Social Security Legislation Amendment Act (No. 3) 1992

No. 230 of 1992

 

PART 1—PRELIMINARY

Section

 

1.

Short title etc.

2.

Commencement

3.

Application

 

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

 

Division 1Maintenance income

4.

Index of definitions

5.

Income test definitions

6.

Maintenance income definitions

 

Division 2Qualification for job search allowance and sickness allowance

7.

Qualification for job search allowance

8.

Qualification for sickness allowance

 

Division 3Family relationships definitionschildren

9.

Family relationships definitions—children

 

Division 4Carer pension

10.

Qualification for carer pension

11.

Insertion of new section:

 

236A. Lump sum payable in some circumstances

TABLE OF PROVISIONScontinued

Section

 

12.

Qualification while person not providing care

13.

Rate of child disability allowance

14.

Earnings credit account balance may be set-off against ordinary income from remunerative work

15.

Earnings credit account

16.

Earnings credit account balance (Earnings Credit Account Balance Calculator)

 

Division 5Mobility allowance

17.

Qualification for mobility allowance

18.

Mobility allowance not payable in some circumstances

19.

Insertion of new section:

1039C. Refusal to attend interview etc.

20.

Rate of mobility allowance

21.

Repeal of section 1048 and substitution of new sections:

 

1047A. Mobility allowance advance

 

1048. Payments to be paid to person or nominee

22.

Where allowance payday would fall on public holiday etc.

23.

Indexed and adjusted amounts

24.

CPI Indexation Table

25.

Indexation of amounts

26.

General effect of Chapter

27.

Debts due to the Commonwealth

28.

Insertion of new section:

 

1224D. Mobility allowance advance debts

29.

Additional amount for late payment of certain debts

30.

Garnishee notice

31.

Schedule 1A

32.

Interpretation

 

Division 6Employment entry payments

33.

Disability support pension recipients

34.

Amount of section 664C payment

35.

Insertion of new sections:

 

664E. Widow B pension recipients

 

664F. Amount of section 664E payment

 

664G. Special benefit recipients

 

664H. Amount of section 664G payment

36.

Need for a claim

 

Division 7Education entry payment

37.

Payment to a sole parent pensioner

38.

Insertion of new heading:

 

Division 1Sole parent pension recipients

39.

Insertion of new Division:

 

Division 2Disability support pension recipients

 

665E. Payment to a disability support pensioner

 

665F. Amount of section 665E payment

 

665G. Need for a claim

 

665H. Claim may be withdrawn

40.

Insertion of new Divisions:

 

Division 3Widow B pension recipients

 

665I. Payment to widow B pensioner

 

665J. Amount of section 665I payment

TABLE OF PROVISIONScontinued

Section

 

 

665K. Need for a claim

 

665L. Claim may be withdrawn

 

Division 4Special benefit recipients

 

665M. Payment to a special benefit recipient

 

665N. Amount of section 665M payment

 

6650. Need for a claim

 

665P. Claim may be withdrawn

 

Division 8Rent assistance

41.

Pension Rate Calculator A

42.

Pension Rate Calculator B

43.

Pension Rate Calculator C

44.

Pension Rate Calculator D

45.

Pension Rate Calculator E

46.

Benefit Rate Calculator A

47.

Benefit Rate Calculator B

48.

Rate of family payment

49.

Indexed and adjusted amounts

50.

CPI Indexation Table

51.

Schedule 1A

 

Division 9Pension and benefit rate increased

52.

Pension Rate Calculator A

53.

Pension Rate Calculator B

54.

Pension Rate Calculator C

55.

Pension Rate Calculator D

56.

Pension Rate Calculator E

57.

Benefit Rate Calculator A

58.

Benefit Rate Calculator B

59.

CPI Indexation Table

 

Division 10Fringe benefits

60.

Repeal of sections 92 and 93 and substitution of new section:

 

92. Fringe benefits

61.

Repeal of sections 146R and 146S and substitution of new section:

 

146R. Fringe benefits

62.

12 month extension of fringe benefits—person ceasing to be on a disability support pension because of employment

63.

Repeal of section

64.

Repeal of sections 196 and 197 and substitution of new section:

 

196. Fringe benefits

65.

Repeal of sections 247 and 248 and substitution of new section:

 

247. Fringe benefits

66.

Repeal of sections 313 and 314 and substitution of new section:

 

313. Fringe benefits

67.

Repeal of sections 360 and 361 and substitution of new section:

 

360. Fringe Benefits

68.

Repeal of sections 408 and 409 and substitution of new section:

 

408. Fringe benefits

69.

Insertion of new Division:

 

592H. Fringe benefits

70.

Insertion of new Division:

 

Division 10Fringe Benefits

 

660W. Fringe benefits

71.

Insertion of new Division:

TABLE OF PROVISIONScontinued

Section

 

 

Division 10Fringe Benefits

 

728ZC. Fringe benefits

72.

Insertion of new Division:

 

Division 10Fringe Benefits

 

77IH. Fringe benefits

73.

Qualification for telephone allowance

74.

Repeal of Part 3.9

 

Division 11Job search allowance and newstart allowance (work rules)

75.

Prospective determinations for some allowees

76.

Activity test

77.

Relief from activity test—certain allowees under 18 engaged in voluntary work

78.

Insertion of new section:

 

524A. Relief from activity test—certain allowees between 18 and 50 engaged in voluntary work

79.

Relief from activity test—certain allowees over 50 engaged in voluntary work

80.

Prospective determinations for some allowees

81.

Activity test

82.

Relief from activity test—certain persons over 50 in employment

 

Division 12Special benefit

83.

Insertion of new sections:

 

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

 

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

 

729C. Consequence of subsection 729B(2) determination

84.

Insertion of new sections:

 

762B. Automatic termination when persons qualification ceases under section 729B or 729C

 

762C. Changes to payments by computer following automatic termination

85.

Insertion of new section:

 

765B. Changes to payments by computer

86.

Secretary may review decisions

87.

Application for review

88.

Application for review by SSAT

 

Division 13Review of decisions

89.

Application for review

90

Insertion of new section:

 

1242A. Automatic payment if review of section 607 terms decision sought

91.

Secretarys powers where application for review

92.

Application for review by SSAT

93.

Repeal of section

94.

Automatic continuation of payment if review of section 282 cancellation decision sought

95.

Automatic payment if review of section 607 terms decision sought

96.

Date of effect of SSAT decisions (other than rate of return decisions and newstart activity agreement decisions)

 

Division 14Indexation of taxable income threshold

97.

Rate of job search allowance (under 18) and sickness allowance (under 18)

98.

Rate of family payment

99.

Analysis of Part

100.

CPI Indexation Table

101.

Repeal of Division 3 of Part 3.16

TABLE OF PROVISIONScontinued

Section

 

 

Division 15Newly arrived residents waiting periods

102.

Index of definitions

103.

General definitions

104.

Job search allowance not payable in certain situations

105.

Commencement of job search allowance

106.

Insertion of new sections:

 

541B. Newly arrived residents waiting period

 

541C. Duration of newly arrived residents waiting period

107.

Newstart allowance not payable in certain situations

108.

Commencement of newstart allowance

109.

Insertion of new sections:

 

623A. Newly arrived residents waiting period

 

623B. Duration of newly arrived residents waiting period

110.

Sickness allowance not payable in certain circumstances

111.

Insertion of new sections:

 

696B. Newly arrived residents waiting period

 

696C. Duration of newly arrived residents waiting period

 

Division 16Investments

112.

Index of definitions

113.

Investment income definitions

114.

Repeal of section

115.

Repeal of section 1073 and substitution of new section:

 

1073. Structure of Division

116.

Insertion of new Subdivision:

 

Subdivision AAManaged investments

 

1074A. Investments to which this Subdivision applies

 

1074B. How investment returns are taken into account in working out pension and benefit rates

 

1074C. How investment losses are taken into account in working out pension and benefit rates

 

 

1074D. Returns and losses on investment products

 

1074E. Annualised rate of return or loss on investment product

 

1074F. Investment and disposal costs

 

1074G. Actual return on investments not treated as ordinary income

117.

Heading to Subdivision B of Division 1 of Part 3.10

118.

Investments made or acquired before 1 January 1988 with friendly societies or where no immediate return

119.

Repeal of sections

120.

Heading to Subdivision C of Division 1 of Part 3.10

121.

Market-linked investments made or acquired before 9 September 1988

122.

Repeal of sections

123.

Heading to Division 1A

124.

Repeal of section 1099A and substitution of new section:

1099A. Structure of Division

125.

Insertion of new section:

1099DA. Other deposit money

126.

Insertion of new section:

1099GA. Structure of Division

127.

Insertion of new section:

1099KA. Other loans

 

Division 17Superannuation investments prior to pension age

128.

Income test definitions

129.

Investment income definitions

130.

Investments made before 1 January 1988 with friendly societies or where no immediate return

TABLE OF PROVISIONScontinued

Section

 

131.

Market-linked investments made or acquired before 9 September 1988

132.

Insertion of new Subdivision:

 

Subdivision DSuperannuation fund investments before pension age

 

1097. Provisions affecting superannuation fund investments before pension age

 

1097A. Early withdrawal from superannuation fund

133.

Certain assets to be disregarded in calculating the value of a persons assets

 

Division 18Shares and other listed securities

134.

Investment income definitions

135.

Heading to Subdivision AA of Division 1 of Part 3.10

136.

Investments to which this Subdivision applies

 

Division 19Allocated pensions

137.

Investment income definitions

138.

Certain assets to be disregarded in calculating the value of a persons assets

139.

Value of annuities

 

Division 20Notices of decisions

140.

New section 1302A:

 

1302A. Notices of decisions under this Act

 

Division 21Debt recovery

141.

General effect of Chapter

142.

Debts due to the Commonwealth

143.

Insertion of new section:

 

1224C. Data-matching Program (Assistance and Tax) Act debts

144.

Deductions from debtors pension, benefit or allowance

145.

Garnishee notice

146.

Deductions by consent from pension, benefit or allowance of person who is not a debtor

 

Division 22Job search allowance and newstart allowance

147.

Index of definitions

148.

General definitions

149.

Qualification for newstart allowance

150.

Persons may be treated as unemployed

151.

Insertion of new section:

 

595A. Certain persons to be treated as employed

152.

Ordinary waiting period

 

Division 23Rate of job search, newstart and sickness allowance

153.

Benefit Rate Calculator A

154.

Benefit Rate Calculator B

 

PART 3—FURTHER AMENDMENTS

155.

Amendment of the Principal Act

156.

Amendments of other Acts

TABLE OF PROVISIONScontinued

 

SCHEDULE 1

AMENDMENTS RELATING TO FAMILY PAYMENT

 

SCHEDULE 2

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO REMOTE AREA ALLOWANCE

 

SCHEDULE 3

AMENDMENTS OF OTHER ACTS

 

SCHEDULE 4

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

Social Security Legislation Amendment Act (No. 3) 1992

No. 230 of 1992

An Act to amend the Social Security Act 1991, and for related purposes

[Assented to 24 December 1992]

The Parliament of Australia enacts:

 

PART 1—PRELIMINARY

Short title etc.

1.(1) This Act may be cited as the Social Security Legislation Amendment Act (No. 3) 1992.

(2) In this Act, Principal Act means the Social Security Act 19911.

Commencement

2.(1) The following provisions commence on the day on which this Act receives the Royal Assent:

(a)     Part 1;

(b)     Divisions 20, 21 and 22 of Part 2;

(c)     Part 3.

(2)     Part 1 of Schedule 1 is taken to have commenced on 26 June 1992, immediately after the Social Security (Family Payment) Amendment Act 1992 received the Royal Assent.

(3)     The following provisions commence, or are taken to have commenced, on 1 January 1993:

(a)     Divisions 1, 13 and 15 of Part 2;

(b)     sections 20, 23, 24 and 25;

(c)     sections 37 and 38;

(d)     Schedule 2 and Part 1 of Schedule 4.

(4) The following provisions commence, or are taken to have commenced, on 1 January 1993, immediately after the commencement of the Social Security (Family Payment) Amendment Act 1992:

(a)     Division 14 of Part 2;

(b)     sections 39 and 40;

(c)     paragraphs 41(b) and (c);

(d)     Parts 2 and 3 of Schedule 1 ;

(e)     Part 1 of Schedule 3.

(5)     Division 23 of Part 2 commences, or is taken to have commenced, on 1 January 1993, immediately after the commencement of Part 2 of Schedule 2 of the Social Security Legislation Amendment Act (No. 2) 1992.

(6)     Division 9 of Part 2 commences on 28 January 1993.

(7)     Sections 35 and 36 and Division 11 of Part 2 commence on 1 March 1993.

(8)     The following provisions commence on 20 March 1993:

(a)     Divisions 2, 3, 5 and 8 of Part 2 (except sections 20, 23, 24 and 25 and paragraphs 41(b) and (c));

(b)     sections 33 and 34;

(c)     Division 12 of Part 2;

(d)     Part 2 of Schedule 4.

(9) Divisions 16 and 17 of Part 2 commence on 25 March 1993.

(10)     Division 10 of Part 2 and Part 2 of Schedule 3 commence on 1 April 1993.

(11)     Division 4 of Part 2 commences on 1 July 1993.

(12)     Division 18 of Part 2 commences on 20 September 1993.

(13)     Division 19 commences on:

(a)     1 October 1993; or

(b)     the date of report to the Senate by a Senate standing or select committee on the application of Division 19;

whichever is the later.

Application

3.(1) The amendments made by Division 8 of Part 2 (except paragraphs 41(b) and (c)) apply to instalments of pension, benefit, allowance or family payment that fall due on or after 20 March 1993.

(2)     The amendments made by Division 9 of Part 2 apply to instalments of social security pension or social security benefit that fall due on or after 28 January 1993.

(3)     The amendments made by Division 12 of Part 2 apply to determinations made on or after 20 March 1993 to grant special benefit, even if the claim for special benefit was made before that day.

(4)     The amendments made by Division 13 of Part 2 apply to:

(a)     a decision of an officer under the Social Security Act 1991; and

(b)     a decision under section 5A, 5B, 5C, 5D, 5E or 5EA of the Health Insurance Act 1973;

if the decision is made on or after 1 January 1993.

(5) The amendments made by Division 21 of Part 2 apply not only to debts that arise on or after the day on which this Act receives the Royal Assent under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990 but also to debts that arose before that day.

 

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

Division 1Maintenance income

Index of definitions

4. Section 3 of the Principal Act is amended by inserting in the Index:

disability expenses maintenance 10(1).

Income test definitions

5. Section 8 of the Principal Act is amended by inserting after paragraph (8)(j) the following paragraph:

(ja) disability expenses maintenance;

Note: for disability expenses maintenance see subsection 10(6)..

Maintenance income definitions

6. Section 10 of the Principal Act is amended:

(a) by adding but does not include disability expenses maintenance; at the end of the definition of maintenance income in subsection (1);

(b)    by omitting or (last occurring) from paragraph (b) of the definition of special maintenance income;

(c)     by omitting paragraph (c) of the definition ofspecial maintenance income in subsection (1);

(d)    by inserting the following definition in subsection (1):

disability expenses maintenance has the meaning given in subsection (6);;

(e)     by omitting from subsection (3) definition and substituting definitions;

(f)      by inserting in subsection (3)anddisability expenses maintenance after maintenance income ;

(g)     by adding at the end the following subsection:

(6) A payment or benefit is disability expenses maintenance of a person if:

(a) the payment or benefit is provided for expenses arising directly from:

(i) a physical, intellectual or psychiatric disability; or

(ii) a learning difficulty;

of a dependent child of the person; and

(b)     the disability or difficulty is likely to be permanent or to last for an extended period; and

(c)     the payment or benefit is received:

(i) by the person for the maintenance of the dependent child; or

(ii) by the dependent child for the childs own maintenance; and

(d) the payment or benefit is received from;

(i) a parent of the child; or

(ii) the partner or former partner of a parent of the child..

Division 2Qualification for job search allowance and sickness allowance

Qualification for job search allowance

7. Section 513 of the Principal Act is amended:

(a)     by omitting from subparagraph (1A)(d)(ii) and;

(b)    by adding at the end of paragraph (1A)(d) the following word and subparagraph:

or (iii) has been registered with the CES in an allowance category as being unemployed for at least 13 weeks; and.

Qualification for sickness allowance

8. Section 666 of the Principal Act is amended:

(a)     by omitting from subparagraph (1A)(f)(ii) and;

(b)    by adding at the end of paragraph (1A)(f) the following word and subparagraph:

or (iii) has been registered with the CES in an allowance category as being unemployed for at least 13 weeks; and.

Division 3Family relationships definitionschildren

Family relationships definitions—children

9. Section 5 of the Principal Act is amended by omitting 6 months from paragraph (1)(a) of the definition of independent young person and substituting 18 weeks.

Division 4Carer pension

Qualification for carer pension

10. Section 198 of the Principal Act is amended:

(a) by omitting subsection (1) and substituting the following subsection:

(1) A person (the carer) is qualified for a carer pension if:

(a) the carer personally provides constant care for a severely handicapped person; and

Note: see subsections (2) and (2AA) below for the circumstances in which this requirement is modified.

(b)    the care is provided in a private residence that is the home of the handicapped person; and

(c)    the carer lives in a home that is either:

(i) the home of both the carer and the handicapped person; or

(ii) adjacent to the home of the handicapped person; and

(d) either:

(i) the handicapped person is receiving a social security pension or benefit or a service pension; or

(ii) subsection (1A) (certain severely handicapped people not receiving pension because of residence test) applies to the handicapped person; and

(e) the carer is in Australia.

Note: see subsections (2) and (2A) below for the circumstances in which this requirement is modified.;

(b) by inserting after subsection (1) the following subsection:

(1A) This subsection applies to a severely handicapped person if:

(a)     the person has turned 16; and

(b)     either:

(i) the person would be receiving a social security pension if the person had been an Australian resident for a long enough period; or

(ii) the person would be receiving a service pension if the person had resided in Australia for a long enough period.;

(c)     by omitting from subparagraph (2)(c)(i) 28 and substituting 42;

(d)    by omitting from subsection (2) merely because of that cessation. and substituting:

merely because of:

(d)     that cessation; or

(e)     the carer not being in Australia during that cessation.;

(e) by inserting after subsection (2) the following subsection:

(2AA) If:

(a)    a person is personally providing constant care for a severely handicapped person; and

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

(c)    the cessation does not exceed 10 hours per week;

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

(f)      by omitting from paragraph (b) of the definition of severely handicapped person in subsection (3) extended period; and and substituting extended period.;

(g)    by omitting paragraph (c) of the definition of severely handicapped person in subsection (3).

Insertion of new section

11. After section 236 of the Principal Act the following section is inserted in Subdivision A of Division 9 of Part 2.5:

Lump sum payable in some circumstances

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

(a)     the person is receiving a carer pension; and

(b)     the person is caring for another person who is not the persons partner; and

(c)     the person being cared for dies; and

(d) immediately before the death of the person being cared for either:

(i) the person being cared for was not a member of a couple; or

(ii) the person being cared for was a member of a couple and the partner of the person being cared for:

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

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

(C)     was not receiving a service pension.

Note: if the partner of the person being cared for was receiving a social security pension or benefit or a service pension, the partner would receive bereavement payments in respect of the death of the person being cared for.

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

(3) The amount under this subsection is:

partnered MBR × 7

where:

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

(4) The amount under this subsection is:

carers current instalment × 7

where:

carers current instalment is the amount of the last instalment of carer pension paid to the carer before the person cared for died..

Qualification while person not providing care

12. Section 955 of the Principal Act is amended by omitting from paragraph (1)(b) 28 and substituting 42.

Rate of child disability allowance

13. Section 967 of the Principal Act is amended by omitting from paragraph (2)(a) 28 and substituting 42.

Earnings credit account balance may be set-off against ordinary income from remunerative work

14. Section 1113 of the Principal Act is amended by omitting from paragraph (a) (other than a carer pension).

Earnings credit account

15. Section 1114 of the Principal Act is amended:

(a) by omitting from paragraph (1)(a) (other than a carer pension);

(b)     by omitting from subparagraph (1)(b)(ii) (other than a carer pension);

(c)     by omitting from subparagraph (1)(b)(ii) (other than a carer service pension);

(d)     by omitting from paragraph (2)(a) (other than a carer pension);

(e)     by omitting from paragraph (2)(b) (other than a carer pension);

(f)      by omitting from paragraph (2)(b) (other than a carer service pension).

Earnings credit account balance (Earnings Credit Account Balance Calculator)

16. The Earnings Credit Account Balance Calculator in section 1115 of the Principal Act is amended by inserting after point 1115-B2 the following point:

People receiving carer pension sometime between 1 January 1993 and 1 July 1993

1115-B2A. If:

(a)     a person is receiving a carer pension on 1 July 1993; and

(b)     the person commenced to receive the carer pension before 1 July 1993;

there is to be added to the opening balance of the persons earning credit account on 1 July 1993:

(c)     the sum of the earnings credits (if any) that the person has between 1 January 1993 and 30 June 1993 while the person has been receiving carer pension; and

(d)     if the person:

(i) commenced to receive carer pension on or after 1 January 1993; and

(ii) immediately before commencing to receive the carer pension, the person was receiving a social security pension or a service pension and had an earnings credit account balance under this Act or Division 11 of Part III of the Veterans Entitlements Act;

the amount of that account balance.

Note 1: because the person could not take advantage of the earnings credit system between 1 January 1993 and 30 June 1993, the person cannot draw on the account during that period.

Note 2: although the person does not have an earnings credit account until 1 July 1993, the person can have earnings credits (as defined by point 1115-C1) for the earnings credit accounting periods (as defined by point 1115-A6) that fall between 1 January 1993 and 30 June 1993..

Division 5Mobility allowance

Qualification for mobility allowance

17. Section 1035 of the Principal Act is amended by inserting after paragraph (b) the following word and paragraphs:

; or (c) 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 persons inability to use public transport without substantial assistance is because of the persons physical or mental disability; and

(C)     the person is undertaking job search activities as part of an activity plan developed by a Disability Panel established by the Secretary;

(iii) the person is physically present in Australia;

(iv) 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 persons inability to use public transport without substantial assistance is because of the persons physical or mental disability; and

(C)     the person is engaged in voluntary work approved by the Secretary for charitable, welfare or community organisations for at least 8 hours a week on a continuing basis;

(iii) the person is physically present in Australia;

(iv) the person is an Australian resident..

Mobility allowance not payable in some circumstances

18. Section 1036 of the Principal Act is amended by inserting after paragraph (aa) the following paragraphs:

(ab) the person has received a mobility allowance advance under section 1047A and the persons advance payment period has not ended (see section 1044); or

(ac) the person fails to comply with a requirement that the person:

(i) contact an officer; or

(ii) attend an interview; or

(iii) complete a questionnaire; or

(iv) attend a medical, psychiatric or psychological examination;

as required by section 1039C; or.

Insertion of new section

19. After section 1039B of the Principal Act the following section is inserted in Subdivision B of Division 1 of Part 2.21:

Refusal to attend interview etc.

1039C. (1) Mobility allowance is not payable to a person if:

(a)     the person is receiving mobility allowance; and

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

(i) contact a specified officer of the Department; or

(ii) attend an interview at a specified place; or

(iii) complete a questionnaire; or

(iv) attend a medical, psychiatric or psychological examination; and

(c) the Secretary notifies the person that the person is required to:

(i) contact that officer; or

(ii) attend that interview; or

(iii) complete that questionnaire; or

(iv) attend that examination; or

(v) if the person has undergone an examination—give the Secretary a report on that examination in the approved form; and

(d)     the Secretary is satisfied that it is reasonable for this section to apply to the person; and

(e)     the person does not take reasonable steps to comply with the Secretarys requirements within the time specified in the notice.

Note: the persons allowance will be cancelled or suspended by a determination of the Secretary under section 1059.

(2) A notice under paragraph (1)(c) must be in writing and must inform the person of the effect of this section..

Rate of mobility allowance

20. Section 1044 of the Principal Act is amended:

(a)     by omitting $40 and substituting $50.50;

(b)     by adding at the end the following subsection and Notes:

(2) A persons mobility allowance rate is nil if:

(a)     the person has received mobility allowance advance under section 1047A; and

(b)     the persons advance payment period has not ended.

Note 1: for advance payment period see paragraph 1047A(2)(b).

Note 2: the rate of mobility allowance is indexed annually in line with CPI increases (see section 1191—item 34 of the CPI Indexation Table—and sections 1192 to 1194)..

Repeal of section 1048 and substitution of new sections

21. Section 1048 of the Principal Act is repealed and the following sections are substituted:

Mobility allowance advance

1047A. (1) A person is qualified for a mobility allowance advance if:

(a)     the person is receiving mobility allowance; and

(b)     the person requests 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)     a mobility allowance advance has not been paid to the person in the 12 months before the day on which the request is made.

(2) For the purposes of subsection (1):

(a)     a persons advance payday is the first allowance payday for which it is practicable to pay the advance and adjust the persons mobility allowance payments; and

(b)     a persons advance payment period is the period of 6 months starting on the advance payday.

(3) The amount of the advance is:

mobility allowance rate × 13

where:

mobility allowance rate is the rate of mobility allowance on the advance payday.

Payments to be paid to person or nominee

1048.(1) Subject to subsection (3), a persons section 1046 instalments and section 1047A advances are to be paid to that person.

(2) The Secretary may direct that the whole or a part of a persons section 1046 instalments and section 1047A advances are to be paid to someone else on behalf of the person.

(3) If the Secretary makes a direction under subsection (2), the section 1046 instalments and section 1047A advances are to be paid in accordance with the direction..

Where allowance payday would fall on public holiday etc.

22. Section 1051 of the Principal Act is amended by omitting of mobility allowance and substituting under section 1048.

Indexed and adjusted amounts

23. Section 1190 of the Principal Act is amended by adding the following item at the end of the Indexed and Adjusted Amounts Table:

57.

mobility allowance rate

MA rate

[section 1044].

CPI Indexation Table

24. Section 1191 of the Principal Act is amended by adding at the end of the CPI Indexation Table in subsection (1) the following item:

Mobility allowance

 

 

 

 

34.

MA rate

1 January

June

highest June quarter before the reference quarter (but not earlier than June 1991 quarter)

$0.10

 

 

 

 

 

.

Indexation of amounts

25. Section 1192 of the Principal Act is amended by adding at the end the following subsection:

(3) The first indexation of the MA rate under subsection (1) is to take place on 1 January 1994..

General effect of Chapter

26. Section 1222 of the Principal Act is amended:

(a) by omitting from Note 1 to subsection (1):

• section 1224C debts—Data-matching Program debts; and substituting:

• section 1224C debts—Data-matching Program debts;

• section 1224D debts—mobility allowance advance debts;;

(b) by inserting after item 5B in the Recovery Methods Table in subsection (2) the following item:

5C.

1224D (mobility allowance advance debt)

deductions legal proceedings garnishee notice

1231, 1234A

1232

1233

 

 

 

 

 

 

”.

Debts due to the Commonwealth

27. Section 1222A of the Principal Act is amended by omitting from Note 1 1224C, and substituting 1224C, 1224D,.

Insertion of new section

28. After section 1224C of the Principal Act the following section is inserted:

Mobility allowance advance debts

1224D.(1) If:

(a)     a person (the recipient) has received mobility allowance advance; and

(b)     the advance was paid because the recipient or another person:

(i) made a false statement or a false representation; or

(ii) failed or omitted to comply with a provision of this Act; and

(c) the Secretary determines that the recipients qualification for mobility allowance ceased on a particular day during the recipients advance payment period;

the amount worked out under subsection (2) is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of:

(d)     if the recipient is receiving a pension, benefit or allowance under this Act—deductions from the recipients pension, benefit or allowance; or

(e)     if section 1234A applies to another person who is receiving a pension, benefit or allowance under this Act—deductions from that other persons pension, benefit or allowance; or

(f) legal proceedings; or

(g) garnishee notice.

Note 1: for advance payment period see paragraph 1047A(2)(b).

Note 2:for deductions see sections 1231 and 1234A.

Note 3:for legal proceedings see section 1232.

Note 4: for garnishee notice see section 1233.

Note 5:if the person does not pay the debt within 3 months after receiving a notice of the amount of the debt, the amount of the debt will increase under section 1229.

(2) For the purposes of subsection (1), the amount of the recipients debt is:

amount of advance

×

number of paydays

13

where:

amount of advance means the amount of mobility allowance advance paid to the recipient under section 1047A;

number of paydays means the number of whole paydays in the period that starts on the day determined by the Secretary under paragraph

1224D(1)(c) and ends at the end of the recipients advance payment period.

(3) This section extends to:

(a)     acts, omissions, matters and things outside Australia whether or not in a foreign country; and

(b)     all persons irrespective of their nationality or citizenship..

Additional amount for late payment of certain debts

29. Section 1229 of the Principal Act is amended by inserting in subparagraph (1)(a)(i) 1224D, after 1224,.

Garnishee notice

30. Section 1233 of the Principal Act is amended by inserting in subsection (1) 1224D, after 1224C,.

Schedule 1A

31. The Principal Act is amended by adding at the end of Schedule 1A the following clause:

Directions under section 1048

62. A direction that was in force under subsection 1048(3) of this Act as in force immediately before 20 March 1993 has effect, from 20 March 1993, as if it were a direction under that subsection of this Act as in force on that day..

Interpretation

32. Section 84 of the National Health Act 19532 is amended by inserting after paragraph (aa) of the definition of concessional beneficiary in subsection (1) the following paragraph:

(ab) a person to whom, or in respect of whom, there is being paid a mobility allowance under the Social Security Act 1991; or.

Division 6Employment entry payments

Disability support pension recipients

33. Section 664C of the Principal Act is amended:

(a) by omitting paragraph (1)(b) and substituting the following paragraph:

(b) immediately before the person commenced the employment, the person was receiving a disability support pension; and;

(b)     by omitting Note 2 to subsection (1);

(c)     by omitting from subsection (4) the definition of qualified recipient.

Amount of section 664C payment

34. Section 664D of the Principal Act is amended by omitting $200 and substituting $300.

Insertion of new sections

35. After section 664D of the Principal Act the following sections are inserted:

Widow B pension recipients

664E.(1) A woman is qualified for an employment entry payment under this section if:

(a)     her income from employment rises (including the case where a woman commences employment); and

(b)     immediately before the rise in her income from employment, she was receiving a widow B pension; and

(c)     because of the rise in her income from employment, her income from employment exceeds the threshold amount; and

(d)     her income from employment is, in the Secretarys opinion, likely to exceed the threshold amount for more than 4 weeks; and

(e)     she has not, within the last 12 months, received a payment under this Part.

(2) If the Secretary is satisfied that:

(a)     a woman has entered an agreement under which she is to be employed or her earnings are to be increased; and

(b)     on the start of that employment or increase in those earnings, the woman would, apart from receiving a payment under this subsection, be qualified for a payment under subsection (1);

the following provisions have effect:

(c)     subject to paragraph (d), the woman is qualified for an employment entry payment which is payable to her at such time as the Secretary determines;

(d)     the woman is not qualified for the employment entry payment unless the Secretary is still satisfied as mentioned in paragraphs (a) and (b) at the time at which the payment is payable to her.

(3) The time determined under paragraph (2)(c) must not be more than 14 days before the woman is to commence the employment or her income from the employment is to rise.

(4) In this section:

threshold amount means the maximum amount of ordinary income that a person receiving newstart allowance could earn, derive or receive without the allowance ceasing to be payable, if the person:

(a)     was not a member of a couple; and

(b)     was not receiving rent assistance; and

(c)     was not receiving remote area allowance; and

(d)     had turned 21 but had not turned 60.

Amount of section 664E payment

664F. The amount of an employment entry payment under section 664E is $100.

Special benefit recipients

664G.(1) A person is qualified for an employment entry payment under this section if:

(a)     the person would be qualified for a sole parent pension apart from paragraph 249(1)(c) and subsection 262(1) (Australian residency requirements); and

(b)     the persons income from employment rises (including the case where a person commences employment); and

(c)     immediately before the rise in the persons income from employment, the person was receiving special benefit; and

(d)     because of the rise in the persons income from employment, the persons income from employment exceeds the threshold amount; and

(e)     the persons income from employment is, in the Secretarys opinion, likely to exceed the threshold amount for more than 4 weeks; and

(f)      the person has not, within the last 12 months, received a payment under this Part.

(2) If the Secretary is satisfied that:

(a)     a person has entered an agreement under which the person is to be employed or the persons earnings are to be increased; and

(b)     on the start of that employment or increase in those earnings, the person would, apart from receiving a payment under this subsection, be qualified for a payment under subsection (1);

the following provisions have effect:

(c)     subject to paragraph (d), the person is qualified for an employment entry payment which is payable to the person at such time as the Secretary determines;

(d)     the person is not qualified for the employment entry payment unless the Secretary is still satisfied as mentioned in paragraphs (a) and (b) at the time at which the payment is payable to the person.

(3) The time determined under paragraph (2)(c) must not be more than 14 days before the person is to commence the employment or the persons income from the employment is to rise.

(4) In this section:

threshold amount means the maximum amount of ordinary income that a person receiving newstart allowance could earn, derive or receive without the allowance ceasing to be payable, if the person:

(a)     was not a member of a couple; and

(b)     was not receiving rent assistance; and

(c)     was not receiving remote area allowance; and

(d)     had turned 21 but had not turned 60.

Amount of section 664G payment

664H. The amount of an employment entry payment under section 664G is $100..

Need for a claim

36. Section 665 of the Principal Act is amended:

(a)     by omitting from subsection (1) or 664C and substituting , 664C, 664E or 664G;

(b)     by inserting in subsection (3) , 664E or 664G after 664A.

Division 7Education entry payment

Payment to a sole parent pensioner

37. Section 665A of the Principal Act is amended by omitting from paragraph (b) education and substituting pensioner education.

Insertion of new heading

38. Before section 665A of the Principal Act the following heading is inserted in Part 2.13A:

Division 1Sole parent pension recipients.

39. The Principal Act is amended by adding at the end of Part 2.13A the following Division:

Division 2Disability support pension recipients

Payment to a disability support pensioner

665E. A person is qualified for an education entry payment under this section if:

(a)     the person is receiving a disability support pension; and

(b)     the person is qualified to receive pensioner education supplement under the AUSTUDY scheme; and

(c)     either:

(i) the Secretary is satisfied that the person intends to enrol in a full-time or part-time course of education that is an approved course under the AUSTUDY scheme; or

(ii) the person is enrolled in such a course; and

(d) the person has not received a payment under this Part for which he or she made a claim in the current calendar year.

Amount of section 665E payment

665F. The amount of an education entry payment under section 665E is $200.

Need for a claim

665G. A person is not qualified for an education entry payment under section 665E unless:

(a)     the person makes a claim for the payment; and

(b)     the claim is in writing and in a form approved by the Secretary.

Claim may be withdrawn

665H.(1) A claimant for an education entry payment under this Division or a person on behalf of a claimant may withdraw a claim that has not been determined.

(2) A claim that is withdrawn is taken to have not been made.

(3) A withdrawal may be made orally or in writing..

Insertion of new Divisions

40. The Principal Act is amended by adding at the end of Part 2.13A the following Divisions:

Division 3Widow B pension recipients

Payment to widow B pensioner

6651. A woman is qualified for an education entry payment under this section if:

(a)     the woman is receiving a widow B pension; and

(b)     the woman is qualified to receive pensioner education supplement under the AUSTUDY scheme; and

(c)     either:

(i) the Secretary is satisfied that the woman intends to enrol in a full-time or part-time course of education that is an approved course under the AUSTUDY scheme; or

(ii) the woman is enrolled in such a course; and

(d) the woman has not received a payment under this Part for which she made a claim in the current calendar year.

Amount of section 665I payment

665J. The amount of an education entry payment under section 665I is $200.

Need for a claim

665K. A woman is not qualified for an education entry payment under section 665I unless:

(a)     the woman makes a claim for the payment; and

(b)     the claim is in writing and in a form approved by the Secretary.

Claim may be withdrawn

665L.(1) A claimant for an education entry payment under this Division or a person on behalf of a claimant may withdraw a claim that has not been determined.

(2) A claim that is withdrawn is taken to have not been made.

(3) A withdrawal may be made orally or in writing.

Division 4Special benefit recipients

Payment to a special benefit recipient

665M. A person is qualified for an education entry payment under this section if:

(a)     the person would be qualified for a sole parent pension apart from paragraph 249(1)(c) and subsection 262(1) (Australian residency requirements); and

(b)     the person is receiving special benefit; and

(c)     the person is qualified to receive pensioner education supplement under the AUSTUDY scheme; and

(d)     either:

(i) the Secretary is satisfied that the person intends to enrol in a full-time or part-time course of education that is an approved course under the AUSTUDY scheme; or

(ii) the person is enrolled in such a course; and

(e) the person has not received a payment under this Part for which he or she made a claim in the current calendar year.

Amount of section 665M payment

665N. The amount of an education entry payment under section 665M is $200.

Need for a claim

6650. A person is not qualified for an education entry payment under section 665M unless:

(a)     the person makes a claim for the payment; and

(b)     the claim is in writing and in a form approved by the Secretary.

Claim may be withdrawn

665P.(1) A claimant for an education entry payment under this Division or a person on behalf of a claimant may withdraw a claim that has not been determined.

(2) A claim that is withdrawn is taken to have not been made.

(3) A withdrawal may be made orally or in writing..

Division 8Rent assistance

Pension Rate Calculator A

41. The Rate Calculator in section 1064 of the Principal Act is amended:

(a) by omitting paragraph 1064-D1(d) and substituting the following paragraph:

(d) the rent is payable at a rate of more than the rent threshold rate; and;

(b) by omitting paragraph 1064-D1(f) and substituting the following word and paragraph:

; and (f) either:

(i) neither the person nor the persons partner is qualified for additional family payment for a dependent child of the person; or

(ii) the person is a member of an illness separated or respite care couple or a temporarily separated couple and is the partner of a person who is receiving additional family payment.;

(c) by adding at the end of point 1064-D1 the following Note:

Note 2: for temporarily separated couple, illness separated couple and respite care couple see section 4.;

(d) by adding at the end of point 1064-D1 the following Note:

Note 3: for rent threshold rate see point 1064-D2.;

(e) by inserting after point 1064-D1 the following point:

Rent threshold rate

1064-D2. A persons rent threshold rate depends on the persons family situation. Work out which family situation in Table DA applies to the person. The rent threshold rate is the corresponding amount in column 3.

TABLE DA

RENT THRESHOLD RATES

column 1

column 2

column 3

column 4

item

persons family situation

rate per year

rate per fortnight

1.

Not member of a couple

$1,560.00

$60.00

2.

Partnered—partner does not have rent increased pension

$2,600.00

$100.00

3.

Partnered and partner:

$2,600.00

$100.00

 

(a) is receiving a social security pension; and

 

 

 

(b) has rent increased pension

Partnered and partner:

 

 

4.

$2,600.00

$100.00

 

(a) is receiving a service pension; and

 

 

 

(b) has rent increased pension; and

 

 

 

(c) does not have a dependent child or dependent children

 

 

5.

Partnered and partner:

$3,120.00

$120.00

 

(a) is receiving a service pension; and

 

 

 

(b) has rent increased pension; and

(c) has 1 or 2 dependent children

 

 

6.

Partnered and partner:

$3,120.00

$120.00

 

(a) is receiving a service pension; and

 

 

 

(b) has rent increased pension; and

 

 

 

(c) has 3 or more dependent children

 

 

7.

Member of an illness separated or respite care couple

$1,560.00

$60.00

8.

Member of a temporarily separated couple

$1,560.00

$60.00

Note 1: for member of a couple, partnered, illness separated couple, respite care couple and temporarily separated couple see section 4.

Note 2: for partner with a rent increase pension see point 1064-D4.

Note 3: the column 3 amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(f) by omitting Table D (but not the Notes to the table) in point 1064-D5 and substituting the following table:

 

 

 

TABLE D

RATE OF RENT ASSISTANCE

column 1

column 2

column 3

column 4

item

family situation

Rate A

Rate B

1.

Not member of a couple

3 × (Annual rent $1.560)

$1,638.00

 

 

4

 

2.

Partnered—partner does not have rent increased pension

3 × (Annual rent $2,600)

$1,638.00

 

4

 

3.

Partnered and partner:

3 × (Annual rent $2.600)

$819.00

 

(a) is receiving a social security pension; and

8

 

 

(b) has rent increased pension Partnered and partner:

 

 

4.

3 × (Annual rent $2,600)

$819.00

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

 

 

(c) does not have a dependent child or dependent children

 

 

5.

Partnered and partner:

3 × (Annual rent $3,120)

$956.80

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

 

 

(c) has 1 or 2 dependent children artnered and partner:

 

 

6.

3 × (Annual rent $3,120)

$1,092.00

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

 

 

(c) has 3 or more dependent children

 

 

7.

Member of an illness separated or respite care couple

3 × (Annual rent $1.560)

$1,638.00

 

4

 

8.

Member of a temporarily separated couple

3 × (Annual rent $1.560)

$1,638.00

 

4

 

 

 

 

;

(g) by inserting after Note 3 to point 1064-D5 the following Note:

Note 4: the rent threshold amounts in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(h) by renumbering Note 4 to point 1064-D5 as Note 5;

(i) by inserting after point 1064-D5 the following point:

Rate B increase

1064-D5A. Rate B for a person in item 1 or 7 of Table D in point 1064-D5 is increased by $104.00 on 25 March 1993.

Note: Rate B was indexed on 20 March 1993 (see sections 1191 to 1194).;

(j) by omitting from point 1064-D8 the Rent Assistance Examples.

Pension Rate Calculator B

42. The Rate Calculator in section 1065 of the Principal Act is amended by omitting paragraph 1065-D1(d) and substituting the following paragraph:

(d) the rent is payable at a rate of more than the rent threshold rate in point 1064-D2 of Module D of Pension Rate Calculator A; and.

Pension Rate Calculator C

43. The Rate Calculator in section 1066 of the Principal Act is amended:

(a)     by omitting from paragraph 1066-D1(c) $1,300 per year ($50 per fortnight) and substituting $1,560 per year ($60 per fortnight);

(b)    by adding at the end of point 1066-D1 the following Note:

Note 2: the amount in paragraph (c) is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(c) by omitting Table D (but not the Notes to the table) in point 1066-D4 and substituting the following table:

 

 

 

TABLE D

RATE OF RENT ASSISTANCE

column 1

column 2

Rate A

Rate B

3 × (Annual rent $1,560)

$1,638.00

4

 

(d) by inserting after Note 1 to point 1066-D4 the following Note:

Note 2: the amount in column 1 is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(e)     by renumbering Note 2 as Note 3;

(f)      by inserting after point 1066-D4 the following point:

Rate B increase

1066-D4A. Rate B for a person in Table D in point 1066-D4 is increased by $104.00 on 25 March 1993.

Note: Rate B was indexed on 20 March 1993 (see sections 1191 to 1194)..

Pension Rate Calculator D

44. The Rate Calculator in section 1066A of the Principal Act is amended:

(a) by omitting paragraph 1066A-EA(2)(f) and substituting the following paragraph:

(f) the rent is payable at a rate of more than the rent threshold rate; and;

(b) by adding at the end the following Note:

Note 5: for rent threshold rate see point 1066A-EA2A.;

(c) by inserting after point 1066A-EA2 the following point:

Rent threshold rate

1066A-EA2A. A persons rent threshold rate depends on the persons family situation. Work out which family situation in Table EAA applies to the person. The rent threshold rate is the corresponding amount in column 3.

TABLE EAA

RENT THRESHOLD RATES

column 1

column 2

column 3

column 4

item

persons family situation

rate per year

rate per fortnight

1.

Not member of a couple and in disability accommodation

$1,560.00

$60.00

2.

Partnered—partner does not have rent increased pension

$2,600.00

$100.00

3.

Partnered and partner:

$2,600.00

$100.00

 

(a) is receiving a social security pension; and

 

 

 

(b) has rent increased pension

 

 

4.

Partnered and partner:

$2,600.00

$100.00

 

(a) is receiving a service pension; and

 

 

 

(b) has rent increased pension; and

 

 

 

(c) does not have a dependent child or dependent children

 

 

5.

Partnered and partner:

$3,120.00

$120.00

 

(a) is receiving a service pension; and

 

 

 

(b) has increased pension; and

 

 

 

(c) has 1 or 2 dependent children

 

 

6.

Partnered and partner:

$3,120.00

$120.00

 

(a) is receiving a service pension; and

 

 

 

(b) has rent increased pension; and

 

 

 

(c) has 3 or more dependent children

 

 

7.

Member of an illness separated or respite care couple

$1,560.00

$60.00

8.

Member of a temporarily separated couple

$1,560.00

$60.00

Note 1 : for member of a couple, partnered, illness separated couple, respite care couple and temporarily separated couple see section 4.

Note 2: for partner with a rent increase pension see point 1066A-EA11.

Note 3: for in disability accommodation see subsection 23(4C).

Note 4: the column 3 amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(d) by omitting Table EA (but not the Notes to the table) in point 1066A-EA12 and substituting the following table:

TABLE EA

RATE OF REENT ASSISTANCE

column 1

column 2

column 3

column 4

item

family situation

Rate A

Rate B

1.

Not member of a couple and in disability accommodation

3 × (Annual rent S 1,560)

$1,638.00

 

4

 

2.

Partnered—partner does not have rent increased pension

3 × (Annual rent $2,600)

$1,638.00

 

4

 

3.

Partnered and partner:

3 × (Annual rent $2,600)

$819.00

 

(a) is receiving a social security pension; and

8

 

 

(b) has rent increased pension

 

 

4.

Partnered and partner:

3 × (Annual rent $2,600)

$819.00

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

 

 

(c) does not have a dependent child or dependent children

 

 

5.

Partnered and partner:

3 × (Annual rent $3,120)

$956.80

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

 

 

(c) has 1 or 2 dependent children

 

 

6.

Partnered and partner:

3 × (Annual rent $3,120)

$1,092.00

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

 

 

(c) has 3 or more dependent children

 

 

7.

Member of an illness separated or respite care couple

3 × (Annual rent $1,560)

$1,638.00

 

4

 

8.

Member of a temporarily separated couple

3 × (Annual rent $1,560)

$1,638.00

 

4

 

 

 

 

”;

(e) by inserting after Note 3 to point 1066A-EA12 the following Note:

Note 4: the rent threshold amounts in columns 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).’”

(f) by renumbering Note 4 to point 1066A-EA12 as Note 5;

(g) by inserting after point 1066A-EA12 the following point:

Rate B increase

1066A-EA12A. Rate B for a person in item 1 or 7 of Table EA in point 1066A-EA12 is increased by $104.00 on 25 March 1993.

Note: Rate B was indexed on 20 March 1993 (see sections 1191 to 1194).;

(h) by omitting paragraph 1066A-EB2(g) and substituting the following paragraph:

(g) the rent is payable at a rate of more than the rent threshold rate; and;

(i) by adding at the end of point 1066A-EB2 the following Note:

Note 5: for rent threshold rate see point 1066A-EAB2A.;

(j) by inserting after point 1066A-EB2 the following point:

Rent threshold rate

1066A-EB2A. A persons rent threshold rate depends on the persons family situation. Work out which family situation in Table EBA applies to the person. The rent threshold rate is the corresponding amount in column 3.

TABLE EBA

RENT THRESHOLD RATES

column 1

column 2

column 3

column 4

item

persons family situation

rate per year

rate per fortnight

1.

Not member of a couple and in disability accommodation

$1,560.00

$60.00

2.

Not member of a couple and living permanently or indefinitely away from the persons parental home

$1,560.00

$60.00

3.

Partnered—partner does not have rent increased pension

$2,600.00

$100.00

4.

Partnered and partner:

$2,600.00

$100.00

 

(a) is receiving a social security pension; and

 

 

 

(b) has rent increased pension

 

 

5.

Partnered and partner:

$2,600.00

$100.00

 

(a) is receiving a service pension; and

 

 

 

(b) has rent increased pension; and

 

 

 

(c) does not have a dependent child or dependent children

 

 

6.

Partnered and partner:

$3,120.00

$120.00

 

(a) is receiving a service pension; and

 

 

 

(b) has rent increased pension; and

 

 

 

(c) has 1 or 2 dependent children

 

 

7.

Partnered and partner:

$3,120:00

$120.00

 

(a) is receiving a service pension; and

 

 

 

(b) has rent in increased pension; and

 

 

 

(c) has 3 or more dependent children

 

 

8.

Member of an illness separated or respite care couple

$1,560.00

$60.00

9.

Member of a temporarily separated couple

$1,560.00

$60.00

Note 1: for member of a couple, partnered, illness separated couple, respite care couple and temporarily separated couple see section 4.

Note 2: for partner with a rent increase pension see point 1066A-EB12.

Note 3: for in disability accommodation see subsection 25(4C).

Note 4: for living away from parental home see subsection 23(4D).

Note 5: the column 3 amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).’”

(k) by omitting Table EB (but not the Notes to the table) in point 1066A-EB13 and substituting the following table:

 

 

 

TABLE EB

RATE OF RENT ASSISTANCE

column 1

column 2

column 3

column 4

item

family situation

Rate A

Rate B

1.

Not member of a couple and in disability accommodation

3 × (Annual rent $1,560)

$1,638.00

 

4

 

2.

Not member of a couple and living permanently or indefinitely away from the person’s parental home

3 × (Annual rent $1,560)

$1,638.00

 

4

 

3.

Partnered—partner does not have rent increased pension

3 × (Annual rent $2,600)

$1,638.00

 

4

 

4.

Partnered and partner:

3 × (Annual rent $2,600)

$819.00

 

(a) is receiving a social security pension; and

8

 

 

(b) has rent increased pension

 

 

5.

Partnered and partner:

3 × (Annual rent $2,600)

$819.00

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

 

 

(c) does not have a dependent child or dependent children

 

 

6.

Partnered and partner:

3 × (Annual rent $3,120)

$956.80

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

.

 

(c) has 1 or 2 dependent children

 

 

7.

Partnered and partner:

3 × (Annual rent $3,120)

$1,092.00

 

(a) is receiving a service pension; and

8

 

 

(b) has rent increased pension; and

 

 

 

(c) has 3 or more dependent children

 

 

8.

Member of an illness separated or respite care couple

3 × (Annual rent $1,560)

$1,638.00

 

4

 

9.

Member of a temporarily separated couple

3 × (Annual rent $1,560)

4

$1,638.00

 

 

 

(l) by inserting after Note 4 to point 1066A-EB13 the following Note:

Note 5: the rent threshold amounts in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(m) by renumbering Note 5 to point 1066A-EB13 as Note 6;

(n) by inserting after point 1066A-EB13 the following point:

Rate B increase

1066A-EB13A. Rate B for a person in item 1, 2 or 8 of Table EB in point 1066A-EB13 is increased by $104.00 on 25 March 1993.

Note: Rate B was indexed on 20 March 1993 (see sections 1191 to 1194)..

Pension Rate Calculator E

45. The Rate Calculator in section 1066B of the Principal Act is amended:

(a) by omitting paragraph 1066B-EA2(f) and substituting the following paragraph:

(f) the rent is payable at a rate of more than the rent threshold rate in point 1066A-EA2A of Module EA of Pension Rate Calculator D; and;

(b) by omitting paragraph 1066B-EB2(g) and substituting the following paragraph:

(g) the rent is payable at a rate of more than the rent threshold rate in point 1066A-EB2A of Module EB of Pension Rate Calculator D; and.

Benefit Rate Calculator A

46. The Rate Calculator in section 1067 of the Principal Act is amended:

(a) by omitting paragraph 1067-F1(e) and substituting the following paragraph:

(e) the rent is payable at a rate of more than the rent threshold rate; and;

(b) by adding at the end of point 1067-F1 the following Note:

Note 5: for rent threshold rate see point 1067-F1A.;

(c) by inserting after point 1067-F1 the following point:

Rent threshold rate

1067-F1A. A persons rate threshold rate depends on the persons family situation. Work out which family situation in Table FA applies to the person. The rent threshold rate is the corresponding amount in column 3.

TABLE FA

RENT THRESHOLD RATES

column 1

column 2

column 3

item

persons family situation

rate per fortnight

1.

Partnered—partner does not have rent increased benefit

$100.00

2.

Partnered—partner has rent increased benefit

$100.00

3.

Partnered—member of illness separated or respite care couple where persons rate is increased for partner under Module C

$120.00

4.

Partnered—member of illness separated or respite care couple where persons rate is not increased for partner under Module C and partner is getting neither pension nor benefit

$60.00

5.

Partnered—member of temporarily separated couple where persons rate is increased for partner under Module C

$120.00

6.

Partnered—member of temporarily separated couple where persons rate is not increased for partner under Module C and partner is getting neither pension nor benefit

$60.00

Note 1: for member of couple, illness separated couple, respite care couple, temporarily illness separated couple and partnered see section 4.

Note 2: for partner with rent increased benefit see point 1067-F12.

Note 3: the column 3 amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(d) by omitting Table F (but not the Notes to the Table) in point 1067-F13 and substituting the following table:

 

 

 

TABLE F

RATE OF RENT ASSISTANCE

column 1

column 2

column 3

column 4

item

persons family situation

Rate A

Rate B

1.

Partnered—partner does not have rent increased benefit

3 × (fortnightly rent $100)

$63.00

 

4

 

2.

Partnered—partner has rent increased benefit

3 × (fortnightly rent $100)

$31.50

 

8

 

3.

Partnered—member of illness separated or respite care couple where person’s rate is increased for partner under Module C

3 × (fortnightly rent $120)

$126.00

 

2

 

4.

Partnered—member of illness separated or respite care couple where person’s rate is not increased for partner under Module C and partner is getting neither pension nor benefit

3 × (fortnightly rent $60)

$63.00

 

4

 

5.

Partnered—member of temporarily separated couple where person’s rate is increased for partner under Module C

3 × (fortnightly rent $120)

$126.00

 

2

 

6.

Partnered—member of temporarily separated couple where person’s rate is not increased for partner under Module C and partner is getting neither pension nor benefit

3 × (fortnightly rent $60)

$63.00

 

4

 

 

 

 

;

(e)     by inserting in Note 1 to point 1067-F13 , respite care couple, temporarily separated couple after illness separated couple;

(f)     by inserting after Note 2 to point 1067-F13 the following Note:

Note 3: the rent threshold amounts in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(g) by renumbering Note 3 to point 1067-F13 as Note 4;

(h) by inserting after point 1067-F13 the following point:

Rate B increase

1067-F13A. Rate B for a person in item 3 or 4 of Table F in point 1067-F13 is increased by $4.00 on and from 20 March 1993, immediately after the indexation of that rate on that day.

Note: for indexation of Rate B see sections 1191 to 1194..

Benefit Rate Calculator B

47. The Rate Calculator in section 1068 of the Principal Act is amended:

(a) by omitting paragraph 1068-F1(c) and substituting the following paragraph:

(c) the rent is payable at a rate of more than the rent threshold rate; and;

(b) by adding at the end of point 1068-F1 the following Note:

Note 5: for rent threshold rate see point 1068-F1A.;

(c) by inserting after point 1068-F1 the following point:

Rent threshold rate

1068-F1A. A persons rate threshold rate depends on the persons family situation. Work out which family situation in Table FA applies to the person. The rent threshold rate is the corresponding amount in column 3.

TABLE FA

RENT THRESHOLD RATES

column 1

column 2

column 3

item

persons family situation

rate per fortnight

1.

Not member of a couple

$60.00

2.

Partnered—partner does not have rent increased benefit

$100.00

3.

Partnered—partner has rent increased benefit

$100.00

4.

Partnered—member of illness separated or respite care couple where persons rate is increased for partner under Module C

$120.00

5.

Partnered—member of illness separated or respite care couple where persons rate is not increased for partner under Module C and partner is getting neither pension nor benefit

$60.00

6.

Partnered—member of temporarily separated couple where persons rate is increased for partner under Module C

$120.00

7.

Partnered—member of temporarily separated couple where persons rate is not increased for partner under Module C and partner is getting neither pension nor benefit

$60.00

Note 1 : for member of couple, illness separated couple, respite care couple, temporarily illness separated couple and partnered see section 4.

Note 2: for partner with rent increased benefit see point 1068-F14.

Note 3: the column 3 amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(d) by omitting Table F (but not the Notes to the table) in point 1068-F15 and substituting the following table:

 

 

 

 

TABLE F

RATE OF RENT ASSISTANCE

column 1

column 2

column 3

column 4

item

persons family situation

Rate A

Rate B

1.

Not member of a couple

3 × (fortnightly rent $60)

$63.00

 

4

 

2.

Partnered—partner does not have rent increased benefit

3 × (fortnightly rent $100)

$63.00

 

4

 

3

Partnered—partner has rent increased benefit

3 × (fortnightly rent $100)

$31.50

 

8

 

4.

Partnered—member of illness separated or respite care couple where person’s rate is increased for partner under Module C

3 × (fortnightly rent $120)

$126.00

 

2

 

5.

Partnered—member of illness separated or respite care couple where person’s rate is not increased for partner under Module C and partner is getting neither pension nor benefit

3 × (fortnightly rent $60)

$63.00

 

4

 

6.

Partnered—member of temporarily separated couple where person’s rate is increased for partner under Module C

3 × (fortnightly rent $120)

$126.00

 

2

 

7.

Partnered—member of temporarily separated couple where person’s rate is not increased for partner under Module C and partner is getting neither pension nor benefit

3 × (fortnightly rent $60)

$63.00

 

4

 

 

 

 

;

(e) by inserting in Note 1 to point 1068-F15 , respite care couple, temporarily separated couple after illness separated couple;

(f) by inserting after Note 2 to point 1068-F15 the following Note:

Note 3: the rent threshold amounts in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).’”

(g) by renumbering Note 3 to point 1068-F15 as Note 4;

(h) by inserting after point 1068-F15 the following point:

Rate B increase

1068-F15A. Rate B for a person in item 1, 4 or 5 of Table F in point 1068-F15 is increased by $104.00 on and from 20 March 1993, immediately after the indexation of that rate on that day.

Note: for indexation of Rate B see sections 1191 to 1194..

Rate of family payment

48. Section 1069 of the Principal Act is amended in the Family Payment Rate Calculator:

(a) by omitting paragraph 1069-F1(c) and substituting the following paragraph:

(c) the rent is payable at a rate of more than:

(i) if the person is not a member of a couple—$80

per fortnight; or

(ii) if the person is a member of a couple (other than an illness separated or respite care couple or a temporarily separated couple)—$120 per fortnight; or

(iii) if the person is a member of an illness separated or respite care couple or a temporarily separated couple—$80 per fortnight; and;

(b) by omitting Note 2 to point 1069-F1 and substituting the following Notes:

Note 2: for temporarily separated couple, illness separated couple and respite care couple see section 4.

Note 3: for incentive allowance see subsection 23(1).

Note 4: the amounts in subparagraphs (c)(i), (ii) and (iii) are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).;

(c) by omitting point 1069-F4 and Table F and substituting the following point and table:

Rate of rent assistance

1069-F4. The rate of rent assistance is worked out using Table F. Work out the persons family situation and calculate Rate A for the person using the corresponding formula in column 3. This will be the persons rate of rent assistance but only up to the persons maximum rent assistance rate. The persons maximum rent assistance rate is Rate B worked out using column 4.

TABLE F

RATE OF RENT ASSISTANCE

column 1

column 2

column 3

column 4

item

family situation

Rate A

Rate B

 

 

 

column 4A

column 4B

 

 

 

1 or 2 AFP children

3 or more AFP children

1.

Not member of a couple

3 × (fortnightly rent $80)

$73.60

$84

 

 

4

 

 

2.

Member of a couple (other than illness separated or respite care couple or temporarily separated couple)

3 × (fortnightly rent $120)

$73.60

$84

 

4

 

 

3.

Member of an illness separated or respite care couple or temporarily separated couple

3 × (fortnightly rent $80)

$73.60

$84

 

4

 

 

Note 1: the Rate A and Rate B amounts are indexed 6 monthly in line with CPI increases: see sections 1191 to 1194.

Note 2: for AFP child see point 1069-D2.

Note 3: for temporarily separated couple, illness separated couple and respite care couple see section 4..

Indexed and adjusted amounts

49. Section 1190 of the Principal Act is amended:

(a) by inserting after item 17 of the table in the following item:

 

 

 

17A.

Rent threshold rate for social security pension

pension rate threshold

[Pension Rate Calculator A— point 1064-D2—Table DA— column 3—all amounts]

 

 

 

[Pension Rate Calculator A— point 1064-D5—Table D— column 3—rent threshold amounts]

 

 

 

[Pension Rate Calculator C— paragraph 1066-D1(c)]

 

 

 

[Pension Rate Calculator C— point 1066-D4—Table D— column 1—rent threshold amount]

 

 

 

[Pension Rate Calculator D— point 1066 A-EA2A—Table EAA—column 3—all amounts]

 

 

 

[Pension Rate Calculator D— point 1066A-EA12—Table EA—column 3—rent threshold amounts]

 

 

 

[Pension Rate Calculator D— point 1066A-EB2A—Table EBA—column 3—all amounts]

 

 

 

[Pension Rate Calculator D— point 1066A-EB13—Table EB— column 3—rent threshold amounts]

 

 

 

;

(b) by inserting after item 18 of the table the following item:

 

 

 

18A.

Rent threshold rate for social security benefit

benefit rent threshold

[Benefit Rate Calculator A— point 1067-F1A—Table FA— column 3—all amounts]

 

 

 

[Benefit Rate Calculator A— point 1067-F13—Table F— column 3—rent threshold amounts]

 

 

 

[Benefit Rate Calculator B— point 1068-F1A—Table FA— column 3—all amounts]

 

 

 

[Benefit Rate Calculator B— point 1068-F15—Table F— column 3—rent threshold amounts]

 

 

 

;

(c) by omitting column 4 of item 19 of the table and substituting the following column:

[Family Payment Rate Calculator—Module F— Table F—columns 3 and 4—all amounts]

 

 

 

;

(d) by inserting after item 19 of the table the following item:

 

 

 

 

 

 

 

19A.

Rent threshold rate for family payment

family payment rent threshold

[Family Payment Rate Calculator—subparagraphs 1069-F1(c)(i), (ii) and (iii)]

 

 

 

 

 

 

.

CPI Indexation table

50. Section 1191 of the Principal Act is amended:

(a) by inserting after item 11 of the table in subsection (1) the following item:

 

 

 

 

 

11A.

pension

rent threshold

(a) 20 March

(a) December

highest June or December quarter before reference quarter (but not earlier than June quarter 1979)

$5.20

 

(b) 20 September

(b) June

 

 

 

 

 

 

;

(b) by inserting after item 12 of the table in subsection (1) the following item:

 

 

 

 

 

12A.

benefit rent threshold

(a) 20 March

(a) December

highest June or December quarter before reference quarter (but not earlier than June quarter 1979)

$0.20

 

(b) 20 September

(b) June

 

 

 

 

 

 

;

(c) by inserting after item 13 of the table in subsection (1) the following item:

 

 

 

 

 

13A.

family payment rent threshold

(a) 20 March

(a) December

highest June or December quarter before reference quarter (but not earlier than June quarter 1979)

$0.20

 

(b) 20 September

(b) June

 

 

 

 

 

 

.

Schedule 1A

51. Schedule 1A of the Principal Act is amended by adding at the end the following clause:

Rent assistance (changes introduced on 20 March 1993)

63.(1) This clause applies to a person if:

(a) immediately before 20 March 1993:

(i) the person was receiving a social security pension, a social security benefit or additional family payment; and

(ii) the persons pension, benefit or payment rate included an amount by way of rent assistance; and

(b) this subclause has continued to apply to the person.

(2) If:

(a)     a decision is made on or after 20 March 1993 that a person is entitled to rent assistance in respect of a period; and

(b)     the period starts before 20 March 1993; and

(c)     the period continued until at least 19 March 1993;

the person is taken, for the purposes of this clause, to have been receiving rent assistance under this Act immediately before 20 March 1993.

(3) This clause applies to a person if:

(a)     immediately before 20 March 1993, the person was receiving rent assistance under or because of the Veterans Entitlement Act; and

(b)     after that date, the person becomes entitled to be paid a social security pension, a social security benefit or additional family payment; and

(c)     this subclause has continued to apply to the person.

(4) Subject to subclauses (7), (8) and (9), if subclause (1) or (3) applies to a person, the amount by way of rent assistance to be used to calculate the persons pension, benefit or payment rate is the amount by way of rent assistance that would be included in the persons pension, benefit or payment rate if:

(a)     the persons pension, benefit or payment rate were neither income reduced nor assets reduced; and

(b)     the amount by way of rent assistance were calculated under this Act as in force immediately before 20 March 1993 (the floor amount).

(5) Subject to subclause (6), subclause (1) or (3) ceases to apply to a person if:

(a)     the person ceases to receive a social security pension, social security benefit or additional family payment; or

(b)     the person ceases to be qualified for rent assistance; or

(c)     the Secretary considers that there is a significant change in the persons circumstances that would affect the amount of rent assistance that is payable to the person apart from this clause; or

(d)     the amount of rent assistance that would be payable to the person if this clause applied is less than (or equal to) the amount of rent assistance that would otherwise be payable.

(6) If:

(a)     subclause (1) or (3) ceases to apply to a person; and

(b)     within 42 days, or such longer period as the Secretary determines, of that subclause ceasing to apply to the person, there is a change in the persons circumstances; and

(c)     the Secretary considers that the change in the persons circumstances is so significant that subclause (1) or (3) should apply to the person;

the Secretary may determine that subclause (1) or (3) is to apply to the person from a specified date.

(7) If:

(a)     subclause (1) or (3) applies to a person; and

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

(c)     the persons partner is a person to whom subclause (1) or (3) applies;

the amount by way of rent assistance to be used to calculate the persons pension, benefit or payment rate and the amount by way of rent assistance to be used to calculate the persons partners pension, benefit or payment rate is not to fall below one-half of the persons floor amount or one-half of the persons partners floor amount, whichever is the greater.

(8) If:

(a)     subclause (1) or (3) applies to a person; and

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

(c)     the persons partner is a person to whom section 111 of the Veterans Affairs Legislation Amendment Act (No. 2) 1992 applies;

the amount by way of rent assistance to be used to calculate the persons pension, benefit or payment rate and the amount by way of rent assistance to be used to calculate the rate of the persons partners pension under the Veterans Entitlements Act 1986 is not to fall below one-half of the persons floor amount or one-half of the persons partners floor amount, whichever is the greater.

(9) If:

(a)     subclause (1) or (3) applies to a person; and

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

(c)     the persons partner is not a person to whom subclause (1) or (3) applies; and

(d)     the persons partner is not a person to whom section 111 of the Veterans Affairs Legislation Amendment Act (No. 2) 1992 applies; and

(e)     the persons partner is a person who is receiving a pension, benefit or additional family payment or a pension under Part III of the Veterans Entitlements Act 1986;

the amount by way of rent assistance to be used to calculate the persons pension, benefit or additional family payment rate and the amount by way of rent assistance to be used to calculate the rate of the persons partners pension, benefit or additional family payment or of the persons partners pension under Part III of that Act is not to fall below the persons floor amount..

Division 9Pension and benefit rate increases

Pension Rate Calculator A

52. The Rate Calculator in section 1064 of the Principal Act is amended by omitting Table B in point 1064-B1 and substituting the following table:

 

 

 

 

 

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

column 4

item

person’s family situation

rate per year

rate per fortnight

 

1.

Not member of a couple

$8,114.60

$312.10

 

2.

Partnered

$6,767.80

$260.30

 

3.

Member of an illness separated or respite care couple

$8,114.60

$312.10

 

 

 

 

 

Pension Rate Calculator B

53. The Rate Calculator in section 1065 of the Principal Act is amended by omitting Table B in point 1065-B1 and substituting the following table:

 

 

 

 

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

column 4

item

person’s family situation

rate per year

rate per fortnight

1.

Not member of a couple

$8,114.60

$312.10

2.

Partnered

$6,767.80

$260.30

3.

Member of an illness separated or respite care couple

$8,114.60

$312.10

Pension Rate Calculator C

54. The Rate Calculator in section 1066 of the Principal Act is amended by:

(a)     by omitting from point 1066-B1 $7,841.60 and substituting $8,114.60;

(b)    by omitting from point 1066-B1 $301.60 and substituting $312.10.

Pension Rate Calculator D

55. The Rate Calculator in section 1066A of the Principal Act is amended by omitting Table B in point 1066A-B1 and substituting the following table:

 

 

 

 

 

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

column 4

 

 

rate per year

rate per fortnight

item

persons family situation

column 3A person with dependent child

column 3B person without dependent child

column 4A person with dependent child

column 4B person without dependent child

1.

Not member of a couple and person:

$8,114.60

$3,374.80

$312.10

$129.80

 

(a) has not turned 18; and

 

 

 

 

 

(b) is not a homeless person; and

 

 

 

 

 

(c) is not an independent young person; and

 

 

 

 

 

(d) is not living away from the persons parental home because of medical condition of the person

 

 

 

 

2.

Not member of a couple and person:

$8,114.60

$5,571.80

$312.10

$214.30

 

(a) has not turned 18; and

 

 

 

 

 

(b) is:

 

 

 

 

 

(i) a homeless person; or

 

 

 

 

 

(ii) an independent young person; or

 

 

 

 

 

(iii) is not living away from the persons parental home because of medical condition of the person

 

 

 

 

3.

Not member of a couple and person:

$8,114.60

$4,058.60

$312.10

$156.10

 

(a) has turned 18; and

 

 

 

 

 

(b) is living at a home of parent or parents

 

 

 

 

4.

Not member of a couple and person:

$8,114.60

$6,162.00

$312.10

$237.00

 

(a) has turned 18; and

 

 

 

 

 

(b) is not living at a home of parent or parents

 

 

 

 

5.

Partnered and person has not turned 18

$6,767.80

$5,571.80

$260.30

$214.30

6.

Partnered and person has turned 18

$6,767.80

$6,162.00

$260.30

$237.00

7.

Member of illness separated couple and person has not turned 18

$8,114.60

$5,571.80

$312.10

$214.30

8.

Member of illness separated couple and person has turned 18

$8,114.60

$6,162.00

$312.10

$237.00

 

 

 

 

 

Pension Rate Calculator E

56. The Rate Calculator in section 1066B of the Principal Act is amended by omitting Table B in point 1066B-B1 and substituting the following table:

 

 

 

 

 

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

column 4

 

 

rate per year

rate per fortnight

 

 

column 3A

column 3B

column 4A

column 4B

item

persons family situation

person with dependent child

person without dependent child

person with dependent child

person without dependent child

1.

Not member of a couple and person:

$8,114.60

$3,374.80

$312.10

$129.80

 

(a) has not turned 18; and

 

 

 

 

 

(b) is not a homeless person; and

 

 

 

 

 

(c) is not an independent young person; and

 

 

 

 

 

(d) is not living away from the persons parental home because of medical condition of the person

 

 

 

 

2.

Not member of a couple and person:

$8,114.60

$5,571.80

$312.10

$214.30

 

(a) has not turned 18; and

 

 

 

 

 

(b) is:

 

 

 

 

 

(i) a homeless person; or

 

 

 

 

 

(ii) an

independent young person; or

 

 

 

 

 

(iii) is not living away from the persons parental home because of medical condition of the person

 

 

 

 

3.

Not member of a couple and person:

$8,114.60

$4,058.60

$312.10

$156.10

 

(a) has turned 18; and

 

 

 

 

 

(b) is living at a home of parent or parents

 

 

 

 

4.

Not member of a couple and person:

$8,114.60

$6,162.00

$312.10

$237.00

 

(a) has turned 18; and

 

 

 

 

 

(b) is not living at a home of parent or parents

 

 

 

 

5.

Partnered and person has not turned 18

$6,767.80

$5,571.80

$260.30

$214.30

6.

Partnered and person has turned 18

$6,767.80

$6,162.00

$260.30

$237.00

7.

Member of illness separated couple and person has not turned 18

$8,114.60

$5,571.80

$312.10

$214.30

8.

Member of illness separated couple and person has turned 18

$8,114.60

$6,162.00

$312.10

$237.00

 

 

 

 

 

Benefit Rate Calculator A

57. The Rate Calculator in section 1067 of the Principal Act is amended by omitting Table B in point 1067-B1 and substituting the following table:

 

 

 

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

item

persons family situation

rate

 

 

column 3A

column 3B

 

 

person with dependent child

person without dependent child

1.

Not member of a couple and person is:

$312.10

$129.80

 

(a) not a homeless person; and

 

 

 

(b) not an independent young person; and

 

 

 

(c) not a person who is in substitute care

 

 

2.

Not member of a couple and person is:

$312.10

$214.30

 

(a) a homeless person; and

 

 

 

(b) an independent young person; and

 

 

 

(c) a person who is in substitute care

 

 

3.

Partnered

$260.30

$214.30

4.

Member of an illness separated couple

$312.10

$214.30

 

 

 

.

Benefit Rate Calculator B

58. The Rate Calculator in section 1068 of the Principal Act is amended by omitting Table B in point 1068-B1 and substituting the following table:

 

 

 

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

item

persons family situation

rate

 

 

column 3A

column 3B

 

 

person with dependent child

person without dependent child

1.

Not member of a couple and person:

$312.10

$237.00

 

(a) has turned 18 but not 21; and

 

 

 

(b) is living at a home of parent or parents

 

 

2.

Not member of a couple and person:

$312.10

$156.10

 

(a) has turned 18 but not 21; and

 

 

 

(b) is not living at a home of parent or parents

 

 

3.

Not a member of a couple and person has turned 21 but has not turned 60

$312.10

$281.90

4.

Not member of a couple and person:

$312.10

$281.90

 

(a) has turned 60; and

 

 

 

(b) has not been receiving social security benefit continuously for at least 6 months

 

 

5.

Not member of a couple and person:

$312.10

$312.10

 

(a) has turned 60; and

 

 

 

(b) has been receiving social security benefit continuously for at least 6 months

 

 

6.

Partnered and person has turned 18 but not 21

$260.30

$237.00

7.

Partnered and person has turned 21

$260.30

$260.30

8.

Member of illness separated couple and person has turned 18 but not 21

$312.10

$237.00

9.

Member of illness separated couple and person has turned 21

$312.10

$312.10

 

 

 

CPI Indexation table

59. Section 1191 of the Principal Act is amended:

(a)     by omitting from subsection (1) An and substituting Subject to subsection (1A), an;

(b)    by inserting after subsection (1) the following subsection:

(1A) The pension MBR amount (item 1 of table) and the benefit MBR (ordinary) amount (item 2 of table) are not to be indexed on 20 March 1993..

Division 10Fringe benefits

Repeal of sections 92 and 93 and substitution of new section

60. Sections 92 and 93 of the Principal Act are repealed and the following section is substituted:

Fringe benefits

92.(1) A person who is receiving an age pension is qualified for fringe benefits.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Repeal of sections 146R and 146S and substitution of new section

61. Sections 146R and 146S of the Principal Act are repealed and the following section is substituted:

Fringe benefits

146R.(1) A person who is receiving disability support pension is qualified for fringe benefits.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

12 month extension of fringe benefits—person ceasing to be on a disability support pension because of employment

62. Section 146T of the Principal Act is amended:

(a)     by omitting from paragraph (1)(b) and;

(b)    by omitting paragraph (1)(c);

(c)     by omitting from paragraph (1)(d) and;

(d)    by omitting paragraph (1)(e);

(e)     by adding at the end the following Note:

Note: a person who is taken to be receiving disability support pension is qualified for fringe benefits under section 146R..

Repeal of section

63. Section 146U of the Principal Act is repealed.

Repeal of sections 196 and 197 and substitution of new section

64. Sections 196 and 197 of the Principal Act are repealed and the following section is substituted:

Fringe benefits

196.(1) A woman who is receiving a wife pension is qualified for fringe benefits.

(2) If a woman is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the woman by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Repeal of sections 247 and 248 and substitution of new section

65. Sections 247 and 248 of the Principal Act are repealed and the following section is substituted:

Fringe benefits

247.(1) A person who is receiving a carer pension is qualified for fringe benefits.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Repeal of sections 313 and 314 and substitution of new section

66. Sections 313 and 314 of the Principal Act are repealed and the following section is substituted:

Fringe benefits

313.(1) A person who is receiving a sole parent pension is qualified for fringe benefits.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Repeal of sections 360 and 361 and substitution of new section

67. Sections 360 and 361 of the Principal Act are repealed and the following section is substituted:

Fringe benefits

360.(1) A person who is receiving a widowed person allowance is qualified for fringe benefits.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Repeal of sections 408 and 409 and substitution of new section

68. Sections 408 and 409 of the Principal Act are repealed and the following section is substituted:

Fringe benefits

408.(1) A woman who is receiving a widow B pension is qualified for fringe benefits.

(2) If a woman is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the woman by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Insertion of new Division

69. The Principal Act is amended by adding at the end of Part 2.11 the following Division:

Division 10Fringe benefits

Fringe benefits

592H.(1) A person is qualified for fringe benefits if:

(a)     the person is receiving a job search allowance; and

(b)     the person has been receiving:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension;

continuously for the last 12 months; and

(c) the person has turned 60.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by

the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Insertion of new Division

70. The Principal Act is amended by adding at the end of Part 2.12 the following Division:

Division 10Fringe benefits

Fringe benefits

660W.(1) A person is qualified for fringe benefits if:

(a)     the person is receiving a newstart allowance; and

(b)     the person has been receiving:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension;

continuously for the last 12 months; and

(c) the person has turned 60.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Insertion of new Division

71. The Principal Act is amended by adding at the end of Part 2.14 the following Division:

Division 10Fringe benefits

Fringe benefits

728ZC.(1) A person is qualified for fringe benefits if:

(a)     the person is receiving a sickness allowance; and

(b)     the person has been receiving:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension;

continuously for the last 12 months; and

(c) the person has turned 60.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by

the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Insertion of new Division

72. The Principal Act is amended by adding at the end of Part 2.15 the following Division:

Division 10Fringe benefits

Fringe benefits

771H.(1) A person is qualified for fringe benefits if:

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

(b)     the person has been receiving:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension;

continuously for the last 12 months; and

(c) the person has turned 60.

(2) If a person is qualified for fringe benefits, benefits and concessions of various kinds may be made available to the person by the Commonwealth, State and Territory governments and authorities and local authorities.

Note: for an example of Commonwealth benefits and concessions see the National Health Act 1953..

Qualification for telephone allowance

73. Section 1061Q of the Principal Act is amended:

(a)     by omitting paragraph (1)(b);

(b)    by omitting from subsection (1) Notes 2 and 3;

(c)     by inserting in paragraph (3)(a) , sickness allowance after allowance;

(d)    by omitting from subparagraph (4)(a)(iii) or 146U.

Repeal of Part 3.9

74. Part 3.9 of the Principal Act is repealed.

Division 11Job search allowance and newstart allowance (work rules)

Prospective determinations for some allowees

75. Section 521 of the Principal Act is amended by omitting from paragraph (2)(a) 55 and substituting 50.

Activity test

76. Section 522 of the Principal Act is amended:

(a) by inserting after paragraph (b) of the Note to subsection (3) the following paragraph:

(ba) section 524A (certain allowees between 18 and 50 engaged in voluntary work);;

(b) by omitting from paragraph (c) of the Note to subsection (3) 55 and substituting 50.

Relief from activity test—certain allowees under 18 engaged in voluntary work

77. Section 524 of the Principal Act is amended by omitting from paragraph (2)(a) 20 and substituting 30.

Insertion of new section

78. After section 524 of the Principal Act the following section is inserted:

Relief from activity test—certain allowees between 18 and 50 engaged in voluntary work

524A.(1) Subject to subsection (2), a person who has turned 18 but has not turned 50 is taken to satisfy the activity test in respect of a period if:

(a)     on each day in the period the person is engaged in full-time voluntary work with an approved organisation; and

(b)     the person has been a qualified beneficiary for at least 6 months immediately before the person starts working for the organisation.

Note 1: for activity test see section 522.

Note 2: for approved organisation and qualified beneficiary see section 15.

(2) Subsection (1) does not apply to a day if:

(a) there are already 30 days in the same calendar year on which the person is taken to satisfy the activity test because of:

(i) subsection (1) of this section; or

(ii) subsection 524(1); or

(b) having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that subsection (1) should not apply in relation to that day..

Relief from activity test—certain allowees over 50 engaged in voluntary work

79. Section 525 of the Principal Act is amended:

(a) by omitting from paragraph (1)(a) 55 and substituting 50;

(b) by omitting paragraph (2)(a) and substituting the following paragraph:

(a) there are already 65 days in the same calendar year on which the person is taken to satisfy the activity test because of:

(i) subsection (1) of this section; or

(ii) subsection 524A(1); or.

Prospective determinations for some allowees

80. Section 600 of the Principal Act is amended by omitting from paragraph (2)(a) 55 and substituting 50.

Activity test

81. Section 601 of the Principal Act is amended by omitting from paragraph (a) of the Note to subsection (5) 55 and substituting 50.

Relief from activity test—certain persons over 50 in employment

82. Section 602 of the Principal Act is amended by omitting from paragraph (a) 55 and substituting 50.

Division 12Special benefit

Insertion of new sections

83. After section 729 of the Principal Act the following sections are inserted:

Time limit on qualification for certain recipients of special benefit

729A.(1) This section applies to a person who is receiving special benefit if:

(a)     the persons 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 persons 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 persons qualification for special benefit will continue after the end of the persons maximum benefit period; and

(c)     the Secretary determines that this subsection should apply to the person;

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 persons qualification for special benefit will continue after the end of that period; and

(c)     the Secretary determines that this subsection should apply to the person;

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

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

729B.(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 persons qualification for special benefit will end during the next 13 weeks; or

(b)     that the persons qualification for special benefit will continue after the end of the period of 65 weeks commencing on the persons provisional commencement day.

Note: for provisional commencement day see section 731.

Consequence of subsection 729B(2) determination

729C.(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:

(c)     the person has received special benefit in respect of the immediately preceding 65 weeks; and

(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..

Insertion of new sections

84. After section 762A of the Principal Act the following sections are inserted in Subdivision AA of Division 1 of Part 2.16:

Automatic termination when persons qualification ceases under section 729B or 729C

762B. If:

(a)     a person is receiving special benefit; and

(b)     the person ceases to be qualified for special benefit under section 729B or 729C;

the benefit ceases to be payable to the person immediately after the day on which the person so ceases to be qualified.

Changes to payments by computer following automatic termination

762C. If:

(a)     a person is receiving special benefit on the basis of data in a computer; and

(b)     the benefit is automatically terminated by the operation of a provision of this Act; and

(c)     the automatic termination is given effect to by the operation of a computer program approved by the Secretary stopping payment of the benefit;

there is taken to be a decision by the Secretary that the automatic termination provision applies to the persons benefit.

Note: the decision that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 1239 and 1240) and the Social Security Appeals Tribunal (see section 1247)..

Insertion of new section

85. After section 765A of the Principal Act the following section is inserted:

Changes to payments by computer

765B. If:

(a)     a payment of a special benefit to a person is based upon data in a computer; and

(b)     the benefit is cancelled or suspended because of the operation of a computer program approved by the Secretary; and

(c)     the program causes the change for a reason for which the Secretary could determine the change;

the change is taken to have been made because of a determination by the Secretary for that reason.

Note: the determination that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 1239 and 1240) and the Social Security Appeals Tribunal (see section 1247)..

Secretary may review decisions

86. Section 1239 of the Principal Act is amended:

(a)     by omitting from the Note to subsection (1) 728HA, and substituting 728HA, 762C,;

(b)    by omitting from Note 1 to subsection (1)728N,and substituting 728N, 765B,.

Application for review

87. Section 1240 of the Principal Act is amended:

(a)     by omitting from Note 1 to subsection (1) 728HA,and substituting 728HA, 762C,;

(b)    by omitting from Note 1 to subsection (1)728N,and substituting 728N, 765B,.

Application for review by SSAT

88. Section 1247 of the Principal Act is amended:

(a)     by omitting from Note 1 to subsection (1) 728HA, and substituting 728HA, 762C,;

(b)    by omitting from Note 1 to subsection (1)728N,and substituting 728N, 765B,.

Division 13Review of decisions

Application for review

89. Section 1240 of the Principal Act is amended:

(a) by omitting subsection (3) and substituting the following subsection:

(3) If a person applies under subsection (1) for review of a decision, the Secretary or an authorised review officer may review the decision under section 1243.;

(b)    by omitting from subsection (3A) (3) and substituting (1);

(c)     by omitting from subsection (3A)that subsectionand substituting subsection (3);

(d)    by omitting subsections (4) and (5).

Insertion of new section

90. After section 1242 of the Principal Act the following section is inserted:

Automatic payment if review of section 607 terms decision sought

1242A.(1) This section applies to a decision to give a notice under section 607 because of a persons failure to agree to terms of a Newstart Activity Agreement proposed by the CES (subparagraph 607(1)(b)(iii)).

Note: notice results in disqualification for newstart allowance for failure to enter Newstart Activity Agreement.

(2) If:

(a)     the Secretary makes a decision to which this section applies; and

(b)     a person applies to the Secretary under subsection 1240(1) for review of the decision; and

(c)     the person makes the application within 14 days after being notified of the decision;

the following provisions have effect:

(d)     payment of the newstart allowance is to be made pending the determination of the review, as if the Newstart Activity Agreement had not been required;

(e)     if payment of the allowance had ceased for a period before the person applied for the review—arrears of allowance are payable to the person for the period in spite of section 660L;

(f)      this Act (other than this Chapter) applies as if the Newstart Activity Agreement had not been required.

(3) Subsection (2) ceases to have effect if:

(a)     the application for review is withdrawn; or

(b)     the review of the decision is determined..

Secretarys powers where application for review

91. Section 1243 of the Principal Act is amended by omitting subsections (3) and (4).

Application for review by SSAT

92. Section 1247 of the Principal Act is amended by omitting subsection (1) and substituting the following subsections:

(1) Subject to section 1250, if:

(a)     a decision has been reviewed by the Secretary or an authorised review officer under section 1243; and

(b)     the decision has been affirmed, varied or set aside;

a person whose interests are affected by the decision of the Secretary or the authorised review officer may apply to the Social Security Appeals Tribunal for review of that decision.

(1A) For the purposes of subsection (1), the decision made by the Secretary or the authorised review officer is taken to be:

(a)     if the Secretary or the authorised review officer affirms a decision—the decision as affirmed; and

(b)     if the Secretary or the authorised review officer varies a decision—the decision as varied; and

(c)     if the Secretary or the authorised review officer sets a decision aside and substitutes a new decision—the new decision.

(1B) A person whose interests are affected by a rate of return decision in relation to an investment product may apply to the Social Security Appeals Tribunal for review of the decision..

Repeal of section

93. Section 1249 of the Principal Act is repealed.

Automatic continuation of payment if review of section 282 cancellation decision sought

94. Section 1252 of the Principal Act is amended by omitting paragraph (2)(a) and substituting the following paragraph:

(a) there is a decision to which this section applies; and.

Automatic payment if review of section 607 terms decision sought

95. Section 1252A of the Principal Act is amended:

(a)     by omitting from subsection (1) 607 (second occurring) and substituting 607(1);

(b)    by omitting paragraph (2)(a) and substituting the following paragraph:

(a) there is a decision to which this section applies; and;

(c) by omitting from paragraph (2)(e) 300 and substituting 660L.

Date of effect of SSAT decisions (other than rate of return decisions and newstart activity agreement decisions)

96. Section 1255 of the Principal Act is amended:

(a)     by omitting from paragraph (3)(a) (including a decision under section 1240);

(b)    by omitting from paragraph (3)(b) (including a decision under section 1243);

(c)     by omitting from paragraph (4)(a) (including a decision of the Secretary or an authorised review officer made under section 1243).

Division 14Indexation of taxable income thresholds

Rate of job search allowance (under 18) and sickness allowance (under 18)

97. Section 1067 of the Principal Act is amended in Benefit Rate Calculator A by omitting from Note 2 to point 1067-G17 average weekly earnings (see sections 1195 to 1198) and substituting CPI increases (see sections 1191 to 1194).

Rate of family payment

98. Section 1069 of the Principal Act is amended in the Family Payment Rate Calculator by omitting from Note 2 to point 1069-H21 AWE and substituting CPI.

Analysis of Part

99. Section 1189 of the Principal Act is amended by omitting paragraph (b).

CPI Indexation Table

100. Section 1191 of the Principal Act is amended:

(a) by inserting after item 15 in the CPI indexation table in subsection (1) the following item:

 16.

AFP free area

1 January

June

most recent June quarter before reference quarter

$50.00;

(b) by inserting after item 29 in the CPI indexation table in subsection (1) the following item:

 30.

parental free area

1 January

June

most recent June quarter before reference quarter

$50.00.

Repeal of Division 3 of Part 3.16

101. Division 3 of Part 3.16 of the Principal Act is repealed.

Division 15Newly arrived residents waiting periods

Index of definitions

102. Section 3 of the Principal Act is amended by inserting the following entry in the Index:

“newly arrived resident’s waiting period 23(1)”.

General definitions

103. Section 23 of the Principal Act is amended:

(a) by inserting after paragraph (0 of the definition of “waiting period” in subsection (1) the following paragraph:

“(fa) a job search allowance newly arrived resident’s waiting period under sections 541B and 541C; or”;

(b) by inserting after paragraph (c) of the definition of “waiting period” in subsection (1) the following paragraph:

“(ca) a newstart allowance newly arrived resident’s waiting period under sections 623A and 623B; or”;

(c) by adding at the end of the definition of “waiting period” in subsection (1) the following word and paragraph:

“; or (k) a sickness allowance newly arrived resident’s waiting period under sections 696B and 696C;”;

(d) by inserting in subsection (1) the following definition:

newly arrived residents waiting period means:

(a)     a job search allowance newly arrived residents waiting period under sections 541B and 541C; or

(b)     a newstart allowance newly arrived residents waiting period under sections 623A and 623B; or

(c)     a sickness allowance newly arrived residents waiting period under sections 696B and 696C;.

Job search allowance not payable in certain situations

104. Section 526 of the Principal Act is amended by inserting after paragraph (1)(h) the following paragraph:

(ha) the person is subject to a newly arrived residents waiting period and that period has not ended (see sections 541B and 541C); or.

Commencement of job search allowance

105. Section 534 of the Principal Act is amended by omitting from Note 2 all the words after paragraph (c) and substituting the following:

; or (d) a newly arrived residents waiting period (see sections 541B and 541C).

Note 3: if the person:

(a)    is subject to an unused annual leave waiting period and an ordinary waiting period; and

(b)   is not subject to a newly arrived residents waiting period;

the ordinary waiting period will follow the unused leave waiting period (see subsection 539(2)).

Note 4: if the person is subject only to a newly arrived residents waiting period and an ordinary waiting period, the ordinary waiting period will follow the newly arrived residents waiting period (see subsection 539(2A)).

Note 5: if the person is subject to an education leavers waiting period and another waiting period, the education leavers waiting period runs concurrently with the other waiting period and the job search allowance will not be payable until the longest waiting period has ended.

Note 6: if the person is subject to:

(a)   a newly arrived residents waiting period; and

(b)   an ordinary waiting period; and

(c)   another waiting period;

the ordinary waiting period will follow whichever of the other waiting periods finishes last (see subsection 539(2B))..

Insertion of new sections

106. After section 541A of the Principal Act the following sections are inserted in Subdivision D of Division 1 of Part 2.11:

Newly arrived residents waiting period

541B.(1) Subject to this section, a person is subject to a newly arrived residents waiting period if the person:

(a) either:

(i) holds a valid visa that was granted after 17 August 1992; or

(ii) is not required under the Migration Act 1958 to hold a visa; and

(b)     is granted a valid entry permit on or after 1 January 1993; and

(c)     enters Australia on or after 1 January 1993.

(2) Subsection (1) does not apply to a person who:

(a)     holds a valid domestic protection (temporary) entry permit; or

(b)     is approved for permanent entry under the Refugees, Humanitarian and Special Assistance Sub-program of the Department of Immigration, Local Government and Ethnic Affairs, or a similar program of that Department.

(3) Subsection (1) does not apply to a person if:

(a)     the person is granted a valid entry permit on or after 1 January 1993; and

(b)     the person is a member of a couple immediately before the persons entry into Australia; and

(c)     the persons partner has been an Australian resident for at least 26 weeks when the person enters Australia.

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

(4) Subsection (1) does not apply to a person if:

(a)     the person is already subject to a newly arrived residents waiting period; or

(b)     the person has already served a newly arrived residents waiting period; or

(c)     the person:

(i) has previously entered Australia; and

(ii) held a permanent entry permit immediately before the persons last departure from Australia.

(5) In this section:

domestic protection (temporary) entry permit has the meaning that it has in regulations made under the Migration Act 1958;

enter has the meaning that it has in the Migration Act 1958;

entry visa has the meaning that it has in the Migration Act 1958;

permanent entry permit has the meaning that it has in the Migration Act 1958;

visa means an entry visa or a travel-only visa within the meaning of the Migration Act 1958.

Duration of newly arrived residents waiting period

541C.(1) Subject to subsection (2), the newly arrived residents waiting period starts on the day on which the persons permanent entry permit comes into force and lasts for 26 weeks.

(2) If the person held a valid designated temporary entry permit before the person is granted a valid permanent entry permit, the newly arrived residents waiting period starts on the day on which the persons valid designated temporary entry permit comes into force and lasts for 26 weeks.

(3) In this section:

designated temporary entry permit means a PRC (temporary) entry permit held by the partner or a dependent child (if any) of a citizen of the Peoples Republic of China if that citizen holds a PRC (temporary) entry permit;

permanent entry permit has the meaning that it has in the Migration Act 1958;

PRC (temporary) entry permit has the meaning that it has in regulations made under the Migration Act 1958..

Newstart allowance not payable in certain situations

107. Section 608 of the Principal Act is amended by inserting after paragraph (1)(h) the following paragraph:

(ha) the person is subject to a newly arrived residents waiting period and that period has not ended (see sections 623A and 623B); or.

Commencement of newstart allowance

108. Section 616 of the Principal Act is amended by omitting from Note 2 all the words after paragraph (c) and substituting the following:

; or (d) a newly arrived residents waiting period (see sections 623A and 623B).

Note 3: if the person:

(a)    is subject to an unused annual leave waiting period and an ordinary waiting period; and

(b)   is not subject to a newly arrived residents waiting period;

the ordinary waiting period will follow the unused leave waiting period (see subsection 621(2)).

Note 4: if the person is subject only to a newly arrived residents waiting period and an ordinary waiting period, the ordinary waiting period will follow the newly arrived residents waiting period (see subsection 621(2A)).

Note 5: if the person is subject to an education leavers waiting period and another waiting period, the education leavers waiting period runs concurrently with the other waiting period and the job search allowance will not be payable until the longest waiting period has ended.

Note 6: if the person is subject to:

(a)   a newly arrived residents waiting period; and

(b)   an ordinary waiting period; and

(c)   another waiting period;

the ordinary waiting period will follow whichever of the other waiting periods finishes last (see subsection 621(2B))..

Insertion of new sections

109. After section 623 of the Principal Act the following sections are inserted in Subdivision E of Division 1 of Part 2.12:

Newly arrived residents waiting period

623A.(1) Subject to this section, a person is subject to a newly arrived residents waiting period if the person:

(a) either:

(i) holds a valid visa that was granted after 17 August 1992; or

(ii) is not required under the Migration Act 1958 to hold a visa; and

(b)     is granted a valid entry permit on or after 1 January 1993; and

(c)     enters Australia on or after 1 January 1993.

(2) Subsection (1) does not apply to a person who:

(a)     holds a valid domestic protection (temporary) entry permit; or

(b)     is approved for permanent entry under the Refugees, Humanitarian and Special Assistance Sub-program of the Department of Immigration, Local Government and Ethnic Affairs, or a similar program of that Department.

(3) Subsection (1) does not apply to a person if:

(a)     the person is granted a valid entry permit on or after 1 January 1993; and

(b)     the person is a member of a couple immediately before the persons entry into Australia; and

(c)     the persons partner has been an Australian resident for at least 26 weeks when the person enters Australia.

Note: for Australian resident see subsection7(2).

(4) Subsection (1) does not apply to a person if:

(a)     the person is already subject to a newly arrived residents waiting period; or

(b)     the person has already served a newly arrived residents waiting period; or

(c)     the person:

(i) has previously entered Australia; and

(ii) held a permanent entry permit immediately before the persons last departure from Australia.

(5) In this section:

domestic protection (temporary) entry permit has the meaning that it has in regulations made under the Migration Act 1958;

enter has the meaning that it has in the Migration Act 1958;

entry visa has the meaning that it has in the Migration Act 1958;

permanent entry permit has the meaning that it has in the Migration Act 1958;

visa means an entry visa or a travel-only visa within the meaning of the Migration Act 1958.

Duration of newly arrived residents waiting period

623B.(1) Subject to subsection (2), the newly arrived residents waiting period starts on the day on which the persons permanent entry permit comes into force and lasts for 26 weeks.

(2) If the person held a valid designated temporary entry permit before the person is granted a valid permanent entry permit, the newly arrived residents waiting period starts on the day on which the persons valid designated temporary entry permit comes into force and lasts for 26 weeks.

(3) In this section:

designated temporary entry permit means a PRC (temporary) entry permit held by the partner or a dependent child (if any) of a citizen of the Peoples Republic of China if that citizen holds a PRC (temporary) entry permit;

permanent entry permit has the meaning that it has in the Migration Act 1958:

PRC (temporary) entry permit has the meaning that it has in regulations made under the Migration Act 1958..

Sickness allowance not payable in certain situations

110. Section 677 of the Principal Act is amended by inserting after paragraph (1)(i) the following paragraph:

(ha) the person is subject to a newly arrived residents waiting period and that period has not ended (see sections 696B and 696C); or.

Insertion of new sections

111. After section 696A of the Principal Act the following sections are inserted in Subdivision C of Division 1 of Part 2.14:

Newly arrived residents waiting period

696B.(1) Subject to this section, a person is subject to a newly arrived residents waiting period if the person:

(a) either:

(i) holds a valid visa that was granted after 17 August 1992;

or

(ii) is not required under the Migration Act 1958 to hold a visa; and

(b)     is granted a valid entry permit on or after 1 January 1993; and

(c)     enters Australia on or after 1 January 1993.

(2) Subsection (1) does not apply to a person who:

(a)     holds a valid domestic protection (temporary) entry permit; or

(b)     is approved for permanent entry under the Refugees, Humanitarian and Special Assistance Sub-program of the

Department of Immigration, Local Government and Ethnic Affairs, or a similar program of that Department.

(3) Subsection (1) does not apply to a person if:

(a)     the person is granted a valid entry permit on or after 1 January 1993; and

(b)     the person is a member of a couple immediately before the persons entry into Australia; and

(c)     the persons partner has been an Australian resident for at least 26 weeks when the person enters Australia.

Note: for Australian resident see subsection7(2).

(4) Subsection (1) does not apply to a person if:

(a)     the person is already subject to a newly arrived residents waiting period; or

(b)    the person has already served a newly arrived residents waiting period; or

(c)     the person:

(i) has previously entered Australia; and

(ii) held a permanent entry permit immediately before the persons last departure from Australia.

(5) In this section:

domestic protection (temporary) entry permit has the meaning that it has in regulations made under the Migration Act 1958;

enter has the meaning that it has in the Migration Act 1958;

entry visa has the meaning that it has in the Migration Act 1958;

permanent entry permit has the meaning that it has in the Migration Act 1958;

visa means an entry visa or a travel-only visa within the meaning of the Migration Act 1958.

Duration of newly arrived residents waiting period

696C.(1) Subject to subsection (2), the newly arrived residents waiting period starts on the day on which the persons permanent entry permit comes into force and lasts for 26 weeks.

(2) If the person held a valid designated temporary entry permit before the person is granted a valid permanent entry permit, the newly arrived residents waiting period starts on the day on which the persons valid designated temporary entry permit comes into force and lasts for 26 weeks.

(3) In this section:

designated temporary entry permit means a PRC (temporary) entry permit held by the partner or a dependent child (if any) of a citizen of

the Peoples Republic of China if that citizen holds a PRC (temporary) entry permit;

permanent entry permit has the meaning that it has in the Migration Act 1958;

PRC (temporary) entry permit has the meaning that it has in regulations made under the Migration Act 1958..

Division 16Investments

Index of definitions

112. Section 3 of the Principal Act is amended by inserting the following entries in the Index:

 allocated annuity

9(8)

allocated pension

9(8)

investment

9(9)

investment product

9(1)

listed security

9(1)

managed investment

9(1A), (1B), (1C)

realise

9(10), (11), (12)..

Investment income definitions

113. Section 9 of the Principal Act is amended:

(a) by inserting the following definitions in subsection (1):

investment product, in relation to a managed investment, means all the investments that are:

(a)     with the same body corporate or in the same trust fund; and

(b)     subject to substantially the same terms and conditions as the managed investment;

managed investment has the meaning given by subsections (1A), (1B) and (1C);;

(b) by inserting after subsection (1) the following subsections:

(1A) Subject to subsections (1B) and (1C), an investment is a managed investment for the purposes of this Act if:

(a)     the money or property invested is paid by the investor directly or indirectly to a body corporate or into a trust fund; and

(b)     the assets that represent the money or property invested (the invested assets) are not held in the names of investors; and

(c)     the investor does not have effective control over the management of the invested assets; and

(d)     the investor has a legally enforceable right to share in any distribution of income or profits derived from the invested assets.

(1B) Without limiting the generality of subsection (1A) but subject to subsection (1C), the following are managed investments for the purposes of this Act:

(a)     an investment in a public unit trust;

(b)     an investment in an insurance bond;

(c)     an investment with a friendly society;

(d)     an investment in a superannuation fund;

Note: see paragraph (1C)(a) for superannuation investments held before pension age is reached.

(e) an investment in an approved deposit fund;

Note: see paragraph (1C)(b) for investments in approved deposit funds held before pension age is reached.

(f) an investment in a deferred annuity.

Note: see paragraph (1C)(c) for deferred annuities held before pension age is reached.

(1C) The following are not managed investments for the purposes of this Act:

(a)     an investment in a superannuation fund if the investor has not yet turned pension age;

(b)     an investment in an approved deposit fund if the investor has not yet turned pension age;

(c)     an investment in a deferred annuity if the investor has not yet turned pension age;

(d)     deposit money;

(e)     a loan within the meaning of Division 1B of Part 3.10;

(f)      an immediate annuity;

(g)     a superannuation pension.

Note 1: for pension age see subsection 23(1).

Note 2: for deposit money see subsection 8(1).

Note 3: for loan see section 1099H.

Note 4: an immediate annuity is dealt with under section 1098.

Note 5: a superannuation pension is dealt with under section 1099..

Repeal of section

114. Section 1072D of the Principal Act is repealed.

Repeal of section 1073 and substitution of new section

115. Section 1073 of the Principal Act is repealed and the following section is substituted:

Structure of Division

1073.(1) This Division deals with various forms of investments and non-periodic receipts. The following Table indicates which provisions are relevant to particular investments and receipts:

 

TABLE

 

 

STRUCTURE OF DIVISION

 

column 1

column 2

column 3

item

investment or receipt

section(s)

1.

Managed investments

1074A-1074F

2.

Certain accruing return investments made or acquired before 1 January 1988

1075

3.

Market-linked investments made or acquired before 9 September 1988

1082-1083

4.

Shares and other listed securities

1084-1089

5.

Superannuation investments before pension age

1097

6.

Immediate annuities

1098

7.

Superannuation pensions

1099

(2) If the persons ordinary income is not covered by any of the other Subdivisions, it may be covered by section 1074 below..

Insertion of new Subdivision

116. After Subdivision A of Division 1 of Part 3.10 of the Principal Act the following Subdivision is inserted:

Subdivision AAManaged investments

Investments to which this Subdivision applies

1074A. This Subdivision applies to an investment that is a managed investment unless it is:

(a) an accruing return investment that:

(i) was made or acquired before 1 January 1988; and (ii) is covered by section 1075; or

Note: for accruing return investment see subsection 9(1).

(b) a market-linked investment that was made or acquired before 9 September 1988.

Note 1: for market-linked investment see subsection 9(1).

Note 2: for the treatment of these market-linked investments see sections 1082 and 1083.

How investment returns are taken into account in working out pension and benefit rates

1074B. If:

(a)     a person has an investment; and

(b)     this Subdivision applies to the investment; and

(c)     based on its performance over the preceding 12 months, the

investment product to which that investment belongs has shown a return;

Note: for return on an investment product see section 1074D.

the persons ordinary income on a yearly basis is taken to be increased by:

value of investment × annualised rate of return on investment product

where:

value of investment is the value of the persons investment;

annualised rate of return on investment product is the annualised rate of return on the investment product based on its performance over that 12 months.

Note 1: for annualised rate of return on the investment product see section 1074E below.

Note 2: actual receipts from the investment are not treated as ordinary income: see section 1074F below.

How investment losses are taken into account in working out pension and benefit rates

1074C.(1) If:

(a)     a person has an investment; and

(b)     this Subdivision applies to the investment; and

(c)     based on its performance over the preceding 12 months, the investment product to which the investment belongs has shown a loss;

Note: for loss on an investment product see section 1074D.

the persons ordinary income on a yearly basis is, subject to subsection (2), taken to be reduced by:

value of investment × annualised rate of loss on investment product

where:

Value of investment is the value of the persons investment;

annualised rate of loss on investment product is the annualised rate of loss on the investment product based on its performance over that 12 months.

Note: for annualised rate of loss on the investment product see section 1074E below.

(2) The reductions under subsection (1) in calculating a persons rate as at a particular day are not to exceed the sum of the increases to be made under section 1074B in working out the persons pension or benefit rate as at that day.

Returns and losses on investment products

1074D. An investment product:

(a) shows a return for a 12 month period if:

(i) a rate of return on the product has been declared during the period; or

(ii) the formula below gives a positive number; and

(b) shows a loss for a period if the formula below gives a negative number:

closing value + distributions opening value

where:

closing value is the value of the product at the end of the period;

distributions is the sum of:

(a)     the amount of the distributions (however described) made to the holders of the product during the period; and

(b)     the value of bonus issues (however described) of the product to holders of the product during the period; and

(c)     the value of any other rights given to holders of the product during the period because they hold investments in the investment product;

opening value is:

(a)     if the product has been available for the whole of the period— the value of the product at the beginning of the period; or

(b)     if the product became available during the period—the value of the product when it became available.

Annualised rate of return or loss on investment product

1074E.(1) The annualised rate of return on an investment product for a period of 12 months is:

(a)     if a rate of return on the product has been declared during the period—the declared rate of return; or

(b)     in any other case—the rate worked out in accordance with subsections (5), (6) and (7).

(2) In applying paragraph (1)(a) disregard provisional or conditional declarations of rates of return.

(3) For the purposes of this section, a declaration of a dividend is not a declaration of a rate of return.

(4) The annualised rate of loss on an investment product for a period of 12 months is the rate worked out in accordance with subsections (5), (6) and (7).

(5) The annualised rate of return or loss on an investment product is the rate of return or loss on the product expressed as a percentage per year.

(6) If the investment product became available during the period the performance of the product while it has been available is to be extrapolated for a whole 12 months.

(7) In working out the rate of return or loss on an investment product for a period of 12 months, the following are to be taken into account:

(a) if the product was available at the beginning of the period the value of the product at the beginning of the period;

(b)     if the product became available during the period—the value of the product when it became available;

(c)     the value of the product at the end of the period;

(d)     the amount of the distributions (however described) made to the holders of the product during the period;

(e)     the value of bonus issues (however described) of the product to holders of the product during the period;

(f) the value of any other rights given to holders of the product during the period because they hold investments in the investment product.

Investment and disposal costs

1074F.(1) If:

(a)     the person has an investment; and

(b)     this Subdivision applies to the investment; and

(c)     this Subdivision would operate, if this section did not apply, to increase the persons ordinary income on a yearly basis by a particular amount per year;

the amount of the increase is to be reduced by the amount of the reasonable costs that the person has incurred during the preceding 12 months in relation to the making, acquisition or disposal of investments to which this Subdivision applies.

(2) For the purposes of subsection (1), costs incurred by the person are reasonable if any other person making, acquiring or disposing of an identical investment would be required to pay those costs as a condition of being permitted to make, acquire or dispose of that investment.

Actual return on investments not treated as ordinary income

1074G. If:

(a)     a person has an investment; and

(b)     this Subdivision applies to the investment;

any return on the investment that the person actually receives is taken, for the purposes of this Act, not to be ordinary income of the person..

Heading to Subdivision B of Division 1 of Part 3.10

117. The heading to Subdivision B of Division 1 of Part 3.10 is amended by adding at the end made or acquired before 1 January 1988.

Investments made or acquired before 1 January 1988 with friendly societies or where no immediate return

118. Section 1075 of the Principal Act is amended by omitting from subsection (1) all the words after , for the purposes of this Act, and substituting:

taken to receive as ordinary income of the person during each week in the 12 months commencing on the day on which the person realises the investment and receives an amount by way of return on the investment the amount worked out using the formula:

assessable return

52

where:

assessable return is so much (if any) of the amount of the return as is attributable to the persons assessable period.

Note: for assessable period see subsection 9(1)..

Repeal of sections

119. Sections 1076 to 1081 (inclusive) of the Principal Act are repealed.

Heading to Subdivision C of Division 1 of Part 3.10

120. The heading to Subdivision C of Division 1 of Part 3.10 of the Principal Act is amended by adding at the end made or acquired before 9 September 1988.

Market-linked investments made or acquired before 9 September 1988

121. Section 1082 of the Principal Act is amended by omitting from subsection (1) all the words after , for the purposes of this Act, and substituting:

taken to receive as ordinary income of the person during each week in the 12 months commencing on the day on which the person realises the investment the amount worked out using the formula:

assessable return

52

where:

assessable return is so much (if any) of the amount of the return as is attributable to the persons assessable period.

Note: for assessable period see subsection 9(1)..

Repeal of sections

122. Sections 1084 to 1096 (inclusive) of the Principal Act are repealed.

Heading to Division 1A of Part 3.10

123. The heading to Division 1A of Part 3.10 of the Principal Act is omitted and the following heading is substituted:

Division 1AAvailable money and deposit money.

Repeal of section 1099A and substitution of new section

124. Section 1099A of the Principal Act is repealed and the following section is substituted:

Structure of Division

1099A. The various provisions of this Division that apply to available money and deposit money are shown in the following table:

STRUCTURE OF DIVISION

 

item

type of money

sections

 

1.

income money that does not attract any interest

1099C, 1099E, 1099F

 

2.

income money that attracts low interest

1099D, 1099E, 1099F

 

3.

4.

other income money

other deposit money

1099DA, 1099F

1099DA

 

 

 

 

Insertion of new section

125. After section 1099D of the Principal Act the following section is inserted:

Other deposit money

1099DA.(1) If a person has:

(a)     deposit money that is not income money; or

(b)     deposit money that:

(i) is income money of a person; and

(ii) attracts interest at a rate that is equal to or greater than the assumed rate;

the persons ordinary income on a yearly basis is taken to be increased by:

amount of deposit money × current annual rate of interest

where:

amount of deposit money is the amount of the deposit money;

current annual rate of interest is the annual rate of interest payable on the money.

(2) If:

(a)     a person is taken, because of subsection (1), to have received income from deposit money; and

(b)     the person actually receives a return from that money;

the return actually received is taken, for the purposes of this Act, not to be ordinary income of the person.

(3) If the rate of return on deposit money is not a fixed rate or a quantifiable rate, for the purposes of subsection (1), the current annual rate of return on that income money is a reasonable approximation of the rate of return..

Insertion of new section

126. After section 1099G of the Principal Act the following section is inserted:

Structure of Division

1099GA. The various provisions of this Division that apply to loans are shown in the following table:

STRUCTURE OF DIVISION

item

type of loan

sections

1.

loans that do not attract interest

1099J, 1099L, 1099M

2.

loans that attract low interest

1099K, 1099L, 1099M

3.

other loans

1099KA, 1099M

 

 

 

”.

Insertion of new section

127. After section 1099K of the Principal Act the following section is inserted:

Other loans

1099KA.(1) If:

(a)     there is a loan by a person; and

(b)     the person is paid interest on the loan; and

(c)     the rate of interest is equal to or greater than the assumed loan rate;

the persons ordinary income on a yearly basis is taken to be increased by:

amount of loan × current annual rate of interest on the loan

where:

amount of loan is the amount of the loan;

current annual rate of interest is the annual rate of interest payable on

the loan.

(2) If:

(a)     a person is taken, because of subsection (1), to have received income from a loan; and

(b)     the person actually receives interest on that loan;

the interest actually received is taken, for the purposes of this Act, not to be ordinary income of the person.

(3) If the rate of interest on a loan is not a fixed rate or a quantifiable rate, for the purposes of subsection (1), the current annual rate of interest on that loan money is a reasonable approximation of the rate of interest..

Division 17Superannuation fund investments prior to pension age

Income test definitions

128. Section 8 of the Principal Act is amended by omitting paragraph (8)(b) and substituting the following paragraph:

(b) any return on a persons investment in:

(i) a superannuation fund; or

(ii) an approved deposit fund; or

(iii) a deferred annuity;

until the person:

(iv) reaches pension age; or

(v) commences to receive a pension or annuity out of the fund;

Note 1: for pension age see subsection 23(1).

Note 2: for superannuation fund, approved deposit fund and deferred annuity see subsection 9(1)..

Investment income definitions

129. Section 9 of the Principal Act is amended:

(a) by inserting in subsection (1) the following definitions:

investment, in relation to a superannuation fund, approved deposit fund or deferred annuity, has the meaning given by subsection (9);

realise, in relation to an investment, has the meaning given by subsections (10) and (11);;

(b) by adding at the end the following subsections:

(9) For the purposes of this Act, a person has an investment in a superannuation fund, approved deposit fund or deferred annuity if the person has benefits in the fund or under the annuity (whether the benefits are attributable to amounts paid by the person or someone else).

(10) For the purposes of this Act, a person realises an investment if, and only if:

(a)     all or part of the amount of the investment is withdrawn; or

(b)     where the investment is an eligible investment in a body corporate or trust fund—the person transfers all or part of the investment to another body corporate or trust fund; or

(c)     all or part of the return on the investment is paid to another person; or

(d)     the investment matures; or

(e)     the investment is assigned by the person to another person; or

(f) the investment is disposed of by the person otherwise than in the way referred to in paragraph (e).

(11) For the purposes of subsection (10), if:

(a)     a person realises an investment; and

(b)     the return on the investment is paid to another person; the return is taken to be received by the person realising the investment..

Investments made before 1 January 1988 with friendly societies or where no immediate return

130. Section 1075 of the Principal Act is amended by omitting subsections (3), (4) and (5) and substituting the following Note:

Note: for realising an investment see subsections 9(10) and (11)..

Market-linked investments made or acquired before 9 September 1988

131. Section 1082 of the Principal Act is amended by omitting subsections (2) and (3) and substituting the following Note:

Note: for realising an investment see subsections 9(10) and (11)..

Repeal of Subdivision D of Division 1 of Part 3.10 and substitution of new Subdivision

132. Subdivision D of Division 1 of Part 3.10 is repealed and the following Subdivision is substituted:

Subdivision DSuperannuation fund investments before pension age

Provisions affecting superannuation fund investments before pension age

1097.(1) If:

(a) a person has an investment in:

(i) a superannuation fund; or

(ii) an approved deposit fund; or

(iii) a deferred annuity; and

(b) the person has not reached pension age; and

(c) the person has not commenced to receive a pension or annuity from the investment;

this is how the investment is treated:

(d) the return on the investment is not treated as ordinary income (see paragraph 8(8)(b));

Note: the investment is also disregarded for the purposes of the assets test (see paragraph 1118(1)(f)).

(e)     the return on the investment is not treated as ordinary income under the managed investment rules in Subdivision AA of this Division (see paragraph 1074A(c));

(f)      if the investment is realised the proceeds are spread across the following 12 months (see section 1097A).

Early withdrawal from superannuation fund

1097A. If:

(a)     a person realises an investment in a superannuation fund, approved deposit fund or deferred annuity before the person reaches pension age; and

(b)     the amount realised is not rolled over into:

(i) a superannuation fund; or

(ii) an approved deposit fund; or

(iii) a deferred annuity;

the person is, for the purposes of this Act, taken to receive one fifty-second of the assessable growth component of that amount as ordinary income of the person during each week in the period of 12 months starting on the day when the person realises the investment.

Note: for assessable growth component see subsection 9(1)..

Certain assets to be disregarded in calculating the value of a persons assets

133. Section 1118 of the Principal Act is amended by omitting paragraph (1)(f) and substituting the following paragraph:

(f) the value of the persons investment in:

(i) a superannuation fund; or

(ii) an approved deposit fund; or

(iii) a deferred annuity;

until the person:

(iv) reaches pension age; or

(v) commences to receive a pension or annuity out of the fund;.

Division 18Shares and other listed securities

Investment income definitions

134. Section 9 of the Principal Act is amended:

(a) by omitting the definition of investment product in subsection (1) and substituting the following definition:

investment product, in relation to a managed investment or listed security, means all the investments or securities that are:

(a)     in or with the same body corporate or in the same trust fund; and

(b)     subject to substantially the same terms and conditions as that managed investment or that listed security;;

(b) by inserting the following definition in subsection (1):

listed security means:

(a)     a share in a company; or

(b)     another security;

listed on a stock exchange;.

Heading to Subdivision AA of Division 1 of Part 3.10

135. The heading to Subdivision AA of Division 1 of Part 3.10 is amended by adding at the end and listed securities.

Investments to which this Subdivision applies

136. Section 1074A of the Principal Act is amended by adding at the end the following subsections:

(2) This Subdivision applies to an investment in the form of a listed security.

Note: for listed security see subsection 9(1).

(3) This Subdivision does not apply to bonds and debentures.

Note: debentures are dealt with under Division 1B..

Division 19Allocated pensions

Investment income definitions

137. Section 9 of the Principal Act is amended:

(a) by inserting the following definitions in subsection (1):

allocated annuity has the meaning given by subsection (8);

allocated pension has the meaning given by subsection (8);;

(b) by inserting after paragraph (1B)(f) the following paragraph:

(g) an allocated pension or allocated annuity;;

(c) by inserting at the end of paragraph (1C)(f) that is not an allocated annuity;

(d)    by inserting at the end of paragraph (lC)(g) that is not an allocated pension;

(e)     by adding at the end the following subsection:

(8) A pension or annuity is an allocated one if either:

(a)     the rate of payment of the pension or annuity; or

(b)     the basis for variations in the rate of payment of the pension or annuity;

is not fully defined in the relevant trust deed or contract..

Certain assets to be disregarded in calculating the value of a persons assets

138. Section 1118 of the Principal Act is amended by inserting in paragraph (1)(d) that is not an allocated pension after person.

Value of annuities

139. Section 1119 of the Principal Act is amended:

(a) by inserting after paragraph (2)(a) the following paragraph:

(a) an allocated annuity; or;

(b) by inserting after subsection (4) (and before the Annuity Value Calculator) the following subsection:

(5) Subsection (4) does not apply to an allocated annuity.

Note 1: for allocated annuity see subsection 9(8).

Note 2: for the treatment of allocated annuities until 25 March 1993 see section 1099AA.

Note 3: after 25 March 1993 allocated annuities are to be treated as managed investments (see paragraph 9(1B)(g) and Subdivision AA of Division I of Part 3.10)..

Division 20Notices of decisions

Insertion of new section

140. After section 1302 of the Principal Act the following section is inserted:

Notice of decisions under this Act

1302A.(1) If notice of a decision under this Act is:

(a)     delivered to a person personally; or

(b)     left at the address of the place of residence or business of the person last known to the Secretary; or

(c)     sent by pre-paid post to the address of the place of residence or business of the person last known to the Secretary;

notice of the decision is taken, for the purposes of this Act, to have been given to the person.

Note: compare section 28A of the Acts Interpretation Act 1901.

(2) Notice of a decision under this Act may be given to a person by properly addressing, prepaying and posting the document as a letter.

Note: compare the first limb of section 29 of the Acts Interpretation Act 1901.

(3) If notice of a decision under this Act is given in accordance with subsection (2), notice of the decision is taken to have been given to the person at the time at which the letter would be delivered in the ordinary course of the post unless the contrary is proved.

Note: compare the second limb of section 29 of the Acts Interpretation Act 1901.

(4) This section only applies to notices of decisions and nothing in this section affects the operation of sections 28A and 29 of the Acts Interpretation Act 1901 in relation to other notices under this Act (for example, a notice that requires a person to inform the Department about some matter or a notice that requires a person to give the Secretary a statement about some matter)..

Division 21Debt recovery

General effect of Chapter

141. Section 1222 of the Principal Act is amended:

(a) by inserting after paragraph (l)(c) the following word and paragraph:

; and (d) debts under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990;

(b) by omitting from Note 1 to subsection (1):

• section 1225 debts—compensation debts; and substituting:

• section 1224C debts—Data-matching Program debts;

• section 1225 debts—compensation debts;;

(c) by inserting before item 6 in the Recovery Methods Table in subsection (2) the following item:

5B.

1224C

(Data-matching Program debts)

deductions legal proceedings garnishee notice

1231, 1234A

1232

1233

 

 

 

.

Debts due to the Commonwealth

142. Section 1222A of the Principal Act is amended:

(a)     by omitting from paragraph (a) or the 1947 Act and substituting , the 1947 Act or the Data-matching Program (Assistance and Tax) Act 1990;

(b)    by omitting from Note 1 1225 and substituting 1224C, 1225.

Insertion of new section

143. Before section 1225 of the Principal Act the following section is inserted:

Data-matching Program (Assistance and Tax) Acts debts

1224C.(1) If:

(a)     an amount has been paid to a person by way of a social security payment; and

(b)     the amount is a debt due to the Commonwealth under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990;

the amount so paid is recoverable by the Commonwealth by means of:

(c)     if the person is receiving a social security payment under this Act—deductions from that persons social security payment; or

(d)     if section 1234A applies to another person who is receiving a social security payment under this Act—deductions from that other persons social security payment; or

(e)     legal proceedings; or

(f)      garnishee notice.

Note 1: for deductions see sections 1231 and 1234A.

Note 2: for legal proceedings see section 1232.

Note 3: for garnishee notice see section 1233.

(2) In this section:

social security payment means:

(a)     a social security pension; or

(b)     a social security benefit; or

(c)     an allowance under this Act; or

(d)     a family payment; or

(e)     any kind of payment under Chapter 2 of this Act; or (f) a pension, benefit or allowance under the 1947 Act..

Deductions from debtors pension, benefit or allowance

144. Section 1231 of the Principal Act is amended by omitting subsection (1) (except the Method statement) and substituting the following subsection:

(1) Subject to subsection (2), each of the following:

(a)     a debt under this Act;

(b)     an overpayment arising under other Acts or schemes;

(c)     a debt under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990;

(d)     a debt or overpayment under the 1947 Act;

is to be deducted from a persons pension, benefit or allowance in the following way:.

Garnishee notice

145. Section 1233 of the Principal Act is amended by omitting from subsection (1) 1227 and substituting 1224C, 1225, 1227.

Deductions by consent from pension, benefit or allowance of person who is not a debtor

146. Section 1234A of the Principal Act is amended by inserting in paragraph (1)(a) , the Data-matching Program (Assistance and Tax) Act 1990 after Act (first occurring).

Division 22Job search allowance and newstart allowance

Index of definitions

147. Section 3 of the Principal Act is amended by inserting in the Index the following entry:

Jobskills

23(1).

General definitions

148. Section 23 of the Principal Act is amended by inserting in subsection (1) the following definition:

Jobskills means the work experience program administered by the Employment Department called Jobskills;.

Qualification for newstart allowance

149. Section 593 of the Principal Act is amended by adding at the end of subsection (1) the following Note:

Note 15: if a person is participating in a Jobskills placement see section 595A..

Persons may be treated as unemployed

150. Section 595 of the Principal Act is amended by omitting from subsection (2) A person and substituting Subject to section 595A, a person.

Insertion of new section

151. After section 595 of the Principal Act the following section is inserted:

Certain persons to be treated as employed

595A. Despite subsection 595(2), a person participating in a Jobskills placement is to be treated by the Secretary as being employed.

Note 1: a person is most likely to participate in a Jobskills placement as a requirement under subsection 601(2) (activity test) or as part of a Newstart Activity Agreement.

Note 2: for Jobskills see subsection 23(1)..

Ordinary waiting period

152. Section 620 of the Principal Act is amended:

(a) by inserting after paragraph (g) the following word and paragraphs:

; or (h) all of the following conditions apply:

(i) immediately before becoming qualified for the newstart allowance, the person was a participant in a Jobskills placement;

(ii) the person completed the Jobskills placement; (iii) the person claims the newstart allowance within 14 days after the day on which the person completed the Jobskills placement; or

(i) all of the following conditions apply:

(i) immediately before becoming qualified for the newstart allowance, the person was a participant in a Jobskills placement;

(ii) the person did not complete the Jobskills placement;

(iii) the Employment Secretary is satisfied that the person took reasonable steps to complete the Jobskills placement;

(iv) the person claims the newstart allowance within 14 days after the day on which the person last participated in the Jobskills placement.;

(b) by adding at the end the following Note:

Note 8: for Jobskills see subsection 23(1)..

Division 23Rate of job search, newstart and sickness allowance

Benefit Rate Calculator A

153. The Rate Calculator in section 1067 of the Principal Act is amended:

(a) by adding at the end of point 1067-B1 the following Note:

Note 7: some dependent children are not taken into account in working out a persons maximum basic rate (see point 1067-B2).;

(b) by inserting after point 1067-B1 the following point in Module B:

Certain dependent children to be disregarded

1067-B2. For the purposes of items 1 and 2 of Table B in point 1067-B1, if:

(a)     a person has a dependent child; and

(b)    the child has turned 18; and

(c)     the child is a prescribed student child;

the child is to be disregarded in working out the persons maximum basic rate under that point.

Note: for prescribed student child see section 5..

Benefit Rate Calculator B

154. The Rate Calculator in section 1068 of the Principal Act is amended:

b by adding at the end of point 1068-B1 the following Note:

Note 7: some dependent children will not be taken into account in working out a persons maximum basic rate (see point 1068-B2).;

(b) by inserting after point 1068-B1 the following point in Module B:

Certain dependent children to be disregarded

1068-B2. For the purposes of items 1, 2, 3, 4 and 5 of Table B in point 1068-B1, if:

(a)     a person has a dependent child; and

(b)     the child has turned 18; and

(c)     the child is a prescribed student child;

the child is to be disregarded in working out the persons maximum basic rate under that point.

Note: for prescribed student child see section 5..

 

PART 3—FURTHER AMENDMENTS

Amendments of the Principal Act

155. The Principal Act is amended as set out in Schedules 1, 2 and 4.

Amendments of other Acts

156. The Acts specified in Schedules 1 and 3 are amended as set out in those Schedules.

SCHEDULE 1 Section 155

AMENDMENTS RELATING TO FAMILY PAYMENT

PART 1—AMENDMENTS OF THE SOCIAL SECURITY (FAMILY PAYMENT) AMENDMENT ACT 1992

COMMENCING ON 26 JUNE 1992, IMMEDIATELY AFTER THAT ACT RECEIVED THE ROYAL ASSENT

1. Section 3 (new paragraph 838(l)(d)):

Omit $600,000, substitute $607,250.

2. Section 3 (new paragraph 839(2)(c)):

Omit $111.35, substitute $112.70.

3. Section 4 (new section 1069 (Family Payment Rate Calculator Table B1—item 1—column 3)):

Omit $20.70, substitute $20.90.

4. Section 4 (new section 1069 (Family Payment Rate Calculator Table B1—item 2—column 3)):

Omit $27.60, substitute $27.90.

5. Section 4 (new section 1069—Family Payment Rate Calculator— point 1069-B3)):

Omit $27.60, substitute $27.90.

6. Section 4 (new section 1069 (Family Payment Rate Calculator paragraph 1069-C2(a)):

Omit $82.90, substitute $83.90.

7. Section 4 (new section 1069 (Family Payment Rate Calculator paragraph 1069-C2(b)):

Omit $110.70, substitute $112.00.

8. Section 4 (new section 1069 (Family Payment Rate Calculator paragraph 1069-D2(c)):

Omit $359,250, substitute $363,500.

9. Section 4 (new section 1069 (Family Payment Rate Calculator point 1069-D23—Table D—item 1—column 3)):

Omit $60.80, substitute $61.80.

10. Section 4 (new section 1069 (Family Payment Rate Calculator point 1069-D23—Table D—item 2—column 3)):

Omit $85.90, substitute $87.30.

SCHEDULE 1continued

11. Section 4 (new section 1069 (Family Payment Rate Calculator point 1069-G8)):

Omit $28.70, substitute $29.00.

12. Section 4 (new section 1069 (Family Payment Rate Calculator point 1069-H21—Table H—item 1—column 3)):

Omit $64,167, substitute $64,938.

13. Section 4 (new section 1069 (Family Payment Rate Calculator point 1069-H21—Table H—item 2—column 3)):

Omit $3,210, substitute $3,249.

14. Section 4 (new section 1069 (Family Payment Rate Calculator point 1069-H21—Table H—item 3—column 3)):

Omit $20,700, substitute $20,950.

 

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

COMMENCING ON 1 JANUARY 1993, IMMEDIATELY AFTER THE COMMENCEMENT OF THE SOCIAL SECURITY (FAMILY PAYMENT) AMENDMENT ACT 1992

15. Section 1192:

Add at the end:

(4) The first indexation of the amounts to which items 4, 7, 8, 13, 15, 24A and 25 of the CPI Indexation Table in subsection 1191(1) relate is to take place on 1 January 1994..

16. Section 1199:

Add at the end:

(6) The first adjustment of the AFP under 13 child MBR and the AFP 13-15 child MBR is to take place on 1 January 1994..

17. Schedule 1A:

Add at the end:

Family payment (changes made on 1 January 1993)—benefit paydays

60. If:

(a)     a social security benefit is payable to a person in respect of a period that includes 31 December 1992; and

(b)     the rate of that benefit is increased by reference to a child or children; and

(c)     31 December 1992 is not the last day of the persons benefit payment period;

SCHEDULE 1—continued

the rate of benefit payable to the person on the persons first benefit payday in 1993 in respect of a period that included 31 December 1992 is to be worked out in accordance with this Act as in force immediately before 1 January 1993.

Family payment (changes made on 1 January 1993)

61.(1) If a determination granting a claim for family allowance was in force immediately before 1 January 1993, the determination has effect from that day as if it were a determination under this Act as in force on 1 January 1993 granting a claim for family payment.

Note: if a person who was receiving family allowance immediately before 1 January 1993 was also receiving either:

(a)  an additional amount of social security pension or social security benefit for a dependent child; or

(b) family allowance supplement;

the persons or the persons partners rate of family payment will include additional family payment.

(2) If:

(a)     a person had, before 1 January 1993, made a claim for family allowance under this Act; and

(b)     the claim had not been determined before that date;

the claim is to be dealt with as if it were a claim for family payment under this Act as in force on 1 January 1993 and not as a claim for family allowance.

Note: if the person had also claimed family allowance supplement before 1 January 1993, the persons or the persons partners rate of family payment will include additional family payment.

(3) If:

(a)     subclause (2) applies to a claim; and

(b)     the claim is granted under this Act;

the determination granting the claim may have a date of effect before 1 January 1993.

(4) If:

(a) subclause (3) applies to a claim, this Act as in force on 1 January 1993 is taken to have been in force from the day on which the family payment commences to be payable to the person for the purposes of working out the payability and rate of the persons and the persons partners:

(i) family payment; and

(ii) social security pension and social security benefit (if any); and

(b) the person and the persons partner have no rights under this Act as in force immediately before 1 January 1993.

SCHEDULE 1—continued

(5) If, because of the operation of subclauses (3) and (4), family payment is payable to a person with effect from a day before 1 January 1993, the total amount payable to the person or the persons partner during the period that starts on that day and ends immediately before 1 January 1993, is not to exceed the total amount that would have been payable to the person or the persons partner under this Act if subclauses (3) and (4) had not been enacted.

(6) If:

(a)     a person is receiving a social security pension or a social security benefit on 1 January 1993; and

(b)     the person or the persons partner is qualified for family payment on that day; and

(c)     the person or the persons partner claims family payment before 1 April 1993; and

(d)     the Secretary determines that this subclause should apply to the person or the persons partner;

the claim for family payment is taken to have been made on 1 January 1993..

 

PART 3—AMENDMENTS OF THE SOCIAL SECURITY (FAMILY PAYMENT) AMENDMENT ACT 1992 COMMENCING ON 1 JANUARY 1993, IMMEDIATELY AFTER THE COMMENCEMENT OF THAT ACT

18. Section 7:

Repeal the section.

19. Section 8:

Repeal the section.

 

SCHEDULE 2 Section 155

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO REMOTE AREA ALLOWANCE

1. Section 1064 (Pension Rate Calculator A—point 1064-H2— Table H—column 3):

Omit the column, substitute:

column 3

 

 

basic allowance per year

 

 

$455.00

 

 

$390.00

 

 

$455.00

 

 

 

2. Section 1064 (Pension Rate Calculator A—point 1064-H2— Table H—column 4):

Omit the column, substitute:

column 4

 

 

basic allowance per fortnight

 

 

$17.50

 

 

$15.00

 

 

$17.50

.

SCHEDULE 2continued

3. Section 1065 (Pension Rate Calculator B—point 1065-E2— Table E—column 3):

Omit the column, substitute:

column 3

 

 

basic allowance per year

 

 

$455.00

 

 

$390.00

 

 

$455.00

 

 

 

.

4. Section 1065 (Pension Rate Calculator B—point 1065-E2— Table E—column 4):

Omit the column, substitute:

column 4

 

 

basic allowance per fortnight

 

 

$17.50

 

 

$15.00

 

 

$17.50

 

 

 

.

SCHEDULE 2—continued

5. Section 1066 (Pension Rate Calculator C—point 1066-H2— Table H—column 3):

Omit the column, substitute:

column 3

 

 

basic allowance per year

 

 

$455.00

 

 

$390.00

 

 

$455.00

 

 

 

.

6. Section 1066 (Pension Rate Calculator C—point 1066-H2— Table H—column 4):

Omit the column, substitute:

column 4

 

 

basic allowance per fortnight

 

 

$17.50

 

 

$15.00

 

 

$17.50

 

 

 

.

SCHEDULE 2—continued

7. Section 1066A (Pension Rate Calculator D—point 1066A-I2— Table I—column 3):

Omit the column, substitute:

 

column 3

 

 

basic allowance per year

 

 

$455.00

 

 

$390.00

 

 

$455.00

 

 

 

.

8. Section 1066A (Pension Rate Calculator D—point 1066A-12— Table I—column 4):

Omit the column, substitute:

column 4

 

 

basic allowance per fortnight

 

 

$17.50

 

 

$15.00

 

 

$17.50

.

SCHEDULE 2—continued

9. Section 1066B (Pension Rate Calculator E—point 1066B-F2— Table F—column 3):

Omit the column, substitute:

column 3

 

 

basic allowance per year

 

 

$455.00

 

 

$390.00

 

 

$455.00

 

 

 

.

10. Section 1066B (Pension Rate Calculator E—point 1066B-F2— Table F—column 4):

Omit the column, substitute:

column 4

 

 

basic allowance per fortnight

 

 

$17.50

 

 

$15.00

 

 

$17.50

 

 

 

.

SCHEDULE 2—continued

11. Section 1067 (Benefit Rate Calculator A—point 1067-K3— Table K—column 3):

Omit the column, substitute:

column 3

 

 

basic allowance

 

 

$17.50

 

 

$15.00

 

 

$17.50

 

 

$30.00

.

12. Section 1068 (Benefit Rate Calculator B—point 1068-J3— Table J—column 3):

Omit the column, substitute:

column 3

 

 

basic allowance

 

 

$17.50

 

 

$15.00

 

 

$17.50

 

 

$30.00

.

 

 

SCHEDULE 3 Section 156

AMENDMENTS OF OTHER ACTS

PART 1—AMENDMENTS COMMENCING ON 1 JANUARY 1993,

IMMEDIATELY AFTER THE COMMENCEMENT OF THE SOCIAL SECURITY (FAMILY PAYMENT) AMENDMENT ACT 1992

Health Insurance Act 1973

1. Subsection 5B(12) (after paragraph (a) of the definition of income):

Insert:

(ab) if the person is receiving a social security pension or benefit within the meaning of the Social Security Act 1991—the persons maintenance tested amount (if any) obtained under step 10 of the Family Payment Rate Calculator at point 1069-A1 of that Act;.

2. Before subsection 5EA(1):

Insert:

Disadvantaged person under this section

(1A) A person is a disadvantaged person under this section if subsection (1), (4) or (5E) applies to the person..

3. Subsection 5EA(2):

Omit If, substitute Subject to subsections (2A) and (2B), if.

4. After subsection 5EA(2):

Insert:

(2A) If:

(a)     a declaration is made about a person under subsection (1); and

(b)     family allowance supplement ceases to be payable to the person immediately before 1 January 1993 only because of the repeal of Part 2.18 of the Social Security Act 1991; and

(c)     additional family payment is payable to the person on 1 January 1993; and

(d)     the person or the persons partner is not receiving a pension, benefit or allowance under that Act on that day;

the person is a disadvantaged person in respect of the period beginning on 1 January 1992 and ending:

(e) on the day on which additional family payment ceases to be payable to the person; or

SCHEDULE 3—continued

(f) on the day on which the person or persons partner starts to receive a pension, benefit or allowance under that Act;

whichever occurs first.

(2B) If:

(a)     a declaration is made about a person under subsection (1); and

(b)     family allowance supplement ceases to be payable to the person immediately before 1 January 1993 only because of the repeal of Part 2.18 of the Social Security Act 1991; and

(c)     additional family payment is payable to the person on 1 January 1993; and

(d)     the person or the persons partner is receiving payments under a prescribed educational scheme on that day;

the person is a disadvantaged person in respect of the period beginning on 1 January 1992 and ending:

(e)     on the day on which additional family payment ceases to be payable to the person; or

(f)      on the day on which the person or the persons partner starts to receive a pension, benefit or allowance under that Act;

whichever occurs first..

5. Subsection 5EA(3):

After (2) insert , (2A) or (2B).

6. Paragraph 5EA(4)(b):

After at the insert FAS.

7. Subsection 5EA(5):

(a)     Omit If, substitute Subject to subsections (5A) and (5B), if.

(b)     Omit maximum, substitute FAS maximum.

8. After subsection 5EA(5):

Insert:

(5A) If:

(a)     a declaration is made about a person under subsection (4); and

(b)     family allowance supplement at the FAS maximum payment rate ceases to be payable to the person immediately before 1 January 1993 only because of the repeal of Part 2.18 of the Social Security Act 1991; and

(c)     additional family payment at the AFP maximum payment rate is payable to the person on 1 January 1993; and

(d)     the person or the persons partner is not receiving a pension, benefit or allowance under that Act on that day;

SCHEDULE 3—continued

the person is a disadvantaged person in respect of the period beginning on the day on which family allowance supplement ceases to be payable to the person at the FAS maximum payment rate and ending:

(e)    on the day on which additional family payment ceases to be payable to the person at the AFP maximum payment rate; or

(f)     on the day on which the person or the persons partner starts to receive a pension, benefit or allowance under that Act;

whichever occurs first.

(5B) If:

(a)     a declaration is made about a person under subsection (4); and

(b)     family allowance supplement at the FAS maximum payment rate ceases to be payable to the person immediately before 1 January 1993 only because of the repeal of Part 2.18 of the Social Security Act 1991; and

(c)     additional family payment at the AFP maximum payment rate is payable to the person on 1 January 1993; and

(d)     the person or the persons partner is receiving payments under a prescribed educational scheme on that day;

the person is a disadvantaged person in respect of the period beginning on 1 January 1992 and ending:

(e) on the day on which additional family payment at the AFP maximum payment rate ceases to be payable to the person; or

(f) on the day on which the person or the persons partner starts to receive a pension, benefit or allowance under that Act;

whichever occurs first.

Person receiving additional family payment on or after 1 January 1993

(5C) If:

(a)     family allowance supplement was not payable to a person on 31 December 1992; and

(b)     additional family payment becomes payable to the person on or after 1 January 1993 at the AFP maximum payment rate; and

(c)     the person or the persons partner is not receiving a pension, benefit or allowance under the Social Security Act 1991 on that day;

the Secretary must declare the person to be a disadvantaged person within the meaning of this section.

(5D) If a declaration is made about a person under subsection (5C), the person is a disadvantaged person in respect of the period beginning on the day on which additional family payment becomes payable to the person at the AFP maximum payment rate and ending:

SCHEDULE 3—continued

(a)     on the day on which additional family payment ceases to be payable to the person at the AFP maximum payment rate; or

(b)     on the day on which the person or the persons partner starts to receive a pension, benefit or allowance under the Social Security Act 1991;

whichever occurs first.

Person receiving additional family payment and payments under prescribed educational scheme on or after 1 January 1993

(5E) If:

(a)     family allowance supplement was not payable to a person on 31 December 1992; and

(b)     additional family payment at the AFP maximum payment rate becomes payable to the person on or after 1 January 1993; and

(c)     while the person is receiving additional family payment at the AFP maximum payment rate, the person also receives payments under a prescribed educational scheme;

the Secretary must declare the person to be a disadvantaged person within the meaning of this section.

(5F) If a declaration is made about a person under subsection (5E), the person is a disadvantaged person in respect of the period beginning on the day on which additional family payment at the AFP maximum payment rate becomes payable to the person and ending:

(a)     on the day on which additional family payment at the AFP maximum payment rate ceases to be payable to the person; or

(b)     on the day on which the person or the persons partner starts to receive a pension, benefit or allowance under the Social Security Act 1991;

whichever occurs first..

9. Subsection 5EA(6) (definition of family allowance supplement):

Add at the end as in force immediately before 1 January 1993.

10. Subsection 5EA(6) (definition of maximum payment rate):

Omit the definition, substitute:

FAS maximum payment rate means a rate of family allowance supplement that has not been reduced under the taxable income test referred to in section 1070 of the Social Security Act 1991, as in force immediately before 1 January 1993;.

11. Subsection 5EA(6):

Insert the following definitions:

additional family payment means additional family payment under the Social Security Act 1991;

SCHEDULE 3continued

AFP maximum payment rate, means a rate of additional family payment:

(a)     to which the taxable income test in Submodule 5 of Module H of the Family Payment Rate Calculator in section 1069 of the Social Security Act 1991 applies; and

(b)     which has not been reduced under that test;

partner has the meaning that it has in the Social Security Act 1991;

prescribed educational scheme has the meaning that it has in the Social Security Act 1991..

 

PART 2—AMENDMENTS COMMENCING ON 1 APRIL 1993

National Health Act 1953

12. Subsection 4(1) (paragraph (a) of the definition of pensioner):

Omit and who is qualified for fringe benefits in accordance with a Division of that Act..

13. Subsection 4(3A):

Omit the subsection.

SCHEDULE 4 Section 155

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

PART 1—AMENDMENTS COMMENCING ON 1 JANUARY 1993

1. After paragraph 539(1)(b):

Insert:

(ba) is not subject to a newly arrived residents waiting period; and.

2. Subsection 539(2):

Omit the subsection, substitute:

Unused annual leave waiting period and no newly arrived residents waiting period

(2) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to an unused annual leave waiting period; and

(c)     is not subject to a newly arrived residents waiting period; and

(d)     is not disqualified for job search allowance under section 519 (liquid assets test);

SCHEDULE 4—continued

the ordinary waiting period is the period of 7 days that starts on the day after the day on which the persons unused annual leave waiting period ends.

Newly arrived residents waiting period and ordinary waiting period

(2A) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to a newly arrived residents waiting period; and

(c)     is not subject to another waiting period; and

(d)     is not disqualified for job search allowance under section 519 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the day after the day on which the persons newly arrived residents waiting period ends.

Newly arrived residents waiting period, unused annual leave waiting period and ordinary waiting period

(2B) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to a newly arrived residents waiting period; and

(c)     is:

(i) subject to an unused annual leave waiting period; or

(ii) disqualified for job search allowance under section 519 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the day after whichever is the later of the following:

(d)     the day on which the persons newly arrived residents waiting period ends;

(e)     the day on which the persons unused annual leave waiting period ends;

(f)      the day on which the period worked out under section 519 ends..

3. After paragraph 539(3)(a):

Insert:

(b) is not subject to a newly arrived residents waiting period; and.

4. After paragraph 621(l)(b):

Insert:

(ba) is not subject to a newly arrived residents waiting period; and.

SCHEDULE 4—continued

5. Subsection 621(2):

Omit the subsection, substitute:

Unused annual leave waiting period and no newly arrived residents waiting period

(2) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to an unused annual leave waiting period; and

(c)     is not subject to a newly arrived residents waiting period; and

(d)     is not disqualified for newstart allowance under section 598 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the day after the day on which the persons unused annual leave waiting period ends.

Newly arrived residents waiting period and ordinary waiting period

(2A) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to a newly arrived residents waiting period; and

(c)     is subject to another waiting period; and

(d)     is not disqualified for newstart allowance under section 598 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the day after the day on which the persons last waiting period ends.

Newly arrived residents waiting period, unused annual leave waiting period and ordinary waiting period

(2B) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to a newly arrived residents waiting period; and

(c)     is:

(i) subject to an unused annual leave waiting period; or

(ii) disqualified for job search allowance under section 598 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the day after whichever is the later of the following:

(d)     the day on which the persons newly arrived residents waiting period ends;

(e)     the day on which the persons unused annual leave waiting period ends;

(f)      the day on which the period worked out under section 598 ends..

SCHEDULE 4—continued

6. After paragraph 621(3)(a):

Insert:

(b) is not subject to a newly arrived residents waiting period; and.

7. After subsection 688(4):

Insert:

Claim within 5 weeks of incapacity and newly arrived residents waiting period applying

(4A) If the person:

(a)     claims the allowance within 5 weeks after the day on which the person becomes incapacitated; and

(b)     the person is subject to a newly arrived residents waiting period but not subject to an ordinary waiting period;

the allowance is not payable to the person before the first day after the end of the newly arrived persons waiting period.

Note 1: for newly arrived residents waiting period see sections 696B and 696C and for ordinary waiting period see sections 693 and 694.

Note 2: if the person has an unused annual leave waiting period and a newly arrived residents waiting period, the unused annual leave waiting period runs concurrently with the newly arrived residents waiting period and the. sickness allowance will not be payable until the longest waiting period has finshed..

8. After paragraph 694(1)(b):

Insert:

(ba) is not subject to a newly arrived residents waiting period; and.

9. Subsection 694(2):

Omit the subsection, substitute:

Unused annual leave waiting period and no newly arrived residents waiting period

(2) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to an unused annual leave waiting period; and

(c)     is not subject to a newly arrived residents waiting period; and

(d)     is not disqualified for sickness allowance under section 676 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the day after the day on which the persons unused annual leave waiting period ends.

SCHEDULE 4—continued

Newly arrived residents waiting period and ordinary waiting period

(2A) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to a newly arrived residents waiting period; and

(c)     is subject to another waiting period; and

(d)     is not disqualified for sickness allowance under section 676 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the day after the day on which the persons last waiting period ends.

Newly arrived residents waiting period, unused annual leave waiting period and ordinary waiting period

(2B) If a person:

(a)     is subject to an ordinary waiting period; and

(b)     is subject to a newly arrived residents waiting period; and

(c)     is:

(i) subject to an unused annual leave waiting period; or

(ii) disqualified for sickness allowance under section 676 (liquid assets test);

the ordinary waiting period is the period of 7 days that starts on the

day after whichever is the later of the following:

(d)     the day on which the persons newly arrived residents waiting period ends;

(e)     the day on which the persons unused annual leave waiting period ends;

(f) the day on which the period worked out under section 676 ends..

10. After paragraph 694(3)(a):

Insert:

(ba) is not subject to a newly arrived residents waiting period; and.

 

PART 2—AMENDMENTS COMMENCING ON 20 MARCH 1993

11. Section 1192:

Add at the end:

(5) The first indexation of rent assistance under items 11A and 12A of the CPI Indexation Table in subsection 1191(1) is to take place on 20 September 1993..

NOTES

  1. No. 46, 1991, as amended. For previous amendments see Nos. 68, 69, 70, 73, 74, 115, 116, 141, 175, 194 and 208, 1991; and Nos. 12 and 81, 1992.
  2. No. 95, 1953, as amended. For previous amendments, see No. 68, 1955; Nos. 55 and 95, 1956; No. 92, 1957; No. 68, 1958; No. 72, 1959; No. 16, 1961; No. 82, 1962; No. 77, 1963; No. 37, 1964; Nos. 100 and 146, 1965; No. 44, 1966; Nos. 14 and 100, 1967; No. 100, 1968; No. 102, 1969; No. 41, 1970; No. 85, 1971; No. 114, 1972; Nos. 49 and 202, 1973; No. 37, 1974; Nos. 1, 13 and 93, 1975; Nos. 1, 60, 91, 99, 108, 157 and 177, 1976; Nos. 98 and 100, 1977; Nos. 36, 88, 132 and 189, 1978; Nos. 54, 91 and 122, 1979; Nos. 117 and 131, 1980; Nos. 40, 74, 92, 118, 163 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 35, 54 and 139, 1983; Nos. 46, 63, 72, 120, 135 and 165, 1984; Nos. 24, 53, 65, 70, 95, 127 and 167, 1985; Nos. 28, 75, 94 and 115, 1986; Nos. 22, 44, 72, 118, 131 and 132, 1987; Nos. 79, 87, 99 and 155, 1988; No. 95, 1989; Nos. 3, 84, 106 and 141, 1990; Nos. 6, 68, 70, 73, 83, 84, 115, 116, 119, 122, 141, 169, 175, 208 and 211, 1991; Nos. 70, 81 and 88, 1992.

NOTE ABOUT SECTION HEADING

1. On the day on which section 5EA of the Health Insurance Act 1973 is amended by this Act, the heading to that section is altered by inserting or additional family payment after supplement.

[Ministers second reading speech made in

House of Representatives on 3 November 1992

Senate on 9 November 1992]