Social Security Act 1991

729 Qualification for special benefit

(1) A person is qualified for a special benefit for a period if the Secretary determines, in accordance with subsection (2), that a special benefit should be granted to the person for the period.

Note: Special benefit is a discretionary benefit and is available only to a person who is not able to get any other income support payment (see paragraphs (2)(a) and (b) below).

(2) The Secretary may, in his or her discretion, determine that a special benefit should be granted to a person for a period if:

(a) no social security pension is payable to the person during the period; and

(b) no other social security benefit is payable to the person for the period; and

(bb) the person is not disqualified for a benefit PP (partnered) for the period solely because of the operation of section 500C (unemployment due to industrial action); and

(bc) the person is not disqualified from parenting payment for the period solely because of a failure to meet the requirement of paragraph 500(1)(c) or (1)(ca) (participation requirements); and

(bd) if the person is qualified for parenting payment but the payment is not payable because of the operation of any of the following provisions of the Administration Act:

(i) subsection 42AL(1) (payment suspension periods—persons other than declared program participants);

(ii) subsection 42AO(1) (unemployment preclusion periods—persons other than declared program participants);

(iii) subsection 42AP(5) (post‑cancellation non‑payment periods—persons other than declared program participants);

(iv) subsection 42P(1) (serious failures—declared program participants);

(v) subsection 42S(1) (unemployment non‑payment periods—declared program participants); and

(d) if the person is qualified for a jobseeker payment but the payment is not payable to the person for the period—that result is not produced because of the operation of one or more of the following:

(i) subsection 42AL(1) of the Administration Act (payment suspension periods—persons other than declared program participants);

(ii) subsection 42AO(1) of that Act (unemployment preclusion periods—persons other than declared program participants);

(iia) subsection 42AP(5) of that Act (post‑cancellation non‑payment periods—persons other than declared program participants);

(iib) subsection 42P(1) of that Act (serious failures—declared program participants);

(iic) subsection 42S(1) of that Act (unemployment non‑payment periods—declared program participants);

(iii) section 631 of this Act (person failing to comply with notification requirement);

(iv) section 633 of this Act (seasonal workers);

(v) section 634 of this Act (move to area of lower employment prospects); and

(da) the person is not disqualified for a youth allowance for the period because the person fails to satisfy the employment pathway plan requirements; and

(db) the person is not disqualified for an austudy payment for the period because the person fails to satisfy the activity test within the meaning of section 569; and

(dc) youth allowance is not payable to the person for the period and that result is not because of the operation of:

(i) section 550B (youth allowance participation failure); or

(ia) section 551 (repeated failure); or

(ii) section 553B (move to an area of lower employment prospects); or

(iii) subsection 42AL(1) of the Administration Act (payment suspension periods—persons other than declared program participants); or

(iv) subsection 42AO(1) of that Act (unemployment preclusion periods—persons other than declared program participants); or

(v) subsection 42AP(5) of that Act (post‑cancellation non‑payment periods—persons other than declared program participants); or

(vi) subsection 42P(1) of that Act (serious failures—declared program participants); or

(vii) subsection 42S(1) of that Act (unemployment non‑payment periods—declared program participants); or

(viii) section 81 of that Act; and

(dd) austudy payment is not payable to the person for the period and that result is not because of the operation of:

(i) section 576A (austudy participation failure); or

(ia) section 577 (repeated failure); or

(ii) section 81 of the Administration Act; and

(e) the Secretary is satisfied that the person is unable to earn a sufficient livelihood for the person and the person’s dependants (if any) because of age, physical or mental disability or domestic circumstances or for any other reason; and

(f) the person:

(i) is an Australian resident; or

(v) is the holder of a visa that is in a class of visas determined by the Minister for the purposes of this subparagraph; and

(g) if the person is:

(i) the holder of a visa included in a class of visas that is issued for temporary protection, humanitarian, or safe haven purposes and that is determined by the Minister to be a class of visas to which this subparagraph applies; and

(ii) a person to whom subsection (2A) applies;

the person meets the additional criteria set out in subsection (2B); and

(h) an assurance of support does not apply to the person at any time during the period (see subsection (2C)).

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

(2A) For the purposes of paragraph (2)(g), the holder of a visa included in a class of visas that is issued for temporary protection, humanitarian, or safe haven purposes and that is determined by the Minister to be a class of visas to which subparagraph (2)(g)(i) applies is a person to whom that first‑mentioned paragraph applies only if:

(a) the person would not qualify for disability support pension under section 94 or 95 if the person were an Australian resident; and

(b) the person has attained the minimum age for youth allowance as determined in accordance with subsection 543A(1) but has not attained pension age; and

(i) claims, or has claimed, special benefit on or after 1 January 2003 that is not continuous with any previous grant of special benefit; or

(ii) if the person had not attained the minimum age for youth allowance as defined by subsection 543A(1) before 1 January 2003—is receiving special benefit granted before, or continuous with special benefit granted before, that date.

(2B) A person referred to in paragraph (2)(g) is qualified for special benefit in respect of a period only if, in addition to meeting any relevant requirement in paragraphs (2)(a) to (f), throughout the period:

(a) the following apply:

(i) the person satisfies the employment pathway plan requirements;

(ii) the person satisfies the Employment Secretary that the person is willing to actively seek and to accept and undertake paid work in Australia, except particular paid work that is unsuitable to be done by the person; or

(b) the following apply:

(i) the person is, under Subdivision C of Division 2A of Part 3 of the Administration Act, not required to satisfy the employment pathway plan requirements;

(ii) the person satisfies the Employment Secretary that the person would otherwise be willing to actively seek and to accept and undertake paid work in Australia, except particular paid work that is unsuitable to be done by the person.

Note 1: For satisfies the employment pathway plan requirements, see subsection 23(1).

Note 2: See Division 2B of Part 3 of the Administration Act for the circumstances in which paid work is unsuitable to be done by a person.

(2C) For the purposes of paragraph (2)(h), an assurance of support applies to a person at a particular time if:

(a) an assurance of support is in force in respect of the person (the assuree) at that time; and

(b) the person who gave the assurance was willing and able to provide an adequate level of support to the assuree; and

Note: For assurance of support see subsection 23(1).

(2D) For the avoidance of doubt, if, at any time during the period for which special benefit is granted to a person, the person’s circumstances change such that, if the person were to be making a claim for special benefit on the basis of the changed circumstances, the person would not be qualified for special benefit, special benefit ceases to be payable.

(3) The Secretary is not to determine that a special benefit should be granted to a person for a period if the Secretary is satisfied that the benefit is not payable to the person for that period.

(4) For the purposes of paragraph (2)(d), a jobseeker payment is to be taken to be not payable to a person for a period because of the operation of a provision if:

(a) the person has claimed the payment for the period and the payment is not payable to the person because of the operation of the provision; or

(b) were the person to claim the payment for the period the payment would not be payable to the person because of the operation of the provision.

(4A) For the purposes of paragraph (2)(dc) a youth allowance is taken to be not payable to a person for a period because of the operation of a provision if:

(a) the person has claimed the allowance for the period and the allowance is not payable to the person because of the operation of the provision; or

(b) were the person to claim the allowance for the period the allowance would not be payable to the person because of the operation of the provision.

(4B) For the purposes of paragraph (2)(dd), an austudy payment is taken not to be payable to a person for a period because of the operation of a provision if:

(a) the person has claimed the payment for the period and the payment is not payable to the person because of the operation of the provision; or

(b) were the person to claim the payment for the period, the payment would not be payable to the person because of the operation of the provision.

(6) If:

(a) a person was receiving a social security pension, a service pension, income support supplement or a veteran payment; and

(b) the person claims a special benefit within 14 days of the day on which the last instalment of the person’s social security pension, service pension, income support supplement or veteran payment was paid; and

(c) the person becomes qualified for a special benefit at some time during the 14 day period but after the first day of that period;

the person is taken to be qualified for a special benefit for the whole of the 14 day period.

Note: Subsection (6) operates when a person transfers from a social security pension, a service pension, income support supplement or a veteran payment to a special benefit and the person is not qualified for a special benefit immediately after the day on which the person’s last instalment of social security pension, service pension, income support supplement or veteran payment is paid. The subsection deems the person to be so qualified. As a result, the person may be paid a special benefit for the period beginning on the day after the day on which the person’s last instalment of social security pension, service pension, income support supplement or veteran payment was paid. The subsection aims to ensure that there is minimal disruption to a person’s payments when a person transfers from a social security pension, a service pension, income support supplement or a veteran payment to a special benefit.

729A Time limit on qualification for certain recipients of special benefit

(1) This section applies to a person who is receiving special benefit if:

(a) the person’s maximum benefit period is 13 weeks or less; and

(b) the Secretary determines that this section should apply to the person.

(2) The maximum benefit period for a person is the period specified in the determination granting the person’s claim for special benefit as the maximum period for which the special benefit is payable to the person.

(3) If:

(a) the section applies to a person; and

(b) the Secretary is satisfied that the person’s qualification for special benefit will continue after the end of the person’s maximum benefit period; and

the Secretary may determine that special benefit should be granted to the person for a period of not more than 13 weeks.

(4) Subject to section 729B, if:

(a) the Secretary has determined that special benefit should be granted to the person for a period of not more than 13 weeks under subsection (3) or this subsection; and

(b) the Secretary is satisfied that the person’s qualification for special benefit will continue after the end of that period; and

the Secretary may determine that special benefit should be granted to the person for a further period of not more than 13 weeks.

729AA Effect of industrial action on qualification conditions of certain claimants for special benefit

(1) A person who:

(a) has claimed special benefit; and

(b) is:

(ii) a person to whom subsection 729(2A) applies;

is not, for the purposes of paragraph 729(2)(e), taken to be unable to earn a sufficient livelihood for the person and the person’s dependants (if any) if:

(c) that inability arises because the person has ceased to be employed, or to be employed at a particular level of income; and

(d) that cessation is attributable to the person’s being, or having been, engaged in industrial action, or in a series of industrial actions.

(2) Subsection (1) does not apply in relation to a person if the Secretary is satisfied that:

(a) the person’s unemployment or the effect on the person’s level of income was due to other people being, or having been, engaged in industrial action or in a series of industrial actions; and

(b) the people or some of the people were members of a trade union that was involved in the industrial action; and

(3) Subject to subsection (4), subsections (1) and (2) do not prevent a person from being qualified for special benefit in respect of a period that occurs after the relevant industrial action or series of industrial actions has stopped.

(4) If the relevant industrial action or series of industrial actions is in breach of an order, direction or injunction issued by:

(a) a prescribed State industrial authority within the meaning of the Fair Work Act 2009; or

(b) the Fair Work Commission or the Australian Industrial Relations Commission; or

(d) the Federal Circuit and Family Court of Australia (Division 2);

a person is not qualified for special benefit in respect of a period unless that period occurs 6 weeks or more after the relevant industrial action or series of industrial actions has stopped.

729B Certain recipients of special benefit cease to be qualified for special benefit after 52 weeks

(1) A person to whom subsection 729A(4) applies ceases to be qualified for special benefit if the person has received special benefit in respect of the immediately preceding period of 52 weeks.

(2) The Secretary may make a written determination that subsection (1) does not apply to a person if the Secretary is satisfied:

(a) that the person’s qualification for special benefit will end during the next 13 weeks; or

(b) that the person’s qualification for special benefit will continue after the end of the period of 65 weeks commencing on the person’s start day.

729C Consequence of subsection 729B(2) determination

(1) If the Secretary:

(a) is satisfied of the matter mentioned in paragraph 729B(2)(a); and

(b) makes a determination under subsection 729B(2) in relation to a person;

then the person ceases to be qualified for special benefit if:

(d) the Secretary is satisfied that this subsection should apply to the person.

(2) If the Secretary:

(a) is satisfied of the matter mentioned in paragraph 729B(2)(b); and

(b) makes a determination under subsection 729B(2) in relation to a person;

the Secretary may determine that special benefit should be granted to the person for a period.

730 Determination of period

The period determined by the Secretary under subsection 729(2) is not to begin before the person’s start day.

732 Special benefit not payable if benefit rate nil

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

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because:

(a) an election by the person under subsection 915A(1) (about quarterly energy supplement) or 1061VA(1) (about quarterly pension supplement) is in force; or

(b) the person has been paid an advance pharmaceutical allowance under the social security law.

733 Assets test—benefit not payable if assets value limit exceeded

(1) A special benefit is not payable to a person if:

(a) the person is not excluded from the special benefit assets test; and

(b) the value of the person’s assets exceeds the person’s assets value limit.

(2) A person is excluded from the special benefit assets test if the person:

(a) has not turned 18; and

(b) is not independent within the meaning of section 1067A.

(3) A person’s assets value limit is worked out using the following table: work out which family situation applies to the person; the assets value limit is the corresponding amount in the assets value limit column.

Assets value limit table
Column 1	Column 2	Column 3 Assets value limit
Item	Person’s family situation	Column 3A Either person or partner homeowner	Column 3B Neither person nor partner homeowner
1.	Not member of a couple	$250,000	$450,000
2.	Partnered (partner getting neither pension nor benefit)	$375,000	$575,000
3.	Partnered (partner getting pension or benefit)	$187,500	$287,500

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see section 4.

Note 2: For homeowner see section 11.

Note 3: If item 2 applies to a person, the value of all the assets of the person’s partner is to be taken as being included in the value of the person’s assets (see subsection 734(1)—this is why the assets value limit is so high. If, on the other hand, item 3 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 734(2)).

Note 4: If a special benefit 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 items 1 and 3 in column 3A and item 3 in column 3B are indexed annually in line with CPI increases (see sections 1191 to 1194).

Note 6: The assets value limit of item 1 in column 3B is adjusted annually (see subsection 1204(1)).

Note 7: The item 2 assets value limits are adjusted annually so that they are twice the corresponding item 3 limits (see subsections 1204(2) and (3)).

734 Value of assets of members of couples

(1) If:

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

(b) the person’s partner:

(i) is not in receipt of a social security pension, a service pension, income support supplement or a veteran payment; and

(ii) is not in receipt of a social security benefit;

the value of the person’s assets, or of assets of a particular kind of the person, includes the value of the partner’s assets or of assets of that kind of the partner.

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

(2) If:

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

(b) the person’s partner is in receipt of:

(i) a social security pension, a service pension, income support supplement or a veteran payment; or

(ii) a social security benefit;

the following provisions have effect:

(c) 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

(d) the value of the person’s assets of a particular kind is taken to be 50% of the sum of the value of the assets of that kind of the person and the value of assets of that kind of the person’s partner.

735 Multiple entitlement exclusion

(1) Special benefit is not payable to a person if the person is already receiving a service pension, income support supplement or a veteran payment.

(2) If:

(a) a person is receiving special benefit; and

(b) a social security pension, another social security benefit, a service pension, income support supplement or a veteran payment becomes payable to the person;

the special benefit 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).

(3) Special benefit 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;

unless:

(d) before 1 November 1986 the woman was also receiving a social security benefit.

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

(4) Special benefit 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).

(5) Special benefit is not payable to a person if:

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

(b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) 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).

736 Secretary may require certain persons to attend courses or undertake work

(1) If:

(a) a person, other than a person who is a nominated visa holder, is receiving, or has lodged a claim for, special benefit; and

(b) the Secretary is of the opinion that the person should:

(i) undertake a course of vocational training; or

(ii) undertake a course:

(A) which the person could reasonably undertake; and

(B) to which the person has been referred by the Secretary; or

(iii) do any work suitable to be done by the person; and

(i) undertake that course; or

(ii) do that work; and

(d) the person does not comply with the Secretary’s requirements;

special benefit is not payable to the person for a period determined by the Secretary.

(2) The Secretary may determine that special benefit is payable for a period for which he or she had previously determined that it was not payable under subsection (1) if, within a reasonable period, the person complies with the Secretary’s requirements.

737 Full‑time students

(1) Subject to subsection (3), a special benefit is not payable to a person:

(a) who has turned 18; or

(b) who satisfies both of the following:

(i) the person has not turned 16; and

(ii) the person is not a SPB homeless person;

if the person is enrolled in a full‑time course of education or of vocational training.

Note: For SPB homeless person see section 739.

Period for which benefit not payable

(2) The period for which a special benefit is not payable under subsection (1) is the period that:

(a) starts when the person starts the course; and

(b) finishes when the person:

(i) completes the course; or

(ii) abandons the course; or

(iii) gives notice to the provider of the course that the person:

(A) wishes to withdraw from the course; or

(B) wishes to withdraw from such number of subjects that the person’s course will no longer be a full‑time course; and

Subsection (1) does not apply in certain cases

(3) Subsection (1) does not prevent a special benefit from being payable for any period during which:

(a) a person is enrolled in a course of study that the Secretary has required the person to undertake under section 736; or

(b) the person is engaged in a course undertaken under an employment pathway plan; or

738 Payments under certain education schemes

(1) Subject to subsections (2) and (3), a special benefit is not payable to a person:

(a) who has turned 18; or

(b) who satisfies both of the following:

(i) the person has not turned 16;

(ii) the person is not a SPB homeless person;

if a payment has been made or may be made in respect of the person for the same period under:

(c) a prescribed educational scheme other than the ABSTUDY scheme to the extent that it applies to part‑time students; or

(d) the scheme to provide an allowance known as the Adult Migrant Education Program Living Allowance; or

(e) the scheme to provide an allowance known as the Maintenance Allowance for Refugees; or

(f) the scheme to provide an allowance known as the English as a Second Language Allowance to the extent that the scheme applies to full‑time students.

Note 1: For prescribed educational scheme see section 5.

Note 2: For SPB homeless person see section 739.

(2) If:

(a) a person may start a course of education on a full‑time basis; and

(b) a payment under a scheme referred to in subsection (1) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (1), a special benefit is payable to the person for a period before the person starts the course.

(3) If:

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

(b) an application is made for a payment in respect of the person under:

(ii) the ABSTUDY Schooling scheme; or

(iii) the ABSTUDY Tertiary scheme; and

the Secretary may decide that, in spite of subsection (1), special benefit is payable to the person for the period of 3 weeks commencing on the day on which the course starts.

739 SPB homeless person

For the purposes of subparagraphs 737(1)(b)(ii) and 738(1)(b)(ii), a person is an SPB homeless person if:

(a) the person is not a member of a couple; and

(b) the person does not have a dependent child; and

739A Newly arrived resident’s waiting period

(1) Subject to this section, a person who, on or after the commencement of this subsection:

(a) enters Australia; or

(b) becomes the holder of a permanent visa; or

(e) becomes the holder of a visa that is in a class of visas determined by the Minister, by legislative instrument, for the purposes of this paragraph;

is subject to a newly arrived resident’s waiting period.

(2) Subject to this section, if, immediately before the commencement of this subsection, a person was the holder of a visa that is in a class of visas determined by the Minister for the purposes of this subsection, the person is subject to a newly arrived resident’s waiting period.

(3) If:

(a) a person is subject to a newly arrived resident’s waiting period; and

(b) before, on or after the commencement of this subsection, the person applies for a visa that is in a class of visas determined by the Minister, by legislative instrument, for the purposes of this paragraph;

the waiting period:

(d) ends when the person has been in Australia for a period of, or periods totalling, 208 weeks after that day.

(4) If:

(a) a person is subject to a newly arrived resident’s waiting period; and

(b) before, on or after the commencement of this subsection, the person was the holder of a visa that is in a class of visas determined by the Minister, by legislative instrument, for the purposes of this paragraph;

the period:

(d) ends when the person has been in Australia for a period of, or periods totalling, 208 weeks after that day.

(5) If:

(a) a person is subject to a newly arrived resident’s waiting period; and

(b) neither subsection (3) nor (4) apply to the person;

the waiting period starts on the day on which the person:

(d) becomes the holder of a permanent visa;

whichever occurs last, and ends on the day after the person has been in Australia for a period of, or periods totalling, 208 weeks after that day.

(6) Neither subsection (1) nor (2) applies to a person if the person holds, or was the former holder of, a visa in a class of visas determined by the Minister, by legislative instrument, for the purposes of this subsection.

(7) Neither subsection (1) nor (2) apply to a person if the person, in the Secretary’s opinion, has suffered a substantial change in circumstances beyond the person’s control after the person first entered Australia.

Note: For permanent visa see subsection 7(1).

(8) Neither subsection (1) nor (2) applies to a person if:

(a) the person is a refugee, or a former refugee, at the time the person made the claim for a special benefit; or

(b) the following apply:

(i) before the person made the claim for a special benefit, the person was a family member of another person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the time the person made the claim for a special benefit or, if that other person has died, the person was a family member of that other person immediately before that other person died; or

(9) For the purposes of subsection (8):

(a) family member has the meaning given by subsection 7(6D); and

(b) former refugee has the meaning given by subsection 7(1); and

739B Secretary to act in accordance with guidelines

The Secretary must exercise the powers under subsection 739A(7), in accordance with guidelines from time to time in force under section 739C.

739C Guidelines for exercise of Secretary’s powers under subsection 739A(7)

The Minister, by legislative instrument:

(a) is to set guidelines for the exercise of the Secretary’s powers under subsection 739A(7); and

(b) may revoke or vary those guidelines.

Subdivision D—Situations where special benefit not payable to persons who are nominated visa holders (administrative breaches)

745H Situations where special benefit not payable for failure to comply with certain requirements

Special benefit is not payable to a person who is a nominated visa holder if the person refuses or fails, without reasonable excuse, to comply with a requirement made of the person under section 67, 68 or 192 of the Administration Act.

Subdivision F—Other situations where special benefit not payable to persons who are nominated visa holders

745M Seasonal workers

(1) This section applies if, at any time during the 6 months immediately before the day on which a person who is a nominated visa holder lodges a claim for special benefit, the person or, if the person is a member of a couple, the person or the person’s partner, has been engaged in seasonal work within the meaning of subsection 16A(1).

(2) Special benefit is not payable to the person:

(a) if the person is subject to a seasonal work preclusion period within the meaning of subsection 16A(1) (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.

(3) If the Secretary is satisfied that a person is in severe financial hardship within the meaning of subsection 19C(2) or (3), whichever is appropriate, because the person has incurred unavoidable or reasonable expenditure within the meaning of subsection 19C(4) 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.

745N Move to area of lower employment prospects

(1) Subject to subsection (3), if, in the opinion of the Secretary, a person who is a nominated visa holder has reduced his or her employment prospects by moving to a new place of residence without sufficient reason, special benefit is not payable to the person for 26 weeks.

(2) Subsection (1) extends to a person who makes a claim for special benefit on or after the day on which the person moved to the new place of residence and before the end of the period referred to in that subsection.

(3) If a person to whom special benefit is not payable under subsection (1) for a period of 26 weeks (including that subsection as it applies by virtue of subsection (2)) does either of the following during that period:

(a) moves back to the place of residence (the original place of residence) the movement from which resulted in special benefit not being payable to him or her;

(b) moves to another place of residence a movement to which from the original place of residence would not have resulted in special benefit not being payable to him or her;

the period of 26 weeks ends at the time of the movement back to the original place of residence or the movement to the other place of residence, as the case may be.

(4) For the purposes of subsection (1), a person has a sufficient reason for moving to a new place of residence if and only if the person:

(a) moves to live with a family member who has already established his or her residence in that place of residence; or

(b) moves to live near a family member who has already established residence in the same area; or

(c) satisfies the Secretary that the move is necessary for the purposes of treating or alleviating a physical disease or illness suffered by the person or by a family member; or

(d) satisfies the Secretary that the person has moved from his or her original place of residence because of an extreme circumstance which made it reasonable for the person to move to the new place of residence (for example, the person had been subjected to domestic or family violence in the original place of residence).

(5) The Secretary may determine in writing the day on which the period of non‑payment imposed by subsection (1) commences and that day may be before the day of the determination.

Division 4—Rate of special benefit

746 Rate of special benefit

(1) The rate of a person’s special benefit is the fortnightly rate determined by the Secretary in his or her discretion.

(2) The rate of a person’s special benefit is not to exceed the rate at which youth allowance, austudy payment or jobseeker payment would be payable to the person if:

(a) the person were qualified for youth allowance, austudy payment or jobseeker payment; and

(b) youth allowance, austudy payment or jobseeker payment were payable to the person.

(3) In working out, for the purposes of subsection (2), the rate at which youth allowance would be payable to a person, disregard any amount by which the rate would be increased because of point 1067G‑B3A or 1067G‑D1 of the Youth Allowance Rate Calculator.

(4) In working out, for the purposes of subsection (2), the rate at which jobseeker payment would be payable to a person, disregard any amount by which the rate would be increased because of point 1068‑B5 of Benefit Rate Calculator B.

747 Approved program of work supplement for persons who are nominated visa holders

If a person who is a nominated visa holder:

(a) is receiving special benefit; and

(b) is participating in an approved program of work for income support payment;

the rate of the person’s special benefit 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.

759 Effect of industrial action on rate of special benefit payable to persons who are nominated visa holders

(1) If:

(a) a person who is a nominated visa holder is receiving special benefit; and

(b) while the person is receiving that benefit the person becomes engaged in industrial action, or in a series of industrial actions, that leads to the person’s unemployment or to a decrease in the person’s level of income;

the rate of special benefit payable to the person is to be determined as if the person had continued, for the period of that industrial action, to be employed and to receive income at the level at which it would have been received if the person had not engaged in that action.

(2) Subsection (1) does not apply in relation to a person if the Secretary is satisfied:

(a) that the person’s unemployment or the effect on the person’s level of income was due to other people being, or having been, engaged in industrial action or in a series of industrial actions; and

(b) the people or some of the people were members of a trade union that was involved in the industrial action; and

(3) Subject to subsection (4), subsections (1) and (2) do not affect the rate of special benefit payable to a person in respect of a period that occurs after the relevant industrial action or series of industrial actions has stopped.

(4) If the relevant industrial action or series of industrial actions is in breach of an order, direction or injunction issued by:

(a) a prescribed State industrial authority within the meaning of the Fair Work Act 2009; or

(b) the Fair Work Commission or the Australian Industrial Relations Commission; or

(d) the Federal Circuit and Family Court of Australia (Division 2);

the rate of special benefit payable to a person is to continue to be determined in accordance with subsection (1) but subject to subsection (2) until the end of a period of 6 weeks after the relevant industrial action or series of industrial actions has stopped.

Division 9—Bereavement payments

Subdivision AA—Death of partner

768A Qualification for payments under this Subdivision

(1) If:

(a) a person is receiving a special benefit; and

(b) the person is a long‑term social security recipient; and

(d) the person’s partner dies; and

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

(i) was receiving a social security pension; or

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

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

(f) on the person’s payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not qualified for payments under this Subdivision is less than the sum of:

(i) the amount that would otherwise be payable to the person under section 768D (person’s continued rate) on that payday; and

(ii) the amount (if any) that would otherwise be payable to the person, under section 768B (continued payment of partner’s pension or benefit) on the partner’s payday immediately before the first available bereavement adjustment payday;

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

Note 1: Section 768B 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 768C 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: For long‑term social security recipient see subsection 23(1).

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

(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

(4) If a person is qualified for payments under this Subdivision in relation to the partner’s death, the rate at which special benefit is payable to the person during the bereavement period is, unless the person has made an election under subsection (2), governed by section 768D.

768B Continued payment of partner’s pension or benefit

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, an amount equal to the amount that would have been payable to the partner on that payday if the partner had not died.

768C 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. Add up:

(a) the amount that, if the person’s partner had not died, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday; and

(b) the amount (if any) that, if the partner had not died, would have been payable to the partner on the partner’s payday immediately before the first available bereavement adjustment payday;

the result is called the combined rate.

Step 2. Work out the amount that, but for section 768D, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday: the result is called the person’s individual rate.

Step 3. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 4. Work out the number of the partner’s paydays in the bereavement lump sum period.

Step 5. Multiply the partner’s instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable to the person under this section.

768D Adjustment of a person’s special benefit rate

If:

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

(b) the person does not elect under subsection 768A(2) not to receive payments under this Subdivision;

the rate of the person’s special benefit during the bereavement period is worked out as follows:

(c) during the bereavement rate continuation period, the rate of special benefit payable to the person is the rate at which the allowance would have been payable to the person if the person’s partner had not died;

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

768E 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. Add up:

(a) the amount that, if neither the person nor the person’s partner had died, would have been payable to the person on the person’s payday immediately after the day on which the person dies; and

(b) the amount (if any) that, if neither the person nor the person’s partner had died, would have been payable to the person’s partner on the partner’s payday immediately after the day on which the person died;

the result is called the combined rate.

Step 2. Work out the amount that, but for section 768D, would have been payable to the person on the person’s payday immediately after the day on which the person died if the person had not died: the result is called the person’s individual rate.

Step 3. Take the person’s individual rate away from the combined pensioner couple rate: the result is called the partner’s instalment component.

Step 4. Work out the number of paydays of the partner in the period that commences on the day on which the person dies and ends on the day on which the bereavement period ends.

Step 5. Multiply the partner’s instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable under this section.

768F Matters affecting payments under this Subdivision

(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:

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

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

(2) If:

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

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

(c) the bank pays to the person, out of the 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 person’s partner or anyone else in respect of the payment of that money to the person.

Part 2.16—Special needs pensions

Division 1A—Time limit on grant of special needs wife pension

771P Special needs wife pension not to be granted after 30 June 1995

(1) In spite of any other provision of this Part or any provision of the Administration Act, other than section 85, a woman is not to be granted a special needs wife pension unless:

(a) her claim for the pension is lodged on or before 30 June 1995; and

(b) she qualifies for the pension on or before 30 June 1995.

(2) For the purposes of paragraph (1)(a), if section 15 of the Administration Act applies, the woman is taken to have lodged her claim on the day on which she makes her initial claim.

(3) In subsection (2):

initial claim has the same meaning as in section 15 of the Administration Act.

Division 1B—Time limit on grant of other special needs pensions

771PA Special needs pensions not to be granted after 20 September 2000

In spite of any other provision of this Part, a person is not to be granted a special needs age pension or special needs disability pension unless:

(a) the person’s claim for the pension is lodged, or is taken to have been lodged, on or before 20 September 2000; and

(b) the person qualifies for the pension on or before 20 September 2000.

Division 1—Qualifications for and payability of special needs pensions

772 Qualification for special needs age pension

A person is qualified for a special needs age pension if:

(a) the person has not resided in Australia at any time after 7 May 1973; and

(b) the person has turned:

(i) if the person is a woman—60; or

(ii) if the person is a man—65; and

(i) if the person is a woman—55; or

(ii) if the person is a man—60; and

(d) the person had resided in Australia for a period that was, or for periods that in the aggregate were, not less than 30 years; and

(e) the person would:

(i) if the person had lodged a claim immediately before the person ceased to reside in Australia—have been qualified under section 25 of the 1947 Act to receive an age pension; or

(ii) if the person had not ceased to reside in Australia, were physically present in Australia and lodged a claim for an age pension—be qualified under section 25 of the 1947 Act to receive an age pension; and

(f) the person is, in the opinion of the Secretary, in special need of financial assistance.

773 Qualification for special needs disability support pension

A person is qualified for a special needs disability support pension if:

(a) the person has not resided in Australia at any time after 7 May 1973; and

(b) the person is severely disabled; and

(d) at the time when the person first satisfied paragraph (b), the person was in Australia or temporarily absent from Australia; and

(e) the person is, in the opinion of the Secretary, in special need of financial assistance.

Note: A person who is receiving a special needs disability support pension may be automatically transferred to the special needs age pension if the person becomes qualified for the special needs age pension (see subsection 789(3)).

774 Qualification for special needs wife pension

A person is qualified for a special needs wife pension if the person:

(a) is a woman who is a member of a couple; and

(b) has a partner who is receiving a special needs age pension or a special needs disability support pension.

Note 1: For member of a couple see subsections 4(2), (3) and (6).

Note 2: A person who is receiving a special needs wife pension may be automatically transferred to the special needs age pension if the person becomes qualified for the special needs age pension (see subsection 789(3)).

779 Special needs pension not payable if pension rate nil

A special needs pension is not payable to a person if the person’s special needs pension rate would be nil.

783 Second special needs pension generally not payable after cancellation of initial pension

If:

(a) a special needs pension is payable to a person; and

(b) the special needs pension is cancelled;

another special needs pension is not payable to the person unless the person is qualified to receive another special needs pension at the time the initial pension is cancelled.

787 Multiple entitlement exclusion

(1) A special needs pension is not payable to a person if the person is already receiving a service pension or a veteran payment.

(2) If:

(a) a person is receiving a special needs pension; and

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

the special needs pension 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).

(3) A special needs 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).

(4) A special needs pension 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).

(5) A special needs pension is not payable to a person if:

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

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

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

Division 5—Rate of special needs pension

796 How to work out a person’s special needs pension rate

(1) Subject to subsection (2), the rate of a person’s special needs pension is:

(a) if the pension is a special needs age pension—the rate at which an age pension would be payable to the person if the person were qualified for an age pension; or

(b) if the pension is a special needs disability support pension—the rate at which a disability support pension would be payable to the person if the person were qualified for a disability support pension; or

(c) if the pension is a special needs wife pension—the rate at which a wife pension would be payable to the person if the person were qualified for a wife pension.

(2) If:

(a) the person was absent from Australia on 1 July 1986; and

(b) the person commences after 1 July 1986 to receive a special needs pension; and

the rate of the person’s special needs pension is, subject to subsections (3) and (4), the person’s special needs proportional rate worked out using the Special Needs Proportional Rate Calculator at the end of this section.

(3) Subsection (2) does not apply to a person’s special needs disability support pension if the person became qualified for the pension because the person became permanently incapacitated for work or permanently blind while the person was an Australian resident.

(4) Subsection (2) does not apply to a person’s special needs sole parent pension if:

(a) the person became qualified for the pension because of the death of the person’s former partner; and

(b) at the time when the former partner died the former partner was an Australian resident; and

(c) the person would, apart from subsections 249(2) and 362(2) of this Act, and section 46 of the 1947 Act as in force at any time before 1 March 1989, have become so qualified for that pension.

Special Needs Proportional Rate Calculator

Module B—Australian working life residence

Overall rate calculation process

796‑A1 This is how to work out a person’s special needs proportional rate:

Method statement

Step 1. Work out the period of the person’s Australian working life residence using Module B: the result is called the residence period.

Step 2. Use the person’s residence period to work out the person’s residence factor using Module C below.

Step 3. Work out the rate that would be the person’s pension or allowance rate if this Rate Calculator did not apply to the person: the result is called the person’s notional domestic rate.

Step 4. Multiply the person’s notional domestic rate by the person’s residence factor: the result is the person’s special needs proportional rate.

Working life

796‑B1 For the purposes of this Module, a person’s working life is the period commencing when the person turns 16 and ending:

(a) if the person is a woman—when she turns 60; or

(b) if the person is a man—when he turns 65.

Australian working life residence (general)

796‑B2 Subject to points 796‑B3 to 796‑B9, a person’s period of Australian working life residence as at a particular time is the number of months in the period, or the aggregate of the periods, during the person’s working life during which the person has, up to that time, been an Australian resident.

Calculation of number of months

796‑B3 If a person’s period of Australian working life residence would, apart from this subsection, be a number of whole months, the period is to be increased by one month.

796‑B4 If a person’s period of Australian working life residence would, apart from this subsection, be a number of whole months and a day or days, the period is to be increased so that it is equal to the number of months plus one month.

Australian working life residence (special needs age or disability support pensioner couples)

796‑B5 If:

(a) a person is receiving a special needs age pension or a special needs disability support pension; and

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

(c) the person’s partner is receiving an age or disability support pension or a special needs age or disability support pension; and

(d) the partner’s period of Australian working life residence is longer than the period that would be the person’s period of Australian working life residence under point 796‑B2;

the person’s period of Australian working life residence is to be equal to the partner’s period of Australian working life residence.

Australian working life residence (member of former special needs age or disability support pensioner couple)

796‑B6 If:

(a) a person is receiving a special needs age pension or a special needs disability support pension; and

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

(d) immediately before the person ceases to be a member of a couple:

(i) the person was receiving an age or disability support pension or a special needs age or disability support pension; and

(ii) the partner was receiving an age or disability support pension or a special needs age or disability support pension; and

(e) the partner’s period of Australian working life residence (immediately before the person ceases to be a member of a couple) is longer than the period that would be the person’s period of Australian working life residence under point 796‑B2;

the person’s period of Australian working life residence is to be equal to the partner’s period of Australian working life residence (immediately before the person ceases to be a member of a couple).

Australian working life residence (special needs wife pensioner)

796‑B7 If a person is receiving a special needs wife pension, the person’s period of Australian working life residence is equal to the period of Australian working life residence of the person’s partner.

Australian working life residence—second special needs pension

796‑B9 If:

(a) a special needs pension is payable to a person (in this point called the initial pension); and

(b) the special needs pension is cancelled or ceases to be payable automatically; and

(d) the person’s period of Australian working life residence in respect of the second pension is shorter than the period that was the person’s period of Australian working life residence for the purposes of calculating the person’s initial special needs pension;

the person’s period of Australian working life residence for the second pension is to be equal to the period of Australian working life residence used in calculating the person’s initial pension.

Module C—Residence factor

Residence factor (period of Australian working life residence 25 years or more)

796‑C1 If a person’s period of Australian working life residence is 300 months (25 years) or more, the person’s residence factor is 1.

Note: If a person’s residence factor is 1, the person’s overseas pension will be payable overseas at the full domestic rate (less any rent assistance and any and remote area allowance).

Residence factor (period of Australian working life residence under 25 years)

796‑C2 If a person’s period of Australian working life residence is less than 300 months (25 years), the person’s residence factor is:

$Start formula start fraction person's Australian working life residence over 300 end fraction end formula$

Division 10—Bereavement payments

Subdivision A—Death of partner

822 Qualification for payments under this Subdivision

(1) If:

(a) a person is receiving a special needs age, disability support or wife pension; 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, income support supplement or a veteran payment; or

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

(e) on the person’s payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not qualified for payments under this Subdivision is less than the sum of:

(i) the amount that would otherwise be payable to the person under section 825 (person’s continued rate) on that payday; and

(ii) the amount that would otherwise be payable to the person under section 823 (continued payment of partner’s pension or benefit) on the partner’s payday immediately before the first available bereavement adjustment payday;

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

Note 1: Section 823 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 824 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.

(1A) If:

(a) a person is receiving a special needs pension; and

(b) immediately before starting to receive the special needs pension 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.

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

(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

(4) If a person is qualified for payments under this Subdivision in relation to the partner’s death, the rate at which special needs pension is payable to the person during the bereavement period is, unless the person has made an election under subsection (2), governed by section 825.

(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

(iia) was receiving a youth training allowance; or

(iii) was receiving a service pension, income support supplement or a veteran payment.

(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.

823 Continued payment of deceased partner’s previous entitlement

(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, income support supplement or a veteran payment—the amount that would have been payable to the partner under Part III, IIIA or IIIAA 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 partner’s payday; or

(ii) in any other case—follows the partner’s payday;

if the partner had not died.

(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.

824 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 subsection 825, 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 paydays of the partner 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.

825 Adjustment of rate of person’s special needs pension

If:

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

(b) the person does not elect under subsection 822(2) not to receive payments under this Subdivision;

the rate of the person’s special needs pension during the bereavement period is worked out as follows:

(c) during the bereavement rate continuation period, the rate of special needs pension 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 special needs pension is payable to the person is the rate at which the special needs pension would be payable to the person apart from this Subdivision.

826 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 825, 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 paydays of the partner in the period that starts 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.

827 Matters affecting payment of benefits under this Subdivision

(1) If:

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

the following provisions have effect:

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

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

(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, within the bereavement period, into an account with a bank; and

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

Subdivision C—Death of recipient

830 Death of recipient

(1) If:

(a) a person is receiving a special needs pension; 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

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the amount that would have been payable to the person under this Act on the person’s payday after the person’s death if the person had not died.

(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 the death of a person qualified for bereavement payments under Subdivision A, see section 826.

Part 2.17—Economic security strategy payment

900 Qualification for economic security strategy payment

Qualified if this section applies

(1) A person is qualified for an economic security strategy payment if subsection (2), (3) or (4) applies to the person.

Receipt of certain payments

(2) This subsection applies to a person if:

(a) the person was receiving one of the following payments in respect of 14 October 2008:

(i) an age pension;

(ii) a disability support pension;

(iii) a wife pension;

(iv) a carer payment;

(v) a bereavement allowance;

(vi) a widow B pension;

(vii) a widow allowance;

(viii) partner allowance;

(ix) carer allowance; and

(b) except in the case of carer allowance, the person was receiving that payment because of a claim the person made on or before 14 October 2008.

Note: For receive see subsections 23(2) and (4).

Pension age and receipt of other payments

(3) This subsection applies to a person if:

(a) the person reached pension age on or before 14 October 2008; and

(b) the person was receiving one of the following payments in respect of 14 October 2008:

(i) a parenting payment;

(ii) austudy payment;

(iii) special benefit;

(iv) a payment under the ABSTUDY Scheme that includes an amount identified as living allowance; and

Note: For receive see subsections 23(2) and (4).

Qualified for seniors health card

(4) This subsection applies to a person if:

(a) on or before 14 October 2008, the person made a claim for a seniors health card under Division 1 of Part 3 of the Administration Act and had not withdrawn that claim on or before 14 October 2008; and

(b) on 14 October 2008, the person was qualified for the card.

One payment under this section only

(5) A person cannot receive more than one payment under this section, regardless of how many times the person qualifies under this section.

(6) Despite anything else in this section, a person who is eligible for a payment under section 118ZZQ of the Veterans’ Entitlements Act is not qualified for a payment under this section unless the person is so qualified because he or she was receiving carer allowance in respect of 14 October 2008.

901 Amount of economic security strategy payment—general

(1) The amount of a person’s economic security strategy payment under this Part is the amount, specified in column 3 of the following table, that corresponds to the family situation, specified in column 2 of the table, that applied to the person on 14 October 2008:

Amount of economic security strategy payment
Item	Person’s family situation on 14 October 2008	Amount
1	Not member of couple	$1,400.00
2	Partnered	$1,050.00
3	Member of illness separated couple	$1,400.00
4	Member of respite care couple	$1,400.00
5	Partnered (partner in gaol)	$1,400.00

Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

(2) However, this section does not apply to a person if he or she is qualified under section 900 for an economic security strategy payment because he or she was receiving carer allowance in respect of 14 October 2008.

902 Amount of economic security strategy payment—person receiving carer allowance

(1) If a person:

(a) is qualified under section 900 for an economic security strategy payment because he or she was receiving carer allowance in respect of 14 October 2008; and

(b) would not be so qualified if he or she had not been receiving carer allowance in respect of 14 October 2008;

the amount of the person’s economic security strategy payment under this Part is the amount worked out under subsection (3) for the person’s carer allowance.

(2) If a person:

(a) is qualified under section 900 for an economic security strategy payment because he or she was receiving carer allowance in respect of 14 October 2008; and

(b) would be so qualified even if he or she had not been receiving carer allowance in respect of 14 October 2008;

the amount of the person’s economic security strategy payment under this Part is the sum of the amount worked out under subsection (3) for the person’s carer allowance and the amount that would have been worked out under section 901 for the person if subsection 901(2) had not applied.

(3) Subject to subsection (4), the amount for a person’s carer allowance is worked out by adding together the amount applicable under this section for each person (care receiver) whose care qualified the person for carer allowance in respect of 14 October 2008.

(4) If subsection 953(2) applied in relation to the carer allowance in respect of 14 October 2008, the 2 disabled children whose care qualified the person for carer allowance in respect of 14 October 2008 are to be treated as if they were a single care receiver in relation to the person qualified for the economic security strategy payment.

(5) Subject to subsection (6), the amount applicable for a care receiver is $1,000.

(6) If the rate at which carer allowance in respect of 14 October 2008 was paid took account of a determination under subsection 981(1) of a particular share (being a percentage or proportion) in relation to a care receiver, the amount applicable for the care receiver is that share of $1,000.

Part 2.18—Training and learning bonus

910 Qualification for training and learning bonus

Qualified if this section applies

(1) A person is qualified for a training and learning bonus if subsection (2) or (4) applies to the person.

Receipt of certain payments

(2) This subsection applies to a person if the person was receiving one or more of the following payments in respect of 3 February 2009:

(a) youth allowance;

(b) austudy payment;

(d) sickness allowance;

(e) a payment under the ABSTUDY Scheme that included an amount identified as living allowance;

(f) an education allowance under section 3.2, 3.3, 3.4, 3.5, 3.6 or 3.6A of the Veterans’ Children Education Scheme;

(g) an education allowance under section 3.2, 3.3, 3.4, 3.5 or 3.6 of the Military Rehabilitation and Compensation Act Education and Training Scheme.

(3) However:

(a) paragraph (2)(a) does not apply to the person unless the person was receiving youth allowance on the basis that, on 3 February 2009:

(i) the person was undertaking full‑time study; or

(ii) the person was qualified for a youth allowance under section 540AA; and

(b) paragraph (2)(c) does not apply if the person had reached pension age on or before 14 October 2008.

Person entitled to family tax benefit Part A

(4) This subsection applies to a person if:

(a) on 3 February 2009 the person was entitled to family tax benefit; and

(b) the rate of family tax benefit payable in relation to that day consisted of or included a Part A rate greater than nil worked out taking into account at least one FTB child who was aged 21 or more and less than 25 on that day; and

(c) the person would have been entitled to a back to school bonus under section 95 of the Family Assistance Act if any such child were aged 4 or more and less than 19 on that day.

One payment under this section only

(5) A person cannot receive more than one payment under this section, regardless of how many times the person qualifies under this section.

No qualification under subsection (2) in certain circumstances

(6) Despite anything else in this section, a person who is:

(a) an FTB child in respect of whom another person is entitled to a back to school bonus under section 95 of the Family Assistance Act; or

(b) entitled to a back to school bonus under section 98 of the Family Assistance Act;

is not qualified for a training and learning bonus under subsection (2) of this section.

911 Amount of training and learning bonus

(1) The amount of a person’s training and learning bonus is:

(a) if the person qualifies for a training and learning bonus under subsection 910(2) but not under subsection 910(4)—$950; or

(b) if the person qualifies for a training and learning bonus under subsection 910(4) but not under subsection 910(2)—$950 for each FTB child because of whom the person so qualifies; or

(c) if the person qualifies for a training and learning bonus under subsection 910(2) and also qualifies under subsection 910(4)—the sum of:

(i) $950; and

(ii) $950 for each FTB child because of whom the person so qualifies.

(2) Despite paragraph (1)(b) and subparagraph (1)(c)(ii) of this section, subsections 97(3), (4) and (5) of the Family Assistance Act apply in relation to the amount of a person’s training and learning bonus in relation to an FTB child in the same way as they would apply in relation to the amount of a back to school bonus under that Act.

Part 2.18A—Clean energy payments

Division 1—Clean energy advances

Subdivision A—Qualifying for clean energy advances

914 Recipients of certain social security payments

Qualification for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May 2012 and ending on 30 June 2012, determine that a person is qualified for a clean energy advance if, on that day:

(a) the person receives one of the social security payments set out in subsection (4); and

(b) the person’s rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

Qualification for days 1 July 2012 to 19 March 2013

(2) The Secretary may determine that a person is qualified for a clean energy advance if, on a day during the period starting on 1 July 2012 and ending on 19 March 2013:

(a) the person receives one of the social security payments set out in subsection (4); and

(b) the person’s rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

(3) A determination under subsection (2) must specify the first day during the period set out in that subsection for which the person:

(a) satisfies paragraphs (2)(a), (b) and (ba); and

(b) is in Australia, disregarding any temporary absence from Australia for a continuous period not exceeding 6 weeks.

Clean energy qualifying payments

(4) The social security payments (the clean energy qualifying payments) are as follows:

(a) age pension;

(b) benefit PP (partnered);

(d) carer payment;

(e) disability support pension (other than for a person who is under 21 with no dependent children);

(f) newstart allowance;

(g) pension PP (single);

(h) partner allowance;

(i) seniors supplement;

(j) sickness allowance;

(k) special benefit, whose rate is worked out as if the person were qualified for newstart allowance;

(l) widow allowance;

(m) widow B pension;

(n) wife pension.

914A Recipients of austudy, youth allowance, some disability support pensions and some special benefits

Qualification for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May 2012 and ending on 30 June 2012, determine that a person is qualified for a clean energy advance if, on that day:

(a) the person receives one of the social security payments set out in subsection (5); and

(b) the person’s rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

Qualification for days 1 July 2012 to 30 June 2013

(2) The Secretary may determine that a person is qualified for a clean energy advance if, on a day during the period starting on 1 July 2012 and ending on 30 June 2013:

(a) the person receives one of the social security payments set out in subsection (5); and

(b) the person’s rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

Qualification for days 1 July 2013 to 31 December 2013

(3) The Secretary may determine that a person is qualified for a clean energy advance if, on a day during the period starting on 1 July 2013 and ending on 31 December 2013:

(a) the person receives one of the social security payments set out in subsection (5); and

(b) the person’s rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

First day of qualification under subsection (2) or (3)

(4) A determination under subsection (2) or (3) must specify the first day during the period set out in that subsection for which the person:

(a) satisfies paragraphs (a), (b) and (ba) of that subsection; and

(b) is in Australia, disregarding any temporary absence from Australia for a continuous period not exceeding 6 weeks.

Clean energy qualifying payments

(5) The social security payments (the clean energy qualifying payments) are as follows:

(a) austudy payment;

(b) disability support pension for a person who is under 21 with no dependent children;

(d) youth allowance.

914B Disregard nil rate in certain circumstances

(1) For the purposes of section 914 or 914A, a person is taken to receive a social security payment at a rate greater than nil even if the person’s rate would be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in force; or

(b) the person has been paid an advance pharmaceutical allowance under the social security law.

(2) For the purposes of section 914 or 914A, if a social security payment is payable to a person because of subsection 23(1D), the person is taken to receive that payment at a rate greater than nil.

914C Limits on qualifying for multiple advances

(1) A person cannot qualify for more than one clean energy advance under section 914.

(2) A person can qualify for at most 2 clean energy advances under section 914A:

(a) one under either subsection 914A(1) or (2); and

(b) one under subsection 914A(3).

(3) A person who has qualified for a clean energy advance under subsection 914(1) or 914A(1) cannot qualify for a clean energy advance under the other of those subsections.

Note 1: Further limits may be determined under section 918.

Note 2: Top‑up payments of clean energy advance may be payable under Subdivision C if the person’s circumstances change during the person’s clean energy advance period.

Subdivision B—Amount of a clean energy advance

914D Amount of a clean energy advance

(1) On the day (the decision day) that the Secretary determines that a person (the recipient) is qualified for a clean energy advance, the Secretary must work out the amount of the advance.

Note: The advance will be paid in a lump sum as soon as is reasonably practicable (see section 47D of the Administration Act).

(2) The amount of the advance is the result of the following formula rounded up to the nearest multiple of $10:

914E Clean energy advance daily rate

(1) The recipient’s clean energy advance daily rate is worked out as follows:

Working out the recipient’s clean energy advance daily rate
	If the recipient’s clean energy qualifying payment is:	Use this provision:
1	(a) age pension; or (b) bereavement allowance; or (c) disability support pension to which neither subsection 1066A(1) nor 1066B(1) applies; or (d) wife pension; or (e) carer payment; or (f) seniors supplement; or (g) widow B pension; or (h) another payment, and the recipient reached pension age on or before the decision day	subsection (2)
2	one of the following payments, and the recipient is under pension age on the decision day: (a) newstart allowance, if the recipient’s maximum basic rate is worked out under point 1068‑B5; (b) pension PP (single); (c) youth allowance, if the recipient’s maximum basic rate is worked out under point 1067G‑B3A	subsection (3)
3	one of the following payments, and the recipient is under pension age on the decision day: (a) newstart allowance, if the recipient’s maximum basic rate is not worked out under point 1068‑B5; (b) sickness allowance; (c) partner allowance; (d) widow allowance; (e) benefit PP (partnered); (f) special benefit, whose rate is worked out as if the recipient were qualified for newstart allowance	subsection (4)
4	disability support pension to which subsection 1066A(1) or 1066B(1) applies	subsection (5)
5	one of the following payments, and the recipient is under pension age on the decision day: (a) austudy payment; (b) youth allowance, if: (i) the recipient’s maximum basic rate is not worked out under point 1067G‑B3A; and (ii) the recipient’s rate of youth allowance is not worked out by adding a youth disability supplement; (c) special benefit, whose rate is worked out as if the recipient were qualified for austudy payment or youth allowance	subsection (6)
6	youth allowance, whose rate is worked out by adding a youth disability supplement	subsection (7)

Note: For recipient and decision day, see subsection 914D(1).

Rate for payments set out in item 1 of the table

(2) The recipient’s clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of:

(i) double the maximum basic rate under Pension Rate Calculator A, worked out for 1 July 2012 for a person who is partnered; and

(ii) the combined couple rate of pension supplement for 1 July 2012; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $5.20 (rounding up if that result is not a multiple of $5.20 but is a multiple of $2.60); and

(d) applying the applicable percentage in the following table to the result of paragraph (c); and

(e) rounding the result of paragraph (d) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30); and

(f) dividing the result of paragraph (e) by 364.

Percentage to be applied
Item	Recipient’s family situation on the advance qualification day	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: This subsection covers payments covered by Pension Rate Calculator A, B or C, seniors supplement, recipients of other payments who have reached pension age and recipients of pensions covered by clause 146 of Schedule 1A.

Rate for payments set out in item 2 of the table

(3) The recipient’s clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the pension supplement basic amount, for the clean energy qualifying payment, worked out:

(i) for 1 July 2012; and

(ii) for a person in circumstances the same as the recipient’s on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30); and

(d) dividing the result of paragraph (c) by 364.

Rate for payments set out in item 3 of the table

(4) The recipient’s clean energy advance daily rate is worked out by:

(a) working out 1.7% of the maximum basic rate for the clean energy qualifying payment, worked out:

(i) for 1 July 2012; and

(ii) for a person in circumstances the same as the recipient’s on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Rate for payments set out in item 4 of the table

(5) The recipient’s clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the youth disability supplement, for the clean energy qualifying payment, worked out:

(i) for the first day of the recipient’s clean energy advance period; and

(ii) for a person in circumstances the same as the recipient’s on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30); and

(d) dividing the result of paragraph (c) by 364.

Rate for payments set out in item 5 of the table

(6) The recipient’s clean energy advance daily rate is worked out by:

(a) working out 1.7% of the maximum basic rate for the clean energy qualifying payment, worked out:

(i) for the first day of the recipient’s clean energy advance period; and

(ii) for a person in circumstances the same as the recipient’s on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Rate for payments set out in item 6 of the table

(7) The recipient’s clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the youth disability supplement, for the clean energy qualifying payment, worked out:

(i) for the first day of the recipient’s clean energy advance period; and

(ii) for a person in circumstances the same as the recipient’s on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

914F Number of advance days

The recipient’s number of advance days is the number of days in the recipient’s clean energy advance period that are on or after:

(a) if the recipient qualifies for the clean energy advance before 1 July 2012—1 July 2012; or

(b) otherwise—the advance qualification day.

Subdivision C—Top‑up payments of clean energy advance

914G Top‑up payments of clean energy advance

(1) The Minister may by legislative instrument determine that persons:

(a) who have been paid the amount (the original payment) of a specified clean energy advance worked out under Subdivision B in relation to a clean energy qualifying payment (the original qualifying payment); and

(b) whose circumstances change, within a period specified in the instrument, in a way that is specified in the instrument and is covered by subsection (2) or (3);

qualify for a further payment, of the amount worked out in accordance with the instrument, of clean energy advance.

(2) This subsection covers a person’s circumstances changing in a way such that:

(a) on the day (the change day) the change happens, the person was still receiving the original qualifying payment; and

(b) had the amount of the original payment been worked out by reference to the person’s circumstances on the change day (rather than those on the advance qualification day), a greater clean energy advance daily rate would have been used for working out that amount than the rate actually used for working out that amount.

(3) This subsection covers a change in a person’s circumstances that, apart from a multiple qualification exclusion, would (if any necessary administrative decisions were made) qualify the person for a clean energy bonus, under an Act or a scheme, relating to a payment other than the original qualifying payment.

(4) For the purposes of subsection (3), a multiple qualification exclusion is an instrument that:

(a) provides a person is not qualified for a clean energy bonus under an Act or a scheme because of the person’s qualification for or receipt of the original payment or the original qualifying payment; and

(b) is made under:

(i) section 918; or

(ii) section 424L of the MRCA; or

(iii) section 65A of the Veterans’ Entitlements Act;

or is an instrument establishing qualifications for a clean energy bonus under a scheme.

(5) An instrument under subsection (1) may provide for:

(a) different periods for changes in circumstances depending on different changes in circumstances; and

(b) different ways of working out further amounts of the original payment depending on different changes in circumstances.

Division 2—Quarterly energy supplement

915 When quarterly energy supplement is payable

Quarterly energy supplement is payable to a person for each day for which an election by the person under subsection 915A(1) or 1061VA(1) is in force in relation to a social security payment the person is receiving.

Note: Section 918 may affect the person’s qualification for quarterly energy supplement.

915A Electing to receive quarterly energy supplement

(1) If:

(a) Part 2.25C (about quarterly pension supplement) does not apply to a person in relation to a social security payment the person is receiving; and

(b) energy supplement is used to work out the rate of that social security payment;

the person may, in a manner or way approved by the Secretary, make an election to receive the person’s energy supplement under this Division as a separate social security payment.

Note: The person could make an election under subsection 1061VA(1) if Part 2.25C applies to the person in relation to the social security payment. That election would cause quarterly energy supplement to be payable (see section 915).

(2) An election comes into force as soon as practicable after it is made.

(3) An election ceases to be in force if the person ceases to receive a social security payment (a main payment) calculated using a Rate Calculator that has an energy supplement Module.

(4) The person may, in a manner or way approved by the Secretary, revoke an election. A revocation takes effect as soon as practicable after it happens.

915B Rate of quarterly energy supplement

(1) The person’s daily rate of quarterly energy supplement, for a particular day, is:

(a) if the Rate Calculator for the main payment received on that day produces an annual rate—1/364 of the amount that, apart from this Division, would be the person’s energy supplement for that day; or

(b) if the Rate Calculator for the main payment received on that day produces a fortnightly rate—1/14 of the amount that, apart from this Division, would be the person’s energy supplement for that day.

(2) This section has effect subject to subsection 1210(3A).

Division 4—Essential medical equipment payment

917A Definitions

In this Division:

EMEP residence has the meaning given by subsection 917C(1).

essential medical equipment payment:

(a) means an essential medical equipment payment under this Division (except in section 917F); and

(b) in section 917F—has the meaning given by that section.

medical equipment, in relation to a person who satisfies the medical needs requirement under paragraph 917C(1)(b), means the heating or cooling system (as the case requires) of the residence described in that paragraph.

person with medical needs has the meaning given by paragraph 917C(2)(b).

917B Qualification for essential medical equipment payment

(1) A person (the claimant) is qualified for an essential medical equipment payment for an income year if:

(a) the Secretary is satisfied that the claimant satisfies each of the following on the EMEP test day:

(i) the medical needs requirement in section 917C;

(ii) the concession card requirement in section 917D;

(iii) the energy account requirement in section 917E; and

(b) a medical practitioner has (subject to subsection (2)) certified that:

(i) the claimant meets the medical needs requirement under subsection 917C(1) on a day; or

(ii) another specified person meets the medical needs requirement under subsection 917C(1) on a day;

(as the case requires); and

(d) the claimant is not a dependent child of another person on the EMEP test day; and

(e) the claimant is in Australia on the EMEP test day.

(2) Paragraph (1)(b) does not apply if the Secretary is otherwise satisfied that the claimant or another specified person meets the medical needs requirement in section 917C.

Meaning of EMEP test day

(3) For the purposes of subsection (1), the EMEP test day is either:

(a) the day in the income year referred to in subsection (1) on which the claimant makes the claim for the payment; or

(b) an anniversary (in the income year referred to in subsection (1)) of the day on which the claimant made a claim for the payment if:

(i) the claimant made the claim in a previous income year; and

(ii) since the claimant made the claim, the Secretary has not determined that the claimant has ceased to be qualified for the payment.

Note 1: Under section 11 of the Administration Act, a person is required to make a claim for a social security payment.

Note 2: For additional rules relating to the claim, see section 19 of the Administration Act.

Determining qualification for later income years

(4) In determining whether a person is qualified for an essential medical equipment payment for an income year after the income year in which the claim for the payment is made, the Secretary:

(a) may act on the basis of the documents and information in his or her possession; and

(b) is not required to conduct any inquiries or investigations into the matter or to require (whether under this Act or otherwise) the giving of any information or the production of any document.

(5) Despite subsection (4), the Secretary may require a further certification for the purposes of paragraph (1)(b), or further information or a further document for the purposes of subsection (2), in an income year after the income year in which the claim is made.

917C The medical needs requirement

Person who has medical needs

(1) A person satisfies the medical needs requirement on a day if:

(a) the person has a medical condition on that day, and as a result:

(i) the person requires the use of specified essential medical equipment in a residence (the EMEP residence) that is the person’s home and is either a private residence or a specified residence; and

(ii) the person uses that equipment in that residence; or

(b) the person has a specified medical condition on that day, and as a result:

(i) the person is unable to regulate his or her body temperature; and

(ii) additional heating or cooling is required, in a residence (the EMEP residence) that is the person’s home and is either a private residence or a specified residence, to manage the person’s condition; and

(iii) the person uses additional heating or cooling in that residence.

Caring for a person who has medical needs

(2) A person (the carer) also satisfies the medical needs requirement on a day if:

(a) the carer provides care and attention on a regular and ongoing basis for a person; and

(b) the person (the person with medical needs) satisfies the medical needs requirement under subsection (1) on the day; and

(c) the person with medical needs is specified in the certification under subparagraph 917B(1)(b)(ii) or is the person specified for the purposes of subsection 917B(2) (as the case requires); and

(d) the carer’s home is the EMEP residence that is the home of the person with medical needs.

Legislative instrument

(3) The Minister may, by legislative instrument, specify:

(a) essential medical equipment for the purposes of paragraph (1)(a); and

(b) medical conditions for the purposes of paragraph (1)(b); and

917D The concession card requirement

A person satisfies the concession card requirement on a day if:

(a) the person is a holder of a concession card, or the person’s name is included on a concession card, on that day; or

(b) both of the following apply:

(i) the person satisfies the medical needs requirement under subsection 917C(2) (caring for a person) on that day in relation to a person with medical needs;

(ii) the person with medical needs is a holder of a concession card, or the name of the person with medical needs is included on a concession card, on that day.

917E The energy account requirement

(1) A person satisfies the energy account requirement on a day if:

(a) on that day, the energy account for the relevant EMEP residence is in the name of that person; or

(b) on that day, the energy account for the relevant EMEP residence is in the name of that person’s partner; or

(d) if the person is not the person with medical needs—the person with medical needs contributes (whether wholly or partly) to paying the energy account for the relevant EMEP residence.

(2) For the purposes of subsection (1), an energy account for a residence means any account for:

(a) electricity; or

(b) any other specified form of energy;

that is supplied to the residence.

(3) The Minister may, by legislative instrument, specify forms of energy for the purposes of paragraph (2)(b).

917F Availability of payments

(1) No essential medical equipment payment may be made for an income year in relation to medical equipment that is used in an EMEP residence if an essential medical equipment payment has already been made for that income year in relation to the same equipment and the same residence.

(2) No more than 2 essential medical equipment payments may be made in relation to the same medical equipment for an income year (subject to subsection (1)).

(3) Essential medical equipment payments for an income year may not be made, in relation to a person with medical needs, in relation to more than 2 EMEP residences.

Meaning of essential medical equipment payment

(4) In this section, an essential medical equipment payment means an essential medical equipment payment under this Division or Division 3 of Part IIIE of the Veterans’ Entitlements Act.

917G Amount of payment

The amount of an essential medical equipment payment for an income year is $140.

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

917H Non‑receipt of social security payment

(1) This section applies for the purposes of a provision of this or another Act if:

(a) the provision provides a benefit (whether the benefit is a pension, benefit, payment, supplement or any other sort of benefit) if a person meets specified criteria; and

(b) one of the specified criteria is that the person is receiving a social security payment, or is a recipient of a social security payment.

(2) For the purposes of the provision, a person is not taken to be receiving a social security payment, or to be a recipient of a social security payment, merely because the person receives an essential medical equipment payment.

Division 5—Multiple qualification exclusions

918 Multiple qualification exclusions

(1) The Minister may by legislative instrument determine that persons in circumstances specified in the instrument cannot qualify for a clean energy bonus under this Act that is specified in the instrument.

(2) Those circumstances must relate to persons’ qualification for or receipt of one or more of the following:

(a) a clean energy bonus under this Act;

(b) a clean energy bonus under the MRCA;

(d) a clean energy bonus under a scheme (however described), whether or not the scheme is provided for, by or under an Act.

(3) An instrument under subsection (1) has effect according to its terms, despite any other provision of this Act.

Part 2.19—Carer allowance

Division 1—Interpretation

952 Carer allowance definitions

In this Part, unless the contrary intention appears:

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

care receiver has the meaning given by subsections 953(1) and (2), 954(1) and 954A(1) and section 954B.

Disability Care Load Assessment (Child) Determination has the meaning given by subsection 38E(1).

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.

disabled child means a person aged under 16 who:

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

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

Division 2—Qualification for and payability of carer allowance

953 Qualification for carer allowance—caring for either 1 or 2 disabled children

Single child

(1) A person is qualified for carer allowance for a disabled child (the care receiver) if:

(a) the care receiver is a dependent child (disregarding subsection 5(3)) of the person; and

(b) the care receiver is an Australian resident; and

(d) because of the disability from which the care receiver is suffering, the care receiver receives care and attention on a daily basis from:

(i) if the person is a member of a couple—the person, the person’s partner or the person together with another person (whether or not the person’s partner); or

(ii) if the person is not a member of a couple—the person or the person together with another person;

in a private home that is the residence of the person and the care receiver; and

(e) either of the following applies:

(i) the disability from which the care receiver is suffering is declared, under subsection 38E(3), to be a recognised disability for the purposes of this section;

(ii) the person has been given a qualifying rating of intense under the Disability Care Load Assessment (Child) Determination for caring for the care receiver; and

(f) the person is an Australian resident; and

(g) the person satisfies the carer allowance income test under section 957A.

2 children

(2) A person is qualified for carer allowance for 2 disabled children (the care receivers) if:

(a) each care receiver is a dependent child (disregarding subsection 5(3)) of the person; and

(b) each care receiver is an Australian resident; and

(d) because of the disability from which each care receiver is suffering, each care receiver receives care and attention on a daily basis from:

(i) if the person is a member of a couple—the person, the person’s partner or the person together with another person (whether or not the person’s partner); or

(ii) if the person is not a member of a couple—the person or the person together with another person;

in a private home that is the residence of the person and each care receiver; and

(e) the person has been given a qualifying rating of intense under the Disability Care Load Assessment (Child) Determination for caring for the care receivers; and

(f) the person is an Australian resident; and

(g) the person satisfies the carer allowance income test under section 957A.

Note 1: For Australian resident see section 7.

Note 2: For qualification for carer allowance in circumstances of hospitalisation, see section 955.

Note 4: For the effect of temporary cessation of care and attention on carer allowance, see section 957.

Note 5: For the effect of 2 people being qualified for carer allowance, see sections 964 and 965.

953A Remaining qualified for carer allowance after child turns 16

Single child

(1) If:

(a) a person is qualified for carer allowance under subsection 953(1) for a disabled child; and

(b) the child turns 16; and

(c) apart from the child turning 16, the person would remain qualified for carer allowance under that subsection for that child;

then the person remains qualified for carer allowance under that subsection for that child until the later of the following:

(d) the end of the period of 3 months starting on the day the child turns 16;

(e) if the person ensures that, on or before the day the child turns 16, the Secretary is given all the information, statements and other materials that are needed in order for the child to be assessed and rated and given a score under the Adult Disability Assessment Tool—the end of the day before the first day on which the child is given such a score.

Two children

(2) If:

(a) a person is qualified for carer allowance under subsection 953(2) for 2 disabled children; and

(b) on a particular day (the relevant day), either or both of those children turn 16; and

(c) apart from either or both of those children turning 16, the person would remain qualified for carer allowance under that subsection for those children;

then the person remains qualified for carer allowance under that subsection for those children until the later of the following:

(d) the end of the period of 3 months starting on the relevant day;

(e) if the person ensures that, on or before the relevant day, the Secretary is given all the information, statements and other materials that are needed in order for each child who turns 16 on the relevant day to be assessed and rated and given a score under the Adult Disability Assessment Tool—the end of the day before the first day on which such a score is given to such a child.

(3) Subsection (2) can apply only once in relation to the same 2 disabled children.

954 Qualification for carer allowance—caring for a disabled adult in a private home of both the adult and the carer

(1) A person is qualified for carer allowance for a disabled adult (the care receiver) if:

(a) the care receiver is an Australian resident; and

(b) the care receiver is a family member of the person or is a person approved in writing by the Secretary for the purposes of this paragraph; and

(c) the care receiver has been assessed and rated under the Adult Disability Assessment Tool and given a score under that assessment tool of at least 30, being a score calculated on the basis of a professional questionnaire score of at least 12; and

(d) because of the disability from which the care receiver is suffering, the care receiver receives care and attention on a daily basis from the person, or the person together with another person, in a private home that is the residence of the person and the care receiver; and

(f) the person is an Australian resident; and

(g) the person satisfies the carer allowance income test under section 957A.

Note 1: For family member see subsection 23(1). For Australian resident see section 7.

Note 2: For qualification for carer allowance in circumstances of hospitalisation, see section 955.

Note 4: For the effect of temporary cessation of care and attention on carer allowance, see section 957.

Note 5: For the effect of 2 people being qualified for carer allowance, see sections 964 and 965.

Disabled adult does not qualify for carer allowance for another disabled adult

(2) If a person is qualified for carer allowance for a disabled adult, the disabled adult is not able to qualify for carer allowance for another disabled adult.

Person cannot qualify for more than 2 carer allowances

(3) A person may qualify for carer allowance under this section and/or section 954A for 2, but no more than 2, disabled adults.

954A Qualification for carer allowance—caring for a disabled adult in a private home not shared by the adult and carer

(1) A person is qualified for carer allowance for a disabled adult (the care receiver) if:

(a) the care receiver is an Australian resident; and

(b) the care receiver is a family member of the person or is a person approved in writing by the Secretary for the purposes of this paragraph; and

(d) the care receiver receives care and attention that meet the requirements in subsection (2); and

(e) the person is an Australian resident; and

(ea) the person satisfies the carer allowance income test under section 957A; and

(f) the person’s work in providing the care and attention is not on wages that are at or above the relevant minimum wage; and

(g) neither the person nor anyone else is qualified for carer allowance for the care receiver under section 954.

Note 1: For Australian resident see section 7. For family member see subsection 23(1).

Note 2: For qualification for carer allowance in circumstances of hospitalisation, see section 955.

Note 3: For the effect of temporary cessation of care and attention on carer allowance, see section 957.

Note 4: For the effect of 2 people being qualified for carer allowance, see sections 964 and 965.

(2) The care and attention:

(a) must address special care needs:

(i) that the care receiver is assessed under the Adult Disability Assessment Tool as having; and

(ii) that relate to the care receiver’s bodily functions or to sustaining the care receiver’s life; and

(b) must be received by the care receiver on a daily basis, for a total of at least 20 hours a week; and

(i) be received by the care receiver from the person alone; or

(ii) be received by the care receiver from the person together with another person whose work in providing the care and attention is not on wages that are at or above the wages mentioned in paragraph (1)(f), whether or not both persons are present every day when the care receiver receives the care and attention; and

(d) must be received in a private home that is the residence of the care receiver, the person or the other person (if any), but not the residence of both the care receiver and the person; and

(e) must not be care and attention of a kind (if any) specified, by legislative instrument, by the Secretary for the purposes of this paragraph.

Disabled adult does not qualify for carer allowance for another disabled adult

(4) If a person is qualified for carer allowance for a disabled adult, the disabled adult is not able to qualify for carer allowance for another disabled adult.

Person cannot qualify for more than 2 carer allowances

(5) A person may qualify for carer allowance under this section and/or section 954 for 2, but no more than 2, disabled adults.

954B Qualification for carer allowance—receiving carer payment for caring for child or children

While:

(a) a person is receiving a carer payment for caring for one or more persons (the care receiver or care receivers) other than:

(i) a care receiver referred to in subparagraph 197D(1)(a)(i); or

(ii) a care receiver referred to in paragraph 198(2)(a) or (d); and

(b) the person is not, apart from this section, qualified for carer allowance for the care receiver or care receivers;

the person is qualified for carer allowance for each care receiver.

Note: For the effect of 2 people being qualified for carer allowance for the same care receiver, see sections 964 and 965.

955 Qualification for carer allowance—hospitalisation

Participating in care of person in hospital

(1) If:

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

(b) it is reasonable to assume that, if the hospitalised person were not in hospital, one or more persons would qualify, under section 953, 954 or 954A, for carer allowance for the hospitalised person or for the hospitalised person and another person; and

(c) either the hospitalised person is terminally ill or it is reasonable to expect that, upon the hospitalised person leaving hospital:

(i) the hospitalised person will reside in the private home of the carer and the hospitalised person; or

(ii) the carer will qualify under section 954A for carer allowance for the hospitalised person;

the one or more persons who would qualify for carer allowance as mentioned in paragraph (b) qualify for carer allowance.

Limit on qualification under subsection (1) for disabled adult

(2) However, the period, or the sum of the periods, for which the one or more persons can be qualified under subsection (1) for a hospitalised person who is a disabled adult is 63 days in any calendar year.

Note: There is no limit for a hospitalised person who is a child.

956 Absence from Australia

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 allowance (within the meaning of that Division);

the person does not cease to be qualified, under section 953, 954 or 954A, for carer allowance merely because the care and attention of the care receiver or care receivers is not provided in a private home that is described in whichever one of paragraphs 953(1)(d) and (2)(d), 954(1)(d) and 954A(2)(d) is relevant.

957 Effect of cessation of care etc. on carer allowance

Continuation of allowance where temporary cessation of care

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

(a) a person is qualified, under section 953, 954 or 954A, for carer allowance because a care receiver or care receivers are receiving care and attention on a daily basis; and

(b) the care receiver or care receivers temporarily cease to receive care and attention that would qualify the person for carer allowance;

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

Continuation of allowance after hospitalisation—section 955 ceases to apply

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

(a) a person is qualified for carer allowance under section 955 because the person or another person is participating in the care of a disabled child or disabled adult in hospital; and

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

(c) the person would not cease to be qualified for carer allowance if the disabled child or disabled adult were receiving care and attention on a daily basis;

the person does not cease to be qualified for carer allowance merely because of the lack of receipt of that care and attention.

Limit on subsections (1) and (2)

(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 care in order to undertake training etc.

(4) If:

(a) a person is qualified under section 953 for carer allowance for a care receiver who is a disabled child or for care receivers who are 2 disabled children; and

(b) the care receiver or either or both of the care receivers then are, or are likely to be, receiving education, training or treatment (other than treatment in hospital) for a period; and

(c) during the period the care receiver or care receivers are not receiving the care and attention that would qualify the person for carer allowance; and

(d) subsection (1) does not apply to the period;

the person does not cease to be qualified for carer allowance during the period merely because of the lack of receipt of that care and attention.

Note: A person who continues to be qualified for carer allowance because of subsection (4) will receive a reduced rate of carer allowance: see subsection 974(3).

957A Carer allowance income test

(1) This is how to work out whether a person satisfies the carer allowance income test on a day (the test day).

Method statement

Step 1. Work out the amount of the person’s adjusted taxable income for the reference tax year.

Note 1: Section 957B deals with how to work out adjusted taxable income.

Note 2: For reference tax year see subsections (2) and (3).

Step 2. If, on the test day, the person is a member of a couple, work out the amount of the person’s partner’s adjusted taxable income for the reference tax year applicable under step 1.

Note 1: Section 957B deals with how to work out adjusted taxable income.

Note 2: For reference tax year see subsections (2) and (3).

Step 3. If, on the test day, the person is not a member of a couple, the person has reached the minimum age mentioned in section 301‑10 of the Income Tax Assessment Act 1997 and the person has at least one long‑term financial asset, work out the person’s deemed income amount under subsection 957D(1).

Note: For long‑term financial asset see subsection (5).

Step 4. If, on the test day, the person is a member of a couple and the person, or the person’s partner, or both, have reached the minimum age mentioned in section 301‑10 of the Income Tax Assessment Act 1997 and have at least one long‑term financial asset, work out the person’s deemed income amount under subsection 957D(2).

Note: For long‑term financial asset see subsection (5).

Step 5. Work out the sum of the amounts at steps 1, 2, 3 and 4 (as applicable).

Step 6. The person satisfies the carer allowance income test if the amount at step 5 is less than $250,000.

Reference tax year

(2) For the purposes of this section, a person’s reference tax year is:

(a) if the person has received a notice of assessment of the person’s taxable income for the base tax year—the base tax year; or

(b) otherwise—the tax year immediately preceding the base tax year.

Note: For base tax year see subsection (4).

(3) However, if the person has informed the Secretary in writing that the person wishes to have the person’s qualification for carer allowance determined by reference to the person’s adjusted taxable income for the tax year (the current tax year) in which the test day occurred, the person’s reference tax year is the current tax year.

(4) The base tax year is the tax year immediately preceding the tax year in which the test day occurred.

Note: For tax year see subsection 23(1).

Long‑term financial asset

(5) For the purposes of this Subdivision, a long‑term financial asset is:

(a) a financial investment within the meaning of paragraph (i) of the definition of financial investment in subsection 9(1), where the asset‑tested income stream (long term) arises under a complying superannuation plan (within the meaning of the Income Tax Assessment Act 1997) that is not a constitutionally protected fund (within the meaning of that Act); or

(b) a financial investment within the meaning of paragraph (j) of the definition of financial investment in subsection 9(1).

957B Adjusted taxable income

(1) For the purposes of this Subdivision, a person’s adjusted taxable income for a particular tax year is the sum of the following amounts (each of which is an income component):

(a) the person’s taxable income for that year, disregarding the person’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for that year;

(b) the person’s fringe benefits value for that year;

(d) the person’s total net investment loss for that year;

(e) the person’s tax free pensions or benefits for that year;

(f) the person’s reportable superannuation contributions for that year;

less the amount of the person’s deductible child maintenance expenditure (the deductible component) for that year.

Note: For tax year see subsection 23(1).

Taxable income

(2) For the purposes of this section, a person’s taxable income for a particular tax year is:

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

(b) if the person does not have an assessed taxable income for that year—the person’s accepted estimate of taxable income for that year.

Note: For accepted estimate see section 957C.

(3) For the purposes of this section, a person’s assessed taxable income for a particular tax year at a particular time is the most recent of:

(a) if, at that time, the Commissioner of Taxation has made an assessment or an amended assessment of that taxable income—that taxable income according to the assessment or amended assessment; or

(b) if, at that time, a tribunal has amended an assessment or an amended assessment made by the Commissioner—that taxable income according to the amendment made by the tribunal; or

(c) if, at that time, a court has amended an assessment or an amended assessment made by the Commissioner or an amended assessment made by a tribunal—that taxable income according to the amendment made by the court.

Fringe benefits value

(4) For the purposes of this section, a person’s fringe benefits value for a particular tax year is the person’s accepted estimate of the amount by which the total of the assessable fringe benefits received or to be received by the person in the tax year exceeds $1,000.

Note 1: For assessable fringe benefit see subsection 10A(2) and Part 3.12A.

Note 2: For accepted estimate see section 957C.

Target foreign income

(5) For the purposes of this section, a person’s target foreign income for a particular tax year is the person’s accepted estimate of the amount of the person’s target foreign income for that year.

Note 1: For target foreign income see subsection 10A(2).

Note 2: For accepted estimate see section 957C.

Total net investment loss

(6) For the purposes of this section, a person’s total net investment loss for a particular tax year is the person’s accepted estimate of the amount of the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for that year.

Note: For accepted estimate see section 957C.

Tax free pensions or benefits

(7) For the purposes of this section, a person’s tax free pensions or benefits for a particular tax year is the person’s accepted estimate of the total of the person’s tax free pensions or benefits (worked out under clause 7 of Schedule 3 to the A New Tax System (Family Assistance) Act 1999) for that year.

Note: For accepted estimate see section 957C.

Reportable superannuation contributions

(8) For the purposes of this section, a person’s reportable superannuation contributions for a particular tax year is the person’s accepted estimate of the amount of the person’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year.

Note: For accepted estimate see section 957C.

Deductible child maintenance expenditure

(9) For the purposes of this section, a person’s deductible child maintenance expenditure for a particular tax year is the person’s accepted estimate of the amount worked out under subclause 8(1) of Schedule 3 to the A New Tax System (Family Assistance) Act 1999 for the person for that year.

Note: For accepted estimate see section 957C.

957C Accepted estimates

(1) For the purposes of section 957B, a person’s accepted estimate of an income component, or the deductible component, for a particular tax year is that income component, or deductible component, according to the most recent notice given by the person to the Secretary under subsection (2) and accepted by the Secretary for the purposes of this section.

Note: For income component and deductible component see subsection 957B(1).

(2) A person may give the Secretary a notice, in a form approved by the Secretary, setting out the person’s estimate of an income component, or the deductible component, of the person for a tax year.

(3) The notice is to contain, or be accompanied by, such information as is required by the form to be contained in it or to accompany it, as the case may be.

(4) The Secretary is to accept a notice only if the Secretary is satisfied that the estimate is reasonable.

957D Income from long‑term financial assets

Person is not a member of a couple

(1) This is how to work out the person’s deemed income amount under this subsection:

Method statement

Step 1. Work out the total value of all of the person’s long‑term financial assets on the test day.

Note: For long‑term financial asset see subsection 957A(5).

Step 2. Work out under section 1076 the amount of ordinary income the person would be taken to receive per year on the financial assets:

(a) on the assumption that the only financial assets of the person were the financial assets referred to in step 1; and

(b) on the assumption that the total value of the person’s financial assets were the amount at step 1.

Step 3. The result at step 2 is the person’s deemed income amount.

Person is a member of a couple

(2) This is how to work out the person’s deemed income amount under this subsection:

Method statement

Step 1. If, on the test day, the person has reached the minimum age mentioned in section 301‑10 of the Income Tax Assessment Act 1997, work out the total value of all of the person’s long‑term financial assets on the test day.

Note: For long‑term financial asset see subsection 957A(5).

Step 2. If, on the test day, the person’s partner has reached the minimum age mentioned in section 301‑10 of the Income Tax Assessment Act 1997, work out the total value of all of the person’s partner’s long‑term financial assets on the test day.

Step 3. Work out under section 1077 the amount of ordinary income the couple would be taken to receive per year on the financial assets:

(a) on the assumption that section 1077 applied to the person and the person’s partner; and

(b) on the assumption that the only financial assets of the person and the person’s partner were the financial assets referred to in steps 1 and 2 (as applicable); and

(c) on the assumption that the total value of the couple’s financial assets were the sum of the amounts at steps 1 and 2 (as applicable).

Step 4. The result at step 3 is the person’s deemed income amount.

Subdivision B—Limitations on payability

958 Carer allowance not payable if allowance rate nil

A carer allowance is not payable to a person if the person’s carer allowance rate would be nil.

964 Carer allowance not payable to 2 people for the same care receiver or care receivers unless declaration made

If:

(a) 2 persons who are not members of the same couple are each qualified for carer allowance for the same care receiver or care receivers; and

(b) the Secretary has not made a declaration under subsection 981(1) in respect of carer allowance for the care receiver or care receivers; and

carer allowance is not payable to the other person for the care receiver or care receivers.

965 Carer allowance not payable to more than one member of a couple

(1) Subject to this section, if one member of a couple is receiving carer allowance for a care receiver or care receivers, carer allowance is not payable to the other member of the couple for the same care receiver or care receivers.

(2) If:

(a) the Secretary is satisfied that each of the members of a couple is qualified for carer allowance for the same care receiver or care receivers; and

(b) both members of the couple are qualified under section 953, 954 or 954A for carer allowance—each of them has made a claim for carer allowance (whether or not one of them is receiving carer allowance); and

(ba) only one of the members of the couple is qualified under section 953, 954 or 954A for carer allowance—that member has made a claim for carer allowance (whether or not one of them is receiving carer allowance);

the Secretary is to make a declaration:

(c) stating that the Secretary is satisfied that each of them is qualified for carer allowance for the care receiver or care receivers; and

(d) naming one of them as the member of the couple to whom carer allowance is payable for the care receiver or care receivers.

(3) If such a declaration is made, carer allowance for the care receiver or care receivers to which the declaration relates is not payable to the member of the couple who is not named in the declaration as mentioned in paragraph (2)(d).

(4) The Secretary is to give notice of the declaration to each of the members of the couple involved.

(5) In making the declaration, the Secretary must have regard to whether one member of the couple is the primary carer for the care receiver or care receivers.

966 Newly arrived resident’s waiting period

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

(a) has entered Australia; and

(b) has not been an Australian resident and in Australia for a period of, or periods totalling, 52 weeks.

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

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

Note: For qualifying residence exemption in relation to carer allowance see paragraph 7(6AA)(f).

(3) Subsection (1) does not apply to a person if, at the time the person made the claim for carer allowance, the person holds a visa that is in a class of visas determined by the Minister for the purposes of subsection 201AA(5).

(4) Subsection (1) does not apply to a person if:

(a) the person is receiving a social security pension or a social security benefit; or

(b) the person is receiving farm household allowance under the Farm Household Support Act 2014; or

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

(a) the person is a refugee, or a former refugee, at the time the person made the claim for carer allowance; or

(b) the following apply:

(i) before the person made the claim for carer allowance, the person was a family member of another person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the time the person made the claim for carer allowance or, if that other person has died, the person was a family member of that other person immediately before that other person died; or

(6) For the purposes of subsection (5):

(a) family member has the meaning given by subsection 7(6D); and

(b) former refugee has the meaning given by subsection 7(1); and

967 Duration of newly arrived resident’s waiting period

(1) If a person is subject to a newly arrived resident’s waiting period, the period starts on the day the person first became an Australian resident.

(2) The newly arrived resident’s waiting period ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 52 weeks.

Division 5—Rate of carer allowance

974 Rate of carer allowance

Daily rate

(1) A person’s rate of carer allowance is a daily rate worked out by dividing the person’s fortnightly rate of carer allowance by 14.

Fortnightly rate

(2) Subject to subsections (3) and (4), a person’s fortnightly rate of carer allowance for a care receiver or care receivers is $75.60.

Note: The rate of carer allowance is indexed annually (see sections 1190 and 1191).

Reduced fortnightly rate if care receiver undertakes training etc.

(3) If on one or more days (each of which is a training day) in an instalment period in relation to carer allowance a person would have stopped being qualified under section 953, apart from subsection 957(4) (care receiver undertakes training etc.), the person’s fortnightly rate of carer allowance for that period is to be reduced by the following amount:

Rate where carer allowance shared

(4) If:

(a) 2 people who are not members of the same couple are each qualified for carer allowance for the same care receiver or care receivers; and

(b) the Secretary has made a declaration under subsection 981(1) in respect of carer allowance for the care receiver or care receivers;

the person’s rate of carer allowance is the share specified in the declaration under paragraph 981(1)(b) of the carer allowance rate that would otherwise apply in respect of the care receiver or care receivers.

Division 6—Multiple qualification for carer allowance for same care receiver or receivers

981 Secretary may make declaration where 2 people are qualified for carer allowance for the same care receiver or care receivers

(1) If the Secretary is satisfied that 2 people who are not members of the same couple are each qualified for carer allowance for the same care receiver or care receivers, the Secretary is to make a declaration:

(a) stating that the Secretary is satisfied that the 2 people are each qualified for carer allowance for the care receiver or care receivers; and

(b) specifying the share of the carer allowance for the care receiver or care receivers that each of the 2 people is to receive.

(2) If the Secretary makes a declaration under subsection (1), the Secretary is to give each of the 2 people involved notice of the declaration.

Note 1: Until the declaration under this section is made, only one of the 2 people involved can receive carer allowance for the care receiver or care receivers—see section 964.

Note 2: For the effect of a declaration under this section on the calculation of carer allowance rates see subsection 974(4).

Division 10—Bereavement payments (death of disabled child or adult)

Subdivision A—Death of disabled child

992J Continued carer allowance during bereavement rate continuation period where disabled child dies

(1) If:

(a) a person is receiving carer allowance (other than because of this section or section 954B) for a care receiver who is a disabled child or for care receivers who are 2 disabled children; and

(b) the disabled child or one of the disabled children dies; and

the person is to be qualified for carer allowance during the bereavement rate continuation period as if the child had not died and had received the care and attention referred to in paragraph 953(1)(d) or 953(2)(d) (as the case may be).

Note 1: For bereavement rate continuation period see subsection 21(2).

Note 2: If a person fails to satisfy paragraph (1)(c), the person may still be qualified for carer allowance for 4 weeks after the death of the child under section 992L.

(2) The rate at which the carer allowance is to be paid during the bereavement rate continuation period is the rate at which the allowance was payable to the person immediately before the day on which the child died.

992K Lump sum payable in some circumstances

(1) If:

(a) a person is qualified for carer allowance under section 992J in relation to a disabled child, or one of 2 disabled children, who has died; and

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

a lump sum (worked out using the lump sum calculator at the end of this subsection) is payable to the person.

Lump Sum Calculator

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the rate at which carer allowance was payable to the person immediately before the child died.

Step 2. Work out the number of paydays of the person in the bereavement lump sum period.

Step 3. Multiply the rate obtained in Step 1 by the number obtained in Step 2: the result is the amount of the lump sum payable to the person under this section.

Note: For first available bereavement adjustment payday, bereavement period and bereavement lump sum period see subsection 21(2).

(2) However, if a person is qualified for carer allowance under section 992J in relation to 2 disabled children both of whom have died at the same time, only one lump sum is payable to the person under this section.

Subdivision B—Death of disabled child (special short‑term assistance)

992L Continuation of qualification for carer allowance for 4 weeks in some cases where recipient’s disabled child dies

(1) If:

(a) a person is receiving carer allowance (other than because of this section or section 954B) for a care receiver who is a disabled child or for care receivers who are 2 disabled children; and

(b) the disabled child or one of the disabled children dies; and

the person is to be qualified for carer allowance for the period of 4 weeks that starts on the day on which the child died as if the child had not died and had received the care and attention referred to in paragraph 953(1)(d) or 953(2)(d) (as the case may be).

(2) The rate at which the carer allowance is to be paid during the 4 week period is the rate at which the allowance was payable to the person immediately before the day on which the child died.

Subdivision BA—Death of disabled adult

992LA Continued carer allowance during bereavement rate continuation period where disabled adult dies

(1) If:

(a) a person is receiving carer allowance (other than because of this section) for a care receiver who is a disabled adult; and

(b) the disabled adult dies; and

(c) the person is receiving an income support payment (other than carer payment) at the time of the death of the disabled adult; and

(d) the person is not qualified for a payment under a provision of this Act (other than this section), or of the Veterans’ Entitlements Act, in respect of the death of the disabled adult;

the person is qualified for carer allowance during the bereavement rate continuation period as if the disabled adult had not died and had received the care and attention referred to in paragraph 954(1)(d) or 954A(1)(d) (as the case may be).

Note: For bereavement rate continuation period see subsection 21(2).

992LB Lump sum payable in some circumstances

If:

(a) a person is qualified for carer allowance under section 992LA in relation to a disabled adult who has died; and

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

a lump sum (worked out using the lump sum calculator at the end of this section) is payable to the person.

Lump Sum Calculator

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the rate at which carer allowance was payable to the person immediately before the disabled adult died.

Step 2. Work out the number of paydays of the person in the bereavement lump sum period.

Step 3. Multiply the rate obtained in step 1 by the number obtained in step 2: the result is the amount of the lump sum payable to the person under this section.

Note: For first available bereavement adjustment payday, bereavement period and bereavement lump sum period see subsection 21(2).

Subdivision C—Death of recipient

992M Death of recipient

(1) If:

(a) a person is receiving carer allowance; and

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

(d) the person:

(i) was qualified at the time of the person’s death for payments under Subdivision A in relation to the death of a disabled child or under Subdivision BA in relation to the death of a disabled adult; or

(ii) would have been so qualified if the person had not died;

there is payable to the partner an amount equal to the sum of the following amounts:

(e) the amount of carer allowance that would have been payable to the person under subsection 992J(2) or 992LA(2), as the case requires, if the person had not died;

(f) any lump sum that would have been payable to the person under section 992K or 992LB, as the case requires, if the person had not died.

(2) If:

(a) a person is receiving carer allowance; and

(b) the person is not a member of a couple; and

(d) the person:

(ii) would have been so qualified if the person had not died;

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the sum of the following amounts:

(e) the amount of carer allowance that would have been payable to the person under subsection 992J(2) or 992LA(2), as the case requires, if the person had not died;

(f) any lump sum that would have been payable to the person under section 992K or 992LB, as the case requires, if the person had not died.

Part 2.19AA—Child disability assistance

992MA Child disability assistance definitions

In this Part:

care receiver has the same meaning as in Part 2.19.

disabled child has the same meaning as in Part 2.19.

eligible care receiver has the meaning given by section 992MC.

qualified person has the meaning given by subsection 992MB(1).

qualifying instalment has the meaning given by subsection 992MB(2).

992MB Qualification for child disability assistance

(1) A person (the qualified person) is qualified for child disability assistance in respect of a particular 1 July if the following conditions are satisfied in respect of one or more instalments of carer allowance:

(a) the person was paid the instalment in respect of a period that included that 1 July;

(b) either:

(i) the instalment was for a care receiver who was a disabled child or for care receivers who were 2 disabled children; or

(ii) the instalment was for a care receiver referred to in paragraph 954B(a).

(2) Each instalment in respect of which the conditions in subsection (1) are satisfied is a qualifying instalment.

992MC Eligible care receivers

(1) Each person to whose care a qualifying instalment relates is an eligible care receiver in relation to the qualified person.

(2) However, if subsection 953(2) applied in relation to a qualifying instalment, the 2 disabled children to whom the instalment relates are to be treated as if they were a single eligible care receiver in relation to the qualified person.

992MD Amount of child disability assistance

(1) The amount of child disability assistance for the qualified person in respect of the 1 July is worked out by adding together the amount applicable under subsection (2) for each eligible care receiver in relation to the qualified person.

(2) The amount applicable under this subsection for an eligible care receiver is:

(a) $1,000; or

(b) if the rate at which the qualifying instalment was paid took account of a determination under subsection 981(1) of a particular share (being a percentage or proportion) in relation to an eligible care receiver—that share of $1,000.

Part 2.19A—One‑off payments to carers eligible for carer allowance

Division 1—One‑off payment to carers eligible for carer allowance

992N One‑off payment to carers (carer allowance related)

(1) A person (the qualified person) is qualified for a one‑off payment to carers (carer allowance related) if the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(a) the instalment was in respect of a period that included 11 May 2004;

(b) the reason why the instalment covered 11 May 2004 was not only because of clause 16 or 17 of Schedule 2 to the Social Security (Administration) Act 1999.

(2) For the purposes of this Part, the instalment, or each instalment, in relation to which paragraphs (1)(a) and (b) are satisfied is a qualifying instalment.

Note: The person may also be qualified for a one‑off payment to carers (carer payment related) under Division 1 of Part 2.5A.

992O In respect of what care receivers is the payment payable?

(1) Subject to subsection (2), each person to whose care a qualifying instalment relates is an eligible care receiver in relation to the qualified person.

(2) If subsection 953(2) applied in relation to a qualifying instalment, the 2 disabled children to whom the instalment relates are to be treated as if they were a single eligible care receiver in relation to the qualified person.

992P What is the amount of the payment?

Add together the amounts applicable under this section for each eligible care receiver

(1) The amount of the one‑off payment to the qualified person is worked out by adding together the amounts applicable under this section for each eligible care receiver.

Amount is $600 unless subsection (3) applies

(2) Subject to subsection (3), the amount applicable for an eligible care receiver is $600.

Reduced amount if instalment rate took account of a subsection 981(1) determination

(3) If the rate at which a qualifying instalment was paid took account of a determination under subsection 981(1) of a particular share (being a percentage or proportion) in relation to an eligible care receiver, the amount applicable for the eligible care receiver is that share of $600.

Division 2—2005 one‑off payment to carers eligible for carer allowance

992Q 2005 one‑off payment to carers (carer allowance related)

(1) A person (the qualified person) is qualified for a 2005 one‑off payment to carers (carer allowance related) if the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(a) the instalment was in respect of a period that included 10 May 2005;

(b) the reason why the instalment covered 10 May 2005 was not only because of clause 16 or 17 of Schedule 2 to the Social Security (Administration) Act 1999.

(2) For the purposes of this Part, the instalment, or each instalment, in relation to which paragraphs (1)(a) and (b) are satisfied is a qualifying instalment.

Note: The person may also be qualified for a 2005 one‑off payment to carers (carer payment related) under Division 2 of Part 2.5A.

992R In respect of what care receivers is the payment payable?

(1) Subject to subsection (2), each person to whose care a qualifying instalment relates is an eligible care receiver in relation to the qualified person.

992S What is the amount of the payment?

Add together the amounts applicable under this section for each eligible care receiver

(1) The amount of the one‑off payment to the qualified person is worked out by adding together the amounts applicable under this section for each eligible care receiver.

Amount is $600 unless subsection (3) applies

(2) Subject to subsection (3), the amount applicable for an eligible care receiver is $600.

Reduced amount if instalment rate took account of a subsection 981(1) determination

Division 3—2006 one‑off payment to carers eligible for carer allowance

992T 2006 one‑off payment to carers (carer allowance related)

(1) A person (the qualified person) is qualified for a 2006 one‑off payment to carers (carer allowance related) if the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(a) the instalment was in respect of a period that includes 9 May 2006;

(b) 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;

(2) For the purposes of this Part, the instalment, or each instalment, in relation to which paragraphs (1)(a), (b) and (c) are satisfied is a qualifying instalment.

992U In respect of which care receivers is the payment payable?

(1) Subject to subsection (2), each person to whose care a qualifying instalment relates is an eligible care receiver in relation to the qualified person.

992V Amount of the one‑off payment

Add together the amounts applicable under this section for each eligible care receiver

(1) The amount of the one‑off payment to the qualified person is worked out by adding together the amounts applicable under this section for each eligible care receiver.

Amount is $600 unless subsection (3) applies

(2) Subject to subsection (3), the amount applicable for an eligible care receiver is $600.

Reduced amount if instalment rate took account of a subsection 981(1) determination

Division 4—2007 one‑off payment to carers eligible for carer allowance

992WA 2007 one‑off payment to carers (carer allowance related)

(1) A person (the qualified person) is qualified for a 2007 one‑off payment to carers (carer allowance related) if the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(a) the instalment was in respect of a period that includes 8 May 2007;

(b) the reason why that instalment covered 8 May 2007 was not only because of clause 16 or 17 of Schedule 2 to the Administration Act;

(2) For the purposes of this Part, the instalment, or each instalment, in relation to which paragraphs (1)(a), (b) and (c) are satisfied is a qualifying instalment.

992WB Eligible care receivers

(1) Subject to subsection (2), each person to whose care a qualifying instalment relates is an eligible care receiver in relation to the qualified person.

992WC Amount of the one‑off payment

Add together the amounts applicable under this section for each eligible care receiver

(1) The amount of the one‑off payment to the qualified person is worked out by adding together the amounts applicable under this section for each eligible care receiver.

Amount is $600 unless subsection (3) applies

(2) Subject to subsection (3), the amount applicable for an eligible care receiver is $600.

Reduced amount if instalment rate took account of a subsection 981(1) determination

Division 5—2008 one‑off payment to carers eligible for carer allowance

992WD 2008 one‑off payment to carers (carer allowance related)

(1) A person (the qualified person) is qualified for a 2008 one‑off payment to carers (carer allowance related) if the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(a) the instalment was in respect of a period that includes 13 May 2008;

(b) the reason why that instalment covered 13 May 2008 was not only because of clause 16 or 17 of Schedule 2 to the Administration Act;

(2) For the purposes of this Part, the instalment, or each instalment, in relation to which paragraphs (1)(a), (b) and (c) are satisfied is a qualifying instalment.

992WE Eligible care receivers

(1) Subject to subsection (2), each person to whose care a qualifying instalment relates is an eligible care receiver in relation to the qualified person.

992WF Amount of the one‑off payment

Add together the amounts applicable under this section for each eligible care receiver

(1) The amount of the one‑off payment to the qualified person is worked out by adding together the amounts applicable under this section for each eligible care receiver.

Amount is $600 unless subsection (3) applies

(2) Subject to subsection (3), the amount applicable for an eligible care receiver is $600.

Reduced amount if instalment rate took account of a subsection 981(1) determination

Part 2.19B—Carer supplement

992X Carer supplement

Qualifying for carer supplement

(1) A person (the qualified person) is qualified for carer supplement for a year if the person was or is paid an instalment (the qualifying instalment) of carer allowance, carer payment or carer service pension in respect of a period that includes 1 July in the year.

Note: There may be more than one qualifying instalment for carer supplement for a year. For example, if a person is paid both an instalment of carer allowance and an instalment of carer payment in respect of a period including 1 July in the year, both instalments are qualifying instalments for carer supplement for the year for the person.

Amount of carer supplement

(2) The amount of carer supplement for the qualified person for the year is the total worked out in accordance with the table (taking account of every relevant item of the table):

Amount of carer supplement
Item	If:	Include this amount in the total:
1	The qualifying instalment is of carer allowance	The amount worked out under subsection (3) for each eligible care receiver (see subsections (4) and (5))
2	The qualifying instalment is of carer payment	$600
3	The qualifying instalment is of carer service pension	$600
5	Both of the following apply: (a) the qualifying instalment is of carer allowance; (b) the qualified person was or is also paid an instalment of partner service pension under the Veterans’ Entitlements Act in respect of a period that includes the day described in subsection (1) for the year	$600

Amount for eligible care receiver

(3) The amount for an eligible care receiver is:

(a) $600; or

(b) if the rate at which the qualifying instalment was paid takes account of a determination under subsection 981(1) of a particular share (being a percentage or proportion) in relation to the eligible care receiver—that share of $600.

Example 1: Assume that:

(a) the qualified person qualifies for carer supplement for 2010 because he or she is paid a qualifying instalment of carer allowance relating to 3 eligible care receivers; and

(b) the rate of the qualifying instalment takes account of a determination under subsection 981(1) of a half share in relation to one of those eligible care receivers; and

The amount of carer supplement for the qualified person for 2010 is $2,100, made up of $600 each for 2 of the eligible care receivers, $300 (which is half of $600) for the eligible care receiver to whom the half‑share determination relates and $600 relating to the partner service pension.

Example 2: Assume that the qualified person qualifies for carer supplement for 2011 because he or she is paid a qualifying instalment of carer allowance relating to one eligible care receiver and also because the qualifying person is paid a qualifying instalment of carer payment.

The amount of carer supplement for the qualified person for 2011 is $1,200, made up of $600 relating to carer allowance relating to the eligible care receiver and $600 relating to carer payment.

Effect of nil rates of carer payment, partner service pension and carer service pension

(3A) If:

(a) a person:

(i) is not paid an instalment of carer payment under this Act in respect of a period that includes 1 July in a year because the person’s rate of that payment in respect of that period is nil; or

(ii) is not paid an instalment of partner service pension or carer service pension under the Veterans’ Entitlements Act in respect of a period that includes 1 July in a year because the person’s rate of that pension in respect of that period is nil; and

(b) the person’s rate of that payment or pension in respect of that period is worked out having regard to an income test module of a rate calculator in this Act or the Veterans’ Entitlements Act; and

(i) if subparagraph (a)(i) applies—the person has employment income (within the meaning of this Act) in respect of that period; or

(ii) if subparagraph (a)(ii) applies—the person has employment income (within the meaning of section 46AB of the Veterans’ Entitlements Act) in respect of that period; and

(d) the person would have been paid an instalment of that payment or pension in respect of that period if all of the person’s income, and all of the person’s partner’s income (if any), in respect of that period were disregarded;

the person is taken, for the purposes of this section, to have been paid an instalment of that payment or pension in respect of that period.

Definition of eligible care receiver

(4) Each person to whose care a qualifying instalment of carer allowance relates is an eligible care receiver in relation to the qualified person.

(5) However, if subsection 953(2) applies in relation to a qualifying instalment, the 2 disabled children to whom the instalment relates are to be treated as if they were a single eligible care receiver in relation to the qualified person.

Definition of carer service pension

(6) In this section:

carer service pension means carer service pension that is payable because of subclause 8(2) or (4) of Schedule 5 to the Veterans’ Entitlements Act.

Part 2.20—Double orphan pension

Division 1—DOP child status

993 Double orphan—not refugee

(1) A young person is a double orphan if:

(a) the young person is not a refugee child; and

(b) each parent of the young person is dead.

Note 1: For young person and parent see section 5.

Note 2: For refugee child see section 995.

Note 3: If the young person does not qualify as a double orphan under this subsection, and the young person is a refugee child, the young person may qualify as a double orphan under section 994.

(2) A young person is a double orphan if:

(a) the young person is not a refugee child; and

(b) one parent of the young person is dead; and

(i) a long‑term prisoner; or

(ii) a mental hospital patient on a long‑term basis; or

(iii) in residential care on a long‑term basis; or

(iv) uncontactable.

Note 1: For young person and parent see section 5.

Note 2: For refugee child see section 995.

Note 3: For long‑term prisoner see section 996.

Note 4: For mental hospital patient on a long‑term basis, see subsection 997(1).

Note 4A: For in residential care on a long‑term basis, see subsection 997(2).

Note 5: For uncontactable see section 998.

(3) If a young person (other than an adopted child) is a relationship child of a person because he or she is a child of the person, and of another person, within the meaning of the Family Law Act 1975, the person and the other person are taken to be the young person’s only parents for the purposes of this section.

994 Double orphan—refugee

(1) A young person is a double orphan if:

(a) the young person is a refugee child; and

(b) one parent of the young person is:

(i) dead; or

(ii) living outside Australia; or

(iii) uncontactable; and

(i) dead; or

(ii) living outside Australia; or

(iii) uncontactable; or

(iv) a long‑term prisoner; or

(v) a mental hospital patient on a long‑term basis; or

(vi) in residential care on a long‑term basis.

Note 1: For young person and parent see section 5.

Note 2: For refugee child see section 995.

Note 3: For uncontactable see section 998.

Note 4: For long‑term prisoner see section 996.

Note 5: For mental hospital patient on a long‑term basis, see subsection 997(1).

Note 5A: For in residential care on a long‑term basis, see subsection 997(2).

(2) If a young person (other than an adopted child) is a relationship child of a person because he or she is a child of the person, and of another person, within the meaning of the Family Law Act 1975, the person and the other person are taken to be the young person’s only parents for the purposes of this section.

995 Refugee child

(1) A young person is a refugee child if:

(a) the young person is not an adopted child by virtue of an adoption under a law in force in a State or Territory of the Commonwealth; and

(b) the young person has not, at any time, lived in Australia with one or both of his or her parents; and

(i) has been granted refugee status by the Australian Government; or

(ii) has, at any time, been admitted into Australia as a refugee by the Australian Government; or

(iii) the young person has been, at any time, admitted into Australia in accordance with the terms of a special humanitarian program of the Australian Government that has been approved by the Minister for the purposes of this definition.

(2) An approval of a special humanitarian program for the purposes of subparagraph (1)(c)(iii) may be expressed to have retrospective effect to the date of the establishment of the program.

996 Long‑term prisoner

(1) For the purposes of this Division, a person is a long‑term prisoner if the person:

(a) has been convicted of an offence; and

(b) has been sentenced to imprisonment:

(i) for life; or

(ii) for a term of at least 10 years; and

(2) For the purposes of this Division, a person is a long‑term prisoner if:

(a) the person has been charged with an offence punishable by imprisonment for life or for a term of at least 10 years; and

(b) the person has not been convicted of the offence; and

(d) the person is not serving a sentence of imprisonment for life or for a term of 10 years or more imposed as a result of conviction of another offence.

997 Patient on a long‑term basis

Mental hospital patient

(1) For the purposes of this Division, a person is a mental hospital patient on a long‑term basis if:

(a) the person is a mental hospital patient; and

(b) the Secretary is satisfied that the person will require care and treatment for an indefinite period.

Note: For mental hospital patient see section 23.

Nursing home patient

(2) For the purposes of this Division, a person is in residential care on a long‑term basis if:

(a) the person is in residential care; and

(b) the Secretary is satisfied that the person will be in residential care for an indefinite period.

998 Person uncontactable

For the purposes of this Division, a person is uncontactable if the person’s whereabouts are not known to the person or approved care organisation claiming or receiving the double orphan pension concerned.

Division 2—Qualification for and payability of double orphan pension

999 Qualification for double orphan pension

Persons other than approved care organisations

(1) A person is qualified for a double orphan pension for a young person if:

(a) the young person is an FTB child of the person, or would be an FTB child of the person except that the young person, or someone on behalf of the young person, is receiving payments under a prescribed educational scheme; and

(b) the person is eligible for family tax benefit, or would be so eligible except that:

(i) the young person is not an FTB child of the person, but only because of the receipt of the payments referred to in paragraph (a); or

(ii) the person’s rate of family tax benefit, worked out under Division 1 of Part 4 of the Family Assistance Act, is nil; and

(d) either:

(i) the young person continues to be a double orphan; or

(ii) if the young person is no longer a double orphan, the person has not become aware that the young person is no longer a double orphan.

Approved care organisations

(2) An approved care organisation is qualified for a double orphan pension for a young person if:

(a) the organisation is eligible for family tax benefit for the young person, or would be eligible for family tax benefit for the young person except that the young person, or someone on behalf of the young person, is receiving payments under a prescribed education scheme; or

(b) on the day on which the organisation claims the double orphan pension, the young person is a double orphan; and

(i) the young person continues to be a double orphan; or

(ii) if the young person is no longer a double orphan—the organisation has not become aware that the young person is no longer a double orphan.

Note 1: For double orphan see sections 993 and 994.

Note 2: For approved care organisation see sections 6 and 35.

1003 Double orphan pension not payable for child receiving a pension under the Veterans’ Entitlements Act

(1) A double orphan pension is not payable for a child in relation to an instalment period for family tax benefit if the child is receiving a pension under Part II or IV of the Veterans’ Entitlements Act.

(2) In subsection (1):

instalment period for family tax benefit means a period that is an instalment period for the purposes of section 23 of the Family Assistance Administration Act.

Division 5—Rate of double orphan pension

1010 Rate of double orphan pension

(1) Subject to subsections (1A) to (3A), the rate of double orphan pension is a daily rate calculated by dividing $37.90 by 14.

(1A) If a person who is qualified for double orphan pension for a child has, under section 59 of the Family Assistance Act, a shared care percentage for the child, the rate of double orphan pension under subsection (1) is the person’s shared care percentage of the rate of double orphan pension that would otherwise apply under that subsection to the child.

Children who became double orphans before 1 July 2000

(2) If:

(a) a child became a double orphan before 1 July 2000; and

(b) the person who is qualified for double orphan pension for the child does not, under section 59 of the Family Assistance Act, have a shared care percentage for the child; and

(c) the current family tax benefit rate in respect of the child is less than the prior family allowance rate in respect of the child;

then the rate calculated under subsection (1) in relation to the child is increased by an amount equal to the difference between the prior family allowance rate and the current family tax benefit rate.

(2A) If:

(a) a child became a double orphan before 1 July 2000; and

(b) the person who is qualified for double orphan pension for the child has, under section 59 of the Family Assistance Act, a shared care percentage for the child; and

(c) the current family tax benefit rate in respect of the child is less than the shared care percentage of the prior family allowance rate in respect of the child;

then the rate calculated under subsections (1) and (1A) in relation to the child is increased by an amount equal to the difference between:

(d) the person’s shared care percentage of the prior family allowance rate; and

(e) the current family tax benefit rate.

Children who become double orphans on or after 1 July 2000

(3) If:

(a) a child becomes a double orphan on or after 1 July 2000; and

(b) the person who is qualified for double orphan pension for the child does not, under section 59 of the Family Assistance Act, have a shared care percentage for the child; and

(c) the current family tax benefit rate in respect of the child is less than the prior family tax benefit rate in respect of the child;

then the rate calculated under subsection (1) in relation to the child is increased by an amount equal to the difference between the prior family tax benefit rate and the current family tax benefit rate.

(3A) If:

(a) a child becomes a double orphan on or after 1 July 2000; and

(b) the person who is qualified for double orphan pension for the child has, under section 59 of the Family Assistance Act, a shared care percentage for the child; and

(c) the current family tax benefit rate in respect of the child is less than the shared care percentage of the prior family tax benefit rate in respect of the child;

then the rate calculated under subsections (1) and (1A) in relation to the child is increased by an amount equal to the difference between:

(d) the person’s shared care percentage of the prior family tax benefit rate; and

(e) the current family tax benefit rate.

(4) Subsections (2) and (3) do not have effect in relation to a child at any time at which double orphan pension in respect of the child is payable to an approved care organisation.

(5) In this section:

current family tax benefit rate, in relation to a child, means the rate represented by so much of an individual’s Part A rate of family tax benefit as relates to the child.

prior family allowance rate, in relation to a child, means the rate at which family allowance was payable in respect of the child immediately before the child became a double orphan.

prior family tax benefit rate, in relation to a child, means the rate represented by so much of an individual’s Part A rate of family tax benefit as related to the child immediately before the child became a double orphan.

Division 10—Bereavement payments (death of DOP child)

Subdivision A—Death of DOP child (General)

1033 Continued double orphan pension during bereavement rate continuation period where DOP child dies

If:

(a) a person is receiving double orphan pension for a young person; and

(b) the young person dies; and

(ii) the young person was an FTB child of the person; or

(iii) the person was receiving a service pension or income support supplement whose rate included:

(A) a dependent child add‑on for the young person; or

(B) guardian allowance in respect of the young person;

the person is to be qualified for double orphan pension for the young person during the bereavement rate continuation period as if the young person had not died.

1034 Lump sum payable in some circumstances

If:

(a) a person is qualified for double orphan pension under section 1033 in relation to the death of a DOP child; and

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

a lump sum (worked out using the lump sum calculator at the end of this section) is payable to the person.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the rate at which double orphan pension was payable immediately before the first available bereavement adjustment payday: the result is called the continued rate.

Step 2. Work out the number of the person’s paydays in the bereavement lump sum period.

Step 3. Multiply the continued rate by the number obtained in Step 2: the result is the amount of the lump sum payable to the person under this section.

Subdivision AA—Death of dependent child (special short‑term assistance)

1034AA Continuation of qualification for double orphan pension for 4 weeks in some cases where recipient’s DOP child dies

If:

(a) a person is receiving double orphan pension for a young person; and

(b) the young person dies; and

the person is to be qualified for double orphan pension, for the period of 4 weeks that starts on the day after the day on which the young person died, as if the young person had not died.

Subdivision B—Death of recipient

1034A Death of recipient

(1) If:

(a) a person is receiving a double orphan pension; and

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

(d) the person:

(i) was qualified at the time of the person’s death for payments under Subdivision A in relation to the death of a DOP child; or

(ii) would have been so qualified if the person had not died; and

(e) the person’s partner claims the payments referred to in paragraph (d) within 3 months after the death of the child;

there is payable to the partner an amount equal to the sum of the following amounts:

(f) the amount of double orphan pension that would have been payable to the person under section 1033 if the person had not died;

(g) any lump sum that would have been payable to the person under section 1034 if the person had not died.

(2) If:

(a) a person is receiving a double orphan pension; and

(b) the person is not a member of a couple; and

(d) the person:

(i) was qualified at the time of the person’s death for payments under Subdivision A in relation to the death of a DOP child; or

(ii) would have been so qualified if the person had not died;

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the sum of the following amounts:

(e) the amount of double orphan pension that would have been payable to the person under section 1033 if the person had not died; and

(f) any lump sum that would have been payable to the person under section 1034 if the person had not died.

Part 2.21—Mobility allowance

Division 1—Qualification for and payability of mobility allowance

1035 Qualification for mobility allowance (rate specified in subsection 1044(1))

(1) A person is qualified for a mobility allowance at the rate specified in subsection 1044(1) if the person satisfies the travel test set out in subsection (2) and:

(a) all of the following apply:

(i) the person is a handicapped person;

(ii) the person is engaged in gainful employment;

(iii) the Secretary is of the opinion that:

(A) the person is unable to use public transport without substantial assistance, either permanently or for an extended period; and

(B) the person’s inability to use public transport without substantial assistance is due to the person’s physical or mental disability; and

(iv) the person is an Australian resident; or

(b) all of the following apply:

(i) the person is a handicapped person;

(ii) the person is undertaking vocational training;

(iii) the Secretary is of the opinion that:

(A) the person is unable to use public transport without substantial assistance, either permanently or for an extended period; and

(B) the person’s inability to use public transport without substantial assistance is due to the person’s physical or mental disability; and

(iv) the person is an Australian resident; or

(i) the person is a handicapped person;

(ii) the person is receiving jobseeker payment, youth allowance or austudy payment;

(iii) the Secretary is of the opinion that:

(A) the person is unable to use public transport without substantial assistance, either permanently or for an extended period; and

(B) the person’s inability to use public transport without substantial assistance is due to the person’s physical or mental disability; and

(iv) if the person is receiving jobseeker payment—the person is required to satisfy the employment pathway plan requirements;

(iva) if the person is receiving youth allowance—the person is undertaking full‑time study (see section 541B) or is required to satisfy the employment pathway plan requirements;

(ivb) if the person is receiving austudy payment—the person is required to satisfy the activity test;

(v) the person is an Australian resident; or

(d) all of the following apply:

(i) the person is a handicapped person;

(ii) the Secretary is of the opinion that:

(A) the person is unable to use public transport without substantial assistance, either permanently or for an extended period; and

(B) the person’s inability to use public transport without substantial assistance is due to the person’s physical or mental disability; and

(C) the person is undertaking job search activities under an agreement between the Secretary and a service provider nominated by the Secretary;

(iii) the person is an Australian resident; or

(e) all of the following apply:

(i) the person is a handicapped person;

(ii) the Secretary is of the opinion that:

(A) the person is unable to use public transport without substantial assistance, either permanently or for an extended period; and

(B) the person’s inability to use public transport without substantial assistance is due to the person’s physical or mental disability; and

(C) the person is undertaking job search activities under the Competitive Employment Placement and Training Program administered by the Department;

(iii) the person is an Australian resident; or

(f) all of the following apply:

(i) the person is a handicapped person;

(ii) the Secretary is of the opinion that:

(A) the person is unable to use public transport without substantial assistance, either permanently or for an extended period; and

(B) the person’s inability to use public transport without substantial assistance is due to the person’s physical or mental disability; and

(iii) the person is an Australian resident; or

(g) all of the following apply:

(i) the person is a handicapped person;

(ii) the Secretary is of the opinion that:

(A) the person is unable to use public transport without substantial assistance, either permanently or for an extended period; and

(B) the person’s inability to use public transport without substantial assistance is due to the person’s physical or mental disability;

(iii) the Secretary is of the opinion that the person is undertaking a combination of any 2 or more of the following:

(A) gainful employment;

(B) vocational training;

for at least 32 hours in every 4 weeks on a continuing basis;

(iv) the person is an Australian resident; or

(h) all of the following apply:

(i) the person is a handicapped person;

(ii) the person is undertaking a vocational rehabilitation program;

(iii) the Secretary is of the opinion that:

(A) the person is unable to use public transport without substantial assistance, either permanently or for an extended period; and

(B) the person’s inability to use public transport without substantial assistance is due to the person’s physical or mental disability;

(iv) the person is an Australian resident.

(2) A person satisfies the travel test mentioned in subsection (1) if the person is required to travel to and from the person’s home for the purpose of undertaking:

(a) gainful employment; or

(b) vocational training; or

(d) voluntary work; or

(e) a vocational rehabilitation program.

(3) In this section:

vocational rehabilitation program means a rehabilitation program (or follow‑up program) under Part III of the Disability Services Act 1986 that provides a person with assistance to obtain or retain unsupported paid employment.

Note: A vocational rehabilitation program may include vocational training within the meaning of section 19.

vocational training means vocational training within the meaning of section 19 (other than training provided as part of a rehabilitation program or follow‑up program under Part III of the Disability Services Act 1986).

voluntary work means work approved by the Secretary undertaken in a voluntary capacity for charitable, welfare or community organisations.

1035A Qualification for mobility allowance (rate specified in subsection 1044(1A))

General principle

(1) A person is qualified for a mobility allowance at the rate specified in subsection 1044(1A) if:

(a) the person is a handicapped person; and

(b) the Secretary is of the opinion that the person is unable to use public transport without substantial assistance (either permanently or for an extended period) due to the person’s physical or mental disability; and

(d) the person satisfies one or more of subsections (2) to (9).

Disability support pension

(2) A person satisfies this subsection if:

(a) at a particular time, the person’s hours of work per week, on wages that are at or above the relevant minimum wage increase to at least 30 hours per week; and

(b) immediately before that time, the person was receiving disability support pension as a result of a claim made before 1 July 2006; and

(c) the person ceased to be qualified for disability support pension because of the increase in the number of hours worked; and

(d) since the time mentioned in paragraph (a), the person:

(i) has been working at least 30 hours per week on wages that are at or above the relevant minimum wage; and

(ii) has not received another income support payment; and

(e) the person is required to travel to and from the person’s home for the purpose of performing that work.

However, this subsection ceases to apply to a transitional DSP applicant from the date of effect of the first decision about the person’s capacity to perform work made on or after 1 July 2006 following a review of the person’s capacity to perform work.

(3) A person satisfies this subsection if:

(a) the person is receiving disability support pension; and

(b) one or both of the following applies to the person:

(i) the person is working for at least 15 hours per week on wages that are at or above the relevant minimum wage;

(ii) the person is undertaking job search activities under an agreement between the Secretary and the person, or an employment pathway plan that is in force in relation to the person, for work of at least 15 hours per week on wages that are at or above the relevant minimum wage; and

(c) if the person is working as mentioned in subparagraph (b)(i)—the person is required to travel to and from the person’s home for the purpose of performing the work; and

(d) if the person is undertaking job search activities as mentioned in subparagraph (b)(ii)—the person is required to travel to and from the person’s home for the purpose of undertaking those activities.

(4) A person satisfies this subsection if:

(a) subsection (2) does not apply (or has ceased to apply) to the person; and

(b) the person is working for at least 30 hours per week on wages that are at or above the relevant minimum wage; and

(d) the person ceased to be qualified for disability support pension because of the number of hours worked; and

(e) since starting that work, the person:

(i) has been working at least 30 hours per week on wages that are at or above the relevant minimum wage; and

(ii) has not received another income support payment; and

(f) the person is required to travel to and from the person’s home for the purpose of performing that work.

(5) A person satisfies this subsection if:

(a) subsection (2) does not apply (or has ceased to apply) to the person; and

(b) at a particular time, the person starts to earn income from work or the person’s income from work increases; and

(d) the disability support pension ceased to be payable to the person because the rate of the pension is nil due to the income, or increased income, the person earned from the work; and

(e) since the time mentioned in paragraph (b), the person has been working at least 15 hours per week on wages that are at or above the relevant minimum wage; and

(f) the person is required to travel to and from the person’s home for the purpose of performing that work; and

(g) since the time mentioned in paragraph (b), no income support payment has been payable to the person because the rate of the payment is nil due to the income, or increased income, the person has been earning from the work.

Jobseeker payment, youth allowance or parenting payment recipients

(6) A person satisfies this subsection if:

(a) the person:

(i) is receiving jobseeker payment; or

(ii) is receiving youth allowance, but is not undertaking full‑time study and is not a new apprentice; or

(iii) is receiving parenting payment; and

(b) one or both of the following applies to the person:

(i) the person is working for at least 15 hours per week on wages that are at or above the relevant minimum wage;

(c) if the person is working as mentioned in subparagraph (b)(i)—the person is required to travel to and from the person’s home for the purpose of performing the work; and

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

(7) A person satisfies this subsection if:

(a) at a particular time, the person starts to earn income from work or the person’s income from work increases; and

(b) immediately before that time, the person:

(i) was receiving jobseeker payment; or

(ii) was receiving youth allowance, but was not undertaking full‑time study and was not a new apprentice; or

(iii) was receiving parenting payment; and

(c) the jobseeker payment, youth allowance or parenting payment ceased to be payable to the person because the rate of the payment or allowance was nil due to the income, or increased income, the person earned from his or her work; and

(d) since the time mentioned in paragraph (a), the person has been working at least 15 hours per week on wages that are at or above the relevant minimum wage; and

(e) the person is required to travel to and from the person’s home for the purpose of performing that work; and

(f) since the time mentioned in paragraph (a), no income support payment has been payable to the person because the rate of the payment is nil due to the income, or increased income, the person has been earning from the work.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

Jobseeker payment, youth allowance, disability support pension and parenting payment recipients

(8) A person satisfies this subsection if:

(a) the person:

(i) is receiving jobseeker payment; or

(ii) is receiving youth allowance, but is not undertaking full‑time study and is not a new apprentice; or

(iii) is receiving disability support pension; or

(iv) is receiving parenting payment; and

(b) the person is working for at least 15 hours per week on wages set in accordance with the program administered by the Commonwealth known as the supported wage system; and

(c) the work is not performed by the person in the course of employment that is supported by supported employment services within the meaning of section 7 of the Disability Services Act 1986; and

(d) the person is required to travel to and from the person’s home for the purpose of performing the work.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

(9) A person satisfies this subsection if:

(a) at a particular time, the person starts to earn income from work or the person’s income from work increases; and

(b) immediately before that time, the person:

(i) was receiving jobseeker payment; or

(ii) was receiving youth allowance, but was not undertaking full‑time study and was not a new apprentice; or

(iii) was receiving disability support pension; or

(iv) was receiving parenting payment; and

(c) the jobseeker payment, youth allowance, disability support pension or parenting payment ceased to be payable to the person because the rate of the payment, allowance or pension was nil due to the income, or increased income, the person earned from his or her work; and

(d) since the time mentioned in paragraph (a), the person has been working:

(i) for at least 15 hours per week on wages set in accordance with the program administered by the Commonwealth known as the supported wage system; or

(ii) at least 15 hours per week on wages that are at or above the relevant minimum wage; and

(e) the work has not been performed by the person in the course of employment that is or was supported by supported employment services within the meaning of section 7 of the Disability Services Act 1986; and

(f) the person has been required to travel to and from the person’s home for the purpose of performing that work; and

(g) since the time mentioned in paragraph (a), no income support payment has been payable to the person because the rate of the payment is nil due to the income, or increased income, the person has been earning from the work.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

1036 Mobility allowance not payable at 2 rates

Mobility allowance at the rate specified in subsection 1044(1) is not payable to a person while mobility allowance at the rate specified in subsection 1044(1A) is payable to the person.

1037 Mobility allowance not payable where person receiving motor vehicle assistance

A mobility allowance is not payable to a person:

(a) if the person is provided with a motor vehicle under the Vehicle Assistance Scheme prepared under section 105 of the VEA—during any period during which the vehicle is provided; or

(aa) if the person is provided with a motor vehicle under the Motor Vehicle Compensation Scheme under section 212 of the MRCA—during any period during which the vehicle is provided.

Note: For VEA and MRCA see section 23.

1038 Mobility allowance not payable when person is NDIS participant

A mobility allowance is not payable to a person if:

(a) the person is an NDIS participant; and

(b) an NDIS plan is in effect for the NDIS participant; and

(c) the NDIS plan contains a statement specifying the reasonable and necessary supports that will be funded under the National Disability Insurance Scheme (within the meaning of the National Disability Insurance Scheme Act 2013).

1039AA Newly arrived resident’s waiting period

(1) Subject to this section, a person who:

(a) enters Australia; and

(b) has not been an Australian resident and in Australia for a period of, or periods totalling, 208 weeks;

is subject to a newly arrived resident’s waiting period.

(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a mobility allowance.

Note: For qualifying residence exemption in relation to mobility allowance, see paragraph 7(6AA)(f).

(4) Subsection (1) does not apply to a person who becomes a handicapped person while in Australia.

Note: For handicapped person see section 19.

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

(a) the person is a refugee, or a former refugee, at the time the person made the claim for a mobility allowance; or

(b) the following apply:

(i) before the person made the claim for a mobility allowance, the person was a family member of another person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the time the person made the claim for a mobility allowance or, if that other person has died, the person was a family member of that other person immediately before that other person died; or

(6) For the purposes of subsection (5):

(a) family member has the meaning given by subsection 7(6D); and

(b) former refugee has the meaning given by subsection 7(1); and

1039AB 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, 208 weeks.

Division 2—Rate of mobility allowance

1044 Rate of mobility allowance

(1AA) The rate of mobility allowance is a daily rate worked out by dividing the fortnightly rate by 14.

(1) The fortnightly rate of mobility allowance for a person who qualifies for the allowance under section 1035 is $50.50.

(1A) The fortnightly rate of mobility allowance for a person who qualifies for the allowance under section 1035A is $100.

(2) A person’s mobility allowance rate is nil if:

(a) the person has received mobility allowance advance under section 1045; and

(b) the person’s advance payment period has not ended.

Note: The rate of mobility allowance is indexed annually in line with CPI increases (see sections 1191 to 1194).

(3) In this section:

advance payment period, in relation to a person, means the period of:

(a) 26 weeks; or

(b) if section 1044A applies—such number of days as is provided for in that section;

that starts at the beginning of the advance entitlement period.

1044A Reduction of the advance payment period

(1) A person’s advance payment period is the period worked out using the following Method statement if:

(a) the person has received a mobility allowance advance; and

(b) the amount of the advance was calculated on the basis that the person qualified for mobility allowance under section 1035; and

(c) the person qualifies for mobility allowance under section 1035A, during the period of 26 weeks starting on the day on which the person qualified for the advance; and

(d) this section has not previously applied to the person in relation to the same advance.

Method statement

Step 1. Work out the number of days that, at the time of qualification under section 1035A, remain from the period of 26 weeks referred to in paragraph (c) (counting the day on which that qualification occurs as a whole day).

Step 2. Multiply the result under Step 1 by the amount worked out under the following formula:

$Start formula start fraction Rate of mobility allowance specified in subsection 1044(1) over Rate of mobility allowance specified in subsection 1044(1A) end fraction end formula$

If the result is not a whole number, round the result down to the next whole number.

Step 3. Subtract the result under Step 2 from the result under Step 1.

Step 4. Subtract the result under Step 3 from the number 182. The result is the number of days in the person’s advance payment period.

Division 3—Mobility allowance advance

1045 Qualification for mobility advance

(1) A person is qualified for a mobility allowance advance if:

(a) the person is receiving mobility allowance; and

(b) the person has requested the advance; and

(c) the Secretary is satisfied that the person will continue to be qualified for mobility allowance for at least 26 weeks from the day on which the person receives the advance; and

(d) if the person has previously received a mobility allowance advance, a period of not less than 12 months has elapsed since the person last received a mobility allowance advance.

(2) If a person has previously received a mobility allowance advance, a request is not effective for the purpose of paragraph (1)(b) if it was made within 11 months after the person received a mobility allowance advance.

(3) The amount of the advance is calculated by multiplying the mobility allowance rate by 13.

(4) For the purpose of subsection (3):

mobility allowance rate is the rate of mobility allowance on the advance payday.

Division 4—Continuation

1046 Continuation of mobility allowance when person ceases to be qualified

(1) This section applies to a person if:

(a) a mobility allowance at the rate specified in subsection 1044(1) is payable to a person; and

(b) the person would, apart from this section, cease to be qualified for the mobility allowance because he or she ceases, in the Secretary’s opinion:

(i) to undertake gainful employment, vocational training or voluntary work; or

(ii) to undertake a combination of any 2 or more of the following:

(A) gainful employment;

(B) vocational training;

for at least 32 hours in every 4 weeks on a continuing basis.

(2) This section applies to a person if:

(a) a mobility allowance at the rate specified in subsection 1044(1) is payable to a person; and

(b) the person would, apart from this section, cease to be qualified for the mobility allowance because he or she ceases, in the Secretary’s opinion:

(i) to receive jobseeker payment for a reason other than because the person ceases to satisfy the employment pathway plan requirements and other than the application of subsection 42AL(1), 42AO(1), 42AP(5), 42P(1) or 42S(1), or section 81, of the Administration Act; or

(ii) to receive youth allowance for a reason other than because the person ceases to satisfy the employment pathway plan requirements and other than the application of section 550B, 551 or 553B of this Act, or subsection 42AL(1), 42AO(1), 42AP(5), 42P(1) or 42S(1), or section 81, of the Administration Act; or

(iii) to receive an austudy payment for a reason other than the application of section 569 or 576 of this Act or section 81 of the Administration Act; or

(vi) to undertake a vocational rehabilitation program.

(2A) This section applies to a person if:

(a) a mobility allowance is payable to a person at the rate specified in subsection 1044(1A); and

(b) the person would, apart from this section, cease to be qualified for the mobility allowance because he or she ceases, in the Secretary’s opinion, to satisfy one or more of subsections 1035A(2), (3), (4), (5), (6), (7), (8) and (9).

(2B) This section applies to a person if:

(a) a mobility allowance is payable to a person at the rate specified in subsection 1044(1A) because the person satisfies one or both of subsections 1035A(6) and (7); and

(b) the person would, apart from this section, cease to be qualified for the mobility allowance because he or she ceases, in the Secretary’s opinion:

(iia) to receive parenting payment for a reason other than the application of section 500J of this Act, or subsection 42AL(1), 42AO(1), 42AP(5), 42P(1) or 42S(1), or section 81, of the Administration Act; or

(iii) to undertake job search activities, under an agreement between the Secretary and a service provider nominated by the Secretary, for work of at least 15 hours per week on wages that are at or above the relevant minimum wage.

(3) A person to whom this section applies continues to be qualified for the mobility allowance for 12 weeks after the person would, apart from this section, have ceased to be qualified for the mobility allowance.

(4) If:

(a) a mobility allowance is payable to a person; and

(b) the person would, apart from this section, cease to be qualified for the allowance because of circumstances other than those described in subsections (1), (2), (2A) and (2B);

the person continues to be qualified for the mobility allowance for 2 weeks after the person would, apart from this section, have ceased to be qualified for the mobility allowance.

(5) If:

(a) a mobility allowance is payable to a person because of subsection (3); and

(b) circumstances occur that would, if the person were still qualified for the allowance, result in the person ceasing to be qualified;

the mobility allowance ceases to be payable to the person on the day on which those circumstances occur.

(6) In this section:

Note: A vocational rehabilitation program may include vocational training within the meaning of section 19.

vocational training means vocational training within the meaning of section 19 (other than vocational training provided as part of a rehabilitation program or follow‑up program under Part III of the Disability Services Act 1986).

voluntary work means work approved by the Secretary undertaken in a voluntary capacity for charitable, welfare or community organisations.

Part 2.21A—Language, literacy and numeracy supplement

Division 1—Preliminary

1047 Definition

In this Part:

designated social security payment means:

(a) disability support pension; or

(d) parenting payment; or

(g) youth allowance.

Division 2—Qualification for language, literacy and numeracy supplement

1048 General statement of qualification

A person is qualified to receive a language, literacy and numeracy supplement in respect of a fortnight if:

(a) the person is receiving a designated social security payment in respect of that fortnight; and

(b) the Secretary is satisfied that, on a day during that fortnight, the person was attending a course included in the language, literacy and numeracy program administered by the Department of State responsible for education and training.

Division 3—Circumstances where language, literacy and numeracy supplement not payable

1049 Language, literacy and numeracy supplement not payable in certain circumstances

(1) Language, literacy and numeracy 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.

(2) Language, literacy and numeracy supplement is not payable to a person in respect of a fortnight if an approved program of work supplement is payable to the person in respect of that fortnight.

(3) Language, literacy and numeracy supplement is not payable to a person in respect of a fortnight in relation to attendance at a second or subsequent language, literacy or numeracy course in that fortnight.

(4) For the avoidance of doubt, language, literacy and numeracy supplement is payable in respect of a person’s attendance at a language, literacy or numeracy course whether that attendance is voluntary or is required under the provisions of, or of an agreement made under, any other provision of this Act.

Division 4—Rate increase relating to language, literacy and numeracy supplement

1050 Rate increase attributable to language, literacy and numeracy supplement

If a person:

(a) is qualified to receive language, literacy and numeracy supplement in respect of a fortnight; and

(b) nothing in section 1049 precludes the payability of that supplement to that person in respect of that fortnight;

the rate of the person’s designated social security payment in respect of that fortnight, worked out under Chapter 3 and taking account of any rate reduction provided for in this Act, is increased by $20.80, being the fortnightly rate of the supplement.

Part 2.22—Advance payments of social security entitlements

Division 1—Qualification for advance payment

1061A Qualification for advance payment

Qualifications

(1) Subject to this section, a person is qualified for an advance payment of a social security entitlement only if:

(a) the social security entitlement is payable to the person; and

(b) the person has been receiving an income support payment for a continuous period of 3 months immediately before the day on which the person’s application for the advance payment is lodged; and

(d) the Secretary is satisfied that the person will not suffer financial hardship from reductions in instalments of the social security entitlement as a result of receiving the advance payment.

Note 1: Other provisions of this Act deal with advances of social security payments that are not social security entitlements. For example, Division 3 of Part 2.21 deals with mobility allowance advance and Part 2.23 deals with advance pharmaceutical allowance.

Note 2: For income support payment and social security entitlement see subsection 23(1).

Note 3: For the determination of the continuous period in respect of which a person received an income support payment see section 38B.

(2) The Secretary may, by legislative instrument, determine that paragraph (1)(b) does not apply to a person who has applied for an advance of youth allowance or austudy payment and the determination has effect accordingly.

Disqualification—age and disability support pensions and carer payment

(3) A person is not qualified for an advance payment of an age pension, disability support pension or carer payment if:

(a) the maximum amount of advance payment to which the person would be entitled under Division 4 is less than 1/52 of the person’s advance payment qualifying amount; or

(b) the amount of an advance payment of a social security entitlement that the person received in full (whether as a single lump sum or in instalments) more than 12 months ago has not been fully repaid; or

(c) the person owes a debt to the Commonwealth (whether arising under this Act or not) that is recoverable under Part 5.2 by means of deductions from the person’s social security payment.

The amount worked out under paragraph (a) must be rounded to the nearest cent (rounding 0.5 cents upwards).

Note 1: Paragraph (a) does not prevent payment of an advance payment in instalments of less than the amount worked out under that paragraph.

Note 2: For advance payment qualifying amount, see subsection 23(1).

Disqualification—other social security entitlements

(4) A person is not qualified for an advance payment of a social security entitlement not covered by subsection (3) if:

(a) the maximum amount of advance payment to which the person would be entitled under Division 4 is less than $250; or

(b) the person has received an advance payment, or an instalment of an advance payment, of a social security entitlement and has not fully repaid the advance payment; or

(c) the person has received the amount of an advance payment in a single lump sum, or has received the first instalment of such an amount, on or after 1 January 1997, and the period of 12 months from the day the lump sum or instalment was paid has not elapsed; or

(d) the person owes a debt to the Commonwealth (whether arising under this Act or not) that is recoverable under Part 5.2 by means of deductions from the person’s social security payment.

Note: Paragraph (a) does not prevent payment of an advance payment in instalments of less than $250.

(5) Paragraph (4)(c) does not apply to a person:

(a) who is receiving a pension PP (single); and

(b) who applies for an advance payment within the period of 28 days after ceasing to be a member of a couple.

(6) Paragraph (4)(d) does not apply to a person if:

(a) the debt the person owes to the Commonwealth arose as a result of the person’s parenting payment rate changing from benefit PP (partnered) to pension PP (single); and

(b) the amount of the debt is smaller than the amount of advance payment to which the person would be entitled under Division 4.

Division 2—Applying for advance payment

1061B Application

A person who wants an advance payment of a social security entitlement under this Part must apply for the advance payment in accordance with this Division.

1061C Form of application

(1) The application must be in writing and must be in accordance with a form approved by the Secretary.

(2) The application must specify the amount of advance payment sought.

1061D Lodgment of application

(1) The application must be lodged:

(a) at an office of the Department; or

(b) at a place approved for the purpose by the Secretary; or

(2) A place or person approved under subsection (1) must be a place or person in Australia.

(3) The applicant must be in Australia when the application is lodged.

1061E Application may be withdrawn

(1) An applicant for an advance payment or a person acting on behalf of an applicant may withdraw an application that has not been determined.

(2) An application that is withdrawn is taken not to have been lodged.

(3) A withdrawal may be made orally or in writing.

Division 3—Determination of application and payment of advance payment

1061EA Secretary to determine application

(1) The Secretary must determine the application in accordance with this Act.

(2) The Secretary must grant the application if the Secretary is satisfied that the person is qualified for the advance payment.

1061EB Payment of advance payment

(1) Subject to subsection (3), if the application is granted, the advance payment of the social security entitlement is to be paid on the next day on which the person is paid an instalment of the social security entitlement.

(2) Subject to subsection (3), the advance payment is to be paid as a single lump sum.

(3) The Secretary may determine that:

(a) an advance payment is to be paid on the day specified in the determination; or

(b) an advance payment is to be paid in the two instalments specified in the determination on the days specified in the determination.

Division 4—Amount of advance payment

1061ECA Amount of advance payment—age and disability support pensions and carer payment

Application

(1) The amount of an advance payment of any of the following social security pensions is worked out according to this section:

(a) age pension;

(b) disability support pension;

(d) carer payment.

Amount of advance

(2) The amount of the advance payment is the smaller of the following amounts:

(a) the amount of advance payment sought;

(b) the maximum amount of advance payment payable to the person as worked out as follows:

Method statement

Step 1. Work out 3/52 of the person’s advance payment qualifying amount.

Step 2. Work out the annual rate at which the social security pension was payable to the person on the last payday before the application for the advance payment was lodged, disregarding:

(a) any amount payable by way of remote area allowance; and

(b) so much of the person’s pension supplement amount (if any) as is equal to the person’s minimum pension supplement amount; and

Step 3. Work out the smaller of the result of step 1 and 7.5% of the result of step 2.

Step 4. Subtract the following from the result of step 3:

(a) each advance payment (if any) of a social security entitlement paid to the person during any of the 13 fortnights immediately before the application for the current advance payment was lodged;

(b) each other advance payment (if any) of a social security entitlement paid to the person that has not been fully repaid.

Step 5. The result of step 4 (rounded to the nearest cent (rounding 0.5 cents upwards)) is the maximum amount of advance payment payable to the person.

Note 1: The amount of the advance payment will be more than the minimum qualifying amount for the person (see paragraph 1061A(3)(a)).

Note 2: For advance payment qualifying amount, see subsection 23(1).

1061ED Amount of advance payment—pension PP (single)

Application

(1) The amount of an advance payment of pension PP (single) is worked out according to this section.

Amount of advance

(2) The amount of the advance payment is the smallest of the following amounts:

(a) the amount of advance payment sought;

(b) the maximum amount of advance payment payable to the person as worked out under subsection (3);

Note: The amount of the advance payment will be at least $250 (see paragraph 1061A(4)(a)).

Formula for maximum amount of advance under paragraph (2)(b)

(3) For the purposes of paragraph (2)(b), the maximum amount of advance payment payable to the person is the amount worked out using the following formula:

where:

annual payment rate means:

(a) if the person was receiving pension PP (single) on the last payday before the application for the advance payment was lodged—the rate at which the pension was payable under the Pension PP (Single) Rate Calculator to the person on that payday, disregarding any amount payable by way of remote area allowance; or

(b) if the person was receiving benefit PP (partnered) on the last payday before the application for the advance payment was lodged—the rate at which pension PP (single) is payable to the person under the Pension PP (Single) Rate Calculator on the person’s first pension PP (single) payday after the application for the advance payment was lodged, disregarding any amount payable by way of remote area allowance.

Rounding

(4) Amounts worked out under subsection (3) must be rounded to the nearest cent (rounding 0.5 cents upwards).

Example:

Facts: Geoff has, at all times during the past 5 months, been receiving pension PP (single). His annual payment rate is $4,680. He applies for an advance payment of $290.

Application: The maximum amount of advance payment payable to Geoff is worked out under subsection (3) as follows: 6%  $4680 = $280.80. This is the smallest of the 3 amounts referred to in subsection (2). Geoff can therefore be paid an advance payment of $280.80.

1061EE Amount of advance payment—certain other social security payments

Application

(1) The amount of an advance payment of benefit PP (partnered), youth allowance, austudy payment or jobseeker payment is worked out according to this section.

Amount of advance

(2) The amount of the advance payment is the smallest of the following amounts:

(a) the amount of advance payment sought;

(b) the maximum amount of advance payment payable to the person as worked out under subsection (4);

Note: The amount of the advance payment will be at least $250 (see paragraph 1061A(4)(a)).

Formula for maximum amount of advance: benefit PP (partnered), youth allowance, austudy payment or jobseeker payment

(4) For the purpose of paragraph (2)(b), the maximum amount of advance payment of benefit PP (partnered), youth allowance, austudy payment or jobseeker payment payable to the person is the amount worked out under the following formula:

Rounding

(5) Amounts worked out under subsection (4) must be rounded to the nearest cent (rounding 0.5 cents upwards).

Meaning of fortnightly payment rate

(6) For the purposes of the formula in subsection (4):

fortnightly payment rate means:

(a) in relation to benefit PP (partnered)—the fortnightly rate of that benefit payable under the Benefit PP (Partnered) Rate Calculator to the person on the last payday before the application for the advance payment was lodged, excluding any amount payable by way of remote area allowance; or

(b) in relation to jobseeker payment—the fortnightly rate of that benefit payable under Benefit Rate Calculator B to the person on the last payday before the application for the advance payment was lodged, excluding any amount payable by way of remote area allowance; or

(c) in relation to youth allowance—the fortnightly rate of that benefit payable under the Youth Allowance Rate Calculator to the person on the last payday before the application for the advance payment was made, excluding any amount payable by way of remote area allowance; or

(d) in relation to austudy payment—the fortnightly rate of that benefit payable under the Austudy Payment Rate Calculator to the person on the last payday before the application for the advance payment was made, excluding any amount payable by way of remote area allowance.

Division 5—Payment of advance payment

1061EI Advance payment to be paid to person or nominee

(1) Subject to subsection (3), an advance payment of a person’s social security entitlement is to be paid to that person.

(2) The Secretary may direct that the whole or part of the advance payment of a person’s social security entitlement is to be paid to someone else on behalf of the person.

(3) If the Secretary makes a direction under subsection (2), the advance payment is to be paid in accordance with the direction.

1061EJ Payment into bank account etc.

(1) An amount that is to be paid to a person under section 1061EI may only be paid in accordance with this section.

(2) Subject to this section, the amount is to be paid, at the time or times worked out under section 1061EB, to the credit of a bank account nominated and maintained by the person.

(3) The account may be an account that is maintained by the person either alone or jointly or in common with another person.

(4) Where the person has not nominated an account for the purposes of subsection (2), then, subject to subsections (5) and (7), the amount is not to be paid.

(5) Where:

(a) an amount has not been paid because of subsection (4); and

(b) the person nominates an account for the purposes of subsection (2);

the amount is to be paid under subsection (2).

(6) The Secretary may direct that the whole or a part of the amount be paid to the person in a different way from that provided for by subsection (2).

(7) If the Secretary gives a direction under subsection (6), the amount is to be paid in accordance with the direction.

Division 6—Protection of advance payment

1061EK Advance payment to be absolutely inalienable

Inalienability

(1) Subject to subsections (2) and (3) and section 238 and Parts 3B and 3D of the Administration Act, an advance payment under this Part is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

Note: The effect of a garnishee order on an advance payment of a social security entitlement is dealt with in the Part of this Chapter that deals with that social security entitlement. For example, the effect of a garnishee order on an advance payment of age pension is dealt with in Part 2.2 (which deals with age pension).

Payments to Commissioner of Taxation at recipient’s request

(2) The Secretary may make deductions from an advance payment payable to a person under this Part if the recipient asks the Secretary:

(a) to make the deductions; and

(b) to pay the amounts to be deducted to the Commissioner of Taxation.

Deductions from advance payment with recipient’s consent

(3) The Secretary may make deductions from an advance payment payable to a person under this Part if the recipient consents under section 1234A to the Secretary making the deductions.

Note: Section 1234A enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a social security payment.

Division 7—Repayment of advance payment

1061EL Repayment of advance payment

(1) If a person receives an advance payment or an instalment of an advance payment under this Part, the person must repay the advance payment or instalment to the Commonwealth by one or more of the following methods:

(a) deductions from the person’s social security entitlement under Chapter 3 (General provisions relating to payability and rates);

(b) a method provided for by Chapter 5 (Overpayments and debt recovery);

(c) a method (other than a method described in paragraph (a) or (b)) that is acceptable to both the person and the Secretary.

(2) Subsection (1) does not affect:

(a) the operation of subsection 1224E(1) (Debts arising from advance payments of social security entitlements); or

(b) the Secretary’s powers and duties under Part 5.4 (Non‑recovery of debts) if the amount of the advance payment or instalment that has not been repaid becomes a debt due to the Commonwealth.

Part 2.22A—Special employment advances

Division 1—Qualification for special employment advance

1061EM Qualification for special employment advance

(1) Subject to section 1061EO, a person is qualified for a special employment advance at a particular time (the relevant time) only if:

(a) the person is qualified for a special employment advance qualifying entitlement at the relevant time; and

(b) the person has been receiving an income support payment for a continuous period of 3 months immediately before the day on which the person’s claim for the special employment advance is made; and

(i) the person or, if the person is a member of a couple, the person’s partner has earned from casual work in Australia, but has not received, income (the unreceived income);

(ii) the Secretary is satisfied that the person has received a definite offer of employment in Australia (the offered employment) for a period of not less than 6 weeks and needs financial assistance from the Commonwealth to enable him or her to take up the employment; and

(d) subsection (2) or (3), as the case requires, applies for the purpose of determining whether the person is qualified for a special employment advance at the relevant time; and

(e) where subparagraph (c)(i) applies—the person is in severe financial hardship; and

(f) the Secretary is satisfied that the person will not suffer financial hardship as a result of the recovery by the Commonwealth of the special employment advance.

(2) This subsection applies for the purpose of determining whether a person is qualified for a special employment advance at the relevant time only where:

(a) the person’s claim for the advance was based on the effect of the unreceived income on the person’s special employment advance qualifying entitlement; and

(i) if the person were qualified for the special employment qualifying entitlement on the next payday for the entitlement at a rate equal to the maximum basic rate of the entitlement, the rate of the entitlement on that payday would be reduced by at least 50% as a result of the person or the person’s partner having earned the unreceived income;

(ii) subparagraph (i) does not apply in respect of the person but, if the person were qualified for the special employment qualifying entitlement on 2 or more paydays for the entitlement at a rate equal to the maximum basic rate of the entitlement, the average of the rates of the entitlement on those paydays would be reduced by at least 50% as a result of the person or the person’s partner having earned the unreceived income.

(3) This subsection applies for the purpose of determining whether a person is qualified for a special employment advance at the relevant time only where the person’s claim for the advance was based on the person’s need for financial assistance from the Commonwealth to enable him or her to take up the offered employment and:

(a) if the person were qualified for the special employment qualifying entitlement on each of the paydays for the entitlement that occur in the period of 6 weeks referred to in subparagraph (1)(c)(ii) at a rate equal to the maximum basic rate of the entitlement, the average of the rates of the entitlement on those paydays:

(i) would be reduced by at least 50% as a result of the person having taken up the offered employment; or

(ii) would be so reduced if Module J of the Youth Allowance Rate Calculator in section 1067G or Module E of the Austudy Payment Rate Calculator were disregarded; or

(b) the person would cease to be qualified for the special employment advance qualification upon his or her taking up the offered employment.

1061EN Meaning of in severe financial hardship

For the purposes of paragraph 1061EM(1)(e) as it applies to a person who makes a claim for special employment advance, the person is in severe financial hardship if:

(a) where the person is not a member of a couple—the value of the person’s liquid assets (within the meaning of subsection 14A(1)) is less than the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the person; or

(b) where the person is a member of a couple—the value of the person’s liquid assets (within the meaning of subsection 14A(2)) is less than twice the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the person.

1061EO Person not qualified in certain circumstances

A person is not qualified for a special employment advance if:

(b) the lump sum amount, or the total of the amounts of the instalments, as the case may be, of the special employment advance to which the person would be entitled under Division 4 is less than $50; or

(c) the person owes a debt to the Commonwealth (whether arising under this Act or not) and the debt is recoverable under Part 5.2 by means of deductions from the person’s social security payment; or

(d) where subparagraph 1061EM(1)(c)(ii) applies in respect of the person—the person is participating in a program for the placing of people in employment and the program has been declared by the Secretary, by legislative instrument, to be a program to which this paragraph applies.

Division 4—Amount of special employment advance

1061EW Where claim based on effect of unreceived income on special employment advance qualifying entitlement

(1) This section applies where the claim was based on the effect of the unreceived income on the claimant’s special employment advance qualifying entitlement.

(2) The total amount of the special employment advance payable to the claimant is to be the smallest of the following amounts:

(a) the amount sought in the claim for the advance;

(b) the amount by which the instalment, or the sum of the amounts by which the instalments, of the claimant’s special employment advance qualifying entitlement is or will be reduced because of the unreceived income;

(d) if an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth—the difference between that amount and $500.

1061EX Where claim based on claimant’s need for financial assistance to take up offered employment

(1) This section applies where the claim was based on the claimant’s need for financial assistance to take up offered employment.

(2) Subject to the following provisions of this section, the total amount of the special employment advance payable to the claimant is to be the smallest of the following amounts:

(a) the amount sought in the claim for the advance;

(b) the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;

(3) If:

(a) an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth; and

(b) the sum of:

(i) the amount referred to in paragraph (a); and

(ii) the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;

is not more than $500;

the total amount of the special employment advance payable to the claimant is the amount referred to in subparagraph (b)(ii).

(4) If:

(a) an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth; and

(b) the sum of:

(i) the amount referred to in paragraph (a); and

(ii) the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;

is more than $500;

the following paragraphs have effect:

(c) where the amount referred to in paragraph (a) is less than $500 and the claimant satisfies the Secretary that the claimant would have sufficient financial resources to enable him or her to take up the offered employment if the total amount of the special employment advance payable were an amount equal to the difference between $500 and the amount referred to in paragraph (a)—the total amount of the special employment advance payable to the claimant is an amount equal to that difference;

(d) where paragraph (c) does not apply—no amount of special employment advance is payable to the claimant.

(5) If:

(a) the claimant is not a member of a couple; and

(b) the value of the claimant’s liquid assets (within the meaning of subsection 14A(1)) exceeds the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the claimant;

the total amount of the special employment advance that, apart from this subsection, would be payable to the claimant under subsections (2) to (4) is reduced by the amount of the excess.

(6) If:

(a) the claimant is a member of a couple; and

(b) the value of the claimant’s liquid assets (within the meaning of subsection 14A(2)) exceeds twice the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the claimant;

the total amount of the special employment advance that, apart from this subsection, would be payable to the claimant under subsections (2) to (4) is reduced by the amount of the excess.

Division 7—Repayment of special employment advance

1061EZC Repayment of special employment advance

(1) If a person receives a special employment advance or an instalment of a special employment advance under this Part, the person must repay the special employment advance or instalment to the Commonwealth by one or more of the following methods:

(a) deductions from the person’s special employment advance qualifying entitlement under Chapter 3 (General provisions relating to payability and rates);

(b) a method provided for by Chapter 5 (Overpayments and debt recovery);

(c) a method (other than a method described in paragraph (a) or (b)) that is acceptable to both the person and the Secretary.

(2) Subsection (1) does not affect the Secretary’s powers and duties under Part 5.4 (Non‑recovery of debts) if the amount of the special employment advance or instalment that has not been repaid becomes a debt due to the Commonwealth.

Part 2.23—Advance pharmaceutical allowance

Division 1—Qualification for and payability of advance pharmaceutical allowance

1061F Qualification for advance pharmaceutical allowance

(1) A person is qualified for an advance pharmaceutical allowance if:

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

(b) the Secretary is satisfied that the person’s ordinary income is not more than $20.50 per fortnight.

(2) For the purposes of this section, a person’s ordinary income does not include:

(a) a payment:

(i) that the person is entitled to under the law of a foreign country; and

(ii) that results in the person’s social security pension rate being reduced by an amount equal to the amount of the payment; or

(b) a periodic compensation payment to which Part 3.14 applies.

(3) For the purposes of this section, if a person is a member of a couple the amount of the person’s ordinary income is worked out by adding the couple’s ordinary incomes (on a fortnightly basis) and dividing by 2.

1061G Advance pharmaceutical allowance not payable in some circumstances

(1) Even though a person is qualified for an advance pharmaceutical allowance, the allowance is not payable to the person if the person is not an Australian resident.

(3) Even though a person is qualified for an advance pharmaceutical allowance, the allowance is not payable to the person if pharmaceutical allowance is not used to work out the rate of the person’s social security pension.

Division 3—Amount of advance pharmaceutical allowance

1061JC Amount of advance pharmaceutical allowance

Subject to section 1061JD, the amount of a person’s advance pharmaceutical allowance is:

$Start formula start fraction pharmaceutical allowance rate times 7 over 26 end fraction end formula$

where:

pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance that would be added to the person’s maximum basic rate if a pharmaceutical allowance advance were not being paid to the person.

Note: Pharmaceutical rates are to be found at:

(d) point 1066A‑D8 of Pension Rate Calculator D;

(e) point 1066B‑D8 of Pension Rate Calculator E;

(f) point 1068A‑C7 of Pension PP (Single) Rate Calculator.

1061JD Annual limit

The amount paid to a person in a calendar year by way of:

(a) pharmaceutical allowance; and

(b) advance pharmaceutical allowance;

is not to exceed the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Part 2.23A—Crisis payment

Division 1—Qualification for crisis payment

1061JG Qualification—release from gaol or psychiatric confinement

(1) A person is qualified for a crisis payment if, after the commencement of this section:

(a) the person spends at least 14 days in gaol, or in psychiatric confinement that starts because he or she has been charged with an offence, and is released so that he or she is neither in gaol nor in psychiatric confinement; and

(b) the person claims the crisis payment either while the person was in gaol or psychiatric confinement, or within 7 days after being released; and

(c) on the day on which the claim for the crisis payment is made (including the day on which it is taken to have been made under Schedule 2 to the Administration Act):

(i) the person is qualified for a social security pension or social security benefit; and

(ii) the person is in severe financial hardship (see section 19D).

Note: A person does not cease to be in gaol merely because he or she is transferred between a prison and a psychiatric institution where he or she is lawfully detained while still under sentence. See subsection 23(5).

(2) Disregard subsection 23(9) in determining whether a person meets the condition in paragraph (1)(a) of this section.

Note: Subsection 23(9) provides that the confinement of a person in a psychiatric institution when the person is undertaking a course of rehabilitation is not to be taken to be psychiatric confinement.

1061JH Qualification—extreme circumstances forcing departure from home

(1) A person is qualified for a crisis payment if, after the commencement of this section:

(a) the person has left, or cannot return to, his or her home because of an extreme circumstance; and

(b) the extreme circumstance makes it unreasonable to expect the person to remain in, or return to, the home; and

(d) at the time the extreme circumstance occurred, the person was in Australia; and

(e) the person makes a claim for a crisis payment within 7 days after the extreme circumstance occurred; and

(f) on the day on which the claim is made:

(i) the person is in severe financial hardship (see section 19D); and

(ii) the person has made a claim (whether on the same day or on an earlier day) for a social security pension or benefit and the person is qualified for the pension or benefit; and

(g) during the 12 months immediately preceding the day on which the claim is made, no more than 3 crisis payments have been payable to the person based on:

(i) the qualifications set out in this section; or

(ii) the qualifications set out in section 1061JHA (remaining in home after removal of family member due to domestic or family violence).

Note: Examples of extreme circumstances that would qualify a person for crisis payment are the person’s house being burnt down, or the person being subjected to domestic or family violence.

(2) A person is not qualified for a crisis payment in respect of an extreme circumstance if the Secretary is satisfied that the extreme circumstance is brought about with a view to obtaining a crisis payment.

1061JHA Qualification—remaining in home after removal of family member due to domestic or family violence

(1) A person is qualified for a crisis payment if:

(a) the person has been subjected to domestic or family violence, in Australia, by a family member of the person; and

(b) at the time of the domestic or family violence the person was living with that family member; and

(d) the person remains living in the person’s home after the family member leaves or is removed; and

(e) the person’s home is in Australia; and

(f) the person makes a claim for a crisis payment within 7 days after the day on which the family member left or was removed; and

(g) on the day on which the claim is made:

(i) the person is in severe financial hardship (see section 19D); and

(ii) the person has made a claim (whether on the same day or on an earlier day) for a social security pension or benefit and the person is qualified for the pension or benefit; and

(h) during the 12 months immediately preceding the day on which the claim is made, no more than 3 crisis payments have been payable to the person based on:

(i) the qualifications set out in this section; or

(ii) the qualifications set out in section 1061JH (extreme circumstances forcing departure from home).

Note: For family member see subsection 23(14).

(2) A person is not qualified for a crisis payment if the Secretary is satisfied that the family member left the person’s home with a view to the person obtaining a crisis payment.

1061JI Qualification—humanitarian entrant to Australia

(1) A person is qualified for a crisis payment if:

(a) the person arrives in Australia; and

(b) that arrival is the first time the person has arrived in Australia as the holder of a qualifying humanitarian visa (see subsection (2)); and

(d) on the day on which the claim is made:

(i) the person is in severe financial hardship (see section 19D); and

(ii) the person has made a claim (whether on the same day or on an earlier day) for a social security pension or benefit and the person is qualified for the pension or benefit.

(2) The Minister may, by legislative instrument, specify visas that are qualifying humanitarian visas for the purposes of paragraph (1)(b).

1061JIA Qualification—national health emergency

(1) A person is qualified for a crisis payment if:

(a) on the day on which the claim for the crisis payment is made:

(i) the person has made a claim (whether on the same day or on an earlier day) for a social security pension or benefit; and

(ii) the person is qualified for the pension or benefit; and

(b) the person satisfies the requirements determined in an instrument under subsection (2).

(2) The Minister may, by legislative instrument, determine requirements for the purposes of paragraph (1)(b). The Minister must be satisfied that the requirements relate to a national health emergency.

(3) Without limiting subsection (2), the requirements may depend on the Secretary being satisfied of one or more specified matters.

1061JJ Crisis payment not payable in addition to disaster relief payment

(1) A crisis payment is not payable to a person in respect of an extreme circumstance if the person is qualified for an AGDRP, a Disaster Recovery Allowance or other disaster relief payment (whether under this Act or otherwise) in respect of the same extreme circumstance.

(2) However, this section does not affect a person’s entitlement to a crisis payment in respect of an extreme circumstance if:

(a) the person has claimed the crisis payment; and

(b) the person subsequently qualifies for an AGDRP, a Disaster Recovery Allowance or other disaster relief payment in respect of the same extreme circumstance.

1061JK Crisis payment not payable if assurance of support in force

A person is not qualified for a crisis payment if the Secretary is satisfied that at the time the person would otherwise have been qualified for crisis payment:

(a) an assurance of support was in force in respect of the person (the assuree); and

(b) the person who gave the assurance of support was willing and able to provide an adequate level of support to the assuree; and

Note: For assurance of support see subsection 23(1).

1061JL Person not qualified for crisis payment if qualified for crisis payment under ABSTUDY scheme

A person is not qualified for a crisis payment under section 1061JG, 1061JH, 1061JHA, 1061JI or 1061JIA in respect of a circumstance if the Secretary is satisfied that:

(a) the person is qualified under the ABSTUDY scheme for a crisis payment in respect of that same circumstance; and

(b) the crisis payment is payable under that scheme in respect of that circumstance.

Division 4—Amount of crisis payment

1061JU Amount of payment

(1) The amount of a crisis payment payable to a person is half the fortnightly amount at the maximum basic rate of the social security pension or social security benefit that is payable to the person.

(4) In this section:

maximum basic rate, in relation to each of the following social security payments, means (unless otherwise stated below) the rate worked out at Module B of the relevant Rate Calculator:

(a) for the following pensions if the recipient is not blind:

(i) age pension;

(ii) disability support pension (recipient has turned 21, or is under 21 and has one or more dependent children);

(iii) carer pension;

the Rate Calculator at the end of section 1064; or

(b) for age pension and disability support pension (recipient has turned 21, or is under 21 and has one or more dependent children) if the recipient is blind—the Rate Calculator at the end of section 1065; or

(d) for disability support pension if the recipient is under 21, is not blind and does not have any dependent children—the Rate Calculator at the end of section 1066A; or

(e) for disability support pension if the recipient is under 21, is blind and does not have any dependent children—the Rate Calculator at the end of section 1066B; or

(f) for jobseeker payment—the Rate Calculator at the end of section 1068; or

(h) for a pension PP (single)—the Rate Calculator at the end of section 1068A; or

(i) for benefit PP (partnered)—Module C of the Rate Calculator at the end of section 1068B; or

(k) for special benefit—section 746; or

(l) for youth allowance—the Rate Calculator at the end of section 1067G; or

(m) for austudy payment—Step 3 of the Method statement in Module A of the Rate Calculator at the end of section 1067L.

Note: For dependent child see section 5.

Part 2.23B—Disaster Recovery Allowance

Division 1—Qualification for Disaster Recovery Allowance

1061KA Qualification for Disaster Recovery Allowance

(1) A person is qualified for a Disaster Recovery Allowance if:

(a) the person is at least 16 years of age; and

(b) the person:

(i) is an Australian resident; or

(ii) is the holder of a visa that is in a class of visas determined by the Minister for the purposes of subparagraph 729(2)(f)(v); and

(d) if the person is under 22 years of age—the Secretary is satisfied that subsection (2) of this section does not apply in relation to the person; and

(e) the Secretary is satisfied that subsection (3) or (4) of this section applies in relation to the person; and

(f) the Secretary is satisfied that the person has suffered a loss of income as a direct result of the event; and

(g) the person is not receiving a social security entitlement; and

(h) the person is not receiving a payment prescribed in an instrument under subsection (5) of this section; and

(i) the Secretary is satisfied that the person satisfies the requirements (if any) prescribed in an instrument under subsection (6) of this section; and

(j) the person’s rate of Disaster Recovery Allowance, worked out under section 1061KC, is greater than nil at the time the claim for payment of Disaster Recovery Allowance is determined by the Secretary.

Qualification rule for persons under 22 years of age

(2) This subsection applies in relation to a person if:

(a) on the day of the determination under subsection 36A(1), the person is wholly or substantially dependent on another person (except the person’s partner); and

(b) on that day, the person is not a parent of another person; and

Qualification rule if affected industries and areas

(3) This subsection applies in relation to a person if:

(a) under paragraph 36A(5)(a), the Minister specifies, in a determination under section 36A, one or more industries affected by the event and one or more areas affected by the event; and

(b) the person earns, derives or receives income from one of those industries and the person does so by working in one of those areas.

Qualification rule if affected areas only

(4) This subsection applies in relation to a person if:

(a) under paragraph 36A(5)(b), the Minister specifies, in a determination under section 36A, one or more areas affected by the event; and

(b) either or both of the following apply:

(i) the person earns, derives or receives income from one of those areas and the person does so by working in one of those areas;

(ii) the person resides in one of those areas.

Legislative instruments

(5) The Minister may, in writing, prescribe payments for the purposes of paragraph (1)(h).

(6) The Minister may, in writing, prescribe requirements for the purposes of paragraph (1)(i).

(7) An instrument made under subsection (5) or (6) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the instrument.

1061KB Disaster Recovery Allowance not payable if assurance of support in force

A person is not qualified for a Disaster Recovery Allowance if the Secretary is satisfied that at the time the person would otherwise have been so qualified:

(a) an assurance of support was in force in respect of the person (the assuree); and

(b) the person who gave the assurance of support was willing and able to provide an adequate level of support to the assuree; and

Note: For assurance of support see subsection 23(1).

Division 2—Rate of Disaster Recovery Allowance

1061KC Rate of Disaster Recovery Allowance

(1) The rate of a person’s Disaster Recovery Allowance is a daily rate. That rate is worked out by dividing the fortnightly rate worked out in accordance with an instrument under subsection (2) by 14.

(2) The Minister must, by legislative instrument, specify a method for working out the fortnightly rate of Disaster Recovery Allowance for the purposes of subsection (1).

(3) That fortnightly rate may be nil.

Maximum rates

(4) For a person who is under 22 years of age, that fortnightly rate is not to exceed the maximum basic rate of youth allowance that would be payable to the person if:

(a) the person were qualified for youth allowance; and

(b) youth allowance were payable to the person.

(5) For a person who is at least 22 years of age, that fortnightly rate is not to exceed the maximum basic rate of jobseeker payment that would be payable to the person if:

(a) the person were qualified for jobseeker payment; and

(b) jobseeker payment were payable to the person.

Division 3—Other matters

1061KD Period that Disaster Recovery Allowance is payable

A person’s Disaster Recovery Allowance is payable to the person for a period of 13 weeks.

1061KE Non‑receipt of social security payment

(1) This section applies for the purposes of a provision of this or another Act if:

(a) the provision provides a benefit (whether the benefit is a pension, benefit, payment, supplement or any other sort of benefit) if a person meets specified criteria; and

(b) one of the specified criteria is that the person is receiving a social security payment, or is a recipient of a social security payment.

Part 2.24—Australian Government Disaster Recovery Payment

Division 1—Qualification for Australian Government Disaster Recovery Payment

1061K Qualification for Australian Government Disaster Recovery Payment

(1) A person is qualified for an Australian Government Disaster Recovery Payment if:

(a) the person is at least 16 years old, or is receiving a social security payment; and

(b) the person:

(i) is an Australian resident; or

(ii) is the holder of a visa that is in a class of visas determined by the Minister for the purposes of subparagraph 729(2)(f)(v); or

(iii) is receiving a social security payment; or

(iv) is an Australian citizen who is not an Australian resident and who is covered by a determination under subsection (2); and

Note 1: For Australian resident see section 7.

Note 2: For adversely affected see section 1061L.

Note 3: For major disaster see section 36.

(2) The Minister may determine in writing that a specified class of Australian citizens who are not Australian residents can qualify for an AGDRP.

Note: For Australian resident see section 7.

(3) A determination made under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.

(4) A person cannot be qualified for more than one AGDRP in relation to the same major disaster.

1061L Meaning of adversely affected

(1) For the purposes of this Act, a person is adversely affected by a major disaster if the person is affected by the disaster in a way determined by the Minister in relation to the disaster.

(2) The Minister may determine in writing, in relation to a major disaster, the circumstances in which persons are to be taken to be adversely affected by the disaster.

(3) A determination made under this section is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.

Division 2—Amount of Australian Government Disaster Recovery Payment

1061M Amount of payment for disasters in Australia

(1) The amount of an AGDRP payable to a person in relation to a major disaster that occurs in Australia is the sum of:

(a) the adult rate for the financial year in which the major disaster is declared under section 36; and

(b) if the person is the principal carer of one or more children—the amount worked out by multiplying the child rate for that financial year by the number of children for whom the person is the principal carer.

Note 1: For major disaster see section 36.

Note 2: For principal carer see subsections 5(15) to (24).

(2) For the purposes of this Division, the adult rate for a financial year is:

(a) the amount that the Minister determines under subsection 1061P(1) to be the adult rate for the financial year; or

(b) if the Minister has not determined an adult rate for the financial year—the amount that the Minister last determined to be the adult rate for a previous financial year; or

(3) For the purposes of this Division, the child rate for a financial year is:

(a) the amount that the Minister determines under subsection 1061P(2) to be the child rate for the financial year; or

(b) if the Minister has not determined a child rate for the financial year—the amount that the Minister last determined to be the child rate for a previous financial year; or

1061N Amount of payment for disasters outside Australia

The amount of an AGDRP payable to a person in relation to a major disaster that occurs outside Australia is the sum of:

(a) the amount that the Minister determines under subsection 1061P(4) in relation to the disaster; and

(b) if the person is the principal carer of one or more children—the amount worked out by multiplying the amount that the Minister determines under subsection 1061P(5) in relation to the disaster by the number of children for whom the person is the principal carer.

Note 1: For major disaster see section 36.

Note 2: For principal carer see subsections 5(15) to (24).

1061P Determinations of rates

(1) The Minister may determine in writing for the purposes of subsection 1061M(2) the adult rate for a financial year.

(2) The Minister may determine in writing for the purposes of subsection 1061M(3) the child rate for a financial year.

(3) A determination under subsection (1) or (2) must be made in the financial year preceding the year to which the determination relates.

(4) The Minister may determine in writing for the purposes of paragraph 1061N(a) an amount not exceeding the adult rate for the financial year in which the determination is made.

(5) The Minister may determine in writing for the purposes of paragraph 1061N(b) an amount not exceeding the child rate for the financial year in which the determination is made.

(6) A determination made under this section is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.

Division 3—Recoverable payments etc.

1061PAAA Recoverable payments

(1) If, apart from this subsection, the Commonwealth does not have power under the social security law to pay an amount (the relevant amount) to a person (the recipient) purportedly as an Australian Government Disaster Recovery Payment, then the Commonwealth may pay the relevant amount to the recipient.

Recovery

(2) If a payment is made under subsection (1) to the recipient, the relevant amount:

(a) is a debt due to the Commonwealth by the recipient; and

(b) may be recovered by the Secretary, on behalf of the Commonwealth, in a court of competent jurisdiction.

1061PAAB Recoverable death payments

(1) If, apart from this subsection, the Commonwealth does not have power under the social security law to pay an amount (the relevant amount) in any of the following circumstances:

(a) the relevant amount is deposited to an account kept in the name of a deceased person;

(b) the relevant amount is deposited to an account kept in the names of a deceased person and another person;

the Commonwealth may pay the relevant amount in the circumstances mentioned in paragraph (a), (b) or (c), so long as:

(d) on the last day on which changes could reasonably be made to the payment of the relevant amount, no Department official knew that the deceased person had died; and

(e) apart from this subsection, the relevant amount would have been payable as an Australian Government Disaster Recovery Payment to the deceased person if the deceased person had not died.

Note: For Department official, see section 1061PAAE.

(2) If a payment is made under subsection (1), the relevant amount is taken to have been paid to the deceased person’s estate.

Recovery

(3) If a payment is made under subsection (1), the relevant amount:

(a) is a debt due to the Commonwealth by the legal personal representative of the deceased person; and

(b) may be recovered by the Secretary, on behalf of the Commonwealth, in a court of competent jurisdiction.

1061PAAC Reports about recoverable payments and recoverable death payments

(1) During the applicable publication period for a reporting period, the Secretary must cause to be published, in such manner as the Secretary thinks fit, a report that sets out:

(a) both:

(i) the number of payments made under subsection 1061PAAA(1) during the reporting period; and

(ii) the total amount of those payments; and

(b) both:

(i) the number of payments made under subsection 1061PAAB(1) during the reporting period; and

(ii) the total amount of those payments.

(2) However, a report is not required if:

(a) the number mentioned in subparagraph (1)(a)(i) is zero; and

(b) the number mentioned in subparagraph (1)(b)(i) is zero.

Deferred reporting

(3) Paragraph (1)(a) of this section does not require a report to deal with a payment unless, before the preparation of the report, a Department official was aware the payment was made under subsection 1061PAAA(1).

Note: For Department official, see section 1061PAAE.

(4) Paragraph (1)(b) of this section does not require a report to deal with a payment unless, before the preparation of the report, a Department official was aware the payment was made under subsection 1061PAAB(1).

Note: For Department official, see section 1061PAAE.

(5) For the purposes of this section, if:

(a) a payment was made under subsection 1061PAAA(1) or 1061PAAB(1) in a reporting period; and

(b) either:

(i) because of subsection (3) of this section, paragraph (1)(a) of this section did not require a report to deal with the payment; or

(ii) because of subsection (4) of this section, paragraph (1)(b) of this section did not require a report to deal with the payment; and

(c) during a later reporting period, a Department official becomes aware that the payment was made under subsection 1061PAAA(1) or 1061PAAB(1), as the case may be;

the payment is subject to a deferred reporting obligation in relation to the later reporting period.

Note: For Department official, see section 1061PAAE.

(6) If one or more payments made under subsection 1061PAAA(1) during a reporting period are subject to a deferred reporting obligation in relation to a later reporting period, the Secretary must, during the applicable publication period for the later reporting period:

(a) prepare a report that sets out:

(i) the number of those payments; and

(ii) the total amount of those payments; and

(iii) the reporting period during which the payments were made; and

(b) if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

(7) If one or more payments made under subsection 1061PAAB(1) during a reporting period are subject to a deferred reporting obligation in relation to a later reporting period, the Secretary must, during the applicable publication period for the later reporting period:

(a) prepare a report that sets out:

(i) the number of those payments; and

(ii) the total amount of those payments; and

(iii) the reporting period during which the payments were made; and

(b) if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

Reporting period

(8) For the purposes of this section, a reporting period is:

(a) a financial year; or

(b) if a shorter recurring period is prescribed in an instrument under subsection (9)—that period.

(9) The Minister may, by legislative instrument, prescribe a recurring period for the purposes of paragraph (8)(b).

Applicable publication period

(10) For the purposes of this section, the applicable publication period for a reporting period is the period of:

(a) 4 months; or

(b) if a lesser number of months is prescribed, in relation to the reporting period, in an instrument under subsection (11)—that number of months;

beginning immediately after the end of the reporting period.

(11) The Minister may, by legislative instrument, prescribe a number of months, in relation to a reporting period, for the purposes of paragraph (10)(b).

1061PAAD Review of decisions

Part 4 of the Social Security (Administration) Act 1999 does not apply to a decision under this Division.

1061PAAE Department official

For the purposes of this Division, Department official means a person:

(a) who:

(i) is an official (within the meaning of the Public Governance, Performance and Accountability Act 2013) of the Department; or

(ii) is a Departmental employee (within the meaning of the Human Services (Centrelink) Act 1997); and

(b) whose duties consist of, or include, matters relating to Australian Government Disaster Recovery Payments.

Part 2.24AA—Australian Victim of Terrorism Overseas Payment

Division 1—Qualification for Australian Victim of Terrorism Overseas Payment

1061PAA Qualification for Australian Victim of Terrorism Overseas Payment

Qualification for AVTOP

(1) A person is qualified for an Australian Victim of Terrorism Overseas Payment if:

(a) the person is a primary victim or a secondary victim of a declared overseas terrorist act; and

(b) the person and the person’s close family members were not involved in the commission of the terrorist act; and

(i) is an Australian resident on the day the terrorist act occurred; or

(ii) is covered by a determination under subsection (6).

Note: For declared overseas terrorist act see section 35B.

Meaning of primary victim

(2) A person is a primary victim of a declared overseas terrorist act if the person:

(a) was in the place where the terrorist act occurred; and

(b) was harmed (within the meaning of the Criminal Code) as a direct result of the terrorist act.

Meaning of secondary victim

(3) A person is a secondary victim of a declared overseas terrorist act if the person is a close family member of a person who:

(a) was in the place where the terrorist act occurred; and

(b) died, before the end of 2 years starting on the day the terrorist act occurred, as a direct result of the terrorist act.

Meaning of close family members

(4) The following are a person’s close family members:

(a) the person’s partner;

(b) the person’s child;

(d) the person’s sibling;

(e) the person’s legal guardian.

Meaning of involved

(5) A person was involved in the commission of a declared overseas terrorist act if the person:

(a) aided, abetted, counselled or procured the terrorist act; or

(b) induced the terrorist act, whether through threats or promises or otherwise; or

(d) conspired with others to effect the terrorist act.

Ministerial determination

(6) The Minister may, by legislative instrument, determine a specified class of persons for the purposes of subparagraph (1)(c)(ii).

1061PAB Whether a person can be qualified for more than one AVTOP in relation to the same terrorist act

Only one AVTOP for primary victim as primary victim

(1) A person cannot be qualified as a primary victim for more than one AVTOP in relation to the same declared overseas terrorist act.

Only one AVTOP for secondary victims for same family member

(2) A person cannot be qualified as a secondary victim for more than one AVTOP in relation to the same close family member.

When victims can qualify for more than one AVTOP

(3) A person can be qualified for more than one AVTOP in relation to the same declared overseas terrorist act if the person:

(a) is a primary victim and a secondary victim of the terrorist act (whether as a secondary victim in relation to one, or more than one, close family member); or

(b) is a secondary victim of the terrorist act in relation to more than one close family member.

Division 2—Payability of Australian Victim of Terrorism Overseas Payment to secondary victims

1061PAC When AVTOP for secondary victims is not payable

If:

(a) a person makes a claim for an AVTOP as a secondary victim in relation to a close family member who has died as a direct result of a declared overseas terrorist act; and

(b) either:

(i) before the claim was made, one or more persons were granted an AVTOP as secondary victims in relation to the close family member; or

(ii) the Secretary had notified the person under subsection 35B(2) of the Administration Act of the person’s entitlement to make a claim, but the person did not make the claim before the day specified in the notice;

then the AVTOP is not payable to the person.

Division 3—Amount of Australian Victim of Terrorism Overseas Payment

1061PAD Amount of AVTOP for a primary victim

(1) The Secretary must determine the amount of an AVTOP payable to a person who is a primary victim of a declared overseas terrorist act.

(2) The determination must be made in accordance with subsection (3) and the AVTOP Principles under section 1061PAF.

(3) The amount must not exceed $75,000.

1061PAE Amount of AVTOP for a secondary victim

Secretary to determine amount of AVTOP

(1) The Secretary must determine the amount of an AVTOP (the relevant AVTOP) payable to a person who is a secondary victim in relation to a close family member who has died as a direct result of a declared overseas terrorist act.

(2) The determination must be made in accordance with subsections (3) to (5) and the AVTOP Principles under section 1061PAF.

(3) The amount must not exceed $75,000.

Limit on total payments in relation to close family member

(4) If the person is not the only secondary victim who has made a claim as a secondary victim in relation to the close family member, then, when working out the amount of the relevant AVTOP, the Secretary must ensure that the sum of all the AVTOPs (including the relevant AVTOP) that are paid in relation to the close family member does not exceed $75,000.

Limit on total payments to secondary victim

(5) If:

(a) the person is also a secondary victim of the terrorist act in relation to one or more other close family members; and

(b) an AVTOP has been paid to the person in relation to any of those other family members;

then, when working out the amount of the relevant AVTOP, the Secretary must ensure that the sum of all the AVTOPs (including the relevant AVTOP) that are paid to the person as a secondary victim of the terrorist act does not exceed $75,000.

1061PAF AVTOP Principles

(1) The Minister must, by legislative instrument, determine the principles (the AVTOP Principles) to be applied for the purposes of determining the amount of an AVTOP payable to a person in relation to a declared overseas terrorist act.

(2) Without limiting subsection (1), the AVTOP Principles may provide that the following factors are to be taken into account when determining the amount of the payment:

(a) for a primary victim:

(i) the nature of the injury or disease suffered as a direct result of the terrorist act; and

(ii) the duration of the injury or disease; and

(iii) the impact of the injury or disease on the person’s bodily and mental functions; and

(iv) the impact of the injury or disease on the person’s life; and

(v) the likelihood of the person suffering future loss, injury or disease as a direct result of the terrorist act; and

(vi) the circumstances in which the injury or disease was incurred; and

(vii) whether the person was directed by an official of Australia or a foreign country not to go to the place where the terrorist act occurred;

(b) for a secondary victim in relation to a close family member who has died:

(i) whether the person was dependant on the close family member; and

(ii) the nature of the relationship between the person and the close family member; and

(iii) the circumstances in which the close family member died; and

(iv) whether the close family member was directed by an official of Australia or a foreign country not to go to the place where the terrorist act occurred; and

(v) whether there are other persons who have made a claim for an AVTOP as a secondary victim in relation to the close family member; and

(vi) if there are such other secondary victims and the person and each of the other secondary victims agree on the amount of the AVTOP that each should be paid—that agreement; and

(vii) if there are such other secondary victims and the person and each of the other secondary victims have not agreed on the amount of the AVTOP that each should be paid—whether the person has also made a claim as a secondary victim of the terrorist act in relation to another close family member;

(i) whether there was travel advice on an Australian government website advising against travelling to the foreign country, region or place where the terrorist act occurred; and

(ii) whether the person has been paid or is likely to be paid an amount by the Commonwealth, a State, a Territory, a foreign country or any other person or entity in relation to the terrorist act.

(3) The AVTOP Principles may specify circumstances in which the amount of an AVTOP is nil.

Division 4—Other

1061PAG Consultation on the AVTOP Principles

(1) Before determining the AVTOP Principles under section 1061PAF, the Minister must consult with representatives of the following groups (the consultation groups):

(a) victims of overseas terrorist acts and their families;

(b) community or welfare organisations;

(d) international humanitarian agencies;

(e) any other persons the Minister considers appropriate to consult.

(2) The Minister must also consult representatives of the consultation groups each year after the year in which the AVTOP Principles commence.

(3) A failure to consult as required by this section does not affect the validity of the AVTOP Principles.

1061PAH AVTOP is not compensation or damages

For the purposes of any law of the Commonwealth, a payment of AVTOP is not to be treated as being a payment of compensation or damages.

Part 2.24A—Pensioner education supplement

Division 1—Qualification for pensioner education supplement

Subdivision A—The basic rules

1061PA Qualification for pensioner education supplement

A person is qualified for a pensioner education supplement if the person:

(a) is undertaking qualifying study (see Subdivision B); and

(b) is receiving a payment attracting pensioner education supplement (see Subdivision C); and

(d) meets the residency requirements under Subdivision E.

Note: Division 2 sets out situations in which pensioner education supplement is not payable even if the person qualifies for it.

Subdivision B—Undertaking qualifying study

1061PB Undertaking qualifying study

General

(1) For the purposes of this Part, a person is undertaking qualifying study if the Secretary is satisfied that:

(a) the person:

(i) is enrolled in a course of education at an educational institution; or

(ii) was enrolled in the course and satisfies the Secretary that he or she intends, and has (since no longer being enrolled) always intended, to re‑enrol in the course when re‑enrolments in the course are next accepted; or

(iii) was enrolled in the course and satisfies the Secretary that he or she intends, and has (since no longer being enrolled) always intended, to enrol in another course of education (at the same or a different educational institution) when enrolments in the other course are next accepted; and

(b) the course in which the person is enrolled, or intends to enrol, is an approved course of education or study (see section 1061PC); and

(c) the person is a full‑time student or a concessional study‑load student in respect of that course (see sections 1061PD and 1061PE); and

(d) the person satisfies the progress rules (see sections 1061PH and 1061PI).

Persons not undertaking qualifying study

(2) A person is not undertaking qualifying study if the person:

(a) is employed on a full‑time basis as an apprentice or trainee under an industrial instrument or the National Employment Standards, and has a training agreement (however described) with a training authority (by whatever name called) of a State or Territory; or

(b) has completed a course for:

(i) a degree of Master or Doctor at an educational institution; or

(ii) a qualification at a foreign institution that is, in the Secretary’s opinion, of the same standing as a degree of Master or Doctor at an educational institution.

Note: For educational institution see subsection 23(1).

Taken to be undertaking qualifying study from 1 January

(3) For the purpose of subsection (1), a person is taken to have been undertaking qualifying study from 1 January in a particular year if:

(a) the person is enrolled in a course of education that is a full year course starting before 1 April in that year; and

(b) the person starts his or her full year course before that day; and

(i) the person did not undertake full‑time or part‑time study for the whole, or a part, of the immediately preceding semester (excluding vacations); or

(ii) the person did not undertake full‑time or part‑time study for more than one semester (excluding vacations) during the immediately preceding 12 months and the Secretary is satisfied that this was due to the person’s illness or to other circumstances beyond the person’s control.

Taken to be undertaking qualifying study from 1 July

(4) For the purpose of subsection (1), a person is taken to have been undertaking qualifying study from 1 July in a particular year if:

(a) the person is enrolled in a course of education that is a full year course starting on or after 1 July in that year; and

(b) the person starts his or her full year course on or after that day; and

(i) the person did not undertake full‑time or part‑time study for the whole, or a part, of the immediately preceding semester (excluding vacations); or

Taken to be undertaking qualifying study until 31 December

(5) For the purpose of subsection (1), a person is taken to be undertaking qualifying study until the end of 31 December in a particular year if:

(a) the person completes his or her course of education after 15 September but before 31 December in that year; and

(b) the person’s course of education is a full year course or a late starting course.

Industrial instruments

(6) In paragraph (2)(a):

industrial instrument means an award, determination or agreement (however described) that:

(a) is made under or recognised by a law of the Commonwealth or of a State or Territory that:

(i) regulates the relationships between employers and employees; or

(ii) provides for the prevention or settlement of disputes between employers and employees; and

(b) concerns the relationship between an employer and the employer’s employees, or provides for the prevention or settlement of a dispute between an employer and the employer’s employees.

National Employment Standards has the same meaning as in the Fair Work Act 2009.

1061PC Approved course of education or study

For the purposes of paragraph 1061PB(1)(b), a course is an approved course of education or study if it is a course determined, under section 5D of the Student Assistance Act 1973, to be a secondary course or a tertiary course for the purposes of that Act.

1061PD Full‑time students

For the purposes of this Subdivision, a person is a full‑time student in respect of a course if:

(a) in the case of a person who is enrolled in the course for a particular study period (such as, for example, a semester)—the person is undertaking at least three quarters of the normal amount of full‑time study in respect of the course for that period; or

(b) in the case of a person who intends to enrol in the course for a particular study period—the person intends to undertake at least three quarters of the normal amount of full‑time study in respect of the course for that period.

Note: For normal amount of full‑time study see section 1061PF.

1061PE Concessional study‑load students

(1) For the purposes of this Subdivision, there are 2 classes of concessional study‑load students, namely:

(a) 25% concessional study‑load students; and

(b) 66% concessional study‑load students.

(2) For the purposes of this Subdivision, a person is a 25% concessional study‑load student in respect of a course if this subsection applies to the person and:

(a) in the case of a person who is enrolled in the course for a particular study period (such as, for example, a semester)—the person is undertaking at least one quarter, but less than three quarters, of the normal amount of full‑time study in respect of the course for that period; or

(b) in the case of a person who intends to enrol in the course for a particular study period—the person intends to undertake at least one quarter, but less than three quarters, of the normal amount of full‑time study in respect of the course for that period.

(3) For the purposes of this Subdivision, a person is a 66% concessional study‑load student in respect of a course if this subsection applies to the person and:

(a) in the case of a person who is enrolled in the course for a particular study period (such as, for example, a semester)—the person is undertaking at least two thirds, but less than three quarters, of the normal amount of full‑time study in respect of the course for that period; or

(b) in the case of a person who intends to enrol in the course for a particular study period—the person intends to undertake at least two thirds, but less than three quarters, of the normal amount of full‑time study in respect of the course for that period.

Note: For normal amount of full‑time study see section 1061PF.

(4) Subsection (2) applies to a person if:

(a) an officer in the Commonwealth Rehabilitation Service or an appropriate medical practitioner who has a detailed knowledge of the person’s physical condition has stated in writing that:

(i) the person has a substantial physical disability; and

(ii) the person cannot successfully undertake the normal amount of full‑time study in respect of the course because of the disability; or

(b) a medical practitioner specialising in psychiatry has stated in writing that:

(i) the person has a substantial psychiatric disability; and

(ii) the person cannot successfully undertake the normal amount of full‑time study in respect of the course because of the disability; or

(i) has an intellectual disability; and

(ii) cannot successfully undertake the normal amount of full‑time study in respect of the course because of the disability; or

(d) the person is receiving:

(i) a disability support pension, a carer payment, a pension PP (single), a youth allowance or a jobseeker payment under this Act; or

(ii) an invalidity service pension or a carer service pension under the Veterans’ Entitlements Act; or

(e) the person has a dependent child aged less than 16 years and:

(ii) is a sole parent and is receiving a special benefit under this Act; or

(iv) is receiving a pension under Part II of the Veterans’ Entitlements Act; or

(v) is receiving pension under Part IV of the Veterans’ Entitlements Act; or

(vi) has received, or is entitled to receive, compensation for permanent impairment under section 68, 71 or 75 of the Military Rehabilitation and Compensation Act; or

(vii) is receiving a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act; or

(viii) is receiving, or has received, the weekly amount mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act (including a reduced weekly amount because of a choice under section 236 of that Act) or a lump sum mentioned in subsection 236(5) of that Act.

(5) Subsection (3) applies to a person if:

(a) the person cannot undertake the course as a full‑time student because of:

(i) the relevant educational institution’s usual requirements for the course; or

(ii) a specific direction in writing to the person from the academic registrar or an equivalent officer; or

(b) the academic registrar (or an equivalent officer) of the relevant educational institution recommends in writing that the person undertake less than the normal amount of full‑time study in respect of the course for specified academic or vocational reasons for a period not exceeding half an academic year.

1061PF Normal amount of full‑time study

(1) For the purposes of this Subdivision, the normal amount of full‑time study in respect of a course is:

(a) if:

(i) the course is a course of study within the meaning of the Higher Education Support Act 2003; and

(ii) there are Commonwealth supported students (within the meaning of that Act) enrolled in the course;

the full‑time student load for the course; or

(b) if the course is not such a course and the institution defines an amount of full‑time study that a full‑time student should typically undertake in respect of the course—the amount so defined; or

(c) otherwise—an amount of full‑time study equivalent to the average amount of full‑time study that a person would have to undertake for the duration of the course in order to complete the course in the minimum amount of time needed to complete it.

(2) Without limiting subsection (1), the normal amount of full‑time study in respect of a course is an average, taken over the duration of the period for which the person in question is enrolled in the course, of 20 contact hours per week.

1061PG First fortnight of classes

A person is taken to be undertaking full‑time study or a concessional study‑load (as the case may be) in respect of a course during the period (the relevant period):

(a) starting on the first day of classes in a study period; and

(b) ending on the Friday of the second week of classes in the study period;

if the person is enrolled in the course and undertakes study in respect of the course on at least one day in the relevant period.

1061PH Progress rules—secondary students

General rule

(1) Subject to subsection (2), a person enrolled in, or intending to enrol in, a secondary course satisfies the progress rules for the purposes of paragraph 1061PB(1)(d) if, in the Secretary’s opinion, the person is making satisfactory progress towards completing the course.

Students repeating year 12

(2) A person does not satisfy the progress rules if:

(a) the person is enrolled in a secondary course that is at year 12 level, or the overall level of which is at year 12 level (see subsections (3) and (4)); and

(b) the person has been a full‑time student in respect of a course at that level (a previous course) in each of 2 previous years; and

(i) the person failed a previous course because of an illness that had not been diagnosed when the person began that course;

(ii) the person failed a previous course because of other circumstances beyond the person’s control that were not apparent when the person began that course;

(iii) the person failed a previous course because English is not the person’s native language;

(iv) the person completed or discontinued a previous course within 6 months after the relevant academic year started;

(v) each of the previous courses was undertaken more than 10 years before the present study.

Course at year 12 level

(3) A secondary course is at year 12 level if the institution in which the course is undertaken regards it as being at year 12 level.

Overall level of course at year 12 level

(4) The overall level of a secondary course is at year 12 level if the institution in which the course is undertaken regards at least 50% of the course as being at year 12 level.

Meaning of secondary course

(5) For the purposes of this section, a course is a secondary course if it is a course determined, under section 5D of the Student Assistance Act 1973, to be a secondary course for the purposes of that Act.

1061PI Progress rules—tertiary students

Full‑time students

(1) A person who is a full‑time student in respect of a tertiary course satisfies the progress rules if:

(a) in the case of a person who is enrolled in the course—on the day on which the person enrolled in the course; or

(b) in the case of a person who is not yet enrolled in the course but intends to enrol in the course—on the day on which enrolments in the course are next accepted;

the time already spent by the student on the course, or on one or more other tertiary courses at the same level as that course, does not exceed the allowable study time for that course.

Note: For allowable study time for a course see subsection (3).

Concessional study‑load students

(2) A person who is a concessional study‑load student in respect of a tertiary course satisfies the progress rules if:

(a) in the case of a person who is enrolled in the course—on the day on which the person enrolled in the course; or

(b) in the case of a person who is not yet enrolled in the course but intends to enrol in the course—on the day on which enrolments in the course are next accepted;

the time already spent by the person on the course, or on one or more other tertiary courses at the same level as that course, does not exceed the allowable study time for the course.

Note: For allowable study time for a course see subsections (3) and (4).

Allowable study time—full‑time students and 66% concessional study‑load students

(3) The allowable study time for a course undertaken by a full‑time student or a 66% concessional study‑load student is:

(a) if the minimum amount of time needed to complete the course as a full‑time student is one year or less—that minimum amount of time; or

(b) if the minimum amount of time needed to complete the course as a full‑time student is more than 1 year and:

(i) the student is enrolled, or intends to enrol, in a year‑long subject; or

(ii) the student’s further progress in the course depends on passing a whole year’s work in the course;

the minimum amount of time plus 1 year; or

(c) in any other case—the minimum amount of time needed to complete the course as a full‑time student plus half an academic year.

Allowable study time—25% concessional study‑load students

(4) The allowable study time for a course undertaken by a 25% concessional study‑load student is twice the minimum period in which it is possible to complete the course as a full‑time student.

Time spent by person studying part‑time

(5) If a student has studied part‑time for a course over a certain period, the time spent by the student on that course is taken to be the proportion of that period calculated by using the formula:

$Start formula start fraction Study undertaken over Normal full-time study end fraction end formula$

where:

normal full‑time study means the normal amount of full‑time study for the course.

study undertaken means the amount of study undertaken part‑time by the student for the course.

Current full‑time students who have previously undertaken courses as concessional study‑load students

(6) If:

(a) a person is undertaking a course as a full‑time student; and

(b) the person has previously undertaken:

(i) part of the course; or

(ii) one or more than one other course at the same level as that course;

as a concessional study‑load student; and

(c) the time spent by the person undertaking the part of the course referred to in subparagraph (b)(i), or the course or courses referred to in subparagraph (b)(ii), (the previous study) is not to be disregarded under subsection (7);

the time spent by the person undertaking the previous study is taken to be equal to the minimum amount of time that a full‑time student would have taken to complete the previous study.

Matters to be disregarded in determining whether someone has exceeded the allowable study time

(7) In determining whether a person has exceeded the allowable study time (for a full‑time student or a concessional study‑load student), disregard the following:

(a) if the person has completed a course (a pre‑requisite course), the completion of which is the normal requirement for admission to the course in which the person is enrolled, or intends to enrol—time spent undertaking the pre‑requisite course;

(b) a failed year of study, or a failed part of a year of study, if the failure is because of:

(i) the person’s illness; or

(ii) other circumstances beyond the person’s control;

(i) the person’s illness; or

(ii) other circumstances beyond the person’s control;

(d) time spent undertaking a course that has been completed but which, because of the person’s illness, the person cannot use in any of the trades or profession to which the course is appropriate;

(e) time spent undertaking a TAFE course if the normal length of the course for a full‑time student is one year or less;

(f) time spent undertaking a course more than 10 years ago, unless the course has since been completed;

(g) time spent undertaking a course after 1973 if the course was not:

(i) approved for the Tertiary Education Assistance Scheme; or

(ii) approved for the AUSTUDY scheme; or

(iii) an approved course for the purposes of paragraph 541B(1)(c), 569A(b) or 1061PB(1)(b) of this Act;

(h) time spent undertaking a course at a foreign institution;

(i) time spent undertaking a subject from which the student withdrew, if the educational institution in which the subject was undertaken did not record the withdrawal from the subject as a failure;

(j) any time spent undertaking a course during which the person was ineligible to receive:

(i) AUSTUDY; or

(ii) a benefit under the Tertiary Education Assistance Scheme; or

(iii) youth allowance; or

(iv) austudy payment;

because of the application of rules in respect of academic progress.

Levels of tertiary courses

(8) There are 4 levels of tertiary courses—levels A, B, C and D.

Level A courses

(9) The following are Level A courses:

(a) a postgraduate bachelor degree course, with or without honours;

(b) a graduate or postgraduate diploma course;

(d) a course of advanced education regarded by an accrediting authority as being at PG1 level;

(e) a graduate certificate course.

Level B courses

(10) The following are Level B courses:

(a) a bachelor degree course (other than a postgraduate course), with or without honours;

(b) the bachelor level component of a masters degree course with concurrent bachelor and masters level study;

(i) a graduate or postgraduate diploma course; or

(ii) a course for which an entry requirement is successful completion of year 10 of secondary studies; or

(iii) a TAFE course;

(d) a Master’s qualifying course;

(e) the Barristers or Solicitors Admission Board’s course;

(f) a course of advanced education regarded by an accrediting authority as being at UG1 or UG2 level.

Level C courses

(11) The following are Level C courses:

(a) an associate degree course;

(b) an associate diploma course;

(c) a diploma course at a TAFE institution for which an entry requirement is successful completion of year 12 of secondary studies;

(d) a 2‑year undergraduate diploma course.

Level D courses

(12) The following are Level D courses:

(a) a TAFE course at a higher education institution;

(b) a TAFE course, unless the course is in Level A, B or C.

Meaning of tertiary course

(13) For the purposes of this section, a course is a tertiary course if it is a course determined, under section 5D of the Student Assistance Act 1973, to be a tertiary course for the purposes of that Act.

Subdivision C—Payments attracting pensioner education supplement

1061PJ Payments attracting pensioner education supplement

General

(1) A person is receiving a payment attracting pensioner education supplement if the person is receiving:

(a) a payment under this Act set out in subsection (2); or

(b) a payment under the Veterans’ Entitlements Act set out in subsection (3); or

(c) in the case of a person who has a dependent child—compensation under the Military Rehabilitation and Compensation Act set out in subsection (4).

Payments under this Act

(2) The payments under this Act are the following:

(a) a disability support pension;

(d) a pension (PP) single;

(da) subject to subsection (2A), a youth allowance;

(db) subject to subsection (2B), a jobseeker payment;

(dc) subject to subsection (2D), a benefit PP (partnered);

(g) in the case of a person who is a sole parent—a special benefit.

(2A) Paragraph (2)(da) only applies if:

(a) the person receiving the payment:

(i) has a partial capacity to work; and

(ii) on the day (being a day occurring on or after 1 July 2006) immediately before the person first qualified for a youth allowance, was a transitional DSP applicant and was receiving a disability support pension; and

(iii) ceased to be qualified for that disability support pension because he or she no longer had a continuing inability to work within the meaning of section 94; and

(iiia) ceased to be so qualified as a result of the first decision about the person’s capacity to work made on or after 1 July 2006; and

(iv) on the day immediately before ceasing to be qualified for that disability support pension, was qualified for a pensioner education supplement in relation to a particular course of education or study; or

(b) the person receiving the payment:

(i) is the principal carer of at least one child and is not a member of a couple; and

(ii) on the day (being a day occurring on or after 1 July 2006) immediately before the person last qualified for a youth allowance, was qualified for parenting payment and was receiving a pension (PP) single; and

(iii) ceased to be qualified for that parenting payment because he or she no longer had a PP child for the reason that his or her youngest dependent child had turned 8; and

(iv) on the day immediately before ceasing to be qualified for that parenting payment, was qualified for a pensioner education supplement in relation to a particular course of education or study;

and the person has:

(i) a youth allowance; and

(ii) a pensioner education supplement in relation to that particular course of education or study; and

(d) at no time since that day, either undertaken full‑time study or been a new apprentice.

Note 1: For partial capacity to work see section 16B.

Note 2: For transitional DSP applicant see subsection 23(1).

Note 3: For principal carer see subsections 5(15) to (24). See also subsection (2C) of this section.

Note 4: For undertaking full‑time study see section 541B.

Note 5: For new apprentice see subsection 23(1).

(2B) Paragraph (2)(db) only applies if subsection (2BA) or (2BB) applies.

(2BA) This subsection applies if the person receiving the payment:

(a) has a partial capacity to work; and

(b) on the day (the relevant day) (being a day occurring on or after 1 July 2006) immediately before the person first qualified for a jobseeker payment, was a transitional DSP applicant and was:

(i) receiving a disability support pension; or

(ii) receiving a youth allowance in respect of which subsection (2A) applied; and

(c) if he or she was receiving a disability support pension—ceased to be qualified for it because he or she no longer had a continuing inability to work within the meaning of section 94; and

(d) if he or she was receiving a disability support pension—ceased to be so qualified as a result of the first decision about the person’s capacity to work made on or after 1 July 2006; and

(e) was, on the relevant day, qualified for a pensioner education supplement in relation to a particular course of education or study; and

(f) at all times since the relevant day, has been qualified both for:

(i) a jobseeker payment; and

(ii) a pensioner education supplement in relation to that particular course of education or study.

Note 1: For partial capacity to work see section 16B.

Note 2: For transitional DSP applicant see subsection 23(1).

(2BB) This subsection applies if the person receiving the payment is the principal carer of at least one child and is not a member of a couple.

Note: For principal carer see subsections 5(15) to (24). See also subsection (2C) of this section.

(2C) If a person is the principal carer of a child who dies, the person is taken, for the purposes of subparagraph (2A)(b)(i) and subsection (2BB), to continue to be the principal carer of the child during the period of 14 weeks that starts on the day of the child’s death.

(2D) Paragraph (2)(dc) only applies if the person receiving the payment:

(a) has a partial capacity to work; and

(b) on the day (the relevant day) (being a day occurring on or after 1 July 2006) immediately before the person first qualified for parenting payment, was a transitional DSP applicant and was:

(i) receiving a disability support pension; or

(ii) receiving a youth allowance in respect of which subsection (2A) applied; or

(iii) receiving a jobseeker payment in respect of which subsection (2B) applied; and

(c) if he or she was receiving a disability support pension—ceased to be qualified for it because he or she no longer had a continuing inability to work within the meaning of section 94; and

(d) if he or she was receiving a disability support pension—ceased to be so qualified as a result of the first decision about the person’s capacity to work made on or after 1 July 2006; and

(e) was, on the relevant day, qualified for a pensioner education supplement in relation to a particular course of education or study; and

(f) at all times since the relevant day, has been a member of a couple; and

(g) at all times since the relevant day, has been qualified both for:

(i) parenting payment; and

(ii) a pensioner education supplement in relation to that particular course of education or study.

Note 1: For partial capacity to work see section 16B.

Note 2: For transitional DSP applicant see subsection 23(1).

Payments under the Veterans’ Entitlements Act

(3) The payments under the Veterans’ Entitlements Act are the following:

(a) in the case of a person who has a dependent child—a pension under Part II of that Act;

(b) an invalidity service pension;

(ba) income support supplement;

(bb) a veteran payment;

(d) a carer service pension;

(e) in the case of a person who has a dependent child—a pension under Part IV of that Act.

Compensation under the Military Rehabilitation and Compensation Act

(4) For a person who has a dependent child, the compensation under the Military Rehabilitation and Compensation Act is the following:

(a) compensation for permanent impairment paid as a weekly amount under section 68, 71 or 75 of the Military Rehabilitation and Compensation Act;

(b) a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act;

(c) the weekly amount mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act (including a reduced weekly amount because of a choice under section 236 of that Act).

Subdivision D—Pensioner education supplement age

1061PK Pensioner education supplement age

For the purposes of this Part, a person is of pensioner education supplement age if the person:

(a) is at least 16 years old; or

(b) is independent and has reached the minimum school leaving age for the State or Territory in which the person is living.

1061PL When a person is regarded as independent

Application

(1) This section applies to determine whether a person is to be regarded as independent for the purposes of this Part. A person is not to be regarded as independent except as provided by this section.

Person with a dependent child

(2) A person is independent if:

(a) the person has a natural child, adopted child or relationship child who is wholly or substantially dependent on the person or his or her partner; or

(b) the person previously had a natural child, adopted child or relationship child who was wholly or substantially dependent on the person or on a person who, at the time, was the person’s partner.

Orphan

(3) A person is independent if both the person’s parents are dead, whether or not the person is dependent, or was last dependent, on someone other than his or her parents.

If parents cannot exercise responsibilities

(4) A person is independent if both of the person’s parents are (or, if the person has only one parent, that parent is):

(a) serving a prison sentence of at least 10 years; or

(b) mentally incapacitated and likely to remain so incapacitated for an indefinite period; or

(d) missing;

whether or not the person is dependent, or was last dependent, on someone other than a parent of the person.

Refugee

(5) A person is independent if the person:

(a) is the holder, within the meaning of the Migration (1993) Regulations, of a Group 1.3 entry permit (permanent resident) (refugee and humanitarian); or

(b) while the holder of such a permit, was granted Australian citizenship.

However, a person is not independent under this subsection if the person has a parent living in Australia, or is wholly or substantially dependent on someone else on a long‑term basis.

Person in State care

(6) A person is independent if the person is not living with a parent, and:

(a) the person is in the guardianship, care or custody of a court, a Minister, or a Department, of the Commonwealth, a State or a Territory; or

(b) there is a current direction from such a court, Minister or Department placing the person in the guardianship, care or custody of someone who is not the person’s parent; or

A person to whom this subsection applies is taken, for the purposes of this Part, to be in State care.

Unreasonable to live at home

(7) A person is independent if:

(a) the person cannot live at the home of either or both of his or her parents:

(i) because of extreme family breakdown or other similar exceptional circumstances; or

(ii) because it would be unreasonable to expect the person to do so as there would be a serious risk to his or her physical or mental well‑being due to violence, sexual abuse or other similar exceptional circumstances; and

(b) the person is not receiving continuous support, whether directly or indirectly and whether financial or otherwise, from a parent of the person or from another person who is acting as the person’s guardian on a long‑term basis; and

(c) the person is not receiving, on a continuous basis, any payments in the nature of income support (other than a social security benefit) from the Commonwealth, a State or a Territory.

Parents of relationship children

(8) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of subsections (3), (4), (5), (6) and (7).

Subdivision E—Residency

1061PM Residency requirements

For the purposes of this Part, a person meets the residency requirements if the person:

(a) is an Australian resident; and

(b) subject to section 1061PN, is in Australia.

1061PN Absence of persons overseas

General

(1) A person who is undertaking qualifying study is taken to be in Australia while the person:

(a) is absent from Australia for the purpose of undertaking part of the studies for the course of education in respect of which the person is undertaking qualifying study; or

(b) is absent from Australia, for any other purpose, for not more than 6 weeks.

Temporary return to Australia

(2) If the person:

(a) returns to Australia after having been outside Australia (whether before or after the commencement of this section) for more than 6 weeks; and

(b) leaves Australia before the end of 6 weeks after he or she so returned to Australia;

the person is taken to have continued to be absent from Australia throughout the period from the time of the person’s return to the time when the person so left Australia.

Division 2—Situations in which pensioner education supplement is not payable

Subdivision C—Newly arrived resident’s waiting period

1061PT Pensioner education supplement not payable during newly arrived resident’s waiting period

A pensioner education supplement is not payable to a person while the person is subject to a newly arrived resident’s waiting period (see sections 1061PU and 1061PV).

1061PU Newly arrived resident’s waiting period

Basic rule

(1) Subject to this section, a person is subject to a newly arrived resident’s waiting period if the person:

(a) has entered Australia; and

(b) has not been an Australian resident in Australia for a period of, or periods totalling, 208 weeks.

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

Exception—qualifying resident exemption

(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for an austudy payment.

Note: For qualifying residence exemption in relation to austudy payment, see paragraph 7(6AA)(f).

Exception—other

(3) Subsection (1) does not apply to a person if:

(a) the person is a refugee, or a former refugee, at the time the person made the claim for a pensioner education supplement; or

(b) the following apply:

(i) before the person made the claim for a pensioner education supplement, the person was a family member of another person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the time the person made the claim for a pensioner education supplement or, if that other person has died, the person was a family member of that other person immediately before that other person died; or

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D); and

(b) former refugee has the meaning given by subsection 7(1); and

1061PV Length 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 in Australia for a period of, or periods totalling, 208 weeks after that day.

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

Subdivision D—Multiple entitlement exclusion

1061PW Meaning of multiple entitlement exclusion

For the purposes of this Division, a person is subject to a multiple entitlement exclusion if the person is receiving a pensioner education supplement under the ABSTUDY scheme.

1061PX Multiple entitlement exclusion

A pensioner education supplement is not payable to a person if the person is subject to a multiple entitlement exclusion.

Division 5—Rate of pensioner education supplement

1061PZG Rate of pensioner education supplement

(1) If a person:

(a) is a sub‑50% concessional study‑load student in respect of a course; and

(b) is not receiving any of the following:

(i) a disability support pension under this Act;

(ia) a youth allowance, newstart allowance or benefit PP (partnered) under this Act, in a case where the person has a partial capacity to work;

(ii) an invalidity service pension under the Veterans’ Entitlements Act;

(iii) an income support supplement under the Veterans’ Entitlements Act on the grounds of permanent incapacity;

(iv) a veteran payment;

the pensioner education supplement fortnightly rate for the person is $31.20.

Note 1: Recipients of youth allowance, newstart allowance or benefit PP (partnered) only qualify for pensioner education supplement in the limited circumstances set out in subsection 1061PJ(2A), (2B) or (2D).

Note 2: For partial capacity to work see section 16B.

(2) The pensioner education supplement fortnightly rate for a person to whom subsection (1) does not apply is $62.40.

(3) The rate of pensioner education supplement for a person is a daily rate worked out by dividing the person’s fortnightly rate by 14.

(4) For the purposes of this section, a person is a sub‑50% concessional study‑load student in respect of a course if the person is a 25% concessional study‑load student in respect of the course for the purposes of Subdivision B of Division 1 of this Part who is undertaking, or who intends to undertake, less than one half of the normal amount of full‑time study, determined in accordance with section 1061PF, in respect of that course.

Part 2.25—Telephone allowance

Division 1—Qualification for and payability of telephone allowance

1061Q Qualification for telephone allowance

(1) A person is qualified for a telephone allowance if:

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

Note: For telephone subscriber see subsection (5).

(2) A person is qualified for a telephone allowance if:

(a) the person is receiving a youth allowance; and

(b) the person is not undertaking full‑time study; and

(d) the person:

(i) has a partial capacity to work; or

(ii) is the principal carer of at least one child and is not a member of a couple; and

(e) the person is a telephone subscriber.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

Note 3: For partial capacity to work see section 16B.

Note 4: For principal carer see subsections 5(15) to (24). See also subsection (2C) of this section.

Note 5: For telephone subscriber see subsection (5).

(2A) A person is qualified for a telephone allowance if:

(a) the person is receiving a jobseeker payment; and

(b) the person:

(i) has a partial capacity to work; or

(ii) is the principal carer of at least one child and is not a member of a couple; and

Note 1: For partial capacity to work see section 16B.

Note 2: For principal carer see subsections 5(15) to (24). See also subsection (2C) of this section.

Note 3: For telephone subscriber see subsection (5).

(2B) A person is qualified for a telephone allowance if:

(a) the person is:

(i) receiving a youth allowance while the person is not undertaking full‑time study and is not a new apprentice; or

(ii) receiving a jobseeker payment; and

(b) the person is the principal carer of at least one child and is a member of a couple; and

(d) the person’s partner has turned 60; and

(e) the person’s partner is receiving jobseeker payment; and

(f) the person’s partner has been receiving income support payments in respect of a continuous period of at least 9 months.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

Note 3: For principal carer see subsections 5(15) to (24). See also subsection (2C) of this section.

Note 4: For telephone subscriber see subsection (5).

Note 5: For income support payment see subsection 23(1).

Note 6: Subsection 23(4A) can affect when a person is taken to be receiving the pension or allowance.

(2C) If a person is the principal carer of a child who dies, the person is taken, for the purposes of subparagraphs (2)(d)(ii) and (2A)(b)(ii) and paragraph (2B)(b), to continue to be the principal carer of the child during the period of 14 weeks that starts on the day of the child’s death.

(2D) A person is qualified for a telephone allowance if:

(a) the person is receiving a benefit PP (partnered); and

(b) the person has a partial capacity to work; and

Note 1: For partial capacity to work see section 16B.

Note 2: For telephone subscriber see subsection (5).

(3) A person is qualified for a telephone allowance if:

(a) the person is receiving jobseeker payment, benefit PP (partnered) or special benefit; and

(b) the person has been receiving income support payments in respect of a continuous period of at least 9 months; and

(d) the person is a telephone subscriber.

Note 1: For income support payment see subsection 23(1).

Note 2: For the determination of the continuous period in respect of which a person received income support payments see section 38B.

Note 3: For telephone subscriber see subsection (5).

(3A) A person is qualified for telephone allowance if:

(a) the person is receiving benefit PP (partnered); and

(b) the person is a telephone subscriber; and

(d) the person’s partner is receiving job search allowance or jobseeker payment; and

(e) the person’s partner has been receiving income support payments in respect of a continuous period of at least 9 months.

Note 1: For telephone subscriber see subsection (5).

Note 2: For income support payment see subsection 23(1).

Note 3: For the determination of the continuous period in respect of which a person received income support payments see section 38B.

(3C) If:

(a) a person has been receiving a social security pension; and

(b) the person ceases to receive the pension because the person or the person’s partner has employment income; and

the person is qualified for a telephone allowance:

(d) if the person has been receiving a disability support pension—for a period of 12 months from the date on which the person ceases to receive the pension; or

(e) in any other situation mentioned in paragraph (a)—for a period of 6 months from the date on which the person ceases to receive the pension.

Note 1: For telephone subscriber see subsection (5).

Note 2: Subsection 23(4A) can affect when a person is taken to be receiving the pension.

(3D) Subsection (3C) applies to a person who:

(a) has been receiving a youth allowance while the person:

(i) has had a partial capacity to work; and

(ii) has not been undertaking full‑time study; and

(iii) has not been a new apprentice; or

(b) has been receiving a jobseeker payment or parenting payment while the person has had a partial capacity to work;

as if the person had been receiving a disability support pension.

Note 1: For partial capacity to work see section 16B.

Note 2: For undertaking full‑time study see section 541B.

Note 3: For new apprentice see subsection 23(1).

(3E) Subsection (3C) applies to a person who:

(a) has been receiving a youth allowance while the person:

(i) has been the principal carer of at least one child; and

(ii) has not been a member of a couple; and

(iii) has not had a partial capacity to work; and

(iv) has not been undertaking full‑time study; and

(v) has not been a new apprentice; or

(b) has been receiving a jobseeker payment while the person:

(i) has been the principal carer of at least one child; and

(ii) has not been a member of a couple; and

(iii) has not had a partial capacity to work;

as if the person had been receiving pension PP (single).

Note 1: For principal carer see subsections 5(15) to (24). See also subsection (3K) of this section.

Note 2: For partial capacity to work see section 16B.

Note 3: For undertaking full‑time study see section 541B.

Note 4: For new apprentice see subsection 23(1).

(3F) If:

(a) a person has been receiving one of the following social security benefits:

(i) jobseeker payment;

(v) special benefit;

(vi) benefit PP (partnered); and

(b) the person ceases to receive the benefit because the person or the person’s partner has employment income; and

(d) immediately before the person ceases to receive the benefit, the person had been receiving income support payments in respect of a continuous period of at least 9 months; and

(e) the person is a telephone subscriber;

the person is qualified for a telephone allowance for a period of 6 months from the date on which the person ceases to receive the benefit.

Note 1: For telephone subscriber see subsection (5).

Note 2: Subsection 23(4A) can affect when a person is taken to be receiving the benefit.

(3G) If:

(a) a person has been receiving benefit PP (partnered); and

(b) the person ceases to receive the benefit because the person or the person’s partner has employment income; and

(d) the person’s partner:

(i) is receiving jobseeker payment; or

(ii) was receiving jobseeker payment immediately before the person ceased to receive benefit PP (partnered); and

(e) immediately before the person ceases to receive the benefit, the person’s partner had been receiving income support payments in respect of a continuous period of at least 9 months; and

(f) the person is a telephone subscriber;

the person is qualified for a telephone allowance for a period of 6 months from the date on which the person ceases to receive the benefit.

Note 1: For telephone subscriber see subsection (5).

Note 2: Subsection 23(4A) can affect when a person is taken to be receiving the benefit.

(3H) Subsection (3G) applies to a person who:

(a) has been receiving youth allowance while the person:

(i) has been the principal carer of at least one child; and

(ii) has been a member of a couple; and

(iii) has not been undertaking full‑time study; and

(iv) has not been a new apprentice; or

(b) has been receiving jobseeker payment while the person:

(i) has been the principal carer of at least one child; and

(ii) has been a member of a couple;

as if the person had been receiving benefit PP (partnered).

Note 1: For principal carer see subsections 5(15) to (24). See also subsection (3K) of this section.

Note 2: For undertaking full‑time study see section 541B.

Note 3: For new apprentice see subsection 23(1).

(3J) A reference in paragraph (3C)(b), (3F)(b) or (3G)(b) to the employment income of a person is a reference to that person’s employment income either alone or in combination with any other ordinary income earned, derived or received, or taken to have been earned, derived or received, by the person or the person’s partner.

(3K) If a person was the principal carer of a child who died, the person is taken, for the purposes of subparagraphs (3E)(a)(i) and (3H)(b)(i), to have continued to be the principal carer of the child during the period of 14 weeks that started on the day of the child’s death.

(4) For the purposes of paragraph (2B)(f), (3)(b), (3A)(e), (3F)(d) or (3G)(e), it does not matter:

(a) whether the kind of payment received has changed over the period in question; or

(b) whether the period or any part of it occurred before or after the commencement of that paragraph.

(5) In this section:

telephone subscriber means:

(a) a person who has a telephone service connected in Australia in his or her name; or

(b) a person:

(i) to whom paragraph (a) does not apply; and

(ii) who is a member of a couple (other than an illness separated, temporarily separated or respite care couple); and

(iii) whose partner has a telephone service connected in Australia in the partner’s name.

Note: For member of a couple, illness separated couple, temporarily separated couple and respite care couple see section 4.

1061R Telephone allowance not payable in some circumstances

Even though a person is qualified for a telephone allowance, the allowance is not payable to the person if:

(a) the person is receiving a social security payment for which a pension supplement amount is used to work out the rate of the payment, with a pension supplement amount that is more than the person’s pension supplement basic amount; or

(b) the following subparagraphs apply to the person:

(i) the person is qualified for the telephone allowance because of the application of subsection 1061Q(3C), (3F) or (3G) to the person in relation to a social security payment the person has ceased to receive;

(ii) immediately before the cessation of the payment, a pension supplement amount was used to work out the rate of the payment;

(iii) that pension supplement amount was more than the person’s pension supplement basic amount; or

(d) the person is receiving energy supplement under Part 2.25B of this Act or Part VIIAD of the Veterans’ Entitlements Act; or

(e) the person is receiving MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act; or

(f) the person is receiving veterans supplement under section 118B of the Veterans’ Entitlements Act; or

(g) both:

(i) the person is a member of a couple (other than an illness separated, temporarily separated or respite care couple); and

(ii) the person’s partner is receiving veterans supplement under either subsection 118B(2) of the Veterans’ Entitlements Act or a determination under subsection 5R(1) of that Act.

Note 1: For the purposes of subparagraph (b)(i), subsections 1061Q(3C) and (3G) have an extended application (see subsections 1061Q(3D), (3E) and (3H)).

Note 2: For member of a couple, illness separated couple, temporarily separated couple and respite care couple, see section 4.

Note 3: Subsection 118B(2) of the Veterans’ Entitlements Act covers certain categories of World War I veterans.

Note 4: The relevant determination under subsection 5R(1) of the Veterans’ Entitlements Act provides eligibility for veterans supplement to certain categories of World War I Australian mariners.

Division 2—Rate of telephone allowance

1061S Standard rate of telephone allowance

(1) The rate of telephone allowance for a person to whom section 1061SB (increased rate for home internet) does not apply is worked out using the following Table:

Standard rate of telephone allowance
Column 1 Item	Column 2 Person’s situation	Column 3 Rate per year
1.	Not member of a couple	$88.00
3.	Partnered (partner getting neither social security pension nor social security benefit), and partner not a holder of a seniors health card	$44.00
4.	Partnered, and: (a) partner getting pension or benefit; or (b) partner is a holder of a seniors health card; and: (c) partner is not getting telephone allowance; and (d) if the partner were taken to be qualified for telephone allowance, section 1061R would not prevent telephone allowance from being payable to the partner	$88.00
5.	Partnered, and: (a) partner getting pension or benefit; or (b) partner is a holder of a seniors health card; and: (c) partner is getting telephone allowance; or (d) if the partner were taken to be qualified for telephone allowance, section 1061R would prevent telephone allowance from being payable to the partner	$44.00
6.	Member of an illness separated, temporarily separated or respite care couple	$88.00
7.	Partnered, and: (a) partner not getting veterans supplement under section 118B of the Veterans’ Entitlements Act; and (b) partner not getting MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act	$88.00
8.	Partnered, and: (a) partner getting veterans supplement under section 118B of the Veterans’ Entitlements Act; or (b) partner getting MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act	$44.00
9.	Partnered (partner in gaol)	$88.00

Note: The amounts in column 3 are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194).

(1A) Item 7 does not apply to a person if any other item applies to the person.

(2) If item 8 applies to a person, item 3 does not apply to the person.

(3A) For the purposes of working out a person’s rate of telephone allowance under subsection (1), the person’s partner is taken to be the holder of a seniors health card if the partner:

(a) is temporarily absent from Australia for a continuous period not exceeding 6 weeks; and

(b) was the holder of a seniors health card immediately before leaving Australia.

1061SA Increased rate of telephone allowance

(1) The rate of telephone allowance for a person to whom section 1061SB (increased rate for home internet) applies is worked out using the following table:

Increased rate of telephone allowance
Column 1 Item	Column 2 Person’s situation	Column 3 Rate per year
1.	Not member of a couple	$132.00
3.	Partnered (partner getting neither social security pension nor social security benefit), and partner not a holder of a seniors health card	$66.00
4.	Partnered, and: (a) partner getting pension or benefit; or (b) partner is a holder of a seniors health card; and: (c) partner is not getting telephone allowance; and (d) if the partner were taken to be qualified for telephone allowance, section 1061R would not prevent telephone allowance from being payable to the partner	$132.00
5.	Partnered, and: (a) partner getting pension or benefit; or (b) partner is a holder of a seniors health card; and: (c) partner is getting telephone allowance at the increased rate; or (d) if the partner were taken to be qualified for telephone allowance, section 1061R would prevent telephone allowance from being payable to the partner	$66.00
6.	Member of an illness separated, temporarily separated or respite care couple	$132.00
7.	Partnered, and: (a) partner not getting veterans supplement under section 118B of the Veterans’ Entitlements Act; and (b) partner not getting MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act	$132.00
8.	Partnered, and: (a) partner getting veterans supplement under section 118B of the Veterans’ Entitlements Act; or (b) partner getting MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act	$66.00
9.	Partnered (partner in gaol)	$132.00
10.	Partnered (partner getting pension or benefit) and partner getting telephone allowance at the standard rate	$88.00

Note: The amounts in column 3 are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194).

(2) Item 7 does not apply to a person if any other item applies to the person.

(3) If item 8 applies to a person, item 3 does not apply to the person.

(5) For the purposes of working out a person’s rate of telephone allowance under subsection (1), the person’s partner is taken to be the holder of a seniors health card if the partner:

(a) is temporarily absent from Australia for a continuous period not exceeding 6 weeks; and

(b) was the holder of a seniors health card immediately before leaving Australia.

1061SB Increased rate of telephone allowance for home internet

(1) This section applies to a person if the person satisfies the conditions in this section.

Note: A person is eligible for an increased rate of telephone allowance if this section applies to him or her: see section 1061SA.

First condition

(2) The first condition is that the person:

(d) is receiving a disability support pension or carer payment.

Second condition

(3) The second condition is that an internet carriage service (within the meaning of the Broadcasting Services Act 1992) is connected in Australia either:

(a) in the person’s name; or

(b) if the person is a member of a couple (other than an illness separated, temporarily separated or respite care couple)—in the person’s partner’s name.

Third condition

(4) The third condition is that the person is able to access that internet carriage service at the person’s principal home.

Fourth condition

(5) The fourth condition is that, on or before the telephone allowance payday, the person gave oral or written notice to the Secretary about the connection of the internet carriage service mentioned in subsection (3).

Definition

(6) In this section:

telephone allowance payday has the same meaning as in subsection 48(4) of the Administration Act.

Part 2.25A—Utilities allowance

Division 1—Qualification for and payability of utilities allowance

1061T Qualification for utilities allowance

(1) A person is qualified for utilities allowance if the person:

(a) either:

(i) has reached pension age and is receiving an income support payment; or

(ii) is receiving a disability support pension or a carer payment; and

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

(2) Even though a person is qualified for utilities allowance, the allowance is not payable to the person:

(a) if the person is receiving a social security payment for which a pension supplement amount is used to work out the rate of the payment, with a pension supplement amount that is more than the person’s pension supplement basic amount; or

(b) if the person is receiving energy supplement under Part 2.25B; or

1061TA When utilities allowance is payable

(1) Utilities allowance is payable to a person in relation to each utilities allowance test day on which the person is qualified for the allowance.

(2) However, utilities allowance is not payable to the person in relation to that day if:

(a) a service pension, income support supplement or a veteran payment is payable to the person on that day; or

(b) energy supplement under Part VIIAD of the Veterans’ Entitlements Act is payable in relation to that day; or

(i) the person had elected not to be covered by this Part; and

(ii) that election had not been withdrawn.

(3) In this section:

utilities allowance test day means:

(a) 20 March; and

(b) 20 June; and

(d) 20 December.

Division 2—Rate of utilities allowance

1061TB Rate of utilities allowance

A person’s annual rate of utilities allowance is worked out using the following table:

Utilities allowance rate table
Column 1	Column 2	Column 3
Item	Person’s situation	Annual rate
1	not a member of a couple	$500
2	member of an illness separated couple	$500
3	member of a respite care couple	$500
4	member of a temporarily separated couple	$500
5	member of a couple (other than an illness separated couple, respite care couple or temporarily separated couple)	half the rate specified in column 3 of item 1

Note: The annual rates of utilities allowance are indexed twice a year in line with CPI increases (see sections 1191 to 1194).

Part 2.25B—Energy supplement

Division 1—Qualification and payability

1061U Qualification for energy supplement

(1) A person is qualified for energy supplement if the person is the holder of a seniors health card.

Exceptions

(2) Subject to subsections (4), (6) and (8), subsection (1) applies to a person on or after the commencement of this subsection only if on 19 September 2016:

(a) energy supplement was payable to the person under section 1061UA; or

(b) energy supplement was payable to the person under section 118PA of the Veterans’ Entitlements Act.

Note: For subsection (1) to apply to the person on a day on or after that commencement, the person needs to be the holder of a seniors health card on that day.

(3) Subject to subsection (8), if:

(a) energy supplement was payable to a person under section 1061UA, or under section 118PA of the Veterans’ Entitlements Act, on 19 September 2016; and

(b) energy supplement ceases to be payable to the person under either of those sections on or after 20 September 2016;

then subsection (1) of this section does not apply, and never again applies, to the person from:

(c) if the cessation occurred before the commencement of this subsection—the start of the day this subsection commences; or

(d) if the cessation occurred on or after the commencement of this subsection—the start of the day of that cessation.

(4) If:

(a) a person was not qualified for energy supplement under subsection (1) on 19 September 2016; and

(b) on 19 September 2016 the person was receiving an income support payment where energy supplement was used to work out the rate of that payment; and

(c) on a day (the cessation day) on or after the commencement of this subsection the person ceases to be in receipt of any income support payment; and

(d) on the day before the cessation day the person was receiving an income support payment where energy supplement was used to work out the rate of that payment; and

(e) the person is required to make a claim for a seniors health card in order for such a card to be granted to the person;

the person can become qualified for energy supplement under subsection (1) only if the person makes a claim for a seniors health card within the period of 6 weeks beginning on the cessation day.

(5) Subject to subsection (8), if:

(a) as a result of a claim mentioned in subsection (4), a seniors health card is issued to a person on a day; and

(b) energy supplement ceases to be payable to the person under section 1061UA on or after that day;

then subsection (1) of this section does not apply, and never again applies, to the person from the start of the day of that cessation.

(6) If:

(a) a person was not qualified for energy supplement under subsection (1) on 31 December 2016; and

(b) on that day, the person was receiving a social security pension and an amount of energy supplement was added to the rate of that pension; and

the person can become qualified for energy supplement under subsection (1) of this section because of holding that card.

(7) Subject to subsection (8), if:

(a) as mentioned in paragraph (6)(c), a seniors health card is issued to a person on a day; and

(b) energy supplement ceases to be payable to the person under section 1061UA on or after that day;

then subsection (1) of this section does not apply, and never again applies, to the person from:

(c) if the cessation occurred before the commencement of this subsection—the start of the day this subsection commences; or

(d) if the cessation occurred on or after the commencement of this subsection—the start of the day of that cessation.

(8) If:

(a) on a day on or after 20 September 2016 the person ceases to hold a seniors health card under the Administration Act or the Veterans’ Entitlements Act; and

(b) on that day the person receives an income support payment where energy supplement is used to work out the rate of that payment; and

(c) on a day (the cessation day) on or after the commencement of this subsection, the person ceases to be in receipt of any income support payment; and

(d) on the day before the cessation day the person was receiving an income support payment where energy supplement was used to work out the rate of that payment; and

(e) the person is required to make a claim for a seniors health card in order for such a card to be granted to the person;

the person can become qualified for energy supplement under subsection (1) only if the person makes a claim for a seniors health card within the period of 6 weeks beginning on the cessation day.

1061UA When energy supplement is payable

(1) Energy supplement is payable to a person in relation to each day on which the person is qualified for the supplement.

(2) However, energy supplement is not payable to the person in relation to a day if:

(a) before that day:

(i) the person had elected not to be covered by this Part; and

(ii) that election had not been withdrawn; or

(b) subsection 55(5) (failing to nominate a bank account) of the Administration Act applies to the person.

Division 2—Rate of energy supplement

1061UB Rate of energy supplement

(1) If subsection (2) applies to the person on a day, the person’s daily rate of energy supplement, for that day, is 1/364 of the amount worked out using the following table:

Energy supplement
Item	Person’s family situation	Amount of energy supplement
1	Not a member of a couple	$366.60
2	Partnered	$275.60
3	Member of an illness separated couple	$366.60
4	Member of a respite care couple	$366.60
5	Partnered (partner in gaol)	$366.60

(2) This subsection applies to a person on a day if on that day the person is residing in Australia and either:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

Part 2.25C—Quarterly pension supplement

1061V When this Part applies

(1) This Part applies to a person if:

(a) a pension supplement amount is used to work out the rate of the person’s social security payment (the main payment); and

(b) the annual rate of that pension supplement amount is more than the person’s pension supplement basic amount.

Note: A pension supplement amount that is more than the person’s pension supplement basic amount contains a minimum component. The person may elect under this Part to receive that minimum component on a quarterly basis as a separate social security payment.

(2) For the purposes of paragraph (1)(b), if the Rate Calculator for the main payment produces a fortnightly rate, then multiply the person’s pension supplement amount by 26 to get the annual rate of that pension supplement amount.

(3) For the purposes of subsection (1), it does not matter if the rate of the person’s main payment would become nil were an election by the person under subsection 1061VA(1) to come into force.

1061VA Quarterly pension supplement

(1) The person may, in a manner or way approved by the Secretary, make an election to receive the person’s minimum pension supplement amount on a quarterly basis as a separate social security payment.

(2) An election comes into force as soon as practicable after it is made.

(2A) An election ceases to be in force if the main payment ceases to be payable to the person.

(3) The person may, in a manner or way approved by the Secretary, revoke an election. A revocation takes effect as soon as practicable after it happens.

(4) Quarterly pension supplement is payable to the person in relation to each day on which an election is in force.

1061VB Rate of quarterly pension supplement

(1) The person’s annual rate of quarterly pension supplement is the person’s minimum pension supplement amount.

(2) The person’s daily rate of quarterly pension supplement is worked out by dividing the person’s annual rate by 364.

(3) This section has effect subject to subsection 1210(3).

Part 2.26—Fares allowance

Note: Section 19A contains many of the definitions that are relevant to the provisions of this Part.

Division 1—Qualification for fares allowance

1061ZAAA Qualification for fares allowance

(1) A person is qualified for fares allowance for a journey by the person if:

(a) during a period (the relevant period) that is the whole or a part of a study year the person undertakes an approved tertiary course (the approved course) at an educational institution in Australia (the relevant educational institution); and

(b) during the relevant period the person is receiving one or more of the following forms of financial assistance:

(i) youth allowance because the person is undertaking full‑time study;

(ii) youth allowance where the only term of the relevant employment pathway plan is a term to the effect that the person has to undertake an approved course of education or study under subsection 541B(5);

(iii) austudy payment;

(iv) pensioner education supplement; and

(d) either:

(i) subsection (2) or (3) applies in respect of the person for the study year; or

(ii) subsection (4) or (5) applies in respect of the person in relation to the journey; and

(e) either section 1061ZAAB or 1061ZAAC applies in respect of the journey; and

(f) the journey has been made or, if it has not been made, the Secretary is satisfied that:

(i) the person intends to make the journey; and

(ii) the person’s means of travel for the journey will be provided by a commercial operator.

Note: A person is taken to be receiving a form of financial assistance referred to in paragraph (b) even though the person has traded in, or traded back, the assistance to obtain a financial supplement.

(2) This subsection applies in respect of the person for the study year if, during the relevant period, the person:

(a) has a partner, or a dependent child, living at the person’s permanent home; and

(b) is required to live away from his or her permanent home in order to undertake the approved course.

(3) This subsection applies in respect of the person for the study year if, during the relevant period, the person is enrolled as an external student for the approved course.

(4) This subsection applies in respect of the person in relation to the journey if:

(a) during the relevant period, the person:

(i) is receiving youth allowance as referred to in subparagraph (1)(b)(i) or (ii); and

(ii) is required to live away from home within the meaning of Part 3.5 (see section 1067D); and

(b) the person is not independent when the journey is made.

(5) This subsection applies in respect of the person in relation to the journey if:

(a) during the relevant period, the person:

(i) is receiving youth allowance as referred to in subparagraph (1)(b)(i) or (ii); and

(ii) is required to live away from home within the meaning of Part 3.5 (see section 1067D); and

(b) during the study year and before the journey was made the person became independent because of subsection 1067A(4), (10) or (14); and

(c) if the journey had been made in the study year before the person became independent, subsection (4) would have applied in respect of the person in relation to the journey.

Note: A person is not qualified for a fares allowance in respect of a journey made before the commencement of this section (see clause 126 of Schedule 1A).

1061ZAAB Journey by person who is not an external student

If the person is enrolled for the approved course as a student other than an external student, this section applies in respect of a journey only if the journey is one of the following:

(a) a journey from the person’s permanent home to the relevant educational institution to start the course;

(b) a journey made, in the study year or before 1 April in the next year, from the relevant educational institution to the person’s permanent home after the person has finished or discontinued the course;

(c) a return journey during the study year between the relevant educational institution and the person’s permanent home where the person:

(i) has, during the study year and before the making of the journey, received one or more of the forms of financial assistance referred to in paragraph 1061ZAAA(1)(b) for a total period of 3 months (whether continuous or not); and

(ii) is receiving one of those forms of financial assistance when the journey is made.

1061ZAAC Journey by person who is an external student

If the person is enrolled for the approved course as an external student, this section applies only in respect of one return journey by the person during the study year between the person’s permanent home and the relevant educational institution in order to attend the institution for a period under a requirement that is a compulsory component of the course.

Division 3—Amount of fares allowance

1061ZAAJ Fares allowance for public transport

(1) If the Secretary is satisfied that it is practicable for the person to make the entire journey by public transport, the amount of fares allowance for the entire journey is worked out using this section.

(2) If the Secretary is satisfied that it is practicable for the person to make part of the journey by public transport, the amount of fares allowance for that part of the journey is worked out using this section.

(3) The amount of fares allowance is the cost of making the journey, or the part of the journey, using a reasonable route and the least expensive form of public transport that is reasonable.

(4) The cost is to be based on the cost of any concessional fare available to the person.

(5) The cost of a sleeping berth is to be included only if it is reasonable for the person to travel by rail and for the person to have the berth.

(6) In deciding what is practicable or reasonable for the purposes of this section, the period of time needed for the entire journey, and any illness or incapacity of the person, must be taken into account.

(7) The amount of fares allowance to be paid is to be worked out using this section whether or not the person chooses to make the journey, or the part of the journey, in the way described in this section.

1061ZAAK Fares allowance for private transport

(1) If the Secretary is satisfied that it is not practicable for the person to make any part of the journey by public transport, the amount of fares allowance for the entire journey is worked out using this section.

(2) If the Secretary is satisfied that it is not practicable for the person to make a part of the journey by public transport, the amount of fares allowance for that part of the journey is worked out using this section.

(3) If the person makes the journey, or the part of the journey, by taxi, the fares allowance is 63 cents per kilometre travelled by taxi.

(4) If the person makes the journey, or the part of the journey, by another vehicle, the fares allowance is worked out in accordance with the following table:

Table of rates of allowance
Item	Kind of engine in the vehicle the person uses	Capacity of the vehicle’s engine (cubic centimetres)	Allowance per kilometre (cents)
1	Rotary	not more than 800	50.0
2	Rotary	more than 800 but not more than 1,300	60.0
3	Rotary	more than 1,300	61.0
4	Not rotary	not more than 1,600	50.0
5	Not rotary	more than 1,600 but not more than 2,600	60.0
6	Not rotary	more than 2,600	61.0

(5) If the Secretary is satisfied that:

(a) it is unreasonable for the person to make the journey or the part of the journey by taxi or another vehicle because of abnormal travel hazards (for example, bushfire or flood); and

(b) the person makes the journey or the part of the journey by another form of transport that is reasonable because of the distance travelled and the cost of the transport;

the amount of fares allowance for the journey or that part of the journey is the actual cost to the person of making the journey or that part of the journey.

(7) For the purposes of this section, a vehicle that is registered as a taxi in a State or Territory is to be taken to be a taxi only while it is used in the State or Territory.

(8) The Minister may, by legislative instrument, make determinations:

(a) varying the amount referred to in subsection (3); or

(b) amending the table in subsection (4) or omitting that table and substituting another table.

Chapter 2A—Benefits and concessions other than payments

Part 2A.1—Concession cards

Division 1—Qualification for, and issue of, pensioner concession card

1061ZA General qualification rules

(1) Subject to subsection (3), a person is qualified for a pensioner concession card on a day if a social security pension is payable to the person for that day.

(1A) Paragraph (1)(a) does not apply to a carer payment payable to the person because the person is qualified for that payment for that day under section 197G or 197H or subsection 198AA(4) or (5) (whether or not because of section 197F).

(1B) Subject to subsection (3), a person is qualified for a pensioner concession card on a day if:

(a) immediately before 1 January 2017, the person was receiving a social security pension; and

(b) the Secretary is satisfied that the rate of that pension was nil on 1 January 2017 because of the operation of the amendments made by Part 1 of Schedule 3 to the Social Services Legislation Amendment (Fair and Sustainable Pensions) Act 2015; and

(2) Subject to subsection (3), a person is qualified for a pensioner concession card on a day (the qualification day) if, on that day:

(a) the person has attained 60 years of age; and

(b) the person is receiving:

(i) jobseeker payment; or

(iv) benefit PP (partnered); or

(vi) special benefit; and

(c) the person has been receiving, for a continuous period of not less than 39 weeks ending immediately before the qualification day:

(i) one or more of the social security benefits referred to in paragraph (b); or

(ii) a social security pension.

(2A) Subject to subsection (3), a person is qualified for a pensioner concession card on a day if, on that day:

(a) the person is receiving a youth allowance; and

(b) the person is not undertaking full‑time study and is not a new apprentice; and

(i) has a partial capacity to work; or

(ii) is the principal carer of at least one child and is not a member of a couple.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

Note 3: For partial capacity to work see section 16B.

Note 4: For principal carer see subsections 5(15) to (24). See also subsection (2C) of this section.

(2B) Subject to subsection (3), a person is qualified for a pensioner concession card on a day if, on that day:

(a) the person is receiving a jobseeker payment; and

(b) the person:

(i) has a partial capacity to work; or

(ii) is the principal carer of at least one child and is not a member of a couple; and

Note 1: For partial capacity to work see section 16B.

Note 2: For principal carer see subsections 5(15) to (24). See also subsection (2C) of this section.

(2C) If a person is the principal carer of a child who dies, the person is taken, for the purposes of subparagraphs (2A)(c)(ii) and (2B)(b)(ii), to continue to be the principal carer of the child during the period of 14 weeks that starts on the day of the child’s death.

(2D) Subject to subsection (3), a person is qualified for a pensioner concession card on a day if, on that day:

(a) the person is receiving a benefit PP (partnered); and

(b) the person has a partial capacity to work; and

Note: For partial capacity to work see section 16B.

(2E) Subject to subsection (3), a woman is qualified for a pensioner concession card on a day if, on that day:

(a) the woman is receiving a jobseeker payment; and

(b) the woman’s jobseeker payment rate is worked out under section 654.

(3) Subject to subsections (4) and (5), subsections (1), (1B), (2), (2A), (2B), (2D) and (2E) only apply to a person in relation to a day on which the person is in Australia and is an Australian resident.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(4) In spite of subsection (3), subsections (1), (2), (2A), (2B) and (2D) apply to a person in relation to a day on which the person:

(a) is in Australia; and

(b) is receiving a social security pension or benefit solely because of the operation of the scheduled international social security agreement between Australia and New Zealand.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(5) In spite of subsection (3), if:

(a) paragraphs (1B)(a), (b) and (c) are satisfied in relation to a person; and

(b) the person was receiving the social security pension immediately before 1 January 2017 solely because of the operation of the scheduled international social security agreement between Australia and New Zealand;

subsection (1B) applies to a person in relation to a day on which the person is in Australia.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

1061ZC Extended qualification rule: long‑term recipient of social security benefits

(1) Subject to subsection (2), if:

(a) a person has been receiving a social security benefit referred to in paragraph 1061ZA(2)(b) for a continuous period of not less than 39 weeks; and

(b) either:

(i) the person or the person’s partner commences employment; or

(ii) there is an increase in the ordinary income of the person or the person’s partner from employment; and

(c) but for the commencement of employment or increase in ordinary income, as the case may be, the person would have been, or would have continued to be, qualified for a pensioner concession card under subsection 1061ZA(2); and

(ca) the person did not become qualified under section 1061ZEB for a pensioner concession card because of that employment or increase in ordinary income;

the person is qualified for a pensioner concession card:

(d) if the person is qualified for a pensioner concession card under section 1061ZEA until a particular day—for the period of 26 weeks after that day; and

(e) in any other case—for the period of 26 weeks after the commencement or increase, as the case may be.

(1A) If:

(a) either:

(i) the person first referred to in subsection (1) commences employment; or

(ii) there is an increase in the ordinary income from employment of the person so referred to; and

(b) at the start of the instalment period of the person in which the commencement or increase occurs:

(i) the person is a working credit participant; and

(ii) the person’s working credit balance is greater than nil; and

(d) the person is not qualified for a pensioner concession card under section 1061ZEA;

paragraph (1)(e) has effect as if the reference to 26 weeks after the commencement or increase were a reference to 26 weeks after the day on which the balance is reduced to nil.

(1B) If:

(a) either:

(i) the partner of the person first referred to in subsection (1) commences employment; or

(ii) there is an increase in the ordinary income from employment of the partner of the person so referred to; and

(b) at the start of the instalment period of the partner in which the commencement or increase occurs:

(i) the partner is a working credit participant or a person to whom the student income bank applies; and

(ii) the partner’s working credit balance or student income bank balance is greater than nil; and

(d) the person is not qualified for a pensioner concession card under section 1061ZEA;

paragraph (1)(e) has effect as if the reference to 26 weeks after the commencement or increase were a reference to 26 weeks after the day on which the balance is reduced to nil.

(1C) If the person:

(a) is qualified for a pensioner concession card under section 1061ZEA until a particular day; and

(b) has, immediately before becoming so qualified, been receiving a social security benefit referred to in paragraph 1061ZA(2)(b) for a continuous period of less than 39 weeks;

the person is taken, for the purpose of the reference in paragraph (1)(a) to a continuous period of not less than 39 weeks, to be receiving the benefit until the particular day.

(2) Subject to subsection (4), subsection (1) (including that subsection as modified by subsection (1A), (1B) or (1C)) only applies to a person while the person is in Australia and is an Australian resident.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(3) If, during the period of 26 weeks referred to in subsection (1) (including that subsection as modified by subsection (1A) or (1B)), a person receives an instalment of a social security pension that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

(4) In spite of subsection (2), subsection (1) (including that subsection as modified by subsection (1A), (1B) or (1C)) applies to a person when:

(a) the person is in Australia; and

(b) the social security benefit that the person had been receiving was received solely because of the operation of the scheduled international agreement between Australia and New Zealand.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

1061ZD Extended qualification rule: former recipient of disability support pension

(1) Subject to subsections (5), (5A) and (7), a person is qualified for a pensioner concession card for the period of 52 weeks starting on the day on which this section begins to apply to the person.

(2) Subject to subsection (4), this section applies to a person if:

(a) the person has been receiving a disability support pension; and

(b) the person commences employment that requires him or her to work for at least 30 hours per week; and

(c) because of the commencement of that employment, the person ceases (having regard, where appropriate, to the operation of section 1073J) to be qualified for the disability support pension.

(3) Subject to subsection (4), this section applies to a person if:

(a) the person has been receiving a disability support pension; and

(b) because there is an increase in the person’s ordinary income from employment (and after any working credit balance of the person is reduced to nil), the disability support pension ceases to be payable to the person.

(4) Subject to subsection (6), this section only applies to a person while the person is in Australia and is an Australian resident.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(5) If, during the period of 52 weeks referred to in subsection (1), a person receives an instalment of a social security pension that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

(5A) If, during the period of 52 weeks referred to in subsection (1), a person receives an instalment of:

(a) a youth allowance while subsection 1061ZA(2A) applies to the person; or

(b) a jobseeker payment while subsection 1061ZA(2B) applies to the person; or

that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

(6) In spite of subsection (4), this section applies to a person in relation to a day if:

(a) the person is in Australia on that day; and

(b) the disability support pension that the person had been receiving was received solely because of the operation of the scheduled international agreement between Australia and New Zealand.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(7) This section does not apply in any case where a person is qualified for a pensioner concession card under section 1061ZEB.

1061ZDA Extended qualification rule: former recipient of pension PP (single)

(1) If:

(a) a pension PP (single) has been payable to a person; and

(b) the person ceases to be qualified for that payment because, on a day, the person’s youngest child turns 8; and

then, subject to subsections (2) and (3), the person is qualified for a pensioner concession card for the period of 12 weeks starting on that day.

Other qualification for pensioner concession card

(2) If, during that 12‑week period, the person receives an instalment of:

(a) a youth allowance while subsection 1061ZA(2A) applies to the person; or

(b) a jobseeker payment while subsection 1061ZA(2B) applies to the person; or

(d) a social security pension;

Person must be in Australia

(3) Subject to subsection (4), this section only applies to a person while the person is in Australia and is an Australian resident.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(4) Despite subsection (3), this section applies to a person in relation to a day if:

(a) the person is in Australia on that day; and

(b) the pension PP (single) that had been payable to the person was payable solely because of the operation of the scheduled international agreement between Australia and New Zealand.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

1061ZEA Further extended qualification rule: loss of payment because of employment income

(1) This section does not apply in any case where a person is qualified for a pensioner concession card under section 1061ZD, 1061ZDA or 1061ZEB.

(2) If:

(a) a person is receiving a social security pension or a social security benefit; and

(b) the person’s rate of payment of the pension or benefit is worked out with regard to the income test module of a rate calculator in Chapter 3; and

(d) the person is qualified for a pensioner concession card; and

(e) the person or the person’s partner has employment income; and

(f) a payment mentioned in subsection 1061ZA(1) ceases to be payable to the person or the person ceases to receive a payment mentioned in subsection 1061ZA(2), (2A), (2B) or (2D):

(i) if paragraph (e) applies to the person—because of the employment income of the person (either alone or in combination with any other ordinary income earned, derived or received, or taken to have been earned, derived or received, by the person); or

(ii) if paragraph (e) applies to the partner—because of the employment income of the partner (either alone or in combination with any other ordinary income earned, derived or received, or taken to have been earned, derived or received, by the partner); and

(g) but for the employment income, or the combined income, referred to in paragraph (f), the person would have been, or would have continued to be, qualified for a pensioner concession card:

(i) under subsection 1061ZA(1)—because the payment referred to in that subsection would have continued to be payable to the person; or

(ii) under subsection 1061ZA(2), (2A), (2B) or (2D)—because the person would have continued to receive the payment referred to in that subsection; and

(ga) the person:

(ii) in the case of a person to whom pension PP (single) ceases to be payable, or who ceases to receive benefit PP (partnered)—continues, but for the requirement to have at least one PP child, to be qualified for that pension or benefit; and

(iia) in the case of a person who is a principal carer of a child and who ceases to receive youth allowance—continues, but for the fact that paragraph 540(1)(a) no longer applies to the person, to be qualified for youth allowance; and

(iib) in the case of a person who is a principal carer of a child and who ceases to receive jobseeker payment—continues, but for the fact that either or both of paragraphs 593(1)(a) and (b) no longer apply to the person, to be qualified for jobseeker payment; and

(iii) in any other case—continues to be qualified for the payment referred to in section 1061ZA;

the person is qualified for a pensioner concession card until:

(h) 12 weeks after the end of the instalment period in which the payment ceases to be payable to the person or the person ceases to receive the payment, as the case requires; or

(j) the day the person would cease to be qualified for a pensioner concession card as mentioned in paragraph (g) for a reason other than the employment income, or the combined income, referred to in paragraph (f); or

(k) the day the person ceases to be qualified as mentioned in paragraph (ga);

whichever happens first.

Note: For principal carer see subsections 5(15) to (24). See also subsection (2A) of this section.

(2A) If a person is the principal carer of a child who dies, the person is taken, for the purposes of subparagraphs (2)(ga)(iia) and (iib), to continue to be the principal carer of the child during the period of 14 weeks that starts on the day of the child’s death.

(3) Subject to subsection (5), subsection (2) only applies to a person while the person is in Australia and is an Australian resident.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(4) If, during the period of 12 weeks referred to in subsection (2), a person receives an instalment of social security pension that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or the days in relation to which the person receives the instalment.

(5) In spite of subsection (3), subsection (2) applies to a person when:

(a) the person is in Australia; and

(b) the social security pension or the social security benefit that the person had been receiving was received solely because of the operation of the scheduled international agreement between Australia and New Zealand.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

1061ZEB Extended qualification rule: persons with a partial capacity to work

(1) A person is qualified for a pensioner concession card for the period of 52 weeks starting on the day on which this section begins to apply to the person.

(2) Subject to subsection (3), this section applies to a person if:

(a) either:

(i) the person has been receiving a youth allowance while the person was not undertaking full‑time study and was not a new apprentice; or

(ii) the person has been receiving a jobseeker payment; or

(iii) the person has been receiving parenting payment; and

(b) because there is an increase in the person’s ordinary income from employment (and after any working credit balance of the person is reduced to nil), the youth allowance, jobseeker payment or parenting payment ceases to be payable to the person; and

(i) was qualified for a pensioner concession card under subsection 1061ZA(2A), (2B) or (2D); or

(ii) was qualified for a pensioner concession card under subsection 1061ZA(1) because a pension PP (single) was payable to the person; and

(d) at the time of the cessation the person had a partial capacity to work.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

Note 3: For partial capacity to work see section 16B.

(3) This section only applies to a person while the person is in Australia and is an Australian resident.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a pensioner concession card for a maximum period of up to 6 weeks (see Division 4).

(4) If, during the period of 52 weeks referred to in subsection (1), a person receives an instalment of:

(a) a youth allowance while subsection 1061ZA(2A) applies to the person; or

(b) a jobseeker payment while subsection 1061ZA(2B) applies to the person; or

(ba) a benefit PP (partnered) while subsection 1061ZA(2D) applies to the person; or

1061ZEC Effect of compliance penalty periods

(1) For the purposes of this Division, a social security payment is taken to be payable to a person if the payment would be payable to the person except for the application of a compliance penalty period.

Note: For compliance penalty period see subsection 23(1).

(2) For the purposes of this Division, a social security payment is taken to have ceased to be payable to a person if:

(a) the payment would have ceased to be payable to the person if the payment had been payable to the person; and

(b) the payment was not payable to the person because of the application of a compliance penalty period.

Note: For compliance penalty period see subsection 23(1).

(3) In this section:

(a) a reference to a social security payment being payable to a person includes, in appropriate cases, a reference to the person receiving the payment; and

(b) a reference to a social security payment ceasing to be payable to a person includes, in appropriate cases, a reference to the person ceasing to receive the payment.

1061ZF Issue of pensioner concession card

The Secretary must issue a pensioner concession card to a person who is qualified for such a card.

Division 2—Qualification for seniors health card

1061ZG Qualification rules

(1) Subject to subsection (2) and sections 1061ZJA and 1061ZJB, a person is qualified for a seniors health card on a day if, on that day, the person:

(a) has reached pension age; and

(b) is an Australian resident or a special category visa holder residing in Australia; and

(d) satisfies the seniors health card income test; and

(e) is not receiving a social security pension or benefit; and

(f) is not receiving a service pension, income support supplement or a veteran payment; and

(g) is not subject to a newly arrived resident’s waiting period.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a seniors health card for a maximum period of up to 19 weeks (see Division 4).

(2) A person is not qualified for a seniors health card on a day if:

(a) the person has failed to comply with section 1061ZJ in respect of the reference tax year; or

(aa) on that day the person is the holder of a seniors health card under the Veterans’ Entitlements Act; or

(b) where the person made an estimate of taxable income for the reference tax year and the estimate was accepted—the person did not give the Secretary a copy of a notice of assessment of the person’s taxable income for that tax year within 52 weeks after the end of that tax year.

Note: If a person is qualified for a seniors health card, the Secretary must not make a determination granting a claim for the card in certain circumstances if the Secretary makes a request under subsection 75(2) or (3) of the Administration Act of the person (about providing tax file numbers): see subsection 77(1) of that Act.

(3) In subsection (2):

reference tax year has the same meaning as in the Seniors Health Card Income Test Calculator.

1061ZH Newly arrived resident’s waiting period

(1) Subject to this section, for the purposes of this Division, a person who:

(a) has entered Australia; and

(b) has not been both:

(i) an Australian resident or a special category visa holder residing in Australia; and

(ii) in Australia;

for a period of, or for periods totalling, 208 weeks;

is subject to a newly arrived resident’s waiting period.

(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a seniors health card.

Note: For qualifying residence exemption in relation to a seniors health card, see paragraph 7(6AA)(f).

(3) Subsection (1) does not apply to a person if:

(a) the person is a refugee, or a former refugee, at the time the person made the claim for a seniors health card; or

(b) the following apply:

(i) before the person made the claim for a seniors health card, the person was a family member of another person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the time the person made the claim for a seniors health card or, if that other person has died, the person was a family member of that other person immediately before that other person died; or

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D); and

(b) former refugee has the meaning given by subsection 7(1); and

1061ZI 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 on which the person first became an Australian resident or a special category visa holder residing in Australia; and

(b) ends when the person has been both:

(i) an Australian resident or a special category visa holder residing in Australia; and

(ii) in Australia;

for a period of, or for periods totalling, 208 weeks.

1061ZJ Giving of copy of assessment of taxable income to Secretary

If a person who is the holder of a seniors health card receives a notice of assessment or amended assessment of his or her taxable income for a particular tax year, the person must, if requested by the Secretary to do so, give a copy of the notice to the Secretary within 13 weeks after the day on which the notice was received.

1061ZJA Modifications if person’s rate of social security pension is nil on 1 January 2017

(1) This section applies in relation to a person if:

(a) immediately before 1 January 2017, the person was receiving a social security pension; and

(b) the Secretary is satisfied that the rate of that pension is nil on 1 January 2017 because of the operation of the amendments made by Part 1 of Schedule 3 to the Social Services Legislation Amendment (Fair and Sustainable Pensions) Act 2015.

Seniors health card income test does not apply

(2) In determining whether the person is qualified for a seniors health card at any time on or after 1 January 2017, paragraph 1061ZG(1)(d) does not apply to the person.

Automatic issue of seniors health card

(3) If the person is qualified for a seniors health card on 1 January 2017, the Secretary must issue a seniors health card to the person.

Note: The person does not need to make a claim for the card.

(4) If:

(a) on 1 January 2017, the person is outside Australia; and

(b) the person returns to Australia before the end of the period of 19 weeks beginning on the day the person left Australia; and

the Secretary must issue a seniors health card to the person.

Note 1: The person does not need to make a claim for the card.

Note 2: If the person returns to Australia after the end of that 19‑week period, the person will need to make a claim for a seniors health card.

1061ZJB Other modifications because of Veterans’ Entitlements Act

If section 118XA of the Veterans’ Entitlements Act applies in relation to a person, then, in determining whether the person is qualified for a seniors health card under this Division at any time on or after 1 January 2017, paragraph 1061ZG(1)(d) does not apply to the person.

Division 3—Qualification for health care card

Subdivision A—Qualification for automatic issue health care card

1061ZK Qualification: general rules

(1) A person is qualified for a health care card on a day if this section applies to the person on that day.

(2) This section applies to a child on a day if a person is qualified under Part 2.19 for carer allowance for the child on that day.

(3) This section applies to a disabled child on a day if all of the following paragraphs are satisfied on that day:

(a) the child is or would, but for subsection 5(3), be a dependent child of another person (the carer);

(b) because of his or her disability, the child needs, on a daily basis, a level of care and attention that is substantially more than that needed by a person of the same age who does not have a physical, intellectual or psychiatric disability;

(i) if the carer is a member of a couple—the carer, the carer’s partner or the carer together with another person (whether or not the carer’s partner); or

(ii) if the carer is not a member of a couple—the carer or the carer together with another person;

(d) that care and attention is received in a private home that is the residence of the child and the carer;

(e) the carer satisfies the carer allowance income test under section 957A.

Note: For disabled child, see subsection (8).

(3A) This section applies to a person on a day if a person is qualified under section 197G or 197H or subsection 198AA(4) or (5) (whether or not because of section 197F) for a carer payment on that day.

(4) This section applies to a person on a day if, on that day:

(a) the person is entitled, under the Family Assistance Administration Act, to be paid family tax benefit by instalment; and

(b) the person’s daily rate of family tax benefit consists of, or includes, a Part A rate calculated under Part 2 or 3A of Schedule 1 to the Family Assistance Act that is greater than nil (disregarding reductions (if any) under clause 5 of that Schedule); and

(c) the person’s income excess for the purposes of Division 2C of Part 5 of Schedule 1 to the Family Assistance Act is nil.

(4A) This section applies to a person on a day if, on that day:

(a) the person has a regular care child; and

(b) the person is not entitled, under the Family Assistance Administration Act, to be paid family tax benefit by instalment; and

(c) the person’s income excess for the purposes of Division 2C of Part 5 of Schedule 1 to the Family Assistance Act is nil.

(5) This section applies to a person (other than a person who is qualified for a pensioner concession card because of subsection 1061ZA(2A), (2B), (2D) or (2E)) on a day if on that day the person is receiving:

(a) a youth allowance; or

(b) an austudy payment; or

(f) benefit PP (partnered); or

(h) special benefit.

(6) This section applies to a person on a day if on that day:

(a) the person is receiving a payment under the ABSTUDY Scheme that includes an amount identified as living allowance, where the person satisfies the eligibility criteria for that payment; or

(b) another person, on behalf of the person, is receiving a payment under the ABSTUDY Scheme that includes an amount identified as living allowance.

(7) This section applies to a person on a day if, on that day, the person is receiving mobility allowance.

(8) In subsection (3):

disabled child means a person aged under 16 years and 3 months who:

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

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

(9) This section has effect subject to section 1061ZN.

1061ZM Qualification for health care card: employment‑affected person

(1) Subject to subsection (2), if:

(a) either:

(i) a person who is an employment‑affected person or the partner of such a person commences employment; or

(ii) there is an increase in the ordinary income from employment of a person who is an employment‑affected person or the partner of such a person; and

(b) because either:

(i) the person or the partner commences employment; or

(ii) there is an increase in the ordinary income of the person or the partner from employment;

the person ceases to be an employment‑affected person; and

the person is qualified for a health care card for the period of 26 weeks starting on the day on which the person ceases to be an employment‑affected person.

(1A) If the person is qualified for a health care card under section 1061ZMA until a day (the particular day), subsection (1) has effect as if the reference to 26 weeks starting on the day on which the person ceases to be an employment‑affected person were a reference to 26 weeks starting on the particular day.

(1B) If the person:

(a) was an employment‑affected person because of receiving pension PP (single); and

(b) is qualified for a pensioner concession card under section 1061ZEA until a day (the particular day);

subsection (1) has effect as if the reference to the period of 26 weeks starting on the day on which the person ceases to be an employment‑affected person were a reference to the period starting on the particular day and ending 26 weeks after the person ceases to be an employment‑affected person.

(1BA) If the person:

(a) was an employment‑affected person because of receiving youth allowance or jobseeker payment; and

(b) was, on the day on which the person ceased to be an employment‑affected person, the principal carer of at least one child; and

Note: For principal carer see subsections 5(15) to (24).

(1C) If the person:

(a) is qualified for a health care card under section 1061ZMA until a particular day; and

(b) has, immediately before the commencement or increase mentioned in subsection (1), been a qualified recipient because of receiving jobseeker payment or youth allowance, other than while undertaking full‑time study or being a new apprentice, for a continuous period of less than 52 weeks;

the person is taken, for the purpose of the reference in paragraph (1)(c) to a continuous period of 52 weeks, to be receiving the payment or allowance until the particular day.

(2) If, during the period of 26 weeks referred to in subsection (1) (including that subsection as modified by subsection (1A)) or the period provided by subsection (1B), a person receives a payment of a social security pension or benefit specified in the definition of employment‑affected person in subsection (3) that relates to one or more days within that period, the person ceases to be qualified under this section for a health care card on the day on which the person receives the payment.

(3) In this section:

employment‑affected person means:

(a) a person who is receiving any of the following:

(i) pension PP (single);

(ii) jobseeker payment;

(iv) special benefit; or

(b) a person who is receiving a youth allowance but who:

(i) is not undertaking full‑time study; and

(ii) is not a new apprentice.

qualified recipient means:

(a) a person who is receiving:

(i) a social security pension, other than a pension under Part 2.16; or

(ii) a social security benefit, other than a youth allowance or austudy payment; or

(b) a person who is receiving a youth allowance but who:

(i) is not undertaking full‑time study; and

(ii) is not a new apprentice.

(4) This section has effect subject to section 1061ZN.

1061ZMA Further extended qualification rule: loss of payment because of employment income

(2) If:

(a) a person is receiving a social security pension or a social security benefit; and

(b) the person’s rate of payment of the pension or benefit is worked out with regard to the income test module of a rate calculator in Chapter 3; and

(d) the person is qualified for a health care card; and

(e) the person or the person’s partner has employment income; and

(f) the person ceases to receive a payment mentioned in subsection 1061ZK(5):

(g) but for the employment income, or the combined income, referred to in paragraph (f), the person would have been, or would have continued to be, qualified for a health care card under section 1061ZK because the person would have continued to receive the payment mentioned in subsection 1061ZK(5); and

(ga) the person:

(i) in the case of a person who ceases to receive benefit PP (partnered)—continues, but for the requirement to have at least one PP child, to be qualified for that benefit; and

(ii) in any other case—continues to be qualified for the payment referred to in subsection 1061ZK(5);

the person is qualified for a health care card until:

(h) 12 weeks after the end of the instalment period in which the person ceases to receive the pension or benefit; or

(j) the day the person would cease to be qualified for a health care card as mentioned in paragraph (g) for a reason other than the employment income, or the combined income, referred to in paragraph (f); or

(k) the day the person ceases to be qualified as mentioned in paragraph (ga);

whichever happens first.

(3) If, during the period of 12 weeks referred to in subsection (2), a person receives a payment of a social security pension or benefit specified in the definition of employment‑affected person in subsection (4) that relates to one or more days within that period, the person ceases to be qualified under this section for a health care card on the day on which the person receives the payment.

(4) In this section:

employment‑affected person has the same meaning as it has for the purposes of section 1061ZM.

(5) This section has effect subject to section 1061ZN.

1061ZN Residence requirement

(1) Sections 1061ZK, 1061ZM and 1061ZMA only have effect in relation to a person on a day on which:

(a) the person is in Australia and is:

(i) an Australian resident or a special category visa holder residing in Australia; or

(ii) the holder of a visa included in a class of visas determined by the Minister for the purposes of this paragraph; or

(iii) a person declared by the Minister to be a person to whom this subparagraph applies; or

(b) the person:

(i) is in Australia; and

(ii) is receiving a social security pension or benefit solely because of the operation of the scheduled international agreement between Australia and New Zealand.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a health care card for a maximum period of up to 6 weeks (see Division 4).

(2) The Minister may, by legislative instrument, declare that a person who:

(a) is included in a specified class of persons; and

(b) is, or has been, in Australia in specified circumstances;

is a person to whom subparagraph (1)(a)(iii) applies.

(3) The circumstances that may be specified in a declaration under subsection (2) include circumstances that existed or exist at any time before or after the making of the declaration.

1061ZNA Effect of compliance penalty periods

(1) For the purposes of this Subdivision, a person is taken to have been receiving, or to be receiving, a social security pension or social security benefit if the person would have been receiving, or would be receiving, the pension or benefit except for the application of a compliance penalty period.

Note: For compliance penalty period see subsection 23(1).

(2) For the purposes of this Subdivision, a person is taken to have ceased to receive a social security pension or social security benefit if:

(a) the person would have ceased to receive the pension or benefit if the person had been receiving it; and

(b) the person had not been receiving the pension or benefit because of the application of a compliance penalty period.

Note: For compliance penalty period see subsection 23(1).

Subdivision B—Qualification for health care card in other circumstances

1061ZO Qualification

(1) A person is qualified for a health care card on a day if this section applies to the person on that day.

(2) This section applies to a person on a day if, on that day:

(a) in the case of a child—the person is:

(i) an Australian resident or a special category visa holder residing in Australia; or

(ii) living in Australia with an Australian resident or with a special category visa holder residing in Australia; and

(b) in the case of a person other than a child—the person is:

(i) an Australian resident or a special category visa holder residing in Australia; and

(ii) in Australia; and

(d) the person satisfies the health care card income test.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a health care card for a maximum period of up to 6 weeks (see Division 4).

(3) This section applies to a person on a day if, on that day, the person:

(a) is an Australian resident or a special category visa holder residing in Australia; and

(b) is in Australia; and

(d) is not undertaking secondary studies; and

(e) satisfies the health care card income test.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a health care card for a maximum period of up to 6 weeks (see Division 4).

(4) This section applies to a person on a day if, on that day, the person:

(a) is an Australian resident or a special category visa holder residing in Australia; and

(b) is in Australia; and

(d) satisfies the health care card income test.

Note: If the person is temporarily absent from Australia, the person continues to be qualified for a health care card for a maximum period of up to 6 weeks (see Division 4).

(5) This section applies to a child on a day if:

(a) on that day, the child is in foster care; and

(b) the child is living in Australia with an Australian resident or with a special category visa holder residing in Australia.

(7) The Minister may, by legislative instrument, declare that a person who:

(a) is included in a specified class of persons; and

(b) is, or has been, in Australia in specified circumstances;

is a person to whom this section applies.

(8) The circumstances that may be specified in a declaration under subsection (7) include circumstances that existed or exist at any time before or after the making of the declaration.

(9) This section applies to a person on a day if:

(a) on that day, the person:

(i) is aged at least 16 and has not turned 26; and

(ii) is a full‑time student; and

(iii) is an Australian resident; and

(iv) is living in Australia; and

(b) on the day before the person turned 16:

(i) another person was qualified under Part 2.19 for carer allowance for the person; or

(ii) subsection 1061ZK(3) applied to the person; and

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

1061ZP Person subject to newly arrived resident’s waiting period

This Subdivision does not apply to a person while the person is subject to a newly arrived resident’s waiting period.

1061ZQ Newly arrived resident’s waiting period

(1) Subject to this section, for the purposes of this Division, a person who has entered Australia is subject to a newly arrived resident’s waiting period.

(2) Subsection (1) does not apply to a person who:

(a) has a qualifying residence exemption for a health care card; or

(b) has an FTB child; or

(c) has been an Australian resident, or a special category visa holder residing in Australia, and in Australia for a period of, or for periods totalling, 208 weeks; or

(d) holds, or formerly held, a visa included in a class of visas determined by the Minister for the purposes of subsection 739A(6); or

(e) is not subject to a newly arrived resident’s waiting period under subsection 739A(1) or (2) because of the operation of subsection 739A(7).

Note: For paragraph (a): for qualifying residence exemption in relation to a health care card, see paragraph 7(6AA)(f).

(3) Subsection (1) does not apply to a person if:

(a) the person is a refugee, or a former refugee, at the time the person made the claim for a health care card; or

(b) the following apply:

(i) before the person made the claim for a health care card, the person was a family member of another person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the time the person made the claim for a health care card or, if that other person has died, the person was a family member of that other person immediately before that other person died; or

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D); and

(b) former refugee has the meaning given by subsection 7(1); and

1061ZR Duration of newly arrived resident’s waiting period

(1) Subject to subsection (2), if a person is subject to a newly arrived resident’s waiting period, the period:

(a) starts on the day on which the person first became an Australian resident or a special category visa holder residing in Australia; and

(b) ends when the person has been both:

(i) an Australian resident or a special category visa holder residing in Australia; and

(ii) in Australia;

for a period of, or for periods totalling, 208 weeks.

(2) If:

(a) a person is subject to a newly arrived resident’s waiting period; and

(b) before, on or after the commencement of this subsection, the person applied for a visa that is in a class of visas determined by the Minister for the purposes of paragraph 739A(3)(b);

the waiting period:

(d) ends when the person has been in Australia for a period of, or for periods totalling, 208 weeks after that day.

Subdivision C—Miscellaneous provisions relating to health care cards

1061ZS Issue of health care cards

The Secretary must issue an automatic issue health care card to a person who is qualified for such a card.

1061ZT Certain dependants not qualified for health care card

(1) Subject to subsection (2), a person is not qualified for a health care card in respect of any day on which the person:

(a) is a dependant of any person; or

(b) is wholly or substantially dependent on:

(i) a resident of; or

(ii) a corporation carrying on business in; or

(iii) the government of;

a country other than Australia.

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

(a) a person who is the partner of another person; or

(b) a person who is qualified for a health care card under subsection 1061ZK(2) or (3) or subsection 1061ZO(3), (4), (5) or (9).

Division 4—Non‑cancellation of concession cards for temporary overseas absences

1061ZUA Persons to whom Division applies

(1) This Division applies to a person if:

(a) the person leaves Australia temporarily (see subsection (2)); and

(b) the person is continuously absent from Australia during a period (the period of absence) beginning on the day the person leaves Australia; and

(i) immediately before the period of absence commences, the person was the holder of a concession card;

(ii) during the period of absence, the person’s claim for a seniors health card or a health care card is granted under the Administration Act;

(iii) during the period of absence, the person is issued an automatic issue card.

(2) For the purposes of paragraph (1)(a), in determining if an absence is temporary, regard must be had to:

(a) the purpose of the absence; and

(b) the intended duration of the absence.

1061ZUB Non‑cancellation of concession cards for temporary overseas absences

(1) Throughout the person’s maximum non‑cancellation period (see subsection (3)), the person’s qualification for the concession card is not affected merely by the absence.

(2) For a concession card (other than a seniors health card), throughout so much (if any) of the period of absence as occurs after the end of the period of 6 weeks beginning on the day the person leaves Australia, the person is not qualified for the concession card.

(2A) For a concession card that is a seniors health card, throughout so much (if any) of the period of absence as occurs after the end of the period of 19 weeks beginning on the day the person leaves Australia, the person is not qualified for the concession card.

(3) For the purposes of subsection (1), a person’s maximum non‑cancellation period is the shorter of the following periods:

(a) the person’s period of absence;

(b) the following:

(i) for a concession card (other than a seniors health card)—the period of 6 weeks beginning on the day the person leaves Australia;

(ii) for a concession card that is a seniors health card—the period of 19 weeks beginning on the day the person leaves Australia.

1061ZUC Extension cards

(1) This section applies if:

(a) a person qualifies for a concession card under the following section (the qualification section):

(i) section 1061ZC, 1061ZD, 1061ZDA, 1061ZEB or 1061ZM;

(ii) section 1061ZEA as a result of the operation of subsection 1061ZEA(2A); and

(b) as a result of subsection 1061ZUB(1), the person’s qualification for the card is not affected by a period of absence; and

(d) after that time, the person returns to Australia; and

(e) the person qualifies again for the card under the qualification section (and in the case of section 1061ZEA, the person qualifies as a result of the operation of subsection 1061ZEA(2A)); and

(f) the period for which the person was qualified under the qualification section has not yet ended.

(2) To avoid doubt, the person continues to qualify for the concession card until the end of the period for which the person was qualified under the qualification section (unless the person ceases to be qualified for the card at an earlier time).

Chapter 2AA—Student start‑up loans

Part 2AA.1—Introduction

1061ZVAA Simplified outline of this Chapter

Student start‑up loans are social security payments that are income‑contingent loans.

Broadly, full‑time students who are receiving youth allowance or austudy might be qualified for a student start‑up loan. A person can qualify for up to 2 loans each calendar year. To receive a loan, a person must make a claim before the end of the relevant period for each loan.

Once the person’s income exceeds the minimum repayment income under the Higher Education Support Act 2003 and the person has finished repaying any debt under that Act and certain other income‑contingent loan schemes, the person must start repaying debt in relation to student start‑up loans.

Part 2AA.2—Qualification for and amount of student start‑up loan

1061ZVBA Simplified outline of this Part

Broadly, full‑time students who are receiving youth allowance or austudy might be qualified for a student start‑up loan. A person can qualify for up to 2 loans each calendar year.

1061ZVBB Qualification for student start‑up loan

Receiving youth allowance

(1) A person is qualified for a student start‑up loan for a qualification period if:

(a) on the person’s qualification test day for the period:

(i) the person is qualified for youth allowance and youth allowance is payable to the person; and

(ii) the person is receiving youth allowance and would be receiving youth allowance if steps 2 and 3 of the method statement in point 1067G‑A1 of the Youth Allowance Rate Calculator were disregarded for the purposes of working out the person’s rate of that allowance; and

(iii) the person is qualified for youth allowance under section 540 in circumstances where subparagraph 540(1)(a)(i) (about full‑time study) applies and the relevant course of education is an approved scholarship course; and

(b) the Secretary is satisfied that the person is not likely to receive the amount or value of a disqualifying education costs scholarship in the period of 6 months starting immediately after that qualification test day; and

Note 1: For approved scholarship course, see section 592M.

Note 2: If the condition in subparagraph (a)(iii) is no longer met in a certain period starting on the qualification test day, the amount of the loan might become an immediately recoverable debt, rather than an income‑contingent SSL debt: see subsection 1223ABF(1).

Receiving austudy payment

(2) A person is qualified for a student start‑up loan for a qualification period if:

(a) on the person’s qualification test day for the period:

(i) the person is qualified for austudy payment and austudy payment is payable to the person; and

(ii) the person is receiving austudy payment and would be receiving austudy payment if steps 2 and 2A of the method statement in point 1067L‑A1 of the Austudy Payment Rate Calculator were disregarded for the purposes of working out the person’s rate of that payment; and

(iii) the person is qualified for austudy payment under section 568 in circumstances where subsection 569(1) (about qualifying study) applies and the relevant course of education is an approved scholarship course; and

Note 1: For approved scholarship course, see section 592M.

Note 2: The person might incur a debt if the condition in subparagraph (a)(iii) is no longer met in a certain period starting on the qualification test day: see subsection 1223ABF(1).

Qualification test day

(3) A person’s qualification test day for a qualification period is the earliest of the following:

(a) the day the Secretary determines the person’s claim for a student start‑up loan for the qualification period;

(b) if the approved scholarship course ends in the qualification period—the last day of the approved scholarship course;

1061ZVBC Circumstances in which person is not qualified for student start‑up loan

Despite section 1061ZVBB, a person is not qualified for a student start‑up loan for a qualification period if:

(a) immediately before the person’s qualification test day for the period:

(i) a determination is in effect that the person is qualified for a student start‑up loan for the qualification period; or

(ii) a determination is in effect that the person is qualified for an ABSTUDY student start‑up loan under the Student Assistance Act 1973 for the qualification period; or

(b) in the period of 6 months ending immediately before that qualification test day, the person:

(i) has received a payment known as a student start‑up scholarship payment under the scheme referred to in section 117 of the Veterans’ Entitlements Act; or

(ii) has received a payment known as a student start‑up scholarship payment under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act; or

(iii) has received the amount or value of a disqualifying education costs scholarship; or

(iv) was entitled to the amount or value of a disqualifying education costs scholarship but has not received the full entitlement only because the scholarship was suspended.

1061ZVBD Amount of student start‑up loan

The amount of a student start‑up loan for which a person is qualified is $1,025.

Note: The amount of the loan is to be indexed on each 1 January in line with CPI increases (see sections 1190 to 1194).

Part 2AA.3—Indebtedness

Division 1—Introduction

1061ZVCA Simplified outline of this Part

A person incurs an SSL debt if the person receives a student start‑up loan (except in certain circumstances when the loan is required to be recovered as a social security debt under this Act).

Each SSL debt is incorporated into the person’s accumulated SSL debt. This accumulated SSL debt forms the basis for working out the amounts the person is obliged to repay.

Division 2—Incurring SSL debts

1061ZVDA SSL debts

(1) A person incurs an SSL debt to the Commonwealth if the person is paid a student start‑up loan for a qualification period.

(2) The SSL debt is incurred by the person on the later of:

(a) the day the person was paid the loan; and

(b) the day after the person’s enrolment test day for the qualification period.

Note: For enrolment test day, see subsection (5).

(3) The amount of the person’s SSL debt is the amount of the loan, reduced by any amount repaid before the day on which the debt is incurred.

(4) Despite subsection (1), an SSL debt is not incurred, and is taken never to have been incurred, in relation to a loan if:

(a) the loan has been fully repaid before the day on which the SSL debt in respect of the loan would be incurred; or

(b) the amount of the loan is a debt under section 1223 or 1223ABF; or

(c) the Secretary has formed an opinion under subsection 1223ABF(3) in relation to the loan (relating to exceptional circumstances beyond the person’s control).

(5) A person’s enrolment test day, for a qualification period, is the earliest of the following days:

(a) if the relevant approved scholarship course ends in the qualification period—the last day of that approved scholarship course;

(b) the last day of the qualification period;

(i) if the person’s qualification test day for the qualification period was before the first day of the relevant approved scholarship course—the first day of that approved scholarship course;

(ii) otherwise—the qualification test day.

Note: For approved scholarship course, see section 592M.

1061ZVDB SSL debt discharged by death

Upon the death of a person who owes an SSL debt to the Commonwealth, the debt is taken to have been paid.

Note: SSL debts are not provable in bankruptcy: see subsection 82(3AB) of the Bankruptcy Act 1966.

1061ZVDC Notice to Commissioner

(1) If a person incurs an SSL debt, the Secretary must give the Commissioner a notice specifying the amount of the debt incurred by the person.

(2) The Secretary may include in the notice any other details the Commissioner requests for the purpose of ensuring the Commissioner has the information needed to exercise powers or perform functions of the Commissioner under this Act.

Division 3—Working out accumulated SSL debts

1061ZVEA Simplified outline of this Division

There are 2 stages to working out a person’s accumulated SSL debt for a financial year.

In stage 1, the person’s former accumulated SSL debt is worked out by adjusting the preceding financial year’s accumulated SSL debt to take account of:

(a) the HELP debt indexation factor for 1 June in that financial year; and

(b) the debts that the person incurs during the last 6 months of the preceding financial year; and

(d) compulsory SSL repayment amounts in respect of the debt.

In stage 2, the person’s accumulated SSL debt is worked out from:

(a) the person’s former accumulated SSL debt; and

(b) the SSL debts that the person incurs during the first 6 months of the financial year; and

1061ZVEB Stage 1—working out a former accumulated SSL debt

(1) A person’s former accumulated SSL debt, in relation to the person’s accumulated SSL debt for a financial year, is worked out by multiplying:

(a) the amount worked out using the following method statement; by

(b) the HELP debt indexation factor for 1 June in that financial year.

Method statement

Step 1. Take the person’s accumulated SSL debt for the immediately preceding financial year. (This amount is taken to be zero if the person has no accumulated SSL debt for that financial year.)

Step 2. Add the sum of all of the SSL debts (if any) that the person incurred during the last 6 months of the immediately preceding financial year.

Step 3. Subtract the sum of the amounts by which the person’s debts referred to in steps 1 and 2 are reduced because of any voluntary SSL repayments that have been made during the period:

(a) starting on 1 June in the immediately preceding financial year; and

(b) ending immediately before the next 1 June.

Step 4. Subtract the sum of all of the person’s compulsory SSL repayment amounts that:

(a) were assessed during that period (excluding any assessed as a result of a return given before that period); or

(b) were assessed after the end of that period as a result of a return given before the end of that period.

Step 5. Subtract the sum of the amounts by which any compulsory SSL repayment amount of the person is increased (whether as a result of an increase in the person’s taxable income of an income year or otherwise) by an amendment of an assessment made during that period.

Step 6. Add the sum of the amounts by which any compulsory SSL repayment amount of the person is reduced (whether as a result of a reduction in the person’s taxable income of an income year or otherwise) by an amendment of an assessment made during that period.

(2) For the purposes of this section, an assessment, or an amendment of an assessment, is taken to have been made on the day specified in the notice of assessment, or notice of amended assessment, as the date of issue of that notice.

1061ZVEC Stage 2—working out an accumulated SSL debt

(1) A person’s accumulated SSL debt, for a financial year, is worked out as follows:

where:

former accumulated SSL debt is the person’s former accumulated SSL debt in relation to that accumulated SSL debt.

SSL debt repayments is the sum of all of the voluntary SSL repayments (if any) paid, on or after 1 July in the financial year and before 1 June in that year, in reduction of the SSL debts incurred in that year.

SSL debts incurred is the sum of the amounts of all of the SSL debts (if any) that the person incurred during the first 6 months of the financial year.

(2) The person incurs the accumulated SSL debt on 1 June in the financial year.

1061ZVED Rounding of amounts

(1) If, apart from this section, a person’s accumulated SSL debt would be an amount consisting of a number of whole dollars and a number of cents, disregard the number of cents.

(2) If, apart from this section, a person’s accumulated SSL debt would be an amount of less than $1.00, the person’s accumulated SSL debt is taken to be zero.

1061ZVEE Accumulated SSL debt discharges earlier debts

(1) The accumulated SSL debt that a person incurs on 1 June in a financial year discharges, or discharges the unpaid part of:

(a) any SSL debt that the person incurred during the calendar year immediately preceding that day; and

(b) any accumulated SSL debt that the person incurred on the immediately preceding 1 June.

(2) Nothing in subsection (1) affects the application of Division 2 of this Part or sections 1061ZVEB and 1061ZVEC.

1061ZVEF Accumulated SSL debt discharged by death

(1) Upon the death of a person who has an accumulated SSL debt, the accumulated SSL debt is taken to be discharged.

(2) To avoid doubt, this section does not affect any compulsory SSL repayment amounts required to be paid in respect of the accumulated SSL debt, whether or not those amounts were assessed before the person’s death.

Note: Accumulated SSL debts are not provable in bankruptcy: see subsection 82(3AB) of the Bankruptcy Act 1966.

Part 2AA.4—Discharge of indebtedness

Division 1—Introduction

1061ZVFA Simplified outline of this Part

A person who owes a debt to the Commonwealth under this Chapter may make voluntary SSL repayments.

The person is required to make repayments once the person’s income exceeds the minimum repayment income under the Higher Education Support Act 2003 and the person has finished repaying any debt under that Act and certain other income‑contingent loan schemes.

The amount of the repayments is based on the person’s income.

The Commissioner makes assessments of repayment amounts, which are collected in the same way as amounts of income tax.

1061ZVFB Debts under this Chapter

(1) The debts under this Chapter are:

(a) SSL debts; and

(b) accumulated SSL debts.

(2) To avoid doubt, debts that arise under the following sections are not debts under this Chapter:

(a) section 1223 (Debts arising from lack of qualification, overpayment etc.);

(b) section 1223ABF (Debts in respect of student start‑up loans).

Division 2—Voluntary discharge of indebtedness

1061ZVGA Voluntary SSL repayments in respect of debts

(1) A person may at any time make a payment in respect of a debt that the person owes to the Commonwealth under this Chapter.

(2) The payment must be made to the Commissioner.

1061ZVGB Application of voluntary SSL repayments

(1) Any money a person pays under this Division to meet the person’s debts to the Commonwealth under this Chapter is to be applied in payment of those debts as the person directs at the time of the payment.

(2) If the person has not given any directions, or the directions given do not adequately deal with the matter, any money available is to be applied as follows:

(a) first, in discharge or reduction of any accumulated SSL debt of the person;

(b) second, in discharge or reduction of:

(i) any SSL debt of the person; or

(ii) if there is more than one such debt, those debts in the order in which they were incurred.

1061ZVGC Refunding of payments

If:

(a) a person pays an amount to the Commonwealth under this Division; and

(b) the amount exceeds the sum of:

(i) the amount required to discharge the total debt that the person owed to the Commonwealth under this Chapter; and

(ii) the total amount of the person’s primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953);

the Commonwealth must refund to the person an amount equal to that excess.

Division 3—Compulsory discharge of indebtedness

Subdivision A—Liability to repay amounts

1061ZVHA Liability to repay amounts

(1) If:

(a) a person’s HELP repayment income for an income year exceeds the minimum HELP repayment income for the income year; and

(b) on 1 June immediately preceding the making of an assessment in respect of the person’s income of that income year, the person had an accumulated SSL debt;

the person is liable to pay to the Commonwealth, in accordance with this Division, so much of the person’s repayable SSL debt for the income year as does not exceed the amount worked out using the formula:

where:

applicable percentage of repayment income means the amount that is the percentage of the person’s HELP repayment income applicable under the table in section 154‑20 of the Higher Education Support Act 2003.

relevant income‑contingent loans liability means the amount that is the sum of the following:

(a) the sum of any amounts the person is liable to pay under section 154‑1 or 154‑16 of the Higher Education Support Act 2003 in respect of the income year;

(aa) the sum of any amounts the person is liable to pay under section 23EA or 23EC of the VET Student Loans Act 2016 in respect of the income year;

(b) the sum of any amounts the person is liable to pay under section 1061ZZEZ of this Act, or section 12ZK of the Student Assistance Act 1973, in respect of the income year.

(2) A person is not liable under this section to pay an amount for an income year if the amount worked out under subsection (1) is zero or less.

(3) A person is not liable under this section to pay an amount for an income year if, under section 8 of the Medicare Levy Act 1986:

(a) no Medicare levy is payable by the person on the person’s taxable income for the income year; or

(b) the amount of the Medicare levy payable by the person on the person’s taxable income for the income year is reduced.

1061ZVHB Repayable SSL debt for an income year

(1) A person’s repayable SSL debt for an income year is:

(a) the person’s accumulated SSL debt referred to in paragraph 1061ZVHA(1)(b) in relation to that income year; or

(b) if one or more amounts:

(i) have been paid in reduction of that debt; or

(ii) have been assessed under section 1061ZVHC to be payable in respect of that debt;

the amount (if any) remaining after deducting from that debt any amounts referred to in subparagraph (i) or (ii).

(2) A reference in paragraph (1)(b) of this section to an amount assessed to be payable is, if the amount has been increased or reduced by an amendment of the relevant assessment, a reference to the increased amount or the reduced amount.

Subdivision B—Assessments

1061ZVHC Commissioner may make assessments

The Commissioner may, from any information in the Commissioner’s possession, whether from a return or otherwise, make an assessment of:

(a) the person’s accumulated SSL debt on 1 June immediately before the making of the assessment; and

(b) the amount required to be paid in respect of the person’s repayable SSL debt under section 1061ZVHA.

1061ZVHD Notification of notices of assessment of tax

If:

(a) the Commissioner is required to serve on a person a notice of assessment in respect of the person’s income of an income year under section 174 of the Income Tax Assessment Act 1936; and

(b) the Commissioner has made, in respect of the person, an assessment under paragraph 1061ZVHC(b) of this Act of the amounts referred to in that paragraph; and

notice of the assessment under that paragraph may be served by specifying the amounts concerned in the notice referred to in paragraph (a).

1061ZVHE Commissioner may defer making assessments

(1) A person may apply in the approved form to the Commissioner for deferral of the making of an assessment in respect of the person under section 1061ZVHC.

(2) The application must specify:

(a) the income year for which the deferral is being sought; and

(b) the reasons for seeking the deferral.

(3) The income year specified in the application must be:

(a) the income year in which the person makes the application; or

(b) the immediately preceding income year; or

(4) The Commissioner may, on application by a person under this section, defer making an assessment in respect of the person under section 1061ZVHC if the Commissioner is of the opinion that:

(a) if the assessment were made, payment of the assessed amount would cause serious hardship to the person; or

(b) there are other special reasons that make it fair and reasonable to defer making the assessment.

(5) The Commissioner may defer making the assessment for any period that he or she thinks appropriate.

(6) The Commissioner must, as soon as practicable after an application is made under this section:

(a) consider the matter to which the application relates; and

(b) notify the applicant of the Commissioner’s decision on the application.

Note: Deferrals of making assessments, or refusals of applications, are reviewable under Division 2A of Part 4 of the Administration Act.

1061ZVHF Commissioner may amend assessments

(1) A person may apply in the approved form to the Commissioner for an amendment of an assessment made in respect of the person under section 1061ZVHC so that:

(a) the amount payable under the assessment is reduced; or

(b) no amount is payable under the assessment.

(2) The application:

(a) must be made within 2 years after the day on which the Commissioner gives notice of the assessment to the person; or

(b) must specify the reasons justifying a later application.

(3) The Commissioner may, on application by a person under this section, amend an assessment made in respect of the person under section 1061ZVHC so that:

(a) the amount payable under the assessment is reduced; or

(b) no amount is payable under the assessment;

if the Commissioner is of the opinion that:

(d) there are other special reasons that make it fair and reasonable to make the amendment.

(4) The Commissioner must, as soon as practicable after an application is made under this section:

(a) consider the matter to which the application relates; and

(b) notify the applicant of the Commissioner’s decision on the application.

Note: Amendments of assessments, or refusals of applications, are reviewable under Division 2A of Part 4 of the Administration Act.

Part 2AA.5—Tax administration matters

1061ZVJA Simplified outline of this Part

The Secretary and the Commissioner may share information about tax file numbers for the purposes of administering student start‑up loans. The Commissioner is also responsible for the recovery of debts under this Chapter and has functions and powers to fulfil that responsibility relating to returns, assessments, collection and other administrative matters.

1061ZVJB Verification of tax file numbers

(1) The Secretary may provide to the Commissioner a tax file number that a person has notified to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c), for the purpose of verifying that the number is the person’s tax file number.

(2) If the Commissioner is satisfied that the number is the person’s tax file number, the Commissioner may give the Secretary a written notice informing the Secretary accordingly.

1061ZVJC When person with tax file number incorrectly notifies number

(1) If the Commissioner is satisfied:

(a) that the tax file number that a person has notified to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c):

(i) has been cancelled or withdrawn since the notification was given; or

(ii) is otherwise wrong; and

(b) that the person has a tax file number;

the Commissioner may give to the Secretary written notice of the incorrect notification and of the person’s tax file number.

(2) That number is taken to be the number that the person notified to the Secretary.

1061ZVJD When person without tax file number incorrectly notifies number

(1) If:

(a) the Commissioner is satisfied that the tax file number that a person notified to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c):

(i) has been cancelled since the notification was given; or

(ii) is for any other reason not the person’s tax file number; and

(b) the Commissioner is not satisfied that the person has a tax file number;

the Commissioner may give to the Secretary a written notice informing the Secretary accordingly.

(2) The Commissioner must give a copy of any notice under subsection (1) to the person concerned, together with a written statement of the reasons for the decision to give the notice.

Note: Decisions to give notice under subsection (1) are reviewable under section 202F of the Income Tax Assessment Act 1936.

1061ZVJE When tax file numbers are altered

(1) If the Commissioner issues, to a person who has notified a tax file number to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c), a new tax file number in place of a tax file number that has been withdrawn, the Commissioner may give to the Secretary a written notice informing the Secretary accordingly.

(2) That new number is taken to be the number that the person notified to the Secretary.

1061ZVJF When tax file numbers are cancelled

(1) If the Commissioner cancels a tax file number issued to a person who has notified the tax file number to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c), the Commissioner may give to the Secretary a written notice informing the Secretary accordingly.

(2) The Commissioner must give a copy of any notice under subsection (1) to the person concerned, together with a written statement of the reasons for the decision to give the notice.

Note: Decisions to give notice under subsection (1) are reviewable under section 202F of the Income Tax Assessment Act 1936.

1061ZVJG Returns, assessments, collection and recovery

Subject to Part 2AA.4 and this Part:

(a) Part IV of the Income Tax Assessment Act 1936; and

(b) Division 5 of the Income Tax Assessment Act 1997; and

apply, so far as they are capable of application, in relation to a compulsory SSL repayment amount of a person as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936.

1061ZVJH Charges and civil penalties for failing to meet obligations

(1) Part 4‑25 in Schedule 1 to the Taxation Administration Act 1953 has effect as if:

(a) any compulsory SSL repayment amount of a person were income tax payable by the person in respect of the income year in respect of which the assessment of that debt was made; and

(b) paragraphs 1061ZVBB(1)(c) and (2)(c), and Parts 2AA.3 and 2AA.4 and this Part, were income tax laws.

(2) Subsection (1) does not have the effect of making a person liable to a penalty for any act or omission that happened before the commencement of this subsection.

1061ZVJJ Pay as you go (PAYG) withholding

Part 2‑5 (other than section 12‑55 and Subdivisions 12‑E, 12‑F and 12‑G) in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of amounts of a compulsory SSL repayment amount of a person as if the compulsory SSL repayment amount were income tax.

1061ZVJK Pay as you go (PAYG) instalments

Division 45 in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of a compulsory SSL repayment amount of a person as if the compulsory SSL repayment amount were income tax.

1061ZVJL Administration of this Chapter

The Commissioner has the general administration of:

(a) paragraphs 1061ZVBB(1)(c) and (2)(c); and

(b) Parts 2AA.3 and 2AA.4 and this Part; and

(c) Division 2A of Part 4 of the Administration Act (Internal review of certain Commissioner decisions relating to student start‑up loans).

Note: One effect of this is that these provisions are taxation laws for the purposes of the Taxation Administration Act 1953.

Chapter 2B—Student Financial Supplement Scheme

Note: Section 19AB contains many of the definitions that are relevant to the provisions of this Chapter.

Part 2B.1—Establishment of scheme

Division 1—Preliminary

1061ZW Object of this Chapter

The object of this Chapter is to establish a Student Financial Supplement Scheme enabling certain tertiary students to obtain a repayable financial supplement by entering into a contract for that purpose with a financial corporation that participates in the scheme.

1061ZX Outline of the scheme

(1) The scheme provides for the reduction of the rate of youth allowance, austudy payment or pensioner education supplement payable to a person who obtains financial supplement.

(2) The scheme contains provisions under which the amount of supplement that the person is eligible to obtain depends on the total rate of youth allowance, austudy payment or pensioner education supplement that the person chooses to receive. Those provisions allow the person to choose to repay some or all of the youth allowance, austudy payment or pensioner education supplement, or to receive a lower rate of payment of such an allowance, payment or supplement, in order to receive a higher amount of financial supplement.

(3) The scheme provides that the person is not liable to pay interest to the financial corporation in respect of financial supplement received by the person, but provides for payment by the Commonwealth, without cost to the person, to the financial corporation of a subsidy that includes an amount in lieu of interest.

(4) The scheme provides for the amount of the financial supplement that has to be repaid under a contract to be indexed on 1 June in the year next following the year in which the contract is entered into, and on 1 June in each later year. The amount by which the supplement is increased by indexation is owed by the person to the Commonwealth and not to the financial corporation.

(5) Under the scheme, the person is entitled, but not required, to make early repayments in respect of the supplement during the period of the contract. The scheme provides for a discount for any repayments made before the end of that period.

(6) The scheme provides that, if financial supplement paid to a person is not repaid in full before the end of the period of the contract, the obligation to repay the outstanding amount of the supplement is transferred to the Commonwealth, and the indexed amount is repayable by the person to the Commonwealth through the taxation system when the person’s income reaches a specified level.

Division 2—Eligibility to obtain financial supplement

1061ZY Eligibility to obtain financial supplement

(1) Subject to subsection (2), a person is eligible to obtain financial supplement for a period (an eligibility period) that is a year or a part of a year if:

(a) the person is undertaking, or intending to undertake, a tertiary course at an educational institution throughout the period; and

(b) the person does not undertake a course of primary or secondary education at any time during the period; and

(d) the amount of financial supplement that the person is eligible to obtain under Division 6 for the year is not less than the minimum amount of financial supplement.

(2) A person is not eligible to obtain financial supplement for an eligibility period that begins on or after the day on which the Student Assistance Legislation Amendment Act 2006 receives the Royal Assent.

1061ZZ Category 1 student

(1) A person is a category 1 student in respect of a period if, throughout the period, one or more of the payments referred to in this section are payable to the person.

(2) The payment may be youth allowance if:

(a) the person’s youth allowance general rate is more than zero; and

(b) the youth allowance is payable because the person is undertaking full‑time study.

(3) The payment may be austudy payment if the person’s austudy payment general rate is more than zero.

(4) The payment may be pensioner education supplement.

1061ZZA Category 2 student

(1) A person is a category 2 student in respect of a period if:

(a) the person is not a category 1 student in respect of the period; and

(b) throughout the period the person is undertaking full‑time study; and

(c) throughout the period youth allowance at the youth allowance general rate is not payable to the person only because of the operation of one or more of the following:

(i) Module F (the parental income test) of the Youth Allowance Rate Calculator in section 1067G;

(ii) Module G (the family actual means test) of that Calculator;

(iii) Subdivision AB (the youth allowance assets test) of Division 2 of Part 2.11; and

(d) if subparagraph (c)(i) applies—the person’s combined parental income for the appropriate tax year under Submodule 4 of Module F is throughout the period less than the person’s modified parental income free area; and

(e) if subparagraph (c)(ii) applies—the actual means of the person’s family under Module G is throughout the period less than the person’s modified parental income free area; and

(ea) if subparagraph (c)(iii) applies—the allowance would have been payable if the reference to 50% in subsection 547G(2) were instead a reference to 75%; and

(f) neither section 1061ZZAA nor 1061ZZAB applies to the person.

(2) For the purposes of paragraphs (1)(d) and (e), the person’s modified parental income free area is the indexed amount that would be the person’s parental income free area under point 1067G‑F22 if the amount of $23,400 that was specified in paragraph 1067G‑F22(a) when that paragraph was enacted had been $54,949.

1061ZZAA Failure by person to comply with request to provide person’s tax file number

(1) This section applies to a person if:

(a) the Secretary has requested the person under section 1061ZZBP to:

(i) give the Secretary a written statement of the person’s tax file number; or

(ii) apply to the Commissioner of Taxation for a tax file number and give the Secretary a written statement of the person’s tax file number after it has been issued; and

(b) at the end of 28 days after the request is made, the person has neither:

(i) given the Secretary a written statement of the person’s tax file number; nor

(ii) given the Secretary an employment declaration and satisfied either subsection (2) or (3).

(2) The person satisfies this subsection if:

(a) the employment declaration states that the person:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform him or her of the number; and

(b) the person has given the Secretary a document authorising the Commissioner to tell the Secretary:

(i) whether the person has a tax file number; and

(ii) if the person has a tax file number—the tax file number; and

(3) The person satisfies this subsection if:

(a) the employment declaration states that the person has applied for a tax file number; and

(b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

(i) if a tax file number is issued to the person—the tax file number; or

(ii) if the application is refused—that the application has been refused; or

(iii) if the application is withdrawn—that the application has been withdrawn; and

(d) the Commissioner has not told the Secretary that an application by the person for a tax file number has been refused; and

(e) the application for a tax file number has not been withdrawn.

1061ZZAB Failure by person to comply with request to provide the tax file number of a parent of the person

(1) Subject to subsection (4), this section applies to a person if:

(a) the person is requested under section 1061ZZBQ to give the Secretary a written statement of the tax file number of a parent of the person; and

(b) at the end of 28 days after the request is made the person has neither:

(i) given the Secretary a written statement of the parent’s tax file number; nor

(ii) given the Secretary a declaration by the parent in a form approved by the Secretary and satisfied either subsection (2) or (3).

(2) The person satisfies this subsection if:

(a) the parent’s declaration states that the parent:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform him or her of his or her tax file number; and

(b) the person has given the Secretary a document signed by the parent that authorises the Commissioner to tell the Secretary:

(i) whether the parent has a tax file number; and

(ii) if the parent has a tax file number—the tax file number; and

(3) The person satisfies this subsection if:

(a) the parent’s declaration states that he or she has applied for a tax file number; and

(b) the person has given the Secretary a document signed by the parent that authorises the Commissioner of Taxation to tell the Secretary:

(i) if a tax file number is issued to the parent—the tax file number; or

(ii) if the application is refused—that the application has been refused; or

(iii) if the application is withdrawn—that the application has been withdrawn; and

(c) the Commissioner has not told the Secretary that an application by the parent for a tax file number has been refused; and

(d) the application for a tax file number has not been withdrawn.

(4) The Secretary may waive the request for a statement of the parent’s tax file number if the Secretary is satisfied that:

(a) the person does not know the parent’s tax file number; and

(b) the person can obtain none of the following from the parent:

(i) the parent’s tax file number;

(ii) a statement of the parent’s tax file number;

(iii) a declaration by the parent under subparagraph (1)(b)(ii).

Division 3—Decision and notice about eligibility to obtain financial supplement

1061ZZAC Secretary’s decision

(1) If a person claims youth allowance, austudy payment or pensioner education supplement, the Secretary must decide whether the person is eligible to obtain financial supplement for a period that is the whole or a part of a year.

(2) Also, if:

(a) the Secretary has made a decision in a year that a person is eligible to obtain financial supplement for a period that is the whole or a part of that year; and

(b) the person is likely to:

(i) continue to undertake the person’s tertiary course in the next year; or

(ii) undertake a new tertiary course in the next year when enrolments in the course are next accepted;

the Secretary must make a new decision, as early as practicable in the next year, about whether the person is eligible to obtain financial supplement for a period that is the whole or a part of that next year.

(3) If the Secretary decides that the person is eligible to obtain financial supplement for a period, the Secretary must give the person a notice (a supplement entitlement notice):

(a) stating that the person is eligible to obtain financial supplement for that period; and

(b) specifying the minimum and maximum amounts of financial supplement that the person can obtain.

(4) This section does not apply in relation to a period that is the whole or part of a year if the year begins on or after the day on which the Student Assistance Legislation Amendment Act 2006 receives the Royal Assent.

1061ZZAD Revocation or variation of decision after review

(1) This section applies if:

(a) the Secretary has made a decision under section 1061ZZAC in relation to a person; and

(b) the Secretary has given the person a supplement entitlement notice under subsection 1061ZZAC(3) as a result of the decision; and

(d) as a result of the review, the decision is revoked or varied.

(2) The revocation or variation revokes the supplement entitlement notice and the notice ceases to be valid for the purpose of applying for financial supplement.

(3) The Secretary must give the person a statement telling the person:

(a) that the decision has been revoked, or has been varied in a manner set out in the statement, as the case may be; and

(b) that the supplement entitlement notice has been revoked and ceases to be valid for the purpose of applying for financial supplement.

(4) If the decision is varied and, after the variation, the person is or becomes eligible to obtain financial supplement for a period, the Secretary must give the person a notice (also a supplement entitlement notice):

(a) stating that the person is eligible to obtain financial supplement for that period; and

(b) specifying the minimum and maximum amounts of financial supplement that the person can obtain.

1061ZZAE Transitional

(1) This section applies if, immediately before the commencement of this Chapter, a person held a notice given under Part 3 of the Social Security Student Financial Supplement Scheme 1998.

(2) If the person had not used the notice before that commencement in an application for financial supplement under that Scheme, the person is eligible to obtain financial supplement under this Chapter for the period to which the notice related.

(3) The notice is taken to be a supplement entitlement notice given under this Division.

Division 4—Agreements between Commonwealth and financial corporations

1061ZZAF Applications for financial supplement

A person may apply for financial supplement only to a participating corporation.

1061ZZAG Agreements

(1) The Minister may enter into an agreement, on behalf of the Commonwealth, with a financial corporation for the payment by the corporation after the commencement of this Chapter, in the year in which this Chapter commences or a later year, of financial supplement.

(2) An agreement referred to in subsection (1) does not have any effect unless it:

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

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

(3) If such an agreement is entered into, the corporation is a participating corporation for the purposes of this Chapter in respect of the year, or each year, concerned.

(4) The parties to an agreement referred to in subsection (2) (including such an agreement as previously amended under this subsection) may enter into an agreement amending or terminating it.

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

(6) If an agreement was in force, immediately before the commencement of this Chapter, between the Commonwealth and a financial corporation under section 1.7 of the Social Security Student Financial Supplement Scheme 1998, the amendment or termination of the agreement, and the commencement of an agreement under this section, do not affect any financial supplement contract made under that Scheme.

(7) An agreement between the Commonwealth and a financial corporation is not subject to any stamp duty or other tax under a law of a State or Territory.

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

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

Division 5—Application for financial supplement

1061ZZAH When to apply

A person who is eligible to obtain financial supplement for an eligibility period may apply to a participating corporation, during that period, for financial supplement.

1061ZZAI How to apply

A person may only apply for financial supplement by:

(a) completing an application form approved by the Secretary; and

(b) lodging it, with the person’s supplement entitlement notice, at an office of a participating corporation.

1061ZZAJ Changing an application

A person who has applied for financial supplement for the eligibility period may, at any time, lodge another application form approved by the Secretary at an office of the participating corporation, telling the corporation that the person requires for that period:

(a) a specified lesser amount of financial supplement, which must be:

(i) not less than the total amount of financial supplement already paid to the person for the period; and

(ii) not less than the minimum amount of financial supplement in respect of the person for the year that constitutes, or includes, the eligibility period; or

(b) a specified greater amount of financial supplement, which must be not more than the maximum amount of financial supplement in respect of the person for the period.

Division 6—Amount of financial supplement

Subdivision A—Category 1 students

1061ZZAK Maximum amount of financial supplement

(1) If the relevant eligibility period of a person who is a category 1 student is a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of:

(a) $7,000; and

(b) the amount worked out using the following Method statement.

Method statement

Step 1. Work out the total amount of youth allowance general rate, austudy payment general rate or pensioner education supplement that would be payable to the person for the eligibility period if the person did not apply for financial supplement.

Step 2. Work out the total amount of advance payment deductions (if any) to be made from the person’s rate of youth allowance or austudy payment, under Part 3.16A, in the eligibility period.

Subtract that total amount from the total amount worked out under Step 1.

Step 3. Work out the total amount of overpayments (if any) for the eligibility period.

Subtract that total amount from the total amount worked out under Step 2.

Step 4. Work out the total amount of deductions (if any) that are to be paid to the Commissioner of Taxation, under section 1359, for the eligibility period.

Note: Section 1359 provides for the deduction and payment to the Commissioner of Taxation of amounts of tax that a person is required to pay.

Subtract that total amount from the total amount worked out under Step 3.

Step 5. Work out the total amount (if any) of youth allowance general rate, austudy payment general rate or pensioner education supplement that has already been paid for the eligibility period.

Ignore any amount that has already been dealt with under Step 2.

Ignore any amount that is taken never to have been paid because of section 1061ZZAW.

Subtract the total amount from the amount worked out under Step 4.

Step 6. Multiply the amount left by 2.

Step 7. If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

(2) If the relevant eligibility period of a person who is a category 1 student is less than a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of:

(a) the amount worked out using the Method statement in subsection (1); and

(b) the amount worked out using the following Method statement.

Method statement

Step 1. Multiply $7,000 by the number of days in the eligibility period.

Step 2. Divide the result by the number of days in the year in which the eligibility period is included.

If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

(3) This section has effect subject to Subdivision C.

Subdivision B—Category 2 students

1061ZZAL Change in eligibility period

(1) The maximum amount of financial supplement in respect of a person who is a category 2 student depends on the person’s eligibility period.

(2) If the person is undertaking, or intends to undertake, a short course, it is necessary to work out whether the person’s eligibility period is to be changed under section 1061ZZAM.

(3) If the person is neither undertaking, nor intending to undertake, a short course, it is necessary to work out whether the person’s eligibility period is to be changed under section 1061ZZAN.

1061ZZAM Eligibility period (short course)

(1) This section explains whether, and how, to change the eligibility period for a person who is undertaking, or intending to undertake, a short course.

(2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable) must be changed if the person applied for financial supplement more than 4 weeks after being given a supplement entitlement notice.

(3) The Secretary may decide that the eligibility period otherwise applicable is not to be changed if the Secretary is satisfied that:

(a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and

(b) circumstances beyond the person’s control prevented the person from applying within the 4 weeks; and

(4) If the eligibility period otherwise applicable is to be changed, the person’s new eligibility period is the period:

(a) starting on the later of:

(i) the day when the person applied; and

(ii) the start of the eligibility period otherwise applicable; and

(b) ending when the eligibility period otherwise applicable would have ended.

1061ZZAN Eligibility period (no short course)

(1) This section explains whether, and how, to change the eligibility period for a person who is neither undertaking, nor intending to undertake, a short course.

(2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable) must be changed if the person applied for financial supplement after 31 May in the year in which the period is included.

(3) The Secretary may decide that the period is not to be changed if the Secretary is satisfied that:

(a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and

(b) circumstances beyond the person’s control prevented the person from applying within the 4 weeks; and

(4) If the eligibility period otherwise applicable is to be changed and the person applied before 1 October in the year, the person’s new eligibility period is the period:

(a) starting on the later of 1 July and the start of the eligibility period otherwise applicable; and

(b) ending when the eligibility period otherwise applicable would have ended.

(5) If the eligibility period otherwise applicable is to be changed and the person applied on or after 1 October in the year, the person’s new eligibility period is the period:

(a) starting on the later of:

(i) the day when the person applied; and

(ii) the start of the eligibility period otherwise applicable; and

(b) ending when the eligibility period otherwise applicable would have ended.

1061ZZAO Maximum amount of financial supplement

(1) If:

(a) the person is undertaking, or intending to undertake, a short course; or

(b) the person is neither undertaking, nor intending to undertake, a short course and the person’s eligibility period is less than a year;

the maximum amount of financial supplement for the eligibility period in respect of the person is worked out using the following Method statement.

Method statement

Step 1. Multiply $2,000 by the number of days in the eligibility period.

Step 2. Divide the result by the number of days in the year that includes the eligibility period.

If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

(2) If the person is neither undertaking, nor intending to undertake, a short course, and the person’s eligibility period is a year, the maximum amount of financial supplement for the eligibility period in respect of the person is $2,000.

(3) This section has effect subject to Subdivision C.

Subdivision C—Provisions applying to both category 1 students and category 2 students

1061ZZAP Minimum amount of financial supplement

The minimum amount of financial supplement in respect of a person is $500.

1061ZZAQ Person doing more than one course

(1) This section applies if a person undertakes, or intends to undertake, more than one tertiary course in the same period in a year.

(2) The maximum amount of financial supplement for the period in respect of the person is the maximum amount worked out under this Division for the period in respect of the person for one of the courses.

Division 7—Trading in youth allowance, austudy payment or pensioner education supplement for financial supplement

1061ZZAR Purpose of Division

(1) Financial supplement will be paid to a person who is eligible to obtain financial supplement at a rate determined by the person’s financial supplement contract.

(2) If youth allowance, austudy payment or pensioner education supplement is payable to the person, the payment of financial supplement will reduce the rate at which the youth allowance, austudy payment or pensioner education supplement is payable.

(3) The reduction of the rate of payment is a trade in.

(4) The Division explains how trade in works.

1061ZZAS Reduction of youth allowance, austudy payment or pensioner education supplement for financial supplement

(1) The period for which a payment of financial supplement will be made is an instalment period.

(2) Subject to subsection (3), the rate of youth allowance, austudy payment or pensioner education supplement that would have been payable to the person in an instalment period is reduced by an amount equal to one‑half of the amount of financial supplement to be paid during the instalment period under the financial supplement contract.

(3) If, apart from this subsection, the amount by which the rate would be reduced is an amount including one‑half of a cent, the amount is to be increased by one‑half of a cent.

(4) This section has effect despite any other provision of this Act.

Division 8—Obtaining or increasing financial supplement by trading back youth allowance, austudy payment or pensioner education supplement

Subdivision A—Purpose of Division

1061ZZAT Purpose of Division

(1) If a person who is eligible to obtain financial supplement wishes to obtain financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.

(2) If a person who is obtaining financial supplement wishes to increase the amount of financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.

(3) The repayment of the youth allowance, austudy payment or pensioner education supplement is a trade back.

(4) This Division explains how trade back works.

(5) This Division also sets out the effect of trade back.

(6) This Division does not affect the operation of Chapter 5.

Subdivision B—When a person may repay youth allowance, austudy payment or pensioner education supplement to obtain or increase financial supplement

1061ZZAU Election to repay youth allowance, austudy payment or pensioner education supplement

(1) A person to whom youth allowance, austudy payment or pensioner education supplement was payable during a payment period may elect to repay to the Commonwealth some or all of the youth allowance, austudy payment or pensioner education supplement.

(2) The person must make the election using the form approved under paragraph 1061ZZAI(a).

(3) A payment period is:

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

(b) the part of a year starting on 1 July and ending on 30 September.

1061ZZAV Timing of repayment

(1) A person who is not obtaining financial supplement may, in order to obtain financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement:

(a) while the person is eligible to obtain financial supplement; and

(b) during the payment period.

(2) However, if the person does not repay youth allowance, austudy payment or pensioner education supplement during the payment period, the person may, in order to obtain financial supplement, repay youth allowance, austudy payment or pensioner education supplement after that period if the Secretary is satisfied that:

(a) the person took reasonable steps to repay it during the payment period; and

(b) circumstances beyond the person’s control prevented the person from repaying it during the period; and

(c) the person repays it as soon as practicable after the end of the payment period and during the year that includes the payment period.

(3) A person who is obtaining financial supplement may, in order to increase the amount of financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement:

(a) while the person is eligible to obtain financial supplement; and

(b) during the year in which the youth allowance, austudy payment or pensioner education supplement was paid.

Subdivision C—Repayment

1061ZZAW Effect of repayment

If an amount is repaid by a person under this Division, the amount is taken never to have been paid to the person.

Division 9—Financial supplement contracts

Subdivision A—Making a contract for payment of financial supplement

1061ZZAX Making a contract between person and participating corporation

(1) If a person applies to a participating corporation under Division 5 for the payment of financial supplement for an eligibility period, the corporation must, as soon as practicable, accept the application by written notice to the person.

(2) A contract is made when the corporation accepts the application by giving the notice referred to in subsection (1). The contract is a financial supplement contract.

(3) A financial supplement contract is a contract for the making of a loan by the corporation to the person under this Division without any requirement on the person to pay interest.

(4) The contract must be for the amount of financial supplement for which the person from time to time asks, but the amount must not be less than the minimum amount, or more than the maximum amount, of financial supplement that the person is, from time to time, eligible to obtain under Division 6.

(5) The contract must also allow, but not compel, the person to make repayments during the contract period under Division 13 of the amount outstanding at any time under the contract.

(6) The contract must set out the termination date for the contract. The date to be set out is the last day of the contract period.

(7) The contract period is the period beginning on the day when the contract is made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ends.

1061ZZAY Existing contracts

(1) A contract is also a financial supplement contract if it is a contract referred to in section 8.2 of the Social Security Student Financial Supplement Scheme 1998.

(2) The termination date for the contract is the date set out in the contract.

(3) The contract period is the period beginning on the day when the contract was made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ended or ends.

1061ZZAZ Liability for money paid under a financial supplement contract

(1) A participating corporation may rely on advice given by the Commonwealth to decide:

(a) whether it must pay financial supplement to a person; and

(b) the amount of financial supplement.

(2) An amount paid to a person by a corporation, relying on advice given by the Commonwealth, is taken to be financial supplement paid under the contract even though the person may not have been eligible to obtain the amount.

(3) Subsection (2) does not affect the operation of Part 2B.2.

1061ZZBA Validity of financial supplement contract

(1) The validity of a financial supplement contract with a person is not affected merely because the person was not eligible to obtain financial supplement when the contract was made, or ceases at a later time to be eligible.

(2) The contract is not invalid, and is not voidable, under any other law (whether written or unwritten) in force in a State or Territory.

(3) The contract is not invalid merely because the person is an undischarged bankrupt when the contract is made.

(4) Bankruptcy does not release a person from his or her obligations under the contract.

Subdivision B—When a financial supplement contract can be cancelled

1061ZZBB Person has right to cancel financial supplement contract

(1) A person who makes a financial supplement contract has a right to cancel the contract.

(2) Subsection (1) does not affect the operation of section 1061ZZCU.

(3) If, under section 1061ZZBF, the person waives his or her right to cancel the contract, sections 1061ZZBC to 1061ZZBE do not apply to the contract.

1061ZZBC How to cancel financial supplement contract

(1) To exercise the right to cancel the contract, the person must give to the participating corporation written notice that the person is withdrawing his or her application for financial supplement.

(2) The notice must be lodged at an office of the corporation.

1061ZZBD When to cancel financial supplement contract

The person’s right may be exercised within 14 days (the cooling off period) after the day when the contract is made under section 1061ZZAX.

1061ZZBE Payments made during cooling off period

(1) In the cooling off period, the participating corporation must not make a payment to the person under the contract.

(2) If the corporation makes a payment to the person under the contract within the cooling off period, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.

(3) If the corporation makes a payment to the person under the contract after the cooling off period and the person has exercised the right to cancel the contract, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.

1061ZZBF Person may waive right to cancel contract

The person may waive the right to cancel the contract.

1061ZZBG How to waive right to cancel contract

To waive the right to cancel the contract, the person must give to the participating corporation written notice that he or she is waiving the right to cancel the contract.

1061ZZBH When to waive right to cancel contract

To exercise the right of waiver, the person must give the participating corporation the notice referred to in section 1061ZZBG immediately after the contract is made under section 1061ZZAX.

Subdivision C—Financial supplement contract exempt from certain laws and taxes

1061ZZBI Financial supplement contract exempt from certain laws and taxes

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

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

Division 10—Payment of financial supplement

1061ZZBJ Payment by instalments

(1) Financial supplement is to be paid by instalments for periods determined by the Secretary.

(2) Instalments of financial supplement are to be paid at times determined by the Secretary.

1061ZZBK Rounding off

If the amount of an instalment includes a fraction of a cent, the amount is to be rounded to the nearest whole cent (0.5 cent being rounded upwards).

1061ZZBL To whom instalments must be paid

(1) If a person who is a category 1 student is trading in, or trading back, youth allowance, financial supplement must be paid to the person to whom instalments of youth allowance are or were being paid under section 559D or 559E.

(2) If a person who is a category 1 student is trading in, or trading back, austudy payment, financial supplement must be paid to the person to whom instalments of austudy payment are or were being paid under section 584D.

(3) If a person who is a category 1 student is trading in, or trading back, pensioner education supplement, financial supplement must be paid to the person to whom instalments of pensioner education supplement are or were being paid under section 1061PZK.

(4) If a person who is a category 2 student obtains financial supplement, it must be paid to the person to whom instalments of youth allowance would be paid under section 559D or 559E if youth allowance were payable to the student.

(5) This section does not affect the liability of a person to make repayments under Part 2B.3.

1061ZZBM Payment into bank account

(1) If an amount of financial supplement is paid to a person, it must be paid to the credit of a bank account nominated and maintained by the person.

(2) The bank account may be maintained by the person alone or jointly or in common with someone else.

Division 11—Protection of financial supplement

1061ZZBN Financial supplement to be absolutely inalienable

Financial supplement is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

1061ZZBO Effect of garnishee or attachment order

(1) This section applies if:

(a) a person has an account with a financial institution (whether the account is maintained by the person alone, or jointly or in common with someone else); and

(b) a court order in the nature of a garnishee order comes into force in respect of the account; and

(c) an amount of financial supplement has been paid (whether on the person’s own behalf or not) to the credit of the account in the 4 weeks immediately before the court order came into force.

(2) The court order does not apply to the saved amount (if any) in the account.

(3) The saved amount is the amount worked out using the following Method statement.

Method statement

Step 1. Work out the amount of financial supplement paid to the credit of the account in the 4 weeks.

Step 2. Subtract from that amount the total amount withdrawn from the account in the 4 weeks.

The amount left is the saved amount.

Division 12—Obligations of category 2 students

Subdivision A—Statements about tax file numbers

1061ZZBP Secretary may request person obtaining financial supplement to give statement of person’s tax file number

Request for tax file number

(1) The Secretary may request, but not compel, a person who is a category 2 student and is obtaining financial supplement:

(a) if the person has a tax file number—to give the Secretary a written statement of the person’s tax file number; or

(b) if the person does not have a tax file number:

(i) to apply to the Commissioner of Taxation for a tax file number; and

(ii) to give the Secretary a written statement of the person’s tax file number after the Commissioner has issued it.

Failure to satisfy request

(2) A person is not eligible to obtain financial supplement if, at the end of 28 days after a request is made:

(a) the person has failed to satisfy the request; and

(b) the Secretary has not exempted the person from having to satisfy the request.

1061ZZBQ Secretary may request person obtaining financial supplement to give statement of parent’s tax file number

Request for parent’s tax file number

(1) If:

(a) a person (the recipient) who is a category 2 student is obtaining financial supplement; and

(b) the income of a parent of the recipient is required to be taken into account for the purpose of working out the recipient’s eligibility for financial supplement; and

the Secretary may request, but not compel, the recipient to give the Secretary a written statement of the parent’s tax file number.

Failure to satisfy request

(2) A recipient is not eligible to obtain financial supplement if, at the end of 28 days after the request is made:

(a) the recipient has failed to satisfy the request; and

(b) the Secretary has not exempted the recipient from having to satisfy the request.

(3) In this section:

parent has the same meaning as in paragraph (b) of the definition of parent in subsection 5(1).

Note 1: In some cases the request can be satisfied in relation to a parent by giving the Secretary a declaration by the parent about the parent’s tax file number and an authority by the parent to the Commissioner of Taxation to give the Secretary certain information relevant to the parent’s tax file number (see subsections 1061ZZAB(2) and (3).

Note 2: The Secretary may waive the requirement in some cases (see subsection 1061ZZAB(4)).

Subdivision B—Notice of events or changes in circumstances

1061ZZBR Secretary may give notice requiring information

(1) The Secretary may give a notice under this section to a person who is a category 2 student if:

(a) financial supplement is paid to the person on the person’s own behalf; or

(b) financial supplement is paid to someone else, on the person’s behalf, under section 1061ZZBL.

(2) The notice must require the person to tell the Department if:

(a) a stated event or change of circumstances happens; or

(b) the person becomes aware that a stated event or change of circumstances is likely to happen.

1061ZZBS Event or change relevant to payment

An event or change of circumstances is not to be stated in a notice given under section 1061ZZBR unless the event or change of circumstances might affect the payment of financial supplement.

1061ZZBT Formalities related to notice

Subject to section 1061ZZBU, a notice under section 1061ZZBR:

(a) must be in writing; and

(b) may be given personally or by post; and

(d) must state the period in which the person is to give the information to the Department; and

(e) must state that the notice is a recipient notification notice given under this Act.

1061ZZBU Validity of notice

A notice under section 1061ZZBR is not invalid merely because it does not comply with paragraph 1061ZZBT(c) or (e).

1061ZZBV Period within which information to be given

(1) Subject to this section, the period stated under paragraph 1061ZZBT(d) must be the period of 14 days after:

(a) the day on which the event or change of circumstances happens; or

(b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.

(2) If the Secretary is satisfied that there are special circumstances related to the person to whom the notice under section 1061ZZBR is to be given, the period to be stated under paragraph 1061ZZBT(d) is such period as the Secretary directs in writing, being a period that ends not less than 15 days, and not more than 28 days, after:

(a) the day on which the event or change of circumstances happens; or

(b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.

(3) If the notice specifies an event consisting of the death of a person, the period to be stated under paragraph 1061ZZBT(d) is a period of 28 days after the day on which the event happens.

(4) If the notice requires the person to tell the Department of a proposal by the person to leave Australia, subsection (1) does not apply to that requirement.

(5) If the notice requires information about receipt of a compensation payment, the period stated under paragraph 1061ZZBT(d) in relation to the information must end at least 7 days after the day when the person becomes aware that he or she has received, or is to receive, a compensation payment.

1061ZZBW Refusal or failure to comply with notice

(1) A person commits an offence if:

(a) the person is required to comply with a notice; and

(b) the notice is a notice under section 1061ZZBR; and

(d) the person is reckless as to the requirement.

Penalty: Imprisonment for 6 months.

(2) Subsection (1) applies only to the extent to which the person is capable of complying with the notice.

(3) Subsection (1) does not apply if the person has a reasonable excuse.

(4) Strict liability applies to paragraph (1)(b).

1061ZZBX Application overseas

This Subdivision extends to:

(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and

(b) all people irrespective of their nationality or citizenship.

Subdivision C—Notice about a matter relevant to payment of financial supplement

1061ZZBY Secretary may give notice requiring statement on matter

(1) The Secretary may give a notice under this section to a person who is a category 2 student if:

(a) financial supplement is paid to the person on the person’s own behalf; or

(b) financial supplement is paid to someone else, on the person’s behalf, under section 1061ZZBL.

(2) The notice must require the person to give the Department a statement about a matter that might affect the payment of financial supplement.

1061ZZBZ Formalities related to notice

Subject to section 1061ZZCA, a notice under section 1061ZZBY:

(a) must be in writing; and

(b) may be given personally or by post; and

(d) must state the period within which the person is to give the statement to the Department; and

(e) must state that the notice is a recipient statement notice given under this Act.

1061ZZCA Validity of notice

A notice under section 1061ZZBY is not invalid merely because it does not comply with paragraph 1061ZZBZ(c) or (e).

1061ZZCB Period within which statement to be given

The period stated under paragraph 1061ZZBZ(d) must be at least 14 days after the day on which the notice is given.

1061ZZCC Statement must be in approved form

A statement given in response to a notice under section 1061ZZBY must be in writing and in accordance with a form approved by the Secretary.

1061ZZCD Refusal or failure to comply with notice

(1) A person commits an offence if:

(a) the person is required to comply with a notice; and

(b) the notice is a notice under section 1061ZZBY; and

(d) the person is reckless as to the requirement.

Penalty: Imprisonment for 6 months.

(2) Subsection (1) applies only to the extent to which the person is capable of complying with the notice.

(3) Subsection (1) does not apply if the person has a reasonable excuse.

(4) Strict liability applies to paragraph (1)(b).

1061ZZCE Application overseas

This Subdivision extends to:

(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and

(b) all people irrespective of their nationality or citizenship.

Division 13—Early repayments of financial supplement

Subdivision A—Calculation and notification of amount outstanding under financial supplement contract

1061ZZCF Application of Subdivision

This Subdivision has effect subject to section 1061ZZEE.

1061ZZCG Calculation of amount outstanding under financial supplement contract before 1 June in the year after the year in which the contract was made

(1) The amount outstanding under a financial supplement contract at a time (the test time) before 1 June in the year immediately after the year in which the contract was made is the amount worked out using the formula:

(2) For the purpose of applying the formula in subsection (1) at the test time:

amounts repaid means the total of the amounts repaid under the contract before the test time.

discounts means the total of the discounts to which the person became entitled before the test time.

principal sum means the principal sum at the test time.

1061ZZCH Calculation of amount outstanding under financial supplement contract at a later time

(1) Subject to subsections 1061ZZCN(6) and (7), the amount outstanding under a financial supplement contract at a time (the test time) during a period of 12 months (the test period) referred to in either of the following paragraphs:

(a) the period of 12 months beginning on 1 June in the year immediately after the year in which the contract was made; or

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

is the amount worked out using the formula:

Start formula open bracket Previous amount outstanding times Indexation factor close bracket minus open bracket Amounts repaid plus Discounts close bracket end formula

(2) For the purpose of applying the formula in subsection (1) at the test time:

amounts repaid means the total of the amounts repaid under the contract during the test period but before the test time.

discounts means the total of the discounts to which the person became entitled during the test period but before the test time.

indexation factor means the number worked out using the method statement in subsection (3).

previous amount outstanding means the amount outstanding under the contract immediately before the beginning of the test period.

(3) The Method statement for the purposes of the definition of indexation factor in subsection (2) is as follows:

Method statement

Step 1. Work out the total of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters.

Step 2. Work out the total of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.

Step 3. Divide the total worked out under Step 1 by the total worked out under Step 2.

Step 4. Round the result to 3 decimal places.

(4) In subsection (3):

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

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

(5) If an indexation factor worked out under subsection (3) would end with a number greater than 4, were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.

(6) If, apart from this subsection, an amount worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.

1061ZZCI Notification of amount outstanding

(1) The Secretary must give to a person who is a party to a financial supplement contract with a participating corporation a notice of an amount outstanding under the contract that exists on:

(a) 1 June in the year following the year in which the contract was made; or

(b) 1 June in any of the following 3 years.

(2) The notice must state the amount outstanding under the contract at that date.

Subdivision B—Person’s rights to make repayments during contract period

1061ZZCJ Person not required to, but may, make repayments during contract period

(1) Subject to sections 1061ZZDE, 1061ZZDL, 1061ZZDV and 1061ZZEE, a person who is a party to a financial supplement contract with a participating corporation is not required during the contract period to make a repayment of the amount outstanding under the contract.

(2) Non‑payment by the person during the contract period of the amount outstanding is not a default under the contract for the purposes of any law of the Commonwealth, of a State or of a Territory.

(3) However, the person may, at any time during the contract period, make a repayment (an amount repaid) to the corporation of the whole or a part of the amount outstanding at that time.

(4) Subsection (3) has effect subject to section 1061ZZCL.

1061ZZCK What happens if person makes an excess repayment

If a person purports to make a repayment to a participating corporation under a financial supplement contract by paying an amount under subsection 1061ZZCJ(3) that exceeds the amount that, having regard to the discount to which the person is entitled, would be needed to pay in full the amount outstanding, the excess:

(a) is taken not to be a repayment; and

(b) must be repaid by the corporation to the person.

1061ZZCL Amount repaid not to include certain amounts

If the person makes a repayment under subsection 1061ZZCJ(3), the amount repaid is to be disregarded for the purposes of this Division:

(a) to the extent to which it relates to wrongly paid supplement; or

(b) if it is repaid after the giving of a notice under section 1061ZZCZ, 1061ZZDG, 1061ZZDQ or 1061ZZEA.

1061ZZCM How to work out discount

(1) If, during the contract period, a person makes a repayment of an amount that is less than the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula:

$Start formula open bracket Amount repaid times start fraction 100 over 85 end fraction close bracket minus Amount repaid end formula$

(2) If, during the contract period, a person makes a repayment of an amount that is equal to the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula:

$Start formula open bracket Amount repaid times start fraction 115 over 100 end fraction close bracket minus Amount repaid end formula$

(3) If, apart from this subsection, an amount worked out under subsection (1) or (2) would be an amount of dollars and cents, the amount is to be rounded to the nearest number of whole dollars (rounding 50 cents upwards).

1061ZZCN Effect of making a repayment during contract period

Application

(1) This section applies if a person, at a time (the repayment time) during the contract period of a financial supplement contract made by the person with a participating corporation, makes a repayment (the relevant repayment) in respect of the amount outstanding under the contract. For the purposes of this section, it is first necessary to work out whether an indexation amount is taken to have existed in respect of the contract immediately before the repayment time.

When an indexation amount is taken to have existed

(2) For the purposes of this section, an indexation amount is taken to have existed in respect of the contract immediately before the repayment time if:

(a) an amount outstanding under the contract existed immediately before the repayment time under section 1061ZZCH; and

(b) that amount outstanding exceeds the amount worked out using the formula:

Start formula Principal sum minus open bracket Amounts repaid plus Amounts previously notionally repaid close bracket end formula

Meaning of expressions used in formula

(3) For the purpose of applying the formula in subsection (2) immediately before the repayment time:

amounts previously notionally repaid means the total of the amounts notionally repaid under the contract before the repayment time because of the application of this section in respect of previous repayments.

amounts repaid means the total of the amounts repaid under the contract before the repayment time.

principal sum means the principal sum immediately before the repayment time.

What constitutes indexation amount

(4) The indexation amount referred to in subsection (2) is the amount of the excess referred to in paragraph (2)(b).

If no indexation amount

(5) If no indexation amount existed in respect of the contract immediately before the repayment time, the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid) equal to the discount to which the person is entitled in respect of the relevant repayment.

If discount does not exceed indexation amount

(6) If:

(a) an indexation amount existed in respect of the contract immediately before the repayment time; and

(b) the discount to which the person is entitled in respect of the relevant repayment is equal to or less than the indexation amount;

the amount outstanding under the contract is taken to be reduced by the discount.

If discount exceeds indexation amount

(7) If:

(a) an indexation amount existed in respect of the contract immediately before the repayment time; and

(b) the discount to which the person is entitled in respect of the relevant repayment exceeds the indexation amount;

the following paragraphs have effect:

(d) the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid) equal to the excess.

Commonwealth to pay corporation amounts notionally repaid

(8) The Commonwealth must pay to the corporation an amount equal to any amount notionally repaid.

1061ZZCO Rights and liabilities of participating corporation if repayment made

(1) This section applies if, immediately after a repayment is made under a financial supplement contract made by a participating corporation, the total of the amounts repaid and the amounts notionally repaid is equal to or exceeds the principal sum.

(2) The corporation’s rights under the contract are, by this subsection, transferred to the Commonwealth immediately after the repayment is made.

(3) If the total of the amounts repaid and the amounts notionally repaid exceeds the principal sum, the corporation must pay the excess to the Commonwealth.

Subdivision C—What happens at the end of the contract period

1061ZZCP Corporation’s rights at end of contract period

(1) This section applies if, at the end of the contract period of a financial supplement contract made by a participating corporation, the corporation’s rights under the contract have not previously been transferred to the Commonwealth.

(2) The corporation’s rights under the contract are, by this subsection, transferred to the Commonwealth at the end of the contract period.

(3) If the principal sum exceeds the total of the amounts repaid and the amounts notionally repaid, the Commonwealth must pay the excess to the corporation.

1061ZZCQ Termination notice

(1) As soon as practicable after the termination date of a financial supplement contract made by a person with a participating corporation, the Secretary must arrange for written notice (the termination notice) to be given to the person if such a notice has not already been given under the Social Security Student Financial Supplement Scheme 1998 or the Student Assistance Act 1973 as in force at a time before 1 July 1998.

(2) The termination notice must:

(a) state that, at the end of the contract period, the person no longer owes a debt to the corporation under the contract and will not receive a discount for repayments made after that time; and

(b) state that, on a date referred to in the notice, being 1 June immediately following the termination date, the person incurred or will incur an FS debt or FS debts to the Commonwealth; and

(d) state that the person is entitled at any time to make repayments in respect of that debt or those debts and that so much of that debt or those debts as is not voluntarily repaid by the person will be recovered through the taxation system.

1061ZZCR Secretary may give notice correcting information in previous notice

If, after a notice has been given to a person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998 (including a notice previously given under this section or under a provision of that Scheme or Act corresponding to this section), the Secretary is satisfied that significant information in the notice was not, or is no longer, correct, the Secretary must arrange for a further written notice to be given to the person setting out the correct information.

1061ZZCS Person may request notice to be corrected

(1) If a person considers that a notice given to the person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, was not, or is no longer, correct in a significant respect, the person may, by writing, request the Secretary to correct the notice.

(2) The person must make the request within 14 days after the date when the notice was received by the person or within such further period as the Secretary allows.

(3) A request must set out the information that is considered to be incorrect and the grounds on which the person considers the information to be incorrect.

(4) If a request is received by the Secretary, the Secretary must arrange, as soon as practicable, for it to be considered and for written notice of the decision on the request to be given to the person.

1061ZZCT Effect of notices and requests

(1) A notice to a person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, is intended only to give information to the person and an FS debt of the person is not affected by a failure to give a notice or by any incorrect statement or information in a notice given under this Division or that corresponding provision.

(2) The making by a person of a request for a notice to be corrected does not affect an FS debt of the person.

Part 2B.2—Payments of financial supplement under scheme to stop in certain circumstances

Division 1—Payments to stop at request of recipient

1061ZZCU Person may ask for payment to stop

A person who is a party to a financial supplement contract with a participating corporation may, by written notice to the corporation lodged at an office of the corporation, tell the corporation that he or she does not want further payments under the contract to be made after a day stated in the notice.

1061ZZCV Effect of notice

(1) If a person gives a notice referred to in section 1061ZZCU, the corporation is discharged from liability to make further payments to the person under the contract from the end of the day stated in the notice.

(2) However, if the corporation continues to make payments to the person after that day, any amounts paid after that day or the end of 4 weeks after the day on which the notice was given to the corporation, whichever is the later:

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

(b) are repayable by the person to the corporation; and

Division 2—Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount

Subdivision A—Notice that payments are to stop

1061ZZCW Secretary must give notice to person and corporation

(1) This section applies if:

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

(b) the decision (the original decision) made in respect of the person under section 1061ZZAC, or under Part 3 of the Social Security Student Financial Supplement Scheme 1998, is reviewed under Chapter 6; and

(c) the person remains eligible to obtain financial supplement for the year or part of the year to which the contract relates; and

(d) because of the review, the original decision is varied so that the maximum amount (the original amount) of financial supplement that the person is eligible to obtain under the contract is reduced to another amount (the revised amount); and

(e) the revised amount is equal to or less than the amount of financial supplement that the person has already been paid under the contract.

(2) The Secretary must give written notice to the person and to the corporation:

(a) stating:

(i) that this section applies to the contract; and

(ii) that the corporation must stop paying financial supplement to the person; and

(b) specifying:

(i) the revised amount that the person is eligible to obtain; and

(ii) the amount (if any) of financial supplement paid in excess of the revised amount.

1061ZZCX Effect of notice

(1) If the Secretary gives a notice under section 1061ZZCW to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.

(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.

(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:

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

(b) are repayable by the person to the corporation; and

1061ZZCY This Subdivision is subject to sections 1061ZZFS and 1061ZZFT

This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.

Subdivision B—Original amount paid because person failed to notify change of circumstances

1061ZZCZ Secretary may give notice to person and corporation

(1) If the Secretary is satisfied that:

(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and

(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and

(d) the payment of the original amount after the end of that period resulted from the person’s failure to comply with the notice referred to in paragraph (b);

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

(2) If the Secretary is satisfied that:

(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and

(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and

(d) the payment of the original amount after the commencement of this Chapter resulted from the person’s failure to comply with the notice referred to in paragraph (b);

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

1061ZZDA Effect of notice

If the Secretary gives a notice under section 1061ZZCZ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.

1061ZZDB Transfer of corporation’s rights to Commonwealth

(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.

(2) If the notice was given under subsection 1061ZZCZ(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the end of the period referred to in paragraph 1061ZZCZ(1)(b); and

(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

(3) If the notice was given under subsection 1061ZZCZ(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the commencement of this Chapter; and

(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.

1061ZZDC Apportionment of financial supplement

Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZCZ(1) or (2) are taken to have been made:

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

(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.

1061ZZDD Liability of Commonwealth to corporation

The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.

1061ZZDE Liability of person to Commonwealth

(1) If the notice was given to the person under subsection 1061ZZCZ(1), the person is liable to pay to the Commonwealth an amount equal to the total of:

(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and

(b) the interest subsidy for the period referred to in subsection 1061ZZDB(2).

(2) If the notice was given to the person under subsection 1061ZZCZ(2), the person is liable to pay to the Commonwealth an amount equal to the total of:

(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and

(b) the interest subsidy for the period referred to in subsection 1061ZZDB(3).

1061ZZDF This Subdivision not to affect Subdivision A

This Subdivision does not affect the operation of Subdivision A.

Subdivision C—Original amount paid because of false or misleading information

1061ZZDG Secretary may give notice to person and corporation

(1) If the Secretary is satisfied that:

(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and

(b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and

(c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information;

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

(2) If the Secretary is satisfied that:

(b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and

(c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information;

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

1061ZZDH Effect of notice

If the Secretary gives a notice under section 1061ZZDG to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.

1061ZZDI Transfer of corporation’s rights to Commonwealth

(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.

(2) If the notice was given under subsection 1061ZZDG(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the time when the person had been paid an amount equal to the revised amount; and

(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

(3) If the notice was given under subsection 1061ZZDG(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the commencement of this Chapter; and

(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.

1061ZZDJ Apportionment of financial supplement

Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDG(1) or (2) are taken to have been made:

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

(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.

1061ZZDK Liability of Commonwealth to corporation

The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.

1061ZZDL Liability of person to Commonwealth

(1) If the notice was given to the person under subsection 1061ZZDG(1), the person is liable to pay to the Commonwealth an amount equal to the total of:

(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and

(b) the interest subsidy for the period referred to in subsection 1061ZZDI(2).

(2) If the notice was given to the person under subsection 1061ZZDG(2), the person is liable to pay to the Commonwealth an amount equal to the total of:

(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and

(b) the interest subsidy for the period referred to in subsection 1061ZZDI(3).

1061ZZDM This Subdivision not to affect Subdivision A

This Subdivision does not affect the operation of Subdivision A.

Division 3—Payments to stop if person ceases to be eligible to obtain financial supplement

Subdivision A—Notice that payments are to stop

1061ZZDN Secretary must give notice to person and corporation

(1) This section applies if:

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

(b) the decision (the original decision) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and

(c) because of the review, the original decision is varied so that the person ceases to be eligible to obtain financial supplement.

(2) The Secretary must give written notice to the person and the corporation:

(a) stating that the person ceased to be eligible; and

(b) specifying the date when the person ceased to be eligible.

1061ZZDO Effect of notice

(1) If the Secretary gives a notice under section 1061ZZDN to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.

(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.

(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:

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

(b) are repayable by the person to the corporation; and

1061ZZDP This Subdivision is subject to sections 1061ZZFS and 1061ZZFT

This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.

Subdivision B—Financial supplement paid because person failed to notify change of circumstances

1061ZZDQ Secretary may give notice to person and corporation

(1) If the Secretary is satisfied that:

(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZDN; and

(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change in circumstances, within the period prescribed for complying with the notice; and

(d) the person was paid financial supplement after the end of the period referred to in paragraph (b); and

(e) the payment of financial supplement after the end of that period resulted from the person’s failure to comply with the notice referred to in paragraph (b);

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

(2) If the Secretary is satisfied that:

(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.24 of the Social Security Student Financial Supplement Scheme 1998; and

(d) the payment of financial supplement after the commencement of this Chapter resulted from the person’s failure to comply with the notice referred to in paragraph (b);

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

1061ZZDR Effect of notice

If the Secretary gives a notice under section 1061ZZDQ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.

1061ZZDS Transfer of corporation’s rights to Commonwealth

(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.

(2) If the notice was given under subsection 1061ZZDQ(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the end of the period referred to in paragraph 1061ZZDQ(1)(b); and

(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).

(3) If the notice was given under subsection 1061ZZDQ(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the commencement of this Chapter; and

(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).

(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.

1061ZZDT Apportionment of financial supplement

Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDQ(1) or (2) are taken to have been made:

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

(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.

1061ZZDU Liability of Commonwealth to corporation

The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.

1061ZZDV Liability of person to Commonwealth

(1) If the notice was given to the person under subsection 1061ZZDQ(1), the person is liable to pay to the Commonwealth an amount equal to the total of:

(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and

(b) the interest subsidy for the period referred to in subsection 1061ZZDS(2).

(2) If the notice was given to the person under subsection 1061ZZDQ(2), the person is liable to pay to the Commonwealth an amount equal to the total of:

(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and

(b) the interest subsidy for the period referred to in subsection 1061ZZDS(3).

1061ZZDW This Subdivision not to affect Subdivision A

This Subdivision does not affect the operation of Subdivision A.

Division 4—Payments to stop if person is found never to have been eligible to obtain financial supplement

Subdivision A—Notice that payments are to stop

1061ZZDX Secretary must give notice to person and corporation

(1) This section applies if:

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

(c) because of the review the original decision is varied so that the statement in the supplement entitlement notice given to the person that the person was eligible to obtain financial supplement during an eligibility period was incorrect.

(2) The Secretary must give written notice to the person and the corporation stating that the person had never been eligible to obtain financial supplement.

1061ZZDY Effect of notice

(1) If the Secretary gives a notice under section 1061ZZDX to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.

(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.

(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:

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

(b) are repayable by the person to the corporation; and

1061ZZDZ This Subdivision is subject to sections 1061ZZFS and 1061ZZFT

This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.

Subdivision B—Financial supplement paid because of false or misleading information

1061ZZEA Secretary may give notice to person and corporation

If the Secretary is satisfied that the incorrectness of a statement referred to in section 1061ZZDX that was given to a person who is a party to a financial supplement contract with a participating corporation resulted from false or misleading information given to the Commonwealth about the person, the Secretary may give notice to the person and the corporation stating that he or she is so satisfied and that this Subdivision applies in relation to them.

1061ZZEB Effect of notice

If the Secretary gives a notice under section 1061ZZEA to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.

1061ZZEC Transfer of corporation’s rights to Commonwealth

(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.

(2) If the statement was in a supplement entitlement notice given under subsection 1061ZZAC(3) or 1061ZZAD(4), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the start of the contract period; and

(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).

(3) If the statement was in a supplement entitlement notice referred to in subsection 1061ZZAE(3), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the commencement of this Chapter; and

(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).

(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.

1061ZZED Liability of Commonwealth to corporation

The Commonwealth is liable to pay to the corporation an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula:

1061ZZEE Liability of person

(1) No amount is taken to be outstanding under the contract after the notice is given.

(2) However, the person is liable to pay to the Commonwealth an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula:

1061ZZEF Definitions

In sections 1061ZZED and 1061ZZEE:

amounts notionally repaid means the total of the amounts notionally repaid before the notice was given.

amounts repaid means the total of the amounts repaid under the contract before the notice was given.

interest subsidy means the interest subsidy in relation to financial supplement paid under the contract.

principal sum means the principal sum at the time when the notice was given.

1061ZZEG This Subdivision not to affect Subdivision A

This Subdivision does not affect the operation of Subdivision A.

Division 5—Payments to stop if person dies

1061ZZEH Secretary may give notice to corporation if other party to contract dies

If the Secretary becomes aware that a person who is a party to a financial supplement contract with a participating corporation has died, the Secretary may give written notice to the corporation stating that this Division applies in respect of the contract.

1061ZZEI Effect of notice

If the Secretary gives a notice under section 1061ZZEH to the corporation, the following provisions have effect.

1061ZZEJ Discharge of corporation’s liability

(1) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments under the contract.

(2) However, if the corporation continues to make payments under the contract after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:

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

(b) are repayable from the person’s estate to the corporation; and

1061ZZEK Transfer of corporation’s rights to Commonwealth

(1) The corporation’s rights referred to in subsection (2) are transferred to the Commonwealth, by this subsection, at the earlier of:

(a) the time when the corporation stopped making payments under the contract; or

(b) the end of 4 weeks after the time when the notice was given.

(2) The rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

(a) beginning at the start of the contract period; and

(b) ending at the end of the period of 4 weeks referred to in paragraph (1)(b).

1061ZZEL Liability of Commonwealth to corporation

(1) The Commonwealth is liable to pay to the corporation an amount worked out, as at the earlier of:

(a) the time when the corporation stopped making payments under the contract; or

(b) the end of the period of 4 weeks referred to in paragraph 1061ZZEK(1)(b);

using the formula:

(2) In this section:

amounts notionally repaid means the total of the amounts notionally repaid before the notice was given.

amounts repaid means the total of the amounts repaid under the contract before the notice was given.

principal sum means the principal sum at the time when the notice was given.

1061ZZEM Discharge of person’s liability

The person’s liability to the Commonwealth under the contract as a result of the transfer referred to in section 1061ZZEK is discharged by this section.

Part 2B.3—Repayment of financial supplement through taxation system after termination date

Division 1—Purpose and application of Part

1061ZZEN Purpose and application of Part

This Part provides for the recovery through the taxation system of a person’s debt in respect of financial supplement at the end of 4 years beginning on 1 June in the year immediately after the year in which the relevant financial supplement contract was made.

1061ZZENA Extent of Commissioner of Taxation’s general administration of this Part

The Commissioner of Taxation has the general administration of this Part to the following extent:

(a) Divisions 2 and 4;

(b) Division 5;

(d) section 1061ZZFO.

Note: One effect of this is that this Part is to that extent a taxation law for the purposes of the Taxation Administration Act 1953.

Division 2—FS debt and accumulated FS debt

1061ZZEO FS debt owed by person

(1) If, at the termination date of a financial supplement contract made by a person with a participating corporation, there was or is an amount outstanding under the contract, the person owes an FS debt to the Commonwealth.

(2) The FS debt is taken to have been incurred, or is incurred, as the case may be, on 1 June immediately after the termination date.

1061ZZEP How to work out FS debt

(1) The FS debt is worked out using the formula:

(2) In subsection (1):

amount outstanding means the amount outstanding under the contract at the termination date.

indexation factor means the factor worked out under section 1061ZZET.

1061ZZEQ Accumulated FS debt incurred by person

(1) If:

(a) a person had or has an FS debt or FS debts on 1 June in a year (the later date); and

(b) the debt was not or is not, or the debts did not or do not include, an FS debt that existed on the previous 1 June;

the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.

(2) If:

(a) a person had or has an FS debt or FS debts on 1 June in a year (the later date); and

(b) the debt was or is, or the debts included or include, an FS debt that existed on the previous 1 June (the earlier date);

the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.

1061ZZER How to work out accumulated FS debt

(1) A person’s accumulated FS debt referred to in subsection 1061ZZEQ(1) is an amount equal to the FS debt or the total of the FS debts referred to in that subsection.

(2) A person’s accumulated FS debt referred to in subsection 1061ZZEQ(2) is an amount worked out using the formula:

(3) In subsection (2):

adjusted accumulated FS debt means the person’s adjusted accumulated FS debt on the earlier date.

indexation factor means the factor worked out under section 1061ZZET.

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

1061ZZES Adjusted accumulated FS debt

(1) A person’s adjusted accumulated FS debt on the earlier date is the amount worked out using the formula:

Start formula Accumulated FS debt minus open bracket FSA debts plus Repayments plus Increase FSA debts minus Reductions in FSA debts close bracket end formula

(2) In this section:

accumulated FS debt means the person’s accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.

FSA debts means the total of:

(a) any FS assessment debt or FS assessment debts of the person, assessed on or after the earlier date and before the later date, excluding any FS assessment debt assessed because of a return lodged before the earlier date; and

(b) any FS assessment debt or FS assessment debts of the person, assessed on or after the later date because of a return lodged before the later date.

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

reductions in FSA debts means any amount, or the total of any amounts, by which any FS assessment debt is reduced by an amendment of the relevant assessment (whether as a result of a reduction in the person’s taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.

repayments means any amount, or the total of any amounts, repaid, except in discharge of an FS assessment debt, on or after the earlier date and before the later date in reduction of the accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.

(3) For the purposes of subsection (2), an assessment or an amendment of an assessment is taken to have been made on the date stated in the notice of assessment or notice of amended assessment, as the case may be, to be the date of that notice.

1061ZZET Indexation factor

(1) The indexation factor for the purpose of calculating a person’s FS debt or accumulated FS debt at 1 June in a year (the relevant year), is worked out using the following Method statement.

Method statement

Step 1. Work out the total of the index number for the March quarter in the relevant year and the index numbers for the 3 immediately preceding quarters.

Step 2. Work out the total of the index number for the March quarter immediately before the relevant year and the index numbers for the 3 immediately preceding quarters.

Step 3. Divide the total worked out using Step 1 by the total worked out using Step 2.

Step 4. Round the result to 3 decimal places.

(2) If an indexation factor worked out using the Method statement would end with a number greater than 4 were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.

(3) If, apart from this subsection, the amount of an FS debt or accumulated FS debt worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.

1061ZZEU Accumulated FS debt discharges earlier debts

(1) An accumulated FS debt that a person is taken to have incurred or incurs on 1 June in a year (the relevant date) discharges, or discharges the unpaid part of:

(a) an accumulated FS debt that the person incurred on the previous 1 June; and

(b) an FS debt that the person incurred on the relevant date.

(2) The accumulated FS debt also discharges the person’s liability to pay the amount outstanding immediately before the relevant date.

(3) However, in applying sections 1061ZZEP to 1061ZZET, subsection (1) of this section is disregarded.

Division 3—Information to be given to Commissioner of Taxation

1061ZZEV Secretary to give notice to Commissioner of Taxation

If a person who has made a financial supplement contract with a participating corporation has an FS debt immediately after the termination date of the contract, the Secretary must, if such a notice has not already been given under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, give to the Commissioner of Taxation, as soon as practicable after that date, a notice stating as many of the following matters as the Secretary knows:

(a) the person’s name;

(b) the person’s identifying number;

(d) the person’s tax file number;

(e) the amount of the FS debt or the amounts of the FS debts that the person incurred on 1 June immediately following the termination date;

(f) any other information about the person that is reasonably required by the Commissioner to administer this Part.

1061ZZEW Secretary to give further notice to Commissioner of Taxation

If the Secretary or an officer of the Department is convinced that significant information in a notice referred to in section 1061ZZEV was not, or is no longer, correct, the Secretary must give to the Commissioner of Taxation a further notice setting out the correct information.

1061ZZEX Secretary to give certificate to Commissioner of Taxation

The Secretary must, if asked by the Commissioner of Taxation to do so, give a written certificate to the Commissioner setting out a matter mentioned by the Commissioner that was, or was required to be, set out in a notice under section 1061ZZEV or 1061ZZEW.

Division 4—Voluntary repayments of FS debts

1061ZZEY Voluntary repayments of FS debts

(1) If a person has a debt to the Commonwealth under this Part, he or she may at any time make a payment to reduce the debt.

(2) A payment under subsection (1) must be made to the Commissioner of Taxation.

1061ZZEYA Refunding of payments

If:

(a) a person pays an amount to the Commonwealth under this Division; and

(b) the amount exceeds the sum of:

(i) the amount required to discharge the total debt that the person owed to the Commonwealth under this Part; and

(ii) the total amount of the person’s primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953);

the Commonwealth must refund to the person an amount equal to that excess.

Note: Interest is payable if the Commonwealth is late in paying requested refunds: see Part IIIA of the Taxation (Interest on Overpayments and Early Payments) Act 1983.

Division 5—Compulsory repayments in respect of accumulated FS debt

1061ZZEZ Compulsory payments in respect of accumulated FS debt

(1) If:

(a) a person’s repayment income for the income year 2006‑07 or a subsequent income year exceeds the minimum repayment income for that income year; and

(b) on 1 June immediately preceding the making of an assessment in respect of the person’s income for that income year, the person had an accumulated FS debt;

the person is liable to pay to the Commonwealth, in accordance with this Division, the amount worked out under section 1061ZZFD in reduction of the person’s repayable debt.

(2) A person is not liable under this section to pay an amount for an income year if, under section 8 of the Medicare Levy Act 1986:

(a) no Medicare levy is payable by the person on the person’s taxable income for the income year; or

(b) the amount of the Medicare levy payable by the person on the person’s taxable income for the income year is reduced.

1061ZZFA Repayment income

(1) A person’s repayment income for an income year is an amount equal to the sum of:

(a) the person’s taxable income for the income year, disregarding the person’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for the income year; and

(b) the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for the income year; and

(i) is an employee (within the meaning of the Fringe Benefits Tax Assessment Act 1986); and

(ii) has a reportable fringe benefits total (within the meaning of that Act) for the income year;

the reportable fringe benefits total for the income year; and

(d) the person’s exempt foreign income for the income year; and

(e) the person’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for the income year.

(4) The person’s exempt foreign income is the total amount (if any) by which the person’s income that is exempt from tax under section 23AF or 23AG of the Income Tax Assessment Act 1936 exceeds the total amount of losses and outgoings that the person incurs in deriving that exempt income.

(5) For the purposes of subsection (4), disregard any capital losses and outgoings.

1061ZZFB Minimum repayment income

The minimum repayment income for the 2006‑07 income year or for a later income year is the amount worked out under paragraph 154‑10(b) of the Higher Education Support Act 2003 in respect of that income year.

1061ZZFC Repayable debt for an income year

(1) A person’s repayable debt for an income year is:

(a) the person’s accumulated FS debt referred to in paragraph 1061ZZEZ(1)(b) in relation to that income year; or

(b) if one or more amounts:

(i) have been paid in reduction of that debt; or

(ii) have been assessed under section 1061ZZFH to be payable in respect of that debt;

the amount (if any) remaining after deducting from that debt the amount, or sum of the amounts, so paid or assessed to be payable.

(2) A reference in paragraph (1)(b) to an amount assessed to be payable is, if the amount has been increased or reduced by an amendment of the relevant assessment, a reference to the increased amount or the reduced amount.

1061ZZFD Amounts payable to the Commonwealth

(1) The amount that a person is liable to pay under section 1061ZZEZ, in respect of:

(a) the 2019‑20 income year; or

(b) a later income year;

is the amount worked out using the formula:

where:

applicable percentage of repayment income means an amount equal to so much of the person’s repayable debt for the income year as does not exceed the percentage of the person’s repayment income worked out in respect of the income year using the table in section 154‑20 of the Higher Education Support Act 2003.

relevant income‑contingent loans liability means the amount that is the sum of the following:

(a) the sum of any amounts the person is liable to pay under section 154‑1 or 154‑16 of the Higher Education Support Act 2003 in respect of the income year;

(b) the sum of any amounts the person is liable to pay under section 23EA or 23EC of the VET Student Loans Act 2016 in respect of the income year.

(2) For the purposes of subsection (1), assume that the reference in the table in section 154‑20 of the Higher Education Support Act 2003 to the person’s repayment income is a reference to the person’s repayment income within the meaning of section 1061ZZFA of this Act.

(3) A person is not liable under this section to pay an amount for an income year if the amount worked out under subsection (1) is zero or less.

Division 6—Application of tax legislation

1061ZZFG Application of tax legislation

Part IV of the Income Tax Assessment Act 1936, Division 5 of the Income Tax Assessment Act 1997, and Part IVC of, and Part 4‑15 in Schedule 1 to, the Taxation Administration Act 1953, apply, so far as they can be applied and subject to this Part, to a person’s FS assessment debt as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936.

Note: FS assessment debts are also collected through the Pay As You Go (PAYG) system of collecting income tax: see Parts 2‑1, 2‑5 and 2‑10 in Schedule 1 to the Taxation Administration Act 1953.

1061ZZFGA Charges and administrative penalties for failing to meet obligations

(1) Part 4‑25 in Schedule 1 to the Taxation Administration Act 1953 has effect as if:

(a) any compulsory repayment amount of a person were income tax payable by the person in respect of the income year in respect of which the assessment of that debt was made; and

(b) this Part were an income tax law.

(2) Subsection (1) does not have the effect of making a person liable to a penalty for any act or omission that happened before the commencement of this subsection.

1061ZZFGB Pay as you go (PAYG) withholding

Part 2‑5 (other than section 12‑55 and Subdivisions 12‑E, 12‑F and 12‑G) in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of amounts of a compulsory repayment amount of a person as if the compulsory repayment amount were income tax.

1061ZZFGD Pay as you go (PAYG) instalments

Division 45 in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of a compulsory repayment amount of a person as if the compulsory repayment amount were income tax.

Division 7—Assessments

1061ZZFH Commissioner of Taxation may make assessment

(1) The Commissioner of Taxation may make an assessment of:

(a) the amount of a person’s accumulated FS debt at 1 June immediately before the assessment is made; and

(b) the amount required to be paid to reduce that debt under Division 5.

(2) To make an assessment, the Commissioner may use any information in his or her possession, whether or not it came from a return.

1061ZZFI Notice of assessment may be served

If:

(a) the Commissioner of Taxation is required to serve on a person a notice of assessment in respect of the person’s income of a year of income under section 174 of the Income Tax Assessment Act 1936; and

(b) an assessment (the relevant assessment) has been made in respect of the person of the amounts referred to in section 1061ZZFH but notice of the relevant assessment has not been served on the person;

notice of the relevant assessment may be served by setting out the amounts concerned in the notice referred to in paragraph (a).

Division 8—Commissioner of Taxation may delay assessment

1061ZZFJ Commissioner of Taxation may delay assessment

(1) The Commissioner of Taxation may, on application in the approved form by a person who has an accumulated FS debt, delay the making of an assessment under section 1061ZZFH.

(2) An assessment may be delayed if the Commissioner considers that:

(a) were the assessment to be made, payment of the assessed amount would cause serious hardship to the person; or

(b) there are other special reasons that make it fair and reasonable to delay the assessment.

(3) The Commissioner may delay the assessment for a period that he or she considers appropriate.

(4) In this section:

approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953.

1061ZZFK Commissioner of Taxation may amend assessment

(1) The Commissioner of Taxation may, on application in the approved form by a person who has an accumulated FS debt, amend an assessment made under section 1061ZZFH so that no amount is payable under the assessment.

(2) The Commissioner may amend the assessment if he or she considers that:

(a) payment of the assessed amount has caused or would cause serious hardship to the person; or

(b) there are other special reasons that make it fair and reasonable to make the amendment.

(3) In this section:

approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953.

1061ZZFL When Commissioner of Taxation must make decision to delay or amend assessment

(1) If an application referred to in section 1061ZZFJ or 1061ZZFK is made, the Commissioner of Taxation must, as soon as practicable:

(a) consider it; and

(b) give to the applicant written notice of his or her decision on the application.

(2) A notice of the decision must:

(a) include a statement that, if the applicant is dissatisfied with the decision of the Commissioner on the application, an application may, subject to the Administrative Appeals Tribunal Act 1975, be made to the Administrative Appeals Tribunal for review of the decision; and

(b) except if subsection 28(4) of that Act applies, also include a statement to the effect that the applicant may ask for a statement under section 28 of that Act.

(3) A failure to comply with subsection (2) does not affect the validity of the notice or of the decision to which the notice relates.

Division 9—Review of Commissioner of Taxation’s decision

1061ZZFM Application to Administrative Appeals Tribunal

An applicant under section 1061ZZFJ or 1061ZZFK may apply to the Administrative Appeals Tribunal for review of:

(a) a decision of the Commissioner of Taxation on the application referred to in section 1061ZZFJ; or

(b) a decision by the Commissioner refusing to amend an assessment after receiving the application referred to in section 1061ZZFK.

Division 10—Treatment of payments under financial supplement scheme

1061ZZFN Payments not subject to taxation

(1) An amount paid, or other benefit given, to a person under this Chapter is not subject to taxation under a law of the Commonwealth unless a provision of such a law expressly provides to the contrary.

(2) However, subsection (1) does not affect the liability to taxation of a participating corporation for a subsidy or other amount paid to the corporation under this Chapter.

1061ZZFO Application of payments

An amount paid by a person to reduce the person’s debt to the Commonwealth under this Part must be applied in accordance with the person’s direction or, if there is no direction or the direction does not adequately deal with the matter:

(a) first, to discharge or reduce the person’s FS assessment debts; and

(b) then, to discharge or reduce the person’s accumulated FS debt.

1061ZZFP Debt discharged by death

If a person dies owing a debt owing to the Commonwealth under this Part, other than an FS assessment debt, the debt is discharged by force of this section.

Part 2B.4—Miscellaneous

Division 1—Application of the Bankruptcy Act 1966

1061ZZFQ Application of Division

This Division applies if, after a person makes a financial supplement contract with a participating corporation, whether before or after the termination date:

(a) the person becomes bankrupt; or

(b) the person enters into a personal insolvency agreement under Part X of the Bankruptcy Act 1966.

1061ZZFR Treatment of debt

(1) A debt arising under or out of the contract is not a provable debt in the bankruptcy or for the purposes of the personal insolvency agreement.

(2) A right of the Commonwealth or of the corporation to bring an action or other proceeding against the person in respect of the debt is not affected by the bankruptcy or personal insolvency agreement.

(3) The trustee of the estate of the bankrupt person or the trustee of the personal insolvency agreement is not entitled to recover under the Bankruptcy Act 1966 a payment made by the person to the Commonwealth or to the corporation in respect of the debt.

(4) In this section:

debt arising under or out of the contract:

(a) includes, but is not limited to:

(i) an amount outstanding under the contract; and

(ii) an amount that the person is liable to pay under section 1061ZZDE, 1061ZZDL, 1061ZZDV or 1061ZZEE; and

(iii) an accumulated FS debt that discharges, or discharges the unpaid part of, an FS debt; but

(b) does not include:

(i) a debt constituted by an obligation to repay the amount of a payment that, because of paragraph 1061ZZCV(2)(a), 1061ZZCX(3)(a), 1061ZZDO(3)(a) or 1061ZZDY(3)(a), is not a payment of financial supplement; or

(ii) an FS assessment debt that is required to be paid to reduce an accumulated FS debt.

Division 2—Review of decisions

1061ZZFS What happens if a decision of the Secretary is set aside

(1) Subject to subsection (2), if a decision of the Secretary under this Chapter is set aside after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision had not been made.

(2) If the decision is set aside after a review under Chapter 6 and another decision is substituted for the original decision, this Chapter has effect, and is taken to have always had effect, as if the substituted decision had been the original decision.

1061ZZFT What happens if a decision of the Secretary is varied

If a decision of the Secretary under this Chapter is varied after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision as varied had been the original decision.

Division 3—Transfer of rights under this Chapter

1061ZZFU Notices of transfer

If any rights of a participating corporation to receive a payment from a person under this Chapter are transferred to the Commonwealth, the Secretary must, as soon as practicable, arrange for a written notice to be given to the person:

(a) stating that the rights have been transferred; and

(b) identifying any future payments that, because of the transfer, are required to be made to the Commonwealth.

1061ZZFV Transfers not subject to State or Territory taxes

A transfer to the Commonwealth under this Chapter of any of the corporation’s rights under a financial supplement contract, or any other act or thing done or transaction entered into under this Chapter, is not subject to taxation under a law of a State or Territory.

Chapter 2C—Assurances of support

Part 2C.1—Giving assurances

1061ZZGA What is an assurance of support?

In this Chapter:

assurance of support means an undertaking by a person under this Chapter that the person will pay the Commonwealth an amount equal to the amount of social security payments that are:

(a) received in respect of a period by another person who:

(i) is identified in the undertaking; and

(ii) becomes the holder under the Migration Act 1958 of a visa granted in connection with the undertaking (whether or not the person continues to hold the visa throughout the period); and

(b) specified in a determination in force under section 1061ZZGH when the payments are received.

Note: An assurance of support may relate to social security payments received by 2 or more persons. See paragraph 23(b) of the Acts Interpretation Act 1901.

1061ZZGB Who may give an assurance of support?

A person may give an assurance of support only if the requirements specified for the purposes of this section in a determination under section 1061ZZGH are met in relation to the person.

Note 1: If a person who does not meet the requirements gives an undertaking purporting to be an assurance of support, the undertaking is not an assurance of support (because it is not under this Chapter) and the Secretary is not required either to accept or to reject the purported assurance.

Note 2: This section lets 2 or more persons give an assurance of support if they all meet the requirements specified in a determination under section 1061ZZGH. See paragraph 23(b) of the Acts Interpretation Act 1901.

1061ZZGC How to give an assurance of support

(1) A person gives an assurance of support by:

(a) delivering the assurance in writing in accordance with a form approved by the Secretary:

(i) to a person apparently performing duties at a place approved for the purpose by the Secretary; or

(ii) to a person approved for the purpose by the Secretary; or

(iii) in a manner, and to a place, approved for the purpose by the Secretary; or

(b) giving the assurance in a manner approved by the Secretary for the purposes of this paragraph.

Note: If an undertaking purporting to be an assurance of support is given in some other way, the undertaking is not an assurance of support (because it is not under this Chapter) and the Secretary is not required either to accept or to reject the purported assurance.

(2) A form approved for the purposes of paragraph (1)(a) may include other undertakings as well as the assurance of support.

(3) A place or person approved for the purposes of paragraph (1)(a) may be in or out of Australia.

(4) The Secretary’s power to approve for the purposes of paragraph (1)(b) is not limited by any other provision of this section.

Material to accompany assurance of support

(5) When a person is giving an assurance of support, the person must also give the following material in a way in which an assurance of support may be given under subsection (1):

(a) information specified in a form approved by the Secretary;

(b) documents specified by the Secretary.

(6) If the person giving the assurance of support contravenes subsection (5), the assurance is taken not to have been given.

Part 2C.2—Acceptance of assurances

1061ZZGD Accepting or rejecting an assurance of support

(1) If an assurance of support is given under this Chapter, the Secretary must accept or reject the assurance.

Accepting the assurance

(2) The Secretary may accept the assurance, but only if:

(a) he or she is satisfied that the requirements that are specified for the purposes of this paragraph in a determination under section 1061ZZGH and relate to the person who gave the assurance are met; and

(b) the requirements in subsection (3) are met, if the assurance is in respect of:

(i) a visa of a kind that can be granted under the Migration Act 1958 only if an assurance of support is accepted; and

(ii) another person who was at least 18 at the time of the application for the visa;

(whether or not the assurance is also in respect of someone else who was under 18 at the time of the application for the visa).

Note 1: The Secretary may accept an assurance given by 2 or more persons only if satisfied that the requirements specified in a determination under item 3 of the table in subsection 1061ZZGH(1) and relating to all of them are met. See paragraph 23(b) of the Acts Interpretation Act 1901.

Note 2: Subparagraph (2)(b)(i) does not apply to a visa of a kind in relation to which there is a discretion to request an assurance of support, because a visa of that kind can be granted without accepting an assurance if one is not requested (even if, in a case in which an assurance is requested, acceptance of the assurance is a condition for the grant of the visa).

(3) At least one person who gave the assurance must have given the Secretary a single security for the liability that may be incurred, under section 1061ZZGG in connection with the assurance and a social security payment received by anyone identified in the assurance, by everyone who gave the assurance. The security must:

(a) be in a form approved by the Secretary; and

(b) be of a value specified for the purposes of this paragraph in a determination under section 1061ZZGH.

Rejecting the assurance

(4) The Secretary may reject the assurance.

(5) The circumstances in which the Secretary may reject the assurance include failure of the person giving the assurance to attend an interview relating to the assurance as requested by the Secretary. This subsection does not limit subsection (4).

1061ZZGE Notices relating to an assurance of support

(1) If the Secretary accepts or rejects an assurance of support, he or she must give written notice of the acceptance or rejection to:

(a) the person who gave the assurance; and

(b) the Minister administering the Migration Act 1958.

The notice must name the person in respect of whom the assurance was given.

(2) If:

(a) the Secretary has accepted an assurance of support given by a person (the assurer) in respect of another person and a visa; and

(b) the Secretary is informed that the other person:

(i) is a holder under the Migration Act 1958 of the visa; and

(ii) has entered the migration zone (as defined in that Act) before, on or after becoming the holder of the visa;

the Secretary must give the assurer written notice of the period for which the assurance is in force in respect of the other person.

Note: Section 1061ZZGF explains when an assurance of support is in force in respect of the other person.

(3) If the assurance of support ceases to be in force in respect of the other person at a time determined by the Secretary under subparagraph 1061ZZGF(1)(b)(ii) or (iii), the Secretary must give the assurer written notice of that fact.

Part 2C.3—Effect of accepted assurances

1061ZZGEA Assurance cannot be withdrawn once visa issued

A person who has given an assurance of support that has been accepted under this Chapter cannot withdraw that assurance once the person in respect of whom the assurance was given becomes the holder under the Migration Act 1958 of a visa granted in connection with the assurance.

1061ZZGF When an accepted assurance is in force

(1) For the purposes of this Act, an assurance of support that has been given in respect of a person identified in the assurance and has been accepted under this Chapter:

(a) comes into force in respect of the person at the later of the following times:

(i) the time at which the person becomes under the Migration Act 1958 the holder of the visa that was granted under that Act in connection with the assurance;

(ii) the time at which the person enters the migration zone (as defined in that Act) as the holder of the visa; and

(b) remains in force in respect of the person until the earliest of the following times:

(i) the end of the period specified for the purposes of this subparagraph in a determination under section 1061ZZGH;

(ii) the time (if any) determined by the Secretary under subsection (2);

(iii) if a circumstance specified for the purposes of this subparagraph in a determination under section 1061ZZGH applies in relation to the assurance—the time determined by the Secretary in relation to that circumstance.

Note: An assurance of support given in respect of 2 or more persons may be in force at different times in respect of each of those persons.

(2) The Secretary may determine that the assurance of support ceases to be in force in respect of the person at the time (which may be before the determination is made) another assurance of support comes into force in respect of the person.

(3) For the purposes of this Act, an assurance of support (as defined in section 1061ZZGA) is in force in respect of a person only for the period for which it is in force in respect of the person under subsection (1) of this section.

(4) Except as provided by paragraph (1)(b), an assurance of support that has come into force in respect of a person remains in force in respect of that person in spite of any change in circumstances whatsoever (including any purported withdrawal, however described, of the assurance).

1061ZZGG Liability to pay for social security payments

(1) This section has effect if:

(a) a person (the assurer) has given an assurance of support that has been accepted under this Chapter; and

(b) a social security payment is received, by another person who is identified in the assurance, in respect of all or part of the period for which the assurance is in force in respect of the other person; and

(c) the social security payment is specified for the purposes of this section in a determination in force under section 1061ZZGH when the payment is received.

(2) The assurer is liable to pay the Commonwealth the amount of the social security payment.

(3) If the assurance was given by more than one person, all of the persons who gave it are jointly and severally liable to pay the Commonwealth the amount of the social security payment.

Part 2C.4—Determinations

1061ZZGH Determinations

(1) The Minister must, by legislative instrument, make a determination specifying, for the purposes of the provisions mentioned in the table, the things in the table.

Determinations
	Provision(s)	Things to be specified
1	Definition of assurance of support in section 1061ZZGA and section 1061ZZGG	Social security payments
2	Section 1061ZZGB	Requirements to be met in relation to persons for them to be permitted by section 1061ZZGB to give assurances of support
3	Paragraph 1061ZZGD(2)(a)	Requirements to be met in relation to persons giving assurances of support for the Secretary to be permitted by subsection 1061ZZGD(2) to accept such assurances
4	Paragraph 1061ZZGD(3)(b)	Values of securities to be given for the Secretary to be permitted to accept assurances of support
5	Subparagraph 1061ZZGF(1)(b)(i)	Periods for which assurances of support accepted under this Chapter remain in force in respect of persons under section 1061ZZGF
6	Subparagraph 1061ZZGF(1)(b)(iii)	Circumstances in which assurances of support accepted under this Chapter cease to be in force

Note 1: A determination may specify matters and things by reference to classes and may make different provision with respect to different matters or classes of matters. See the Legislation Act 2003.

Note 2: The Minister may amend a determination by another legislative instrument. See the Acts Interpretation Act 1901.

(2) A determination may specify, as a requirement to be met in relation to a person (the assurer) giving an assurance of support for the Secretary to be permitted by subsection 1061ZZGD(2) to accept the assurance, a requirement that relates to:

(a) the members of a couple consisting of the assurer and the assurer’s partner; or

(b) the assurer’s partner.

This subsection does not limit the requirements that may be specified under item 3 of the table in subsection (1) of this section.

(3) Before making a determination specifying a thing described in item 4 or 5 of the table in subsection (1), the Minister must ask the Minister administering the Migration Act 1958 for comments on the things that should be specified and consider the comments (if any) received.

Part 2C.5—Assurances by unincorporated bodies

1061ZZGI Application of social security law to unincorporated bodies

(1) This Chapter, and the rest of the social security law so far as it relates to this Chapter, apply to an unincorporated body or association (the body) as if it were a person other than an individual, but they apply with the following changes.

Acts of certain persons treated as acts of the body

(2) One change is that anything done or omitted by or in relation to:

(a) if the body is a partnership—a partner; or

(b) in any other case—a member of the committee of management of the body;

on behalf of the body is taken to have been done or omitted by the body.

Imposition of obligations and liabilities

(3) Another change is that obligations, or liabilities under section 1061ZZGG, that would be imposed on the body are imposed instead on:

(a) if the body is a partnership—each partner; or

(b) in any other case—each member of the committee of management of the body;

but they may be discharged by any of the partners or any of those members.

The body cannot commit an offence

(4) Another change is that if, apart from this subsection, the body would commit an offence, the body does not commit the offence.

Example: Subsection (1) applies section 217 of the Social Security (Administration) Act 1999 to the body as if it were a person. That section provides that a person who contravenes certain provisions of that Act about false or misleading statements commits an offence. The body does not commit an offence if it contravenes those provisions by making a false or misleading statement.

Limit on scope of changes

(5) Subsections (2) and (3) do not affect:

(a) whether, for the purposes of section 1061ZZGB (about giving an assurance of support), the requirements specified in a determination under section 1061ZZGH are met in relation to the body; or

(b) whether, for the purposes of paragraph 1061ZZGD(2)(a) (about accepting an assurance of support), the requirements specified in a determination under section 1061ZZGH are met in relation to the body.

Note: Whether the body may give an assurance of support and whether such an assurance may be accepted depend on whether the requirements specified in relation to the body are met, rather than whether requirements relating to a person who is a partner or member of the body’s management committee are met in relation to that partner or member.

(6) A determination under section 1061ZZGH (applying in accordance with this section) may specify, for the purposes of section 1061ZZGB or paragraph 1061ZZGD(2)(a) (as so applying in relation to the body), a requirement that relates to:

(a) one or more of the partners, if the body is a partnership; or

(b) some or all of the members of the body or of its committee of management, if the body is not a partnership.

This subsection does not limit the requirements relating to the body that may be specified.

Chapter 2D—Arrangements and grants relating to assisting persons to obtain and maintain paid work

1062 Simplified outline of this Chapter

The Employment Secretary may, on behalf of the Commonwealth, make, vary or administer an arrangement for the making of payments by the Commonwealth, or make, vary or administer a grant of financial assistance, in relation to various activities aimed at assisting unemployed or other persons to obtain and maintain paid work.

1062A Arrangements and grants relating to assisting persons to obtain and maintain paid work

(1) The Employment Secretary may, on behalf of the Commonwealth, make, vary or administer an arrangement for the making of payments by the Commonwealth, or make, vary or administer a grant of financial assistance, in relation to:

(a) assisting unemployed persons to obtain and maintain paid work; or

(b) assisting other persons to obtain and maintain paid work; or

(c) assisting persons at risk of losing paid work to maintain that paid work or to obtain and maintain other paid work; or

(d) assisting unemployed persons to become self‑employed; or

(e) assisting other persons to become self‑employed; or

(f) assisting recipients of participation payments (within the meaning of the Administration Act) to meet their mutual obligation requirements; or

(g) the funding of measures designed to reduce discrimination in employment practices and to encourage workforce participation, including in relation to mature aged, young and Indigenous persons, persons with a disability and parents seeking to re‑join the workforce; or

(h) the provision of online employment services; or

(i) the funding of projects to create pathways to paid work and to address labour shortages; or

(j) the funding of the activities of employment services providers; or

(k) the provision of wage subsidies or other incentives to employers to employ unemployed persons; or

(l) an activity determined in an instrument under subsection (2); or

(m) a matter that is incidental or ancillary to a matter mentioned in paragraph (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k) or (l).

(2) The Employment Minister may, by legislative instrument, determine an activity for the purposes of paragraph (1)(l).

Reimbursement of costs or expenses

(3) An arrangement under subsection (1) may provide for the Commonwealth to reimburse, or partly reimburse, costs or expenses.

(4) A grant under subsection (1) may be made by way of the reimbursement, or partial reimbursement, of costs or expenses.

(5) Subsections (3) and (4) do not limit subsection (1).

Definitions

(6) In this section:

arrangement includes a contract, agreement, deed or understanding.

Indigenous person has the same meaning as in the Indigenous Education (Targeted Assistance) Act 2000.

make, in relation to an arrangement, includes enter into.

1062B Constitutional limits

An arrangement or grant referred to in section 1062A must be with respect to one or more of the following:

(a) the provision of unemployment benefits, or other benefits, allowances, services or endowment, referred to in paragraph 51(xxiiiA) of the Constitution;

(b) implementing any of Australia’s international obligations under the ILO Convention (No. 88) concerning the Organisation of the Employment Service done at San Francisco on 9 July 1948 ([1950] ATS 9), as amended and in force for Australia from time to time;

(c) implementing any of Australia’s international obligations under the ILO Convention (No. 122) concerning Employment Policy done at Geneva on 9 July 1964 ([1970] ATS 17), as amended and in force for Australia from time to time;

(d) implementing any of Australia’s international obligations under the ILO Convention (No. 142) concerning Vocational Guidance and Vocational Training in the Development of Human Resources done at Geneva on 23 June 1975 ([1986] ATS 2), as amended and in force for Australia from time to time;

(e) implementing any of Australia’s international obligations under the International Covenant on Economic, Social and Cultural Rights done at New York on 16 December 1966 ([1976] ATS 5), as amended and in force for Australia from time to time;

(f) implementing any of Australia’s international obligations under the Convention on the Elimination of All Forms of Discrimination Against Women done at New York on 18 December 1979 ([1983] ATS 9), as amended and in force for Australia from time to time;

(g) implementing any of Australia’s international obligations under the Convention on the Rights of the Child done at New York on 20 November 1989 ([1991] ATS 4), as amended and in force for Australia from time to time;

(h) implementing any of Australia’s international obligations under the Convention on the Rights of Persons with Disabilities done at New York on 13 December 2006 ([2008] ATS 12), as amended and in force for Australia from time to time;

(i) the granting of financial assistance to a State or Territory;

(j) a Territory;

(k) people to whom paragraph 51(xxvi) of the Constitution applies;

(l) postal, telegraphic, telephonic or other like services within the meaning of paragraph 51(v) of the Constitution;

(m) aliens within the meaning of paragraph 51(xix) of the Constitution;

(n) the implied power of the Parliament to make laws with respect to nationhood;

(o) matters incidental to the execution of any of the legislative powers of the Parliament or the executive power of the Commonwealth.

Note: The text of a Convention or Covenant could in 2022 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

1062C Executive power of the Commonwealth

This Chapter does not, by implication, limit the executive power of the Commonwealth.

1062D Inclusion of information in annual report

The Employment Secretary, when preparing the Employment Department’s annual report under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period, must include the following information in that report:

(a) the total of the amounts paid in that period under arrangements or grants referred to in section 1062A;

(b) the total number of arrangements and grants referred to in section 1062A that were made in that period.

Chapter 3—General provisions relating to payability and rates

Part 3.1—Rate Calculators (General)

1062E Steps in rate calculation

(1) The following are the usual steps in the rate calculation process:

(a) start with a maximum basic rate;

(b) add any additional amounts that are subject to income or assets testing;

(d) add any additional amounts that are not subject to income or assets testing.

(2) The overall rate calculation process is usually described in an early Module of the relevant Rate Calculator.

1063 Standard categories of family situations

(1) The Rate Calculators use the following standard categories of family situations:

– not member of a couple;

– member of a couple (or partnered);

– partnered (partner getting neither pension nor benefit);

– partnered (partner getting pension or benefit);

– partnered (partner getting pension);

– partnered (partner getting benefit);

– partnered (partner in gaol).

Note: See section 4 for definitions of those terms.

(2) If it is necessary to distinguish between the members of sub‑categories of these standard categories further words of description are added to the standard category label.

Part 3.2—Pension Rate Calculator A

1064 Rate of age and disability support pensions and carer payment (people who are not blind)

(1) The rate of:

(a) age pension; and

(b) disability support pension of a person who has turned 21, or of a person who has not turned 21 and has one or more dependent children; and

(d) carer payment;

is, subject to subsection (2), to be calculated in accordance with the Rate Calculator at the end of this section.

Note 1: Module A of the Rate Calculator establishes the overall rate calculation process and the remaining Modules provide for the calculation of the component amounts used in the overall rate calculation.

Note 2: The rate obtained by applying the Rate Calculator may be reduced because of:

the receipt of compensation (see Part 3.14); or
overseas portability (see Part 4.2—Division 3); or
the receipt of payments under the New Enterprise Incentive Scheme (see Part 3.15).

Note 3: For dependent child see section 5.

(2) Subsection (1) does not apply to a person’s age or disability support pension if the person is permanently blind.

Note: The rate for an age pension or disability support pension payable to a person who is permanently blind is dealt with in section 1065.

(4) If:

(a) a person has a relationship with another person, whether of the same sex or a different sex (other person); and

(b) the relationship between them is a de facto relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A));

the person’s pension rate is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.

Note: This provision has the effect of taking into account the ordinary income, maintenance income and assets of the partner in applying the ordinary income test, maintenance income test and assets test respectively.

Rate limited for armed service widow

(5) If:

(a) an armed services widow 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

(b) one of the following is payable to the widow:

(i) an age pension;

(ii) a disability support pension;

(iv) a carer payment;

the widow’s pension rate is not to exceed:

(i) the widow has been receiving the payment referred to in paragraph (a) continuously since before 1 November 1986; and

(ii) immediately before 1 November 1986, the widow was receiving a payment referred to in paragraph (b) at a rate exceeding $3,247.40; and

(iii) the pension referred to in paragraph (b) is of the same type as the one which was payable to the person before 1 November 1986;

the rate of pension received by the widow immediately before 1 November 1986; and

(d) in any other case—$3,247.40.

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

Rate limited for armed services widower

(6) If:

(a) an armed services widower 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

(b) one of the following is payable to the widower:

(i) an age pension;

(ii) a disability support pension;

(iii) a carer payment;

the rate of pension payable to the widower is not to exceed $3,247.40.

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

(7) If:

(a) an armed services widow or an armed services widower is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; and

(b) one of the following is payable to the widow or widower:

(i) an age pension;

(ii) a disability support pension;

(iv) a carer payment;

the rate of pension payable to the widow or widower is not to exceed $3,247.40.

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

Pension Rate Calculator A

Method of calculating rate

1064‑A1 The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out the person’s maximum basic rate using MODULE B below.

Step 1A. Work out the amount of pension supplement using Module BA below.

Step 1B. Work out the energy supplement (if any) using Module C below.

Step 3. Work out the amount per year (if any) for rent assistance in accordance with paragraph 1070A(b).

Step 4. Add up the amounts obtained in Steps 1, 1A, 1B and 3: the result is called the maximum payment rate.

Step 5. Apply the ordinary income test using MODULE E below to work out the income reduction.

Note: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.

Step 8. Take the income reduction away from the maximum payment rate: the result is called the income reduced rate.

Step 9. Apply the assets test using MODULE G below to work out the reduction for assets.

Step 10. Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.

Step 11. Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate.

Step 12. The rate of pension is the amount obtained by:

(a) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

Note 1: If a person’s assets reduced rate is less than the person’s income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).

Note 2: Section 1210 deals with the application of income and assets test reductions.

Note 3: The rate calculation for a member of a couple is affected by the operation of points 1064‑A2 and 1064‑A3.

Note 4: In some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

Note 5: A person’s rate may also be reduced because the person or the person’s partner receives compensation (see section 1173) or because the person or the person’s partner is receiving a foreign pension (see scheduled international social security agreements at section 1208).

Note 7: Clause 146 of Schedule 1A may affect the provisional annual payment rate in step 11.

Members of a couple

1064‑A2 Where 2 people are members of a couple, they will be treated as pooling their resources (income and assets) and sharing them on a 50/50 basis (see points 1064‑E2 and 1064‑G2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see section 1070V).

Module BA—Pension supplement

Maximum basic rate

1064‑B1 A person’s maximum basic rate depends on the person’s family situation. Work out which family situation in Table B applies to the person. The maximum basic rate is the corresponding amount in column 3.

Table B—Maximum basic rates
Column 1 Item	Column 2 Person’s family situation	Column 3 Rate per year	Column 4 Rate per fortnight
1.	Not member of couple	$8,114.60	$312.10
2.	Partnered	$6,767.80	$260.30
3.	Member of illness separated couple	$8,114.60	$312.10
4.	Member of respite care couple	$8,114.60	$312.10
5.	Partnered (partner in gaol)	$8,114.60	$312.10

Note 1: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: The maximum basic rates are adjusted 6 monthly: see sections 1191 to 1198A.

Pension supplement

1064‑BA1 A pension supplement amount is to be added to the person’s maximum basic rate.

Residents in Australia etc.

1064‑BA2 If the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks;

the person’s pension supplement amount is:

(d) otherwise—the amount worked out under point 1064‑BA3.

Residents in Australia etc.—no election in force

1064‑BA3 The person’s pension supplement amount is the amount worked out by:

(a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

(b) if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a multiple of $2.60;

rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Item	Person’s family situation	Use this %
1	Not member of couple	66.33%
2	Partnered	50%
3	Member of illness separated couple	66.33%
4	Member of respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For combined couple rate of pension supplement, see subsection 20A(1).

Residents in Australia etc.—election in force

1064‑BA4 The person’s pension supplement amount is the amount worked out as follows:

(a) work out the amount for the person under point 1064‑BA3 as if the election were not in force;

(b) from that amount, subtract the person’s minimum pension supplement amount.

Persons absent from Australia for more than 6 weeks

1064‑BA5 If the person is not covered by point 1064‑BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.

Module C—Energy supplement

1064‑C1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

Note: Section 918 may affect the addition of the energy supplement.

1064‑C2 However, this Module does not apply if quarterly energy supplement is payable to the person.

1064‑C3 The person’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Person’s family situation	Amount of energy supplement
1	Not a member of a couple	$366.60
2	Partnered	$275.60
3	Member of an illness separated couple	$366.60
4	Member of a respite care couple	$366.60
5	Partnered (partner in gaol)	$366.60

Module E—Ordinary income test

Effect of income on maximum payment rate

1064‑E1 This is how to work out the effect of a person’s ordinary income on the person’s maximum payment rate:

Method statement

Step 1. Work out the amount of the person’s ordinary income on a yearly basis.

Note 1: For the treatment of the ordinary income of members of a couple see point 1064‑E2.

Note 2: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.

Step 2. Work out the person’s ordinary income free area (see point 1064‑E4 below).

Note: A person’s ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person’s maximum payment rate.

Step 3. Work out whether the person’s ordinary income exceeds the person’s ordinary income free area.

Step 4. If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

Step 5. If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Step 6. Use the person’s ordinary income excess to work out the person’s reduction for ordinary income using points 1064‑E10 to 1064‑E12 below.

Note 1: See point 1064‑A1 (Steps 5 to 8) for the significance of the person’s reduction for ordinary income.

Note 2: The application of the ordinary income test is affected by provisions concerning:

the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);
the work bonus (section 1073AA);
business income (sections 1074 and 1075);
income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);
income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);
disposal of income (sections 1106 to 1111).

Ordinary incomes of members of couples

1064‑E2 If a person is a member of a couple, add the couple’s ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s ordinary income for the purposes of this Module.

Note: For the purposes of working out a person’s disability support pension rate under this Rate Calculator, Module F applies to working out the ordinary incomes of both members of the couple.

Payment of arrears of periodic compensation payments

1064‑E3 If:

(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving age pension, disability support pension or carer pension; and

(b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.

Note: For periodic payments period see section 17.

How to calculate a person’s ordinary income free area

1064‑E4 A person’s ordinary income free area is worked out using Table E‑1. Work out which family situation in Table E‑1 applies to the person. The ordinary income free area is the corresponding amount in column 3.

Table E‑1—Ordinary free area limits
Column 1 Item	Column 2 Category of person	Column 3 Basic free area per year	Column 4 Basic free area per fortnight
1.	Not member of a couple	$2,080	$80
2.	Partnered (partner getting neither pension nor benefit)	$1,820	$70
3.	Partnered (partner getting benefit)	$1,820	$70
4.	Partnered (partner getting pension)	$1,820	$70

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 3: Items 2, 3 and 4 of Table E‑1 apply to members of illness separated and respite care couples.

Note 4: The basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).

Pension reduction for ordinary income in excess of ordinary income free area

1064‑E10 A person’s reduction for ordinary income is:

Ordinary income excess

1064‑E11 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Module F—Ordinary income for the purposes of disability support pension

Application of this Module

1064‑F1 This Module applies only for the purposes of working out the rate of disability support pension payable to a person. It so applies to that person and, if the person is a member of a couple, to the person’s partner.

Lump sum payments arising from termination of employment

1064‑F2 Subject to points 1064‑F4 to 1064‑F14 (inclusive), if:

(a) a person’s employment has been terminated; and

(b) as a result the person is entitled to a lump sum payment from the person’s former employer;

the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.

Certain leave payments taken to be ordinary income—employment continuing

1064‑F4 If:

(a) a person is employed; and

(b) the person is on leave for a period; and

(c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

Certain payments taken to be ordinary income—employment terminated

1064‑F5 If:

(a) a person’s employment has been terminated; and

(b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.

More than one termination payment on a day

1064‑F6 If:

(a) a person is covered by point 1064‑F5; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing

1064‑F7 If a person is covered by point 1064‑F4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated

1064‑F8 If a person is covered by point 1064‑F5, the income maintenance period starts, subject to point 1064‑F9, on the day on which the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

1064‑F9 If:

(a) a person who is covered by point 1064‑F5 is subject to an income maintenance period (the first period); and

(b) the person is paid another termination payment during that period (the second termination payment);

the income maintenance period for the second termination payment starts on the day after the end of the first period.

Leave payments or termination payments in respect of periods longer than a fortnight

1064‑F10 If:

(a) a person receives a leave payment or termination payment; and

(b) the payment is in respect of a period longer than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.

1064‑F11 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the pension claimed may not be payable to the person; or

(b) the amount of the pension payable to the person may be reduced.

When a person receives a leave payment or a termination payment

1064‑F12 For the purposes of points 1064‑F4 to 1064‑F11 (inclusive), a person (the first person) is taken to receive a leave payment or termination payment if:

(a) the payment is made to another person:

(i) at the direction of the first person or a court; or

(ii) on behalf of the first person; or

(iii) for the benefit of the first person; or

(b) the first person waives or assigns his or her right to receive the payment.

Single payment in respect of different kinds of termination payments

1064‑F13 If a person who is covered by point 1064‑F5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1064‑F4 to 1064‑F12 (inclusive):

(a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and

(b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions

1064‑F14 In this Module:

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include:

(a) an instalment of parental leave pay; or

(b) dad and partner pay.

payment fortnight means a fortnight in respect of which a disability support pension is paid, or would be paid apart from the application of an income maintenance period, to a person.

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or

(c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if:

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

redundancy payment includes a payment in lieu of notice.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

Module G—Assets test

Effect of assets on maximum payment rate

1064‑G1 This is how to work out the effect of a person’s assets on the person’s maximum payment rate:

Method statement

Step 1. Work out the value of the person’s assets.

Note 1: For the treatment of the assets of members of a couple see point 1064‑G2.

Note 2: For the assets that are to be disregarded in valuing a person’s assets see section 1118.

Note 3: For the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Step 2. Work out the person’s assets value limit (see point 1064‑G3 below).

Note: A person’s assets value limit is the maximum value of assets the person can have without affecting the person’s pension rate.

Step 3. Work out whether the value of the person’s assets exceeds the person’s assets value limit.

Step 4. If the value of the person’s assets does not exceed the person’s assets value limit, the person’s assets excess is nil.

Step 5. If the value of the person’s assets exceeds the person’s assets value limit, the person’s assets excess is the value of the person’s assets less the person’s assets value limit.

Step 6. Use the person’s assets excess to work out the person’s reduction for assets using points 1064‑G4 to 1064‑G7 below.

Note 1: See point 1064‑A1 (steps 9 and 10) for the significance of the person’s reduction for assets.

Note 2: The application of the assets test is affected by provisions concerning disposal of assets (sections 1123 to 1128), retirement villages (sections 1145 to 1157) and financial hardship (sections 1129 and 1130).

Value of assets of members of couples

1064‑G2 For the purposes of this Module:

(a) the value of the assets of a member of a couple is to be taken to be 50% of the sum of:

(i) the value of the person’s assets; and

(ii) the value of the person’s partner’s assets; and

(b) the value of the assets of a particular kind of a member of a couple is to be taken to be 50% of the sum of:

(i) the value of the person’s assets of that kind; and

(ii) the value of the person’s partner’s assets of that kind.

Assets value limit

1064‑G3 A person’s assets value limit is worked out using Table G‑1. Work out the person’s family situation and home ownership situation. The assets value limit is the corresponding amount in column 3.

Table G‑1—Assets value limit
Column 1	Column 2	Column 3 Assets value limit
Item	Person’s family situation	Column 3A Either person or partner homeowner	column 3B Neither person nor partner homeowner
1.	Not member of a couple	$250,000	$450,000
2.	Partnered (partner getting neither pension nor benefit)	$187,500	$287,500
3.	Partnered (partner getting pension or benefit)	$187,500	$287,500

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see section 4.

Note 2: For homeowner see section 11.

Note 3: Items 2 and 3 apply to members of illness separated and respite care couples.

Note 4: The assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).

Pension reduction for assets in excess of assets value limit

1064‑G4 A person’s reduction for assets is worked out using Table G‑2. Work out which family situation applies to the person. The reduction for assets is the amount per year worked out using the corresponding calculation in column 3.

Table G‑2—Reduction for assets
Column 1 Item	Column 2 Person’s family situation	Column 3 Reduction
1.	Not member of a couple	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$
2.	Partnered (partner getting neither pension nor benefit)	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$
3.	Partner (partner getting pension or benefit)	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 4: For assets excess see point 1064‑G5 below.

Assets excess

1064‑G5 A person’s assets excess is the value of the person’s assets less the person’s assets value limit.

1064‑G7 In calculating a person’s assets excess under point 1064‑G5 disregard any part of the excess that is not a multiple of $250.

Module H—Remote area allowance

Remote area allowance

1064‑H1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

(aa) either:

(i) the person’s rate of pension apart from this point is greater than nil; or

(ii) apart from this point, the person’s rate of pension would be nil merely because an election by the person under subsection 1061VA(1) is in force; and

(a) the person’s usual place of residence is situated in the remote area; and

(b) the person is physically present in the remote area.

Note: For remote area and physically present in the remote area see section 14.

Rate of remote area allowance

1064‑H2 The rate of remote area allowance payable to a person is worked out using Table H. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each FTB child, and each regular care child, of the person.

Table H—Remote area allowance
Column 1 Item	Column 2 Person’s family situation	Column 3 Basic allowance per year	Column 4 Basic allowance per fortnight	Column 5 Additional allowance per year	Column 6 Additional allowance per fortnight
1.	Not member of couple	$473.20	$18.20	$189.80	$7.30
2.	Partnered	$405.60	$15.60	$189.80	$7.30
3.	Member of illness separated couple	$473.20	$18.20	$189.80	$7.30
4.	Member of respite care couple	$473.20	$18.20	$189.80	$7.30
5.	Partnered (partner in gaol)	$473.20	$18.20	$189.80	$7.30

Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Special rule where partner has an FTB or regular care child but is not receiving a pension

1064‑H5 If:

(a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

(b) the person’s partner is not receiving a pension or benefit; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child

1064‑H6 If:

(a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

(b) the person’s partner has an FTB child or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1064‑H7 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.

Part 3.3—Pension Rate Calculator B

1065 Rate of age and disability support pension (blind people)

(1) The rate of:

(a) age pension payable to a person who is permanently blind; and

(b) disability support pension payable to a person who:

(i) is permanently blind; and

(ii) has turned 21; and

(i) is permanently blind; and

(ii) has not turned 21; and

(iii) has one or more dependent children;

is to be calculated in accordance with the Rate Calculator at the end of this section.

Note 2: For dependent child see section 5.

(3) Where:

(a) a person who is permanently blind has a relationship with another person, whether of the same sex or a different sex (other person); and

the rate of pension payable to the person who is permanently blind is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.

Rate limited for certain armed services widows

(4) If:

(a) an armed services widow 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

(b) an age or disability support pension is payable to the widow;

the rate of pension payable to the widow is not to exceed:

(i) the widow has been receiving the payment referred to in paragraph (a) continuously since before 1 November 1986; and

(ii) immediately before 1 November 1986, the widow was receiving a payment referred to in paragraph (b) at a rate exceeding $3,247.40; and

(iii) the pension referred to in paragraph (b) is of the same type as the one which was payable to the person before 1 November 1986;

the rate of pension received by the widow immediately before 1 November 1986; and

(d) in any other case—$3,247.40.

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

Rate limited for certain armed services widowers

(5) If:

(a) an armed services widower 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

(b) an age or disability support pension is payable to the widower;

the rate of pension payable to the widower is not to exceed $3,247.40.

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

Rate limited for certain armed services widows and widowers

(6) If:

(b) an age or disability support pension is payable to the widow or widower;

the rate of pension payable to the widow or widower is not to exceed $3,247.40.

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

Pension Rate Calculator B

Method of calculating rate

1065‑A1 The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out what would be the person’s rate of pension if Pension Rate Calculator A applied to the person: the result is called the notional income/assets tested rate.

Step 2. Work out the person’s maximum basic rate using MODULE B below.

Step 2A. Work out the amount of pension supplement using Module BA below.

Step 3. Work out the energy supplement (if any) using Module C below.

Step 4. Add up the amounts obtained in Steps 2, 2A and 3: the result is called the maximum payment rate.

Step 5. Work out the non‑income/assets tested rate by:

(a) subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and

(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

Step 6. Compare the notional income/assets tested rate and the non‑income/assets tested rate: whichever is the greater is the person’s rate of pension.

Note 1: The person will also be qualified for a pharmaceutical allowance under Part 2.22.

Note 2: An amount of remote area allowance is to be added under Step 5 only if the person’s rate of pension after Step 4 is greater than nil.

Module BA—Pension supplement

Maximum basic rate

1065‑B1 A person’s maximum basic rate depends on the person’s family situation. Work out which family situation in Table B applies to the person. The maximum basic rate is the corresponding amount in column 3 of the Table.

Table B—Maximum basic rates
Column 1 Item	Column 2 Person’s family situation	Column 3 Rate per year	Column 4 Rate per fortnight
1.	Not member of couple	$8,114.60	$312.10
2.	Partnered	$6,767.80	$260.30
3.	Member of illness separated couple	$8,114.60	$312.10
4.	Member of respite care couple	$8,114.60	$312.10
5.	Partnered (partner in gaol)	$8,114.60	$312.10

Note 1: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: The maximum basic rates are adjusted 6 monthly: see sections 1191 to 1198A.

Pension supplement

1065‑BA1 A pension supplement amount is to be added to the person’s maximum basic rate.

Residents in Australia etc.

1065‑BA2 If the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks;

the person’s pension supplement amount is:

(d) otherwise—the amount worked out under point 1065‑BA3.

Residents in Australia etc.—no election in force

1065‑BA3 The person’s pension supplement amount is the amount worked out by:

(a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

(b) if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a multiple of $2.60;

rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Item	Person’s family situation	Use this %
1	Not member of couple	66.33%
2	Partnered	50%
3	Member of illness separated couple	66.33%
4	Member of respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For combined couple rate of pension supplement, see subsection 20A(1).

Residents in Australia etc.—election in force

1065‑BA4 The person’s pension supplement amount is the amount worked out as follows:

(a) work out the amount for the person under point 1065‑BA3 as if the election were not in force;

(b) from that amount, subtract the person’s minimum pension supplement amount.

Persons absent from Australia for more than 6 weeks

1065‑BA5 If the person is not covered by point 1065‑BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.

Module C—Energy supplement

1065‑C1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

Note: Section 918 may affect the addition of the energy supplement.

1065‑C2 However, this Module does not apply if quarterly energy supplement is payable to the person.

1065‑C3 The person’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Person’s family situation	Amount of energy supplement
1	Not a member of a couple	$366.60
2	Partnered	$275.60
3	Member of an illness separated couple	$366.60
4	Member of a respite care couple	$366.60
5	Partnered (partner in gaol)	$366.60

Module E—Remote area allowance

Remote area allowance

1065‑E1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

(aa) either:

(i) the person’s rate of pension apart from this point is greater than nil; or

(ii) apart from this point, the person’s rate of pension would be nil merely because an election by the person under subsection 1061VA(1) is in force; and

(a) the person’s usual place of residence is situated in the remote area; and

(b) the person is physically present in the remote area.

Note: For remote area and physically present in the remote area see section 14.

Rate of remote area allowance

1065‑E2 The rate of remote area allowance payable to a person is worked out using Table E. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each FTB child, and each regular care child, of the person.

Table E—Remote area allowance
Column 1 Item	Column 2 Person’s family situation	Column 3 Basic allowance per year	Column 4 Basic allowance per fortnight	Column 5 Additional allowance per year	Column 6 Additional allowance per fortnight
1.	Not member of couple	$473.20	$18.20	$189.80	$7.30
2.	Partnered	$405.60	$15.60	$189.80	$7.30
3.	Member of illness separated couple	$473.20	$18.20	$189.80	$7.30
4.	Member of respite care couple	$473.20	$18.20	$189.80	$7.30
5.	Partnered (partner in gaol)	$473.20	$18.20	$189.80	$7.30

Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Special rule where partner has an FTB or regular care child but is not receiving a pension

1065‑E4 If:

(a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

(b) the person’s partner is not receiving a pension or benefit; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child

1065‑E5 If:

(a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

(b) the person’s partner has an FTB child or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1065‑E6 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.

Part 3.4A—Pension Rate Calculator D

1066A Rate of disability support pension (people under 21 who are not blind)

(1) The rate of disability support pension of a person who has not turned 21 is, subject to subsection (2), to be calculated in accordance with the Rate Calculator at the end of this section.

Note: Module A of the Rate Calculator establishes the overall rate calculation process and the remaining Modules provide for the calculation of the component amounts used in the overall rate calculation.

(2) Subsection (1) does not apply if:

(a) the person is permanently blind; or

(b) the person has one or more dependent children.

Note 1: The rate for a disability support pension payable to a person under 21 who is permanently blind is dealt with in section 1066B.

Note 2: For dependent child see section 5.

Note 3: The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1064 or 1065.

(3) A person’s disability support pension rate is not to exceed the rate at which a disability support pension would be payable to that person if the person’s rate were calculated using Pension Rate Calculator A at the end of section 1064.

(5) If:

(a) a person has a relationship with another person, whether of the same sex or a different sex (other person); and

the person’s disability support pension rate is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.

Pension Rate Calculator D

Method of calculating rate

1066A‑A1 The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out the person’s maximum basic rate using MODULE B below.

Step 1A. Work out the energy supplement (if any) using Module BA below.

Step 2. Work out the amount per year for youth disability, Supplement using MODULE C below.

Step 3. Work out the amount per year (if any) of pharmaceutical allowance using MODULE D below.

Step 4. Work out the amount per year (if any) for rent assistance in accordance with paragraph 1070A(b).

Step 5. Add up the amounts obtained in Steps 1, 1A, 2, 3 and 4: the result is called the maximum payment rate.

Note: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.

Step 6. Apply the ordinary income test using MODULE F below to work out the income reduction.

Step 9. Take the income reduction away from the maximum payment rate: the result is called the income reduced rate.

Step 10. Apply the assets test using MODULE H below to work out the reduction for assets.

Step 11. Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.

Step 12. Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate.

Step 13. The rate of pension is the amount obtained by:

(a) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

Note 2: Section 1210 deals with the application of income and assets test reductions.

Note 3: The rate calculation for a member of a couple is affected by the operation of point 1066A‑A2.

Members of a couple

1066A‑A2 Where 2 people are members of a couple, they will be treated as pooling their resources (income and assets) and sharing them on a 50/50 basis (see points 1066A‑F2, and 1066A‑H2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see section 1070V).

Module BA—Energy supplement

Maximum basic rate

1066A‑B1 A person’s maximum basic rate is to be worked out using Table B. Work out the family situation. The maximum basic rate is the corresponding amount in column 3.

Table B—Maximum basic rates
Column 1 Item	Column 2 Person’s family situation	Column 3 Rate per year	Column 4 Rate per fortnight
1	Not a member of a couple and person: (a) is under 18 years of age; and (b) is not independent; and (c) is not living away from the person’s parental home because of a medical condition of the person	$7,883.20	$303.20
2	Not a member of a couple and person: (a) is under 18 years of age; and (b) either: (i) is independent; or (ii) is living away from the person’s parental home because of a medical condition of the person	$13,325	$512.50
3	Not a member of a couple and person: (a) has reached 18 years of age; and (b) is living at home of parent or parents; and (c) is not independent	$9,219.60	$354.60
4	Not a member of a couple and person: (a) has reached 18 years of age; and (b) either: (i) is not living at a home of parent or parents; or (ii) is living at a home of parent or parents, but is independent	$13,325	$512.50
5	Partnered	$13,325	$512.50
6	Member of illness separated couple, member of respite care couple or partnered (partner in gaol)	$13,325	$512.50

Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: For independent see section 5.

Note 3: For living away from the person’s parental home see subsection 23(4D).

Note 4: The rates in column 3 are adjusted annually in line with CPI changes (see section 1198B).

1066A‑BA1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the person.

Note: Section 918 may affect the addition of the energy supplement.

1066A‑BA2 The person’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Person’s family situation for maximum basic rate	Amount of energy supplement
1	If the person’s maximum basic rate is worked out under item 1 of the table in point 1066A‑B1	$153.40
2	If the person’s maximum basic rate is worked out under item 2, 4, 5 or 6 of the table in point 1066A‑B1	$236.60
3	If the person’s maximum basic rate is worked out under item 3 of the table in point 1066A‑B1	$171.60

Module C—Youth disability supplement

Youth disability supplement

1066A‑C1 An amount by way of youth disability supplement is to be added to a person’s rate. The rate of youth disability supplement is $1,557.40 per year ($59.90 per fortnight).

Note: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

Module D—Pharmaceutical allowance

Qualification for pharmaceutical allowance

1066A‑D1 Subject to points 1066A‑D2, 1066A‑D3,1066A‑D4 and 1066A‑D6, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.

No pharmaceutical allowance if person receiving certain supplements under other Acts

1066A‑D2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.

No pharmaceutical allowance if partner receiving certain supplements under other Acts

1066A‑D3 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

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

(b) the person’s partner is receiving:

(i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and

No pharmaceutical allowance before advance payment period ends

1066A‑D4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

(a) the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and

(b) the person’s advance payment period has not ended.

Note: For advance payment period see point 1066A‑D5.

Advance payment period

1066A‑D5 A person’s advance payment period:

(a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

(b) ends after the number of paydays worked out using the following formula have passed:

$Start formula start fraction amount of advance times 26 over pharmaceutical allowance rate end fraction end formula$

where:

amount of advance is the amount of the advance paid to the person.

pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.

No pharmaceutical allowance if annual limit reached

1066A‑D6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

(a) the person has received an advance pharmaceutical allowance during the current calendar year; and

(b) the total amount paid to the person for that year by way of:

(i) pharmaceutical allowance; and

(ii) advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2: The annual limit is affected by:

how long during the calendar year the person was on pension or benefit;
the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.

Amount of pharmaceutical allowance

1066A‑D8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table:

Pharmaceutical allowance amount table
Column 1 Item	Column 2 Person’s family situation	Column 3 Amount per year	Column 4 Amount per fortnight
1.	Not member of couple	$135.20	$5.20
2.	Partnered	$67.60	$2.60
3.	Member of illness separated couple	$135.20	$5.20
4.	Member of respite care couple	$135.20	$5.20
5.	Partnered (partner getting service pension)	$67.60	$2.60
6.	Partnered (partner in gaol)	$135.20	$5.20

Note 1: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).

Module F—Ordinary income test

Effect of income on maximum payment rate

1066A‑F1 This is how to work out the effect of a person’s ordinary income on the person’s maximum payment rate:

Method statement

Step 1. Work out the amount of the person’s ordinary income on a yearly basis.

Note 1: For the treatment of the ordinary income of members of a couple see point 1066A‑F2.

Note 2: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.

Step 2. Work out the person’s ordinary income free area (see point 1066A‑F3 below).

Note: A person’s ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person’s maximum payment.

Step 3. Work out whether the person’s ordinary income exceeds the person’s ordinary income free area.

Step 4. If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

Step 6. Use the person’s ordinary income excess to work out the person’s reduction for ordinary income using points 1066A‑F9 to 1066A‑F11 below.

Note 1: See point 1066A‑A1 (Steps 6 to 9) for the significance of the person’s reduction for ordinary income.

Note 2: The application of the ordinary income test is affected by provisions concerning:

the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);
business income (sections 1074 and 1075);
income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);
income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);
disposal of income (sections 1106 to 1111).

Ordinary incomes of members of couples

1066A‑F2 If a person is a member of a couple, add the couple’s ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s ordinary income for the purposes of this Module.

Payment of arrears of periodic compensation payments

1066A‑F2A If:

(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving disability support pension; and

(b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.

Note: For periodic payments period see section 17.

How to calculate a person’s ordinary income free area

1066A‑F3 A person’s ordinary income free area is worked out using Table F‑1. Work out which family situation in Table F‑1 applies to the person. The ordinary income free area is the corresponding amount in column 3.

Table F‑1—Ordinary income free area
Column 1 Item	Column 2 Category of person	Column 3 Basic free area per year	Column 4 Basic free area per fortnight
1.	Not member of a couple	$2,184	$80
2.	Partnered (partner getting neither pension nor benefit)	$1,924	$70
3.	Partnered—(partner getting benefit)	$1,924	$70
4.	Partnered—(partner getting pension)	$1,924	$70

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 3: Items 2, 3 and 4 of Table F‑1 apply to members of illness separated couples.

Note 4: The basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).

Pension reduction for ordinary income in excess of ordinary income free area

1066A‑F9 A person’s reduction for ordinary income is:

Ordinary income excess

1066A‑F10 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Module G—Payments taken to be ordinary income

Application of this Module

1066A‑G1 This Module applies to a person and, if the person is a member of a couple, the person’s partner.

Lump sum payments arising from termination of employment

1066A‑G2 Subject to points 1066A‑G4 to 1066A‑G14 (inclusive), if:

(a) a person’s employment has been terminated; and

(b) as a result the person is entitled to a lump sum payment from the person’s former employer;

the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.

Certain leave payments taken to be ordinary income—employment continuing

1066A‑G4 If:

(a) a person is employed; and

(b) the person is on leave for a period; and

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

Certain payments taken to be ordinary income—employment terminated

1066A‑G5 If:

(a) a person’s employment has been terminated; and

(b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.

More than one termination payment on a day

1066A‑G6 If:

(a) a person is covered by point 1066A‑G5; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing

1066A‑G7 If a person is covered by point 1066A‑G4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated

1066A‑G8 If a person is covered by point 1066A‑G5, the income maintenance period starts, subject to point 1066A‑G9, on the day on which the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

1066A‑G9 If:

(a) a person who is covered by point 1066A‑G5 is subject to an income maintenance period (the first period); and

(b) the person is paid another termination payment during that period (the second termination payment);

the income maintenance period for the second termination payment starts on the day after the end of the first period.

Leave payments or termination payments in respect of periods longer than a fortnight

1066A‑G10 If:

(a) a person receives a leave payment or termination payment; and

(b) the payment is in respect of a period longer than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.

1066A‑G11 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the pension claimed may not be payable to the person; or

(b) the amount of the pension payable to the person may be reduced.

When a person receives a leave payment or a termination payment

1066A‑G12 For the purposes of points 1066A‑G4 to 1066A‑G11 (inclusive), a person (the first person) is taken to receive a leave payment or termination payment if:

(a) the payment is made to another person:

(i) at the direction of the first person or a court; or

(ii) on behalf of the first person; or

(iii) for the benefit of the first person; or

(b) the first person waives or assigns his or her right to receive the payment.

Single payment in respect of different kinds of termination payments

1066A‑G13 If a person who is covered by point 1066A‑G5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1066A‑G4 to 1066A‑G12 (inclusive):

(a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and

(b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions

1066A‑G14 In this Module:

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include:

(a) an instalment of parental leave pay; or

(b) dad and partner pay.

payment fortnight means a fortnight in respect of which a disability support pension is paid, or would be paid apart from the application of an income maintenance period, to a person.

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

redundancy payment includes a payment in lieu of notice.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

Module H—Assets test

Effect of assets on maximum payment rate

1066A‑H1 This is how to work out the effect of a person’s assets on the person’s maximum payment rate:

Method statement

Step 1. Work out the value of the person’s assets.

Note 1: For the treatment of the assets of members of a couple see point 1066A‑H2.

Note 2: For the assets that are to be disregarded in valuing a person’s assets see section 1118.

Note 3: For the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Step 2. Work out the person’s assets value limit (see point 1066A‑H3 below).

Note: A person’s assets value limit is the maximum value of assets the person can have without affecting the person’s pension rate.

Step 3. Work out whether the value of the person’s assets exceeds the person’s assets value limit.

Step 4. If the value of the person’s assets does not exceed the person’s assets value limit, the person’s assets excess is nil.

Step 5. If the value of the person’s assets exceeds the person’s assets value limit, the person’s assets excess is the value of the person’s assets less the person’s assets value limit.

Step 6. Use the person’s assets excess to work out the person’s reduction for assets using points 1066A‑H4 to 1066A‑H7 below.

Note 1: See point 1066A‑A1 Steps 10 and 11 for the significance of the person’s reduction for assets.

Value of assets of members of couples

1066A‑H2 For the purposes of this Module:

(a) the value of the assets of a member of a couple is to be taken to be 50% of the sum of:

(i) the value of the person’s assets; and

(ii) the value of the person’s partner’s assets; and

(b) the value of the assets of a particular kind of a member of a couple is to be taken to be 50% of the sum of:

(i) the value of the person’s assets of that kind; and

(ii) the value of the person’s partner’s assets of that kind.

Assets value limit

1066A‑H3 A person’s assets value limit is worked out using Table H‑1. Work out the person’s family situation and home ownership situation. The assets value limit is the corresponding amount in column 3.

Table H‑1—Assets value limit
Column 1	Column 2	Column 3 Assets value limit
Item	Person’s family situation	Column 3A Either person or partner homeowner	Column 3B Neither person nor partner homeowner
1.	Not member of a couple	$250,000	$450,000
2.	Partnered (partner getting neither pension nor benefit)	$187,500	$287,500
3.	Partnered (partner getting pension or benefit)	$187,500	$287,500

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see section 4.

Note 2: For homeowner see section 11.

Note 3: Items 2 and 3 apply to members of illness separated couples.

Note 4: The assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).

Pension reduction for assets in excess of assets value limit

1066A‑H4 A person’s reduction for assets is worked out using Table H‑2. Work out which family situation applies to the person. The reduction for assets is the amount per year worked out using the corresponding calculation in column 3.

Table H‑2—Reduction for assets
Column 1 Item	Column 2 Person’s family situation	Column 3 Reduction
1.	Not member of couple	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$
2.	Partnered (partner getting neither pension nor benefit)	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$
3.	Partner (partner getting pension or benefit)	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 3: For assets excess see point 1066A‑H5 below.

Assets excess

1066A‑H5 A person’s assets excess is the value of the person’s assets less the person’s assets value limit.

1066A‑H7 In calculating a person’s assets excess under point 1066A‑H5 disregard any part of the excess that is not a multiple of $250.

Module I—Remote area allowance

Remote area allowance

1066A‑I1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

(aa) either:

(i) the person’s rate of pension apart from this point is greater than nil; or

(ii) apart from this point, the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; and

(a) the person’s usual place of residence is situated in the remote area; and

(b) the person is physically present in the remote area.

Note: For remote area and physically present in the remote area see section 14.

Rate of remote area allowance

1066A‑I2 The rate of remote area allowance payable to a person is worked out using Table I. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each FTB child, and each regular care child, of the person.

Table I—Remote area allowance
Column 1 Item	Column 2 Person’s family situation	Column 3 Basic allowance per year	Column 4 Basic allowance per fortnight	Column 5 Additional allowance per year	Column 6 Additional allowance per fortnight
1.	Not member of couple	$473.20	$18.20	$189.80	$7.30
2.	Partnered	$405.60	$15.60	$189.80	$7.30
3.	Member of illness separated couple	$473.20	$18.20	$189.80	$7.30
4.	Member of respite care couple	$473.20	$18.20	$189.80	$7.30
5.	Partnered (partner in gaol)	$473.20	$18.20	$189.80	$7.30

Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Special rule where partner has an FTB or regular care child but is not receiving a pension

1066A‑I4 If:

(a) a person who is a member of a couple is qualified for an amount by way of additional allowance; and

(b) the person’s partner is not receiving a pension or benefit; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child

1066A‑I5 If:

(a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

(b) the person’s partner has an FTB child or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1066A‑I6 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.

Part 3.4B—Pension Rate Calculator E

1066B Rate of disability support pension (people under 21 who are blind)

(1) The rate of disability support pension of a person who has not turned 21 and is permanently blind is to be calculated in accordance with the Rate Calculator at the end of this section.

(1A) Subsection (1) does not apply if the person has one or more dependent children.

Note 1: The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1065.

Note 2: For dependent child see section 5.

(2) A person’s disability support pension rate is not to exceed the rate at which a disability support pension would be payable to that person if the person’s rate were calculated using Pension Rate Calculator B at the end of section 1065.

(4) Where:

(a) a person who is permanently blind has a relationship with another person, whether of the same sex or a different sex (other person); and

the rate of disability support pension payable to the person who is permanently blind is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.

Pension Rate Calculator E

Method of calculating rate

1066B‑A1 The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out what would be the person’s rate of pension if Pension Rate Calculator D applied to the person: the result is called the notional income/assets tested rate.

Step 2. Work out the person’s maximum basic rate using MODULE B below.

Step 2A. Work out the energy supplement (if any) using Module BA below.

Step 3. Work out the amount per year for youth disability supplement using MODULE C below.

Step 4. Work out the amount per year (if any) of pharmaceutical allowance using MODULE D below.

Step 5. Add up the amounts obtained in Steps 2, 2A, 3 and 4: the result is called the maximum payment rate.

Step 6. Work out the non‑income/assets tested rate by:

(a) subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and

(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

Step 7. Compare the notional income/assets tested rate and the non‑income/assets tested rate: whichever is the greater is the person’s rate of pension.

Note: An amount of remote area allowance is to be added under Step 6 only if the person’s rate of pension after Step 5 is greater than nil.

Module BA—Energy supplement

Maximum basic rate

1066B‑B1 A person’s maximum basic rate is to be worked out using Table B. Work out the family situation. The maximum basic rate is the corresponding amount in column 3 of the Table.

Table B—Maximum basic rates
Column 1 Item	Column 2 Person’s family situation	Column 3 Rate per year	Column 4 Rate per fortnight
1	Not a member of a couple and person: (a) is under 18 years of age; and (b) is not independent; and (c) is not living away from the person’s parental home because of a medical condition of the person	$7,883.20	$303.20
2	Not a member of a couple and person: (a) is under 18 years of age; and (b) either: (i) is independent; or (ii) is living away from the person’s parental home because of a medical condition of the person	$13,325	$512.50
3	Not a member of a couple and person: (a) has reached 18 years of age; and (b) is living at home of parent or parents; and (c) is not independent	$9,219.60	$354.60
4	Not a member of a couple and person: (a) has reached 18 years of age; and (b) either: (i) is not living at a home of parent or parents; or (ii) is living at a home of parent or parents, but is independent	$13,325	$512.50
5	Partnered	$13,325	$512.50
6	Member of illness separated couple, member of respite care couple or partnered (partner in gaol)	$13,325	$512.50

Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: For independent see section 5.

Note 3: For living away from the person’s parental home see subsection 23(4D).

Note 4: The rates in column 3 are adjusted annually in line with CPI changes (see section 1198B).

1066B‑BA1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the person.

Note: Section 918 may affect the addition of the energy supplement.

1066B‑BA2 The person’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Person’s family situation for maximum basic rate	Amount of energy supplement
1	If the person’s maximum basic rate is worked out under item 1 of the table in point 1066B‑B1	$153.40
2	If the person’s maximum basic rate is worked out under item 2, 4, 5 or 6 of the table in point 1066B‑B1	$236.60
3	If the person’s maximum basic rate is worked out under item 3 of the table in point 1066B‑B1	$171.60

Module C—Youth disability supplement

Youth disability supplement

1066B‑C1 An amount by way of youth disability supplement is to be added to a person’s rate. The rate of youth disability supplement is $1,557.40 per year ($59.90 per fortnight).

Note: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

Module D—Pharmaceutical allowance

Qualification for pharmaceutical allowance

1066B‑D1 Subject to points 1066B‑D2, 1066B‑D3, 1066B‑D4 and 1066B‑D6, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.

No pharmaceutical allowance if person receiving certain supplements under other Acts

1066B‑D2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.

No pharmaceutical allowance if partner receiving certain supplements under other Acts

1066B‑D3 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

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

(b) the person’s partner is receiving:

(i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and

No pharmaceutical allowance before advance payment period ends

1066B‑D4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

(a) the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and

(b) the person’s advance payment period has not ended.

Note: For advance payment period see point 1066B‑D5.

Advance payment period

1066B‑D5 A person’s advance payment period:

(a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

(b) ends after the number of paydays worked out using the following formula have passed:

$Start formula start fraction amount of advance times 26 over pharmaceutical allowance rate end fraction end formula$

where:

amount of advance is the amount of the advance paid to the person.

No pharmaceutical allowance if annual limit reached

1066B‑D6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

(a) the person has received an advance pharmaceutical allowance during the current calendar year; and

(b) the total amount paid to the person for that year by way of:

(i) pharmaceutical allowance; and

(ii) advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2: The annual limit is affected by:

how long during the calendar year the person was on pension or benefit;
the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.

Amount of pharmaceutical allowance

1066B‑D8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table:

Pharmaceutical allowance amount table
Column 1 Item	Column 2 Person’s family situation	Column 3 Amount per year	Column 4 Amount per fortnight
1.	Not member of couple	$135.20	$5.20
2.	Partnered	$67.60	$2.60
3.	Member of illness separated couple	$135.20	$5.20
4.	Member of respite care couple	$135.20	$5.20
5.	Partnered (partner getting service pension)	$67.60	$2.60
6.	Partnered (partner in gaol)	$135.20	$5.20

Note 1: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).

Module F—Remote area allowance

Remote area allowance

1066B‑F1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

(aa) either:

(i) the person’s rate of pension apart from this point is greater than nil; or

(ii) apart from this point, the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; and

(a) the person’s usual place of residence is situated in the remote area; and

(b) the person is physically present in the remote area.

Note: For remote area and physically present in the remote area see section 14.

Rate of remote area allowance

1066B‑F2 The rate of remote area allowance payable to a person is worked out using Table F. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each FTB child, and each regular care child, of the person.

Table F—Remote area allowance
Column 1 Item	Column 2 Person’s family situation	Column 3 Basic allowance per year	Column 4 Basic allowance per fortnight	Column 5 Additional allowance per year	Column 6 Additional allowance per fortnight
1.	Not member of couple	$473.20	$18.20	$189.80	$7.30
2.	Partnered	$405.60	$15.60	$189.80	$7.30
3.	Member of illness separated couple	$473.20	$18.20	$189.80	$7.30
4.	Member of respite care couple	$473.20	$18.20	$189.80	$7.30
5.	Partnered (partner in gaol)	$473.20	$18.20	$189.80	$7.30

Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Special rule where partner has an FTB or regular care child but is not receiving a pension

1066B‑F4 If:

(a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

(b) the person’s partner is not receiving a pension or benefit; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child

1066B‑F5 If:

(a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

(b) the person’s partner has an FTB child or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1066B‑F6 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.

Part 3.5—Youth Allowance Rate Calculator

1067 Definitions

General definitions

(1) In this Part:

accommodated independent person has the meaning given by section 1067B.

independent has the meaning given by section 1067A.

Note: This definition also applies in Parts 2.11, 2.11B, 3.4A, 3.4B and 3.7.

in State care has the meaning given by subsection 1067A(8).

in supported State care, in relation to a person, means being a person in State care in respect of whom both of the following apply:

(a) the person qualifies for payments under a law of, or a non‑statutory scheme administered by, a State or Territory for the making of any payments by, or by the authority of, the State or Territory to or in respect of the person for his or her upkeep;

(b) such payments are being made.

in unsupported State care, in relation to a person, means being a person in State care in respect of whom either of the following applies:

(a) the person does not qualify for payments under a law of, or a non‑statutory scheme administered by, a State or Territory for the making of any payments by, or by the authority of, the State or Territory to or in respect of the person for his or her upkeep;

(b) the person qualifies, but such payments are not being made.

living at home has the meaning given by section 1067E.

long term income support student has the meaning given by section 1067F.

member of a YA couple, in sections 1067A and 1067B, has the meaning given by section 1067C.

premises or lodgings means accommodation of any kind for which rent (within the meaning of subsection 13(2)) is payable.

required to live away from home has the meaning given by section 1067D.

1067A When a person is regarded as independent

Application

(1) This section applies to determine whether a person is to be regarded as independent for the purposes of this Part and Parts 2.11, 2.11B, 3.4A, 3.4B and 3.7. A person is not to be regarded as independent except as provided by this section.

Member of a YA couple

(2) A person is independent if the person is, or has been, a member of a YA couple (see section 1067C).

Person with a dependent child

(3) A person is independent if:

(a) the person has a natural child, adoptive child or relationship child who is wholly or substantially dependent on the person or his or her partner; or

(b) the person previously had a natural child, adoptive child or relationship child who was wholly or substantially dependent on the person or on a person who, at the time, was the person’s partner.

Person at least a certain age

(4) For the purposes of Parts 2.11 and 2.11B, this Part and section 1070G, a person is independent at a time in a period specified in an item of the table if at the time the person is at least the age specified in the item:

Age when person becomes independent
Item	Period	Age
1	The period starting at the start of 1 April 2010 and ending at the end of 31 December 2010	24 years
2	The year 2011	23 years
3	A year after 2011	22 years

(4A) For the purposes of Parts 3.4A, 3.4B and 3.7, except section 1070G, a person is independent if the person is at least 25 years old.

Orphan

(5) A person is independent if both of the person’s parents are dead, whether or not the person is dependent, or was last dependent, on someone other than his or her parents.

If parents cannot exercise responsibilities

(6) A person is independent if both of the person’s parents are (or, if the person has only one parent, that parent is):

(a) serving a prison sentence; or

(b) mentally incapacitated and likely to remain so incapacitated for an indefinite period; or

(d) missing;

whether or not the person is dependent, or was last dependent, on someone other than a parent of the person.

Refugee

(7) A person is independent if the person:

(a) is the holder, within the meaning of the Migration (1993) Regulations, of a Group 1.3 entry permit (permanent resident) (refugee and humanitarian); or

(b) while the holder of such a permit, was granted Australian citizenship.

However, a person is not independent under this subsection if the person has a parent living in Australia, or is wholly or substantially dependent on someone else on a long‑term basis.

Person in State care

(8) A person is independent if the person is not living with a parent, and:

(a) the person is in the guardianship, care or custody of a court, a Minister, or a Department, of the Commonwealth, a State or a Territory; or

(b) there is a current direction from such a court, Minister or Department placing the person in the guardianship, care or custody of someone who is not the person’s parent; or

A person to whom this subsection applies is taken, for the purposes of this Part to be in State care.

Unreasonable to live at home

(9) A person is independent if:

(a) the person cannot live at the home of either or both of his or her parents:

(i) because of extreme family breakdown or other similar exceptional circumstances; or

(iii) because the parent or parents are unable to provide the person with a suitable home owing to a lack of stable accommodation; and

(c) the person is not receiving, on a continuous basis, any payments in the nature of income support (other than a social security benefit) from the Commonwealth, a State or a Territory.

People who are self‑supporting

(10) A person is independent if the person has supported himself or herself through paid work consisting of:

(a) full‑time employment of on average 30 hours per week for at least 18 months during any period of 2 years; or

(b) part‑time employment of at least 15 hours per week for at least 2 years since the person last left secondary school; or

(c) for the purposes of Parts 3.4A, 3.4B and 3.7, except section 1070G—a period or periods of employment over an 18 month period since the person last left secondary school, earning the person at least the equivalent of 75% of:

(i) the maximum rate of pay under Wage Level A of a transitional Australian Pay and Classification Scale or modern award generally applicable to trainees; or

(ii) that maximum rate as varied or replaced from time to time by the Fair Work Commission;

that applied at the start of the period of employment; or

(d) for the purposes of Parts 2.11 and 2.11B, this Part and section 1070G—a period or periods of employment over a 14 month period since the person last left secondary school, earning the person at least the equivalent of 75% of:

(i) the maximum rate of pay under Wage Level A of a transitional Australian Pay and Classification Scale or modern award generally applicable to trainees; or

(ii) that maximum rate as varied or replaced from time to time by the Fair Work Commission;

that applied at the start of the period of employment.

(10A) For the purposes of determining whether a person is to be regarded as independent for the purposes of Part 2.11 or 2.11B, this Part or section 1070G:

(a) paragraph (10)(b) does not apply unless subsection (10E) applies to the person because of paragraph (10E)(d); and

(b) paragraph (10)(d) does not apply unless subsection (10E) applies to the person because of paragraph (10E)(e).

(10E) This subsection applies to a person if:

(a) the person’s family home is:

(i) in a location categorised under the Remoteness Structure as Inner Regional Australia, Outer Regional Australia, Remote Australia or Very Remote Australia; or

(ii) on Norfolk Island; and

(b) the person is required to live away from home (see section 1067D); and

(d) in relation to paragraph (10)(b)—the person’s combined parental income (as defined in point 1067G‑F10) for:

(i) the last tax year that ended before the start of the 2 years referred to in that paragraph; or

(ii) the appropriate tax year worked out under Submodule 3 of Module F of the Youth Allowance Rate Calculator in section 1067G;

is less than the threshold amount (see subsection (10K)) for the person for that tax year; and

(e) in relation to paragraph (10)(d)—the person’s combined parental income (as defined in point 1067G‑F10) for:

(i) the last tax year that ended before the start of the 14‑month period referred to in that paragraph; or

(ii) the appropriate tax year worked out under Submodule 3 of Module F of the Youth Allowance Rate Calculator in section 1067G;

is less than the threshold amount (see subsection (10K)) for the person for that tax year.

(10F) For the purposes of paragraph (10E)(a), Remoteness Structure means the Remoteness Structure described in:

(a) the document titled “Australian Statistical Geography Standard (ASGS): Volume 5 ‑ Remoteness Structure, July 2011”, published by the Australian Statistician and as amended from time to time; or

(b) any replacement document that is published by the Australian Statistician and that is in effect in accordance with subsection (10G); or

(c) any document that is determined by the Secretary in an instrument under subsection (10H) and that is in effect in accordance with subsection (10J).

(10G) If a replacement document mentioned in paragraph (10F)(b) is published by the Australian Statistician:

(a) the replacement document takes effect on the first 1 January or 1 July to occur after the day of that publication and then has effect as amended from time to time; and

(b) the document in effect immediately before that publication is taken to continue to have effect until the end of the day before that 1 January or 1 July.

(10H) The Secretary may, by notifiable instrument, determine a document for the purposes of paragraph (10F)(c). The Secretary may do so only if the Australian Statistician has notified the Secretary that the Australian Statistician will no longer be publishing replacement documents mentioned in paragraph (10F)(b).

(10J) A document determined in an instrument under subsection (10H) takes effect on the day specified in the determination and then has effect as amended from time to time.

(10K) For the purposes of paragraphs (10E)(d) and (e) and (14)(d), the threshold amount for the person (the primary person) for a tax year is the sum of the following:

(a) $160,000;

(b) $10,000 for each person who is a related person (see subsection (10L)) of the primary person on:

(i) subject to subparagraph (ii)—30 June of that tax year; or

(ii) if that tax year is the tax year following the base tax year because of point 1067G‑F7 or 1067G‑F8—the day the request was made.

(10L) For the purposes of paragraph (10K)(b), a person (the first person) is a related person of the primary person on a day if on that day:

(a) the first person is aged under 22; and

(b) a parent of the first person is also a parent of the primary person; and

(i) the first person is living away from the home of each parent covered by paragraph (b) and the first person is a member of a YA couple under subsection 1067C(1);

(ii) the first person is living away from the home of each parent covered by paragraph (b) and the first person has a natural child, adoptive child or relationship child who is wholly or substantially dependent on the first person or the first person’s partner (if any);

(iii) the first person is receiving youth allowance or disability support pension and the first person is independent under subsection (9);

(iv) the first person is in State care.

Note: For parent, see paragraph (b) of the definition of parent in subsection 5(1).

(10M) For the purposes of the application of paragraph (10)(a), (b) or (d) in relation to a person:

(a) if, for a week that falls wholly in the 2‑year period referred to in paragraph (10)(a) and wholly in the COVID‑19 concession period, the person was not in paid work consisting of full‑time employment of at least 30 hours—the person is taken, for that week, to have been in paid work consisting of full‑time employment of 30 hours; and

(b) if, for a week that falls wholly in the 2‑year period referred to in paragraph (10)(b) and wholly in the COVID‑19 concession period, the person was not in paid work consisting of part‑time employment of at least 15 hours—the person is taken, for that week, to have been in paid work consisting of part‑time employment of 15 hours; and

(c) if, for a week that falls wholly in the 14‑month period referred to in paragraph (10)(d) and wholly in the COVID‑19 concession period, the person was not in paid work consisting of employment that earnt the person at least the equivalent of 75% of the maximum rate applicable under that paragraph on 25 March 2020—the person is taken, for that week, to have been in paid work consisting of employment that earnt the person 75% of that maximum rate.

(10N) For the purposes of subsection (10M), the COVID‑19 concession period is the period:

(a) beginning on 25 March 2020; and

(b) ending at the end of 24 September 2020.

People who are disadvantaged

(11) A person is independent if the person:

(a) is at least 18 years old; and

(b) has had full‑time employment of at least 30 hours per week for a period of at least 12 months, or for periods that total at least 12 months; and

(d) in the Secretary’s opinion, is specially disadvantaged with respect to education or employment; and

(e) is not receiving financial support, whether directly or indirectly, from a parent of the person or from another person who is acting as the person’s guardian on a long‑term basis.

Note: For parent see section 5 (paragraph (a) of that definition).

People with a partial capacity to work

(12) A person is independent if the person:

(a) has turned 16; and

(b) has a partial capacity to work; and

Note 1: For partial capacity to work see section 16B.

Note 2: For undertaking full‑time study see section 541B.

Note 3: For new apprentice see subsection 23(1).

Parents of relationship children

(13) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of subsections (5), (6), (7), (8), (9) and (11).

Agricultural work

(14) A person is independent if:

(a) subparagraph 540(1)(a)(i) (about full time study) applies in relation to the person; and

(b) the person undertook qualifying agricultural work between 30 November 2020 and 31 December 2021; and

(d) the person’s combined parental income (as defined in point 1067G‑F10) for the 2019‑2020 tax year or 2018‑2019 tax year is less than the threshold amount (see subsection (10K)) for the person for that tax year.

(15) For the purposes of this section, qualifying agricultural work is work of a kind determined in an instrument under subsection (16).

(16) The Secretary of the Department administered by the Minister administering the Social Security (International Agreements) Act 1999 may, by legislative instrument, determine kinds of work for the purposes of subsection (15).

1067B Accommodated independent person

(1) A person is taken to be an accommodated independent person for the purposes of Part 2.11B and this Part if, and only if, the person:

(a) is independent; and

(b) lives at the home of either or both of his or her parents; and

(d) does not have a natural child, adoptive child or relationship child who is wholly or substantially dependent on the person or his or her partner; and

(e) has never had a natural child, adoptive child or relationship child who was wholly or substantially dependent on the person or on a person who, at the time, was the person’s partner; and

(f) is not a person who:

(i) qualified for the independent living allowance under the AUSTUDY scheme, as in force immediately before the commencement of Schedule 11 to the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998, only under AUSTUDY Regulation 68, as in force at that time; and

(ii) had not, at that time, turned 25.

Note: For parent see section 5 (paragraph (a) of that definition).

(2) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of paragraph (1)(b).

1067C Member of a YA couple

Current member of a YA couple

(1) Subject to this section, a person is a member of a YA couple for the purposes of sections 1067A and 1067B if:

(a) the person is legally married to another person and is not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis; or

(aa) both of the following conditions are met:

(i) a relationship between the person and another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section;

(ii) the person is not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis; or

(b) all of the following conditions are met:

(i) the person has a relationship with another person, whether of the same sex or a different sex (partner);

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

(iii) the relationship has existed for a continuous period of at least 12 months;

(iv) in the Secretary’s opinion (formed as mentioned in subsections (3) and (4)), the relationship is, and has for a continuous period of at least 12 months been, a de facto relationship;

(v) if, at the time the relationship became a de facto relationship, the person and the partner were living in Australia—both the person and the partner were over the age of consent applicable in the State or Territory in which they lived at that time;

(vi) if, at the time the relationship became a de facto relationship, the person and the partner were living outside Australia—both the person and the partner were over the age of consent applicable in the State or Territory in which they first lived after that time;

(vii) the person and the partner are not within a prohibited relationship.

Former member of a YA couple

(2) Subject to this section, a person has been a member of a YA couple for the purposes of sections 1067A and 1067B if:

(a) the person has been legally married to another person (whether or not they are still legally married) and was not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person, on a permanent or indefinite basis, at all times while so married; or

(aa) both of the following conditions are met:

(i) a relationship between the person and another person (whether of the same sex or a different sex) was registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section (whether or not the relationship is still registered);

(ii) the person was not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis at all times while the relationship was registered; or

(b) all of the following conditions are met:

(i) the person had a relationship with another person, whether of the same sex or a different sex (partner);

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

(iii) the relationship existed for a continuous period of at least 12 months;

(iv) in the Secretary’s opinion (formed as mentioned in subsections (3) and (4)), the relationship between the person and the partner was, and had for a continuous period of at least 12 months or, in special circumstances determined by the Secretary, at least 6 months been, a de facto relationship;

(vii) the person and the partner were not within a prohibited relationship.

Criteria for forming opinion about relationship

(3) In forming an opinion about the relationship between 2 people for the purposes of paragraph (1)(a), subparagraph (1)(aa)(ii), subparagraph (1)(b)(iv), paragraph (2)(a), subparagraph (2)(aa)(ii) or subparagraph (2)(b)(iv), the Secretary is to have regard to all the circumstances of the relationship including, in particular, the matters referred to in subsection 4(3).

People living separately and apart

(4) The Secretary must not form the opinion that the relationship between a person and his or her partner is, or was, a de facto relationship if the person is, or was at the time in question, living separately and apart from the partner on a permanent or indefinite basis.

Moving to a State or Territory with a higher age of consent

(5) For the purposes of calculating the period of 2 years referred to in subparagraphs (1)(b)(iii) and (iv) and (2)(b)(iii) and (iv), any period during which the couple in question lived in a State or Territory in which one or both of them was under the age of consent is to be disregarded.

1067D Person required to live away from home

When a person is taken to be required to live away from home

(1) A person is taken to be required to live away from home for the purposes of Part 2.11B and this Part if, and only if:

(a) the person is not independent; and

(b) the person does not live at the home of either or both his or her parents; and

(i) the person needs to live away from home for the purpose of education, training, searching for employment or doing anything else in preparation for getting employment; or

(ii) the likelihood of the person’s getting employment will be significantly increased if the person lives away from home; or

(iii) the person needs to live away from home because the person is a new apprentice.

Note: For parent see section 5 (paragraph (a) of that definition).

Matters to which Secretary is to have regard

(3) In making a determination under subparagraph (1)(c)(ii), the Secretary is to have regard to:

(a) the overall employment prospects for young people in the areas where the home is situated and in the area where the person is living; and

(b) matters relating to the person that would affect the likelihood of the person’s getting employment in those areas.

Parents of relationship children

(4) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of paragraph (1)(b).

1067E Person living at home

If a person:

(a) is not independent; and

(b) is not taken by section 1067D to be required to live away from home;

the person is taken for the purposes of this Part to be living at home.

1067F Long term income support student

(1) A person is a long term income support student if the person:

(a) is at least 22 years old; and

(ba) does not have a dependent child; and

(i) undertaking full‑time study in respect of a course of education that the person had commenced after turning 22; or

(ii) a new apprentice and became a new apprentice after turning 22; and

(d) has, for at least 26 weeks out of the period of 39 weeks that ended when the person commenced to undertake the full‑time study or became a new apprentice, been receiving one or more of the following:

(i) jobseeker payment;

(iii) youth allowance (disregarding youth allowance received while the person was undertaking full‑time study);

(iv) special benefit;

(v) disability support pension;

(vii) carer payment;

(x) pension PP (single);

(xi) sole parent pension;

(xii) benefit parenting allowance;

(xiii) benefit PP (partnered).

(2) A person is also a long term income support student if the person:

(a) is at least 22 years old; and

(d) is undertaking a course in English, being a course that the Secretary has approved.

1067G Rate of youth allowance

Youth allowance rate calculator

(1) The rate of youth allowance of a person referred to in section 556 is to be calculated in accordance with the Rate Calculator in this section.

Limit on rate of allowance

(2) If:

(a) a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person (whether the persons are the same sex or different sexes); and

the rate of the person’s youth allowance is not to be more than the rate at which the allowance would be payable to the person if the other person were the person’s partner.

Youth Allowance Rate Calculator

Method of calculating rate

1067G‑A1 The rate of allowance is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

Method statement

Step 1. Work out the person’s maximum basic rate using Module B below.

Step 1A. Work out the energy supplement (if any) using Module BA below.

Step 2. Work out the amount a fortnight (if any) of pharmaceutical allowance using Module C below.

Step 2A. Work out the amount per fortnight (if any) for youth disability supplement using Module D below.

Step 3. Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).

Step 4. Add up the amounts obtained in Steps 1 to 3: the result is the maximum payment rate.

Step 8. If the person is not independent, work out the person’s reduction for parental income using Module E.

Step 12. Apply the income test using Module H below to work out the person’s income reduction.

Step 13. Take away from the maximum payment rate the greatest of the following that apply:

(a) the person’s reduction for parental income;

(If a reduction described in paragraph (a) applies, and is not less than any other reduction that applies, take away from the maximum payment rate the first‑mentioned reduction.) The result is the provisional fortnightly payment rate. If that rate is nil because of the taking away of a reduction described in paragraph (a) then youth allowance is not payable to the person.

Note: If a person’s maximum payment rate is reduced under this step, section 1210 sets the order in which the components of that rate are to be reduced.

Step 14. The rate of allowance is the amount obtained by:

(a) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and

(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

Module BA—Energy supplement

Maximum basic rate

1067G‑B1 The maximum basic rate of a person is to be worked out as follows:

(a) if the person is not independent (see section 1067A) and is not a long term income support student (see section 1067F)—use Table BA;

(b) if the person is independent and is not a long term income support student—use Table BB or point 1067G‑B3A;

Person who is not independent

1067G‑B2 If the person is not independent (see section 1067A) and is not a long term income support student (see section 1067F), work out whether the person:

(a) lives at home (see section 1067E); or

(b) is required to live away from home (see section 1067D).

The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.

Table BA—Maximum basic rates (people who are not independent)
Column 1 Item	Column 2 Person’s situation	Column 3 Rate
1	Lives at home and not yet 18 years old	$303.20
2	Lives at home and at least 18 years old	$354.60
3	Required to live away from home	$512.50

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191–1194).

Person who is independent

1067G‑B3 If the person is independent (see section 1067A) and is not a long term income support student (see section 1067F), work out:

(a) whether the person is an accommodated independent person (see section 1067B); and

(b) if the person is not an accommodated independent person, whether the person:

(i) is in supported State care (see section 1067); or

(ii) is in unsupported State care (see section 1067); or

(iii) is a member of a couple (see section 4); or

(iv) has a dependent child (see subsections 5(2) to (9)).

The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.

Table BB—Maximum basic rates (people who are independent)
Column 1 Item	Column 2 Person’s situation	Column 3 Rate
1	Accommodated independent person and not yet 18 years old	$303.20
2	Accommodated independent person and at least 18 years old	$354.60
3	In supported State care and not yet 18 years old	$303.20
4	In supported State care and at least 18 years old	$354.60
5	In unsupported State care	$512.50
6	Not a member of a couple and has a dependent child	$656
7	Member of a couple and has a dependent child	$557.90
8	Not an accommodated independent person, not in supported State care, not in unsupported State care and does not have a dependent child	$512.50

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191–1194).

Certain children treated as dependent children if in recipient’s care for at least minimum period

1067G‑B3AA For the purposes of point 1067G‑B3, the maximum basic rate for a person receiving youth allowance is worked out as if the person had a dependent child if:

(a) the person is not undertaking full‑time study and is not a new apprentice; and

(b) either:

(i) the person is legally responsible (whether alone or jointly with another person) for the day‑to‑day care, welfare and development of a child under 16; or

(ii) under a family law order, registered parenting plan or parenting plan that is in force, a child under 16 is supposed to live or spend time with the person; and

(i) the instalment period in relation to which the maximum basic rate is being worked out; or

(ii) if the Secretary, under point 1067G‑B3AB, determines another period for the person for the purposes of this subparagraph—that other period; and

(d) none of subsections 5(3), (6) and (7) prevents the child from being a dependent child of the person.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice, family law order, registered parenting plan and parenting plan see subsection 23(1).

1067G‑B3AB The Secretary may, in writing, determine a period of either 14 days or 28 days for the purposes of subparagraph 1067G‑B3AA(c)(ii). In making the determination, the Secretary must have regard to the guidelines (if any) determined under point 1067G‑B3AD.

1067G‑B3AC A determination made under point 1067G‑B3AB is not a legislative instrument.

1067G‑B3AD The Secretary may, by legislative instrument, determine guidelines to be complied with when making a determination under point 1067G‑B3AB.

1067G‑B3A Despite point 1067G‑B3, if a person:

(a) is independent (see section 1067A) and is not a long term income support student (see section 1067F); and

(b) is not a member of a couple; and

(i) has an exemption under section 542FA because of a determination in relation to the person under subsection 542FA(3) or (3A); or

(ii) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under subsection 40P(2) of the Administration Act because of paragraph 40P(2)(a) or (b) of that Act;

the person’s maximum basic rate is the amount worked out as follows:

$Start formula start fraction Pension PP (Single) maximum basic amount over 26 end fraction end formula$

where:

pension PP (Single) maximum basic amount is the sum of:

(a) the amount that would have been the person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment; and

(b) the amount that would have been the person’s pension supplement under Module BA of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment.

Note: A person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator is indexed 6 monthly in line with increases in Male Total Average Weekly Earnings (see section 1195).

Long term income support student

1067G‑B4 If the person is a long term income support student (see section 1067F), work out:

(a) whether the person is independent (see section 1067A); and

(b) if the person is not independent, whether the person:

(i) lives at home (see section 1067E); or

(ii) is required to live away from home (see section 1067D); and

(d) whether the person is a member of a couple (see section 4).

The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.

Table BC—Maximum basic rates (long term income support students)
Column 1 Item	Column 2 Person’s situation	Column 3 Rate
1	Not independent, lives at home and not a member of a couple	$423.70
2	Not independent, required to live away from home and not a member of a couple	$611.90
3	Accommodated independent person and not a member of a couple	$423.70
4	Independent, not an accommodated independent person and not a member of a couple	$611.90
5	Member of a couple	$557.90

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191 to 1194).

1067G‑BA1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.

General case—recipient not covered by point 1067G‑B3A and youth disability supplement not added

1067G‑BA2 The recipient’s energy supplement is the amount worked out using the following table if:

(a) the recipient is not covered by point 1067G‑B3A; and

(b) an amount of youth disability supplement is not added under Module D to the recipient’s rate.

Energy supplement
Item	Recipient’s family situation for maximum basic rate	Amount of energy supplement
1	If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1067G‑B2	$3.90
2	If the recipient’s maximum basic rate is worked out under item 2 of the table in point 1067G‑B2	$4.60
3	If the recipient’s maximum basic rate is worked out under item 3 of the table in point 1067G‑B2	$7.00
4	If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G‑B3	$3.90
5	If the recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G‑B3	$4.60
6	If the recipient’s maximum basic rate is worked out under item 5 of the table in point 1067G‑B3	$7.00
7	If the recipient’s maximum basic rate is worked out under item 6 of the table in point 1067G‑B3	$9.20
8	If the recipient’s maximum basic rate is worked out under item 7 of the table in point 1067G‑B3	$7.70
9	If the recipient’s maximum basic rate is worked out under item 8 of the table in point 1067G‑B3	$7.00
10	If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G‑B4	$5.70
11	If the recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G‑B4	$8.60
12	If the recipient’s maximum basic rate is worked out under item 5 of the table in point 1067G‑B4	$7.70

Recipient covered by point 1067G‑B3A

1067G‑BA3 If the recipient is covered by point 1067G‑B3A, the recipient’s energy supplement is $12.00.

Youth disability supplement added to the recipient’s rate

1067G‑BA4 If an amount of youth disability supplement is added under Module D to the recipient’s rate, the recipient’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Recipient’s family situation for maximum basic rate	Amount of energy supplement
1	If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1067G‑B2	$5.90
2	If the recipient’s maximum basic rate is worked out under item 2 of the table in point 1067G‑B2	$6.60
3	If the recipient’s maximum basic rate is worked out under item 3 of the table in point 1067G‑B2	$8.50
4	If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G‑B3	$5.90
5	If the recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G‑B3	$6.60
6	If the recipient is a member of a couple and the recipient’s maximum basic rate is worked out under item 5 or 8 of the table in point 1067G‑B3	$7.70
6A	If the recipient is not a member of a couple and the recipient’s maximum basic rate is worked out under item 5 or 8 of the table in point 1067G‑B3	$8.50
7	If the recipient’s maximum basic rate is worked out under item 6 of the table in point 1067G‑B3	$9.20
8	If the recipient’s maximum basic rate is worked out under item 7 of the table in point 1067G‑B3	$7.70

Module C—Pharmaceutical allowance

Qualification for pharmaceutical allowance

1067G‑C1 Subject to points 1067G‑C2 and 1067G‑C2A, an amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person:

(a) has a partial capacity to work; or

(b) is the principal carer of at least one child and is not a member of a couple; or

(i) has a temporary incapacity exemption under section 542A; or

(ii) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act.

Note 1: For partial capacity to work see section 16B.

Note 2: For principal carer see subsections 5(15) to (24).

No pharmaceutical allowance if partner receiving certain supplements under other Acts

1067G‑C2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

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

(b) the person’s partner is receiving:

(i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and

No pharmaceutical allowance for full‑time students and new apprentices without temporary incapacity exemptions

1067G‑C2A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person:

(a) does not have a temporary incapacity exemption under section 542A; and

(b) is undertaking full‑time study or is a new apprentice.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

Amount of pharmaceutical allowance

1067G‑C3 The amount of pharmaceutical allowance is the amount a fortnight worked out using the following table:

Table C—Pharmaceutical allowance amounts
Column 1 Item	Column 2 Person’s family situation	Column 3 Amount a fortnight
1	Not a member of a couple	$5.40
2	Partnered	$2.70
3	Member of an illness separated couple	$5.40
4	Member of a respite care couple	$5.40
5	Partnered (partner getting service pension)	$2.70
6	Partnered (partner in gaol)	$5.40

Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: The amounts in column 3 are indexed or adjusted annually in line with CPI increases on 1 January (see sections 1191 to 1194 and 1206A).

Module D—Youth disability supplement

Youth disability supplement

1067G‑D1 If a person:

(a) has a partial capacity to work; and

(b) has not turned 22;

an amount by way of youth disability supplement is to be added to a person’s rate. The rate of youth disability supplement is $92.40 per fortnight.

Note 1: For partial capacity to work see section 16B.

Note 2: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

1067G‑D2 If:

(a) an amount by way of youth disability supplement is to be added to a person’s rate of youth allowance under point 1067G‑D1; and

(b) the sum of:

(i) the person’s maximum basic rate of youth allowance; and

(ii) the amount of youth disability supplement;

would exceed the maximum basic rate of jobseeker payment for a person with a partial capacity to work;

the rate of youth disability supplement is to be reduced (but not below zero) by the amount of the excess.

Note: For partial capacity to work, see section 16B.

Module E—Person’s reduction for parental income

Person’s reduction for parental income

1067G‑E1 This is how to work out the person’s reduction for parental income for the purposes of the method statement in point 1067G‑A1.

Method statement

Step 1. Work out the MIT reducible amount by subtracting the base FTB child rate in point 1067G‑E2 from the maximum FTB child rate in point 1067G‑E3 and then multiplying the result by:

$Start formula start fraction 14 over 365 end fraction end formula$

Step 2. Apply the parental income test in Module F to work out the parental income test result for the person.

Step 3. If the parental income test result is equal to or more than the MIT reducible amount, the person’s reduction for parental income is the parental income test result.

Step 4. If the parental income test result is less than the person’s MIT reducible amount, apply the maintenance income test in Module GA to work out the maintenance income test result for the person.

Step 5. Add the parental income test result to the maintenance income test result to get the person’s notional reduction.

Step 6. If the notional reduction is less than or equal to the MIT reducible amount, the person’s reduction for parental income is the notional reduction.

Step 7. If the notional reduction is more than the MIT reducible amount, the person’s reduction for parental income is the MIT reducible amount.

Base FTB child rate

1067G‑E2 The base FTB child rate is the amount that would be the base FTB child rate within the meaning of the Family Assistance Act, if the person were an FTB child of a parent of the person.

Maximum FTB child rate

1067G‑E3 The maximum FTB child rate is the amount specified for item 2 in column 2 of the table in clause 7 of Schedule 1 to the Family Assistance Act.

Note: The amount is indexed under Schedule 4 of the Family Assistance Act.

Module F—Parental income test

Submodule 1—Parental income test result

Parental income test result

1067G‑F1 This is how to work out the parental income test result for a person for the purposes of the method statement in point 1067G‑E1.

Method statement

Step 1. Work out whether the person is exempt from the parental income test using Submodule 2. If the person is exempt, go to step 5.

Step 2. If the person is not exempt, identify the appropriate tax year using Submodule 3.

Step 3. Work out the person’s combined parental income for the appropriate tax year using Submodule 4.

Step 4. Work out the person’s parental income free area using Submodule 5.

Step 5. If:

(a) the person’s combined parental income does not exceed the person’s parental income free area; or

(b) the person is exempt from the parental income test;

then the parental income test result for the person is nil.

Step 6. If the person’s combined parental income exceeds the person’s parental income free area, then the parental income test result for the person is the amount worked out using Submodule 6.

Submodule 2—Exemption from parental income test

Parent receiving Commonwealth benefit

1067G‑F3 A person is exempt from the parental income test while a parent of the person:

(a) is receiving a payment of pension, benefit, allowance or compensation referred to in Module L; or

Submodule 3—Appropriate tax year

Appropriate tax year

1067G‑F4 Subject to this Submodule, the appropriate tax year for a youth allowance payment period is the base tax year for that period.

Base tax year

1067G‑F5 The base tax year for a youth allowance payment period is the tax year that ended on 30 June in the calendar year that came immediately before the calendar year in which the period ends.

Example: A youth allowance payment period ends on 25 January 1999—this day occurs in the calendar year 1 January 1999 to 31 December 1999—the calendar year that came immediately before this one is the calendar year 1 January 1998 to 31 December 1998—the base tax year is the tax year that ended on 30 June 1998 (i.e. the year of income that began on 1 July 1997).

Change to appropriate tax year because of increase in combined parental income

1067G‑F6 If a person’s combined parental income under Submodule 4 for the tax year following the base tax year exceeds:

(a) 125% of the person’s combined parental income under that Submodule for the base tax year; and

(b) 125% of the person’s parental income free area under Submodule 5;

the appropriate tax year, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends after 30 September in a year, is the tax year following the base tax year.

Change to appropriate tax year at person’s request

1067G‑F7 If:

(aa) a person’s combined parental income for the tax year following the base tax year is substantially less than it was in the base tax year and is likely to continue to be so for 2 years after the later of:

(i) 1 January in the tax year following the base tax year; or

(ii) the day on which the combined parental income is reduced; and

(a) the person requests the Secretary to make a determination under point 1067G‑F8; and

(b) as a result, the Secretary determines under that point that, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends on or after:

(i) the day on which the request is made; or

(ii) 1 January in a year;

whichever day is later, the appropriate tax year is the tax year following the base tax year;

the appropriate tax year, for that purpose, is the tax year following the base tax year.

Person may ask Secretary to change appropriate tax year

1067G‑F8 If:

(a) youth allowance:

(i) is not payable to a person because the rate of youth allowance because of this Module is nil; or

(ii) is payable at a reduced rate because of this Module; and

(b) the person gives the Secretary an estimate of the person’s combined parental income under Submodule 4 for the tax year following the base tax year; and

(d) the person agrees that the person’s rate of youth allowance is to be recalculated if the person’s actual combined parental income for that tax year exceeds the amount that the person estimated;

the Secretary must determine that, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends on or after:

(e) the day on which the request is made; or

(f) 1 January in a year;

whichever day is later, the appropriate tax year is the tax year following the base tax year.

Form of request

1067G‑F9 A request under point 1067G‑F8 must be made in writing in accordance with a form approved by the Secretary.

Submodule 4—Combined parental income

Combined parental income

1067G‑F10 For the purposes of this Module, a person’s combined parental income for a particular tax year is the sum of the following amounts (income components) in respect of each of the person’s parents:

(a) the parent’s taxable income for that year, disregarding each parent’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for that year;

(b) the parent’s adjusted fringe benefits total for that year;

(d) the parent’s total net investment loss for that year;

(da) the parent’s tax free pensions or benefits for that year (worked out in accordance with clause 7 of Schedule 3 to the Family Assistance Act);

(e) the parent’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year.

Note 2: For taxable income see subsection 23(1).

Note 3: For adjusted fringe benefits total see subpoint 1067G‑F11(2).

Note 4: For target foreign income see subpoint 1067G‑F11(3).

Note 5: For total net investment loss, see subsection 10B(2).

Income components for tax year

1067G‑F11(1) A parent’s taxable income for a tax year is:

(a) the parent’s assessed taxable income for that year; or

(b) if the parent does not have an assessed taxable income for that year—the accepted estimate, in respect of the parent, of taxable income for that year.

1067G‑F11(2) A parent’s adjusted fringe benefits total for a tax year is the amount worked out using the formula:

where:

other employer fringe benefits total is the amount that is the sum of the following:

(a) each of the parent’s reportable fringe benefits amounts for the tax year under section 135P of the Fringe Benefits Tax Assessment Act 1986;

(b) each of the parent’s reportable fringe benefits amounts for the tax year under section 135Q of the Fringe Benefits Tax Assessment Act 1986, to the extent that section relates to the parent’s employment by an employer described in section 58 of that Act.

section 57A employer fringe benefits total is the amount that is the sum of each of the parent’s individual quasi‑fringe benefits amounts for the tax year under section 135Q of the Fringe Benefits Tax Assessment Act 1986, to the extent that section relates to the parent’s employment by an employer described in section 57A of that Act.

1067G‑F11(3) A parent’s target foreign income for a tax year is the accepted estimate of the amount of the parent’s foreign income (as defined in section 10A) for the tax year that is not:

(a) taxable income; or

(b) received in the form of a fringe benefit (as defined in the Fringe Benefits Tax Assessment Act 1986, as it applies of its own force or because of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986) in relation to the parent as employee (as defined in the Fringe Benefits Tax Assessment Act 1986) and a year of tax.

Assessed taxable income

1067G‑F12 A parent’s assessed taxable income for a tax year at a particular time is the most recent of:

(a) if, at that time, the Commissioner of Taxation has made an assessment or an amended assessment of that taxable income—that taxable income according to the assessment or amended assessment; or

(b) if, at that time, a tribunal has amended an assessment or an amended assessment made by the Commissioner—that taxable income according to the amendment made by the tribunal; or

Accepted estimate

1067G‑F13 An accepted estimate of an income component or an amount described in subpoint 1067G‑F11(3), in respect of a parent, for a tax year is that income component or amount according to the most recent notice given under point 1067G‑F14 and accepted by the Secretary for the purposes of this Module.

Notice estimating income component

1067G‑F14 A notice setting out an estimate of an income component or an amount described in subpoint 1067G‑F11(3), for a tax year, of a parent of a person claiming or receiving youth allowance may be given to the Secretary by:

(a) the parent; or

(b) the person claiming or receiving youth allowance.

However, if the parent gives a notice, any notice given, in respect of the same income component or amount and the same tax year, by the person claiming or receiving youth allowance is taken not to be, or not to have been, given.

Acceptance of notice

1067G‑F15 The Secretary is to accept a notice referred to in point 1067G‑F14 for the purposes of this Module only if the Secretary is satisfied that the estimate is reasonable.

Income reduced by maintenance paid by a parent

1067G‑F20 A parent’s combined parental income for a tax year is reduced by an amount equal to any maintenance paid during the tax year by the parent:

(a) for the upkeep of a child of the parent if the parent does not have care of the child; or

(b) to a former partner of the parent.

Submodule 5—Parental income free area

Parental income free area

1067G‑F22 For the purposes of this Module, a person’s parental income free area for a time in a calendar year is an amount equal to the income free area under clause 38N of Schedule 1 to the A New Tax System (Family Assistance) Act 1999, as affected by indexation under Schedule 4 to that Act, on 1 January in the calendar year.

Note: The parental income free area is not indexed under this Act because it is affected by indexation under the A New Tax System (Family Assistance) Act 1999.

Submodule 6—If person’s combined parental income exceeds parental income free area

Having parental income in common

1067G‑F26 For the purposes of this Submodule, 2 or more persons have parental income in common if:

(a) the parental income test applies to each of them; and

(b) a parent of one of the persons is also a parent of each of the other persons.

Note: See also points 1067G‑F30 and 1067G‑F31, which extend the situations in which a person will have parental income in common with other persons.

Person who does not have parental income in common with anyone else

1067G‑F27 Work out a person’s parental income test result using the following formula and point 1067G‑F29 if:

(a) the person does not have parental income in common with anyone else; and

(b) the person’s combined parental income (see Submodule 4) for the appropriate tax year exceeds the person’s parental income free area (see Submodule 5):

$Start formula start fraction The excess over 130 end fraction end formula$

Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a year) and dividing again by 5 (so that the parental income test result is only 20 cents for each dollar of the excess).

Person who has parental income in common with someone else

1067G‑F28 Work out a person’s parental income test result using the following formula and point 1067G‑F29 if:

(a) the person has parental income in common with one or more other persons; and

(b) the person’s combined parental income (see Submodule 4) for the appropriate tax year exceeds the person’s parental income free area (see Submodule 5):

$Start formula start fraction The excess over 130 end fraction times start fraction Person's maximum payment rate under Module A over Total of maximum payment rate for each person who has parental income in common end fraction end formula$

Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a year) and dividing again by 5.

Rounding the parental income test result

1067G‑F29 If the result of the formula in whichever of points 1067G‑F27 and 1067G‑F28 applies is not a multiple of 10 cents, round the result to the nearest 10 cents (rounding a multiple of 5 cents upwards).

Extension to recipients under ABSTUDY or Assistance for Isolated Children Scheme

1067G‑F30 This Submodule applies in relation to a person in respect of whom a payment is made under the ABSTUDY Scheme or the Assistance for Isolated Children Scheme and to whom a parental income test under that scheme applies as if:

(a) the parental income test under this Module applied to the person; and

(b) the total of the amounts described in the following table as relevant to the person were the maximum payment rate for the person for the purposes of this Submodule.

Amounts included in total treated as maximum payment rate
Item	If this allowance is being paid in respect of the person	This amount is relevant to the person
1	Living allowance under the ABSTUDY Scheme	The person’s maximum payment rate of the living allowance
2	Group 2 school fees allowance under the ABSTUDY Scheme	1/26 of the school fees allowance amount subject to income testing
3	Additional boarding allowance under the Assistance for Isolated Children Scheme	1/26 of the maximum rate of the additional boarding allowance

Note: This Submodule does not (of its own force) affect the amount payable to the person under the ABSTUDY Scheme or the Assistance for Isolated Children Scheme.

Extension to FTB children and regular care children

1067G‑F31 In working out a person’s (the recipient’s) parental income test result for the purposes of this Module:

(a) an FTB child, or a regular care child, of someone who is a parent of the recipient is taken to be a person (a relevant sibling) who has parental income in common with the recipient; and

(b) in using the formula in point 1067G‑F28 for the recipient, the maximum payment rate for relevant siblings is 14/365 of the amount worked out under point 1067G‑F32.

Note: For FTB child and regular care child, see section 23.

1067G‑F32 For the purposes of paragraph 1067G‑F31(b), the amount worked out under this point is the amount that would, at the time the recipient’s rate of youth allowance is worked out, be the parent’s maximum rate:

(a) under step 1 of the method statement in clause 3 of Schedule 1 to the Family Assistance Act (having regard only to clauses 7 and 11 for the purposes of paragraph (a) of that step); or

(b) if the only relevant sibling is a regular care child—under step 1 of the method statement in clause 28A of Schedule 1 to the Family Assistance Act.

1067G‑F33 In working out the parent’s maximum rate for the purposes of point 1067G‑F32:

(a) assume that the parent has made a claim for payment of family tax benefit by instalment in accordance with the Family Assistance Administration Act; and

(b) assume that the parent has not made an election under subsection 58A(1) of the Family Assistance Act; and

1067G‑F34 Work out the amount under point 1067G‑F32 for one parent only.

1067G‑F35 Count the amount worked out under point 1067G‑F32 once only in using the formula in point 1067G‑F28 for a recipient, regardless of how many relevant siblings the recipient has.

Module GA—Maintenance income test

Submodule 1—Maintenance income test result

Maintenance income test result

1067G‑GA1 This is how to work out the maintenance income test result for a person for the purposes of the method statement in point 1067G‑E1.

Method statement

Step 1. Work out whether the person is exempt from the maintenance income test using Submodule 2. If the person is exempt, go to step 5.

Step 2. If the person is not exempt, work out the annualised amount of maintenance income for a parent of the person (the parent’s maintenance income) using Submodule 3.

Step 3. Work out the parent’s maintenance income free area using Submodule 4.

Step 4. Work out whether the parent’s maintenance income exceeds the parent’s maintenance income free area.

Step 5. If:

(a) the parent’s maintenance income does not exceed the parent’s maintenance income free area; or

(b) the person is exempt from the maintenance income test;

then the maintenance income test result for the person is nil.

Step 6. If the parent’s maintenance income exceeds the parent’s maintenance income free area, multiply the excess by 0.5. The result, divided by 26, is the maintenance income test result for the person.

Submodule 2—Exemption from maintenance income test

Parent exempt from FTB maintenance income test

1067G‑GA2 A person is exempt from the maintenance income test if paragraphs 19B(a) and (b) of Schedule 1 to the Family Assistance Act apply to the person’s parent or to the parent’s partner.

Submodule 3—Annualised amount of maintenance income for parent of a person

Annualised amount of maintenance income

1067G‑GA3 Work out the annualised amount of maintenance income for a parent of the person as if step 1 of the method statement in clause 20 of Schedule 1 to the Family Assistance Act applied. In doing so:

(a) assume that the person is an FTB child of the parent; and

(b) assume that paragraphs (a), (b), (c) and (d) are not in the step; and

(d) in working out whether maintenance income is received in relation to the person, have regard to the considerations that would apply under the Family Assistance Act; and

(e) have regard to maintenance income for the income year in respect of which the person’s rate of youth allowance is being worked out.

Submodule 4—Maintenance income free area

Main rule

1067G‑GA4 The maintenance income free area for a parent of a person is:

(a) the column 2 amount (see point 1067G‑GA7); or

(b) if another point in this Submodule applies—the amount worked out in the point.

If there are other siblings including an FTB child

1067G‑GA5 This point applies if the parent of the person is also the parent of:

(a) an FTB child in relation to whom the parent receives maintenance income; or

(b) both:

(i) an FTB child in relation to whom the parent receives maintenance income; and

(ii) another person who is receiving youth allowance and in relation to whom the parent receives maintenance income.

The maintenance income free area for the parent is the column 3 amount (see point 1067G‑GA7).

If there are other siblings but no FTB child

1067G‑GA6 This point applies if the parent of the person:

(a) is also the parent of another person (an other recipient) who is receiving youth allowance and in relation to whom the parent receives maintenance income; and

(b) is not the parent of an FTB child in relation to whom the parent receives maintenance income.

The maintenance income free area for the parent is worked out using this formula:

$Start formula start fraction Column 2 amount plus Column 3 amount for each other recipient over 1 plus Number of other recipients end fraction end formula$

Definitions of column 2 amount and column 3 amount

1067G‑GA7 In this Submodule:

column 2 amount means the amount specified for item 1 in column 2 of the table in clause 22 of Schedule 1 to the Family Assistance Act.

column 3 amount means the amount specified for item 1 in column 3 of the table in clause 22 of Schedule 1 to the Family Assistance Act.

Note: The amounts are indexed under Schedule 4 of the Family Assistance Act.

Receiving maintenance income in relation to a person

1067G‑GA8 In working out whether a parent of a person receives maintenance income in relation to an FTB child or other person, have regard to the considerations that would apply under the Family Assistance Act.

Module H—Income test

Effect of ordinary income on maximum payment rate

1067G‑H1 This is how to work out the effect of a person’s ordinary income, and the ordinary income of a partner of the person, on the person’s maximum payment rate:

Method statement

Step 1. Work out the amount of the person’s ordinary income on a fortnightly basis (where appropriate, taking into account the matters provided for in points 1067G‑H2 to 1067G‑H25).

Step 2. If the person is a member of a couple, work out the partner income free area using point 1067G‑H26.

Note: The partner income free area is the maximum amount of ordinary income the person’s partner can have without affecting the person’s benefit.

Step 3. Use point 1067G‑H27 to work out the person’s partner income excess. (If there is no partner income excess under that point, the person’s partner income excess is taken to be nil.)

Step 4. Use the person’s partner income excess to work out the person’s partner income reduction using point 1067G‑H28.

Step 5. Use point 1067G‑H30 to work out the person’s ordinary income excess. (If there is no ordinary income excess under that point, the person’s ordinary income excess is taken to be nil.)

Step 6. Use the person’s ordinary income excess to work out the person’s ordinary income reduction using points 1067G‑H31, 1067G‑H32 and 1067G‑H33.

Step 7. Add the person’s partner income reduction and ordinary income reduction: the result is the person’s income reduction referred to in Step 12 of the Method statement in point 1067G‑A1.

Note 1: For ordinary income see subsection 8(1).

Note 2: The application of the income test is affected by provisions concerning:

(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);

(b) business income (sections 1074 and 1075);

(c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

(d) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

(e) disposal of income (sections 1106 to 1111).

Ordinary income of members of certain couples

1067G‑H2 If a person is a member of a couple and the person’s partner is receiving a social security pension, a service pension, income support supplement or a veteran payment, the person’s ordinary income is taken to be one half of the sum of:

(a) the amount that would be the person’s ordinary income if he or she were not a member of a couple; and

(b) the amount that would be the ordinary income of the person’s partner if the partner were not a member of a couple.

Friendly society amounts

1067G‑H3 The ordinary income of a person:

(a) who has a temporary incapacity exemption under section 542A; or

(b) who is a partner of a person who has a temporary incapacity exemption under that section;

is not to include any amount received from an approved friendly society in respect of the incapacity to which the temporary incapacity exemption relates.

1067G‑H3A The ordinary income of a person:

(a) who is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act; or

(b) who is a partner of a person who is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act;

is not to include any amount received from an approved friendly society in respect of the incapacity that resulted in the determination.

Lump sum payments arising from termination of employment

1067G‑H4 Subject to points 1067G‑H11 to 1067G‑H20 (inclusive), if:

(a) a person’s employment has been terminated; and

(b) as a result the person is entitled to a lump sum payment from the person’s former employer;

the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.

Ordinary income to include certain sick leave entitlements

1067G‑H5 If a person is qualified for youth allowance and the person:

(a) has a temporary incapacity exemption under section 542A; or

(b) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act;

the person’s ordinary income is taken to include an amount equal to the amount in respect of sick leave worked out under points 1067G‑H6, 1067G‑H7 and 1067G‑H8.

Sick leave entitlements

1067G‑H6 If:

(a) a person has sick leave entitlements on a day that the person is incapacitated for work; and

(b) the person has the right to claim payment from the person’s employer by way of sick leave payment in respect of that day; and

(d) the person is not receiving a leave payment (other than a sick leave payment) in respect of that day;

the person is, for the purposes of this point, taken to have received a sick leave payment equal to the person’s sick leave entitlements in respect of that day, assuming that the person does not exercise any rights the person may have in relation to the amount to be paid in respect of that day.

Subsequent consecutive applications of point 1067G‑H6

1067G‑H7 If point 1067G‑H6 has applied to a person in respect of a day, then, for the purposes of any subsequent consecutive applications of the point, the person’s sick leave entitlements are to be taken to be reduced by a day.

Sick leave payments already included in ordinary income

1067G‑H8 A person’s ordinary income is not to include a payment received by the person in respect of sick leave to the extent that an amount equal to the payment has been included in the person’s ordinary income under point 1067G‑H5.

Certain leave payments taken to be ordinary income—employment continuing

1067G‑H11 If:

(a) a person is employed; and

(b) the person is on leave for a period; and

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

Certain termination payments taken to be ordinary income

1067G‑H12 If:

(a) a person’s employment has been terminated; and

(b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.

Exception to points 1067G‑H11 and 1067G‑H12

1067G‑H12A Point 1067G‑H11 or 1067G‑H12 does not apply in relation to a person’s entitlement referred to in paragraph 1067G‑H11(c) or in relation to a person’s termination payment referred to in paragraph 1067G‑H12(b) if:

(a) the person makes a claim for youth allowance on or after the commencement of this point; and

(b) the person makes the claim after the death of the person’s partner on or after the commencement of this point; and

(c) if the person is a man or a woman who was not pregnant when her partner died—the person makes the claim in the period of 14 weeks starting on the day of the death of the partner; and

(d) if the person is a woman who was pregnant when her partner died—the person makes the claim:

(i) in the period of 14 weeks starting on the day of the death of the partner; or

(ii) 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; and

(e) the entitlement referred to in paragraph 1067G‑H11(c) arose, or the termination payment referred to in paragraph 1067G‑H12(b) was paid, in the period applicable under paragraph (c) or (d) of this point.

More than one termination payment on a day

1067G‑H13 If:

(a) the person is covered by point 1067G‑H12; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing

1067G‑H14 If the person is covered by point 1067G‑H11, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated

1067G‑H14A Subject to point 1067G‑H14C, if the person is covered by point 1067G‑H12, the income maintenance period starts, subject to point 1067G‑H14B, on the day the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

1067G‑H14B If a person who is covered by point 1067G‑H12 is subject to an income maintenance period (the first period) and the person is paid another termination payment during that period (the second leave payment), the income maintenance period for the second termination payment commences the day after the end of the first period.

Start of income maintenance period where liquid assets test waiting period applies

1067G‑H14C If a person to whom point 1067G‑H14A applies is subject to a liquid assets test waiting period, the income maintenance period is taken to have started on the day on which the liquid assets test waiting period started.

Leave payments or termination payments in respect of periods longer than a fortnight

1067G‑H15 Subject to points 1067G‑H5 to 1067G‑H8 (inclusive), if:

(a) a person receives a leave payment or termination payment; and

(b) the payment is in respect of a period greater than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.

1067G‑H16 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the allowance claimed may not be payable to the person; or

(b) the amount of the allowance payable to the person may be reduced.

When a person receives a leave payment or a termination payment

1067G‑H17 For the purposes of points 1067G‑H6 to 1067G‑H16 (inclusive), a person (first person) is taken to receive a leave payment or termination payment if the payment is made to another person:

(a) at the direction of the first person or a court; or

(b) on behalf of the first person; or

(d) the first person waives or assigns the first person’s right to receive the payment.

Single payment in respect of different kinds of termination payments

1067G‑H18 If a person who is covered by point 1067G‑H12 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1067G‑H11 to 1067G‑H17 (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions

1067G‑H19 In points 1067G‑H11 to 1067G‑H18 (inclusive):

payment fortnight means a fortnight in respect of which a youth allowance is paid, or would be paid apart from the application of an income maintenance period, to a person.

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

redundancy payment includes a payment in lieu of notice.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

Meaning of leave payment

1067G‑H20 In points 1067G‑H5 to 1067G‑H19 (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include:

(a) an instalment of parental leave pay; or

(b) dad and partner pay.

Board and lodging

1067G‑H22 A person’s ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.

Ordinary income generally taken into account when first earned, derived or received

1067G‑H23 Subject to points 1067G‑H23A, 1067‑H23B, 1067G‑H24 and 1067G‑H25 and sections 1072A and 1073, ordinary income (except employment income) is to be taken into account in the fortnight in which it is first earned, derived or received.

Note: See Division 1AA of Part 3.10 for the treatment of employment income.

Claimant or recipient receives lump sum amount for remunerative work

1067G‑H23A If a person whose claim for youth allowance has been granted receives, after the claim was made, a lump sum amount that:

(a) is paid to him or her in relation to remunerative work; and

(b) is not a payment to which point 1067G‑H24 applies; and

(d) is not employment income;

the person is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.

Partner of claimant or recipient receives lump sum amount for remunerative work

1067G‑H23B If:

(a) a person whose claim for youth allowance has been granted is a member of a couple; and

(b) after the person had made the claim, the person’s partner receives a lump sum amount that:

(i) is paid to him or her in relation to remunerative work; and

(ii) is not a payment to which point 1067G‑H24 applies; and

(iii) is not an exempt lump sum; and

(iv) is not employment income;

the partner is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.

Operation of points 1067G‑H23A and 1067G‑H23B

1067G‑H23C Points 1067G‑H23A and 1067G‑H23B have effect even if the person who has made the claim:

(a) is subject to a liquid assets test waiting period or an income maintenance period in respect of the allowance claimed; or

(b) is subject to a seasonal work preclusion period;

during the period of 12 months referred to in those points.

Ordinary income received at intervals longer than one fortnight

1067G‑H24 Subject to points 1067G‑H11 to 1067G‑H20 (inclusive), if:

(a) a person receives a number of payments of ordinary income (except employment income); and

(b) each payment is in respect of a period (work period) that is greater than a fortnight; and

(d) there is reasonable predictability as to the quantum of the payments;

the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by:

(e) dividing the amount received by the number of days in the work period (daily rate); and

(f) multiplying the daily rate by the number of days in the fortnight that are also within the work period.

Payment of arrears of periodic compensation payments

1067G‑H25 If:

(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving youth allowance; and

(b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by:

(d) multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.

Note: For periodic payments period see section 17.

Partner income free area

1067G‑H26 The partner income free area for a person is:

(a) if the person’s partner is not receiving a social security benefit and has not turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full‑time study (see section 541B); or

(b) if the person’s partner is not receiving a social security benefit and has turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which jobseeker payment would not be payable to the partner if the partner were qualified for a jobseeker payment; or

(c) if the person’s partner is receiving a social security benefit—the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.

1067G‑H26A For the purposes of paragraph 1067G‑H26(a), disregard steps 2, 2A and 3 of the method statement in point 1067G‑A1.

1067G‑H26B For the purposes of paragraph 1067G‑H26(b), disregard steps 2 and 3 of the method statement in point 1068‑A1.

Partner income excess

1067G‑H27 If:

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

(b) the person’s partner is not receiving a social security pension, a service pension, income support supplement or a veteran payment; and

then:

(d) the person has a partner income excess; and

(e) the person’s partner income excess is the amount by which the partner’s ordinary income exceeds the partner income free area.

Partner income reduction

1067G‑H28 If a person has a partner income excess, the person’s partner income reduction is an amount equal to 60% of the person’s partner income excess.

Example:

Facts: Alice’s partner Martin has an ordinary income of $800. Assume that the partner income free area under point 1067G‑H26 is $640.

Result: Martin’s ordinary income exceeds the partner income free area. Alice therefore has a partner income excess under point 1067G‑H27 of:

Alice’s partner income reduction under point 1067G‑H28 is therefore:

Ordinary income free area

1067G‑H29 A person’s ordinary income free area is:

(a) if the person is undertaking full‑time study at any time in the fortnight in respect of which a youth allowance may be payable, other than in compliance with a requirement contained in an employment pathway plan that is in force in relation to the person—$400; or

(aa) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable—$400; or

(b) otherwise—$150.

Ordinary income excess

1067G‑H30 If a person’s ordinary income exceeds the person’s ordinary income free area:

(a) the person has an ordinary income excess; and

(b) the person’s ordinary income excess is the amount by which the person’s ordinary income exceeds the person’s ordinary income free area.

Ordinary income reduction

1067G‑H31 If a person has an ordinary income excess, the person’s ordinary income reduction is the sum of:

(a) the person’s lower range reduction (if any)(see point 1067G‑H32); and

(b) the person’s upper range reduction (if any) (see point 1067G‑H33).

Lower range reduction

1067G‑H32 The person’s lower range reduction is an amount equal to 50% of the part of the person’s ordinary income excess that does not exceed:

(b) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable—$80; or

Upper range reduction

1067G‑H33 The person’s upper range reduction is an amount equal to 60% of the part (if any) of the person’s ordinary income excess that exceeds:

(b) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable—$80; or

Module J—Student income bank

Student income bank

1067G‑J1 A person’s ordinary income under Module H may be reduced under this Module. This diagram sets out how to work out:

(a) whether the person’s ordinary income for a particular fortnight, in respect of which youth allowance may be payable to the person, is to be reduced; and

(b) if it is to be reduced, the amount of the reduction.

Flowchart showing how to work out whether there is a reduction under Module J to the person's ordinary income for a fortnight with respect to youth allownance, and if so, the amount of the reduction.

Application of this Module

1067G‑J2 This Module applies to a person during a particular fortnight, in respect of which youth allowance may be payable to the person, if the person is undertaking full‑time study (see section 541B) or is a new apprentice (see subsection 23(1)) at any time during the fortnight.

Income bank credit

1067G‑J3 A person’s income bank credit for a particular income bank fortnight of the person is to be worked out as follows:

Method statement

Step 1. Assume that the person’s income bank credit, at the time this Module starts applying to the person, is an opening balance of zero.

Step 2. If, for the person’s first income bank fortnight, the person has an income credit under point 1067G‑J4, add it to the opening balance.

Step 3. For each subsequent income bank fortnight of the person, up to but not including the fortnight in question, either:

(a) if the person has an income credit for that fortnight under point 1067G‑J4 and the person is not a new apprentice—add it to the balance of the person’s income bank credit in respect of all the previous fortnights, but not so as to increase the balance beyond $10,000; or

(aa) if the person has an income credit for that fortnight under point 1067G‑J4 and the person is a new apprentice—add it to the balance of the person’s income bank credit in respect of all the previous fortnights, but not so as to increase the balance beyond $1,000; or

(b) if the person has, in respect of that fortnight, drawn from the person’s income bank credit under point 1067G‑J5—deduct from that balance the amount drawn, but not so as to reduce the balance below zero.

The result is the person’s income bank credit for the fortnight in question.

Income credit

1067G‑J4 For the purposes of point 1067G‑J3, if the amount that would, apart from this Module, be the person’s ordinary income for an income bank fortnight of the person is less than the ordinary income free area (see paragraph 1067G‑H29(a) or (aa)):

(a) the person has an income credit for that fortnight; and

(b) the income credit is an amount equal to the difference between the ordinary income free area (see paragraph 1067G‑H29(a) or (aa)) and the first‑mentioned amount.

Drawing from income bank credit

1067G‑J5 For the purposes of point 1067G‑J3, if the amount that would, apart from this Module, be the person’s ordinary income for an income bank fortnight of the person is greater than the ordinary income free area (see paragraph 1067G‑H29(a) or (aa)):

(a) the person is taken to have drawn from the person’s income bank credit in respect of that fortnight; and

(b) the amount drawn is taken to be an amount equal to the difference between the first‑mentioned amount and the ordinary income free area (see paragraph 1067G‑H29(a) or (aa)).

Income bank fortnight

1067G‑J6 For the purposes of this Module, an income bank fortnight of a person is any fortnight, in respect of which youth allowance may be payable to the person, during the whole or a part of which this Module applies to the person.

Opening balance following cancellation of another social security pension or benefit

1067G‑J7 If:

(a) a person ceases to be a working credit participant because of a determination to cancel, or an automatic cancellation of, the person’s social security pension or social security benefit; and

(b) the person had a working credit balance greater than nil immediately before the date of effect of the determination or cancellation; and

(d) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (b); and

(e) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day;

the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following suspension of youth allowance

1067G‑J8 If:

(a) a person ceases to be a working credit participant because of a determination to suspend the person’s youth allowance; and

(b) the person had a working credit balance greater than nil immediately before the date of effect of the determination; and

(i) the person commences to undertake full‑time study or becomes a new apprentice; and

(ii) the payment of the person’s youth allowance is resumed; and

(d) the person becomes a person to whom this module applies on the day with effect from which the person’s youth allowance is resumed;

the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the day mentioned in paragraph (d).

Opening balance following suspension and subsequent cancellation of another social security pension or benefit

1067G‑J9 If:

(a) a person ceases to be a working credit participant because of a determination to suspend the person’s social security pension or social security benefit; and

(b) while the person’s pension or benefit is suspended, there is a determination to cancel the person’s pension or benefit; and

(c) the person had a working credit balance greater than nil immediately before the date of effect of the suspension determination; and

(d) the person makes a claim, or is taken to have made a claim, for a youth allowance; and

(e) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (c); and

(f) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day;

the working credit balance mentioned in paragraph (c) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following commencement of full‑time study by youth allowance recipient

1067G‑J10 If:

(a) a person is receiving youth allowance and is not undertaking full‑time study; and

(b) the person commences to undertake full‑time study; and

(c) either because of a determination made as a result of the commencement or, if no determination is necessary, because of the commencement itself, the person, on a day (the module application day):

(i) ceases to be a working credit participant; and

(ii) becomes a person to whom this Module applies; and

(d) the person had a working credit balance greater than nil immediately before the module application day;

the working credit balance mentioned in paragraph (d) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following commencement as a new apprentice by youth allowance recipient

1067G‑J11 If:

(a) a person is receiving youth allowance and is not a new apprentice; and

(b) the person becomes a new apprentice; and

(c) either because of a determination made as a result of the commencement or, if no determination is necessary, because of the commencement itself, the person, on a day (the module application day):

(i) ceases to be a working credit participant; and

(ii) becomes a person to whom this Module applies; and

(d) the person had a working credit balance greater than nil immediately before the module application day;

the working credit balance mentioned in paragraph (d) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Module K—Remote area allowance

Remote area allowance—person physically in remote area

1067G‑K1 An amount by way of remote area allowance is to be added to a person’s rate of youth allowance if:

(a) the person’s rate of youth allowance apart from this point is greater than nil; and

(b) the person’s usual place of residence is situated in the remote area; and

Note 1: For remote area see subsection 14(1).

Note 2: A person may be considered to be physically present in a remote area during temporary absences (see subsection 14(2)).

Rate of remote area allowance

1067G‑K2 A person’s rate of remote area allowance is worked out using Table K. Work out which family situation in the table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each FTB child, and each regular care child, of the person.

Table K—Remote area allowance
Column 1 Item	Column 2 Person’s family situation	Column 3 Basic allowance	Column 4 Additional allowance for each FTB child and regular care child
1	Not a member of a couple	$18.20	$7.30
2	Partnered	$15.60	$7.30
3	Member of an illness separated couple	$18.20	$7.30
4	Partnered (partner in gaol)	$18.20	$7.30

Note: For member of a couple, partnered, illness separated couple and partnered (partner in gaol) see section 4.

Meaning of remote area allowance

1067G‑K3 In Table K, remote area allowance means an amount added to a person’s youth allowance by way of remote area allowance.

In remote area

1067G‑K4 For the purposes of Table K, a person is in the remote area if:

(a) the person’s usual place of residence is in the remote area; and

(b) the person is physically present in the remote area.

Special rule if partner has an FTB or regular care child but is not receiving a pension

1067G‑K6 If:

(a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

(b) the person’s partner is not receiving a social security pension or social security benefit; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule if partner has an FTB or regular care child but is not receiving additional allowance for the child

1067G‑K7 If:

(a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

(b) the person’s partner has an FTB child or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1067G‑K9 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.

Module L—Table of pensions, benefits, allowances and compensation

Table of pensions, benefits, allowances and compensation
Item	Type of pension, benefit, allowance and compensation
1	Age pension	(Part 2.2)
2	Service pension (age)	(Section 36 of the Veterans’ Entitlements Act)
3	Defence widow’s pension—if the widow has no dependent children	(Section 70 of the Veterans’ Entitlements Act)
4	War widow’s pension—if the widow has no dependent children	(Section 13 of the Veterans’ Entitlements Act)
4A	Compensation for an armed services widow who has no dependent children	(Paragraph 234(1)(b) or subsection 236(5) of the Military Rehabilitation and Compensation Act)
7	Service pension (partner)—if partner is receiving service pension (age)	(Section 38 of the Veterans’ Entitlements Act)
7A	Income support supplement	(section 45A of the Veterans’ Entitlements Act)
7B	Veteran payment	(section 45SB of the Veterans’ Entitlements Act)
12	Carer payment	(Part 2.5)
13	Service pension (carer)	(Section 39 of the Veterans’ Entitlements Act)
14	Defence widow’s pension—if the widow has a dependent child	(Section 70 of the Veterans’ Entitlements Act)
15	Disability support pension	(Part 2.3)
16	Service pension (invalidity)	(Section 37 of the Veterans’ Entitlements Act)
17	Pension PP (single)	(Part 2.10)
20	War widow’s pension—if the widow has a dependent child	(Section 13 of the Veterans’ Entitlements Act)
20A	Compensation for an armed services widow who has a dependent child	(Paragraph 234(1)(b) or subsection 236(5) of the Military Rehabilitation and Compensation Act)
22	Wife’s service pension—if husband is receiving an invalidity service pension	(Section 40 of the Veterans’ Entitlements Act)
23	Jobseeker payment	(Part 2.12)
25	Special benefit	(Part 2.15)
26	Benefit PP (partnered)	(Part 2.10)
27	Austudy payment	(Part 2.11A)

Part 3.5A—Austudy Payment Rate Calculator

1067H Definitions

In this Part:

living at home has the meaning given by section 1067J.

long term income support student has the meaning given by section 1067K.

1067J Person living at home

(1) A person lives at home if the person lives at the home of either or both of his or her parents.

Note: For parent see section 5 (paragraph (a) of the definition of parent).

1067K Long term income support student

(1) A person is a long term income support student if the person:

(b) does not have a dependent child; and

(i) undertaking study (whether as a full‑time student or as a concessional study‑load student) in respect of a course of education that the person has commenced after turning 21; or

(ii) a new apprentice and became a new apprentice after turning 21; and

(d) has, for at least 26 weeks in the period of 39 weeks that ended when the person commenced to undertake the study or became a new apprentice, been receiving one or more of the following:

(i) jobseeker payment;

(iii) special benefit;

(iv) disability support pension;

(vi) carer payment;

(ix) pension PP (single);

(x) sole parent pension;

(xi) benefit parenting allowance;

(xii) benefit PP (partnered).

Note 1: For dependent child see subsections 5(2) to (9).

Note 2: For full‑time student and concessional study‑load student see sections 569C and 569D.

(2) A person is also a long term income support student if the person:

(b) does not have a dependent child; and

(d) is undertaking a course in English, being a course that the Secretary has approved.

Note: For dependent child see subsections 5(2) to (9).

1067L Rate of austudy payment

Austudy Payment Rate Calculator

(1) The rate of austudy payment of a person referred to in section 581 is to be calculated in accordance with the Rate Calculator in this section.

Limit on rate of payment

(2) If:

(b) the other person is under the age of consent that applies in the State or Territory in which they are living;

the rate of the person’s austudy payment is not to be more than the rate at which the austudy payment would be payable to the person if the other person were the person’s partner.

Austudy Payment Rate Calculator

Method of calculating rate

1067L‑A1 The rate of payment is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

Method statement

Step 1. Work out the person’s maximum basic rate using Module B below.

Step 1A. Work out the pension supplement amount (if any) using Module BA below.

Step 1B. Work out the energy supplement (if any) using Module BB below.

Step 2. Work out the amount a fortnight (if any) of pharmaceutical allowance using Module C below.

Step 2A. Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).

Step 3. Add up the amounts obtained in Steps 1, 1A, 1B, 2 and 2A: the result is the maximum payment rate.

Step 4. Apply the income test using Module D below to work out the person’s income reduction.

Step 5. Take away the person’s income reduction from the maximum payment rate: the result is the provisional fortnightly payment rate.

Note: If a person’s rate is reduced under this step, the order in which the reduction is to be made is laid down by section 1210.

Step 6. The rate of payment is the amount obtained by:

(a) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and

(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and