Social Security Act 1991

147 Qualification for wife pension

147(1) A woman is qualified for a wife pension if the woman:

(a) is a member of a couple; and

(b) has a partner who:

(i) is receiving an age pension, disability support pension or disability wage supplement; or

(ii) is receiving a rehabilitation allowance and was, immediately before he became qualified for that allowance, receiving an invalid pension.

Note: for member of a couple see section 4.

148 Wife pension not payable if pension rate nil

148(1) Subject to subsection (2), a wife pension is not payable to a person if the person’s wife pension rate would be nil.

148(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

151 Multiple entitlement exclusion

151(1) A wife pension is not payable to a woman if the woman is already receiving a service pension.

151(2) If:

(a) a woman is receiving a wife pension; and

(b) another social security pension or a social security benefit or service pension becomes payable to the woman;

the wife pension is not payable to the woman.

Note 1: another payment type will generally not become payable to the woman until the woman claims it.

Note 2: For social security pension and social security benefit see subsection 23(1).

151(3) A wife pension is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

(c) is receiving income support supplement under Part IIIA of that Act or would be eligible for income support supplement under that Part if he or she made a claim under section 45I of that Act.

151(4) Subsection (3) does not apply if:

(a) the person:

(i) was on 20 March 1995 receiving; and

(ii) has from that day continuously received; and

(iii) is receiving;

the wife pension; and

(b) the person elected under subsection 45E(2) of the Veterans’ Entitlements Act, or is taken under subsection 45E(3) of that Act to have elected, to continue to receive the wife pension.

151(5) Subsection (3) does not apply if:

(a) before 20 March 1995, the person had made a claim for wife pension; and

(b) the person elected under subsection 45F(2) of the Veterans’ Entitlements Act, or is taken under subsection 45F(3) of that Act to have elected, to receive the pension in the event that it were granted to him or her; and

(d) the person has since that time continued to receive, and is receiving, the pension.

151(6) Subsection (3) does not apply if:

(a) before 20 March 1995:

(i) the person had made a claim for wife pension; and

(ii) the claim had been rejected; and

(iii) the person had applied, under Chapter 6, for a review of the decision to reject the claim; and

(b) the person elected under subsection 45G(2) of the Veterans’ Entitlements Act, or is taken under subsection 45G(3) of that Act to have elected, to receive the pension in the event that it were granted to him or her after review of the decision; and

(c) on or after 20 March 1995, the decision to reject the claim was set aside and the person was granted wife pension; and

(d) the person has since that time continued to receive, and is receiving, the pension.

151(7) A wife pension is not payable to a woman who:

(a) is an armed services widow; and

(b) has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA; and

(c) is receiving income support supplement or would be eligible for income support supplement if she made a claim under section 45I of the VEA.

Note 1: For armed services widow see subsection 4(1).

Note 2: For MRCA and VEA see subsection 23(1).

151A Exclusion of certain participants in ABSTUDY Scheme

151A(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(d) the payment relates to a period;

wife pension is not payable to the person in respect of any part of the period.

151A(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

wife pension is not payable to the person in respect of any part of the period.

151A(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), wife pension is payable to the person before the person starts the course.

Division 4—Rate of wife pension

159 How to work out the rate of wife pension

A woman’s wife pension rate is worked out using Pension Rate Calculator A at the end of section 1064 (see Part 3.2).

Subdivision A—Continuation of wife pension where partner dies

186 Continuation of wife pension for bereavement period

186(1) If:

(a) a woman is receiving a wife pension; and

(b) the woman’s partner dies;

the woman remains qualified for the wife pension during the bereavement period as if:

(d) the partner had continued to receive age or disability support pension, disability wage supplement or rehabilitation allowance; and

(e) the woman and the partner had continued to be members of a couple.

Note: a woman who remains qualified for a wife pension for the bereavement period may, in some circumstances, be automatically transferred to a parenting payment after the end of the bereavement period without making a claim for that payment (see subsection 501(3)).

187 Continued wife pension rate

Where a woman is qualified for a wife pension because of section 186, the woman’s wife pension rate is worked out as follows:

(a) during the bereavement rate continuation period, the rate of wife pension is the rate that would have been payable to the woman if:

(i) her partner had not died; and

(ii) where the couple had been an illness separated couple or a respite care couple—they had not been such a couple;

(b) during the bereavement lump sum period (if any), the rate of payments under this Subdivision is the rate at which a widow B pension would have been payable to the woman if she had been qualified for a widow B pension.

Subdivision B—Death of pensioner partner

188 Qualification for payments under this Subdivision

188(1) If:

(a) a woman is receiving a wife pension; and

(b) the woman’s partner dies;

the woman is qualified for payments under this Subdivision to cover the bereavement period.

Note 1: section 189 provides for the payment to the woman, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the woman’s partner during that period if the partner had not died.

Note 2: section 190 provides for a lump sum that represents the instalments that would have been paid to the woman’s partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the partner had not died.

188(2) A woman who is qualified for payments under this Subdivision may choose not to receive payments under this Subdivision.

188(3) An election under subsection (2):

(a) must be made by written notice to the Secretary; and

(b) may be made after the woman has been paid an amount or amounts under this Subdivision; and

189 Continued payment of partner’s pension or allowance

If a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner, there is payable to the woman, on each day that would have been a payday of the partner in the bereavement rate continuation period, an amount equal to the amount that would have been payable to the woman’s partner on that day if the partner had not died.

190 Lump sum payable in some circumstances

If:

(a) a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner; and

(b) the first available bereavement adjustment payday occurs before the end of the bereavement period;

there is payable to the woman 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. Work out the amount that would have been payable to the woman on the woman’s payday immediately before the first available bereavement adjustment payday if:

(a) the woman’s partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the woman’s partner on the first day that would have been a payday of the partner on or after the first available bereavement adjustment payday if:

(a) the partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined pensioner couple rate.

Step 4. Work out the amount of widow B pension that would have been payable to the woman on her payday immediately before the first available bereavement adjustment payday if a widow B pension had been payable to the woman on that payday: the result is called the woman’s individual rate.

Step 5. Take the woman’s individual rate away from the combined pensioner couple rate: the result is called the partner’s instalment component.

Step 6. Work out the number of the partner’s paydays in the bereavement lump sum period.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable to the woman under this section.

191 Effect of death of person entitled to payments under this Subdivision

If:

(a) a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner; and

(b) the woman dies within the bereavement period; and

there is payable, to such person as 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. Work out the amount that would have been payable to the woman on the woman’s payday immediately after the day on which the woman died if:

(a) neither the woman nor the woman’s partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the partner on the first day that would have been a payday of the partner on or after the woman’s payday referred to in Step 1 if:

(a) neither the woman nor the partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined pensioner couple rate.

Step 4. Work out the amount that, but for sections 186 and 187, would have been payable to the woman on the woman’s payday immediately after the day on which the woman died if the woman had not died: the result is called the woman’s individual rate.

Step 5. Take the woman’s individual rate away from the combined pensioner couple rate: the result is called the partner’s instalment component.

Step 6. Work out the number of the partner’s paydays in the period that commences on the day on which the woman dies and ends on the day on which the bereavement period ends.

Step 7. 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.

192 Matters affecting payment of benefits under this Subdivision

192(1) If:

(a) a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner; and

(b) after the woman’s partner died, an amount to which the partner would have been entitled if the partner had not died has been paid under this Act or under Part III of the Veterans’ Entitlements Act; and

the following provisions have effect:

(d) the amount referred to in paragraph (b) is not recoverable from the woman or from the personal representative of the woman’s partner, except to the extent (if any) that the amount exceeds the amount payable to the woman under this Subdivision;

(e) the amount payable to the woman under this Subdivision is to be reduced by the amount referred to in paragraph (b).

192(2) If:

(a) a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner; and

(b) an amount to which the woman’s partner would have been entitled if the woman’s partner had not died has been paid under this Act or under Part III of the Veterans’ Entitlements Act, within the bereavement period, into an account with a bank; and

(c) the bank pays to the woman, out of that account, an amount not exceeding the total of the amounts paid as mentioned in paragraph (b);

the bank 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 woman’s partner or anyone else in respect of the payment of that money to the woman.

Part 2.5—Carer payment

Division 1A—Interpretation

197 Definitions

197(1) In this Part, unless the contrary intention appears:

Adult Disability Assessment Tool has the meaning given by subsection 38C(3).

care includes attention and supervision.

care receiver has the meaning given by subsection 198(2).

disabled adult means a person aged 16 or more who:

(a) has a physical, intellectual or psychiatric disability; and

(b) is likely to suffer from that disability permanently or for an extended period.

guardian, in relation to a profoundly disabled child or a disabled child, means a person who has been granted guardianship of the child under a law of the Commonwealth, a State or a Territory.

higher ADAT score adult means a disabled adult who is a care receiver because paragraph 198(2)(a) applies.

lower ADAT score adult means a disabled adult who is a care receiver because paragraph 198(2)(d) applies.

profoundly disabled child has the meaning given by subsection (2) or (2A).

197(2) A child is a profoundly disabled child if:

(a) the child has either:

(i) a severe multiple disability; or

(ii) a severe medical condition; and

(b) the child, because of that disability or condition, needs continuous personal care for:

(i) 6 months or more; or

(ii) if the child’s condition is terminal and the child’s life expectancy is less than 6 months—the remainder of the child’s life; and

(i) the child receives all food and fluids by nasogastric or percutaneous enterogastric tube;

(ii) the child has a tracheostomy;

(iii) the child must use a ventilator for at least 8 hours each day;

(iv) the child:

(A) has faecal incontinence day and night; and

(B) if under 3 years of age, is expected to have faecal incontinence day and night at the age of 3;

(v) the child:

(A) cannot stand without support; and

(B) if under 2 years of age, is expected to be unable to stand without support at the age of 2;

(vi) a medical practitioner has certified in writing that the child has a terminal condition for which palliative care has replaced active treatment;

(vii) the child:

(A) requires personal care on 2 or more occasions between 10 pm and 6 am each day; and

(B) if under 6 months of age, is expected to require care as described in sub-subparagraph (A) at the age of 6 months.

197(2A) A child is a profoundly disabled child if a medical practitioner has certified in writing that:

(a) the child:

(i) has a terminal condition; and

(ii) is in the advanced phase of that condition; and

(b) either:

(i) the child has a life expectancy measured in weeks or months; or

(ii) it is possible that the child will live for more than 12 months but unlikely that he or she will live for a period substantially greater than 12 months; and

(c) because of the condition referred to in paragraph (a), the child will need continuous personal care for the remainder of his or her life.

197(3) A reference in this Part to a parent includes a reference to a guardian.

Division 1—Qualification for and payability of carer payment

198 Qualification for carer payment

198(1) A person is qualified for a carer payment if the requirements of this section are met.

Note: Sections 198AA, 198AB and 198AC allow the person to qualify in certain short‑term circumstances where the requirements would not be met.

Constant care of disabled etc. persons

198(2) The person must personally provide constant care for:

(a) either:

(i) if the person is the only person providing the constant care—a disabled adult (the care receiver) who has been assessed and rated under the Adult Disability Assessment Tool and given a score under that assessment tool of at least 25, being a score calculated on the basis of a total professional questionnaire score of at least 10; or

(ii) if not—a disabled adult (the care receiver) who has been assessed and rated under the Adult Disability Assessment Tool and given a score under that assessment tool of at least 80, being a score calculated on the basis of a total professional questionnaire score of at least 32; or

(b) a profoundly disabled child (the care receiver) aged under 16; or

(d) a disabled adult and a dependent child of the adult (the care receivers), where:

(i) the disabled adult has been assessed and rated under the Adult Disability Assessment Tool and given a score under that assessment tool of at least 20, being a score calculated on the basis of a total professional questionnaire score of at least 8; and

(ii) the child is aged under 16; and

(iii) if the child is aged 6 or more—carer allowance is payable for the child.

Note 1: In a paragraph (c) case, subsection (8) contains an additional requirement about care that must be satisfied.

Note 2: In a paragraph (d) case, subsection (9) deems certain supervision to constitute care.

Care in home

198(3) The care must be provided in a private residence that is the home of the care receiver or care receivers.

Carer in Australia

198(4) The person must be an Australian resident, unless:

(a) the person is in a country in which carer payment may be granted to the person under a scheduled international social security agreement; and

(b) the scheduled international social security agreement entered into force on or before 24 December 1992.

Income and assets tests etc.

198(5) The care receiver or care receivers must:

(a) if the care receiver is a profoundly disabled child or the care receivers are 2 or more disabled children—require constant care; and

(b) subject to subsection (6), be Australian residents; and

Note: For Australian resident see section 7.

(d) subject to subsection (7), either:

(i) pass the assets test under section 198D; or

(ii) be the subject of a decision in force under subsection 198N(2), (3) or (4) that subparagraph (i) does not disqualify the person providing the constant care from carer payment.

Alternative to Australian residence test for higher ADAT score adults

198(6) Paragraph (5)(b) does not apply if:

(a) the care receiver is the higher ADAT score adult mentioned in paragraph (2)(a); and

(b) the adult is receiving a social security pension; and

(c) carer payment may be granted to another person for the adult under a scheduled international social security agreement.

Alternative to income/assets test for higher ADAT score adults

198(7) Paragraphs (5)(c) and (d) do not apply if the care receiver is the higher ADAT score adult mentioned in paragraph (2)(a) and the adult:

(a) is receiving a social security pension or benefit, a service pension or income support supplement; or

(b) would be receiving a social security or service pension or income support supplement if he or she had been an Australian resident for a long enough period.

Level of care requirement for 2 or more disabled children

198(8) If the care receivers are the 2 or more disabled children mentioned in paragraph (2)(c), the Secretary must be of the opinion that the children require a level of care that is at least equivalent to the level of care required by a profoundly disabled child.

Deemed personal care of disabled adult and dependent child

198(9) For the purposes of paragraph (2)(d) and other references in this Part that relate to that paragraph, if a disabled adult is providing care of a dependent child of the adult at a particular time and another person is supervising the provision of that care at that time, the other person is taken personally to provide care of the adult and child at that time.

198AAA Continuation of qualification when person receiving care admitted to institution

198AAA(1) This section applies if:

(a) carer payment is payable to a person who has ordinarily been providing constant care for a care receiver or care receivers; and

(b) the person ceases to be qualified for the payment because he or she ceases to provide constant care for the care receiver or any of the care receivers as a result of the care receiver being admitted permanently to an institution where care is provided for the care receiver.

198AAA(2) The carer payment continues to be payable to the person for 14 weeks after the person ceases to be qualified, and then ceases to be payable.

198AA Qualification for carer payment—hospitalisation

198AA(1) If:

(a) a person (the carer) is participating in the care of a disabled adult, a profoundly disabled child, a disabled child, or a dependent child of a disabled adult, (the hospitalised person) in hospital; and

(b) it is reasonable to assume that, if the hospitalised person were not in hospital, the carer would qualify for carer payment for the hospitalised person or for the hospitalised person and another person or persons; and

(i) the hospitalised person is terminally ill; or

(ii) it is reasonable to expect that he or she will reside in his or her private home upon leaving hospital;

then the carer qualifies for carer payment.

Limit on qualification under subsection (1)

198AA(2) However, the period, or the sum of the periods, for which the person can be qualified under subsection (1) is 63 days in any calendar year.

198AB Care not required to be in private residence during portability period

During any period of absence from Australia:

(a) throughout which Division 2 of Part 4.2 applies to the person; and

(b) that is before the end of the person’s portability period for carer payment (within the meaning of that Division);

the person does not cease to be qualified for carer payment merely because the constant care of the care receiver or care receivers is not provided in a private residence that is the home of the care receiver or care receivers.

198AC Effect of cessation of care etc. on carer payment

Continuation of payment where temporary cessation of care

198AC(1) Subject to subsection (3), if:

(a) a person is qualified for carer payment because the person is personally providing constant care for a care receiver or care receivers; and

(b) the person temporarily ceases to provide that care for the care receiver or care receivers;

the person does not cease to be qualified for the carer payment merely because of that cessation.

Continuation of payment after hospitalisation—section 198AA ceases to apply

198AC(2) Subject to subsection (3), if:

(a) a person is qualified for carer payment under section 198AA because the person is participating in the care of an adult or child in hospital; and

(b) apart from this subsection, the person would later cease to be qualified for carer payment under that section; and

(c) the person would not cease to be qualified for carer payment if the person were providing constant care for the adult or child, or the adult or child and another person;

the person does not cease to be qualified for carer payment merely because of the lack of provision of constant care.

Limit on subsections (1) and (2)

198AC(3) However, the period, or the sum of the periods, for which subsection (1) or (2), or a combination of those subsections, can apply is:

(a) 63 days in any calendar year; or

(b) another period that the Secretary, for any special reason in the particular case, decides to be appropriate.

Cessation of constant personal care in order to undertake training etc.

198AC(4) If:

(a) a person is qualified for carer payment because the person is personally providing constant care for a care receiver or care receivers; and

(b) the person temporarily ceases to provide that care in order to undertake training, education, unpaid voluntary work or paid employment; and

the person does not cease to be qualified for the carer payment merely because of the cessation.

Cessation of participation in hospital care in order to undertake training etc.

198AC(5) If:

(a) a person is qualified for carer payment because the person is participating in the care of another person in hospital; and

(b) the person temporarily ceases to participate in the care in order to undertake training, education, unpaid voluntary work or paid employment; and

the person does not cease to be qualified for the carer payment merely because of the cessation.

198A Income test
[see Appendix for CPI adjusted figures]

Passing the income test

198A(1) A care receiver or care receivers pass the income test if the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, worked out under section 198B for the appropriate tax year determined under section 198C is not more than $66,403 (the income ceiling).

Income test failed where no taxable income for appropriate tax year

198A(2) A care receiver or care receivers do not pass the income test if any person (whether or not a care receiver) whose taxable income is required to be taken into account in applying section 198B does not have an assessed taxable income or an accepted estimated taxable income for the appropriate tax year.

198B Taxable income

Rules that apply for the purposes of this Subdivision

198B(1) For the purposes of this Subdivision, the rules set out in subsections (1A), (1B), (1BA), (1C) and (6) apply.

Taxable income of higher ADAT score adult

198B(1A) If a care receiver who is a higher ADAT score adult is a member of a couple, the care receiver’s taxable income includes the taxable income of the care receiver’s partner.

Taxable income of profoundly disabled child or disabled child

198B(1B) If a care receiver is a profoundly disabled child, or a disabled child, who lives with his or her parent, the taxable income of the care receiver includes the taxable income of the following people:

(a) the parent;

(b) if the parent is a member of a couple—the parent’s partner;

However, if the care receiver is a disabled child who is one of 2 or more care receivers, the taxable income of the same person is not to be included in the taxable income of any of the other care receivers.

Taxable income of lower ADAT score adult

198B(1BA) If a care receiver is a lower ADAT score adult, the care receiver’s taxable income includes the taxable income of the following people:

(a) if the adult is a member of a couple—the adult’s partner and any FTB child (except the other care receiver) of the adult or of the partner;

(b) in any other case—any FTB child (except the other care receiver) of the adult.

Taxable income

198B(1C) A person’s taxable income for a tax year is:

(a) the person’s assessed taxable income for the tax year; or

(b) if the Commissioner of Taxation has not made an assessment of the person’s taxable income for the tax year—the person’s accepted estimated taxable income for the tax year.

Note: For accepted estimated taxable income see subsection (5).

Assessed taxable income

198B(2) At a particular time, a person’s assessed taxable income for a tax year is the taxable income according to whichever of the following was made most recently:

(a) an assessment of the person’s taxable income for the tax year made by the Commissioner of Taxation;

(b) an amended assessment of the person’s taxable income for the tax year made by the Commissioner of Taxation;

(c) an amendment made by a tribunal of an assessment or amended assessment of the person’s taxable income for the tax year made by the Commissioner of Taxation;

(d) an amendment made by a court of:

(i) an assessment or amended assessment of the person’s taxable income for the tax year made by the Commissioner of Taxation; or

(ii) an amended assessment of the person’s taxable income for the tax year made by a tribunal.

Estimating taxable income

198B(3) A person, or, if the person is a child—the child’s parent or carer, may give the Secretary a written estimate of the person’s taxable income for a tax year.

Accepting estimate of taxable income

198B(4) The Secretary may accept the estimate only if:

(a) the person does not have an assessed taxable income for the tax year; and

(b) one of the following applies:

(i) the tax year has not ended;

(ii) the Secretary is satisfied that the person is not required to lodge a return of income for the tax year under the Income Tax Assessment Act;

(iii) the Secretary is satisfied that the person has lodged, or proposes to lodge, a return of income for the tax year under the Income Tax Assessment Act; and

Accepted estimated taxable income

198B(5) A person’s accepted estimated taxable income for a tax year is the taxable income according to the estimate that was most recently given to the Secretary under subsection (3) and accepted by the Secretary.

Nil amounts of taxable income

198B(6) A person’s assessed taxable income or accepted estimate of taxable income may be a nil amount.

198C Appropriate tax year

Appropriate tax year in ordinary cases

198C(1) Subject to this section, the appropriate tax year for a day is the base tax year for that day.

Note: For base tax year see subsection (6).

198C(2) If:

(a) carer payment would not be payable to a person because the care receiver or care receivers would not pass the income test under subsection 198A(1) apart from this subsection; and

(b) the Secretary is given a written request to treat the care receiver or care receivers as if the tax year in which the request is given were the appropriate tax year; and

(c) the request is given to the Secretary by the person, any care receiver who is 16 or over or a parent of any care receiver who is under 16; and

(d) the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, for the tax year in which the request is made is likely to be less than the income ceiling;

the appropriate tax year, for the purposes of applying subsection 198A(1) to the care receiver or care receivers on or after the day on which the request is given, is the tax year in which the request is made.

Note 1: For taxable income see section 198B.

Note 2: For income ceiling see subsection 198A(1).

198C(3) If:

(a) an instalment of carer payment (the first payment) is paid to a person on a day in one calendar year; and

(b) the next instalment of carer payment (the second payment) is paid to a person on a day in the next calendar year; and

(i) commences immediately after the end of the instalment period to which the first payment related; and

(ii) includes the first day of the calendar year referred to in paragraph (b); and

(d) the person’s carer payment is payable in relation to the period referred to in subparagraph (c)(i) because, as a result of a request under paragraph (2)(b), the appropriate tax year is the tax year in which that period occurs (the current tax year); and

(e) the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the current tax year is less than the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the base tax year;

the care recipient’s appropriate tax year, as from the beginning of the later calendar year, is the current tax year and not the base tax year unless the care recipient’s taxable income for the base tax year is less than the income ceiling.

Note 1: For base tax year see subsection (6).

Note 2: For income ceiling see subsection 198A(1).

Change to appropriate tax year because of notifiable event

198C(4) For the purposes of section 198A, if:

(a) a notifiable event occurs in relation to a care receiver or any of 2 or more care receivers; and

(b) the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the tax year in which the notifiable event occurs exceeds the income ceiling;

the appropriate tax year is the tax year in which the notifiable event occurs.

Note 1: For notifiable event see subsection (6).

Note 2: For taxable income see section 198B.

Note 3: For income ceiling see subsection 198A(1).

Note 4: The effect of subsection (4) is that the person caring for the care receiver or care receivers will cease to be qualified for carer payment because the care receiver or care receivers will not pass the income test under subsection 198A(1).

Change to appropriate tax year because of effect of notifiable event on taxable income for later tax year

198C(5) For the purposes of section 198A, if:

(a) a notifiable event occurs in relation to a care receiver or any of 2 or more care receivers; and

(b) the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the tax year in which the notifiable event occurs (the event tax year) does not exceed the income ceiling; and

(c) the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the tax year that follows the event tax year is likely to exceed the income ceiling;

the appropriate tax year is the year that follows the event tax year.

Note 1: For notifiable event see subsection (6).

Note 2: For taxable income see section 198B.

Definitions

198C(6) For the purposes of this section:

(a) the base tax year for a day is the tax year that ended on 30 June in the calendar year immediately before the calendar year in which the day falls; and

(b) a notifiable event is an event or change of circumstances that:

(i) is specified in a notice under subsection 222(1A); and

(ii) is described by the notice as a notifiable event.

Example: Suppose 4 April 1996 is a carer payment payday. It falls in the calendar year 1 January to 31 December 1996, so the base tax year for that payday is the tax year that ended on 30 June 1995 (i.e. the year of income beginning on 1 July 1994).

198D Assets test
[see Appendix for CPI adjusted figures]

Higher ADAT score adult passing the assets test

198D(1) A care receiver who is a higher ADAT score adult passes the assets test if the total value of the following assets is less than $376,750:

(a) the care receiver’s assets;

(b) if the care receiver has a partner—any assets of the partner;

Note: The amount specified in subsection (1) is indexed on each 1 January (see sections 1190 and 1191).

Profoundly disabled child passing the assets test

198D(1A) A care receiver who is a profoundly disabled child passes the assets test if the total value of the following assets is less than $410,000:

(a) the disabled child’s assets;

(b) if the disabled child lives with his or her parent:

(i) the assets of the parent;

(ii) if the parent is a member of a couple—the assets of the parent’s partner;

(iii) if the parent or the partner has one or more FTB children—the assets of those FTB children.

198D(1B) For the purposes of this Division (other than subsection (1A)), if the disabled child lives with his or her parent, the disabled child’s assets are taken to include the assets listed in subsection (1A).

Disabled children passing the assets test

198D(1C) Care receivers who are 2 or more disabled children pass the assets test if the total value of the following assets is less than $410,000:

(a) the assets of all of the disabled children;

(b) if any of the disabled children lives with his or her parent:

(i) the assets of the parent;

(ii) if the parent is a member of a couple—the assets of the parent’s partner;

(iii) if the parent or the partner has one or more FTB children—the assets of those FTB children.

However, assets of the same person are not to be taken into account more than once.

198D(1D) For the purposes of this Division (other than subsection (1C)), if any of the disabled children lives with his or her parent, the disabled child’s assets are taken to include the assets listed in paragraph (1C)(b) in relation to the child. However, assets of the same person are not to be included in the assets of more than one child.

Lower ADAT score adult and dependent child passing the assets test

198D(1E) Care receivers who are a lower ADAT score adult and a dependent child pass the assets test if the total value of the assets of the following people is less than $410,000:

(a) the adult;

(b) the dependent child;

(d) if the adult or the partner has one or more FTB children—the FTB children.

198E Working out the value of assets

For the purposes of subsection 198D(1), (1A), (1C) or (1E), the value of assets is to be worked out in accordance with:

(a) Part 3.12, except Divisions 2, 3 and 4 of that Part; and

(b) sections 198F to 198MA (inclusive); and

Note: Sections 198F to 198MA (inclusive) make special provision for the assets test for care receivers in relation to subjects covered more generally by Division 2 of Part 3.12.

198F Disposal of assets—care receiver assets test

198F(1) For the purposes of this Division, a person disposes of assets of the person if:

(a) the person engages in a course of conduct that directly or indirectly:

(i) destroys all or some of the person’s assets; or

(ii) disposes of all or some of the person’s assets; or

(iii) diminishes the value of all or some of the person’s assets; 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 dominant purpose, in engaging in that course of conduct was to enable another person who provides care for the person to obtain a carer payment.

198F(1A) For the purposes of this Division, a person disposes of assets of a profoundly disabled child, a disabled child or a dependent child if:

(a) the person engages in a course of conduct that directly or indirectly:

(i) destroys all or some of the child’s assets; or

(ii) disposes of all or some of the child’s assets; or

(iii) diminishes the value of all or some of the child’s assets; and

(b) one of the following paragraphs 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 dominant purpose, in engaging in that course of conduct was to enable the person who provides care for the child to obtain a carer payment.

Note: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be the assets of the child.

198F(2) If, under subsection 1147(1A), the value of a granny flat interest is less than the amount paid, or agreed to be paid, for the interest, then, for the purposes of this section, so much of the amount paid, or agreed to be paid, as exceeds the value of the interest is not consideration for the interest.

Note: For granny flat interest see subsection 12A(2).

198G Amount of disposition—care receiver assets test

If a person disposes of assets, the amount of the disposition is:

(a) if the person receives no consideration for the destruction, disposal or diminution—an amount equal to:

(i) the value of the assets that are destroyed; or

(ii) the value of the assets that are disposed of; or

(iii) the amount of the diminution in the value of the assets whose value is diminished; or

(b) if the person receives consideration for the destruction, disposal or diminution—an amount equal to:

(i) the value of the assets that are destroyed; or

(ii) the value of the assets that are disposed of; or

(iii) the amount of the diminution in the value of the assets whose value is diminished;

less the amount of the consideration received by the person in respect of the destruction, disposal or diminution.

198H Disposal of assets in pre‑pension years—individual higher ADAT score adults

198H(1) This section applies in determining whether a person (the carer) qualifies for a carer payment when claiming it for caring for a care receiver who:

(a) is a higher ADAT score adult; and

(b) is not a member of a couple when the claim is made.

198H(1A) This section applies only to disposals of assets that took place before 1 July 2002.

198H(2) If:

(a) the care receiver has disposed of an asset of the care receiver during a pre‑pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the care receiver during that pre‑pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of the care receiver’s assets for the period of 5 years that starts on the day on which the disposition took place:

(d) the amount by which the sum of the amount of the first‑mentioned disposition of assets and of the amounts (if any) of other dispositions of assets previously made by the care receiver during that pre‑pension year exceeds $10,000.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

198H(3) In this section:

pre‑pension year, in relation to a carer, means:

(a) the 12 months ending on the carer’s start day for carer payment; or

(b) any preceding period of 12 months.

198HA Disposal of assets in pre‑pension years—profoundly disabled child or disabled children

198HA(1) This section applies in determining whether a person (the carer) qualifies for a carer payment when claiming it for caring for a care receiver who is a profoundly disabled child or care receivers each of whom is a disabled child.

198HA(1A) This section applies only to disposals of assets that took place before 1 July 2002.

198HA(2) If:

(a) a person has disposed of one or more of the child’s assets during a pre‑pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of the child’s assets previously made during that pre‑pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of the child’s assets for the period of 5 years that starts on the day on which the disposition took place:

(d) the amount by which the sum of the amount of the first‑mentioned disposition of assets and of the amounts (if any) of other dispositions of assets previously made during that pre‑pension year exceeds $10,000.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Note 3: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

198HA(3) In this section:

pre‑pension year, in relation to a carer, means:

(a) the 12 months ending on the carer’s start day for carer payment; or

(b) any preceding period of 12 months.

198HB Disposal of assets in pre‑pension years—lower ADAT score adult and dependent child

Application

198HB(1) This section applies in determining whether a person (the carer) qualifies for a carer payment when claiming it for caring for care receivers who are a lower ADAT score adult and a dependent child.

Disposals before 1 July 2002

198HB(1A) This section applies only to disposals of assets that took place before 1 July 2002.

Increase in value of assets of lower ADAT score adult

198HB(2) Subject to subsection (3), if:

(a) there has been a disposal, during a pre‑pension year of the carer, of an asset of any of the following persons (a qualifying person):

(i) the lower ADAT score adult;

(ii) the dependent child;

(iii) if the adult is a member of a couple—the adult’s partner and any FTB child of the adult or of the partner;

(iv) if the adult is not a member of a couple—any FTB child of the adult; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets of any of the qualifying persons during the pre‑pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of the assets of the lower ADAT score adult, for the period of 5 years that starts on the day on which the disposition took place:

(d) the amount by which the sum of the amount of the first‑mentioned disposition and of the amounts (if any) of other dispositions of assets of the qualifying persons during that pre‑pension year exceeds $10,000.

Note 1: For disposition of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Effect of ceasing to be member of couple or death of FTB child after disposal of assets

198HB(3) If:

(a) an amount is included under subsection (2) in the value of the assets of the lower ADAT score adult because of the disposition of an asset of any of the qualifying persons; and

(b) if the lower ADAT score adult is a member of a couple—either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FTB children dies; and

then, for the purposes of subsection (2), the following are to be disregarded:

(d) in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposition of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposition of his or her assets.

Pre‑pension year

198HB(4) In this section:

pre‑pension year, in relation to a carer, means:

(a) the 12 months ending on the carer’s provisional commencing day for the carer payment; or

(b) any preceding period of 12 months.

198J Disposal of assets before 1 July 2002—individual higher ADAT score adults

198J(1) This section applies in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who:

(a) is a higher ADAT score adult; and

(b) is not a member of a couple;

continues to qualify for the pension.

198J(1A) This section applies only to disposals of assets that took place before 1 July 2002.

198J(2) If:

(a) the care receiver has disposed of an asset of the care receiver during a pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the care receiver during that pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of the care receiver’s assets for the period of 5 years that starts on the day on which the disposition takes place:

(d) the amount by which the sum of the amount of the first‑mentioned disposition of assets, and of the amounts (if any) of other dispositions of assets previously made by the person during that pension year, exceeds $10,000.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

198J(3) In this section:

pension year, in relation to a carer, means:

(a) the 12 months starting on the day the carer payment first became payable to the carer; or

(b) any preceding or following period of 12 months.

198JA Disposal of assets before 1 July 2002—profoundly disabled children or disabled children

198JA(1) This section applies in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who is a profoundly disabled child or care receivers each of whom is a disabled child continues to qualify for the pension.

198JA(1A) This section applies only to disposals of assets that took place before 1 July 2002.

198JA(2) If:

(a) a person has disposed of one or more of the child’s assets during a pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of the child’s assets previously made during that pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of the child’s assets for the period of 5 years that starts on the day on which the disposition took place:

(d) the amount by which the sum of the amount of the first‑mentioned disposition of assets and of the amounts (if any) of other dispositions of assets previously made during that pension year exceeds $10,000.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Note 3: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

198JA(3) In this section:

pension year, in relation to a carer, means:

(a) the 12 months starting on the day the carer payment first became payable to the carer; or

(b) any preceding or following period of 12 months.

198JB Disposal of assets before 1 July 2002—lower ADAT score adult and dependent child

Application

198JB(1) This section applies in determining whether a person (the carer) who has been receiving a carer payment for caring for care receivers who are a lower ADAT score adult and a dependent child continues to qualify for the pension.

198JB(1A) This section applies only to disposals of assets that took place before 1 July 2002.

Increase in value of assets of lower ADAT score adult

198JB(2) Subject to subsection (3), if:

(a) there has been a disposal, during a pension year of the carer, of an asset of any of the following persons (a qualifying person):

(i) the lower ADAT score adult;

(ii) the dependent child;

(iii) if the adult is a member of a couple—the adult’s partner and any FTB child of the adult or of the partner;

(iv) if the adult is not a member of a couple—any FTB child of the adult; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets of any of the qualifying persons during the pension year exceeds $10,000;

the lesser of the following amounts is to be included in the value of the assets of the lower ADAT score adult, for the period of 5 years that starts on the day on which the disposition took place:

(d) the amount by which the sum of the amount of the first‑mentioned disposition and of the amounts (if any) of other dispositions of assets of the qualifying persons during that pension year exceeds $10,000.

Note 1: For disposition of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Effect of ceasing to be member of couple or death of FTB child after disposal of assets

198JB(3) If:

(a) an amount is included under subsection (2) in the value of the assets of the lower ADAT score adult because of the disposition of an asset of any of the qualifying persons; and

(b) if the lower ADAT score adult is a member of a couple—either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FTB children dies; and

then, for the purposes of subsection (2), the following are to be disregarded:

(d) in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposition of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposition of his or her assets.

Pension year

198JB(4) In this section:

pension year, in relation to a carer, means:

(a) the 12 months starting on the day the carer payment first became payable to the carer; or

(b) any preceding or following period of 12 months.

198JC Disposal of assets in income year—individual higher ADAT score adults

Application

198JC(1) This section has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who:

(a) is a higher ADAT score adult; and

(b) is not a member of a couple;

continues to qualify for the payment.

Disposals to which section applies

198JC(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 by the care receiver of an asset of the care receiver.

Increase in value of assets of higher ADAT score adult

198JC(3) If the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets previously made by the care receiver during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the care receiver’s assets for the period of 5 years starting on the day on which the relevant disposal took place:

(a) the amount of the relevant disposal;

(b) the amount by which the sum of the amount of the relevant disposal, and the amounts (if any) of other disposals of assets previously made by the care receiver during the income year in which the relevant disposal took place, exceeds $10,000.

198JD Disposal of assets in 5 year period—individual higher ADAT score adults

Application

198JD(1) This section also has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who:

(a) is a higher ADAT score adult; and

(b) is not a member of a couple;

continues to qualify for the payment.

Disposals to which section applies

198JD(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 by the care receiver of an asset of the care receiver.

Increase in value of assets of higher ADAT score adult

198JD(3) If:

(a) the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period by the care receiver of assets of the care receiver;

less

(b) the sum of any amounts included in the value of the care receiver’s assets during the rolling period under section 198JC or any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, an amount equal to the excess is to be included in the value of the care receiver’s assets for the period of 5 years starting on the day on which the relevant disposal took place.

Rolling period

198JD(4) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.

198JE Disposal of assets in income year—profoundly disabled children

Application

198JE(1) This section has effect in determining whether a person who has been receiving a carer payment for caring for a care receiver who is a profoundly disabled child continues to qualify for the payment.

Disposals to which section applies

198JE(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 by a person of one or more of the disabled child’s assets.

Increase in value of assets of profoundly disabled child

198JE(3) If the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of the disabled child’s assets previously made by a person during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the disabled child’s assets for the period of 5 years starting on the day on which the relevant disposal took place:

(a) the amount of the relevant disposal;

(b) the amount by which the sum of the amount of the relevant disposal, and the amounts (if any) of other disposals of the disabled child’s assets previously made during the income year in which the relevant disposal took place, exceeds $10,000.

198JF Disposal of assets in 5 year period—profoundly disabled children

Application

198JF(1) This section also has effect in determining whether a person who has been receiving a carer payment for caring for a care receiver who is a profoundly disabled child continues to qualify for the payment.

Disposals to which section applies

198JF(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 by a person of one or more of the disabled child’s assets.

Increase in value of assets of profoundly disabled child

198JF(3) If:

(a) the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period by a person of any of the disabled child’s assets;

less

(b) the sum of any amounts included in the value of the disabled child’s assets during the rolling period under section 198JE or any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, an amount equal to the excess is to be included in the value of the disabled child’s assets for the period of 5 years starting on the day on which the relevant disposal took place.

Rolling period

198JF(4) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.

198JG Disposal of assets in income year—lower ADAT score adult and dependent child

Application

198JG(1) This section has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for care receivers who are a lower ADAT score adult and a dependent child continues to qualify for the payment.

Disposals to which section applies

198JG(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset of any of the following persons (each of whom is called a qualifying person):

(a) the lower ADAT score adult;

(b) the dependent child;

(d) if the adult is not a member of a couple—any FTB child of the adult.

Increase in value of assets of lower ADAT score adult

198JG(3) Subject to subsection (4), if the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets of any of the qualifying persons previously made during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the assets of the lower ADAT score adult for the period of 5 years starting on the day on which the relevant disposal took place:

(a) the amount of the relevant disposal;

(b) the amount by which the sum of the amount of the relevant disposal and the amounts (if any) of other disposals of assets of the qualifying persons previously made during the income year in which the relevant disposal took place, exceeds $10,000.

Effect of ceasing to be member of couple or death of FTB child after disposal of assets

198JG(4) If:

(a) an amount is included under subsection (3) in the value of the assets of the lower ADAT score adult because of the relevant disposal; and

(b) if the lower ADAT score adult is a member of a couple—either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FTB children dies; and

then, for the purposes of subsection (3), the following are to be disregarded:

(d) in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposal of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposal of his or her assets.

198JH Disposal of assets in 5 year period—lower ADAT score adult and dependent child

Application

198JH(1) This section also has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for care receivers who are a lower ADAT score adult and a dependent child continues to qualify for the payment.

Disposals to which section applies

198JH(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset of any of the following persons (each of whom is called a qualifying person):

(a) the lower ADAT score adult;

(b) the dependent child;

(d) if the adult is not a member of a couple—any FTB child of the adult.

Increase in value of assets of lower ADAT score adult

198JH(3) Subject to subsection (4), if:

(a) the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period of assets of any of the qualifying persons;

less

(b) the sum of any amounts included in the value of the assets of the lower ADAT score adult during the rolling period under section 198JG or any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, an amount equal to the excess is to be included in the value of the assets of the lower of the ADAT score adult for the period of 5 years starting on the day on which the relevant disposal took place.

Effect of ceasing to be member of couple or death of FTB child after disposal of assets

198JH(4) If:

(a) an amount is included under subsection (3) in the value of the assets of the lower ADAT score adult because of the relevant disposal; and

(b) if the lower ADAT score adult is a member of a couple—either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FTB children dies; and

then, for the purposes of subsection (3), the following are to be disregarded:

(d) in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposal of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposal of his or her assets.

Rolling period

198JH(5) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.

198K Disposal of assets in pre‑pension years—members of couples including higher ADAT score adults

198K(1) This section applies in determining whether a person (the carer) qualifies for carer payment when claiming it for caring for a higher ADAT score adult who is a member of a couple when the claim is made.

198K(1A) This section applies only to disposals of assets that took place before 1 July 2002.

Increase in value of assets of care receiver and of care receiver’s partner

198K(2) Subject to subsections (3) and (4), if:

(a) the care receiver or the care receiver’s partner has disposed of an asset during a pre‑pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the care receiver or the partner during that pre‑pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of both the assets of the care receiver and the assets of the partner, for the period of 5 years that starts on the day on which the disposition took place:

(d) 50% of the amount by which the sum of the amount of the first‑mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the care receiver or the care receiver’s partner during that
pre‑pension year exceeds $10,000.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Effect of separation of couple after disposal of care receiver’s asset

198K(3) If:

(a) an amount is included under subsection (2) in the value of both the assets of the care receiver and the assets of the care receiver’s partner because of a disposition of an asset by the care receiver; and

(b) the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the partner’s assets because of that disposition is to be included in the assets of the care receiver.

Effect of separation of couple after disposal of partner’s asset

198K(4) If:

(b) the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the care receiver’s assets because of that disposition is no longer to be included in the assets of the care receiver.

Pre‑pension year

198K(5) In this section:

pre‑pension year, in relation to a carer, means:

(a) the 12 months ending on the carer’s start day for the carer payment; or

(b) any preceding period of 12 months.

198L Disposal of assets before 1 July 2002—members of couples including higher ADAT score adults

198L(1) This section applies in determining whether a person (the carer) who has been receiving a carer payment for caring for a higher ADAT score adult who is a member of a couple continues to qualify for the pension.

198L(1A) This section applies only to disposals of assets that took place before 1 July 2002.

Increase in value of assets of care receiver and of care receiver’s partner

198L(2) Subject to subsections (3) and (4), if:

(a) the care receiver or the care receiver’s partner disposed of an asset during a pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the care receiver or the care receiver’s partner during that pension year, exceeds $10,000;

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Effect of separation of couple after disposal of care receiver’s asset

198L(3) If:

(b) the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the partner’s assets because of that disposition is to be included in the assets of the care receiver.

Effect of separation of couple after disposal of partner’s asset

198L(4) If:

(b) the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the care receiver’s assets because of that disposition is no longer to be included in the assets of the care receiver.

Pension year

198L(5) In this section:

pension year, in relation to a carer, means:

(a) the 12 months starting on the day the carer payment first became payable to the carer; or

(b) any preceding or following period of 12 months.

198LA Disposal of assets in income year—members of couples including higher ADAT score adults

Application

198LA(1) This section has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who is a higher ADAT score adult and is a member of a couple continues to qualify for the payment.

Disposals to which section applies

198LA(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset by the care receiver, the care receiver’s partner, or the care receiver and the care receiver’s partner.

Increase in value of assets

198LA(3) If the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets previously made by the care receiver, the care receiver’s partner, or the care receiver and the care receiver’s partner (whether before or after they became members of the couple), during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the assets of the care receiver and in the value of the assets of the partner for the period of 5 years starting on the day on which the relevant disposal took place:

(a) one‑half of the amount of the relevant disposal;

(b) one‑half of the amount by which the sum of the amount of the relevant disposal and the amounts (if any) of other disposals of assets previously made by the care receiver, the partner, or the care receiver and the partner, during the income year in which the relevant disposal took place, exceeds $10,000.

Effect of ceasing to be a member of couple after disposal by care receiver

198LA(4) If:

(a) the relevant disposal is the disposal of an asset by the care receiver; and

(b) after the relevant disposal, the care receiver and the care receiver’s partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the assets of the partner because of the relevant disposal is to be included in the value of the assets of the care receiver.

Effect of ceasing to be a member of couple after disposal by care receiver’s partner

198LA(5) If:

(a) the relevant disposal is the disposal of an asset by the care receiver’s partner; and

(b) after the relevant disposal, the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the assets of the care receiver because of the relevant disposal is no longer to be included in the value of the assets of the care receiver.

198LB Disposal of assets in 5 year period—members of couples including higher ADAT score adults

Application

198LB(1) This section also has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who is a higher ADAT score adult and is a member of a couple continues to qualify for the payment.

Disposals to which section applies

198LB(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset by the care receiver, the care receiver’s partner, or the care receiver and the care receiver’s partner.

Increase in value of assets

198LB(3) If:

(a) the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period of assets by the care receiver, the care receiver’s partner, or the care receiver and the care receiver’s partner;

less

(b) the sum of any amounts included in the value of the assets of the care receiver or the partner during the rolling period under a provision of this Subdivision other than this section or under any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, an amount equal to one‑half of the excess is to be included in the value of the assets of the care receiver and in the value of the assets of the partner for the period of 5 years starting on the day on which the relevant disposal took place.

Effect of ceasing to be member of couple after disposal by care receiver

198LB(4) If:

(a) the relevant disposal is a disposal of an asset by the care receiver; and

(b) after the relevant disposal, the care receiver and the care receiver’s partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the assets of the partner because of the relevant disposal is to be included in the value of the assets of the care receiver.

Effect of ceasing to be member of couple after disposal by care receiver’s partner

198LB(5) If:

(a) the relevant disposal is a disposal of an asset by the care receiver’s partner; and

(b) after the relevant disposal, the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the assets of the care receiver because of the relevant disposal is no longer to be included in the value of the assets of the care receiver.

Rolling period

198LB(6) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.

198M Certain dispositions to be disregarded for care receiver assets test

This Division does not apply to a disposition of an asset by a person (the disposer):

(a) more than 5 years before the time when another person (the carer) became qualified for a carer payment:

(i) because the carer was providing care for the disposer and the disposer was a care receiver or one of 2 or more care receivers; or

(ii) because the carer was providing care for the person who was the disposer’s partner at the time of the disposition and that person was a care receiver or one of 2 or more care receivers; or

(b) less than 5 years before the time referred to in paragraph (a) but before the time when the disposer could, in the Secretary’s opinion, reasonably have expected that the carer would become qualified for carer payment for a reason described in paragraph (a); or

198MA Other dispositions to be disregarded for care receiver assets test

This Division does not apply to a disposition of an asset of a profoundly disabled child, a disabled child or a dependent child by a person (the disposer):

(a) more than 5 years before the carer became qualified for a carer payment because:

(i) the carer was providing care for the profoundly disabled child, and the child was a care receiver; or

(ii) the carer was providing care for the disabled child, and the child and one or more other disabled children were care receivers; or

(iii) the carer was providing care for the dependent child and a lower ADAT score adult and the dependent child and adult were care receivers; or

Note: Subsections 198D(1B) and (1D) provide that if the profoundly disabled child or the disabled child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be the assets of the child.

198N Exemption from care receiver assets test
[see Appendix for CPI adjusted figures]

Application by higher ADAT score adult

198N(1) If:

(a) subparagraph 198(5)(d)(i) would disqualify for carer payment a person caring for a care receiver who is a higher ADAT score adult; and

(b) the higher ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the adult not be disqualified by that subparagraph; and

(c) the request includes a written estimate of the higher ADAT score adult’s taxable income for the current financial year under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Application by parent or carer of profoundly disabled child or disabled child

198N(1A) If:

(a) subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for a care receiver who is a profoundly disabled child or care receivers each of whom is a disabled child; and

(b) the parent or the carer of the profoundly disabled child or of any of the disabled children lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

(c) the request includes a written estimate of the taxable income of the profoundly disabled child, or written estimates of the taxable incomes of the disabled children, for the current financial year under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Application by lower ADAT score adult

198N(1B) If:

(a) subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for care receivers who are a lower ADAT score adult and a dependent child; and

(b) the lower ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

(c) the request includes written estimates of the taxable incomes of the lower ADAT score adult and the dependent child under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Failing assets test but passing special income test

198N(2) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if:

(a) the value of the assets of the care receiver or the sum of the values of the assets of the care receivers is more than $410,000 but not more than $608,500; and

(b) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

(c) the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is less than the threshold amount worked out under subsection (6).

Note 1: The amounts specified in paragraph (2)(a) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

Failing assets and special income tests

198N(3) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $410,000 and not more than $608,500 and:

(a) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is equal to or greater than the liquid assets limit; or

(b) the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is equal to or more than the threshold amount worked out under subsection (6).

Note 1: The amounts specified in subsection (3) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

Failing assets test by large margin but passing special income test

198N(4) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if:

(a) the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $608,500; and

(b) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

Note 1: The amount specified in paragraph (4)(a) is indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

Definitions—assets and income

198N(5) For the purposes of this section:

(a) the value of the assets or liquid assets of a care receiver who is a higher ADAT score adult is the sum of the values of the assets or liquid assets (as the case requires) of the following people:

(i) the care receiver;

(ii) if the care receiver has a partner—the partner;

(iii) if the care receiver or the care receiver’s partner has one or more FTB children—those FTB children; and

(aa) the value of the liquid assets of a care receiver who is a profoundly disabled child or a disabled child is the sum of the values of the liquid assets of the following people:

(i) the care receiver;

(ii) if the care receiver lives with his or her parent—the parent;

(iii) if the parent with whom the care receiver lives is a member of a couple—the parent’s partner;

(iv) if the parent with whom the care receiver lives or the parent’s partner has one or more FTB children—those FTB children.

However, if the care receiver is one of 2 or more care receivers each of whom is a disabled child, liquid assets of the same person are not to be taken into account in respect of any of the other care receivers; and

(ab) the value of the liquid assets of a care receiver who is a lower ADAT score adult is the sum of the values of the liquid assets of the following people:

(i) the care receiver;

(ii) if the care receiver is a member of a couple—the care receiver’s partner and any FTB child (except the dependent child who is the other care receiver) of the care receiver or the care receiver’s partner;

(iii) if the care receiver is not a member of a couple—any FTB child (except the dependent child who is the other care receiver); and

Note: The value of the liquid assets of the dependent child who is the other care receiver is not adjusted by adding any other person’s liquid assets.

(b) the liquid assets limit is $10,000 if the care receiver or any of the care receivers is a member of a couple, or $6,000 if not; and

(c) the taxable income of a care receiver or of any of 2 or more care receivers for a particular financial year is the taxable income of the care receiver for that year as worked out under section 198B.

Note 1: For liquid assets see subsection 19B(1).

Note 2: Subsections 198D(1B) and (1D) provide that if a profoundly disabled or a disabled child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

Working out the threshold amount

198N(6) For the purposes of paragraphs (2)(c), (3)(b) and (4)(c), the threshold amount is the amount worked out using the following formula:

where:

MBR is the maximum basic rate of age pension payable, as at the last 1 January, to a person who has a partner.

FPC is:

(a) in the case of a care receiver who is a higher ADAT score adult—the number of FTB children of the care receiver or the care receiver’s partner (if the care receiver has a partner); or

(b) in the case of a care receiver who is a profoundly disabled child who lives with his or her parent—the number of FTB children of the parent or the parent’s partner (if the parent has a partner); or

(d) in the case of care receivers who are 2 or more disabled children:

(i) if any of the children lives with his or her parent—the sum of the number of FTB children of each such parent or of the partner (if the parent has a partner) of each such parent; or

(ii) in any other case—0; or

(e) in the case of care receivers who are a lower ADAT score adult and a dependent child—the number of FTB children of the care receiver or the care receiver’s partner (if the care receiver has a partner).

Note: For the maximum basic rate of age pension see point 1064‑B1 of Pension Rate Calculator A in section 1064.

198P Date of effect of favourable decision under section 198N

Date of effect

198P(1) If the Secretary decides under subsection 198N(2), (3) or (4) that subparagraph 198(5)(d)(i) does not disqualify a person from carer payment, the day on which the decision takes effect is worked out under this section.

Basic rule

198P(2) Subject to subsections (3), (4) and (5), the decision takes effect on the day on which the decision was made or on such later or earlier day (not being a day more than 3 months before the decision was made) as is specified in the decision.

Notified decision—review sought within 3 months

198P(3) If:

(a) a decision (the previous decision) is made under subsection 198N(2), (3) or (4) about a care receiver or care receivers; and

(b) notice of the making of the previous decision is given:

(i) in the case of a care receiver who is a higher ADAT score adult—to the adult or the person caring for the adult; or

(ii) in the case of a care receiver who is a profoundly disabled child—to the parent or carer of the disabled child; or

(iii) in the case of care receivers who are 2 or more disabled children—to the carer of the children or to the parent of any of the children; or

(iv) in the case of care receivers who are a lower ADAT score adult and a dependent child—to the lower ADAT score adult or the person caring for that adult; and

(c) within 3 months after the notice is given, a person applies to the Secretary under section 129 of the Administration Act for review of the previous decision; and

(d) a decision favourable to the person caring for the care receiver or care receivers (the favourable decision) is made as a result of the application for review;

the favourable decision takes effect on the day on which the previous decision took effect.

Notified decision—review sought after 3 months

198P(4) If:

(a) a decision (the previous decision) is made under subsection 198N(2), (3) or (4) about a care receiver or care receivers; and

(b) notice of the making of the previous decision is given:

(i) in the case of a care receiver who is a higher ADAT score adult—to the adult or the person caring for the adult; or

(ii) in the case of a care receiver who is a profoundly disabled child—to the parent of the disabled child or the person who is caring for the disabled child; or

(iii) in the case of care receivers who are 2 or more disabled children—to the carer of the children or to the parent of any of the children; or

(iv) in the case of care receivers who are a lower ADAT score adult and a dependent child—to the lower ADAT score adult or the person caring for that adult; and

(c) more than 3 months after the notice is given, a person applies to the Secretary under section 1240 for review of the previous decision; and

(d) a decision favourable to the person caring for the care receiver or care receivers (the favourable decision) is made as a result of the application for review;

the favourable decision takes effect on the day on which the person sought the review.

Decision not notified

198P(5) If:

(a) a decision (the previous decision) is made under subsection 198N(2), (3) or (4) about a care receiver or care receivers; and

(b) notice of the making of the previous decision is not given to a person specified in paragraph (4)(b) as a person to whom notice is to be given; and

(d) a decision favourable to the person caring for the care receiver or care receivers (the favourable decision) is made as a result of the application for review;

the favourable decision takes effect on the day on which the previous decision took effect.

198Q Date of effect of adverse decision under section 198N

If the Secretary decides under subsection 198N(2), (3) or (4) that subparagraph 198(5)(d)(i) disqualifies a person from carer payment, the decision takes effect:

(a) on the day on which the request under section 198N in respect of the care receiver or care receivers was lodged with the Department; or

(b) if the request was lodged after the Secretary rejected a claim for carer payment by a person caring for the care receiver or care receivers—on the day on which the decision to reject the claim took effect.

199 Carer payment not payable if payment rate nil

199(1) Subject to subsection (2), a carer payment is not payable to a person if the person’s carer payment rate would be nil.

199(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

201AA Newly arrived resident’s waiting period

201AA(1) A person is subject to a newly arrived resident’s waiting period if the person:

(a) enters Australia on or after 4 March 1997; and

(b) has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

Note: For Australian resident see subsection 7(2).

201AA(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a carer payment.

201AA(3) Subsection (1) does not apply to a person who is:

(a) the holder of a subclass 104 visa—Preferential family; and

(b) either a carer or a special need relative.

201AA(4) Subsection (1) does not apply to a person who is:

(a) the holder of a subclass 806 visa—Family; and

(b) either a carer or a special need relative.

201AA(5) Subsection (1) does not apply to a person if:

(a) the person is already subject to a newly arrived resident’s waiting period; or

(b) the person has already served a newly arrived resident’s waiting period; or

(c) at the commencement of this subsection, the person has already been an Australian resident for a period of, or periods totalling, 104 weeks; or

(d) the person holds a visa that is in a class of visas determined in writing by the Minister for the purposes of this paragraph.

201AA(6) In this section:

carer has the same meaning as in the Migration Regulations.

special need relative has the same meaning as in the Migration Regulations as in force on 30 November 1998.

201AB Duration of newly arrived resident’s waiting period

If a person is subject to a newly arrived resident’s waiting period, the period:

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

(b) ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

202 Multiple entitlement exclusion

202(1) A carer payment is not payable to a person if the person is already receiving a service pension.

202(2) If:

(a) a person is receiving a carer payment; and

(b) another social security pension or a social security benefit or service pension becomes payable to the person;

the carer payment 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: For social security pension and social security benefit see subsection 23(1).

202(3) A carer payment is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

(c) is receiving income support supplement under Part IIIA of that Act or would be eligible for income support supplement under that Part if he or she made a claim under section 45I of that Act.

202(4) Subsection (3) does not apply if:

(a) the person:

(i) was on 20 March 1995 receiving; and

(ii) has from that day continuously received; and

(iii) is receiving;

the carer payment; and

(b) the person elected under subsection 45E(2) of the Veterans’ Entitlements Act, or is taken under subsection 45E(3) of that Act to have elected, to continue to receive the carer payment.

202(5) Subsection (3) does not apply if:

(a) before 20 March 1995, the person had made a claim for carer payment; and

(d) the person has since that time continued to receive, and is receiving, the pension.

202(6) Subsection (3) does not apply if:

(a) before 20 March 1995:

(i) the person had made a claim for wife pension; and

(ii) the claim had been rejected; and

(iii) the person had applied, under Chapter 6, for a review of the decision to reject the claim; and

(c) on or after 20 March 1995, the decision to reject the claim was set aside and the person was granted wife pension; and

(d) the person has since that time continued to receive, and is receiving, the pension.

202(7) A carer payment is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA; and

(c) is receiving income support supplement or would be eligible for income support supplement if he or she made a claim under section 45I of the VEA.

Note 1: For armed services widow and armed services widower see subsection 4(1).

Note 2: For MRCA and VEA see subsection 23(1).

202A Exclusion of certain participants in ABSTUDY Scheme

202A(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(d) the payment relates to a period;

carer payment is not payable to the person in respect of any part of the period.

202A(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

carer payment is not payable to the person in respect of any part of the period.

202A(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), carer payment is payable to the person before the person starts the course.

Division 4—Rate of carer payment

210 How to work out a person’s carer payment rate

A person’s carer payment rate is worked out using Pension Rate Calculator A at the end of section 1064 (see Part 3.2).

Subdivision A—Continuation of carer payment

235 Continuation of carer payment for bereavement period where person cared for dies

235(1) If:

(a) a person is receiving carer payment because he or she ordinarily cares for a care receiver or care receivers; and

(b) the person is caring for the care receiver or care receivers or has temporarily ceased to care for the care receiver or care receivers; and

(d) the care receiver who dies is not the person’s partner; and

(e) because of the death, the person would, apart from this subsection, cease to be qualified for the carer payment;

the person remains qualified for the carer payment during the bereavement period as if the death had not occurred.

235(1A) If:

(a) a person (the carer) is receiving a carer payment only because section 198AA or subsection 198AC(2) applies; and

(b) the death occurs of:

(i) the person or any of the persons for whom the person would qualify for carer payment as mentioned in paragraph 198AA(1)(b); or

(ii) the person or any of the persons for whom the constant care mentioned in paragraph 198AC(2)(c) is assumed to be provided; and

the carer remains qualified for carer payment during the bereavement period as if the death had not occurred.

235(3) A person to whom subsection (1) applies may, by written notice to the Secretary, choose not to receive payments under this Subdivision and to receive instead any payments to which the person would be otherwise entitled.

235(4) If a person makes an election under subsection (3):

(a) this Act, or Part III or IIIA of the Veterans’ Entitlements Act, has effect accordingly; and

(b) the person may not withdraw the election after the Department has taken all the action required to give effect to the election.

236 Continued carer payment rate

If a person is qualified for a carer payment solely because of section 235, the rate at which the pension is payable is to be determined having regard to the person’s actual circumstances.

236A Lump sum payable in some circumstances

236A(1) A lump sum is payable to a person under this section if:

(a) the person remains qualified for carer payment because subsection 235(1) or (1A) applies; and

(b) immediately before the death of the person mentioned in that subsection, the person who died was not a member of a couple, or was a member of a couple and his or her partner:

(i) was not receiving a social security pension; and

(ii) was not receiving a social security benefit; and

(iii) was not receiving a service pension or income support supplement.

236A(1A) However, if subsection (1) would apply where 2 or more persons die at the same time, only one payment is payable under that subsection.

236A(2) The amount of the lump sum under this section is the lesser of the amount worked out under subsection (3) and the amount worked out under subsection (4).

236A(3) The amount under this subsection is:

where:

partnered MBR is the maximum basic rate applicable, on the day that the person dies, to a person covered by item 2 of the Maximum Basic Rate Table in point 1064‑B1 of Pension Rate Calculator A in section 1064.

pension supplement is the person’s pension supplement worked out under point 1064‑BA2.

236A(4) The amount under this subsection is:

where:

carer’s current instalment is the amount of the last instalment of carer payment paid to the carer before the person died.

236B Subdivision not to apply in certain cases involving simultaneous death

If:

(a) a lower ADAT score adult and a dependent child of the adult die at the same time; and

(b) apart from this subsection and section 243, because of those deaths, a person would continue to qualify for carer payment under section 235 and would be qualified for payments under Subdivision B; and

(c) the sum of the carer payments for which the person would continue to qualify under section 235 and any lump sum payable to the person under section 236A is less than the sum of the amounts payable to the person under Subdivision B;

the person does not continue to qualify for carer payment under section 235 and no lump sum is payable to the person under section 236A.

Subdivision B—Death of partner

237 Qualification for payments under this Subdivision

237(1) If:

(a) a person is receiving a carer payment; and

(b) the person is a member of a couple; and

(d) immediately before the partner died, the partner:

(i) was receiving a social security pension; or

(ii) was receiving a service pension or income support supplement; or

(iii) was a long‑term social security recipient; and

(i) the amount that would otherwise be payable to the person under section 238 (continued payment of partner’s pension or allowance); and

(ii) the amount that would otherwise be payable to the person under section 240 (person’s continued rate);

the person is qualified for payments under this Subdivision to cover the bereavement period.

Note 1: section 238 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 239 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.

Note 3: a person who is qualified for payments under this Subdivision for the death of the person’s partner may, in some circumstances, be automatically transferred to a parenting payment after the end of the bereavement period without making a claim for that payment (see subsection 501(4)).

237(1A) If:

(a) a person is receiving a carer payment; and

(b) immediately before starting to receive the carer payment the person was receiving partner bereavement payments; and

the person is qualified for payments under this Subdivision to cover the remainder of the bereavement period.

237(1B) Subsection (1) or (1A) does not apply if:

(a) the person is receiving carer payment under section 235 because of the death of a care receiver who is a dependent child of a lower ADAT score adult; and

(b) the person’s partner is the lower ADAT score adult.

237(2) A person who is qualified for payments under this Subdivision may choose not to receive payments under this Subdivision.

237(3) An election 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 Subdivision; and

237(4) If a person is qualified for payments under this Subdivision in relation to the partner’s death, the rate at which carer payment is payable to the person during the bereavement period is, unless the person has made an election under subsection (2), governed by section 240.

237(5) For the purposes of this section, a person is a long‑term social security recipient if:

(a) the person is receiving a social security benefit; and

(b) in respect of the previous 12 months, the person:

(i) was receiving a social security pension; or

(ii) was receiving a social security benefit; or

(iii) was receiving a youth training allowance; or

(iv) was receiving a service pension or income support supplement.

237(6) A person is taken to satisfy the requirements of paragraph (5)(b) if:

(a) the person was receiving one or a combination of the payments referred to in that paragraph for a continuous period of 12 months; or

(b) the person was receiving one or a combination of the payments referred to in that paragraph for 46 weeks of the previous 52.

238 Continued payment of partner’s pension or allowance

238(1) If a person is qualified for payments under this Subdivision 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:

(a) where the partner was receiving a social security pension or social security benefit—the amount that would have been payable to the partner on the payday if the partner had not died; or

(b) where the partner was receiving a service pension or income support supplement—the amount that would have been payable to the partner under Part III or IIIA (as the case may be) of the Veterans’ Entitlements Act on the service payday that:

(i) where the first Thursday after the partner’s death was a service payday—precedes the pension payday; or

(ii) in any other case—follows the pension payday;

if the partner had not died.

Note: For bereavement rate continuation period see section 21.

238(2) For the purposes of subsection (1), if the couple were, immediately before the partner’s death, an illness separated couple or a respite care couple, the amounts are to be worked out as if they were not such a couple.

239 Lump sum payable in some circumstances

If:

(a) a person is qualified for payments under this Subdivision 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. Work out the amount that would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday if:

(a) the person’s partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the person’s partner on the partner’s payday or service payday immediately before the first available bereavement adjustment payday if:

(a) the partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4. Work out the amount that, but for section 240, 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 5. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 6. Work out the number of the partner’s paydays in the bereavement lump sum period.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable to the person under this section.

240 Adjustment of person’s carer payment rate

If:

(a) a person is qualified for payments under this Subdivision; and

(b) the person does not elect under subsection 237(2) not to receive payments under this Subdivision;

the rate of the person’s carer payment during the bereavement period is worked out as follows:

(c) during the bereavement rate continuation period, the rate of carer payment payable to the person is the rate at which the pension would have been payable to the person if:

(i) the person’s partner had not died; and

(ii) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple;

(d) during the bereavement lump sum period (if any), the rate at which carer payment is payable to the person is the rate at which the carer payment would be payable to the person apart from this Subdivision.

241 Effect of death of person entitled to payments under this Subdivision

If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) the person dies within the bereavement period; and

there is payable, to such person as 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. Work out the amount that would have been payable to the person on the person’s payday immediately after the day on which the person died if:

(a) neither the person nor the person’s partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the partner on the partner’s payday or service payday immediately after the day on which the person died if:

(a) neither the person nor the partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4. Work out the amount that, but for section 240, 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 5. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 6. Work out the number of partner’s paydays in the period that commences on the day on which the person dies and ends on the day on which the bereavement period ends.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable under this section.

242 Benefits under this Subdivision

242(1) If:

(a) a person is qualified for payments under this Subdivision 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 Act or under Part III or IIIA of the Veterans’ Entitlements Act; and

the following provisions have effect:

(e) the amount payable to the person under this Subdivision is to be reduced by the amount referred to in paragraph (b).

242(2) If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) an amount to which the person’s partner would have been entitled if the person’s partner had not died has been paid under this Act or under Part III or IIIA of the Veterans’ Entitlements Act 1986, within the bereavement period, into an account with a bank; and

(c) the bank pays to the person, out of that account, an amount not exceeding the total of the amounts paid as mentioned in paragraph (b);

243 Subdivision not to apply in certain cases involving simultaneous death

If:

(a) a lower ADAT score adult and a dependent child of the adult die at the same time; and

(b) apart from this subsection and section 236B, because of those deaths a person would be qualified for payments under this Subdivision and would continue to qualify for carer payment under section 235; and

(c) the sum of the amounts payable to the person under this Subdivision is less than or equal to the sum of the carer payments for which the person would continue to qualify under section 235 and any lump sum payable to the person under section 236A;

no amounts are payable to the person under this Subdivision.

Subdivision D—Death of recipient

246 Death of recipient

246(1) If:

(a) a person is receiving carer payment; and

(b) either:

(i) the person is not a member of a couple; or

(ii) the person is a member of a couple and the person’s partner:

(A) is not receiving a social security pension; and

246(2) If an amount is paid under subsection (1) in respect of a person, the Commonwealth is not liable to any action, claim or demand for any further payment under that subsection in respect of the person.

Note 1: for amounts owing to the recipient before the recipient’s death see section 219.

Note 2: for death of a person qualified for bereavement payments under Subdivision B see section 241.

Part 2.5A—One‑off payment to people eligible for carer payment

247 One‑off payment to carers (carer payment related)

A person (the qualified person) is qualified for a one‑off payment to carers (carer payment related) if the person has been paid an instalment of carer payment in respect of a period that includes 11 May 2004.

Note: The person may also be qualified for a one‑off payment to carers (carer allowance related) under Part 2.19A.

248 What is the amount of the payment?

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5B—2005 one‑off payment to people eligible for carer payment

249 2005 one‑off payment to carers (carer payment related)

A person (the qualified person) is qualified for a 2005 one‑off payment to carers (carer payment related) if the person has been paid an instalment of carer payment in respect of a period that includes 10 May 2005.

Note: The person may also be qualified for a 2005 one‑off payment to carers (carer allowance related) under Part 2.19B.

250 What is the amount of the payment?

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5C—2005 one‑off payment to people eligible for carer service pension

251 2005 one‑off payment to carers (carer service pension related)

A person (the qualified person) is qualified for a 2005 one‑off payment to carers (carer service pension related) if the person has been paid an instalment of carer service pension as a result of the operation of subclause 8(2) or (4) of Schedule 5 to the Veterans’ Entitlements Act 1986 in respect of a period that includes 10 May 2005.

252 What is the amount of the payment?

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5D—2006 one‑off payment to carers eligible for carer payment

253 2006 one‑off payment to carers (carer payment related)

A person (the qualified person) is qualified for a 2006 one‑off payment to carers (carer payment related) if:

(a) the person has been paid an instalment of carer payment in respect of a period that includes 9 May 2006; and

(b) the person was paid that instalment because of a claim the person made on or before 9 May 2006.

254 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5E—2006 one‑off payment to carers eligible for wife pension

255 2006 one‑off payment to carers (wife pension related)

A person (the qualified person) is qualified for a 2006 one‑off payment to carers (wife pension related) if:

(a) the person:

(i) has been paid an instalment of wife pension in respect of a period that includes 9 May 2006; and

(ii) was paid that instalment because of a claim the person made on or before 9 May 2006; and

(b) the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(i) the instalment was in respect of a period that includes 9 May 2006;

(ii) the reason why that instalment covered 9 May 2006 was not only because of clause 16 or 17 of Schedule 2 to the Administration Act;

(iii) the person was paid that instalment because of a claim the person made on or before 9 May 2006.

256 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5F—2006 one‑off payment to carers eligible for partner service pension

257 2006 one‑off payment to carers (partner service pension related)

A person (the qualified person) is qualified for a 2006 one‑off payment to carers (partner service pension related) if:

(a) the person:

(i) has been paid an instalment of partner service pension under Part III of the Veterans’ Entitlements Act in respect of a period that includes 9 May 2006; and

(ii) was paid that instalment because of a claim the person made on or before 9 May 2006; and

(b) the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(i) the instalment was in respect of a period that includes 9 May 2006;

(ii) the reason why that instalment covered 9 May 2006 was not only because of clause 16 or 17 of Schedule 2 to the Administration Act;

(iii) the person was paid that instalment because of a claim the person made on or before 9 May 2006.

258 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5G—2006 one‑off payment to carers eligible for carer service pension

259 2006 one‑off payment to carers (carer service pension related)

A person (the qualified person) is qualified for a 2006 one‑off payment to carers (carer service pension related) if:

(a) the person has been paid an instalment of carer service pension as a result of the operation of subclause 8(2) or (4) of Schedule 5 to the Veterans’ Entitlements Act in respect of a period that includes 9 May 2006; and

(b) the person was paid that instalment because of a claim the person made on or before 9 May 2006.

260 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.7—Bereavement allowance

Division 1—Qualification for and payability of bereavement allowance

315 Qualification for bereavement allowance

315(1) A person is qualified for a bereavement allowance on a day if:

(a) the person:

(i) was a member of a couple; and

(ii) stopped being a member of a couple because the person’s partner died; and

(b) the person is not a member of a couple; and

(d) at least one of the following conditions is satisfied:

(i) when the person’s partner died, both the person and the person’s partner were Australian residents;

(ii) the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks; or

(iiia) the person has a qualifying residence exemption for a bereavement allowance;

(iv) the person is a woman:

(A) to whom a wife pension, or a partner service pension under Part III of the Veterans’ Entitlements Act, was payable immediately before her partner died; and

(B) who was not in Australia when her partner died; and

(e) the day occurs:

(i) if the person is a man, or a woman who was not pregnant when her partner died—in the period of 14 weeks starting on the day of the death of the partner; or

(ii) if the person is a woman who was pregnant when her partner died:

(A) in the period of 14 weeks starting on the day of the death of the partner; or

(B) in the period starting on the day of the death of the partner and ending when the child is born or the woman otherwise stops being pregnant;

whichever ends later.

Note: For Australian resident and qualifying residence exemption see section 7.

316 Bereavement allowance not payable if allowance rate nil

316(1) Subject to subsection (2), a bereavement allowance is not payable to a person if the person’s bereavement allowance rate would be nil.

316(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

321 Multiple entitlement exclusion

321(1) A bereavement allowance is not payable to a person if the person is already receiving a service pension.

321(2) If:

(a) a person is receiving a bereavement allowance; and

(b) another social security pension or a social security benefit or service pension becomes payable to the person;

the bereavement 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: For social security pension and social security benefit see subsection 23(1).

321(3) A bereavement allowance is not payable to a woman if:

(a) the woman is an armed services widow; and

(b) the woman is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: for armed services widow see subsection 4(1).

321(4) A bereavement allowance is not payable to a man if:

(a) the man is an armed services widower; and

(b) the man is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: for armed services widower see subsection 4(1).

321A Exclusion of certain participants in ABSTUDY Scheme

321A(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(d) the payment relates to a period;

bereavement allowance is not payable to the person in respect of any part of the period.

321A(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

bereavement allowance is not payable to the person in respect of any part of the period.

321A(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), bereavement allowance is payable to the person before the person starts the course.

Division 4—Rate of bereavement allowance

329 How to work out a person’s bereavement allowance rate

A person’s rate of bereavement allowance is worked out using Pension Rate Calculator C at the end of section 1066 (see Part 3.4).

Subdivision B—Death of recipient

359 Death of recipient

359(1) If:

(a) a person is receiving bereavement allowance; and

(b) the person dies;

359(2) If an amount is paid under subsection (1) in respect of a person, the Commonwealth is not liable to any action, claim or demand for any further payment under that subsection in respect of the person.

Note: for amounts owing to the recipient before the recipient’s death see section 338.

Part 2.8—Widow B pension

Division 1—Qualification for and payability of widow B pension

362A Widow B pension not to be granted in certain cases

362A(1) In spite of anything else in this Part, a widow B pension must not be granted to a woman unless:

(a) the woman’s claim for the pension is lodged before 20 March 1997; and

(b) the woman is qualified for the pension before that day.

362A(2) For the purposes of subsection (1), if a provision of section 15 of the Administration Act applies, the woman is taken to have lodged her claim for a widow B pension on the day on which she lodged her incorrect claim or her initial claim, as the case may be.

362A(3) This section does not apply in relation to a determination by the Secretary under section 85 of the Administration Act.

362A(4) For the purposes of subsection (2):

incorrect claim or initial claim has the same meaning as in the provision of section 15 of the Administration Act that applies as referred to in subsection (2).

362 Qualification for widow B pension

362(1) A woman is qualified for a widow B pension if:

(a) the woman:

(i) was, immediately before 1 July 1987, receiving a widow’s pension as a class B widow under the 1947 Act; or

(ii) on 1 July 1987 had turned 45 years old and:

(A) was receiving a supporting parent’s benefit or a widow’s pension as a class A widow on or after that day; or

(B) was receiving a sole parent’s pension after 1 March 1989; or

(iii) on 1 July 1987 had turned 50 years old; and

(b) the woman is not qualified for parenting payment; and

(i) was legally married and her husband has died; or

(ii) was a dependent female, that is:

(A) she was a member of a couple and her partner has died; and

(B) she was a member of the couple for 3 years immediately before her partner died; and

(iii) is divorced from her husband; or

(iv) was legally married and her husband has deserted her without just cause for a period of at least 6 months; or

(v) is legally married to a man who is in gaol and has been in gaol continuously for at least 6 months; or

(vi) was:

(A) a party to a purported marriage that is void; and

(B) the man who was the other party to the purported marriage has deserted her without just cause for a period of at least 6 months; and

(d) the woman is not a member of another couple; and

(e) either:

(i) the woman had been an Australian resident for a continuous period of at least 5 years immediately before the day she lodged the claim for the widow B pension; or

(ii) the woman has, at any time, been an Australian resident for a continuous period of at least 10 years; or

(iia) the woman has a qualifying residence exemption for a widow B pension; or

(iii) both the woman and her partner were Australian residents at the time:

(A) if she was legally married and her husband has died—when he died; or

(B) if she was a dependent female—when her partner died; or

(D) if she was legally married and her husband has deserted her—when she was deserted; or

(E) if she was a party to a purported marriage and the man who was the other party has deserted her—when she was deserted; or

(F) if she was legally married and her husband has been in gaol for a period of at least 6 months—when that period began.

Note: For Australian resident and qualifying residence exemption see section 7.

362(2) A woman does not have to satisfy paragraph (1)(e) in order to be qualified for a widow B pension if:

(a) the woman became a person to whom paragraph (1)(c) applied because of the death of a man; and

(b) the woman was, immediately before the man died, receiving:

(i) a wife pension because the man was receiving:

(A) an age pension; or

(B) an invalid pension or a disability support pension; or

(D) a special needs invalid pension or a special needs disability support pension; or

(ii) a partner service pension under Part III of the Veterans’ Entitlements Act because the man was receiving a service pension under that Part; and

362(3) Subsection (1) has effect subject to:

(a) sections 1215 to 1216B (limits on portability); and

(b) sections 1218, 1218A, 1218B, 1218C and 1219 (departure certificate requirements for people leaving Australia).

Note: a person who is receiving a widow B pension may be automatically transferred to the age pension if the person becomes qualified for the age pension (see subsection 48(3)).

364 Widow B pension not payable if pension rate nil

364(1) Subject to subsection (2), a Widow B pension is not payable to a person if the person’s Widow B pension rate would be nil.

364(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

368 Multiple entitlement exclusion

368(1) A widow B pension is not payable to a woman if the woman is already receiving a service pension.

368(2) If:

(a) a woman is receiving a widow B pension; and

(b) another social security pension or a social security benefit or service pension becomes payable to the woman;

the widow B pension is not payable to the woman.

Note 1: another payment type will generally not become payable to the woman until the woman claims it.

Note 2: For social security pension and social security benefit see subsection 23(1).

368(3) A widow B pension is not payable to a woman if:

(a) the woman is an armed services widow; and

(b) the woman is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: for armed services widow see subsection 4(1).

368A Exclusion of certain participants in ABSTUDY Scheme

368A(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(d) the payment relates to a period;

widow B pension is not payable to the person in respect of any part of the period.

368A(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

widow B pension is not payable to the person in respect of any part of the period.

368A(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), widow B pension is payable to the person before the person starts the course.

Division 4—Rate of widow B pension

376 How to work out the rate of widow B pension

A woman’s widow B pension rate is worked out using Pension Rate Calculator C at the end of section 1066 (see Part 3.4).

Subdivision B—Death of recipient

407 Death of recipient

407(1) If:

(a) a person is receiving widow B pension; and

(b) the person dies;

407(2) If an amount is paid under subsection (1) in respect of a person, the Commonwealth is not liable to any action, claim or demand for any further payment under that subsection in respect of the person.

Note: for amounts owing to the recipient before the recipient’s death see section 386.

Part 2.8A—Widow allowance

Division 1—Time limit on grants of widow allowance

408AA Time limit on grants

A woman is not to be granted widow allowance on or after 1 July 2005 unless she was born on or before 1 July 1955.

Division 2—Qualification for and payability of widow allowance

408BA Qualification for widow allowance

408BA(2) Subject to section 408BB, a woman is qualified for widow allowance in respect of a period if:

(a) she has turned 50; and

(b) she was a member of a couple and since turning 40:

(i) her partner died; or

(ii) she separated from her partner; or

(iii) she divorced from her husband; and

(c) she satisfies the Secretary that she has no recent workforce experience on the day when she makes her claim for the allowance; and

(d) at least one of the following is satisfied:

(i) if the woman entered Australia before 1 April 1996—the woman has been an Australian resident for a continuous period of at least 26 weeks immediately before the day she lodged the claim for the allowance; or

(ia) if the woman entered Australia on or after 1 April 1996 and before the commencement day—the woman has been an Australian resident for a period of, or periods totalling, 104 weeks before the day she lodged the claim for the allowance; or

(ib) if the woman entered Australia on or after the commencement day—the woman has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks before the day she lodged the claim for the allowance; or

(ii) she has 10 years qualifying Australian residence; or

(iii) she has a qualifying residence exemption for widow allowance; or

(iv) both the woman and her partner were Australian residents at the time when the qualifying event under paragraph (b) occurred; and

(e) throughout the period, she:

(i) is not a member of a couple; and

(ii) throughout the period, she is an Australian resident.

Note 1: For recent workforce experience see subsection (3).

Note 2: For Australian resident and qualifying residence exemption see section 7.

Note 4: For member of a couple see section 4.

408BA(3) For the purposes of subsection (2), recent workforce experience is employment of 20 hours or more a week for a total of 13 weeks or more at any time during the 12 months immediately before the day the woman lodged the claim for the allowance.

408BA(6) In this section:

commencement day means the day on which Schedule 5 to the Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999 commences.

408BB Assurance of support

A woman is not qualified for widow allowance in respect of a period if the Secretary is satisfied that:

(a) an assurance of support is in force in respect of the woman for that period; and

(b) throughout the period the person who gave the assurance of support is likely to be willing and able to provide an adequate level of support to the woman; and

Note: For assurance of support see subsection 23(1).

408CA Widow allowance not payable if allowance rate nil

408CA(1) Subject to subsection (2), a widow allowance is not payable to a person if the person’s widow allowance rate would be nil.

408CA(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

408CE Assets test—allowance not payable if assets value limit exceeded [see Appendix for CPI adjusted figures]

408CE(1) Widow allowance is not payable to a woman if the value of her assets exceeds her assets value limit.

408CE(2) A woman’s assets value limit is worked out using the following Table:

Assets value limit table
Column 1 Item	Column 2 Woman’s situation	Column 3 Assets value limit
1	Woman is a homeowner	$115,000
2	Woman is not a homeowner	$197,000

Note 1: For homeowner see section 11.

Note 2: The assets value limit in column 3 of item 1 is indexed annually in line with CPI increases (see sections 1190 to 1194).

Note 3: The assets value limit in column 3 of item 2 is adjusted annually (see subsection 1204(1)).

Note 4: If widow allowance is not payable to a woman because of the value of the her assets, she may be able to take advantage of provisions dealing with financial hardship (see sections 1131 and 1132).

408CF Multiple entitlement exclusion

408CF(1) Widow allowance is not payable to a woman if she is already receiving a service pension or income support supplement.

408CF(2) If:

(a) a woman is receiving widow allowance; and

(b) a social security pension, another social security benefit, a service pension or income support supplement becomes payable to her;

widow allowance is not payable to her.

Note 1: Another payment type will generally not become payable to the woman until the woman claims it.

408CF(3) Widow allowance is not payable to a woman if:

(a) she is an armed services widow; and

(b) she is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act;

unless:

(d) before 1 November 1986 she was also receiving a social security benefit.

Note 1: For armed services widow see subsection 4(1).

Note 2: A widow receiving a payment under the Veterans’ Entitlements Act who is not covered by paragraph (b) may be paid at a lower rate—see subsection 1068(3).

408CF (4) Subject to subsections (5) and (6), widow allowance is not payable to a woman for a period if a payment has been or may be made in respect of the woman for that period under:

(a) a prescribed educational scheme other than the ABSTUDY 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.

Note 1: For prescribed educational scheme see section 5.

408CF(5) If:

(a) a woman enrols in a full‑time course of education; and

(b) a payment under a scheme referred to in subsection (4) may be made in respect of her;

the Secretary may decide that, in spite of subsection (4), widow allowance is payable to her for a period before she starts the course.

408CF(6) If:

(a) a woman enrols in a full‑time course of education; and

(b) the course is to last for 6 months or more; and

(ii) the ABSTUDY Schools Scheme; or

(iii) the ABSTUDY Tertiary Scheme; and

(d) she was receiving widow allowance immediately before the start of the course;

the Secretary may decide that, in spite of subsection (4), widow allowance is payable to her until:

(e) the application is determined; or

(f) the end of 3 weeks commencing on the day on which the course starts;

whichever happens first.

408CG Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

The maximum basic rate, and the remote area allowance, of widow allowance for a period are not payable to a woman who is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1: For remote area allowance see Module J of Benefit Rate Calculator B.

Note 2: For CDEP Scheme participant see subsection 23(1).

408CH Seasonal workers

408CH(1) This section applies if, at any time during the 6 months immediately before the day on which a woman lodges a claim for widow allowance, she has been engaged in seasonal work.

Note: For seasonal work see subsection 16A(1).

408CH(2) Widow allowance is not payable to the woman:

(a) if she is subject to a seasonal work preclusion period (whether in relation to the claim referred to in subsection (1) or any other claim under this Act) and the Secretary has not made a determination under subsection (3) in relation to her—for her seasonal work preclusion period; or

(b) if the Secretary has made a determination under subsection (3) in relation to her—for that part (if any) of her seasonal work preclusion period to which she is subject as a result of the determination.

Note: For seasonal work preclusion period see subsection 16A(1).

408CH(3) If the Secretary is satisfied that a woman is in severe financial hardship because she has incurred unavoidable or reasonable expenditure while she is subject to a seasonal work preclusion period (whether in relation to the claim referred to in subsection (1) or any other claim under this Act):

(a) the Secretary may determine that she is not subject to the whole, or any part, of the preclusion period; and

(b) the determination has effect accordingly.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Division 5—Rate of widow allowance

408FA How to work out a woman’s widow allowance rate

A woman’s widow allowance rate is worked out using the Benefit Rate Calculator B at the end of section 1068.

408GI CDEP Scheme participant may accumulate widow allowance

408GI(1) A person who is a CDEP Scheme participant in respect of the whole or a part of a quarter may, by written notice given to the Secretary, choose to accumulate the amounts of any widow allowance that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

408GI(2) If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

(a) unless paragraph (b) applies, the last day of the quarter; or

(b) if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

408GI(3) In this section:

quarter means a CDEP Scheme quarter.

Note 1: For CDEP Scheme participant see section 1188B.

Note 2: For CDEP Scheme quarter see subsection 23(1).

Part 2.10—Parenting payment

Division 1—Qualification for and payability of parenting payment

500 Qualification for parenting payment

500(1) A person is qualified for parenting payment if:

(a) the person has at least one PP child (see sections 500D to 500H); and

(b) the person is an Australian resident; and

(c) the person satisfies any requirement to enter into a participation agreement that applies to the person under Division 2; and

(d) at least one of the following conditions is satisfied:

(i) the person is not a member of a couple and the person was not a lone parent at the start of the person’s current period as an Australian resident (see subsections (2) and (3));

(ii) the person has, at any time, been in Australia for a period of, or periods adding up to, at least 104 weeks during a continuous period throughout which the person was an Australian resident;

(iii) the person has a qualifying residence exemption for parenting payment.

Note 1: For Australian resident and qualifying residence exemption see section 7.

Note 2: If a person is claiming parenting payment under a scheduled international social security agreement, the requirements of this subsection could be modified by section 1208A.

500(2) For the purposes of subparagraph (1)(d)(i), a person’s current period as an Australian resident is a period that satisfies both the following conditions:

(a) the person has been an Australian resident for the entire period;

(b) the person lodged the claim for parenting payment during the period.

500(3) For the purposes of subparagraph (1)(d)(i), a person was a lone parent on a particular day if, on that day:

(a) the person was not a member of a couple; and

(b) the person had a dependent child.

500(4) If:

(a) a person ceases to be qualified for parenting payment because of a failure to comply with a requirement to enter into a participation agreement; and

(b) the Secretary, under section 80 of the Administration Act, cancels or suspends the person’s parenting payment because of that loss of qualification; and

(c) within 13 weeks after the date of effect of the action taken by the Secretary, the person enters into a participation agreement;

the person’s qualification for parenting payment is taken, for the purposes of paragraph 500(1)(c) of this Act, never to have ceased.

500B Qualification affecting member of couple—assurance of support

A person who is a member of a couple is not qualified for parenting payment if the Secretary is satisfied that:

(a) an assurance of support is in force in respect of the person (the assuree); and

(b) the person who gave the assurance of support is willing and able to provide an adequate level of support to the assuree; and

Note: For assurance of support see subsection 23(1).

500C Qualification affecting member of couple—unemployment due to industrial action

500C(1) If:

(a) a person (claimant) who is a member of a couple has claimed but has not yet received parenting payment; and

(b) when the claim was lodged, the claimant was unemployed;

the claimant is not qualified for parenting payment unless the Secretary is satisfied that the claimant’s unemployment is not due to the fact that the claimant is, or has been, engaged in industrial action or a series of industrial actions.

500C(2) For the purposes of subsection (1) and without limiting that subsection, a claimant is taken not to be, or not to have been, engaged in industrial action or a series of industrial actions if the Secretary is satisfied that the claimant’s unemployment is due to the fact that other persons are, or have been, engaged in industrial action or in a series of industrial actions, and that:

(a) if industrial action is still being engaged in:

(i) those persons, or some of those persons, are members of a trade union that is involved in the industrial action, or have been such members at any time since industrial action started; and

(ii) the claimant has not been a member of that trade union at any time since industrial action started; or

(b) if industrial action has stopped:

(i) at any time while industrial action was being engaged in, those persons, or some of those persons, were members of a trade union that was involved in the industrial action; and

(ii) the claimant was not a member of that trade union at any time while industrial action was being engaged in.

500C(3) Subsection (1) does not prevent a person from being qualified for parenting payment after the relevant industrial action or series of industrial actions has stopped.

Note: For industrial action, trade union and unemployment see section 16 and for PP (partnered) payday see section 18.

500D PP child

500D(1) A PP child of a person is a child who:

(a) is a dependent child of the person; and

(b) has not turned 16.

Note: For dependent child see subsections 5(2) to (9).

500D(2) For the purpose of determining whether a child is a PP child of a person, the child is taken to remain in the person’s care if:

(a) at the start of a period not exceeding 8 weeks, the child leaves the person’s care; and

(b) throughout the period, the child is the PP child of another person; and

(c) the child returns, or the Secretary is satisfied that the child will return, to the first person’s care at the end of the period.

Note: The definition of dependent child in subsection 5(2) requires a young person to be in an adult’s care.

500D(3) Subsection (2) does not, by implication, affect the determination of whether a child is in the care of a person in cases to which the subsection does not apply (for example, if the period exceeds 8 weeks).

500E Child to be PP child for only one person

500E(1) A child can be a PP child of only one person at a time.

500E(2) If the Secretary is satisfied that, but for this section, a child would be a PP child of 2 or more persons (adults), the Secretary must:

(a) make a written determination specifying one of them as the person in relation to whom the child is to be a PP child; and

(b) give each adult who has claimed parenting payment a copy of the determination.

500E(3) The Secretary may make the determination even if all the adults have not claimed parenting payment.

500F PP child—child absent from Australia for more than 13 weeks

500F(1) If a dependent child:

(a) leaves Australia temporarily; and

(b) continues to be absent from Australia for more than 13 weeks;

the child cannot be a PP child at any time after the 13 weeks while the child remains absent from Australia unless, at that time:

(d) the person is a person in relation to whom the child is a PP child; and

(e) the person’s portability period for parenting payment (within the meaning of that Division) has not ended.

500F(2) For the purposes of subsection (1), in determining if an absence is temporary, regard must be had to the following factors:

(a) the purpose of the absence;

(b) the intended duration of the absence;

500G PP child—child born outside Australia

If a dependent child:

(a) is born outside Australia; and

(b) continues to be absent from Australia for a period of more than 13 weeks immediately following the child’s birth;

the child cannot be a PP child at any time after the 13 weeks while the child remains absent from Australia unless, at that time:

(d) the person is a person in relation to whom the child is a PP child; and

(e) the person’s portability period for parenting payment (within the meaning of that Division) has not ended.

500H PP child—child subsequently departs Australia

If:

(a) a dependent child is not a PP child because of section 500F (absence from Australia) or 500G (birth outside Australia), or because of a previous application of this section; and

(b) the child comes to Australia; and

the child cannot be a PP child when the child leaves Australia as mentioned in paragraph (c).

Subdivision B—General principles relating to payability

500I Parenting payment not payable if payment rate nil

500I(1) Subject to subsection (2), a parenting payment is not payable to a person if the person’s parenting payment rate would be nil.

500I(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

500Q Assets test—payment not payable if assets value limit exceeded
[see Appendix for CPI adjusted figures]

500Q(1) Parenting payment is not payable to a person if the value of the person’s assets exceeds the person’s assets value limit.

500Q(2) The assets value limit of a person who is not a member of a couple is worked out using the following table:

Table—Assets value limits for person who is not a member of a couple
Column 1 Item	Column 2 Person’s situation	Column 3 Assets value limit
1	Person is a homeowner	$125,750
2	Person is not a homeowner	$215,750

Note 1: For homeowner see section 11.

Note 2: The assets value limit in Column 3 of Item 1 is indexed annually in line with CPI increases (see sections 1190 to 1194).

Note 3: The assets value limit in Column 3 of Item 2 is adjusted annually (see subsection 1204(1)).

Note 4: If parenting payment is not payable to a person because of the value of the person’s assets, the person may be able to take advantage of provisions dealing with financial hardship (see sections 1130B and 1130C).

500Q(3) The assets value limit of a person who is a member of a couple is worked out using the following table:

Table—Assets value limits for person who is a member of a couple
Column 1 Item	Column 2 Person’s situation	Column 3 Assets value limit
		Column 3A Either person or partner homeowner	Column 3B Neither person nor partner homeowner
1	Person is partnered (partner getting neither pension nor benefit)	$178,500	$268,500
2	Person is partnered (partner getting pension or benefit)	$89,250	$134,250

Note 1: For partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see subsection 4(11).

Note 2: For homeowner see subsection 11(4).

Note 3: If item 1 applies to a person, the value of all the assets of the person’s partner are to be taken as being included in the value of the person’s assets (see subsection (4)). If item 2 applies to a person, the value of the person’s assets is only half the combined value of the person’s assets and the assets of the person’s partner (see subsection (5)).

Note 4: If benefit PP (partnered) is not payable to a person because of the value of the person’s assets, the person may be able to take advantage of provisions dealing with financial hardship (see sections 1131 and 1132).

Note 5: The assets value limits of item 2 are indexed annually in line with CPI increases (see sections 1191 to 1194).

Note 6: The item 1 assets value limits are adjusted annually so that they are twice the corresponding item 2 limits (see subsections 1204(2) and (3)).

500Q(4) For the purposes of subsection (3), if the person is partnered (partner getting neither pension nor benefit):

(a) the value of the person’s assets includes the value of the partner’s assets; and

(b) the value of assets of a particular kind of the person includes the assets of that kind of the partner.

Note: For partnered (partner getting neither pension nor benefit) see subsection 4(11).

500Q(5) For the purposes of subsection (3), if the person is partnered (partner getting pension or benefit):

(a) the value of the person’s assets is taken to be 50% of the sum of the value of the assets of the person and the value of the assets of the person’s partner; and

(b) the value of the person’s assets of a particular kind are taken to be 50% of the sum of the value of the assets of that kind of the person and the value of the assets of that kind of the person’s partner.

Note: For partnered (partner getting pension or benefit) see subsection 4(11).

500Q(6) If the Secretary determines in writing a higher amount in substitution for an existing amount in item 1 in the table in subsection (3), the higher amount is taken, on 1 July 2000, to be substituted for the existing amount. A determination under this subsection is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

500Q(7) On 1 July 2000, each amount specified in a column in item 2 in the table in subsection (3) is taken to have been replaced with the amount (adjusted in accordance with section 1206GC) that was specified in the equivalent column in item 2 in the table in point 1068B‑B3 immediately before that table was repealed by the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 1) 1999.

500R Parenting payment not payable to more than one member of a couple

500R(1) Subject to subsection (2), if one member of a couple is receiving parenting payment, parenting payment is not payable to the other member of the couple.

500R(2) If:

(a) both members of a couple are qualified for parenting payment; and

(b) both of them have claimed parenting payment (whether or not one of them is receiving parenting payment);

the Secretary must:

(c) make a written determination specifying one of them as the member of the couple to whom parenting payment is payable; and

(d) give a copy of the determination to both of them.

500R(3) Parenting payment is not payable to the member of the couple not specified in the determination.

500S Multiple entitlement exclusion

500S(1) Parenting payment is not payable to a person if the person is already receiving a service pension.

500S(2) If:

(a) a person is receiving parenting payment; and

(b) a social security pension other than a pension PP (single) or a social security benefit other than a benefit PP (partnered) or service pension becomes payable to the person;

parenting payment 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: For social security pension and social security benefit see subsection 23(1).

500S(3) Parenting payment is not payable to a woman if:

(a) the woman is an armed services widow; and

(b) the woman is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: For armed services widower see subsection 4(1).

500S(4) Parenting payment is not payable to a man if:

(a) the man is an armed services widower; and

(b) the man is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: For armed services widower see subsection 4(1).

500S(5) Parenting payment is not payable to a person if:

(a) the person is an armed services widow or an armed services widower; and

(b) the person has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA.

Note 1: For armed services widow and armed services widower see subsection 4(1).

Note 2: For MRCA see subsection 23(1).

500V Educational schemes exclusion—person member of a couple

500V(1) This section applies to a person who is a member of a couple.

500V(2) Parenting payment is not payable to the person if the person is receiving:

(b) payments under the ABSTUDY Scheme (other than payments under the ABSTUDY Scheme as a part‑time student); or

500VA Exclusion of certain participants in ABSTUDY Scheme

500VA(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(d) the payment relates to a period;

pension PP (single) is not payable to the person in respect of any part of the period.

500VA(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

pension PP (single) is not payable to the person in respect of any part of the period.

500VA(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), pension PP (single) is payable to the person before the person starts the course.

500W Maximum basic rate and remote area allowance not payable to CDEP Scheme participant who is a member of a couple

The maximum basic rate, and the remote area allowance, of a parenting payment for a period is not payable to a person who is a member of a couple and is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1: For CDEP Scheme participant see subsection 23(1).

Note 2: For remote area allowance see Module G of Benefit PP (partnered) Rate Calculator.

500Y Non‑payment periods and rate reduction periods for newstart allowance, youth allowance and austudy payment—person member of a couple

500Y(1) This section applies to a person who is a member of a couple.

500Y(2) Parenting payment is not payable to a person if:

(a) a period of non‑payment of newstart allowance has been applied to the person under Subdivision F of Division 1 of Part 2.12 or under section 634; or

(b) an activity test breach rate reduction period or an administrative breach rate reduction period for newstart allowance has been applied to the person under section 644AA or 644B; or

(c) a period of non‑payment of youth allowance has been applied to the person under Subdivision D of Division 2 of Part 2.11; or

(d) the person is subject to an employment‑related exclusion for a period under section 553B or 553C; or

(e) an activity test breach rate reduction period or an administrative breach rate reduction for youth allowance has been applied to the person under Subdivision B or C of Division 5 of Part 2.11; or

(f) a period of non‑payment of austudy payment has been applied to the person under Subdivision E of Division 2 of Part 2.11A; or

(g) an activity test breach rate reduction period or an administrative breach rate reduction for austudy payment has been applied to the person under Subdivision B or C of Division 5 of Part 2.11A;

and that period has not ended.

500Y(3) Subsection (2) does not apply in relation to a particular period of non‑payment or rate reduction if the Secretary is satisfied that it should not so apply.

500Z Seasonal workers—preclusion period

500Z(1) This section applies if:

(a) a person who is a member of a couple has lodged a claim for parenting payment; and

(b) at any time during the 6 months immediately before the day on which the person lodged the claim, the person, or the person’s partner, has been engaged in seasonal work.

Note: For seasonal work see subsection 16A(1).

500Z(2) Parenting payment is not payable to the person:

(a) if the person is subject to a seasonal work preclusion period (whether in relation to the claim referred to in subsection (1) or any other claim under this Act) and the Secretary has not made a determination under subsection (3) in relation to the person—for the person’s seasonal work preclusion period; or

(b) if the Secretary has made a determination under subsection (3) in relation to the person—for that part (if any) of the person’s seasonal work preclusion period to which the person is subject as a result of the determination.

Note 1: For seasonal work preclusion period see subsection 16A(1).

500Z(3) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while the person is subject to a seasonal work preclusion period (whether in relation to the claim referred to in subsection (1) or any other claim under this Act):

(a) the Secretary may determine that the person is not subject to the whole, or any part, of the preclusion period; and

(b) the determination has effect accordingly.

Note 1: For in severe financial hardship see subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Subdivision C—Payability in circumstances of participation agreement breach

500ZA Third and subsequent participation agreement breach consequences

500ZA(1) Parenting payment is not payable to a person who is qualified for parenting payment while a participation agreement breach non‑payment period applies to the person.

500ZA(2) A participation agreement breach non‑payment period applies to a person if:

(a) the person commits a participation agreement breach (the latest breach); and

(b) the latest breach is the third or subsequent participation agreement breach within the 2 years immediately before the day after the latest breach.

500ZB Participation agreement breaches

A person has committed a participation agreement breach if the person fails to take reasonable steps to comply with the terms of a participation agreement that is in force in respect of the person.

500ZC Length of participation agreement breach non‑payment period

Basic rule

500ZC(1) Subject to subsections (2) and (3), the length of a participation agreement breach non‑payment period is 8 weeks.

Pre‑existing non‑payment period

500ZC(2) If, at the time of the commencement of a participation agreement breach non‑payment period, the person is already subject to a participation agreement breach non‑payment period (pre‑existing non‑payment period), the pre‑existing non‑payment period is taken to end immediately before the commencement of the participation agreement breach non‑payment period.

Effect on non‑payment period of complying with terms of agreement within 13 weeks

500ZC(3) If:

(a) a participation agreement breach non‑payment period applies to a person (or would apply to a person apart from this subsection); and

(b) not more than 13 weeks after the start of the period, the person takes reasonable steps to comply, or resume compliance, with the terms of:

(i) a participation agreement that is in force in respect of the person; or

(ii) if there is no participation agreement in force in respect of the person—the participation agreement that was in force in respect of the person immediately before the commencement of the non‑payment period;

this Subdivision has effect, for the purpose only of determining the payability of parenting payment in relation to the person:

(d) if a prior breach penalty period had started not more than 13 weeks before the person took those reasonable steps—as if that prior breach penalty period had also never started.

500ZC(4) In subsection (3):

breach penalty period means a participation agreement breach rate reduction period or a participation agreement breach non‑payment period.

500ZD Start of participation agreement breach non‑payment period

Notice of start of period

500ZD(1) If a participation agreement breach non‑payment period applies to a person, the Secretary must give the person a written notice telling the person of the start of the period.

500ZD(2) A notice under subsection (1) must contain reasons why the participation agreement breach non‑payment period applies to the person.

General rule

500ZD(3) Subject to subsection (4), the participation agreement breach non‑payment period starts on the 14th day after the day on which the notice is given to the person.

Parenting payment ceasing to be payable

500ZD(4) If:

(a) on or before the day on which a person’s participation agreement breach non‑payment period would (apart from this subsection) have started, parenting payment ceases to be payable to the person; and

(b) it has not ceased to be payable because of the application of a participation agreement breach non‑payment period;

the participation agreement breach non‑payment period starts on the day on which parenting payment ceases to be payable to the person.

500ZE Interaction with participation agreement breach rate reduction periods

Application of section

500ZE(1) This section applies if:

(a) a participation agreement breach non‑payment period applies to a person; and

(b) during the whole or a part of that period, the whole or a part of a participation payment breach rate reduction period (overlap period) applies to the person.

Overlap period

500ZE(2) Subject to subsection (4), the participation agreement breach non‑payment period and the participation agreement breach rate reduction period are to run concurrently during the overlap period.

Which restriction is to apply

500ZE(3) Only the non‑payment restriction relating to the participation agreement breach non‑payment period is to apply to the person during the overlap period.

Pre‑existing participation agreement breach rate reduction period

500ZE(4) If, at the time of the commencement of a participation agreement breach non‑payment period under this Act, the person is already subject to a participation agreement breach rate reduction period (pre‑existing reduction period), the pre‑existing reduction period is taken to end immediately before the commencement of the participation agreement breach non‑payment period under this Part.

Division 2—Parenting Payment Participation Agreements

501 General requirements relating to participation agreements

General

501(1) The requirements that apply to a person in respect of parenting payment participation agreements are as follows:

(a) the person must enter into a participation agreement when the person is required by the Secretary under section 501A to do so;

(b) while the agreement is in force the person must take reasonable steps to comply with its terms;

(c) at any time while the agreement is in force the person must be prepared to enter into another such agreement, instead of the existing agreement, if required to do so by the Secretary.

What are reasonable steps?

501(2) For the purposes of paragraph (1)(b), a person is to be regarded as taking reasonable steps to comply with the terms of a participation agreement if the Secretary is satisfied:

(a) that the person has attempted in good faith and to the best of his or her ability to comply with those terms; or

(b) that the terms:

(i) have never been appropriate; or

(ii) because of a change in the person’s circumstances since entry into the agreement, have become inappropriate;

for compliance by that person.

Appropriate terms

501(3) In determining whether the terms of an agreement have always been, or have become, inappropriate for compliance by a person, the Secretary is to have regard to the person’s capacity to comply with the terms and to the person’s needs.

Capacity to comply with agreement, and person’s needs

501(4) In having regard to a person’s capacity to comply with the terms of a participation agreement and the person’s needs, the Secretary is to take into account, but is not limited to, the following matters:

(a) the person’s education, experience, skills, age, disability, illness, mental and physical condition; and

(b) the state of the local labour market and the transport options available to the person in accessing that market; and

(d) the family and caring responsibilities of the person, (including those arising from any significant adverse effect on a PP child of a person that would result from the person’s compliance with the terms of the agreement); and

(e) current court proceedings in the Family Court or criminal courts or current child welfare concerns, such as drugs or school truanting; and

(f) the length of travel time required for compliance with the agreement; and

(g) the financial costs of compliance with the agreement, such as travel costs, and the capacity to pay for such compliance; and

(h) any other matters that the Secretary or the person considers relevant in the circumstances.

Secretary must contact person before determining failure to comply with terms

501(5) The Secretary must not determine that a person has failed to take reasonable steps to comply with the terms of a participation agreement unless the Secretary:

(a) is satisfied that the terms of the agreement were intended to assist the person over time in gaining employment or undertaking study or training; and

(b) has made reasonable attempts to contact the person in relation to the requirement to comply with the terms of the agreement (and has documented each attempt to contact); and

(c) if contact was able to be made, has had regard to the reasons, if any, provided by the person for not complying with the terms of the agreement; and

(d) has confirmed the adequacy of the support that the Secretary agreed to provide under the agreement.

501A Parenting payment participation agreements—requirement

Requirement to enter into agreement

501A(1) Subject to this section, if:

(a) a person is claiming or receiving parenting payment; and

(b) the PP child or, if more than one, the youngest PP child, of the person has turned 13 years; and

the Secretary may require the person to enter into a participation agreement.

Exempt persons

501A(2) For the purposes of subsection (1), a person is an exempt person if the person has:

(a) a PP child who is a profoundly disabled child within the meaning of section 197; or

(b) two or more PP children;

(i) who are disabled children; and

(ii) who, in the Secretary’s opinion, require a level of care at least equivalent to the level of care required by a profoundly disabled child; or

(c) a PP child who suffers from a physical, intellectual or psychiatric disability that is specified in a determination made under subsection 38D(3) to be a recognised disability for the purposes of section 953.

Exempt persons‑periodic exemptions

501A(2A) For the purposes of subsection (1), a person is an exempt person for a particular period determined by the Secretary under this subsection if:

(a) the person has one or more PP children:

(i) who suffer from a physical, intellectual or psychiatric disability or illness; and

(ii) whose care needs are such that the person could not be reasonably expected at that time to comply with the terms of a participation agreement; or

(b) a critical event occurs that was not within the person’s control (eg family or personal crisis, the Secretary is satisfied the person has separated from his or her partner on a permanent or indefinite basis in the past 26 weeks, person’s house burning down, evidence of domestic violence, serious illness of PP children or an accumulation of stressful personal circumstances which the Secretary is satisfied would, in combination, require full‑time effort to address) and, as a result, the person is temporarily unable to comply with the terms of a participation agreement.

501A(2B) At any one time the maximum period for which the Secretary may determine that a person is an exempt person under subsection (2A) is:

(a) if paragraph (2A)(a) applies to the person—12 months;

(b) if paragraph (2A)(b) applies to the person—26 weeks.

501A(2C) The Secretary may make more than one determination under subsection (2A) in respect of a person.

Requirement to enter into another agreement

501A(3) The Secretary may require a person who is a party to a participation agreement that is in force to enter into another such agreement instead of the existing one.

Reasons for revocation or revocation and replacement

501A(4) Without limiting the generality of the grounds on which the Secretary may take action under subsection (3), those grounds include:

(a) the Secretary’s satisfaction that the person has breached the requirements of the agreement that is in force; or

(b) the Secretary’s satisfaction that a term or terms of the agreement that is in force are inappropriate, having regard to the person’s circumstances and needs at the time it was entered into; or

(c) the Secretary’s satisfaction that the person’s circumstances or needs have so changed that the agreement that is in force should no longer continue in force.

Notice of requirement

501A(5) The Secretary is to give a person who is required to enter into a participation agreement notice in writing of:

(a) the requirement; and

(b) the places and times, being places and times which are reasonable in all the circumstances, at which the agreement is to be negotiated; and

501B Participation agreement—nature and terms

Form of agreement

501B(1) A participation agreement is a written agreement between the Secretary and another person, in a form approved by the Secretary, under which the person agrees to undertake, during each period of 26 weeks that the agreement is in force, approved activities anticipated to take 150 hours or such lesser number of hours as are agreed between them. Participation agreements will set out the support that the Secretary undertakes to provide to assist the person to meet his or her participation requirements in the negotiated agreement.

Approved activities

501B(2) For the purposes of a particular participation agreement, approved activities constitute such particular activities, comprising one or more of the following activities, as are approved by the Secretary:

(a) job search;

(b) a vocational or pre‑vocational training course;

(d) paid work;

(e) measures designed to eliminate or reduce any disadvantage the person has in relation to obtaining work;

(f) subject to subsection (7)—voluntary participation in an approved program of work for income support payment;

(g) participation in a labour market program;

(h) participation in the PSP;

(i) participation in a rehabilitation program as defined in section 23 of the Social Security Act 1991;

(j) a course of education;

(k) another activity that the Secretary regards as suitable for the person, including voluntary work, and that is agreed to between the person and the Secretary.

Secretary’s considerations concerning approval of terms

501B(3) In considering what terms of a participation agreement with a person to approve, the Secretary is to have regard to the person’s capacity to comply with the terms of the proposed agreement and to the person’s needs.

Capacity to comply with agreement, and person’s needs

501B(4) In having regard to a person’s capacity to comply with the terms of a participation agreement and to the person’s needs, the Secretary is to take into account, but is not limited to, the following matters:

(a) the person’s education, experience, skills, age, disability, illness, mental and physical condition; and

(b) the state of the local labour market and the transport options available to the person in accessing that market; and

(e) current court proceedings in the Family Court or criminal courts or current child welfare concerns such as drugs or school truanting; and

(f) the length of travel time required for compliance with the agreement; and

(g) the financial costs of compliance with the agreement, such as travel costs, and the capacity to pay for such compliance; and

(h) any other matters that the Secretary or the person considers relevant in the circumstances.

Variation, suspension, cancellation and review

501B(5) A participation agreement with a person:

(a) may be varied (in negotiation with the person) or suspended by the Secretary; and

(b) if another participation agreement is made with the person—may be cancelled by the Secretary; and

(d) may be cancelled by the Secretary after a review under paragraph (c).

Cooling‑off period

501B(5A) Within 14 days of the terms of the participation agreement being approved, those terms may be varied by the person with the approval of the Secretary.

Requirement to notify

501B(5B) The Secretary must advise the person of the effect of subsection (5A).

Avoidance of doubt

501B(5C) To avoid doubt, subsection (5A) does not prevent the person at any time from requesting a review of an agreement under paragraph (5)(c).

Circumstances preventing or affecting compliance

501B(6) The party to a participation agreement other than the Secretary must tell the Secretary of any circumstances preventing or affecting the party’s compliance with the agreement.

Situations in which participation in an approved program of work for income support payment cannot be required

501B(7) A participation agreement with a person must not provide for participation in an approved program of work for income support payment if:

(a) in the Secretary’s opinion:

(i) 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

(ii) performing the work in the conditions in which the work would be performed would constitute a risk to health or safety or would contravene a law of the Commonwealth, a State or Territory relating to occupational health and safety; or

(b) the program of work requires the person to move from a home in one place to a home in another place.

Effect of participation in an approved program of work for income support payment

501B(8) A person is not to be taken, merely by participating in an approved program of work for income support payment in accordance with the terms of a participation agreement under this section, to be:

(a) an employee within the meaning of section 9 of the Occupational Health and Safety (Commonwealth Employment) Act 1991; or

(b) an employee within the meaning of section 5 of the Safety, Rehabilitation and Compensation Act 1988; or

(d) an employee for the purposes of the Workplace Relations Act 1996.

501C Participation agreements—failure to negotiate

Failure to enter agreement

501C(1) If:

(a) a person has been given notice under subsection 501A(5) of a requirement to enter into a participation 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 the reasonable terms of the agreement proposed by the Secretary;

or for any other reason, that the person is unreasonably delaying entering into the agreement;

then:

(d) if the notice is given—the person is taken to have so failed.

Form of notice

501C(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

Division 4—Rate of parenting payment

Subdivision A—Rate of parenting payment

503 How to work out a person’s parenting payment rate

A person’s parenting payment rate is worked out using:

(a) if the person is not a member of a couple—the Pension PP (Single) Rate Calculator at the end of section 1068A (see Part 3.6A); or

(b) if the person is a member of a couple—the Benefit PP (Partnered) Rate Calculator at the end of section 1068B (see Part 3.6A).

503A Approved program of work supplement

If a person:

(a) is receiving a parenting payment; and

(b) is participating in an approved program of work for income support payment;

the rate of the person’s parenting payment is increased by an amount of $20.80, to be known as the approved program of work supplement, for each fortnight during which the person participates in the program.

503AA Approved program of work supplement not payable in certain circumstances

An approved program of work supplement is not payable to a person in respect of a fortnight if pensioner education supplement under Part 2.24A or under ABSTUDY is payable to the person in respect of a day in the fortnight.

Subdivision B—Rate reductions relating to participation agreement breaches

503B Participation agreement breach rate reduction period

503B(1) A participation agreement breach rate reduction period applies to a person if:

(a) the person fails to take reasonable steps to comply with the terms of the person’s participation agreement (latest breach); and

(b) the latest breach is only the first or second breach committed by the person within the 2 years immediately before the day after the latest breach.

503B(2) In this section, breach means a failure to take reasonable steps to comply with the terms of a participation agreement.

503C Length of participation agreement breach rate reduction period

Length of breach rate reduction period

503C(1) Subject to subsections (2) and (3), the length of a participation agreement breach rate reduction period is 26 weeks.

Pre‑existing breach rate reduction period

503C(2) If, at the time of the commencement of a participation agreement breach rate reduction period under this Part (the current breach period), the person is already subject to a participation agreement breach rate reduction period (pre‑existing rate reduction period), the pre‑existing rate reduction period is taken to end immediately before the commencement of the current breach period.

Effect on breach rate reduction period of complying with the terms of an agreement within 13 weeks

503C(3) If:

(a) a participation agreement breach rate reduction period applies to a person (or would apply to a person apart from this subsection); and

(b) not more than 13 weeks after the start of the period, the person takes reasonable steps to comply, or to resume compliance, with the terms of a participation agreement that is in force in respect of the person;

this Act has effect, for the purpose only of working out the rate of parenting payment payable to the person:

(d) if a prior breach penalty period had started not more than 13 weeks before the person took those reasonable steps—as if that prior breach penalty period had also never started.

Effect on breach rate reduction period of complying with the terms of agreement after 13 weeks

503C(4) If:

(a) a participation agreement breach rate reduction period applies to a person (or would apply to a person apart from this subsection); and

(b) more than 13 weeks after the start of the period, the person takes reasonable steps to comply, or to resume compliance, with the terms of a participation agreement that is in force in respect of the person;

the breach rate reduction period applicable to the person ceases with effect from the day on which the person took those reasonable steps.

503C(5) In this section:

breach penalty period means a participation agreement breach rate reduction period or a participation agreement breach non‑payment period.

503D Start of participation agreement breach rate reduction period

Notice of start of period

503D(1) If a participation agreement breach rate reduction period applies to a person under this Part, the Secretary must give to the person a written notice telling the person of the start of the period.

Notice to contain reasons

503D(1A) A notice under subsection (1) must contain reasons why the participation agreement breach rate reduction period applies to the person.

General rule

503D(2) Subject to subsection (3), the participation agreement breach rate reduction period starts on the 14th day after the day on which the notice is given to the person.

Parenting payment ceasing to be payable

503D(3) If, on or before the day on which the person’s participation agreement breach rate reduction period would (apart from this subsection) have started, parenting payment ceases to be payable to the person, the period starts on the day on which parenting payment ceases to be payable to the person.

503E Rate of parenting payment where participation agreement breach rate reduction period applies

Participation agreement breach reduced rate

503E(1) If a participation agreement breach rate reduction period applies to a person under this Part, the person’s rate of parenting payment for the reduction period is worked out as follows:

Method statement

Step 1. Work out the person’s maximum payment rate as follows:

(a) if the person is not a member of a couple, the person’s maximum payment rate will be the sum of the person’s maximum basic rate of parenting payment as determined under Module B of the Parenting Payment Rate Calculator in section 1068A and the person’s pension supplement as determined under Module BA of the Parenting Payment Rate Calculator in section 1068A;

(b) if the person is a member of a couple, the person’s maximum payment rate is the rate worked out using Module C of the Parenting Payment Rate Calculator in section 1068B.

Step 2. Work out the rate reduction amount as follows:

(a) if the participation agreement breach is the person’s first breach in the 2 year period:

(b) if the participation agreement breach is the person’s second breach in the 2 year period:

Step 3. Take the rate reduction amount away from the rate of parenting payment worked out in accordance with the Parenting Payment Rate Calculator in section 1068A or 1068B, as the case may be. The result is the participation agreement breach reduced rate.

Meaning of 2 year period

503E(2) In this section:

2 year period means the 2 years immediately before the day after the participation agreement breach.

Subdivision C—Accumulation of parenting payments by CDEP Scheme participants

504N CDEP Scheme participant may accumulate parenting payment

504N(1) A person who is a member of a couple, and is a CDEP Scheme participant in respect of the whole or a part of a quarter, may, by written notice given to the Secretary, choose to accumulate the amounts of any parenting payment that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

504N(2) If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

(a) unless paragraph (b) applies, the last day of the quarter; or

(b) if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

504N(3) In this section:

quarter means a CDEP Scheme quarter.

Note 1: For CDEP Scheme participant see section 1188B.

Note 2: For CDEP Scheme quarter see subsection 23(1).