left at, or sent by prepaid post to, the head office or a registered office or a principal office of the body corporate.

Tribunal may vary rule under subsection (3)

 (5) The Tribunal may order:

 (a) that subsection (3) not apply to a decision to which this Division applies by the Tribunal on a review; and

 (b) that subsections (1) and (2) apply instead.

Application

 (6) This section does not apply to a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force.

Application

 (1) This section applies to a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force.

Decision of Tribunal applies immediately

 (2) Subject to subsection (3), a decision by the Social Security Appeals Tribunal in relation to a decision to which this section applies comes into operation immediately on the giving of the decision.

 Tribunal may nominate later date

 (3) The Social Security Appeals Tribunal may provide in a decision that the decision is not to come into operation until a later day stated in the decision and, if it does so, the decision comes into operation on that later day.

Methods of applying for review

 (1) A person may apply to the Social Security Appeals Tribunal for review of a decision by:

 (a) sending or delivering a written application to:

 (i) an office of the Tribunal; or

 (ii) an office of the Department; or

 (iii) in the case of a review of a decision relating to youth training allowance—an office of the Department of Social Security; or

 (b) going to an office of the Tribunal and making an oral application; or

 (c) telephoning an office of the Tribunal and making an oral application.

Written record of oral application

 (2) If a person makes an oral application under paragraph (1)(b) or (c), the person receiving the oral application must make a written record of the details of the oral application and note on the record the date on which the application is made.

Written record taken to be application

 (3) If a written record of an oral application is made under subsection (2), the written record is taken to be a written application by the applicant and to be delivered to an office of the Tribunal on the day on which the oral application is made.

Statement of reasons

 (4) An application may include a statement of the reasons for seeking a review of the decision.

Application for review of decision as varied

 (1) If an officer varies a decision after an application has been made to the Social Security Appeals Tribunal for review of the decision but before determination of the review, the application for review is to be treated as if it were an application for review of the decision as varied.

Application for review of substituted decision

 (2) If an officer sets a decision aside and substitutes a new decision after an application has been made to the Social Security Appeals Tribunal for review of the decision set aside but before determination of the review, the application for review is to be treated as if it were an application for review of the new decision.

Procedure if variation or substitution before determination

 (3) If:

 (a) a person applies to the Social Security Appeals Tribunal for a review of a decision; and

 (b) before determination of the review, an officer varies the decision or sets the decision aside and substitutes a new decision;

the person may either:

 (c) proceed with the application for review of the decision as varied or the new decision; or

 (d) withdraw the application under section 1274 of the Social Security Act.

Parties to review

 (1) The parties to a review by the Social Security Appeals Tribunal of a decision are:

 (a) the applicant; and

 (b) the Secretary; and

 (c) any other person who has been made a party to the review under subsection (5).

Meaning of Secretary in certain circumstances

 (2) For the purposes of subsection (1), if a decision is made on the basis of issues determined solely by officers of the Department of Social Security, the Secretary referred to in paragraph (1)(b) is the Secretary to that Department.

 Application to be made a party

 (3) If a person has applied under subsection 311(1) for review of a decision, any other person whose interests are affected by the decision may apply to the National Convener to be made a party to the review.

Written application

 (4) An application under subsection (3) must be in writing.

National Convener may make order

 (5) The National Convener may order that a person who has applied under subsection (3) be made a party to the review.

Note: For role of National Convener see section 1323 of the Social Security Act.

Unless otherwise stated, this Division applies to:

 (a) all decisions of an officer under this Act relating to the AUSTUDY scheme; or

 (b) all decisions of an officer under this Act relating to the Student Financial Supplement Scheme; or

 (c) all decisions of an officer under this Act relating to the recovery of amounts paid under a current or former special educational assistance scheme; or

 (d) all decisions of an officer under this Act relating to the youth training allowance (including a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force).

Note: For officer see subsection 3(1).

Application for review

 (1) If a decision has been reviewed by the Social Security Appeals Tribunal (the SSAT) and has been affirmed, varied or set aside, application may be made to the Administrative Appeals Tribunal for a review of the decision of the SSAT.

Which decision is to be reviewed

 (2) For the purposes of subsection (1), the decision made by the SSAT is taken to be:

 (a) if the SSAT affirms a decision—the decision as affirmed; and

 (b) if the SSAT varies a decision—the decision as varied; and

 (c) if the SSAT sets a decision aside and substitutes a new decision—the new decision; and

 (d) if the SSAT sets a decision aside and sends the matter back to the Secretary for reconsideration in accordance with any directions or recommendations of the SSAT—the directions or recommendations of the SSAT.

AAT Act requirements

 (3) Subsection (1) has effect subject to section 29 of the Administrative Appeals Tribunal Act 1975.

Note: Section 29 of the Administrative Appeals Tribunal Act 1975 sets out the manner in which an application of the AAT for review of a decision must be made.

Secretary may treat event as having occurred

 (4) If:

 (a) the Administrative Appeals Tribunal sets a decision aside; and

 (b) the Secretary is satisfied that an event that did not occur would have occurred if the decision had not been made;

the Secretary may, if satisfied that it is reasonable to do so, treat the event as having occurred for the purposes of this Division.

Review of decision as varied

 (1) If an officer varies a decision after an application has been made to the Administrative Appeals Tribunal for review of the decision but before the determination of the application for review, the application is to be treated as if it were an application for review of the decision as varied.

Review of new decision

 (2) If an officer sets a decision aside and substitutes a new decision after an application has been made to the Administrative Appeals Tribunal for review of the decision but before determination of the review, the application is to be treated as if it were an application for review of the new decision.

Person may proceed or withdraw

 (3) If:

 (a) a person applies to the Administrative Appeals Tribunal for review of a decision; and

 (b) before determination of the review, an officer varies the decision or sets the decision aside and substitutes a new decision;

the person may either:

 (c) proceed with the application for review of the decision as varied or the new decision; or

 (d) withdraw the application.

If a decision has been reviewed by the Social Security Appeals Tribunal and has been varied or set aside, the Administrative Appeals Tribunal Act 1975 applies to a review under section 324 of the Social Security Appeals Tribunal’s decision as if the Secretary to the Department of Social Security were, for the purposes of section 27 of that Act, a person whose interests are affected by the Social Security Appeals Tribunal’s decision.

Note: Section 27 of the Administrative Appeals Tribunal Act 1975 provides that, if an Act provides that an application may be made to the AAT for a review of a decision, the application may be made by or on behalf of any person whose interests are affected by the decision.

 (1) The Secretary may agree, with other parties to proceedings before the Administrative Appeals Tribunal that relate to recovering a debt, to settle the proceedings. The agreement must be in writing.

 (2) If the proceedings are settled and the Secretary gives the Administrative Appeals Tribunal a copy of the agreement to settle the proceedings, the application for review of the decision that was the subject of the proceedings is taken to have been dismissed.

This Division sets out the modifications of the Administrative Appeals Tribunal Act 1975 that need to be made for applications for review under section 324.

The Administrative Appeals Tribunal Act 1975 applies to an application under section 324 for review of a decision as if references in section 28 of that Act to the person who made the decision were references to the National Convener.

Note: Section 1281 of the Social Security Act requires the SSAT to give the parties to a review copies of a statement setting out reasons, findings on material questions of fact and a reference to the evidence or other material on which the findings were based. Section 28 of the Administrative Appeals Tribunal Act 1975 entitles an applicant for review by the AAT to ask the person who made the decision for a statement setting out the same matters. Subsection 28(4) of the Administrative Appeals Tribunal Act 1975 provides that an applicant for review is not entitled to a statement under that section if the matters referred to in section 1281 of the Social Security Act are set out in the decision itself or in a written statement given to the applicant.

The Administrative Appeals Tribunal Act 1975 applies to an application under section 324 for review of a decision as if the reference in subsection 29(11) of that Act to the person who made the decision were a reference to each party to a review by the Social Security Appeals Tribunal (other than a party making the application under section 324).

Note: Subsection 29(11) of the Administrative Appeals Tribunal Act 1975 requires notice of an application to the AAT for review of a decision to be given to the person who made the decision. The effect of this section is that any person who was a party to the review by the SSAT will be given notice of an application to the AAT for further review.

The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 324 as if the reference in paragraph 30(1)(b) of that Act to the person who made the decision were a reference to each person who was a party to the review by the Social Security Appeals Tribunal.

Note: Paragraph 30(1)(b) of the Administrative Appeals Tribunal Act 1975 provides that the person who made the decision under review is a party to the proceeding before the AAT for review of the decision. The effect of this section is that each person who was a party to the review by the SSAT is automatically made a party to an application to the AAT for further review.

Certain references in the AAT Act taken to be references to a Secretary

 (1) The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 324 as if references in section 37 of that Act to the person who made the decision that is the subject of an application for review by the Administrative Appeals Tribunal were:

 (a) if the decision was a decision other than a decision referred to in paragraph (b)—the Secretary; and

 (b) if the decision was a decision relating to youth training allowance and was made on the basis of issues determined solely by officers of the Department of Social Security—the Secretary to that Department.

Compliance with obligations under paragraph 37(1)(a) of AAT Act

 (2) If a person applies to the Administrative Appeals Tribunal under section 324 for a review of a decision, the Secretary or the Secretary to the Department of Social Security, as the case requires, is taken to have complied with his or her obligations under paragraph 37(1)(a) of the Administrative Appeals Tribunal Act 1975 in relation to the decision if he or she gives the Administrative Appeals Tribunal the prescribed number of copies of the statement prepared by the Social Security Appeals Tribunal under paragraph 128(1)(a) of the Social Security Act.

 Powers under section 38 of AAT Act

 (3) Subsection (2) does not limit the Administrative Appeals Tribunal’s powers under section 38 of the Administrative Appeals Tribunal Act 1975.

Note 1: Subsection 37(1) of the Administrative Appeals Tribunal Act 1975 requires a person who has made a decision that is under review by the AAT to give the AAT copies of:

(a) a statement setting out the findings on material questions of fact, referring to the evidence or other material on which those findings were based and giving the reasons for the decision; and

(b) every other document or part of a document that is in the person’s possession or under the person’s control and is considered by the person to be relevant to the review.

 Unless subsection 331(1) provided otherwise, the obligations under section 37 of the Administrative Appeals Tribunal Act 1975 would fall on the SSAT. Paragraph 1281(1)(a) of the Social Security Act requires the SSAT to prepare a written statement of reasons, findings and evidence for its decision and paragraph 1281(1)(b) of that Act requires the SSAT to give the Secretary, or the Secretary to the Department of Social Security, a copy of the statement. As the Secretary, or the Secretary to the Department of Social Security, as the case requires, has possession of the statement and relevant documents, he or she is the appropriate person to give them to the AAT.

Note 2: Section 38 of the Administrative Appeals Tribunal Act 1975 allows the Administrative Appeals Tribunal to order the person who lodged a statement under paragraph 37(1)(a) of the Administrative Appeals Tribunal Act 1975, to lodge an additional statement containing further and better particulars.

The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 333 as if references in section 38 of that Act to the person who lodges a statement referred to in paragraph 37(1)(a) of that Act with the Administrative Appeals Tribunal were references to the National Convener.

Note: The effect of this section is that if the AAT considers that the statement under section 1281 of the Social Security Act is not adequate, the AAT may ask the National Convener to provide an additional statement containing further and better details.

Applications for review by AAT

 (1) The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 324 as if the references in subsection 41(4) of that Act to the person who made the decision were references to each party to the review by the Social Security Appeals Tribunal (the SSAT).

Note: Section 41 of the Administrative Appeals Tribunal Act 1975 deals with the operation and implementation of a decision under review by the AAT.

Review of decisions

 (2) The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 324 as if the references in section 41 of that Act to the decision to which the relevant proceeding relates were references to:

 (a) if the SSAT affirmed the original decision—the original decision; or

 (b) if the SSAT varied the original decision:

 (i) the original decision as varied by the SSAT; and

 (ii) the original decision; or

 (c) if the SSAT set aside the original decision and substituted a new decision:

 (i) the new decision; and

 (ii) the original decision; or

 (d) if the SSAT set aside the original decision and sent the matter back to the Secretary for reconsideration in accordance with any directions or recommendations of the SSAT:

 (i) any decision made as a result of that reconsideration; and

 (ii) the original decision.

Review by SSAT

 (3) For the purposes of subsection (2), the original decision is the decision that was reviewed by the SSAT.

The Administrative Appeals Tribunal Act 1975 applies to a review under section 324 as if the reference in subsection 42A(2) of that Act to the person who made the decision were:

 (a) if the decision was a decision other than a decision referred to in paragraph (b)—the Secretary; and

 (b) if the decision was a decision relating to youth training allowance and was made on the basis of issues determined solely by officers of the Department of Social Security—the Secretary to that Department.

Note: Subsection 42A(2) of the Administrative Appeals Tribunal Act 1975 empowers the AAT to direct that, if a person fails to appear (other than the person who made the decision that is under review), that person is to cease to be a party to the proceedings before the AAT or the application for review is to be dismissed.

Minister may prepare statement

 (1) The Minister may prepare a written statement of the policy of the Commonwealth Government in relation to the administration of this Act and give a copy of the statement to:

 (a) the Secretary; and

 (b) the Secretary to the Department of Social Security; and

 (c) the National Convener of the Social Security Appeals Tribunal.

Copy to be laid before Parliament

 (2) If the Minister prepares a statement under subsection (1), the Minister must cause a copy of the statement to be laid before each House of the Parliament within 15 sitting days of that House after the Minister first gives a copy of the statement to a person under that subsection.

Officers to have regard to statement

 (3) In exercising powers under this Act, an officer must have regard to any statement a copy of which has been given to the Secretary of the Department of which he or she is an officer.

National Convener and Tribunal to have regard to statement

 (4) In exercising powers under this Act, the National Convener and the Social Security Appeals Tribunal must have regard to any statement a copy of which has been given to the National Convener under subsection (1).

The Secretary and the National Convener of the Social Security Appeals Tribunal may agree on administrative arrangements to further the objectives of Part 9.

The Secretary and the Secretary to the Department of Social Security may, to further the objectives:

 (a) of Part 8; and

 (b) of Part 9 and this Part, in so far as they relate to Part 8;

agree on administrative arrangements under which officers of the Department of Social Security perform duties, or exercise powers or functions, under or in relation to Part 8, and under and in relation to Part 9 and this Part in so far as they so relate.

Secretary may delegate powers

 (1) Subject to this section, the Secretary may, by signed writing, delegate to an officer all or any of the powers of the Secretary under this Act.

 (1A) Subject to this section, the Secretary to the Department of Social Security may, in accordance with service arrangements, delegate in writing all or any of his or her powers under this Act to the CEO or an employee of the Agency.

Certain powers may only be delegated to Secretary to the Department of Social Security

 (2) With regard to the Secretary’s power under paragraph 355(1)(b) (disclosure of information), the Secretary:

 (a) may delegate the power to the Secretary to the Department of Social Security or to the CEO; and

 (b) must not delegate the power to anyone else.

Certain powers may only be delegated to an officer of the Department

 (3) With regard to the Secretary’s powers under section 71 (move to area of lower employment prospects) and the Secretary’s power under section 339 to authorise an officer to perform duties as an authorised review officer for the purposes of section 71, the Secretary:

 (a) may delegate the powers to officers of the Department or to employees of the Agency; and

 (b) must not delegate the powers to anyone else.

Sub-delegation

 (4) If the Secretary delegates a power (other than the power referred to in subsection (2)) to the Secretary to the Department of Social Security, the last-mentioned Secretary may, unless the instrument of delegation prohibits it, sub-delegate the power, by signed writing, to an officer of the Department of Social Security.

Note 1: See sections 34A and 34AA of the Acts Interpretation Act 1901 on delegation.

Note 2: For officer see subsection 3(1).

 (5) If the Secretary to the Department of Social Security delegates the power referred to in subsection (2) to the CEO, the CEO cannot, despite section 33 of the Agency Act, delegate the power to an employee of the Agency.

 (1) If the Secretary delegates to the CEO or an employee of the Agency a power under this Act to require a person to give, send or produce to the Department a document or information, the delegate may, in exercising the power, require the person to give, send or produce the document or information to the Agency instead of the Department.

 (2) A person who gives, sends or produces a document or information to the Agency in compliance with a requirement by a delegate of the Secretary is to be treated, for all purposes, as if the person had given, sent or produced the document or information to the Department in compliance with a requirement by the Secretary.

 (3) A person who does not give, send or produce a document or information to the Agency in compliance with a requirement by a delegate of the Secretary is to be treated, for all purposes, as if the person had not given, sent or produced the document or information to the Department in compliance with a request by the Secretary.

 (4) If:

 (a) the Secretary delegates to the CEO or an employee of the Agency all or any of the Secretary’s powers under this Act; and

 (b) the delegation makes a reference to the Secretary, the Department, or an officer of the Department, in a prescribed provision inappropriate, whether for administrative reasons or any other reason;

the Secretary may direct that the provision, or the provision in so far as it applies to youth training allowance, is to have effect as if:

 (c) the reference to the Secretary were a reference to the CEO; or

 (d) the reference to the Department were a reference to the Agency; or

 (e) the reference to an officer of the Department were a reference to an employee of the Agency;

as the case requires.

 (5) If the Secretary gives a direction in relation to a provision, the provision has effect in accordance with the direction while the direction is in force.

 (6) A direction comes into force on the day it is notified in the Gazette, or on such later day as is specified in it, and remains in force until it is revoked.

 (7) A direction is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

 (8) In this section:

Department means the Department of Social Security.

prescribed provision means a provision of Part 8 of this Act, or of Part 9 or 10 in so far as the provision applies to youth training allowance.

Secretary means the Secretary to the Department of Social Security.

Secretary may authorise officer

 (1) Subject to subsection (2), the Secretary may authorise an officer to perform duties as an authorised review officer for the purposes of this Act.

Authorised review officers for particular purposes

 (2) The only officers who may be authorised to perform duties as authorised review officers for the purposes of section 71 (move to area of lower employment prospects) are officers of the Department.

Written authorisation

 (3) The Secretary’s authorisation must be in writing.

Written decision

 (1) A decision of an officer under this Act must be in writing.

Entry in computer

 (2) A decision under this Act is taken to be in writing if it is entered into, or recorded with the use of, a computer.

Notices other than notices under Part 8 taken to have been given

 (1) If notice of a decision under a Part of this Act other than Part 8 is:

 (a) delivered to a person personally; or

 (b) left at the address of the place of residence or business of the person last known to the Secretary; or

 (c) sent by pre-paid post to the address of the place of residence or business of the person last known to the Secretary;

notice of the decision is taken, for the purposes of this Act, to have been given to the person even if the Secretary is satisfied that the person did not actually receive the notice.

Note: Compare section 28A of the Acts Interpretation Act 1901.

Notices under Part 8 to have been given

 (2) If notice of a decision under Part 8 is:

 (a) delivered to a person personally; or

 (b) left at the address of the place of residence or business of the person last known to the Secretary, or to the Secretary to the Department of Social Security; or

 (c) sent by pre-paid post to the address of the place of residence or business of the person last known to the first-mentioned Secretary, or to the Secretary to the Department of Social Security;

notice of the decision is taken, for the purposes of this Act, to have been given to the person even if the first-mentioned Secretary is satisfied that the person did not actually receive the notice.

Notice by post

 (3) Notice of a decision under this Act may be given to a person by properly addressing, prepaying and posting the notice as a letter.

Note: Compare the first limb of section 29 of the Acts Interpretation Act 1901.

When notice by post given

 (4) If a notice of a decision under this Act is given in accordance with subsection (3), notice of the decision is taken to have been given to the person at the time when the letter would be delivered in the ordinary course of the post unless the contrary is proved.

Note: Compare the second limb of section 29 of the Acts Interpretation Act 1901.

Effect of section

 (5) This section only applies to notices of decisions and nothing in this section affects the operation of sections 28A and 29 of the Acts Interpretation Act 1901 in relation to other notices under this Act.

Extraterritorial application

 (1) This Division other than section 349 extends to:

 (a) acts, omissions, matters and things outside Australia, whether or not in a foreign country; and

 (b) all people irrespective of their nationality.

Crown to be bound

 (2) This Division other than sections 348 and 349 binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.

Commonwealth laws not to be breached

 (3) Nothing in this Division requires a person to give information to the extent that, in so doing, the person would contravene a law of the Commonwealth (other than a law of a Territory).

Operation of section 12ZU unaffected

 (4) Nothing in this Division affects the operation of section 12ZU.

Secretary may require information concerning student assistance benefits

 (1) The Secretary may require a person to give information, or to produce a document that is in the person’s custody or under the person’s control, to the Department if the Secretary considers that the information or document may be relevant to:

 (a) whether a person who has made a claim for a student assistance benefit under this Act is or was qualified for the benefit; or

 (b) whether a student assistance benefit under this Act is payable to a person who is receiving it; or

 (c) whether a student assistance benefit under this Act was payable to a person who has received it; or

 (d) the rate of a student assistance benefit that applies or applied to a person.

Secretary may require information concerning youth training allowances

 (2) The Secretary may require a person to give information, or produce a document that is in the person’s custody or under the person’s control, to the Department, or to the Department of Social Security, as the case requires, if the Secretary considers that the information or document may be relevant to:

 (a) whether a person who has made a claim for youth training allowance is or was qualified for the allowance; or

 (b) whether youth training allowance is payable to a person who is receiving it; or

 (c) whether youth training allowance was payable to a person who has received it; or

 (d) the rate of youth training allowance that applies or applied to a person.

Note: A requirement under this section may be sent to a company as well as to a natural person—paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that person includes a body corporate.

Information from persons owing debts under Parts of Act other than Part 8

 (1) The Secretary may require a person who owes a debt to the Commonwealth under this Act in relation to a student assistance benefit:

 (a) either to:

 (i) give to the Department information that is relevant to the person’s financial situation; or

 (ii) produce to the Department a document that is in the person’s custody or under the person’s control and is relevant to the person’s financial situation; and

 (b) if the person’s address changes—to notify the Department of the new address within 14 days of the change.

Note: A requirement under this subsection may be sent to a company as well as to a natural person—paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that person includes a body corporate.

 (2) The Secretary may require a person who owes a debt to the Commonwealth under this Act in relation to youth training allowance:

 (a) either to:

 (i) give to the Department of Social Security information that is relevant to the person’s financial situation; or

 (ii) produce to the Department of Social Security a document that is in the person’s custody or under the person’s control and is relevant to the person’s financial situation; and

 (b) if the person’s address changes—to notify the Department of Social Security of the new address within 14 days of the change.

Note: A requirement under this subsection may be sent to a company as well as to a natural person—paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that person includes a body corporate.

Section 343 not affected

 (3) This section does not limit section 343.

Secretary may require information etc. concerning debts under Act other than Part 8

 (1) If the Secretary believes that a person may have information or a document:

 (a) that would help the Department locate another person who owes a debt to the Commonwealth under this Act in relation to a student assistance benefit; or

 (b) that is relevant to the financial situation of a person referred to in paragraph (a);

the Secretary may require the first-mentioned person to give the information, or produce the document, to the Department.

Secretary may require information etc. concerning debts under Part 8

 (2) If the Secretary believes that a person may have information or a document:

 (a) that would help the Department of Social Security locate another person who owes a debt to the Commonwealth under this Act in relation to youth training allowance; or

 (b) that is relevant to the financial situation of a person referred to in paragraph (a);

the Secretary may require the first-mentioned person to give the information, or produce the document, to the Department of Social Security.

Note: A requirement under this section may be sent to a company as well as to a natural person—paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that  person includes a body corporate.

Secretary may require information

 (1) The Secretary may require a person to give information about a class of people to the Department of Social Security for either or both of the following purposes:

 (a) detecting cases in which amounts of youth training allowance have been paid when they should not have been paid;

 (b) verifying the qualifications for youth training allowance of people who have made claims for that allowance.

Note: A requirement under this subsection may be sent to a company as well as to a natural person—paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that person includes a body corporate.

Type of information that may be sought

 (2) The information that the Secretary may require about each person in the class of people is all or any of the following information (but no other information);

 (a) full name and any previous name;

 (b) address;

 (c) sex;

 (d) marital status;

 (e) date of birth;

 (f) date of death;

 (g) dates of entries into and departures from Australia;

 (h) any payments received by the person from the person given the notice, within the period of 12 months before the giving of the notice, and the account number of any account into which any of those payments were paid;

 (i) in relation to a course of study being undertaken by the person:

 (i) whether the course is full-time or part-time; and

 (ii) the date on which the person started the course; and

 (iii) the subjects being studied by the person;

 (j) in relation to any employment of the person by the person given the notice:

 (i) the date on which the person’s employment started; and

 (ii) the date on which the person’s employment ended.

Requirement by written notice

 (1) A requirement made to a person under section 343, 344, 345 or 346 must be by written notice given to the person.

Note: Meaning of given—sections 28A and 29 of the Acts Interpretation Act 1901 provides that a notice is given to a natural person if the notice is:

         delivered personally; or

         left at the last known address of the person; or

         sent by pre-paid post to the last known address of the person.

Contents of notice

 (2) The notice must state:

 (a) how the person is to give the information; and

 (b) the period within which the person is to give the information; and

 (c) the officer (if any) to whom the information is to be given; and

 (d) that the requirement made by the notice is under the section concerned; and

 (e) if the notice is given under section 346—the class of people about whom the information is to be given.

Secretary may state particular class

 (3) The Secretary may state a particular class of people in a notice making a requirement under section 346, whether or not the Secretary is able to identify any of the people in the class as being people who:

 (a) have received; or

 (b) are receiving; or

 (c) have made claims for;

youth training allowance.

Time limit for providing information

 (4) The period stated under paragraph (2)(b) must extend for at least 14 days after the notice is given.

Appearance before officer

 (5) The notice may require the person to give the information by appearing (or, if the person is a body corporate, to arrange for a person to appear) before a particular officer to answer questions.

Time and place for appearance

 (6) If the notice requires a person to appear before an officer, the notice must state a time and a place for the person to appear, and the time must be at least 14 days after the notice is given.

Secretary must decide whether information under section 346 is relevant

 (7) Within 3 months after information is given under section 346, the Secretary must decide which (if any) of the information given in response to the notice is, or is likely to be, relevant to the matters referred to in subsection 346(1).

Destruction of irrelevant information under section 346

 (8) If the Secretary decides, within the 3 month period, that some or all of the information given in response to a notice given under section 346 is not, or is not likely to be, relevant to the matters referred to in subsection 346(1), the Secretary must ensure that any record of the irrelevant information is destroyed.

Destruction of all information under subsection (7)

 (9) If the Secretary has not made a decision under subsection (7) at the end of the 3 month period, the Secretary must ensure that any record of all or any part of the information is destroyed.

Offences

 (10) A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a requirement made under section 343, 344, 345 or 346 to the extent that the person is capable of complying with it.

Penalty for a contravention of this subsection: Imprisonment for 12 months.

Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Nothing contained in any law of a State or a Territory operates to prevent a person from:

 (a) giving information; or

 (b) producing documents; or

 (c) giving evidence;

that the person is required to give or produce to the Department of Social Security or to an officer for the purposes of this Act.

Person may request statement

 (1) If a person’s employment (including employment under a contract for services) ceases, the person may request his or her former employer to give the person, in a form approved by the Secretary, a statement about that employment.

Offences

 (2) If a person makes a request under subsection (1), the former employer must comply with the request as soon as practicable.

Penalty: Imprisonment for 12 months.

Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Note 2: The statement could be relevant in determining a person’s claim for youth training allowance. The statement may establish whether the person is affected by, for example, section 106 (unemployment due to voluntary act) or section 107 (unemployment due to misconduct).

Nothing in this Division affects the operation of section 12ZU.

Obtaining protected information

 (1) A person may obtain protected information if the information is obtained for the purposes of this Act or the Social Security Act.

Note: In certain circumstances it is an offence for a person to obtain protected information without authority (see section 352).

Disclosure of protected information

 (2) A person may:

 (a) make a record of protected information; or

 (b) disclose such information to any person; or

 (c) otherwise use such information;

if the record, disclosure or use made of the information by the person is made:

 (d) for the purposes of this Act or the Social Security Act; or

 (e) for the purpose for which the information was disclosed to the person under section 354 or 355.

Note: In certain circumstances it is an offence for a person to use protected information without authority (see section 353).

Child support

 (3) Nothing in this Part prevents a person from disclosing information to another person if the information is disclosed for the purposes of the Child Support (Assessment) Act 1989 or the Child Support (Registration and Collection) Act 1988.

If:

 (a) a person intentionally obtains information; and

 (b) the person:

 (i) is not authorised or required by or under this Act; and

 (ii) has no other lawful authority;

  to obtain the information; and

 (c) the person knows or ought reasonably to know that the information is protected information;

the person is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.

Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Note 2: A person, including an officer, is authorised to obtain protected information for the purposes of this Act or the Social Security Act (see subsection 351(1)).

Note 3: For protected information see subsection 3(1).

Note 4: If a person is guilty of an offence under this section and the person is an employee or agent of another person, the other person may also be guilty of the offence (see section 298).

If:

 (a) a person intentionally:

 (i) makes a record of; or

 (ii) discloses to any other person; or

 (iii) otherwise makes use of;

  information; and

 (b) the person is not authorised or required by or under this Act or the Social Security Act to make the record, disclosure or use of the information that is made by the person; and

 (c) the person knows or ought reasonably to know that the information is protected information;

the person is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.

Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Note 2: A person, including an officer, is authorised to use information only if it is used for certain purposes (see subsection 351(2)). In certain circumstances an officer is required under this Act to disclose information (see section 354). The Secretary can disclose certain information (see section 355).

An officer must not, except for the purposes of this Act or the Social Security Act, be required:

 (a) to produce any document in his or her possession; or

 (b) to disclose any matter or thing of which he or she had notice;

because of the performance or exercise of his or her duties, functions or powers under this Act or the Social Security Act to:

 (c) a court; or

 (d) any of the following:

 (i) a tribunal; or

 (ii) an authority; or

 (iii) a person;

  that has power to require the production of documents or the answering of questions.

Secretary may disclose information

 (1) Despite sections 353 and 354, the Secretary may:

 (a) if the Secretary certifies that it is necessary in the public interest to do so in a particular case or class of cases—disclose information acquired by an officer in the performance of his or her functions or duties or in the exercise of his or her powers under this Act or the Social Security Act to any persons and for any purposes that the Secretary determines; or

 (b) disclose any such information to the Secretary of a Department of State of the Commonwealth or to the head of an authority of the Commonwealth for the purposes of that Department or authority; or

 (c) disclose any such information to a contracted case manager within the meaning of the Employment Services Act 1994 for the purposes of that Act; or

 (d) disclose any such information to a person who is expressly or impliedly authorised by the person to whom the information relates to obtain it.

Note: A person to whom information is disclosed may commit an offence if the person uses the information without authority (see section 353).

Secretary to act according to guidelines

 (2) In giving certificates for the purposes of paragraph (1)(a), the Secretary must act in accordance with guidelines from time to time in force under subsection 356(1).

Disclosure to be in accordance with guidelines

 (3) In disclosing information under paragraph (1)(b), the Secretary must act in accordance with guidelines from time to time in force under subsection 356(1).

Minister may set guidelines

 (1) The Minister, by written determination:

 (a) is to set guidelines for the exercise of Secretary’s power to give certificates for the purposes of paragraph 355(1)(a); and

 (b) is to set guidelines for the exercise of the Secretary’s power under paragraph 355(1)(b); and

 (c) may revoke or vary those guidelines.

Disallowable instrument

 (2) A determination made under subsection (1) is a disallowable instrument.

If:

 (a) a person solicits the disclosure of protected information from an officer or another person; and

 (b) the disclosure would be in contravention of this Division; and

 (c) the first-mentioned person knows or ought reasonably to know that the information is protected information;

then, whether or not any protected information is actually disclosed, the first-mentioned person is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.

Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Note 2: For protected information see subsection 3(1).

Note 3:   For officer see subsection 3(1).

Note 4: If a person is guilty of an offence under this section and the person is an employee or agent of another person, the other person may also be guilty of the offence (see section 298).

If:

 (a) a person solicits the disclosure of protected information from an officer; and

 (b) for that purpose makes representations that the person knows or ought reasonably to know are untrue;

then, whether or not any protected information is actually disclosed, the person is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.

Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Note 2:  For protected information see subsection 3(1).

Note 3: For officer see subsection 3(1).

Note 4: If a person is guilty of an offence under this section and the person is an employee or agent of another person, the other person may also be guilty of the offence (see section 298).

Person offering to supply information

 (1) A person who:

 (a) offers to supply (whether to a particular person or otherwise) information about another person; and

 (b) knows that the information is protected information;

is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.

Person holding out that he or she is able to supply information

 (2) A person who:

 (a) holds himself or herself out as being able to supply (whether to a particular person or otherwise) information about another person; and

 (b) knows that the information is protected information;

is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.

Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.

Note 2: For protected information see subsection 3(1).

Note 3:  If a person is guilty of the offence under subsection (1) and the person is an employee or agent of another person, the other person may also be guilty of the offence (see section 298).

Exception

 (3) Nothing in subsection (1) or (2) renders an officer acting in the exercise or performance of his or her duties, functions or powers under this Act or the Social Security Act guilty of an offence.

Note: For officer see subsection 3(1).

An officer must make an oath or declaration in a form approved by the Minister or the Secretary if required to do so by the Minister or the Secretary.

Note: For officer see subsection 3(1).

The provisions of this Part that relate to the disclosure of information do not affect the operation of the  Freedom of Information Act 1982.  

 

Schedule 1Calculation of Rate of Youth Training Allowance

Section 135

In this Schedule:

accounting period, in MODULE F, means a period of 12 months.

employer, in MODULE F, has the meaning given by Schedule 3.

independent has the meaning given by clause 2.

living at home has the meaning given by clause 4.

parent, in relation to a person (the relevant person), means in Part 2:

 (a) a natural or adoptive parent of the relevant person with whom the relevant person normally lives; or

 (b) if a parent referred to in paragraph (a) is a member of a couple and normally lives with the other member of the couple—the other member of the couple; or

 (c) any other person (other than the relevant person’s partner) on whom the relevant person is wholly or substantially dependent; or

 (d) if none of the preceding paragraphs applies—the natural or adoptive parent of the relevant person with whom the relevant person last lived.

required to live away from home has the meaning given by clause 3.

Application

 (1) This clause applies to determine whether a person is to be regarded as independent for the purposes of this Schedule.

Member of a couple

 (2) A person is independent if the person is a member of a couple.

Note: For member of a couple see subsections 4(2), (3) and (6) of the Social Security Act.

Person with a dependent child

 (3) Subject to subclause (4), a person is independent if:

 (a) the person has a natural or adoptive child who is wholly or substantially dependent on the person or his or her partner; or

 (b) the person previously had a natural or adoptive child who was wholly or substantially dependent on the person or on a person who, at the time, was the person’s partner.

Child not dependent if maintenance paid for the child

 (4) If a person pays maintenance for a child, the child is taken not to be dependent on the person.

Orphan

 (5) A person is independent if both of the person’s parents are dead, whether or not the person is dependent, or was last dependent, on someone other than his or her parents.

If parents cannot exercise responsibilities

 (6) A person is independent if both of the person’s parents are (or, if the person has only one parent, that parent is):

 (a) serving a prison sentence of at least 10 years; or

 (b) mentally incapacitated and likely to remain so incapacitated for an indefinite period; or

 (c) being provided with residential care within the meaning of the Aged Care Act 1997 through an aged care service within the meaning of that Act conducted by an approved provider within the meaning of that Act and are likely to continue to be provided with that care for an indefinite period; or

 (d) missing;

whether or not the person is dependent, or was last dependent, on someone other than a parent of the person.

Refugee

 (7) Subject to subclause (8), a person is independent if the person:

 (a) is the holder, within the meaning of the Migration (1993) Regulations, of a Group 1.3 entry permit (permanent resident) (refugee and humanitarian); or

 (b) while the holder of such a permit, was granted Australian citizenship.

Certain refugees cannot qualify as independent

 (8) A person is not independent under subclause (7) if the person:

 (a) has a parent living in Australia; or

 (b) is wholly or substantially dependent on someone else on a long-term basis.

Person in State care

 (9) A person is independent if:

 (a) the person is in the guardianship, care or custody of a Court, a Minister, or a Department, of the Commonwealth, a State or a Territory; or

 (b) there is a current direction from such a Court, Minister or Department placing the person in the guardianship, care or custody of someone who is not the person’s parent; or

 (c) the person stopped being in a situation described in paragraph (a) or (b) only because of his or her age;

and:

 (d) the person is not living with a parent; and

 (e) the person does not qualify under a law of, or a non-statutory scheme administered by, a State or Territory for the making of any payments by, or by an authority of, the State or Territory to or in respect of the person for his or her upkeep, and no such payments are being made.

Unreasonable to live at home

 (10) A person is independent if:

 (a) the person can not live at the home of either or both of his or her parents:

 (i) because of extreme family breakdown or other similar exceptional circumstances; or

 (ii) because it would be unreasonable to expect the person to do so as there would be a serious risk to his or her physical or mental well-being due to violence, sexual abuse or other similar unreasonable circumstances; and

 (b) the person is not receiving continuous support, whether directly or indirectly and whether financial or otherwise, from a parent of the person or from another person who is acting as the person’s guardian on a long-term basis; and

 (c) the person is not receiving, on a continuous basis, any payments in the nature of income support (other than a social security benefit or youth training allowance) from the Commonwealth, a State or a Territory.

Living away from home for 18 weeks

 (11) A person is independent if the person:

 (a) does not live, and for a continuous period of at least 18 weeks has not lived, at a home of the parents, or of a parent, of the person; and

 (b) has, at a time when the person was not living at such a home been employed for at least 20 hours a week for the period of, or for periods that total, at least 13 weeks; and

 (c) is not receiving financial or other support from either or both of his or her parents, or from someone else who is acting as his or her guardian, and did not receive such support during the period referred to in paragraph (a).

 (12) A person is taken to be independent for the purposes of this Schedule if:

 (a) the person does not live at a home of the parents, or of a parent, of the person; and

 (b) the person does not receive regular financial support from a parent of the person; and

 (c) one of the following subparagraphs applies:

 (i) there was a period in which the person was regarded as an independent young person for the purposes of the Social Security Act and:

 (A) received sickness allowance before 1 January 1995; or

 (B) received on or after that date sickness allowance in the calculation of which subsection 709(2) of the Social Security Act 1991 as in force at a time on or after that date applied;

 (ii) the person received special benefit before 1 January 1995 and continued to receive that benefit on that date and there was a period, whether before, on or after that date, in which the person was regarded as an independent young person for the purposes of the Social Security Act;

 (iii) there was a period in which the person was regarded as an independent young person for the purposes of the Social Security Act and received job search allowance.

Clause to be exclusive

 (13) A person is not to be regarded as independent except as provided by this clause.

Note: For parent see section 58.

When a person is taken to be required to live away from home

 (1) A person is taken to be required to live away from home for the purposes of this Schedule if, and only if:

 (a) the person is not independent; and

 (b) the person does not live at the home of either or both of his or her parents; and

 (c) the Secretary determines that:

 (i) the person needs to live away from home for the purpose of education, training, searching for employment or doing anything else in preparation for getting employment; or

 (ii) the likelihood of the person’s getting employment will be significantly increased if the person lives away from home.

Secretary may have regard to advice from case manager

 (2) In making a determination under paragraph (1)(c), the Secretary may have regard to any advice given by a case manager to whom the person has been referred under Part 4.3 of the Employment Services Act 1994.

Matters to which Secretary is to have regard

 (3) In making a determination under subparagraph (1)(c)(ii), the Secretary is to have regard to:

 (a) the overall employment prospects for young people in the area where the home is situated and in the area where the person is living; and

 (b) matters relating to the person that would affect the likelihood of the person’s getting employment in those areas.

Note: For parent see section 58. 

If a person:

 (a) is not independent; and

 (b) is not taken by clause 3 to be required to live away from home;

the person is taken for the purposes of this Schedule to be living at home.

Method of calculating rate

 A1 The rate of allowance is a fortnightly rate.

Method statement

Step 1. Work out the person’s maximum basic rate using  MODULE B below.

Step 2. Work out the amount a fortnight (if any) of pharmaceutical allowance using MODULE C below.

Step 3. Work out any applicable additional amount for rent using MODULE D below.

Step 4. Add up the amounts obtained in Steps 1 to 3: the result is called the maximum payment rate.

Step 5. Work out, using MODULE E below, whether the assets test applies to the person and, if it does, whether or not the value of the person’s assets is more than the person’s assets value limit.

Step 6. If the value of the person’s assets is not more than the person’s assets value limit, the assets test does not affect the maximum payment rate.

Step 7. If the value of the person’s assets is more than the person’s assets value limit, then youth training allowance is not payable to the person and the following steps are to be disregarded.

Step 8. If the person is not independent and the parental income test applies to the person (see points F2 and F3 in Module F below), work out the reduction for parental income using that Module and take the reduction away from the maximum payment;

 the result is called the parental income test reduced rate.

Step 9. If the parental income test reduced rate is nil, then youth training allowance is not payable to the person and the following steps are to be disregarded.

Step 10. Apply the income test using Module G below to work out the person’s income reduction.

Step 11. The rate of allowance is worked out by taking the person’s ordinary income reduction away from:

 (a) if the person is not independent and Step 8 did not apply to the person because of points F2 and F3 (other than paragraph (g) of point F3)—the maximum payment rate; or

 (b) if the person is not independent and paragraph (g) of point F3 applied to the person—the maximum payment rate; or

 (c) if the person is not independent and Step 8 applied to the person but Step 9 did not—the parental income test reduced rate; or

 (d) if the person is independent—the maximum payment rate;

 and adding any amount payable by way of remote area allowance (see Module H below).

 Note: If a person’s rate is reduced under Step 8 or 11, the order  in which the reduction is to be made against the components of the maximum payment rate is laid down by section 257 (maximum basic rate first, then rent assistance).

Maximum basic rate

 B1 A person’s maximum basic rate is to be worked out using Table B.

Work out:

 (a) whether the person is independent; and

 (b) if the person is not independent—whether the person lives at home or is required to live away from home; and

 (c) if the person is independent:

 (i) whether the person is a member of a couple; and

 (ii) whether the person has a dependent child.

The maximum basic rate is the corresponding amount in column 3.

TABLE B
MAXIMUM BASIC RATES

column 1
item

column 2
person’s situation

column 3
rate

1.

Not independent and lives at home

$134.50

2.

Not independent and required to live away from home

$222.10

3.

Independent and:

(a)  is not a member of a couple; and
(b)  does not have a dependent child



$222.10

4.

Independent and:

(a)  is a member of a couple; and
(b)  does not have a dependent child



$222.10

5.

Independent and:

(a) is not a member of a couple; and
(b) has a dependent child



$321.60

6.

Independent and:

(a)  is a member of a couple; and
(b)  has a dependent child



$269.20

Note 1: For independent see clause 2 of this Schedule.

Note 2:  For member of a couple see section 4 of the Social Security Act.

Note 3: For dependent child see section 5 of the Social Security Act.

Note 4: For lives at home see clause 4 of this Schedule.

Note 5:  For required to live away from home see clause 3 of this Schedule.

Note 6: The rates in column 3 are indexed annually in line with CPI increases (see Division 13).

Qualification for pharmaceutical allowance

 C1 Subject to points C3 and C4, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if:

 (a) the person is an Australian resident; and

 (b) the person is in Australia; and

 (c) the person is receiving youth training allowance and point C2 (incapacity for work) applies to the person.

Incapacity for work

 C2 This point applies to a person if:

 (a) the person is incapacitated for work; and

 (b) if the person is receiving youth training allowance—the person is, under Subdivision BAA of Division 2 of Part 8, exempt from the activity test.

Note: Subsection 66(2) provides that in some circumstances a person who is incapacitated for work can continue to receive youth training allowance.

No pharmaceutical allowance if person receiving pharmaceutical allowance under the Veterans’ Entitlements Act

 C3 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving pharmaceutical allowance under the Veterans’ Entitlements Act.

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans’ Entitlements Act and not a service pensioner

 C4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person is a member of a couple; and

 (b) the person’s partner is receiving pharmaceutical allowance under the Veterans’ Entitlements Act; and

 (c) the person’s partner is not receiving a service pension.

Note: If paragraphs (a), (b) and (c) apply to the person’s partner, the partner is receiving pharmaceutical allowance under the Veterans’ Entitlements Act at the higher rate (rather than the person and the person’s partner each receiving pharmaceutical allowance at the lower rate).

Amount of pharmaceutical allowance

 C5 The amount of pharmaceutical allowance is the amount a fortnight worked out using the following table:

TABLE C 
PHARMACEUTICAL ALLOWANCE AMOUNT TABLE

column 1

item

column 2

person’s family situation

column 3
amount a fortnight

1.

Not member of couple

$5.20

2.

Partnered

$2.60

3.

Member of illness separated couple

$5.20

4.

Member of respite care couple

$5.20

5.

Partnered (partner getting service pension)

$2.60

6.

Partnered (partner in gaol)

$5.20

Note 1:  For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4 of the Social Security Act.

Note 2: The amounts in column 3 are indexed or adjusted annually in line with CPI increases on 1 January (see sections 251 and 256).

Rent assistance

 D1 Subject to point D3, an amount to help cover the cost of rent is to be added to the maximum basic rate of a person who is independent for a period if:

 (a) the person is not an ineligible homeowner; and

 (b) the person pays, or is liable to pay, rent (other than Government rent) in respect of the period; and

 (c) the rent is payable at a rate of more than the rent threshold rate; and

 (d) the person is in Australia throughout the period; and

 (e) the person does not have a partner with a rent increased pension; and

 (f) where the person or the person’s partner is receiving family payment under the Social Security Act in respect of a dependent child who is an FP child—the standard family payment rate of the person or partner under that Act does not exceed the minimum family payment rate of the person or partner, as the case may be.

Note 1: For partner with a rent increased pension see point D3.

Note 2:  For rent, Government rent and ineligible homeowner see section 13 of the Social Security Act.

 Note 3: For independent see clause 2 of this Schedule.

Note 4:  For rent threshold rate see point D2.

Rent threshold rate

 D2 A person’s rent threshold rate depends on the person’s family situation. Work out which family situation in Table DA applies to the person. The rent threshold rate is the corresponding amount in column 3.

TABLE DA
RENT THRESHOLD RATES

column 1

item

column 2

person’s family situation

column 3
amount a fortnight

1.

Not member of a couple

$61.80

2.

Partnered—partner does not have rent increased benefit

$103.20

3.

Partnered—partner has rent increased benefit

$103.20

4.

Partnered—member of illness separated couple

$61.80

5.

Partnered—member of respite care couple $61.80

 

6.

Partnered (partner in gaol)

$61.80

Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4 of the Social Security Act.

Note 2: For partner with rent increased benefit  see point D5.

Note 3: The column 3 amounts are indexed 6 monthly in line with CPI increases (see Division 13).

Partner with rent increased pension

 D3 A person has a partner with a rent increased pension, for the purposes of point D1, if:

 (a) the partner is living with the person in their home; and

 (b) the partner is receiving a social security pension or service pension; and

 (c) the partner’s pension rate is increased to take account of rent.

Factors affecting rate of rent assistance

 D4 The rate of rent assistance depends on:

 (a) the fortnightly rent paid or payable by the person; and

 (b) whether or not the person has a partner who has a rent increased benefit.

Partner with rent increased benefit

 D5 A person’s partner has a rent increased benefit for the purposes of this MODULE if the partner:

 (a) is living with the person in their home; and

 (b) either:

 (i) is receiving a youth training allowance newstart allowance or sickness allowance the rate of which is increased to take account of rent (whether or not the rate would be nil except for the increase to take account of rent); or

 (ii) would be receiving such an allowance except for the amount of the person’s ordinary income reduction under point G17 in MODULE G.

Note: For the treatment of rent paid by a member of a couple see points D8 and D9.

Rate of rent assistance

 D6 The rate of rent assistance a fortnight is worked out using Table DB. Work out the person’s family situation and calculate Rate A for the person using the corresponding formula in column 3. This will be the person’s rate of rent assistance but only up to the person’s maximum rent assistance rate. If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of the rate that would otherwise have been Rate B for the person.

TABLE DB
RATE OF RENT ASSISTANCE

column 1
item

column 2
person’s family
situation

column 3
Rate A

column 4
Rate B

1.

Not member of couple

3    (fortnightly rent    $61.80)
4

$69.20

2.

Partnered—partner does not have rent increased benefit

3    (fortnightly rent    $103.20)
4

$65.20

3.

Partnered—partner has rent increased benefit

3    (fortnightly rent    $103.20)
4

$32.60

4.

Partnered— member of illness separated couple

3 (fortnightly rent    $61.80)
4

$69.20

5.

Partnered— member of respite care couple

3    (fortnightly rent    $61.80)
4

$69.20

6.

Partnered (partner in gaol)

3    (fortnightly rent    $61.80)
4

$69.20

Note 1:  For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4 of the Social Security Act.

Note 1A: For single person sharing accommodation see section 5A of the Social Security Act.

Note 2:  For partner with a rent increased benefit see point D5.

Note 3:  The rent threshold amounts in column 3 are indexed 6 monthly in line with CPI increases (see Division 13).

Note 4: The Rate B amounts are indexed 6 monthly in line with CPI increases (see Division 13).

Fortnightly rent

 D7 Fortnightly rent is the fortnightly rent paid or payable by the person whose rate of youth training allowance is being calculated.

 Rent paid by a member of a couple

 D8 If a person is a member of a couple and the person’s partner is living with the person in their home, any rent that the person’s partner pays or is liable to pay in respect of the home is to be treated as paid or payable by the person.

Rent paid by a member of an illness separated couple

 D9 If a person is a member of an illness separated couple, any rent that the person’s partner pays or is liable to pay in respect of the premises or lodgings occupied by the person is to be treated as paid or payable by the person.

Note: For illness separated couple see section 4 of the Social Security Act.

 E1 This is how to work out the value of a person’s assets and to work out the person’s assets value limit:

Method statement

Step 1. Work out whether the assets test applies to the person using points E2 to E4.

Step 2. If the assets test applies to the person, work out the person’s assets value limit using point E5.

Step 3. Work out the value of the person’s assets using points E6 to E20.

Step 4. Work out whether the value of the person’s assets is more than the person’s assets value limit.

Persons affected

 E2 The assets test applies to a person unless the person is excluded from the assets test under point E3 or E4.

Exclusion of person if partner receiving certain kinds of income support

 E3 A person is excluded from the application of the assets test if the person is independent but the person’s partner is receiving:

 (a) a pension, benefit or allowance referred to in Schedule 2; or

 (b) newstart allowance, sickness allowance or special benefit under the Social Security Act; or

 (c) a payment under Part 5 or 6 of the Farm Household Support Act 1992; or

 (d) a full-time educational or vocational training allowance from the Commonwealth (including under the AUSTUDY or ABSTUDY scheme); or

 (e) a payment referred to in paragraph 97(1)(c) of the AUSTUDY Regulations.

Exclusion of person if parental income test is not applied

 E4 A person is excluded from the application of the assets test if:

 (a) the person is not independent; but

 (b) in the working out of the rate of youth training allowance payable to the person, the parental income test is not applied because of point F3 (other than paragraph (g)) in MODULE F.

Person’s asset value limit

 E5 A person’s assets value limit is:

 (a) if the person:

 (i) is independent; and

 (ii) is not a member of a couple;

  $111,870 (or, if a higher amount is prescribed by the regulations, that higher amount); or

 (b) if the person:

 (i) is independent; and

 (ii) is a member of a couple;

  $159,470 (or, if a higher amount is prescribed by the regulations, that higher amount); or

 (c) if the person is not independent—$375,630 (or, if a higher amount is prescribed by the regulations, that higher amount).

Value of assets of partner or family members included in certain circumstances

 E6 The value of the assets of a person (the relevant person) is the sum of the following values:

 (a) the value of the assets of the relevant person (disregarding paragraphs (b) and (c));

 (b) if the relevant person is independent—the value of the assets of a person who is the partner of the relevant person;

 (c) if the relevant person is not independent—the value of the assets of each person who is a family member of the relevant person.

Points E7 to E20 apply for the purpose of working out the value of assets of the relevant person and of any person who is the partner, or a family member, of the relevant person.

Assets include property not specifically excluded

 E7 Assets are any kind of property, whether in Australia or elsewhere, unless they are excluded by point E12, E14, E15 or E16.

Disposals for low or nil value

 E8 If a person disposed of an asset in the last 5 years for unreasonably low or no value:

 (a) it is included in the person’s assets; and

 (b) its value is taken to be its value when the person disposed of it less what he or she got for it.

If person reduces value

 E9 If a person reduces the value of an asset directly or indirectly, the value of the asset is taken to be its value before the person acted to reduce it (except if the person reduces the value of a business by reducing the extent to which he or she works in the business).

Debts to person are included

 E10 A person’s assets include any money owed to the person, but do not include any interest on the money that is not yet due.

Assets of trust in which person benefits

 E11 A person’s assets include:

 (a) any benefit to which the person is entitled directly or indirectly out of the assets of a trust; and

 (b) any asset of a trust that the person can deal with directly or indirectly to his or her advantage; and

 (c) any interest in the assets of a trust which has been assigned to someone else but which the person can directly or indirectly control.

Exclusion of principal home

 E12 Any right or interest in a person’s principal home is not included in the person’s assets and no account is taken of an amount received from the sale of a person’s principal home that he or she is likely to use within 12 months of the sale to buy another principal home.

Note:  For principal home see subsections 11(5), (6) and (7) of the Social Security Act.

Exclusion of certain farm assets

 E13 If a drought relief exceptional circumstance certificate referred to in section 8A of the Farm Household Support Act 1992 was issued in respect of a person, or in respect of a family member of a person, and has effect, the person’s assets do not include any asset that is an exempt asset in respect of the person, or in respect of the family member of the person, as the case may be, within the meaning of that Act.

Exclusion of items for use by disabled person

 E14 A person’s assets do not include:

 (a) any personal property (such as a wheelchair) designed for use by a disabled person; or

 (b) any modification to personal property (such as a motor vehicle) to enable it to be used by a disabled person.

Exclusion of debts incurred to obtain or improve an asset

 E15 If a person incurred a debt in order to obtain an asset or to make improvements to it, the value of the asset is reduced by the outstanding amount of the debt.

Exclusion of assets outside person’s control

 E16 Any asset to which a person is entitled but which the person cannot obtain through circumstances beyond the person’s control is not included in the person’s assets.

How business assets are treated

 E17 Assets of a business are treated in accordance with points E18 and E19. For this purpose, a business includes:

 (a) the carrying on of primary production; and

 (b) the provision of professional services.

Interest in business discounted in certain circumstances

 E18 Subject to point E19, 50% of the value of a person’s interest in the assets of a business is disregarded if the person, or his or her partner, is wholly or mainly engaged in the business and the business:

 (a) is owned by the person; or

 (b) is carried on by a partnership of which the person is a member; or

 (c) is carried on by a company of which the person is a member; or

 (d) is carried on by a trustee of a trust in which the person is a beneficiary.

Assets to which discounting does not apply

 E19 Point E18 does not apply to assets of a business that are of any of the following kinds:

 (a) cash on hand, bank deposits, bank bonds, or similar readily realisable assets;

 (b) shares in companies, or rights in relation to shares;

 (c) rights to deal in real or personal property;

 (d) assets leased out by the business, unless leasing is a major activity of the business;

 (e) assets used for private or domestic purposes by the owners of the business.

Evidence of value of assets

 E20 A written statement of the value of an asset, signed by an officer of the Australian Valuation Office, is prima facie evidence of its value. For this purpose, a document purporting to be such a statement is taken to be such a statement, and to have been signed by such an officer, unless the contrary is proved.

Note 1:  For member of a couple and partner see section 4 of the Social Security Act.

Note 2:  For family member see subsection 23(1) of the Social Security Act.

Note 3:   For independent see clause 2 of this Schedule.

Note 4:  For principal home see subsections 11(5) to (7) of the Social Security Act.

Effect of parental income on maximum payment rate

 F1 This is how to work out the effect (if any) of the income of a person’s parent or parents on the person’s maximum payment rate.

Method statement

Step 1. Work out whether the parental income test applies to the person using points F2 and F3.

Step 2. If the parental income test applies to the person, identify:

 (a) the people who are to be regarded as the person’s parents; and

 (b) the relevant accounting period.

 Note 1: For parent see clause 1 of this Schedule.

 Note 2: For relevant accounting period see points F4 to F7.

Step 3. Work out the person’s combined parental income for the relevant accounting period using points F8 to F10

Step 4. Work out the person’s combined parental fringe benefits value for the relevant accounting period using points F11 to F13.

Step 5. Add the amount obtained in Step 3 to the amount obtained in Step 4: the result is called the parental adjusted income.

Step 6. Work out the deductions for independent children using point F15.

Step 7. Take the amount of the deductions from the parental adjusted income: the result is called the parental net income.

Step 8. If the parental net income is equal to or less than:

 (a) $21,660; or

 (b) if a higher amount is prescribed by the regulations—that higher amount;

 (the parental free area), the parental income test does not affect the maximum rate of youth training allowance and Steps 9 to 11 should be disregarded.

Step 9. If the parental net income exceeds the parental free area, work out the amount of the excess and divide it by 4: the result is called the annual parental income excess.

Step 10. Divide the annual parental income excess by 26: the result is called the fortnightly parental income excess

Step 11. The person’s reduction for parental income is the fortnightly parental income excess.

Note 1: For family member see subsection 23(1) of the Social Security Act.

Note 2:  For fringe benefits year see section 58.

Note 3: For dependent child see section 5 of the Social Security Act and point F15.

Persons affected by the parental income test

 F2 Subject to point F3, the parental income test applies to the person if the person is not independent.

Parent receiving Commonwealth benefit

 F3 The parental income test does not apply to the person while a parent of the person:

 (a) gets newstart allowance or sickness allowance or gets special benefit under the Social Security Act; or

 (b) gets a payment under the Commonwealth scheme known as the TCF Special Allowance; or

 (c) gets a payment of a pension, benefit or allowance referred to in Schedule 2; or

 (d) gets a payment under Part 5 or 6 of the Farm Household Support Act 1992; or

 (e) gets AUSTUDY or ABSTUDY and:

 (i) also gets dependent spouse allowance under AUSTUDY or ABSTUDY; or

 (ii) has a partner who gets AUSTUDY or ABSTUDY; or

 (iii) is a single parent; or

 (f) gets a payment under paragraph 91(1)(ab) or (d) of the AUSTUDY Regulations; or

 (g) is a disadvantaged person for the purposes of sections 5B and 5D of the Health Insurance Act 1973.

Relevant accounting period

 F4 Subject to points F5, F6 and F7, the relevant accounting period, in relation to the person at a particular time (the relevant time), is the accounting period ending on the last 30 June before the calendar year in which the relevant time occurs.

If parent adopts substituted accounting period

 F5 If a parent of the person uses section 18 of the Income Tax Assessment Act to adopt an accounting period that ends on a day other than 30 June, the relevant accounting period in relation to the person at the relevant time is the most recent accounting period so adopted that ended before the calendar year in which the relevant time occurs.

Relevant accounting period if parent derived exempt income from foreign country

 F6 If:

 (a) point F5 does not apply to a person at the relevant time; and

 (b) the income of a parent of the person for the period that, apart from this point, would be the relevant accounting period consists principally of income derived in one foreign country; and

 (c) the law of that country levies income tax based on an accounting period that ends on a day other than 30 June; and

 (d) the parent’s income derived in that country is exempt income under the Income Tax Assessment Act;

the relevant accounting period in relation to the person at the relevant time is the most recent accounting period referred to in paragraph (c) that ended before the calendar year in which the relevant time occurs.

Variation of accounting period if parental income falls

 F7 If the amount that would be the person’s parental adjusted income for the accounting period ending in the calendar year before the calendar year in which the relevant time occurs:

 (a) is substantially less than the person’s adjusted parental income for the period that would be the relevant accounting period apart from this point; and

 (b) is likely to continue to remain substantially less for 2 years after the later of the first day of the period referred to in paragraph (a) and the day when the parent’s income reduced;

the relevant accounting period in relation to the person at the relevant time is the accounting period ending in the calendar year in which the relevant time occurs.

Parental income

 F8 The person’s combined parental income for the relevant accounting period is the income of his or her parent, or the total income of his or her parents, as the case requires, for that period.

What is included in income

 F9 The income of a parent of the person for the relevant accounting period comprises:

 (a) the parent’s taxable income within the meaning of section 4-15 of the Income Tax Assessment Act 1997 for the period; and

 (b) any other income derived by the parent during the period on which income tax is payable to the government of a foreign country; and

 (c) any amount received during the period:

 (i) by, or on behalf of, the parent for the maintenance of the parent or of a dependant of the parent; or

 (ii) by a dependant of the parent for the maintenance of the dependant; and

 (d) any net property loss of the parent for the period.

Note For net property loss see subsection 58(1).

Income reduced by maintenance

 F10 A parent’s income is reduced by maintenance paid by the parent:

 (a) for the upkeep of a child of the parent if the parent does not have care of the child; or

 (b) to a former partner of the parent.

Combined parental fringe benefits value

 F11 The person’s combined parental fringe benefits value for the relevant accounting period is:

 (a) if the person had only one parent in that period—the amount (if any) of the excess fringe benefits value for that parent for that period; or

 (b) if the person had more than one parent in that period—the sum of the respective amounts (if any) of the excess fringe benefits values for the parents for that period.

For the purposes of this point, the excess fringe benefits value for a parent of the person for the relevant accounting period is the amount (if any) by which the total of the values of the fringe benefits received by that parent in the most recent fringe benefits year that ended before the end of the relevant accounting period (as worked out under points F12 and F13) is more than $1,000.

How to work out value of fringe benefits

 F12 The fringe benefits received by a parent of the person comprise any or all of the following benefits:

 (a) a car benefit within the meaning of Part 2 of Schedule 3 that is not an exempt car benefit within the meaning of Division 2 of that Part;

 (b) a health insurance benefit within the meaning of Part 3 of that Schedule;

 (c) a housing benefit within the meaning of Part 4 of that Schedule that is not an exempt housing benefit within the meaning of Division 2 of that Part;

 (d) a loan benefit within the meaning of Part 5 of that Schedule that is not an exempt loan benefit within the meaning of Division 2 of that Part;

 (e) a school fees benefit within the meaning of Part 6 of that Schedule;

whether the benefits are received in or outside Australia, and the value of a fringe benefit is, subject to point F13, the value worked out in accordance with the relevant provision of that Schedule.

Value if statement provided by employer

 F13 If a parent of the person gives to the Department of Social Security a statement by the parent’s employer, or statements by each of the parent’s employers, of the amount for which tax is payable by the employer, or employers, under the Fringe Benefits Tax Assessment Act 1986 for fringe benefits that are provided by the employer or employers to the parent in the most recent fringe benefits year that ended before the end of the relevant accounting period, that amount, or the total of those amounts, is taken to be the value of the fringe benefits received by the parent in that year.

Parental adjusted income

 F14 The sum of the person’s combined parental income, and the person’s combined parental fringe benefits value, for the relevant accounting period is the person’s parental adjusted income.

Deductions for dependent children

 F15 The deduction for a dependent child of a person’s parent at the relevant time is:

 (a) $3,700 (or, if a higher amount is prescribed by the regulations, that higher amount) for a child who:

 (i) is at least 16 years of age but is under 23 years of age; and

 (ii) is undertaking full-time study; and

 (iii)  does not qualify for the independent living allowance under the AUSTUDY Regulations; and

 (iv) is not receiving a pension, benefit or allowance referred to in Schedule 2; and

 (b) $3,700 (or, if a higher amount is prescribed by the regulations, that higher amount) for a child in respect of whom a boarding allowance or second home allowance is payable under the Assistance for Isolated Children scheme; and

 (c) $1,200 (or, if a higher amount is prescribed by the regulations, that higher amount) for a child who:

 (i) is under 16 years of age; and

 (ii) is not a child referred to in paragraph (b); and

 (d) $2,500 (or, if a higher amount is prescribed by the regulations, that higher amount) for a child who:

 (i) is under 16 years of age; and

 (ii) is additional to the child referred to in paragraph (c); and

 (iii) is not a child referred to in paragraph (b).

For the purposes of this point, a child is not a dependent child of a person’s parent if the parent pays maintenance for the child.

Parental net income

 F16 The person’s parental net income is the amount obtained after deducting the total amount of the deductions for the dependent children of the person’s parents from the person’s parental adjusted income.

Annual parental income excess

 F17 If the person’s parental net income exceeds the parental free area, the amount of the excess divided by 4 is the person’s annual parental income excess.

Rounding off

 F18 For the purposes of point F17:

 (a) if the amount obtained by dividing the amount of the excess referred to in that point by 4 is an amount of dollars and cents—the amount of cents is to be disregarded; and

 (b) if the amount so obtained is less than $1—the amount obtained is taken to be nil.

Fortnightly parental income excess

 F19 The person’s annual parental income excess divided by 26 is the person’s fortnightly parental income excess.

 Reduction for parental income

 F20 The person’s reduction for parental income is the amount equal to the person’s fortnightly parental income excess.

Effect of ordinary income on maximum payment rate

 G1 This is how to work out the effect of a person’s ordinary income, and the ordinary income of a partner of the person, on the person’s maximum payment rate:

Method statement

Step 1. Work out the amount of the person’s ordinary income on a fortnightly basis.

 Note 1:  For the treatment of the ordinary income of a partner who is receiving a social security pension or a service pension see points G2 and G4.

 Note 2:  For the treatment of amounts received from friendly societies see point G5.

Step 2. If the person is a member of a couple, work out the partner income free area using point G12.

 Note: The partner income free area is the maximum amount of ordinary income the person’s partner can have without affecting the person’s benefit.

Step 3. Use paragraphs G13(a), (b) and (c) to work out whether the person has a partner income excess.

Step 4. If the requirements of paragraphs G13(a), (b) and (c) are not satisfied, the person’s partner income excess is nil.

Step 5. If the requirements of paragraphs G13(a), (b) and (c) are satisfied, the person’s partner income excess is the partner’s ordinary income less the partner income free area.

Step 6. Use the person’s partner income excess to work out the person’s partner income reduction using point G14.

Step 7. Work out whether the person’s ordinary income exceeds the person’s ordinary income free area under point G15.

 Note: A person’s ordinary income free area is the maximum amount of ordinary income the person can have without affecting the person’s benefit rate.

Step 8. If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

Step 9. If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Step 10. Use the person’s ordinary income excess to work out the person’s ordinary income reduction using points G17, G18 and G19.

Step 11. Add the person’s partner income reduction and ordinary income reduction: the result is the person’s income reduction referred to in Step 9 of point A1 in MODULE A.

Note 1: For ordinary income see subsection 8(1) of the Social Security Act. 

Note 2: The application of the income test is affected by provisions concerning:

      the general concept of ordinary income (sections 174 and 175);

     business income (sections 176 and 177);

     deemed income from financial assets (sections 178 to 185);

     income from retirement funds and annuities (sections 186 to 196);

     disposal of income (sections 215 to 220);

Ordinary income of members of certain couples

 G2 Subject to point G4, if a person is a member of a couple and the person’s partner is receiving a social security pension, a service pension or a rehabilitation allowance, the person’s ordinary income is taken to be one half of the sum of:

 (a) the amount that would be the person’s ordinary income if he or she were not a member of a couple; and

 (b) the amount that would be the ordinary income of the person’s partner if the partner were not a member of a couple.

Friendly society amounts

 G5 The ordinary income of a person to whom, or to whose partner, youth training allowance is payable and who, or whose partner, under Subdivision BAA of Division 2 of Part 8, is not required to satisfy the activity test is not to include any amount received by the person or partner from an approved friendly society in respect of the incapacity because of which the person or partner is qualified for the youth training allowance or is not required to satisfy the activity test, as the case may be.

Termination payments

 G6 Subject to points G6A to G6K (inclusive), if:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum payment from the person’s former employer;

the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.

Rollover of lump sum leave payments

 G6A If:

 (a) a person’s employment has been terminated; and

 (b) as a result the person is entitled to a lump sum leave payment from the person’s former employer; and

 (c) the person rolls over the lump sum leave payment into an approved deposit fund, a superannuation fund or a deferred annuity;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of Module G of Schedule 1.

 

Certain leave payments taken to be ordinary income—employment continuing

 G6B If:

 (a) a person is employed; and

 (b) the person is on leave for a period; and

 (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of the leave period;

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

Certain leave payments taken to be ordinary income—employment terminated

 G6BA If:

 (a) a person’s employment has been terminated; and

 (b) the person receives a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the payment relates.

Start of income maintenance period—employment continuing

 G6C If the person is covered by point G6B, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated

 G6CA If the person is covered by point G6BA, the income maintenance period starts, subject to point G6E, on the day the person is paid the leave payment.

More than one leave payment on a day

 G6D If:

 (a) the person is covered by point G6BA; and

 (b) the person receives more than one leave payment on a day;

the income maintenance period is worked out by adding the leave periods to which the payments relate.

Commencement of income maintenance period where there is a second leave payment—employment terminated

 6GE If a person who is covered by point G6BA is subject to an income maintenance period (the first period) and the person is paid another leave payment during that period (the second leave payment), the income maintenance period for the second leave payment commences the day after the end of the first period.

Leave payments in respect of periods longer than a fortnight

 G6F If:

 (a) a person receives a leave payment; and

 (b) the payment is in respect of a period of leave greater than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

 (c) dividing the amount received by the number of days in the period of leave to which the payment relates (the daily rate); and

 (d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period of leave.

Secretary may determine in certain circumstances that the whole or part of an income maintenance period does not apply

 G6G The Secretary may determine that the whole or any part of an income maintenance period that would, apart from this point, apply to the person does not apply to the person if the Secretary is satisfied that:

 (a) the application of the income maintenance period to the person would cause the person severe financial hardship; and

 (b) the circumstances that would cause the severe financial hardship were not reasonably foreseeable by the person.

When a person receives a leave payment

 G6H For the purposes of points G6A to G6G (inclusive), a person (the first person) is taken to receive a leave payment if the payment is made to another person:

 (a) at the direction of the first person or a court; or

 (b) on behalf of the first person; or

 (c) for the benefit of the first person; or

the first person waives or assigns the first person’s right to receive the payment.

 

Single payment in respect of different kinds of leave—employment terminated

 G6J If a person who is covered by point G6BA receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points G6A to G6H (inclusive), each part of the payment that is in respect of a different kind of leave is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the leave periods to which the separate payments relate.

Definitions

 G6K In points G6A to G6K (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.

payment fortnight means a fortnight in respect of which a youth training allowance is paid, or would be paid, apart from the application of an income maintenance period, to a person.

roll-over, in relation to a lump sum leave payment, has the same meaning as rollover in 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.

Ordinary income includes certain periodical payments from relatives

 G7 Subject to point G8 (and despite paragraph 8(8)(z) of the Social Security Act), a person’s ordinary income for the purposes of this MODULE includes a periodical payment or benefit by way of gift or allowance from the father, mother, son, daughter, brother or sister of the person.

Board and lodging

 G8 A person’s ordinary income is not to include a payment to the person for board or lodging provided by the person to the person’s father, mother, son, daughter, brother or sister.

Ordinary income generally taken into account when first earned, derived or received

 G9 Subject to points G10 and G11, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

Ordinary income received at intervals longer than one fortnight

 G10 Subject to points G6A to G6K (inclusive), if:

 (a) a person receives a number of ordinary income payments; and

 (b) each payment is in respect of a period (the work period) that is greater than a fortnight; and

 (c) there is reasonable predictability or regularity as to the timing of the payments; and

 (d) there is reasonable predictability as to the quantum of the payments;

the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by:

 (e) dividing the amount received by the number of days in the work period (the daily rate); and

 (f) multiplying the daily rate by the number of days in the fortnight that are also within the work period.

Note: For ordinary income see subsection 8(1) of the Social Security Act. 

Payment of arrears of periodic compensation payments

 G11 If:

 (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving youth training allowance; and

 (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by:

 (c) dividing the amount received by the number of days in the periodic payments period (the daily rate); and

 (d) multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.

Note: For periodic payments period see section 17 of the Social Security Act.

Partner income free area

 G12 The partner income free area for a person is:

 (a) if the person is not receiving a social security benefit or a youth training allowance—the amount of income of the person (rounded up to the nearest dollar) beyond which job search allowance would not be payable to the person if the person were qualified for a job search allowance; or

 (b) if the person is receiving a social security benefit or a youth training allowance—the amount of income of the person (rounded up to the nearest dollar) beyond which that benefit or allowance would not be payable to the person.

Partner income excess

 G13 If:

 (a) a person is a member of a couple; and

 (b) the person’s partner is not receiving a social security pension, service pension or a rehabilitation allowance; and

 (c) the partner’s ordinary income exceeds the partner income free area for the partner;

then:

 (d) the person has a partner income excess; and

 (e) the person’s partner income excess is the amount by which the partner’s ordinary income exceeds the partner income free area.

Partner income reduction

 G14 If a person has a partner income excess, the person’s partner income reduction is an amount equal to 70% of the part of the partner’s ordinary income that exceeds the partner income free area.

Ordinary income free area

 G15 A person’s ordinary income free area is $60.

Ordinary income excess

 G16 If a person’s ordinary income exceeds the person’s ordinary income free area:

 (a) the person has an ordinary income excess; and

 (b) the person’s ordinary income excess is the amount by which the person’s ordinary income exceeds the person’s ordinary income free area.

Ordinary income reduction

 G17 If a person has an ordinary income excess, the person’s ordinary income reduction is the sum of:

 (a) the person’s lower range reduction (see point G18); and

 (b) the person’s upper range reduction (if any) (see point G19).

Lower range reduction

 G18 The person’s lower range reduction is an amount equal to 50% of the part of the person’s ordinary income excess that does not exceed $80.

Upper range reduction

 G19 The person’s upper range reduction is an amount equal to 70% of the part (if any) of the person’s ordinary income excess that exceeds $80.

Remote area allowance—person physically in remote area

 H1 An amount by way of remote area allowance is to be added to a person’s rate of youth training allowance if:

 (a) the person’s rate of youth training allowance apart from this point is greater than nil; and

 (b) the person’s usual place of residence is situated in the remote area; and 

 (c) the person is physically present in the remote area.

Note 1: For remote area see subsection 14(1) of the Social Security Act.

Note 2: A person may be considered to be physically present in a remote area during temporary absences—see subsection 14(2) of the Social Security Act.

Rate of remote area allowance

 H2 The rate of remote area allowance payable to a person is worked out using Table H. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each AFP child of the person.

TABLE H
REMOTE AREA ALLOWANCE

column 1

item

column 2

person’s family
situation

column 3

basic allowance

column 4
additional allowance for each AFP child

1.

Not member of couple

$17.50

$7.00

2.

Partnered

$15.00

$7.00

3.

Member of illness
separated couple

$17.50

$7.00

4.

Partnered (partner in
gaol)

$17.50

$7.00

Note 1: Item 4 includes illness separated couples.

Note 2: For AFP child see section 6 of the Social Security Act.

Meaning of remote area allowance

 H3 In Table H, remote area allowance means an amount added to a person’s youth training allowance by way of remote area allowance.

In remote area

 H4 For the purposes of Table H, a person is in the remote area if:

 (a) the person’s usual place of residence is in the remote area; and

 (b) the person is physically present in the remote area.

Dependent children must be physically present in Australia

 H5 Additional allowance is not payable for a dependent child unless the dependent child is physically present in Australia. 

Special rule if partner has an AFP child but is not receiving a pension

 H6 If:

 (a) a person who is a member of a couple is qualified for an amount by way of additional allowance; and

 (b) the person’s partner is not receiving a youth training allowance or a pension or benefit under the Social Security Act; and

 (c) the person’s partner has an AFP child;

the child is taken, for the purposes of this MODULE, to be an AFP child of the person.

Special rule if partner has an AFP child but is not receiving additional allowance for the AFP child

 H7 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

 (b) the person’s partner has an AFP child; and

 (c) the person’s partner is not receiving additional allowance for the AFP child;

the child is taken, for the purposes of this MODULE, to be an AFP child of the person.

 

Schedule 2—Pensions, Benefits and Allowances

Modules E and F

Item No.

TYPE OF PENSION, BENEFIT AND ALLOWANCE

1

Age pension

(Part 2.2 of the Social Security Act)

2

Service pension (age)

(Section 36 of the Veterans’ Entitlements Act)

3

Defence widow’s pension—if the widow has no dependent children

(Section 70 of the Veterans’ Entitlements Act)

4

War widow’s pension—if the widow has no dependent children

(Section 13 of the Veterans’ Entitlements Act)

5

Bereavement allowance

(Part 2.7 of the Social Security Act)

6

Wife pension—if husband gets age pension

(Part 2.4 of the Social Security Act)

7

Service pension (partner)—if husband gets service pension (age)

(Section 38 of the Veterans’ Entitlements Act)

8

Mature age allowance

(Part 2.12A of the Social Security Act)

 9

Mature age partner’s allowance

(Part 2.12A of the Social Security Act)

10

Rehabilitation allowance

(Section 35 of Schedule 1A to the Social Security Act)

11

Commonwealth allowance

(New Enterprise Incentive Scheme (NEIS))

12

Carer payment

(Part 2.5 of the Social Security Act)

13

Service pension (carer)

(Section 39 of the Veterans’ Entitlements Act)

14

Defence widow’s pension—if the widow has a dependent child

(Section 70 of the Veterans’ Entitlements Act)

15

Disability support pension

(Part 2.3 of the Social Security Act)

16

Service pension (invalidity)

(Section 37 of the Veterans’ Entitlements Act)

 

 

 

17

Parenting payment (other than nonbenefit PP (partnered))

Part 2.10

17A

Partner allowance

Part 2.15A

18

Widow B pension

(Part 2.8 of the Social Security Act)

19

Tuberculosis allowance

(Section 9 of the Tuberculosis Act 1948)

20

War widow’s pension—if the widow has a dependent child

(Section 13 of the Veterans’ Entitlements Act)

21

Wife pension—if husband gets a disability support pension

(Part 2.4 of the Social Security Act as in force on 11 November 1991)

22

Wife’s service pension—if husband gets an invalidity service pension

(Section 40 of the Veterans’ Entitlements Act)

23

Special benefit

(Part 2.15 of the Social Security Act) 

24

Commonwealth allowance for full-time vocational training, except:

(a)  AUSTUDY

(b)  an allowance under the Veteran’s Children Education Scheme;

(c)  an allowance under:

 (i)  The Assistance for Isolated Children Scheme; or

 (ii)  the ABSTUDY Scheme; or

 (iii) The Aboriginal Overseas Study Assistance Scheme.





(Part 7 of the Veterans’ Entitlements Act)

25

Payments under paragraphs 91(1)(a) and (c) and 97(1)(b) and (ba) of the AUSTUDY Regulations

 

 

Schedule 3Fringe Benefits

Module F, Schedule 1

In this Schedule, unless the contrary intention appears:

associate has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

employee:

 (a) means a person’s parent or a person’s partner who is in employment; and

 (b) includes a person who:

 (i) holds or performs the duties of an appointment, office or position under the Constitution or under a law of the Commonwealth or of a State or Territory; or

 (ii) is otherwise in the employment of the Commonwealth or of a State or Territory; or

 (iii) is a member of the Commonwealth Parliament or of a State Parliament or a Territory legislature.

employer:

 (a) means a person who pays, or is liable to pay, salary or wages to an employee; and

  (b) includes:

 (i) in respect of an unincorporated body of persons, except a partnership—the manager or other principal officer of that body; and

 (ii) in respect of a partnership—each partner; and

 (iii) the Commonwealth or a State or Territory or an authority of the Commonwealth or of a State or Territory.

employment, in relation to a person, means the holding of any office or appointment, the performance of any functions or duties, the engaging in of any work or the doing of any act or thing that results, will result or has resulted in the person being treated as an employee.

market exchange rate, in relation to a foreign currency, means the on-demand airmail buying rate for the currency that is available at the Commonwealth Bank of Australia.

place of residence, in relation to a person, means:

 (a) a place where the person resides; or

 (b) a place where the person has sleeping accommodation; 

whether on a permanent or temporary basis and whether or not on a shared basis.

recipient, means a person’s parent or a person’s partner.

salary or wage, means salary, wages, commission, bonuses or allowances paid (whether at piece-work rates or otherwise) to an employee in the capacity of employee.

working day, in relation to an office of the Commonwealth Bank of Australia in a place, means a day (except a Saturday, a Sunday or a day that is a public holiday at that place) when the office is open to the public for business.

2  Foreign currency rates to be used in calculations

 (1) If the value of a fringe benefit is expressed in a foreign currency, the value of the fringe benefit is to be calculated in Australian currency using the market exchange rate for 1 July in the relevant fringe benefits year.

 (2) If there is no market exchange rate for 1 July in the relevant fringe benefits year, the market exchange rate to be used is the market exchange rate that applied on the last working day before that 1 July.

In this Part, unless the contrary intention appears:

arrangement means:

 (a) an agreement, arrangement, understanding, promise or undertaking:

 (i) whether express or implied; and

 (ii) whether or not enforceable, or intended to be enforceable, by any legal proceedings; and

 (b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.

car means a motor vehicle that is a road vehicle designed to carry a load of less than 1 tonne, or fewer than 9 passengers, but does not include a motor cycle or similar vehicle.

private use, in relation to:

 (a) a car; and

 (b) an employee or an associate of an employee;

means use of the car by the employee or associate that is not solely within the employee’s employment.

work-related travel, in relation to an employee, means:

 (a) travel by the employee between:

 (i) the employee’s place of residence; and

 (ii) the employee’s place of employment or any other place from, or at, which the employee performs the duties of his or her employment; or

 (b) travel by the employee that is incidental to travel in the course of performing the duties of his or her employment.

(1) An employee receives a car benefit if:

 (a) a car under the control of another person (the provider):

 (i) is applied to a private use by the employee or an associate of the employee; or

 (ii) is taken under subclause (2), (3) or (4) to be available for the private use of the employee or an associate of the employee; and

 (b) either:

 (i) the provider is the employer, or an associate of the employer, of the employee; or

 (ii) the car is applied or available in that way under an arrangement between:

 (A) the provider or another person; and

 (B) the employer or an associate of the employer.

 (2) A car is taken to be available at a particular time for the private use of the employee or an associate of the employee if:

 (a) the car is under the control of a person who is:

 (i) the employer; or

 (ii) an associate of the employer; or

 (iii) another person with or for whom the employer or associate has an arrangement relating to the use or availability of the car; and

 (b) the car is garaged or kept at or near a place of residence of the employee or of an associate of the employee.

 (3) A car is taken to be available at a particular time for the private use of the employee or an associate of the employee if:

 (a) the car is held by a person who is:

 (i) the employer; or

 (ii) an associate of the employer; or

  (iii) another person with or for whom the employer or associate has an arrangement relating to the use or availability of the car; and

 (b) the car is not at business premises of:

 (i) the employer; or

 (ii) an associate of the employer; or

 (iii)  some other person with or for whom the employer or associate has an arrangement relating to the use or availability of the car; and

 (c) either:

 (i) the employee is entitled to apply the car to a private use at that time; or

 (ii) the employee is not performing the duties of his or her employment at that time and has custody or control of the car; or

 (iii) an associate of the employee is entitled to use the car at that time; or

 (iv) an associate of the employee has control of the car at that time.

 (4) For the purposes of subclause (3), if a prohibition on the use of a car, or on the application of a car for a private use, by a person is not consistently enforced, the person is taken to be entitled to use the car, or to apply the car to a private use, despite the prohibition.

 (5) For the purposes of this clause, a car that is let on hire to a person under a hire-purchase agreement is taken:

 (a) to have been bought by the person when the person first took the car on hire; and

 (b) to have been owned by the person in the fringe benefits year concerned.

 (6) A reference in this Part to a car held by the provider does not include a reference to:

 (a) a taxi let on hire to the provider; or

 (b) a car let on hire to the provider under an agreement of a kind that is ordinarily entered into by persons taking cars on hire on an hourly, daily, weekly or other short-term basis.

 (7) Paragraph (6)(b) does not apply if the car has been, or may reasonably be expected to be, on hire under successive agreements of a kind that results in substantial continuity of the hiring of the car.

 (1) A car benefit provided in respect of the employment of the employee is an exempt car benefit if:

 (a) the car is:

 (i) a taxi, panel van or utility truck; or

 (ii) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers); and

 (b) the only private use of the car at a time when the benefit was provided was:

 (i) work-related travel of the employee; or

 (ii) other minor, infrequent and irregular private use by the employee or an associate of the employee.

 (2) A car benefit provided as a result of the employment of the employee is an exempt car benefit if the car was unregistered when the car was under the control of the employee.

 (1) The value of a car benefit is calculated as follows: 

Method statement

Step 1. Work out the engine capacity of the car and go to the relevant Part of the Car Benefits Value Table.

Step 2. Work out how old the car is and go to the relevant row in the Table.

Step 3. Work out how many complete months in the relevant fringe benefits year the person had or will have the car benefit and go to the relevant column in the Table: the number set out at the intersection of that row and that column is the value of the car benefit for the period of use or availability.

Note: If the person is a member of a couple, the value of the car benefit must be halved in certain circumstances (see subclause (2)).

 

car benefits value table

Item

Car age
(in years)

Period of use (in completed months)

PART A—Car engine size up to 1600cc

 

 

1

2

3

4

5

6

7

8

9

10

11

12

 

 

$

$

$

$

$

$

$

$

$

$

$

$

1

1

93.8

188

281

376

469

563

656

750

844

938

1031

1125

2

2

83.6

168

252

336

420

504

588

672

756

840

923.8

1008

3

3

74.2

148

223

297

371

445

520

594

668

742

816.4

890.6

4

4

64.5

129

193

258

322

387

451

516

580

645

709

773.4

5

5

54.7

109

164

219

273

328

383

438

492

547

601.6

656.3

6

6

44.9

89.8

135

180

225

270

314

359

404

449

494.1

539.1

7

7

35.2

70.3

105

141

176

211

246

281

316

352

386.7

421.9

8

8

25.4

50.8

76.2

102

127

152

178

203

229

254

279.3

304.7

9

9

15.6

31.3

46.9

62.5

78.1

93.8

109

125

141

156

171.9

187.5

10

10+

5.86

11.7

17.6

23.4

29.3

35.2

41

46.9

52.7

58.6

64.45

70.31

 

PART B—Car engine size 1601cc to 2850cc

 

 

1

2

3

4

5

6

7

8

9

10

11

12

 

 

$

$

$

$

$

$

$

$

$

$

$

$

11

1

229

458

688

917

1146

1375

1604

1833

2063

2292

2521

2750

12

2

210

422

633

1055

1266

1477

1688

1898

2109

2320

2531

1008

13

3

193

385

578

771

964

1156

1349

1542

1734

1927

2120

2313

14

4

174

349

523

698

872

1047

1221

1396

1570

1745

1919

2094

15

5

156

313

469

625

781

938

1094

1250

1406

1563

1719

1875

16

6

138

276

414

552

690

828

966

1104

1242

1380

1518

1656

17

7

120

240

359

479

599

719

839

958

1078

1198

1318

1438

18

8

102

203

305

406

508

609

711

813

914

1016

1117

1219

19

9

83.3

167

250

333

417

500

583

667

750

833

916.7

1000

20

10+

65.1

130

195

260

326

391

456

521

586

651

716.1

781.3

 

PART C—Car engine size more than 2850cc

 

 

1

2

3

4

5

6

7

8

9

10

11

12

 

 

$

$

$

$

$

$

$

$

$

$

$

$

21

1

354

708

1063

1417

1771

2125

2479

2833

3188

3542

3896

4250

22

2

327

656

984

1313

1641

1969

2297

2625

2953

3281

3609

3938

23

3

302

604

906

1208

1510

1813

2115

2417

2719

3021

3323

3625

24

4

276

552

828

1104

1380

1656

1932

2208

2484

2760

3036

3313

25

5

250

500

750

1000

1250

1500

1750

2000

2250

2500

2750

3000

26

6

224

448

672

896

1120

1344

1568

1792

2016

2240

2464

2688

27

7

198

396

594

792

990

1188

1385

1583

1781

1979

2177

2375

28

8

172

344

516

688

859

1031

1203

1375

1547

1719

1891

2063

29

9

146

292

438

583

729

875

1021

1167

1313

1458

1604

1750

30

10+

120

240

359

479

599

719

839

958

1078

1198

1318

1438

 (2) If:

 (a) the person is a member of a couple; and

 (b) the person’s partner receives a car benefit in the relevant fringe benefits year; and

 (c) the person’s and the partner’s car benefits relate to the same car for the same period;

the value of the car benefit is halved.

If:

 (a) a person pays an amount to a private health insurance fund, either directly or indirectly, for the benefit of a recipient; and

 (b) the person is the employer, or an associate of the employer, of the recipient; and

  (c) the amount is for the cost of private health insurance; and

 (d) the private health insurance covers:

 (i) the recipient; or

 (ii) the recipient’s partner; or

 (iii) a dependant of the recipient or of the recipient’s partner;

the payment is taken to be a health insurance benefit provided by the person to the recipient.

The value of a health insurance benefit is the amount of the payment that constitutes the health insurance benefit.

In this Part, unless the contrary intention appears:

census population, in relation to an urban centre, means the census count on an actual location basis of the population of the urban centre stated in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981 that were published by the Australian Statistician in the document entitled Persons and Dwellings in Local Government Areas and Urban Centres.

disadvantaged person means a person who is intellectually, psychiatrically or physically handicapped.

eligible urban area means:

 (a) an area that:

 (i) is situated in an area described in Schedule 2 to the Income Tax Assessment Act; and,

 (ii) is an urban centre with a census population of 28,000 or more; or

 (b) another area that is an urban centre with a census population of 14,000 or more.

Note: See paragraph 12(7)(c).

housing right, in relation to a person, means a lease or licence granted to the person to occupy or use a unit of accommodation, to the extent that the lease or licence is in force when the unit of accommodation is the person’s usual place of residence.

mature person means a person who has reached the age of 60 years.

residential premises means a house or hostel used exclusively for the provision of residential accommodation to:

 (a) mature persons or disadvantaged persons and dependent children of mature persons or disadvantaged persons; and

 (b) persons the duties of whose employment consist of, or consist principally of, caring for persons referred to in paragraph (a); and

 (c) partners and children of persons referred to in paragraph (b).

surface route means a route between 2 places that is not an air route.

unit of accommodation includes:

 (a) a house, flat or home unit; and

 (b) accommodation in a house, flat or home unit; and

 (c) accommodation in a hotel, hostel, motel or guesthouse; and

 (d) accommodation in a bunkhouse or other living quarters; and

 (e) accommodation in a ship, vessel or floating structure; and

 (f) a caravan or other mobile home.

urban centre means an area described as an urban centre or bounded locality in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981 that were published by the Australian Statistician in the document entitled “Persons and Dwellings in Local Government Areas and Urban Centres”.

A housing right granted to a recipient by a person who is the employer, or an associate of the employer, of the recipient is taken to be a housing benefit provided by the person to the recipient.

If, in a period:

 (a) the employer of a recipient is:

 (i) the Commonwealth, or a State or Territory, or a Commonwealth, State or Territory authority; or

 (ii) a religious institution; or

 (iii) a non-profit company;

  whose activities consist of, or include, caring for mature persons or disadvantaged persons; and

 (b) the duties of the recipient’s employment consist of, or consist principally of, caring for mature persons or disadvantaged persons; and

 (c) in the performance of those duties the recipient lives, together with mature persons or disadvantaged persons, in residential premises of the employer; and

 (d) the fact that the recipient lives in those premises is directly related to the provision, in the course of the performance of the duties of the recipient’s employment, of care to the mature persons or disadvantaged persons living in those premises;

any benefit arising from the provision in that period of that accommodation to the recipient, or to the recipient and an partner or dependant of the recipient who resides in those premises with the recipient, is an exempt housing benefit.

 (1) The value of a housing benefit is calculated as follows:

Method statement

Step 1. Work out the location of the unit of accommodation and go to the appropriate row of the Housing Benefits Value Table.

Step 2. Work out the type of accommodation and go to the appropriate column in the Table: the number set out at the intersection of that row and that column is the amount of the weekly market rent of the unit of accommodation.

Note: If the recipient is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subclause (4)).

Step 3. Work out how many complete weeks in the relevant fringe benefits year the unit of accommodation was, or will be, available to the recipient.

Step 4. Multiply the weekly market rent of the unit of accommodation by the number obtained in Step 3: the result is the provisional value of the housing benefit.

Step 5. Work out the allowable rent for the unit of accommodation in the relevant fringe benefits year using subclause (3).

Note: If the recipient is a member of a couple, the allowable rent is to be halved in certain circumstances (see subclause (4)).

Step 6. Take the allowable rent away from the provisional value of the housing benefit: the result is the value of the housing benefit.

 (2) The following table is to be used in calculating the value of a housing benefit:

HOUSING BENEFITS VALUE TABLE

 

Type of accommodation

Location

House, flat or home unit

Any other unit

 

 

 

of

accommodation

 

3 or more bedrooms

$

1-2 bedrooms

$

$

Metropolitan

140

120

85

Non-metropolitan

100

90

70

Special housing location

80

80

25

Outside Australia

140

120

85

Note: For the meaning of metropolitan, non-metropolitan location and special housing location, see subclauses (5), (6) and (7).

 (3) The allowable rent is the amount of rent that is or was payable for the unit of accommodation in the relevant fringe benefits year by:

 (a) if the recipient is not a member of a couple—the recipient; or

 (b) if the recipient is a member of a couple—the recipient and the recipient’s partner.

 (4) If:

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

 (b) the recipient’s partner receives a housing benefit in the relevant fringe benefits year; and

 (c) the recipient’s, and the recipient’s partner’s, housing benefits relate to the same unit of accommodation for the same period;

the weekly market rent obtained in Step 2 in subclause (1) and the allowable rent obtained in Step 5 in that subclause are both halved.

 (5) Canberra and the capital cities of each State, and of the Northern Territory, are metropolitan locations.

 (6) A unit of accommodation is in a non-metropolitan location if the unit of accommodation:

 (a) is in Australia; and

 (b) is not in a metropolitan location; and

 (c) is not in a special housing location.

 (7) A unit of accommodation is in a special housing location if the unit is in Australia and one of the following paragraphs applies to it:

 (a) it is in an area that is:

 (i) described in Schedule 2 to the Income Tax Assessment Act; and

 (ii) an urban centre with a census population of less than 28,000;

 (b) it is in an area that is:

 (i) not described in Schedule 2 to the Income Tax Assessment Act; and

 (ii) an urban centre with a census population of less than 14,000;

 (c) at the date of commencement of this Schedule, it is not:

 (i) less than 40 kilometres, by the shortest practicable surface route, from the centre point of an eligible urban area with a census population of less than 130,000; or

 (ii) less than 100 kilometres, by the shortest practicable surface route, from the centre point of an eligible urban area with a census population of more than 130,000.

 (8) For the purposes of paragraph (7)(c), the distance, by the shortest practicable surface route, between a location (the tested location) and the centre point of an eligible urban area is:

 (a) if there is only 1 location within the eligible urban area from which distances between the eligible urban area and other places are usually measured—the distance, by the shortest practicable surface route, between the tested location and that location; and

 (b) if there are 2 or more locations within the eligible urban area from which distances between parts of the eligible urban area and other places are usually measured—the distance, by the shortest practicable surface route, between the tested location and the location that is the principal location of those parts.

In this Part, unless the contrary intention appears:

arm’s length loan, means a loan the parties to which are not under a special duty or obligation to each other in relation to the loan.

debtor means a recipient who is under an obligation to pay or repay an amount to a creditor.

dwelling means a unit of accommodation:

 (a) that is, or is a part of, a building; and

 (b) that consists wholly or substantially of residential accommodation.

loan includes:

 (a) an advance of money; and

 (b) the provision of credit or any other form of financial accommodation; and

 (c) the payment of an amount on account of, on behalf of or at the request of a person where there is an obligation (whether express or implied) to repay the amount; and

 (d) a transaction (whatever its terms or form) that in substance gives effect to an advance of money.

obligation, in relation to a dwelling, means a unit:

 (a) on a unit plan registered under a law of a State or Territory that provides for the registration of titles of a kind known as strata titles or unit titles; and

 (b) that comprises:

 (i) a part of a building that contains the dwelling and is a flat or home unit; or

 (ii) a part of a parcel of land if the building containing the dwelling is constructed on that part.

 (1) If a person (the provider) who is the employer, or an associate of the employer, of a recipient makes a loan to the recipient, the making of the loan is taken to be a loan benefit provided by the provider to the recipient.

 (2) For the purposes of this clause, if:

 (a) a debtor is under an obligation to pay or repay an amount (the principal amount) to another person (the creditor); and

 (b) the principal amount is not the whole or a part of the amount of a loan; and

 (c) after the due date for payment or repayment of the principal amount, the whole or part of the principal amount remains unpaid;

the following provisions have effect:

 (d) the creditor is taken, immediately after the due date, to have made a loan (the notional loan) of the principal amount to the debtor;

 (e) at any time when the debtor is under an obligation to repay any part of the principal amount, the debtor is taken to be under an obligation to repay that part of the notional loan;

 (f) the notional loan is taken to have been made:

 (i) if interest accrues on so much of the principal amount as remains from time to time unpaid—at the rate of interest at which that interest accrues; or

 (ii) in any other case—at nil rate of interest.

 (3) Subject to subclause (4), a loan is a deferred interest loan if interest is payable on the loan at a rate that is greater than nil.

 (4) A loan is not a deferred interest loan if:

 (a) the whole of the interest is due for payment within 6 months after the loan is made; or

 (b) all of the following conditions are satisfied:

 (i) interest on the loan is payable by instalments;

 (ii) the intervals between instalments are not more than 6 months;

 (iii)  the first instalment is due for payment within 6 months after the loan is made.

 (5) For the purposes of this clause, if the provider makes a deferred interest loan (the principal loan) to the recipient, the following provisions apply:

 (a) the provider is taken, at the end of:

 (i) the period of 6 months beginning on the day on which the principal loan was made; and

 (ii) each later period of 6 months;

  to have made a notional loan to the recipient;

 (b) the amount of the loan is taken to be equal to the amount by which the interest (the accrued interest) that has accrued on the principal loan in respect of the period is more than any amount paid in relation to the accrued interest before the end of the period;

 (c) if any part of the accrued interest becomes payable, or is paid, after the time when the notional loan is taken to have been made, the notional loan is taken to be reduced accordingly;

 (d) the notional loan is taken to have been made at a nil rate of interest.

 (6) Paragraph (5)(a) only applies to a period of 6 months if the recipient is under an obligation during the whole of the period to repay the whole or a part of the principal loan.

 (7) For the purposes of this Part, if no interest is payable in relation to a loan, a nil rate of interest is taken to be payable in relation to the loan.

15 (1) A loan is an exempt loan benefit if:

 (a) the loan is made by a provider that carries on a business that consists of, or includes, making loans to members of the public; and

 (b) the rate of interest payable in respect of the loan:

 (i) is stated in a document in existence at the time the loan is made; and

 (ii) is not less than the rate of interest in respect of a similar arm’s length loan made by the provider, at or about that time, to a member of the public in the ordinary course of carrying on that business; and

 (iii) cannot be varied.

 (2) A loan is an exempt loan benefit if:

 (a) the loan is made by a provider who carries on a business that consists of, or includes, making loans to members of the public; and

 (b) the interest rate payable from time to time for the loan is not less than the rate that applies to a comparable arm’s length loan made by the provider to another person in the ordinary course of carrying on that business.

 (3) A loan is an exempt loan benefit if:

 (a) the loan consists of an advance to a recipient by a provider who is an employer of the recipient; and

 (b) the sole purpose of the making of the loan is to enable the recipient to meet the expenses incurred by the recipient:

 (i) in the course of performing the duties of that employment; and

 (ii) not later than 6 months after the loan is made; and

 (c) the amount of the loan is not substantially greater than the amount of those expenses that could reasonably be expected to be incurred by the recipient; and

 (d) the recipient is required:

 (i) to account to the employer, not later than 6 months after the loan is made, for expenses met from the loan; and

 (ii) to repay (whether by set-off or otherwise) any amount not so accounted for.

 (4) A loan is an exempt loan benefit if:

 (a) the loan consists of an advance to a recipient by a provider who is an employer of the recipient; and

 (b) the sole purpose of the making of the loan is to enable the recipient to pay any of the following amounts payable by the recipient in respect of accommodation:

 (i) a rental bond;

 (ii) a security deposit in respect of electricity, gas or telephone services;

 (iii)  any similar amount; and

 (c) the recipient is required to repay (whether by set-off or otherwise) the loan no later than 12 months after the loan is made.

 (1) The value of a loan benefit is calculated as follows:

Method statement

Step 1. Work out whether the loan is a housing loan or another type of loan.

Note: For the meaning of housing loan, see clause 17.

Step 2. Work out the notional rate of interest for the loan using subclause (2).

Step 3. Work out the actual rate of interest for the loan in the relevant fringe benefits year using subclause (3).

Step 4. Work out whether the actual rate of interest is more than the notional rate of interest.

Step 5. If the actual rate of interest is equal to or more than the notional rate of interest, the value of the loan benefit is nil.

Note: If the value of the loan benefit is nil, the remainder of this subclause does not apply.

Step 6. If the actual rate of interest is less than the notional rate of interest, take the actual rate of interest away from the notional rate of interest.

Step 7. Work out the amount of the loan (both the principal and interest) that is outstanding in the relevant fringe benefits year using subclause (5).

Step 8. Multiply the rate of interest obtained in Step 6 and the amount obtained in Step 7: the result is the interim value of the loan.

Step 9. Work out how many complete weeks in the relevant fringe benefits year the person had, or will have, the loan: the result is the number of allowable weeks.

Step 10. Apply the formula:

 

Step 11. The amount obtained by applying the formula in Step 10 is the value of the loan benefit.

Note: If the recipient is a member of a couple, the value of the loan benefit is to be halved in certain circumstances (see subclause (5)).

 (2) The notional rate of interest for a fringe benefits year is:

 (a) for a housing loan—the rate prescribed for the purposes of this paragraph; and

 (b) for a loan of any other kind—the rate prescribed for the purposes of this paragraph.

 (3) The actual rate of interest for the loan is:

 (a) if the loan starts after 1 April in the relevant fringe benefits year—the rate of interest payable under the loan on the day on which the loan starts; and

 (b) in any other case—the rate of interest payable under the loan on 1 April in the relevant fringe benefits year.

 (4) The amount of the loan that is outstanding is:

 (a) if the loan starts after 1 April in the relevant fringe benefits year—the amount outstanding on the day on which the loan starts; and

 (b) in any other case—the amount outstanding on 1 April in the relevant fringe benefits year.

 (5) If:

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

 (b) the recipient’s partner receives a loan benefit in the relevant fringe benefits year; and

 (c) the recipient’s, and the recipient’s partner’s, loan benefits relate to the same loan;

the value of the loan benefit obtained in Step 11 in subclause (1) is halved.

A loan is taken to be a housing loan if:

 (a) the loan is made to, or used by, a recipient (whether in his or her own right or jointly with his or her partner) wholly:

 (i) to enable the recipient to acquire a relevant interest in land on which a dwelling or a building containing a dwelling is to be constructed; or

Note: For the meaning of relevant interest, see clause 18.

 (ii) to enable the recipient to acquire a relevant interest in land and construct, or complete the construction of, a dwelling or a building containing a dwelling on the land; or

 (iii) to enable the recipient to construct, or complete the construction of, a dwelling or a building containing a dwelling on land in which the recipient held a relevant interest; or

 (iv) to enable the recipient to acquire a relevant interest in land on which there was a dwelling or a building containing a dwelling; or

 (v) to enable the recipient to acquire a relevant interest in a stratum unit in relation to a dwelling; or

 (vi) to enable the recipient to extend a building that is a dwelling or contains a dwelling, and is constructed on land in which the recipient held a relevant interest, by adding a room, or part of a room, to the building or the part of the building containing the dwelling, as the case may be; or

 (vii) if the recipient held a relevant interest in a stratum unit in relation to a dwelling—to enable the recipient to extend the dwelling by adding a room or part of a room to the dwelling; or

 (viii) to enable the recipient to repay a loan that was made to, and used by, the recipient wholly for a purpose mentioned in subparagraphs (i) to (vii); and

 (b) when the loan was made, the dwelling was used, or proposed to be used, as the recipient’s usual place of residence.

 (1) For the purposes of clause 17, an interest described in a following provision of this clause is a relevant interest.

 (2) If:

 (a) a person; or

 (b) 2 or more persons as joint tenants or tenants in common;

acquire, hold or held an estate in fee simple in land or in a stratum unit, the person or those persons are taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit.

 (3) If:

 (a) a person acquires, holds or held an interest in land or in a stratum unit as lessee or licensee under a lease or licence; and

 (b) the lease or licence gives or gave reasonable security of tenure to the lessee or licensee for a period of, or for periods totalling, 10 years or more;

the person is taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit, as the case requires.

 (4) If:

 (a) a person acquires, holds or held an interest in land or in a stratum unit as purchaser of an estate in fee simple in the land or in the stratum unit under an agreement; and

 (b) the agreement provides or provided for payment of the purchase price, or a part of the purchase price, to be made at a future time or by instalments;

the person is taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit, as the case requires.

 (5) If:

 (a) a person acquires, holds or held an interest in land or in a stratum unit as purchaser of a right to be granted a lease of the land or of the stratum unit under an agreement; and

 (b) the agreement provides or provided for payment of the purchase price, or a part of the purchase price, for the lease to be made at a future time or by instalments; and

 (c) the Secretary is satisfied that the lease will give reasonable security of tenure to the lessee for a period of, or for periods totalling, 10 years or more;

the person is taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit, as the case requires.

 (6) If:

 (a) 2 or more persons acquire, hold or held an interest referred to in paragraph (3)(a), (4)(a) or (5)(a) in land or in a stratum unit as joint tenants or tenants in common; and

 (b) paragraph (3)(b) or (4)(b) or paragraphs (5)(b) and (c) are satisfied;

those persons are taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit, as the case requires.

In this Part, unless the contrary intention appears:

school means a school, college or other educational institution that provides primary or secondary level education.

 (1) If:

 (a) a person pays an amount, whether directly or indirectly, to a school; and

 (b) the person is the employer, or an associate of the employer, of a recipient; and

 (c) the amount is for fees for:

 (i) tuition at primary or secondary level provided by the school; or

 (ii) books or equipment provided by the school in relation to that tuition; and

 (d) the tuition, books or equipment is provided to a dependant of the recipient or of the recipient’s partner;

the payment is taken to be a school fees benefit provided by the person to the recipient.

 (2) For the purposes of this clause, if:

 (a) a school is providing tuition at primary or secondary level to a dependant of a person; and

 (b) the dependant is boarding at the school;

the fees that are payable for the dependant to board at the school are taken to be fees for the tuition provided by the school to the dependant.

The value of a school fees benefit is the amount of the payment that constitutes the school fees benefit.

 

Schedule 5Application, Saving and Transitional Provisions

Expressions used in this Schedule have the same meanings as in Part 8.

 (1) Subject to subclauses (2), (3) and (4), this Act, as amended by Parts 3 and 4 of Schedule 5 to the amending Act, applies to events occurring on or after 20 March 1997.

 (2) Subject to subclause (4), if, immediately before 20 March 1997, a person was subject to an activity test deferment period or an administrative breach deferment period that would end on or after 20 March 1997, then, despite the amendments made by Parts 3 and 4 of Schedule 5 to the amending Act, this Act, as in force immediately before 20 March 1997 continues to apply to the person in relation to that period.

 (3) If:

 (a) immediately before 20 March 1997, a person was subject to an administrative breach deferment period that would end on or after 20 March 1997; and

 (b) an activity test deferment period or an administrative breach rate reduction period applies to the person on or after 20 March 1997;

then, despite the amendments made by Part 3 of Schedule 5 to the amending Act, the activity test deferment period or administrative breach rate reduction period commences the day after the end of the administrative breach deferment period.

 (4) If:

 (a) an event occurs before 20 March 1997 that results in a person being subject to an activity test deferment period or an administrative breach deferment period; and

 (b) the period referred to in paragraph (a) has not commenced before 20 March 1997;

then, this Act applies as if the amendments made by Parts 3 and 4 of Schedule 5 had commenced the day before the event referred to in paragraph (a) occurred.

 (5) In this clause:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

Part 8 of this Act, as amended by Schedule 6 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies to all persons who cease industrial action on or after 1 January 1997.

Part 8 of this Act, as amended by Part 3 of Schedule 3 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies in respect of youth training allowance for any payment fortnight starting on or after 1 January 1997.

This Act, as amended by Schedule 10 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies in respect of youth training allowance to any payment period (within the meaning of that term in section 63) starting on or after 20 March 1997.

Part 8 of this Act, as amended by Schedule 17 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies in respect of youth training allowance for any fortnight starting on or after 20 March 1997.

 (1) Subject to subclauses (2), (3), (4) and (5), this Act, as amended by Schedule 1 to the amending Act, applies to events occurring on or after the commencement.

 (2) If, immediately before the commencement, a person was subject to an activity test deferment period that would end on or after the commencement, then, despite the amendments made by Schedule 1 to the amending Act, this Act, as in force immediately before the commencement, continues to apply to the person in relation to that period.

 (3) If:

 (a) an event occurs before the commencement that would, apart from this subclause, result in a person being subject to an activity test deferment period or an administrative breach rate reduction period; and

 (b) the period referred to in paragraph (a) has not commenced before the commencement; and

 (c) an action has occurred or a decision has been taken under this Act in relation to the application of the activity test deferment period or the administrative breach rate reduction period to the person;

then:

 (d) this Act, as amended by Schedule 1 to the amending Act, applies to the event referred to in paragraph (a) from the commencement; and

 (e) despite the fact that the event occurred before the commencement, the period or periods referred to in paragraph (a) are to begin on the commencement.

 (4) If subclauses (2) and (3) both apply, then, despite any other provision of this Act, only the restrictions on payments relating to the activity test deferment period are to apply to the person during the period of overlap.

 (5) If:

 (a) an event occurs before the commencement that would, apart from this subclause, result in a person being subject to an activity test deferment period or an administrative breach rate reduction period; and

 (b) the period referred to in paragraph (a) has not commenced before the commencement; and

 (c) before the commencement, neither an action has occurred, nor a decision been taken, under this Act relating to the application of the activity test deferment period to the person;

this Act, as amended by Schedule 1 to the amending Act, applies to the event referred to in paragraph (a) as if the event occurred on the commencement.

 (6) In this clause:

amending Act means the Social Security Legislation Amendment (Activity Test Penalty Periods) Act 1997.

commencement means the commencement of this clause.

 (1) Part 8 of this Act, as amended by Part 1 of Schedule 7 to the amending Act, applies in relation to leave payments that are received on or after 20 September 1997.

 (2) For the purposes of this section, a person (the first person) is taken to receive a leave payment if the payment is made to another person:

 (a) at the direction of the first person or a court; or

 (b) on behalf of the first person; or

 (c) for the benefit of the first person; or

the first person waives or assigns the first person’s right to receive the payment.

 (3) In this section:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

leave payment includes payments in respect of sick leave, annual leave, maternity leave, and long service leave.

Part 8 of this Act, as amended by Part 2 of Schedule 7 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies to all claims lodged on or after 20 September 1997.

 (1) For the avoidance of doubt, and without affecting the operation of section 8 of the Acts Interpretation Act 1901, Part 2 of Schedule 18 to the amending Act does not:

 (a) affect the operation of Division 15 of Part 8 of this Act, before 1 October 1997; or

 (b) extinguish the amount of any debt due to the Commonwealth arising before 1 October 1997 that was outstanding at the start of that day; or

 (c) prevent the recovery, on or after 1 October 1997, of any such outstanding amount.

 (2) Sections 279A and 287 of this Act, as amended by the amending Act, apply in relation to:

 (a) debts arising on or after 1 October 1997; and

 (b) the amounts of debts arising before that day that were outstanding at the start of that day.

 (3) Section 289 of this Act, as amended by the amending Act, applies in relation to debts arising before, on or after 1 October 1997.

 (4) Despite section 8 of the Acts Interpretation Act 1901, if a legal proceeding or an application for review of a decision:

 (a) relates to, or otherwise involves, a provision of Division 15 of Part 8 of this Act; and

 (b) is not finally determined before 1 October 1997;

the proceeding or application must, if continued, be determined as if it had been instituted on that day, and this Act, as amended by Schedule 18 to the amending Act, applies to the proceeding or application accordingly.

 (5) In this clause:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

 

NOTES

1. The Student and Youth Assistance Act 1973  as shown in this reprint comprises Act No. 155, 1973 amended as indicated in the Tables below.

 All relevant information pertaining to application, saving or transitional provisions prior to 8 July 1997 is not included in this reprint. For subsequent information see Table A.

Table of Acts

 

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Student Assistance Act 1973

155, 1973

27 Nov 1973

15 Oct 1974 (see Gazette 1974,
No. 82, p. 4)

 

Statute Law (Miscellaneous Amendments) Act (No. 1) 1982

26, 1982

7 May 1982

Part XXXIX (ss. 218-237): 4 June 1982 (a)

Public Service Reform Act 1984

63, 1984

25 June 1984

S. 151(5): 1 July 1985 (see Gazette  1985, No. S221) (b)

as amended by

 

 

 

 

Statute Law (Miscellaneous Provisions) Act (No. 2) 1984

165, 1984

25 Oct 1984

S. 3: 1 July 1985 (c)

Ss. 2(32) and 6(1)

Statute Law (Miscellaneous Provisions) Act (No. 1) 1984

72, 1984

25 June 1984

S. 3: 1 Aug 1984 (see Gazette 1984, No. S288) (d)

Ss. 2(24) and 6

Christmas Island Administration (Miscellaneous Amendments) Act 1984

120, 1984

18 Oct 1984

Part VIII (ss. 27-31): 1 Oct 1984
Remainder: Royal Assent

Student Assistance Amendment Act 1985

137, 1985

28 Nov 1985

Ss. 1-3, 11, 12 and 14: Royal Assent
Ss. 4-10, 15 and 16: 1 Jan 1986 (see Gazette 1986,
No. S526)
S. 13: 26 Dec 1985

Ss. 3(2), 13(2) and 16

 Student Assistance Amendment Act 1986

114, 1986

4 Nov 1986

1 Jan 1987 (see Gazette 1986,
No. S650)

Ss. 8 and 9

Student Assistance Amendment Act 1987

125, 1987

16 Dec 1987

16 Dec 1987

S. 4

Social Security and Veterans’ Entitlements Amendment Act (No. 2) 1987

130, 1987

16 Dec 1987

S. 122: Royal Assent (e)
S. 123: 1 Jan 1988 (e)

Statute Law (Miscellaneous Provisions) Act 1987

141, 1987

18 Dec 1987

S. 3: Royal Assent (f)

S. 5(1) and (20)

Student Assistance Legislation Amendment Act 1988

35, 1988

22 May 1988

22 May 1988

Student Assistance Amendment Act 1989

76, 1989

21 June 1989

Ss. 1 and 2: Royal Assent
Remainder: 1 Jan 1990

S. 27

Student Assistance Amendment Act (No. 2) 1989

171, 1989

19 Dec 1989

Ss. 1 and 2: Royal Assent
S. 17: 3 Jan 1990
Remainder: 2 Jan 1990 

Ss. 9(2)-(8), 15(2), (3) and 17(9)

Social Security (Rewrite) Transition Act 1991

70, 1991

25 June 1991

1 July 1991 (see s. 2)

Student Assistance Amendment Act 1991

95, 1991

26 June 1991

S. 16(b): 2 Jan 1990
Remainder: Royal Assent

Ss. 6(2), 23 and 24

Student Assistance Amendment Act (No. 2) 1991

147, 1991

21 Oct 1991

Ss. 1 and 2: 21 Oct 1991
S. 4(a)-(c): 18 Nov 1991
Remainder: 1 Jan 1992

S. 3

Student Assistance Amendment Act 1992

138, 1992

19 Nov 1992

Ss. 31-43: 1 Jan 1993
Remainder: Royal Assent

S. 22(2)

as amended by

 

 

 

 

Statute Law Revision Act 1996

43, 1996

25 Oct 1996

Schedule 3 (item 74): 19 Nov 1992 (g)

Commonwealth Reciprocal Recovery Legislation Amendment Act 1994

68, 1994

30 May 1994

Ss. 6 and 7(a), (c): Royal Assent (h)
S. 7(b): (h)

Student Assistance (Youth Training Allowance) Amendment Act 1994

183, 1994

23 Dec 1994

1 Jan 1995

Ss. 37-41

Social Security Legislation Amendment Act (No. 1) 1995

104, 1995

29 Sept 1995

Schedule 12 (items 8-24): Royal Assent (i)

Student and Youth Assistance Amendment (Youth Training Allowance) Act (No. 2) 1995

155, 1995

16 Dec 1995

Schedules 1, 4, 6 and 8: 12 Dec 1995 (see s. 2(2))
Schedules 2, 3 (items 2, 3): 1 Jan 1996
Schedule 5: 1 Jan 1996
Schedule 7 (items 1, 2, 4): (j)
Schedule 7 (item 3): 1 Jan 1995 (j)
Remainder: Royal Assent

Sch. 5 (item 5)

Student and Youth Assistance Amendment (Youth Training Allowance) Act (No. 3) 1995

156, 1995

16 Dec 1995

Schedule 1 (Part 2): 1 July 1996
Schedules 2 and 3: 20 Mar 1996
Schedule 4: 20 Sept 1996
Remainder: Royal Assent

Sch. 1 (items 3, 7, 8), Sch. 2 (item 25) and Sch. 3 (item 4)

Statute Law Revision Act 1996

43, 1996

25 Oct 1996

Schedule 2 (items 104-106): (k)

Social Security Legislation Amendment (Further Budget and Other Measures) Act 1996

83, 1996

23 Dec 1996

Schedule 2 (items 17, 18): 1 July 1997 (l)
Schedule 3 (items 9, 10): Royal Assent (l)

Social Security Legislation Amendment (Budget and Other Measures) Act 1996

84, 1996

23 Dec 1996

Schedule 2 (item 12): 1 July 1997 (m)
Schedule 3 (items 10-13), Schedule 5 (items 2, 8-11, 135), Schedule 6 (items 7, 8) and Schedule 21 (item 2): 1 Jan 1997 (m)
Schedule  4 (items 2-4), Schedule 7 (items 45-64, 73-77) and Schedule 21 (item 6): 20 Sept 1997 (m)
Schedule 5 (items 77-119, 129-132), Schedule 8 (items 9, 10, 27), Schedule 9 (item 4), Schedule 10 (items 36-40), Schedule 12 (items 40-64), Schedule 17 (items 9-14) and Schedule 21 (item 4): 20 Mar 1997 (m)
Schedule 13: 1 July 1995 (m)
Schedule 18 (items 36-38, 44-47, 80-96, 99, 100, 106-109) and Schedule 21 (item 8): 1 Oct 1997 (m)

as amended by

 

 

 

 

Social Security Legislation Amendment (Activity Test Penalty Periods) Act 1997

106, 1997

30 June 1997

Schedule 3 (item 3): 1 Jan 1997 (n)
Schedule 3 (items 4-7): 20 Mar 1997 (n)
Schedule 3 (item 8): 20 Mar 1997 (n)
Schedule 3 (item 10): 1 Oct 1997 (n)
 

Social Security Legislation Amendment (Newly Arrived Resident’s Waiting Periods and Other Measures) Act 1997

5, 1997

4 Mar 1997

Schedule 1 (items 47-50) and Schedule 2 (item 2): Royal Assent (o)

S. 3

Student and Youth Assistance Amendment (Waiting Period) Act 1997

6, 1997

4 Mar 1997

4 Mar 1997

Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997

29, 1997

17 Apr 1997

1 July 1997 (see s. 2)

Income Tax (Consequential Amendments) Act 1997

39, 1997

17 Apr 1997

1 July 1997

Social Security Legislation Amendment (Activity Test Penalty Periods) Act 1997

106, 1997

30 June 1997

Schedule 1 (items 43-71): 10 July 1997 (see Gazette 1997, No. S279) (p)
Schedule 2 (items 3, 4): 20 Oct 1997 (p)
Schedule 3 (item 2): 20 Mar 1997 (p)

Aged Care (Consequential Provisions) Act 1997

114, 1997

7 July 1997

Schedule 5 (item 32): (q)

Tax Law Improvement Act 1997

121, 1997

8 July 1997

S. 4: Royal Assent
Schedule 6 (item 141): (r)
Schedule 12 (item 34): 1 July 1997 (r)

S. 4 [see Table A]

Audit (Transitional and Miscellaneous) Amendment Act 1997

152, 1997

24 Oct 1997

Schedule 2 (items 1227-1234): 1 Jan 1998 (see Gazette 1997, No. GN49) (s)

Social Security Legislation Amendment (Parenting and Other Measures) Act 1997

197, 1997

11 Dec 1997

Schedule 1 (items 347-361): 20 Mar 1998 (t)
Schedule 4 (Part 3): [see (t), Note 8 and Table A]
Schedule 4 (Part 4): [see (t), Note 8 and Table A]

Sch. 1 (item 361), Sch. 4 (items 22, 24) [see Table A]

Social Security and Veterans’ Affairs Legislation Amendment (Family and Other Measures) Act 1997

202, 1997

16 Dec 1997

Schedule 3 (item 11): 1 Jan 1996 (u) Schedule 20 (items 29-35): Royal Assent
Schedule 22: 15 Dec 1997 (u)

(a) The Student and Youth Assistance Act 1973 was amended by Part XXXIX (sections 218-237) only of the Statute Law (Miscellaneous Amendments) Act (No. 1) 1982, subsection 2(12) of which provides as follows:

 “(12) The remaining provisions of this Act shall come into operation on the twenty-eighth day after the day on which this Act receives the Royal Assent.”

(b) The Student and Youth Assistance Act 1973 was amended by subsection 151(5) only of the Public Service Reform Act 1984, subsection 2(4) of which provides as follows:

 “(4) The remaining provisions of this Act shall come into operation on such day as is, or on such respective days as are, fixed by Proclamation.”

(c) The Public Service Reform Act 1984 was amended by section 3 only of the Statute Law (Miscellaneous Provisions) Act (No. 2) 1984, subsection 2(21) of which provides that the amendment made by this Act to subsection 151(5) of the Public Service Reform Act 1984 shall be deemed to have come into operation on the commencement of subsection 151(5) of the last-mentioned Act.

(d) The Student and Youth Assistance Act 1973 was amended by section 3 only of the Statute Law (Miscellaneous Provisions) Act (No. 1) 1984, subsection 2(23) of which provides as follows:

 “(23) Section 6 and the amendments of the Student Assistance Act 1973 made by this Act shall come into operation on a day to be fixed by Proclamation.”

(e) The Student and Youth Assistance Act 1973 was amended by sections 122 and 123 only of the Social Security and Veterans’ Entitlements Amendment Act (No. 2) 1987, section 2 of which provides as follows:

 “2. Each provision of this Act comes into operation, or is deemed to have come into operation, as the case requires, on the day, or at the time, shown by the note in italics at the foot of that provision.”

(f) The Student and Youth Assistance Act 1973 was amended by section 3 only of the Statute Law (Miscellaneous Provisions) Act 1987, subsection 2(1) of which provides as follows:

 “(1) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent.”

(g) The Student Assistance Amendment Act 1992 was amended by Schedule 3 (item 74) only of the Statute Law Revision Act 1996, subsection 2(3) of which provides as follows:

 “(3) Each item in Schedule 3 is taken to have commenced when the Act containing the provision amended by the item received the Royal Assent.”

(h) The Student and Youth Assistance Act 1973 was amended by sections 6 and 7 only of the Commonwealth Reciprocal Recovery Legislation Amendment Act 1994, subsections 2(1) and (2) of which provide as follows:

 “(1) Parts 1 and 3, other than paragraph 7(b), commence on the day on which this Act receives the Royal Assent.

 “(2) Part 2, paragraph 7(b) and Part 4 commence on 1 July 1994, immediately after the commencement of section 8 of the Social Security Legislation Amendment Act 1994.”

(i) The Student and Youth Assistance Act 1973 was amended by Schedule 12 (items 8-24) only of the Social Security Legislation Amendment Act (No. 1) 1995, subsection 2(1) of which provides as follows:

 “(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.” 

(j) The Student and Youth Assistance Act 1973 was amended by the Student and Youth Assistance Amendment (Youth Training Allowance) Act (No. 2) 1995, subsections 2(4) and (5) of which provide as follows:

 “(4) Schedule 7 (other than item 3) commences immediately before 20 March 1996.

 “(5) Item 3 of Schedule 7 is taken to have commenced on 1 January 1995, immediately after the commencement of the Student Assistance (Youth Training Allowance) Amendment Act 1994.”

(k) The Student and Youth Assistance Act 1973 was amended by Schedule 2 (items 104-106) only of the Statute Law Revision Act 1996, subsection 2(2) of which provides as follows:

 “(2) Each item in Schedule 2 commences or is taken to have commenced (as the case requires) at the time specified in the note at the end of the item.”

 Items 104-106 are taken to have commenced immediately after the commencement of the Student Assistance (Youth Training Allowance) Amendment Act 1994.

 The Student Assistance (Youth Training Allowance) Amendment Act 1994 came into operation on 1 January 1995.

(l) The Student and Youth Assistance Act 1973 was amended by the Social Security Legislation Amendment (Further Budget and Other Measures) Act 1996, subsections 2(1) and (3) of which provide as follows:

 “(1) Subject to subsections (2), (3) and (4), this Act commences on the day on which it receives the Royal Assent.

 “(3) Schedule 2 commences on 1 July 1997.”

(m) The Student and Youth Assistance Act 1973 was amended by the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, subsections 2(2)-(7) of which provide as follows:

 (2) Schedules 3, 6 and 19, Parts 1, 2 and 5 of Schedule 5 and Part 1 of Schedule 21 commence on 1 January 1997.

 (3) Schedules 8, 9, 10, 11, 12 and 17, Parts 3 and 4 of Schedule 5 and Part 2 of Schedule 21 commence on 20 March 1997.

 (4) Schedules 1, 2, 14, 15 and 16 commence on 1 July 1997.

 (5) Schedules 4 and 7 and Part 3 of Schedule 21 commence on 20 September 1997.

 (6) Schedule 18 and Part 4 of Schedule 21 commence on 1 October 1997.

 (7) Schedule 13 is taken to have commenced on 1 July 1995.

(n) The Social Security Legislation Amendment (Budget and Other Measures) Act 1996 was amended by Schedule 3 (items 3-8, 10) only of the Social Security Legislation Amendment (Activity Test Penalty Periods) Act 1997, subsections 2(6)-(8) and (10) of which provide as follows:

 (6) Item 3 of Schedule 3 is taken to have commenced on 1 January 1997, immediately after the commencement of Part 2 of Schedule 5 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

 (7) Items 4, 5, 6 and 7 of Schedule 3 are taken to have commenced on 20 March 1997, immediately after the commencement of Part 3 of Schedule 5 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

 (8) Item 8 of Schedule 3 is taken to have commenced on 20 March 1997, immediately after the commencement of Schedule 12 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

 (10) Item 10 of Schedule 3 commences, or is taken to have commenced, on 1 October 1997, immediately after the commencement of Schedule 18 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

(o) The Student and Youth Assistance Act 1973 was amended by Schedule 1 (items 47-50) and Schedule 2 (item 2) only of the Social Security Legislation Amendment (Newly Arrived Resident’s Waiting Periods and Other Measures) Act 1997, subsection 2(1) of which provides as follows:

 “(1) Subject to subsections (2), (3) and (4), this Act commences on the day on which it receives the Royal Assent.”

(p) The Student and Youth Assistance Act 1973 was amended by Schedule 1 (items 43-71), Schedule 2 (items 3, 4) and Schedule 3 (item 2) only of the Social Security Legislation Amendment (Activity Test Penalty Periods) Act 1997, subsections 2(2), (4) and (5) of which provide as follows:

 (2) Subject to subsection (3), Schedule 1 commences on a day to be fixed by Proclamation.

 (4) Schedule 2 commences, or is taken to have commenced, on 20 October 1997.

 (5) Items 1 and 2 of Schedule 3 are taken to have commenced on 20 March 1997, immediately after the commencement of Parts 3 and 4 of Schedule 5 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

(q) The Student and Youth Assistance Act 1973 was amended by Schedule 5 (item 32) only of the Aged Care (Consequential Provisions) Act 1997, subsection 2(1) of which provides as follows:

 (1) Subject to this section, this Act commences immediately after the commencement of the Aged Care Act 1997 (other than Division 1 of that Act).

 The Aged Care Act 1997 came into operation on 1 October 1997 (see Gazette 1997, No. GN36).

(r) The Student and Youth Assistance Act 1973 was amended by Schedule 6 (item 141) and Schedule 12 (item 34) only of the Tax Law Improvement Act 1997, subsections 2(1)-(3) and (5) of which provide as follows:

 (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

 (2) Schedule 1 commences on 1 July 1997 immediately after the commencement of the Income Tax Assessment Act 1997.

 (3) Each of the other Schedules (except Schedule 12) commences immediately after the commencement of the immediately preceding Schedule.

 (5) If there is no note specifying the commencement of an item in Schedule 12, the item commences on 1 July 1997 immediately after the commencement of the Income Tax Assessment Act 1997.

(s) The Student and Youth Assistance Act 1973 was amended by Schedule 2 (items 1227-1234) only of the Audit (Transitional and Miscellaneous) Amendment Act 1997, subsection 2(2) of which provides as follows:

 (2) Schedules 1, 2 and 4 commence on the same day as the Financial Management and Accountability Act 1997.

(t) The Student and Youth Assistance Act 1973 was amended by Schedule 1 (items 347-361) and Schedule 4 (Parts 3 and 4) only of the Social Security Legislation Amendment (Parenting and Other Measures) Act 1997, subsections 2(2), (6) and (7) of which provide as follows:

 (2) Part 3 of Schedule 1 commences on 1 July 1998. The remaining items of Schedule 1 commence on 20 March 1998. [see Table A]

 (6) Parts 2 and 4 of Schedule 4 commence on 1 July 1999. [see Note 8 and Table A]

 (7) Part 3 of Schedule 4 and Schedule 5 commence on 1 July 1998.” [see Note 8 and Table A]

(u) The Student and Youth Assistance Act 1973 was amended by Schedule 3 (item 11), Schedule 20 (items 29-35) and Schedule 22 only of the Social Security and Veterans’ Affairs Legislation Amendment (Family and Other Measures) Act 1997, subsections 2(1), (4) and (17) of which provide as follows:

 (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

 (4) Schedule 3 is taken to have commenced on 1 January 1996, immediately after the commencement of Schedule 2 to the Social Security Legislation Amendment (Family Measures) Act 1995.

 (17) Schedules 21 and 22 commence, or are taken to have commenced, on 15 December 1997.

Table of Amendments

Certain provisions of the Student and Youth Assistance Act 1973  as amended were repealed either prior to renumbering by the Student Assistance Amendment Act (No. 2) 1989 (No. 171, 1989) or by that Act. The amendment history of the repealed provisions appears in Table 1 below.

TABLE 1

 

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

 

 

Provision affected

How affected

S. 3 ....................

rep. No. 171, 1989

S. 4 ....................

am. No. 26, 1982; No. 114, 1986; No. 76, 1989

 

rep. No. 171, 1989

S. 6 ....................

rs. No. 72, 1984

 

rep. No. 76, 1989

Part II (ss. 7-9)

rep. No. 26, 1982

Ss. 7-9 .................

rep. No. 26, 1982

S. 11 ...................

am. No. 26, 1982; No. 72, 1984

 

rs. No. 114, 1986

 

rep. No. 76, 1989

Ss. 12, 13 ...............

rep. No. 26, 1982

Heading to Div. 4 of Part V ...

rep. No. 72, 1984

S. 30A ..................

ad. No. 26, 1982

 

rep. No. 72, 1984

S. 31 ...................

am. No. 72, 1984

 

rep. No. 171, 1989

S. 31A ..................

ad. No. 114, 1986

 

am. Nos. 130 and 141, 1987

 

rs. No. 35, 1988

 

rep. No. 171, 1989

Ss. 31B, 31C .............

ad. No. 35, 1988

 

am. No. 76, 1989

 

rep. No. 171, 1989

S. 31H .................

ad. No. 35, 1988

 

rep. No. 171, 1989

S. 32 ...................

am. No. 72, 1984; No. 141, 1987

 

rep. No. 171, 1989

S. 33 ...................

am. No. 72, 1984

 

rep. No. 171, 1989

Table of Amendments

The remaining history of the Student and Youth Assistance Act 1973 after renumbering by the Student Assistance Amendment Act (No. 2) 1989 appears in Table 2 below.

TABLE 2

 

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

 

 

Provision affected

How affected

Title ...................

rs. No. 26, 1982

 

am. No. 171, 1989; No. 183, 1994

S. 1 ....................

am. No. 183, 1994

S. 3 ....................

am. No. 26, 1982; Nos. 72 and 120, 1984; No. 137, 1985; No. 114, 1986; No. 35, 1988; Nos. 76 and 171, 1989; Nos. 70, 95 and 147, 1991; No. 138, 1992; Nos. 68 and 183, 1994; No. 155, 1995; Nos. 6 and 29, 1997; No. 152, 1997

S. 4 ....................

ad. No. 35, 1988

 

rep. No. 183, 1994

S. 5 ....................

ad. No. 171, 1989

 

am. No. 183, 1994

S. 5A ...................

ad. No. 147, 1991

Ss. 5B, 5C ...............

ad. No. 183, 1994

Heading to Part 2 ..........

rs. No. 76, 1989

Part 2 (s. 7) ..............

rs. No. 114, 1986

S. 6 ....................

rep. No. 26, 1982

 

ad. No. 76, 1989

Ss. 6A-6J................

ad. No. 6, 1997

S. 7 ....................

am. No. 26, 1982

 

rs. No. 114, 1986; No. 125, 1987

 

am. No. 76, 1989; No. 95, 1991; No. 138, 1992; No. 183, 1994; No. 6, 1997

Part 3
(ss. 8, 9)

rep. No. 95, 1991

S. 8 ....................

am. No. 26, 1982; No. 114, 1986; No. 76, 1989

 

rep. No. 95, 1991

 

ad. No. 6, 1997

S. 9 ....................

am. No. 26, 1982; No. 72, 1984

 

rep. No. 95, 1991

 

ad. No. 6, 1997

Heading to Part 4 ..........

am. No. 147, 1991

Part 4
(ss. 10-12)

ad. No. 171, 1989

S. 10 ...................

rep. No. 26, 1982

 

ad. No. 171, 1989

 

am. No. 95, 1991

 

rep. No. 147, 1991

S. 11 ...................

ad. No. 171, 1989

 

am. Nos. 95 and 147, 1991; No. 183, 1994

S. 12 ...................

ad. No. 171, 1989

Part 4A
(ss. 12A-12Z, 12ZA-12ZZ)

ad. No. 138, 1992

Ss. 12A-12E .............

ad. No. 138, 1992

S. 12F ..................

ad. No. 138, 1992

 

am. No. 183, 1994

Ss. 12G-12L .............

ad. No. 138, 1992

S. 12M..................

ad. No. 138, 1992

rs. No. 152, 1997

Ss. 12N.................

ad. No. 138, 1992

am. No. 152, 1997

S. 12O-12Q..............

ad. No. 138, 1992

Ss. 12R-12V .............

ad. No. 138, 1992

 

am. No. 183, 1994

Ss. 12W-12Z, 12ZA-12ZG ...

ad. No. 138, 1992

S. 12ZH ................

ad. No. 138, 1992

 

am. No. 183, 1994

Ss. 12ZJ-12ZU ...........

ad. No. 138, 1992

S. 12ZV .................

ad. No. 138, 1992

 

am. No. 183, 1994

S. 12ZW ................

ad. No. 138, 1992

S. 12ZX .................

ad. No. 138, 1992

 

am. No. 183, 1994

Ss. 12ZY, 12ZZ ...........

ad. No. 138, 1992

Part 4B
(ss. 12ZZA, 12ZZB)

ad. No. 138, 1992

Ss. 12ZZA, 12ZZB .........

ad. No. 138, 1992

Part 5
(ss. 13-37)

rep. No. 183, 1994

S. 13 ...................

am. No. 72, 1984; No. 137, 1985; No. 76, 1989; No. 95, 1991; No. 138, 1992

 

rep. No. 183, 1994

S. 14 ...................

ad. No. 72, 1984

 

am. No. 137, 1985

 

rs. No. 76, 1989

 

am. No. 138, 1992

 

rep. No. 183, 1994

Heading to Div. 2 of Part 5 ...

am. No. 137, 1985

 

rep. No. 183, 1994

S. 15 ...................

am. No. 72, 1984

 

rs. No. 137, 1985

 

rep. No. 183, 1994

S. 16 ...................

rs. No. 26, 1982

 

am. No. 137, 1985

 

rep. No. 183, 1994

S. 17 ...................

am. No. 26, 1982; No. 72, 1984; No. 137, 1985

 

rep. No. 183, 1994

S. 18 ...................

rs. No. 26, 1982; No. 72, 1984

 

am. No. 137, 1985

 

rep. No. 183, 1994

S. 19 ...................

ad. No. 137, 1985

 

rep. No. 183, 1994

Heading to Div. 3 of Part 5 ...

rs. No. 72, 1984

 

am. No. 138, 1992

 

rep. No. 183, 1994

S. 20 ...................

rs. No. 72, 1984

 

am. No. 76, 1989; No. 138, 1992

 

rep. No. 183, 1994

Heading to Div. 4 of Part 5 ...

ad. No. 72, 1984

 

rep. No. 183, 1994

S. 21 ...................

am. No. 26, 1982; No. 72, 1984; No. 137, 1985; No. 76, 1989; No. 138, 1992

 

rep. No. 183, 1994

S. 22 ...................

rs. No. 72, 1984

 

am. No. 137, 1985; No. 76, 1989

 

rep. No. 183, 1994

S. 23 ...................

ad. No. 137, 1985

 

am. No. 76, 1989

 

rep. No. 183, 1994

S. 24 ...................

rs. No. 72, 1984

 

am. No. 137, 1985; No. 76, 1989

 

rep. No. 183, 1994

Heading to Div. 5 of Part 5 ...

rs. No. 72, 1984

 

rep. No. 183, 1994

S. 25 ...................

ad. No. 26, 1982

 

am. No. 72, 1984

 

rs. No. 137, 1985

 

rep. No. 183, 1994

S. 26 ...................

ad. No. 26, 1982

 

am. No. 72, 1984; No. 137, 1985

 

rep. No. 183, 1994

S. 27 ...................

ad. No. 72, 1984

 

am. No. 137, 1985; No. 95, 1991

 

rep. No. 183, 1994

S. 28 ...................

am. No. 26, 1982; No. 72, 1984; No. 137, 1985; No. 76, 1989; No. 95, 1991

 

rep. No. 183, 1994

S. 29 ...................

am. No. 26, 1982; No. 72, 1984; No. 137, 1985

 

rep. No. 183, 1994

S. 30 ...................

am. No. 72, 1984; No. 76, 1989

 

rep. No. 183, 1994

S. 31 ...................

rs. No. 26, 1982

 

am. No. 72, 1984; No. 137, 1985

 

rep. No. 183, 1994

S. 32 ...................

ad. No. 26, 1982

 

am. No. 72, 1984; No. 137, 1985

 

rep. No. 183, 1994

S. 33 ...................

ad. No. 137, 1985

 

rep. No. 183, 1994

S. 34 ...................

am. No. 72, 1984; No. 137, 1985

 

rep. No. 183, 1994

Div. 6 of Part 5
(ss. 35-37)

ad. No. 72, 1984

rep. No. 183, 1994

S. 35 ...................

ad. No. 72, 1984

 

am. No. 137, 1985; No. 76, 1989; No. 138, 1992

 

rep. No. 183, 1994

S. 36 ...................

ad. No. 72, 1984

 

rep. No. 183, 1994

S. 37 ...................

ad. No. 72, 1984

 

am. No. 63, 1984 (as am. by No. 165, 1984); No. 76, 1989; No. 138, 1992

 

rep. No. 183, 1994

Part 6
(ss. 38-44)

ad. No. 171, 1989

S. 38 ...................

ad. No. 171, 1989

 

am. No. 95, 1991; No. 183, 1994; No. 155, 1995

S. 39 ...................

ad. No. 171, 1989

 

rep. No. 95, 1991

Ss. 40, 41 ...............

ad. No. 171, 1989

 

am. No. 95, 1991; No. 183, 1994

S. 42 ...................

ad. No. 171, 1989

 

am. No. 95, 1991; No. 138, 1992; No. 183, 1994

S. 43 ...................

ad. No. 171, 1989

 

am. No. 95, 1991; No. 183, 1994; No. 155, 1995

S. 44 ...................

ad. No. 171, 1989

 

rep. No. 183, 1994

S. 44A ..................

ad. No. 95, 1991

 

am. No. 138, 1992; No. 39, 1997

S. 45 ...................

ad. No. 35, 1988

 

am. Nos. 76 and 171, 1989; No. 95, 1991; No. 138, 1992

 

rep. No. 183, 1994

Ss. 46, 47 ...............

ad. No. 35, 1988

 

rep. No. 183, 1994

S. 48 ...................

ad. No. 171, 1989

 

am. No. 138, 1992; No. 183, 1994

S. 49 ...................

ad. No. 35, 1988

 

am. Nos. 76 and 171, 1989; No. 138, 1992; No. 183, 1994

S. 50 ...................

ad. No. 35, 1988

 

am. No. 183, 1994

S. 51 ...................

ad. No. 35, 1988

 

rs. No. 171, 1989

 

am. No. 95, 1991; No. 138, 1992; No. 183, 1994

S. 52 ...................

am. No. 72, 1984; No. 137, 1985

 

rs. No. 95, 1991

 

rep. No. 183, 1994

S. 53 ...................

ad. No. 137, 1985

 

am. No. 35, 1988; No. 76, 1989

 

rs. No. 171, 1989; No. 95, 1991

 

rep. No. 183, 1994

S. 54 ...................

am. No. 72, 1984; No. 138, 1992

 

rep. No. 183, 1994

S. 55 ...................

ad. No. 137, 1985

S. 55A ..................

ad. No. 147, 1991

 

am. No. 138, 1992; No. 183, 1994

S. 55A ..................

ad. No. 95, 1991

Renumbered  s. 55B ......

No. 138, 1992 (as am. by 43, 1996)

S. 55B..................

rep. No. 183, 1994

S. 56 ...................

am. No. 72, 1984; No. 137, 1985; No. 35, 1988; No. 95, 1991; No. 138, 1992; No. 183, 1994; No 152, 1997

Part 8
(ss. 57-301)

ad. No. 183, 1994

S. 57 ...................

ad. No. 183, 1994

S. 58 ...................

ad. No. 183, 1994

 

am. No. 156, 1995; No. 84, 1996 (as am. by No. 106, 1997); Nos. 106 and 197, 1997

S. 59...................

ad. No. 183, 1994

rep. No. 84, 1996

Ss. 60-64 ...............

ad. No. 183, 1994

S. 65 ...................

ad. No. 183, 1994

 

am. Nos. 155 and 156, 1995; No. 202, 1997

S. 66 ...................

ad. No. 183, 1994

 

rep. No. 156, 1995

Ss. 67, 68 ...............

ad. No. 183, 1994

S. 69 ...................

ad. No. 183, 1994

 

am. No. 84, 1996

Ss. 70, 71 ...............

ad. No. 183, 1994

S. 72 ...................

ad. No. 183, 1994

 

am. No. 156, 1995; No. 84, 1996

S. 73 ...................

ad. No. 183, 1994

S. 74 ...................

ad. No. 183, 1994

 

am. No. 156, 1995

S. 75 ...................

ad. No. 183, 1994

 

am. No. 84, 1996 (as am. by No. 106, 1997)

S. 75A ..................

ad. No. 84, 1996

S. 76...................

ad. No. 183, 1994

S. 77...................

ad. No. 183, 1994

rs. No. 84, 1996

S. 78...................

ad. No. 183, 1994

am. No. 106, 1997

S. 78AA.................

ad. No. 106, 1997

Subdiv. BAA of Div. 2 of Part 8
(ss. 78A-78G)

ad. No. 156, 1995

S. 78AAA................

ad. No. 202, 1997

Ss. 78A, 78B.............

ad. No. 156, 1995

S. 78C .................

ad. No. 156, 1995

 

rep. No. 84, 1996

S. 78D .................

ad. No. 156, 1995

S. 78E ..................

ad. No. 156, 1995

 

am. No. 84, 1996

Ss. 78F, 78G .............

ad. No. 156, 1995

 

rep. No. 84, 1996

S. 79 ...................

ad. No. 183, 1994

 

am. No. 156, 1995; No. 202, 1997

Ss. 80-83................

ad. No. 183, 1994

S. 84 ...................

ad. No. 183, 1994

S. 85 ...................

ad. No. 183, 1994

 

am. No. 156, 1995; No. 84, 1996

Ss. 86-88 ...............

ad. No. 183, 1994

S. 89 ...................

ad. No. 183, 1994

 

am. No. 156, 1995

S. 90 ...................

ad. No. 183, 1994

S. 90A..................

ad. No. 202, 1997

Heading to s. 91...........

rs. No. 202, 1997

S. 91 ...................

ad. No. 183, 1994

 

am. No. 156, 1995; No. 84, 1996; Nos. 106 and 202, 1997

Heading to s. 91A

rs. No. 202, 1997

S. 91A..................

ad. No. 84, 1996

am. No. 202, 1997

Heading to s. 92

rs. No. 156, 1995

S. 92 ...................

ad. No. 183, 1994

 

am. No. 156, 1995

Note 2 to s. 92(2)..........

am. No. 84, 1996

Note 3 to s. 92(2)..........

rep. No. 84, 1996

S. 92A..................

ad. No. 156, 1995

Note 1 to s. 92A(2).........

am. No. 84, 1996

Note 1 to s. 92A(3).........

rep. No. 84, 1996

Note 1 to s. 92A(5).........

rep. No. 84, 1996

S. 92B..................

ad. No. 156, 1995

Ss. 93, 94 ...............

ad. No. 183, 1994

rep. No. 84, 1996

S. 95 ...................

ad. No. 183, 1994

 

am. No. 155, 1995

rep. No. 84, 1996

S. 96 ...................

ad. No. 183, 1994

S. 97 ...................

ad. No. 183, 1994

 

am. No. 155, 1995; No. 84, 1996

Note 3 to s. 97(4)..........

rep. No. 84, 1996

S. 98 ...................

ad. No. 183, 1994

S. 99 ...................

ad. No. 183, 1994

 

am. Nos. 155 and 156, 1995

S. 100 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

Ss. 101, 102 .............

ad. No. 183, 1994

 

am. No. 5, 1997

Heading to Subdiv. F of Div. 2 of Part 8 

rs.; No. 106, 1997

Heading to s. 103..........

rs. No. 106, 1997

S. 103..................

ad. No. 183, 1994

am. No. 106, 1997

Note to s. 103.............

rep. No. 106, 1997

Heading to s. 104..........

rs. No. 106, 1997

S. 104..................

ad. No. 183, 1994

am. No. 106, 1997

Note to s. 104.............

rep. No. 106, 1997

Heading to s. 105..........

rs. No. 106, 1997

S. 105 ..................

ad. No. 183, 1994

am. No. 106, 1997

Note to s. 105.............

rep. No. 106, 1997

S. 106 ..................

ad. No. 183, 1994

 

am. No. 84, 1996

rs. No. 106, 1997

S. 107..................

ad. No. 183, 1994

rs. No. 106, 1997

S. 108..................

ad. No. 183, 1994

 

rs. No. 84, 1996; No. 106, 1997

S. 108A.................

ad. No. 84, 1996

rs. No. 106, 1997

S. 109..................

ad. No. 183, 1994

rs. No. 106, 1997

Heading to s. 110..........

am. No. 106, 1997

S. 110..................

ad. No. 183, 1994

 

am. No. 84, 1996 (as am. by No. 106, 1997); No. 106, 1997

Heading to s. 111..........

am. No. 106, 1997

S. 111..................

ad. No. 183, 1994

am. No. 84, 1996; No. 106, 1997

S. 111A.................

ad. No. 106, 1997

S. 112..................

ad. No. 183, 1994

am. No. 84, 1996

rs. No. 106, 1997

S. 113 ..................

ad. No. 183, 1994

 

rs. No. 84, 1996

am. No. 106, 1997

S. 113A.................

ad. No. 84, 1996

rs. No. 106, 1997

S. 114 ..................

ad. No. 183, 1994

 

am. No. 156, 1995; No. 84, 1996

S. 115 ..................

ad. No. 183, 1994

 

rs. No. 84, 1996

Ss. 116-119 ..............

ad. No. 183, 1994

 

rep. No. 84, 1996

Ss. 120, 121 .............

ad. No. 183, 1994

S. 122 ..................

ad. No. 183, 1994

 

am. No. 84, 1996

Ss. 123-132..............

ad. No. 183, 1994

S. 133 ..................

ad. No. 183, 1994

 

am. No. 84, 1996; Nos. 106 and 202, 1997

S. 134 ..................

ad. No. 183, 1994

Heading to Subdiv. A of Div. 5
of Part 8

ad. No. 84, 1996

S. 135 ..................

ad. No. 183, 1994

 

am. No. 104, 1995; No. 84, 1996

S. 136..................

ad. No. 183, 1994

Subdiv. AA of Div. 5 of Part 8
(ss. 136AA-136AE).......

ad. No. 106, 1997

Ss. 136AA-136AE..........

ad. No. 106, 1997

Subdiv. B of Div. 5 of Part 8
(ss. 136A-136G)

ad. No. 84, 1996 (as am. by No. 106, 1997)

S. 136A.................

ad. No. 84, 1996 (as am. by No. 106, 1997)

S. 136B.................

ad. No. 84, 1996 (as am. by No. 106, 1997)

am. No. 106, 1997

Ss. 136C, 136D...........

ad. No. 84, 1996 (as am. by No. 106, 1997)

rs. No. 106, 1997

S. 136DA................

ad. No. 106, 1997

Ss. 136E-136G............

ad. No. 84, 1996 (as am. by No. 106, 1997)

Ss. 137-141..............

ad. No. 183, 1994

S. 142 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

Ss. 143-148 ..............

ad. No. 183, 1994

Ss. 149, 150 .............

ad. No. 183, 1994

 

am. No. 155, 1995

S. 151 ..................

ad. No. 183, 1994

 

am. No. 84, 1996; No. 202, 1997

S. 151A.................

ad. No. 202, 1997

S. 152..................

ad. No. 183, 1994

S. 153..................

ad. No. 183, 1994

Note to s. 153.............

rep. No. 84, 1996

Ss. 154-156..............

ad. No. 183, 1994

S. 156A.................

ad. No. 84, 1996

S. 157..................

ad. No. 183, 1994

S. 158 ..................

ad. No. 183, 1994

 

rep. No. 84, 1996

Ss. 159-173 ..............

ad. No. 183, 1994

Subdiv. A of Div. 11 of Part 8
(ss. 174-176)

rep. No. 156, 1995

Subdiv. A of Div. 11 of Part 8
(ss. 174, 175)

ad. No. 156, 1995

S. 174..................

ad. No. 183, 1994

 

rs. No. 156, 1995

S. 175..................

ad. No. 183, 1994

rs. No. 156, 1995

am. No. 84, 1996

S. 176 ..................

ad. No. 183, 1994

 

rep. No. 156, 1995

Subdiv. B of Div. 11 of Part 8
(ss. 177, 178)

rep. No. 156, 1995

Subdiv. B of Div. 11 of Part 8
(ss. 176, 177)

ad. No. 156, 1995

S. 176 ..................

ad. No. 156, 1995

S. 177 ..................

ad. No. 183, 1994

 

rs. No. 156, 1995

am. No. 121, 1997

S. 178 ..................

ad. No. 183, 1994

 

rep. No. 156, 1995

Subdiv. C of Div. 11 of Part 8
(ss. 179-185)

rep. No. 156, 1995

Subdiv. C of Div. 11 of Part 8
(ss. 178-185)

ad. No. 156, 1995

S. 178 ..................

ad. No. 156, 1995

 

am. No. 84, 1996

S. 179 ..................

ad. No. 183, 1994

 

am. No. 156, 1995

 

rs. No. 156, 1995

 

am. No. 84, 1996

Ss. 180, 181..............

ad. No. 183, 1994

 

rs. No. 156, 1995

 

rep. No. 84, 1996

Ss. 182-184 ..............

ad. No. 183, 1994

 

rs. No. 156, 1995

S. 185..................

ad. No. 183, 1994

 

rs. No. 156, 1995

 

am. No. 84, 1996

Subdiv. D of Div. 11 of Part 8
(ss. 189, 191-193)

rep. No. 156, 1995

Subdiv. D of Div. 11 of Part 8
(ss. 186-188)

ad. No. 156, 1995

Ss. 186-188 ..............

ad. No. 183, 1994

 

rep. No. 156, 1995

 

ad. No. 156, 1995

Ss. 189-193 ..............

ad. No. 183, 1994

 

rep. No. 156, 1995

Subdiv. E of Div. 11 of Part 8
(s. 194)

rep. No. 156, 1995

S. 194 ..................

ad. No. 183, 1994

 

rep. No. 156, 1995

Ss. 195, 196 .............

ad. No. 183, 1994

Subdiv. G of Div. 11 of Part 8
(ss. 197-203)

ad. No. 183, 1994

rep. No. 156, 1995

Ss. 197-203 ..............

ad. No. 183, 1994

 

rep. No. 156, 1995

Subdiv. H of Div. 11 of Part 8
(ss. 204-211)

ad. No. 183, 1994

rep. No. 156, 1995

Ss. 204-211 ..............

ad. No. 183, 1994

 

rep. No. 156, 1995

Subdiv. I of Div. 11 of Part 8
(ss. 212-214)

ad. No. 183, 1994

rep. No. 156, 1995

S. 212 ..................

ad. No. 183, 1994

 

rep. No. 156, 1995

S. 213 ..................

ad. No. 183, 1994

 

am. No. 43, 1996

 

rep. No. 156, 1995

S. 214 ..................

ad. No. 183, 1994

 

rep. No. 156, 1995

Ss. 215-217 ..............

ad. No. 183, 1994

S. 218 ..................

ad. No. 183, 1994

 

am. No. 104, 1995

Ss. 219, 220 .............

ad. No. 183, 1994

Subdiv. K of Div. 11 of Part 8
(ss. 221-223)

ad. No. 183, 1994

rep. No. 84, 1996

S. 221 ..................

ad. No. 183, 1994

 

am. Nos. 104 and 156, 1995

 

rep. No. 84, 1996

S. 222 ..................

ad. No. 183, 1994

 

am. No. 104, 1995

 

rep. No. 84, 1996

S. 223 ..................

ad. No. 183, 1994

 

rep. No. 84, 1996

S. 224 ..................

ad. No. 183, 1994

 

am. No. 84, 1996

S. 225 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 226 ..................

ad. No. 183, 1994

Subhead to s. 227(1)........

am. No. 84, 1996

S. 227 ..................

ad. No. 183, 1994

 

am. No. 84, 1996

Subhead to s. 228(1)........

rs. No. 84, 1996

 

 

Subhead to s. 228(3)........

rs. No. 84, 1996

S. 228..................

ad. No. 183, 1994

 

am. No. 84, 1996 (as am. by No. 106, 1997)

S. 229 ..................

ad. No. 183, 1994

 

am. No. 155, 1995; No. 84, 1996; No. 197, 1997

S. 230 ..................

ad. No. 183, 1994

 

rs. No. 84, 1996

Subhead. to s. 231(5).......

am. No. 197, 1997

Subhead. to s. 231(6).......

am. No. 197, 1997

S. 231..................

ad. No. 183, 1994

 

rs. No. 84, 1996

 

am. No. 155, 1995; No. 197, 1997

S. 232..................

ad. No. 183, 1994

Subhead. to s. 233(5).......

am. No. 197, 1997

Subhead. to s. 233(6).......

am. No. 197, 1997

S. 233 ..................

ad. No. 183, 1994

 

am. No. 155, 1995; No. 84, 1996; No. 197, 1997

Note 1 to s. 233(6).........

rs. No. 197, 1997

Note 2 to s. 233(6).........

am. No. 197, 1997

Ss. 234, 235 .............

ad. No. 183, 1994

 

am. No. 84, 1996

S. 236 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 237..................

ad. No. 183, 1994

 

am. No. 155, 1995; No. 84, 1996; No. 197, 1997

Note to 237(6A)...........

rs. No. 197, 1997

Ss. 238, 239 .............

ad. No. 183, 1994

S. 240 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 241 ..................

ad. No. 183, 1994

 

am. No. 84, 1996

S. 242 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 243 ..................

ad. No. 183, 1994

 

am. No. 84, 1996; No. 197, 1997

Note to s. 243(6A)..........

rs. No. 197, 1997

Ss. 244, 245..............

ad. No. 183, 1994

S. 246 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 247 ..................

ad. No. 183, 1994

S. 248..................

ad. No. 183, 1994

 

am. No. 84, 1996

S. 249..................

ad. No. 183, 1994

Heading to Div. 13 of Part 8 ..

am. No. 155, 1995

S. 250 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 251 ..................

ad. No. 183, 1994

 

am. Nos. 155 and 156, 1995; No. 84, 1996

S. 252..................

ad. No. 183, 1994

 

am. No. 156, 1995; No. 84, 1996

S. 253..................

ad. No. 183, 1994

 

am. No. 156, 1995

Ss. 254-256 ..............

ad. No. 183, 1994

Subdiv. C of Div. 13 of Part 8
(s. 256A)

ad. No. 155, 1995

S. 256A .................

ad. No. 155, 1995

Ss. 257-260 ..............

ad. No. 183, 1994

S. 261 ..................

ad. No. 183, 1994

 

am. Nos. 43 and 84, 1996

Notes to s. 261(4), (5).......

rep. No. 84, 1996

Notes to s. 261(8)..........

rep. No. 84, 1996

Heading to s. 262..........

rs. No. 83, 1996

S. 262 ..................

ad. No. 183, 1994

 

am. Nos. 83 and 84, 1996

Notes to s. 262(4)..........

rep. No. 84, 1996

S. 263..................

ad. No. 183, 1994

am. No. 84, 1996

Notes 2-4 to s. 263.........

rep. No. 84, 1996

Ss. 264, 265..............

ad. No. 183, 1994

rep. No. 84, 1996

S. 266..................

ad. No. 183, 1994

am. No. 84, 1996

Notes to s. 266(2)..........

rep. No. 84, 1996

S. 267..................

ad. No. 183, 1994

am. No. 84, 1996

Notes to s. 267(2)..........

rep. No. 84, 1996

S. 268..................

ad. No. 183, 1994

am. No. 84, 1996

Notes to s. 268(2)..........

rep. No. 84, 1996

S. 269..................

ad. No. 183, 1994

rep. No. 84, 1996

S. 270..................

ad. No. 183, 1994

am. No. 84, 1996

Notes 2-4 to s. 270.........

rep. No. 84, 1996

S. 271..................

ad. No. 183, 1994

S. 272..................

ad. No. 183, 1994

am. No. 84, 1996

Notes 2-4 to s. 272.........

rep. No. 84, 1996

S. 273..................

ad. No. 183, 1994

rs. No. 84, 1996

S. 274 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 275..................

ad. No. 183, 1994

am. No. 84, 1996

Notes 1-3 to s. 275(9).......

rep. No. 84, 1996

Ss. 276, 277 .............

ad. No. 183, 1994

S. 278 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 279..................

ad. No. 183, 1994

S. 279A.................

ad. No. 84, 1996

Ss. 280-282..............

ad. No. 183, 1994

S. 283 ..................

ad. No. 183, 1994

 

am. No. 155, 1995; No. 84, 1996

Ss. 284-286 ..............

ad. No. 183, 1994

S. 287..................

ad. No. 183, 1994

am. No. 84, 1996 (as am. by No. 106, 1997)

Note to s. 287.............

rep. No. 84, 1996

S. 288..................

ad. No. 183, 1994

 

rs. No. 155, 1995

S. 289..................

ad. No. 183, 1994

rs. No. 155, 1995

am. No. 84, 1996

S. 290..................

ad. No. 183, 1994

rs. No. 155, 1995

Ss. 290A-290C ...........

ad. No. 155, 1995

Ss. 291, 292 .............

ad. No. 183, 1994

Ss. 293-297 ..............

ad. No. 183, 1994

 

am. No. 155, 1995

Ss. 298-301 ..............

ad. No. 183, 1994

Part 9
(ss. 302-334)

ad. No. 183, 1994

S. 302 ..................

ad. No. 183, 1994

S. 303 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

Ss. 304-325 ..............

ad. No. 183, 1994

S. 326 ..................

ad. No. 183, 1994

 

am. No. 43, 1996

S. 326A .................

ad. No. 155, 1995

Ss. 327-334 ..............

ad. No. 183, 1994

Part 10
(ss. 335-361)

ad. No. 183, 1994

Ss. 335-337 ..............

ad. No. 183, 1994

S. 338..................

ad. No. 183, 1994

am. No. 29, 1997

S. 338A.................

ad. No. 29, 1997

Ss. 339-345..............

ad. No. 183, 1994

S. 346..................

ad. No. 183, 1994

 

am. No. 5, 1997

S. 347 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 348 ..................

ad. No. 183, 1994

S. 349 ..................

ad. No. 183, 1994

 

am. No. 155, 1995

S. 350 ..................

ad. No. 183, 1994

S. 351..................

ad. No. 183, 1994

 

am. No. 155, 1995; No. 29, 1997

S. 352..................

ad. No. 183, 1994

am. No. 155, 1995

Note 2 to s. 352...........

am. No. 29, 1997

S. 353..................

ad. No. 183, 1994

am. No. 155, 1995; No. 29, 1997

Ss. 354, 355..............

ad. No. 183, 1994

am. No. 29, 1997

S. 356..................

ad. No. 183, 1994

Ss. 357, 358 .............

ad. No. 183, 1994

 

am. No. 155, 1995

S. 359..................

ad. No. 183, 1994

am. No. 155, 1995; No. 29, 1997

 

 

Ss. 360, 361 .............

ad. No. 183, 1994

Schedule 1 ..............

ad. No. 183, 1994

 

am. Nos. 104 and 156, 1995; Nos. 83 and 84, 1996; Nos. 39, 114, 197 and 202, 1997

Schedule 2...............

ad. No. 183, 1994

 

am. No. 197, 1997

Schedule 3...............

ad. No. 183, 1994

Schedule 4 ..............

ad. No. 183, 1994

 

am. Nos. 104 and 156, 1995

 

rep. No. 84, 1996

Schedule 5 ..............

ad. No. 84, 1996

 

am. No. 84, 1996; No. 106, 1997

 

2. Sections 58, 110, 151, 229, 231, 233 and Point G1 of Schedule 1—Schedule 2 (item 12), Schedule 5 (item 103), Schedule 7 (item 45), Schedule 10 (item 37) and Schedule 18 (item 36) of the Social Security Legislation Amendment (Budget and Other Measures) Act 1996  provide as follows:

Schedule 2

12  References to “carer pension”

Each of the following provisions is amended by omitting “carer pension” (wherever occurring) and substituting “carer payment”:

sections 229, 231 and 233.

Schedule 5

103 Subsection 110(6) (note)

Omit “, automatic deferment provision and deferment period”.

Schedule 7

45  Subsection 58(1) (definition of unused annual leave)

Repeal the definition.

Schedule 10

37  Point G1 of Schedule 1 (step 1, note 1)

Omit “points G2, G3 and G4”, substitute “points G2 and G3”.

Schedule 18

36  Paragraph 151(2)(a)

After “156,”, insert “156A,

 The proposed amendments were misdescribed and are not incorporated in this reprint.

3. Section 65—Schedule 2 (item 8) of the Student and Youth Assistance Amendment (Youth Training Allowance) Act (No. 3) 1995  provides as follows:

Schedule 2

8. After subsection 65(8):

Insert:

“(8A) Subject to subsection (9), if the person:

 (a) is not a member of a couple; and

 (b) is, under Subdivision BAA, not required to satisfy the activity test;

 the liquid assets test waiting period in relation to the claim starts on the day on which the person became incapacitated.”.

“(8B) Subject to subsection (9), if the person:

 (a) is a member of a couple; and

 (b) is, under Subdivision BAA, not required to satisfy the activity test;

 the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:

 (c) the day on which the person became incapacitated for work;

 (d) if, when the claim is made, the person's partner is unemployed—the day on which the person's partner became unemployed;

 (e) if, when the claim is made, the person's partner is incapacitated for work—the day on which the person's partner became incapacitated for work.”.

 The proposed amendment was misdescribed and is not incorporated in this reprint.

4. Section 132—Schedule 1 (item 65) of the Social Security Legislation Amendment (Activity Test Penalty Periods) Act 1997 provides as follows:

Schedule 1

65  After subparagraph 132(2)(b)(ii)

Insert:

 (iia) the application of an activity test breach rate reduction period where the activity test breach rate reduction reduces the rate of youth training allowance payable to the person to nil; or

 The proposed amendment was misdescribed and is not incorporated in this reprint.

5. Section 176—Schedule 3 (items 121, 122) of the Income Tax (Consequential Amendments) Act 1997 provides as follows:

Schedule 3

121  Paragraph 176(1)(a)

Omit “Income Tax Assessment Act”, substitute “Income Tax Assessment Act 1936 or section 8-1 of the Income Tax Assessment Act 1997”.

122  Paragraphs 176(1)(b) and (c)

Omit “that Act”, substitute “the Income Tax Assessment Act 1936”.

 The proposed amendments were misdescribed and are not incorporated in this reprint.

6. Section 177—Schedule 6 (item 141) of the Tax Law Improvement Act 1997 provides as follows:

Schedule 6

141  Paragraph 177(1)(b)

After “1936”, insert “or Division 42 of the Income Tax Assessment Act 1997”.

 The proposed amendment was misdescribed and is not incorporated in this reprint.

7. Section 352—Schedule 2 (item 94) of the Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997 provides as follows:

Schedule 2

94  Subparagraph 352(a)(i)

After “Act”, insert “or the Social Security Act”.

 The proposed amendment was misdescribed and is not incorporated in this reprint.

8. The Student and Youth Assistance Act 1973 was amended by the Social Security Legislation Amendment (Parenting and Other Measures) Act 1997. The applicable provisions provide as follows:

Schedule 4

23  Subsection 72(11)

Repeal the subsection, substitute:

 (11) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

Note 1: For in severe financial hardship see subsection 19C(2) of the Social Security Act (person who is not a member of a couple) and subsection 19C(3) of the Social Security Act (person who is a member of a couple)

Note 2: For  unavoidable or reasonable expenditure see subsection 19C(4) of the Social Security Act.

Note: The heading to subsection 72(11) is replaced by the heading “Secretary may determine that a person does not have to serve a waiting period”.

25  Point G6G of Schedule 1

Repeal the point, substitute:

G6G If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) of the Social Security Act (person who is not a member of a couple) and subsection 19C(3) of the Social Security Act (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4) of the Social Security Act.

Note 3: If an income maintenance period applies to a person, then, during that period:

 (a) the allowance claimed may not be payable to the person; or

 (b) the amount of the allowance payable to the person may be reduced.

Subsections 2(6) and (7) of the Social Security Legislation Amendment (Parenting and Other Measures) Act 1997 provide as follows:

 (6) Parts 2 and 4 of Schedule 4 commence on 1 July 1999.

 (7) Part 3 of Schedule 4 and Schedule 5 commence on 1 July 1998.

As at 30 March 1998 the amendments are not incorporated in this reprint.

 

9. Section 91A—Schedule 20 (items 29, 30, 32, 33 and 35) of the Social Security and Veterans’ Affairs Legislation Amendment (Family and Other Measures) Act 1997 provides as follows:

Schedule 20

29  Paragraph 91A(1)(a)

Omit “the person contacts the Department by telephone, or by transmitting”, substitute “the Department is contacted by or on behalf of the person by telephone, or by the transmission of”.

30  Paragraph 91A(1)(b)

Omit “the person contacted the Department”, substitute “the Department was contacted”.

32  Paragraph 91A(1)(f)

Omit “the person contacted the Department”, substitute “the Department was contacted”.

33  Subsection 91A(2)

Omit “the person contacted the Department”, substitute “the Department was contacted”.

35  Subsection 91A(4)

Omit “the person contacted the Department”, substitute “the Department was contacted”.

 The proposed amendments were misdescribed and are not incorporated in this reprint.

TABLE A

Application, Saving or Transitional Provisions

Tax Law Improvement Act 1997 (No. 121, 1997)

4  Application of amendments

  An amendment made by an item in a Schedule (except Schedule 1) applies to assessments for the 1997-98 income year and later income years, unless otherwise indicated in that Schedule.

 

Social Security Legislation Amendment (Parenting and Other Measures) Act 1997 (No. 197, 1997)

Schedule 1

361  Application of income maintenance period amendments

  Point G6B (dealing with continuing employment) as in force on 20 March 1998 applies to a person in respect of a leave period that commences on or after 20 March 1998.

Schedule 4

22  Application

  The following item has effect if, and only if, Part 8 of the Student and Youth Assistance Act 1973 is in force on 1 July 1998.

24  Application

  The following item has effect if, and only if, Schedule 1 of the Student and Youth Assistance Act 1973 is in force on 1 July 1999.

 

RENUMBERING TABLE

TABLE SHOWING NEW PART AND SECTION NUMBERS OF THE STUDENT AND YOUTH ASSISTANCE ACT 1973 AFTER RENUMBERING BY THE STUDENT ASSISTANCE AMENDMENT ACT (No. 2) 1989 (No. 171, 1989)

NOTE—This Table does not form part of the Student and Youth Assistance Act 1973 and is printed for convenience of reference only.

Old number

New number

Part I

Part 1

Section

Section

1

1

2

2

5

3

7

4

8

5

Part III

Part 2

Section

Section

9

6

10

7

Part IV

Part 3

Section

Section

14

8

15

9

Part IVA

Part 4

Section

Section

16

10

16A

11

16B

12

Part V

Part 5

Division 1

Division 1

Section

Section

17

13

17A

14

Division 2

Division 2

Section

Section

18

15

19

16

20

17

21

18

21A

19

Division 3

Division 3

Section

Section

22

20

Division 3A

Division 4

 

 

Section

Section

23

21

24

22

24A

23

25

24

Division 4

Division 5

Section

Section

25A

25

25B

26

25C

27

26

28

27

29

28

30

29

31

29A

32

29B

33

30

34

Division 5

Division 6

Section

Section

30AA

35

30AB

36

30AC

37

Part VA

Part 6

Section

Section

30B

38

30C

39

30D

40

30

41

30F

42

30G

43

30H

44

Part VI

Part 7

Section

Section

31D

45

31E

46

31F

47

 

 

Section

Section

31FA

48

31G

49

31J

50

31K

51

34

52

34A

53

35

54

35A

55

36

56