Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994

No. 174 of 1994

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

[Assented to 16 December 1994]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994.

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

Commencement

2.(1) Subject to this section, this Act commences on 1 July 1995.

(2) Items 27 and 34 to 38 of Schedule 3 are taken to have commenced on 20 September 1994, and subsection 5(2) is taken to have commenced on that day to the extent necessary in order to enable those items to be taken to have commenced on that day.

(3) Item 39 of Schedule 3 commences on 1 January 1995, and subsection 5(2) is taken to commence on that day to the extent necessary in order to enable that item to commence on that day.

(4) Paragraph 6(1)(a), section 13 and Part 1 of Schedule 4 are taken to have commenced on 1 July 1994.

(5) Paragraph 6(1)(b), subsection 6(2), sections 14 and 15 and Parts 2 and 3 of Schedule 4 commence on 1 January 1995.

(6) Paragraph 7(a), section 11 and Part 1 of Schedule 5 commence on 1 January 1995, immediately after the commencement of section 4 of the Social Security (1994 Budget and White Paper) Amendment Act 1994.

(7) Section 9 and Schedule 7 commence, or are taken to have commenced, on 1 December 1994.

(8) Section 10 and Schedule 8 are taken to have commenced on 1 September 1994.

Amendments relating to parenting allowance

3.(1) The Principal Act is amended as set out in Parts 1, 2, 3 and 5 of Schedule 1.

(2) The Acts referred to in Part 4 of Schedule 1 are amended as set out in that Part.

Amendments relating to income tests and related matters

4. The Principal Act is amended as set out in Schedule 2.

Amendments relating to partner allowance

5.(1) The Principal Act is amended as set out in Part 1 of Schedule 3.

(2) The Acts referred to in Part 2 of Schedule 3 are amended as set out in that Part.

Amendments relating to widow allowance

6.(1) The Principal Act is amended:

(a) as set out in Part 1 of Schedule 4; and

(b) as set out in Part 2 of Schedule 4.

(2) The Acts referred to in Part 3 of Schedule 4 are amended as set out in that Part.

Amendments relating to education entry payments for wife pension and widow, mature age partner, partner and parenting allowance recipients

7. The Principal Act is amended:

(a) as set out in Part 1 of Schedule 5; and

(b) as set out in Part 2 of Schedule 5.

Amendments relating to the phasing out of wife pension, special needs wife pension and mature age partner allowance

8. The Principal Act is amended as set out in Schedule 6.

Amendments relating to the continuation of advance pharmaceutical allowance

9. The Principal Act and the Social Security Legislation Amendment Act (No. 4) 1991 are amended as set out in Schedule 7.

Amendments relating to assurance of support debt

10. The Principal Act is amended as set out in Schedule 8.

Transitional provision—education entry payments for widow allowance recipients

11. Section 665ZC of the Principal Act applies for 9 months after the commencement of this section as if:

(a) the definition of "social security recipient status" in subsection 23(1) were omitted and the following definition substituted:

" 'social security recipient status', for the purposes of the definition of 'long-term social security recipient', means status as:

(a) a recipient of a social security pension, a social security benefit or a service pension; or

(b) a benefit increase partner;"; and

(b) subsection 4(10) and Module C of Benefit Rate Calculator A or B of the Principal Act, as in force immediately before 20 September 1994, had not been amended by the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994.

Transitional provision—education entry payments for partner and parenting allowance recipients

12. Sections 665ZQ and 665ZU of the Principal Act apply for 3 months after the commencement of this section as if:

(a) the definition of "social security recipient status" in subsection 23(1) were omitted and the following definition substituted:

" 'social security recipient status', for the purposes of the definition of 'long-term social security recipient', means status as:

(a) a recipient of a social security pension, a social security benefit or a service pension; or

(b) a benefit increase partner;"; and

(b) subsection 4(10) and Module C of Benefit Rate Calculator A or B of the Principal Act, as in force immediately before 20 September 1994, had not been amended by the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994.

Transitional provision relating to qualifying residence exemption for widow allowance

13. Part 2.8A of the Principal Act applies as if the amendments to the Principal Act that are made by section 4 and items 1, 2, 3 and 4 of Schedule 2 to the Social Security (1994 Budget and White Paper) Amendment Act 1994 commenced on 1 July 1994.

Transitional provision relating to the treatment of widowed person allowance under the Income Tax Assessment Act 1936

14.(1) For the purposes of the Income Tax Assessment Act 1936, payments of widowed person allowance under Part 2.7 of the Principal Act are taken to be payments of bereavement allowance under that Act.

(2) Subsection (1) applies to payments made on or after 1 July 1994.

Application of amendments of the Income Tax Assessment Act 1936

15.(1) The amendments of the Income Tax Assessment Act 1936 made by subsection 3(2) and items 163, 164, 165, 166 and 171 of Schedule 1 apply in relation to payments made on or after 1 July 1995.

(2) The amendments of the Income Tax Assessment Act 1936 made by subsection 3(2) and items 167 to 170 of Schedule 1 apply to assessments in respect of income of the 1995-96 year of income and of all later years of income.

(3) The amendments of the Income Tax Assessment Act 1936 made by subsection 3(2) and item 172 of Schedule 1 apply in relation to payments made on or after 29 September 1994.

(4) The amendments of the Income Tax Assessment Act 1936 made by subsection 6(2) and Divisions 1 and 2 of Part 3 of Schedule 4 apply in relation to payments made on or after 1 July 1994.

____________

 SCHEDULE 1 Section 3

AMENDMENTS RELATING TO PARENTING ALLOWANCE

PART 1—THE PARENTING ALLOWANCE

1. Part 2.18:

Repeal the Part, substitute:

"PART 2.18—PARENTING ALLOWANCE

"Division 1—Parenting allowance child status

Parenting allowance child

"901. Subject to sections 902 to 904, a parenting allowance child is a child who:

(a) has not turned 16; and

(b) is a dependent child of a person.

Note: For 'dependent child' see subsections 5(2) to (9).

Parenting allowance child—child absent from Australia for more than 13 weeks

"902.(1) If a dependent child:

(a) leaves Australia temporarily; and

(b) continues to be absent from Australia for more than 13 weeks;

the child cannot be a parenting allowance child at any time after the 13 weeks while the child remains absent from Australia.

"(2) For the purposes of subsection (1), in determining if an absence is temporary, regard must be had to the following factors:

(a) the purpose of the absence;

(b) the intended duration of the absence;

(c) the frequency of such absences.

Parenting allowance child—child born outside Australia

"903. If a dependent child:

(a) is born outside Australia; and

(b) continues to be absent from Australia for more than 13 weeks;

the child cannot be a parenting allowance child at any time after the 13 weeks while the child remains absent from Australia.

Parenting allowance child—child subsequently departs Australia

"904. If:

(a) a dependent child is not a parenting allowance child because of section 902 or 903, or because of a previous application of this section; and

SCHEDULE 1—continued

(b) the child comes to Australia; and

(c) the child leaves Australia less than 13 weeks later;

the child cannot be a parenting allowance child when the child leaves Australia as mentioned in paragraph (c).

"Division 2—Qualification for and payability of parenting allowance

"Subdivision A—Qualification for parenting allowance

Qualification for parenting allowance

"905. A person is qualified for parenting allowance if the person:

(a) is a member of a couple; and

(b) has at least one parenting allowance child; and

(c) is an Australian resident, or has a qualifying residence exemption for parenting allowance; and

(d) is in Australia, or satisfies the requirements of section 906.

Note 1: See section 4 for whether a person is a member of a couple.

Note 2: For 'Australian resident' and 'qualifying residence exemption' see section 7.

Qualification for parenting allowance—temporary absences from Australia

"906.(1) Subject to subsection (3), for the purposes of paragraph 905(d), a person satisfies the requirements of this section if the person:

(a) is temporarily absent from Australia; and

(b) has not been absent from Australia for more than 13 weeks.

"(2) For the purposes of subsection (1), in determining if an absence is temporary, regard must be had to the following factors:

(a) the purpose of the absence;

(b) the intended duration of the absence;

(c) the frequency of such absences.

"(3) If:

(a) a person does not satisfy the requirements of this section:

(i) because the person's absence from Australia is not temporary; or

(ii) because the person has been absent from Australia for more than 13 weeks; or

(iii) because of a previous application of this subsection; and

(b) the person comes to Australia; and

SCHEDULE 1—continued

(c) the person leaves Australia again less than 13 weeks later; the person is taken, for the purposes of paragraph 905(d), not to satisfy the requirements of this section when the person leaves Australia as mentioned in paragraph (c).

Qualification for parenting allowance—assurance of support

"907. A person is not qualified for parenting allowance if the Secretary is satisfied that:

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

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

(c) it would be reasonable for the assuree to accept that support.

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

Qualification for parenting allowance—unemployment due to industrial action

"908.(1) If:

(a) a person has claimed but has not yet received parenting allowance; and

(b) when the claim was lodged, the person was unemployed;

the person is not qualified for parenting allowance unless the Secretary is satisfied that the person's unemployment is not due to the person being, or having been, engaged in industrial action or a series of industrial actions.

"(2) For the purposes of subsection (1) and without limiting that subsection, a person is taken not to be, or to have been, engaged in industrial action or a series of industrial actions if the Secretary is satisfied that the person's unemployment is due to other people being, or having been, engaged in industrial action or in a series of industrial actions, and that:

(a) if industrial action is still being engaged in:

(i) the people, or some of the people, are members of a trade union that is involved in the industrial action, or have been such members at any time since industrial action started; and

(ii) the person has not been a member of that trade union at any time since industrial action started; or

(b) if industrial action has stopped:

(i) at any time while industrial action was being engaged in, the people, or some of the people, were members of a trade union that was involved in the industrial action; and

SCHEDULE 1—continued

(ii) the person was not a member of that trade union at any time while industrial action was being engaged in.

"(3) Subsection (1) does not prevent a person from being qualified for parenting allowance on a payday that occurs after the relevant industrial action or series of industrial actions has stopped.

Note: For 'industrial action', 'trade union' and 'unemployment' see section 16.

"Subdivision B—Payability of parenting allowance

Parenting allowance not payable in some circumstances

"909.(1) Even though a person is qualified for parenting allowance, the allowance may not be payable to the person because:

(a) the allowance has not commenced to be payable (see sections 910 and 938); or

(b) the person has not provided a tax file number for the person (see sections 912, 932 and 948) or for the person's partner (see sections 913, 933 and 949); or

(c) another person is receiving parenting allowance in respect of the same child (see section 914); or

(d) the person's partner is receiving parenting allowance (see section 915); or

(e) a social security benefit or a Youth Training Allowance is payable to the person (see section 916); or

(f) the person is receiving a payment under certain educational schemes (see section 917); or

(g) the person is receiving income that is paid by a community or group from funds provided under a Commonwealth funded employment program (see section 918); or

(h) the person is receiving payments under a LEAP program (see section 919); or

(i) the person is subject to a newly arrived resident's waiting period (see section 920); or

(j) the person is subject to an unused annual leave waiting period (see section 923); or

(k) the person is subject to a non-payment period for job search allowance or newstart allowance (see section 926); or

(l) the person has not nominated a bank, credit union or building society account for payment of the allowance (see section 943); or

(m) the person is in gaol (see Part 3.13); or

SCHEDULE 1—continued

(n) the person is subject to a compensation preclusion period (see Part 3.14).

"(2) Subject to subsection (3), a parenting allowance is not payable to a person if the person's parenting allowance rate would be nil.

"(3) Subsection (2) does not apply to a person if the person's rate is nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) Part 2.23 of this Act; or

(b) Division 2 of Part VILA of the Veterans' Entitlements Act.

Commencement of parenting allowance

"910. A parenting allowance is not payable to a person before the person's provisional commencement day (identified under section 911).

Provisional commencement day

General rule

"911.(1) Subject to subsections (2) to (7), a person's provisional commencement day is the day on which the person claims parenting allowance.

Claim made within 4 weeks of becoming qualified

"(2) If a person claims parenting allowance within 4 weeks after becoming qualified for parenting allowance, the person's provisional commencement day is the day on which he or she became qualified.

Initial incorrect or inappropriate claim followed by claim for parenting allowance

(a) a person makes a claim (the 'initial claim') for:

(i) a social security or service pension or a social security benefit (other than parenting allowance); or

(ii) a pension, allowance, benefit or other payment under another Act, or under a program administered by the Commonwealth, that is similar in character to a parenting allowance; and

(b) on the day on which the person makes the initial claim, the person is qualified for parenting allowance; and

(c) the person subsequently makes a claim for parenting allowance; and

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

the person's provisional commencement day is the day on which the person made the initial claim.

SCHEDULE 1—continued

Early claim

"(4) If:

(a) a person lodges a claim for parenting allowance; and

(b) the person is not, on the day on which the claim is lodged, qualified for parenting allowance; and

(c) the person becomes qualified for parenting allowance during the period of 13 weeks that starts immediately after that day;

the person's provisional commencement day is the first day on which the person is qualified for parenting allowance.

Partner allowee not required to make claim

"(5) If a person is not required to make a claim for parenting allowance because of subsection 927(3), the person's provisional commencement day is the day on which the person becomes qualified for parenting allowance.

Claim resulting from a major disaster

"(6) If a person:

(a) claims a disaster relief payment; and

(b) is qualified for the payment; and

(c) as a result of the major disaster to which the payment relates, claims a parenting allowance within 14 days of claiming the disaster relief payment;

the person's provisional commencement day is the day on which the person was affected by the disaster.

Transferees

"(7) If:

(a) a person is a transferee to parenting allowance; and

(b) the person claims parenting allowance within 14 days after the transfer day;

the person's provisional commencement day is the person's transfer day.

Note: For 'transferee' and 'transfer day' see subsections 23(6) and (7).

Provision of person's tax file number

"912.(1) A parenting allowance is not payable to a person if:

(a) the person is requested under section 932 or 948 to:

(i) give the Secretary a written statement of the person's tax file number; or

(ii) apply for a tax file number and give the Secretary a written statement of the person's tax file number once it has been issued; and

SCHEDULE 1—continued

(b) at the end of the period of 28 days after the request is made, the person has neither:

(i) given the Secretary a written statement of the person's tax file number; nor

(ii) given the Secretary a declaration by the person in a form approved by the Secretary and satisfied either subsection (2) or (3).

"(2) The person satisfies this subsection if:

(a) the person's declaration states that the person:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform him or her of the number; and

(b) the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

(i) whether the person has a tax file number; and

(ii) if the person has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the person has no tax file number.

"(3) The person satisfies this subsection if:

(a) the person's declaration states that the person has applied for a tax file number; and

(b) the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

(i) if a tax file number is issued to the person—the tax file number; or

(ii) if the application is refused—that the application has been refused; or

(iii) if the application is withdrawn—that the application has been withdrawn; and

(c) the Commissioner of Taxation has not told the Secretary that the person has not applied for a tax file number; and

(d) the Commissioner of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and

(e) the application for a tax file number has not been withdrawn.

Provision of partner's tax file number

"913.(1) Subject to subsection (4), a parenting allowance is not payable to a person if:

SCHEDULE 1—continued

(a) the person is requested under section 933 or 949 to give the Secretary a written statement of the tax file number of the person's partner; and

(b) at the end of the period of 28 days after the request is made the person has neither:

(i) given the Secretary a written statement of the partner's tax file number; nor

(ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).

"(2) The person satisfies this subsection if:

(a) the partner's declaration states that the partner:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform the partner of the partner's number; and

(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

(i) whether the partner has a tax file number; and

(ii) if the partner has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

"(3) The person satisfies this subsection if:

(a) the partner's declaration states that an application by the partner for a tax file number is pending; and

(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

(i) if a tax file number is issued to the partner—the tax file number; or

(ii) if the application is refused—that the application has been refused; or

(iii) if the application is withdrawn—that the application has been withdrawn; and

(c) the Commissioner of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and

(d) the application for a tax file number has not been withdrawn.

"(4) The Secretary may waive the requirement for a statement of the partner's tax file number if the Secretary is satisfied that:

(a) the person does not know the partner's tax file number; and

SCHEDULE 1—continued

(b) the person can obtain none of the following from the partner:

(i) the partner's tax file number;

(ii) a statement of the partner's tax file number;

(iii) a declaration by the partner under subparagraph (1)(b)(ii).

Parenting allowance not payable to more than one person for the same child

"914.(1) Subject to subsection (2), if one person is receiving parenting allowance in relation to a child, parenting allowance is not payable to any other person in relation to that child.

"(2) If:

(a) more than one person qualifies for parenting allowance in relation to the same child; and

(b) more than one of them has claimed parenting allowance in relation to the child (whether or not one of them is receiving parenting allowance in relation to the child);

the Secretary must:

(c) make a written determination specifying one of them as the person to whom parenting allowance is payable in relation to the child; and

(d) give a copy of the determination to each person who has claimed parenting allowance in relation to the child.

"(3) Parenting allowance is not payable, in relation to that child, to any person other than the person specified in the determination.

Parenting allowance not payable to more than one member of a couple

"915.(1) Subject to subsection (2), if one member of a couple is receiving parenting allowance, parenting allowance is not payable to the other member of the couple.

"(2) If:

(a) both members of a couple are qualified for parenting allowance; and

(b) both of them have claimed parenting allowance (whether or not one of them is receiving parenting allowance);

the Secretary must:

(c) make a written determination specifying one of them as the member of the couple to whom parenting allowance is payable; and

(d) give a copy of the determination to both of them.

"(3) Parenting allowance is not payable to the member of the couple not specified in the determination.

SCHEDULE 1—continued

Multiple entitlement exclusion

"916.(1) Parenting allowance is not payable to a person if the person is already receiving a social security benefit or a Youth Training Allowance.

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

(a) a person is receiving parenting allowance; and

(b) a social security benefit or a Youth Training Allowance becomes payable to the person;

parenting allowance is not payable to the person.

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

Note 2: For the day on which the parenting allowance ceases to be payable see section 951B.

Note 3: For 'Youth Training Allowance' see subsection 23(1).

"(3) This section does not apply in relation to a social security benefit:

(a) that is payable to an armed services widow; and

(b) in relation to which subsection 1068(3) applies.

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

Educational schemes exclusion

"917. A parenting allowance is not payable to a person if the person is receiving:

(a) payments under the AUSTUDY Scheme; or

(b) payments under the ABSTUDY Scheme (other than payments under the ABSTUDY Tertiary Scheme as a part-time student); or

(c) payments under the Student Financial Supplement Scheme.

Commonwealth funded employment program exclusion

"918. A parenting allowance is not payable to a person if the person is receiving income that is paid by a community or group from funds provided under a Commonwealth funded employment program.

Note: For 'Commonwealth funded employment program' see subsection 23(1).

Payments under LEAP programs

"919. A parenting allowance is not payable to a person if the person is receiving payments under a LEAP program.

Note: For 'LEAP program' see subsection 23(1).

Newly arrived residents

"920. A parenting allowance is not payable to a person if:

SCHEDULE 1—continued

(a) the person is subject to a newly arrived resident's waiting period (see section 921); and

(b) that period has not ended (see section 922).

Newly arrived resident's waiting period

"921.(1) Subject to this section, a person who:

(a) has entered Australia on or after 1 January 1993; and

(b) holds a permanent visa;

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

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

"(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a parenting allowance.

Note: For 'qualifying residence exemption' see subsection 7(6).

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

(a) if, immediately before this section commenced, the person had held a valid designated temporary entry permit for a continuous period of at least 26 weeks; or

(b) if:

(i) immediately before this section commenced, the person had held a valid designated temporary entry permit for a continuous period (the 'permit period') of less than 26 weeks; and

(ii) that permit was continued in force as a temporary visa by regulations made under the Migration Reform Act 1992; and

(iii) the period during which that permit continued to be in force as a temporary visa together with the permit period is at least 26 weeks.

Note: For 'designated temporary entry permit' see subsection 7(1).

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

(a) the person was a member of a couple immediately before entering Australia; and

(b) the person's partner had been an Australian resident for at least 26 weeks when the person entered Australia.

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

"(5) Subsection (1) does not apply to a person if: (a) the person is already subject to a newly arrived resident's waiting period; or

SCHEDULE 1—continued

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

(c) the person:

(i) has previously entered Australia; and

(ii) held a permanent entry permit granted under the Migration Act 1958 as then in force, or a permanent visa, before the person's last departure from Australia.

Duration of newly arrived resident's waiting period

"922.(1) If a person is subject to a newly arrived resident's waiting period, the period starts on the day on which the person's permanent visa comes into force and ends on the day worked out under subsection (2) or (3).

"(2) If:

(a) immediately before this section commenced, the person held a valid designated temporary entry permit; and

(b) that permit was continued in force as a temporary visa by regulations made under the Migration Reform Act 1992; and

(c) that temporary visa was in force immediately before the person was granted his or her permanent visa;

the newly arrived resident's waiting period ends 26 weeks after the day on which the designated temporary entry permit was granted to the person.

Note: For 'designated temporary entry permit' see subsection 7(1).

"(3) If subsection (2) does not apply, the newly arrived resident's waiting period ends 26 weeks after the day on which the person was granted his or her permanent visa.

Unused annual leave

"923. A parenting allowance is not payable to a person if:

(a) the person is subject to an unused annual leave waiting period (see section 924); and

(b) that period has not ended (see section 925).

Unused annual leave waiting period

"924.(1) A person is subject to an unused annual leave waiting period if:

(a) the person's employment with an employer has ended; and

(b) when that employment ended, the person became entitled to receive a payment for unused annual leave; and

SCHEDULE 1—continued

(c) the person's provisional commencement day occurs within the notional leave period.

Note 1: For 'unused annual leave' see subsection 23(1).

Note 2: For the person's provisional commencement day see section 911.

"(2) A person's notional leave period is the period that:

(a) starts on the day after the day on which the person's employment ended; and

(b) runs for the number of days for which the person has unused annual leave as worked out under subsections (3) and (4).

"(3) Subject to subsection (4), the number of days for which the person has unused annual leave is worked out as follows:

(a) if the period of unused annual leave is expressed in weeks—multiply by 7 the number of weeks (including fractions of weeks) in the period of unused annual leave and disregard any fraction that results;

(b) otherwise—multiply by 7 the number of working weeks (including any fraction of a working week) represented by the period of unused annual leave and disregard any fraction that results.

"(4) The number of days for which a person has unused annual leave cannot exceed 28 days.

Duration of unused annual leave waiting period

"925. A person's unused annual leave waiting period starts on the person's provisional commencement day and finishes on the last day of the notional leave period.

Note 1: For the person's provisional commencement day see section 911.

Note 2: For the notional leave period see section 924.

Non-payment periods for job search allowance and newstart allowance

"926.(1) A parenting allowance is not payable to a person if:

(a) a period of non-payment of job search allowance has been applied to the person under paragraph 526(1)(j), or a period of non-payment of newstart allowance has been applied to the person under paragraph 608(1)(j); and

(b) that period has not ended.

"(2) This section does not apply in relation to a particular period of non-payment if the Secretary is satisfied that it should not so apply.

SCHEDULE 1—continued

"Division 3—Claim for parenting allowance

Need for a claim

"927.(1) Subject to subsection (3), a person who wants to be granted a parenting allowance must make a proper claim for that allowance.

Note: For 'proper claim' see section 928 (form), section 929 (manner of lodgment) and section 930 (residence / presence in Australia).

"(2) For the purposes of subsection (1), if:

(a) a claim for parenting allowance is made by or on behalf of a person; and

(b) at the time the claim is made, the claim cannot be granted because the person is not qualified for parenting allowance; and

(c) subsection 911(4) does not apply to the claim;

the claim is to be taken to have not been made.

"(3) A person does not have to make a claim for a parenting allowance if:

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

(b) the person becomes qualified for a parenting allowance because the person becomes a person who has at least one parenting allowance child.

Note: For 'parenting allowance child' see sections 901 to 904.

Form of claim

"928. To be a proper claim, a claim must be made in writing and must be in accordance with a form approved by the Secretary.

Lodgment of claim

"929.(1) To be a proper claim, a claim must be lodged:

(a) at an office of the Department; or

(b) at a place approved for the purpose by the Secretary; or

(c) with a person approved for the purpose by the Secretary.

"(2) A place or person approved under subsection (1) must be a place or person in Australia.

Claimant must be Australian resident and in Australia

"930. A claim by a person is not a proper claim unless the person: (a) is an Australian resident, or has a qualifying residence exemption for parenting allowance; and

SCHEDULE 1—continued

(b) is in Australia;

on the day on which the claim is lodged.

Note: For 'Australian resident' and 'qualifying residence exemption' see section 7.

Claim may be withdrawn

"931.(1) A claimant for parenting allowance 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.

Secretary may request claimant to give statement of claimant's tax file number

"932.(1) The Secretary may request but not compel a claimant for parenting allowance:

(a) if the claimant has a tax file number—to give the Secretary a written statement of the claimant's tax file number; or

(b) if the claimant does not have a tax file number:

(i) to apply to the Commissioner of Taxation for a tax file number; and

(ii) to give the Secretary a written statement of the claimant's tax file number after the Commissioner of Taxation has issued it.

"(2) A parenting allowance is not payable to a claimant if, at the end of the period of 28 days after the request is made:

(a) the claimant has failed to satisfy the request; and

(b) the Secretary has not exempted the claimant from having to satisfy the request.

Note: In some cases the request can be satisfied by giving the Secretary a declaration by the claimant about the claimant's tax file number and an authority to the Commissioner of Taxation to give the Secretary certain information about the claimant's tax file number (see subsections 912(2) and (3)).

Secretary may request claimant to give statement of partner's tax file number

"933.(1) The Secretary may request but not compel a claimant for parenting allowance to give the Secretary a written statement of the tax file number of the claimant's partner if the partner is in Australia.

"(2) A parenting allowance is not payable to a claimant if, at the end of the period of 28 days after the request is made:

SCHEDULE 1—continued

(a) the claimant has failed to satisfy the request; and

(b) the Secretary has not exempted the claimant from having to satisfy the request.

Note 1: In some cases the request can be satisfied by giving the Secretary a declaration by the partner about the partner's tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner's tax file number (see subsections 913(2) and (3)).

Note 2: The Secretary can waive the requirement in some cases (see subsection 913(4)).

"Division 4—Determination of claim

Secretary to determine claim

"934. The Secretary must, in accordance with this Act, determine the claim.

Grant of claim

"935. The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

(a) the person is qualified for a parenting allowance; and

(b) the allowance is payable.

Date of effect of determination

General

"936.(1) Subject to subsections (2), (3) and (4), a determination under section 935 takes effect on the day on which the determination is made or on such later day or earlier day as is specified in the determination.

Notified decision—review sought within 3 months "(2) If:

(a) a decision (the 'previous decision') is made rejecting a person's claim for parenting allowance; and

(b) a notice is given to the person advising the person of the making of the previous decision; and

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

(d) a determination granting the claim is made as a result of the application for review;

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

SCHEDULE 1—continued

Notified decision—review sought after 3 months

"(3) If:

(a) a decision (the 'previous decision') is made rejecting a person's claim for parenting allowance; and

(b) a notice is given to the person advising the person of the making of the previous decision; and

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

(d) a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the person sought the review.

Decision not notified

"(4) If:

(a) a decision (the 'previous decision') is made rejecting a person's claim for parenting allowance; and

(b) no notice is given to the person advising the person of the making of the previous decision; and

(c) the person applies to the Secretary under section 1240 for review of the previous decision; and

(d) a determination granting the claim is made as a result of the application for review;

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

"Division 5—Rate of parenting allowance

How to work out a person's parenting allowance rate

"937. A person's parenting allowance rate is worked out using the Parenting Allowance Rate Calculator at the end of section 1068A.

"Division 6—Payment of parenting allowance

Commencement of parenting allowance

"938. Parenting allowance becomes payable to a person on the first day on which:

(a) the person is qualified for the allowance; and

SCHEDULE 1—continued

(b) no provision of this Act makes the allowance not payable to the person.

Note 1: For qualification see section 905.

Note 2: For circumstances in which a parenting allowance is not payable see section 909.

Payment by instalments

"939. Subject to section 940, a full instalment of parenting allowance is payable to a person on each parenting allowance payday on which:

(a) the person is qualified for the allowance; and

(b) the allowance is payable to the person.

Note: For 'parenting allowance payday' see subsection 23(1).

Effect on instalments of backdating claim

"940. If:

(a) a person claims parenting allowance on a particular day (the 'claim day'); and

(b) the person's provisional commencement day is before the claim day; and

(c) there is a parenting allowance payday on or after the provisional commencement day and before the claim day;

then:

(d) no instalment of parenting allowance is payable on that payday; and

(e) a full instalment in respect of that payday is payable on the first parenting allowance payday on or after the claim day.

Note 1: For 'provisional commencement day' see section 911.

Note 2: For 'parenting allowance payday' see subsection 23(1).

Calculation of amount of instalment

"941.(1) The amount of an instalment of parenting allowance is the fortnightly rate of the allowance.

"(2) If an amount that is payable to a person on a parenting allowance payday is not a multiple of 10 cents, the amount is, subject to subsection (3), to be increased or decreased to the nearest multiple of 10 cents.

"(3) If an amount that is payable to a person on a parenting allowance payday is not a multiple of 10 cents but is a multiple of 5 cents, the amount is to be increased by 5 cents.

"(4) If:

(a) an amount of pharmaceutical allowance is added to a person's provisional rate of parenting allowance in working out the amount of an instalment of parenting allowance; and

SCHEDULE 1—continued

(b) apart from this subsection, the amount of the instalment would be less than that amount of pharmaceutical allowance; the amount of the instalment is to be increased to that amount of pharmaceutical allowance.

Note: For the provisional rate of parenting allowance see Step 3 of point 1068A-A3 of the Parenting Allowance Rate Calculator at the end of section 1068A.

"(5) If, apart from this subsection, the amount of an instalment would be less than $1.00, the amount is to be increased to $1.00.

Instalments to be paid to person or nominee

"942.(1) Subject to subsection (3), instalments of a person's parenting allowance are to be paid to that person.

"(2) The Secretary may direct that the whole or part of the instalments of a person's parenting allowance are to be paid to someone else on behalf of the person.

"(3) If the Secretary makes a direction under subsection (2), the instalments are to be paid in accordance with the direction.

Payment into bank account etc.

"943.(1) An amount that is to be paid to a person under section 942 is to be paid in the way set out in this section.

"(2) Subject to this section, the amount is to be paid to the credit of a bank account, credit union account or building society account nominated and maintained by the person.

"(3) The account may be an account that is maintained by the person either alone or jointly or in common with another person.

"(4) If the person has not nominated an account for the purposes of subsection (2), then, subject to subsections (5) and (7), the amount is not to be paid.

"(5) If:

(a) an amount has not been paid because of subsection (4); and

(b) the person nominates an account for the purposes of subsection (2); the amount is to be paid under subsection (2).

"(6) The Secretary may direct that the whole or a part of the amount be paid to the person in a different way from that provided for by subsection (2).

"(7) If the Secretary gives a direction under subsection (6), the amount is to be paid in accordance with the direction.

SCHEDULE 1—continued

Where allowance payday would fall on public holiday etc.

"944. If the Secretary is satisfied that an amount of parenting allowance that would normally be paid on a particular day cannot reasonably be paid on that day (because, for example, it is a public holiday or a bank holiday), the Secretary may direct that the amount be paid on an earlier day.

Payment of allowance after death

"945.(1) If:

(a) parenting allowance is payable to a person; and

(b) the person dies; and

(c) at the date of the person's death the person had not received an amount of parenting allowance payable to him or her; and

(d) another person applies to receive that amount; and

(e) the application is made:

(i) within 6 months after the death; or

(ii) within a further period allowed by the Secretary in special circumstances;

the Secretary may pay the amount to the person who, in the Secretary's opinion, is best entitled to it.

"(2) If the Secretary pays an amount of parenting allowance under subsection (1), the Commonwealth has no further liability to any person in respect of that amount of parenting allowance.

"Division 7—Protection of parenting allowance

Parenting allowance to be absolutely inalienable

General

"946.(1) Subject to subsections (2) and (3) and section 1359, parenting allowance is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

Payments to Commissioner of Taxation at recipient's request

"(2) The Secretary may make deductions from the instalments of parenting allowance payable to a person if the recipient asks the Secretary:

(a) to make the deductions; and

(b) to pay the amounts to be deducted to the Commissioner of Taxation.

Note: The Secretary must make deductions from a person's social security payment if requested by the Commissioner of Taxation—see section 1359.

SCHEDULE 1—continued

Deductions from instalments with recipient's consent

"(3) The Secretary may make deductions from the instalments of parenting allowance payable to a person if the recipient consents under section 1234A to the Secretary making the deductions.

Note: Section 1234A enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a social security payment.

Effect of garnishee or attachment order

"947.(1) If:

(a) a person has an account with a financial institution; and

(b) instalments of parenting allowance payable to the person (whether on the person's own behalf or not) are being paid to the credit of that account; and

(c) a court order in the nature of a garnishee order comes into force in respect of the account;

the court order does not apply to the saved amount (if any) in the account.

"(2) The saved amount is worked out as follows:

"(3) This section applies to an account whether it is maintained by a person:

(a) alone; or

(b) jointly with another person; or

(c) in common with another person.

Note: A person affected by a garnishee order may have other saved amounts if the person receives telephone allowance (see section 1061X).

"Division 8—Recipient obligations

Secretary may request recipient to give statement of recipient's tax file number

"948.(1) The Secretary may request but not compel a recipient of parenting allowance:

SCHEDULE 1—continued

(a) if the recipient has a tax file number—to give the Secretary a written statement of the recipient's tax file number; or

(b) if the recipient does not have a tax file number:

(i) to apply to the Commissioner of Taxation for a tax file number; and

(ii) to give the Secretary a written statement of the recipient's tax file number after the Commissioner of Taxation has issued it.

"(2) A parenting allowance is not payable to a recipient if, at the end of the period of 28 days after the request is made:

(a) the recipient has failed to satisfy the request; and

(b) the Secretary has not exempted the recipient from having to satisfy the request.

Note: In some cases the request can be satisfied by giving the Secretary a declaration by the claimant about the claimant's tax file number and an authority to the Commissioner of Taxation to give the Secretary certain information about the recipient's tax file number (see subsections 912(2) and (3)).

Secretary may request recipient to give statement of partner's tax file number

"949.(1) The Secretary may request but not compel a recipient of parenting allowance to give the Secretary a written statement of the tax file number of the recipient's partner if the partner is in Australia.

"(2) A parenting allowance is not payable to a recipient if, at the end of the period of 28 days after the request is made:

(a) the recipient has failed to satisfy the request; and

(b) the Secretary has not exempted the recipient from having to satisfy the request.

Note 1: In some cases the request can be satisfied by giving the Secretary a declaration by the partner about the partner's tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner's tax file number (see subsections 913(2) and (3)).

Note 2: The Secretary can waive the requirement in some cases (see subsection 913(4)).

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

"950.(1) The Secretary may give a person to whom a parenting allowance is being paid a notice that requires the person to inform the Department if:

(a) a specified event or change of circumstances occurs; or

(b) the person becomes aware that a specified event or change of circumstances is likely to occur.

SCHEDULE 1—continued

"(2) An event or change of circumstances is not to be specified in a notice under subsection (1) unless the occurrence of the event or change of circumstances might affect the payment of the allowance.

"(3) Subject to subsection (4), a notice under subsection (1):

(a) must be in writing; and

(b) may be given personally or by post; and

(c) must specify how the person is to give the information to the Department; and

(d) must specify the period within which the person is to give the information to the Department; and

(e) must specify that the notice is a recipient notification notice given under this Act.

Note: For 'recipient notification notice' see subsection 23(1).

"(4) A notice under subsection (1) is not invalid merely because it fails to comply with paragraph (3)(c) or (e).

"(5) Subject to subsections (6) and (7), the period specified under paragraph (3)(d) must end at least 14 days after:

(a) the day on which the event or change of circumstances occurs; or

(b) the day on which the person becomes aware that the event or change of circumstances is likely to occur.

"(6) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (5) does not apply to that requirement.

"(7) If the notice requires information about receipt of a compensation payment, the period specified under paragraph (3)(d) in relation to that information must end at least 7 days after the day on which the person becomes aware that he or she has received or is to receive a compensation payment.

"(8) A person must not, without reasonable excuse, refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.

Penalty: Imprisonment for 6 months.

Note: Subsections 4B(2) and(3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.

SCHEDULE 1—continued

"(9) 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.

Secretary may require recipient to give particular information relevant to payment of parenting allowance

"951.(1) The Secretary may give a person to whom a parenting allowance is being paid a notice that requires the person to give the Department a statement about a matter that might affect the payment of the allowance to the person.

"(2) Subject to subsection (3), a notice under subsection (1):

(a) must be in writing; and

(b) may be given personally or by post; and

(c) must specify how the statement is to be given to the Department; and

(d) must specify the period within which the person is to give the statement to the Department; and

(e) must specify that the notice is a recipient statement notice given under this Act.

Note: For 'recipient statement notice' see subsection 23(1).

"(3) A notice under subsection (1) is not invalid merely because it fails to comply with paragraph (2)(c) or (e).

"(4) The period specified under paragraph (2)(d) must end at least 14 days after the day on which the notice is given.

"(5) A statement given in response to a notice under subsection (1) must be in writing and in accordance with a form approved by the Secretary.

"(6) A person must not, without reasonable excuse, refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.

Penalty: Imprisonment for 6 months.

Note: Subsections 4B(2) and(3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.

"(7) 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.

SCHEDULE 1—continued

"Division 9—Continuation, variation and termination

"Subdivision A—General

Continuing effect of determination

Entitlement determination

"951A.(1) A determination that:

(a) a person's claim for parenting allowance is to be granted; or

(b) parenting allowance is payable to a person; continues in effect until:

(c) the allowance ceases to be payable under section 95 IB, 951C, 95 ID or 95 IE; or

(d) a further determination in relation to the allowance under section 95IP or 951Q has taken effect.

Note 1: A determination to grant a claim for parenting allowance is made under section 935.

Note 2: A determination that parenting allowance is payable to a person is necessary where the determination is to reverse an earlier determination to cancel or suspend the allowance (see section 951S).

Note 3: If changes are made to a person's parenting allowance payments because of the operation of a computer program, a determination is taken to have been made in certain circumstances (see section 951R).

Rate determination

"(2) A determination of the rate of a parenting allowance continues in effect until:

(a) the allowance becomes payable at a lower rate under sections 951G, 951H, 951J or 951K; or

(b) a further determination in relation to the allowance under section 951M or 95 IN has taken effect.

Note: For paragraph (b) see also section 951R.

"Subdivision B—Automatic termination

Automatic termination—transfer to new payment type

"951B. If:

(a) a person is receiving parenting allowance; and

(b) a social security benefit or a youth training allowance becomes payable to the person;

the allowance ceases to be payable to the person immediately before the day on which the benefit becomes payable to the person.

Automatic termination—recipient complying with section 950 notification obligations

"951C. If:

SCHEDULE 1—continued

(a) a person who is receiving parenting allowance is given a notice under section 950; and

(b) the notice requires the person to inform the Department of the occurrence of an event or change in circumstances within a specified period (the 'notification period'); and

(c) the event or change in circumstances occurs; and

(d) the person informs the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

(e) because of the occurrence of the event or change in circumstances:

(i) the person ceases to be qualified for the allowance; or

(ii) the allowance would, apart from this section, cease to be payable to the person; and

(f) the allowance is not cancelled before the end of the notification period;

the allowance continues to be payable to the person until the end of the notification period and then ceases to be payable to the person.

Note: If the person informs the Department, within the notification period, of an event or change in circumstances that reduces the rate of the person's allowance, there is no automatic rate reduction and a determination under section 951N must be made in order to bring the rate reduction into effect.

Automatic termination—recipient not complying with section 950 notification obligations

"951D. If:

(a) a person who is receiving parenting allowance is given a notice under section 950; and

(b) the notice requires the person to inform the Department of the occurrence of an event or change in circumstances within a specified period (the 'notification period'); and

(c) the event or change in circumstances occurs; and

(d) the person does not inform the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

(e) because of the occurrence of the event or the change in circumstances:

(i) the person ceases to be qualified for the allowance; or

(ii) the allowance ceases to be payable to the person;

the allowance ceases to be payable to the person immediately after the day on which the event or change in circumstances occurs.

SCHEDULE 1—continued

Automatic termination—failure to provide section 951 statement

"951E.(1) If:

(a) a person who is receiving parenting allowance is given a notice under section 951 requiring the person to give the Department a statement; and

(b) the notice relates to the payment of the allowance during a period specified in the notice; and

(c) the person does not comply with the notice;

the allowance, subject to subsection (2), ceases to be payable to the person as from the first day in that period.

"(2) If the Secretary is satisfied that, in the special circumstances of the case, it is appropriate to do so, the Secretary may determine in writing that subsection (1) does not apply to the person from a day specified in the determination.

"(3) The day specified under subsection (2) may be before or after the making of the determination.

Changes to payments by computer following automatic termination

"951F. If:

(a) a person is receiving parenting allowance on the basis of data in a computer; and

(b) the allowance 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 allowance;

there is taken to be a decision by the Secretary that the automatic termination provision applies to the person's allowance.

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

"Subdivision C—Automatic rate reduction

Automatic rate reduction—recipient not complying with section 950 notification obligations

"951G. If:

(a) a person who is receiving parenting allowance is given a notice under section 950; and

SCHEDULE 1—continued

(b) the notice requires the person to inform the Department of the occurrence of an event or change in circumstances within a specified period (the 'notification period'); and

(c) the event or change in circumstances occurs; and

(d) the person does not inform the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

(e) because of the occurrence of the event or change in circumstances, the person's rate of allowance is to be reduced;

the allowance becomes payable to the person at the reduced rate immediately after the day on which the event or change in circumstances occurs.

Automatic rate reduction—failure to inform Department of payment for remunerative work where earnings credit account balance available

"951H. If:

(a) a person who is receiving parenting allowance is given a notice under section 950; and

(b) the notice requires the person to inform the Department of income for remunerative work undertaken by the person or the person's partner; and

(c) the person fails to notify the Department of income of that kind in accordance with the notice; and

(d) the person has an earnings credit account balance for the purposes of Division 5 of Part 3.10;

the allowance becomes payable to the person at the reduced rate from the first payday after the day on which the person's earnings credit account balance is reduced to nil.

Automatic rate reduction—receipt of social security pension or service pension

"951J. If:

(a) a person is receiving parenting allowance at a rate that exceeds the maximum basic component of parenting allowance; and

(b) as a result of a social security pension or a service pension becoming payable to the person, the person's rate of parenting allowance is reduced;

SCHEDULE 1—continued

the allowance becomes payable to the person at the reduced rate immediately before the day on which the social security pension or service pension becomes payable to the person.

Note: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A.

Automatic rate reduction—partner receiving AUSTUDY allowance that includes dependent spouse allowance

"951K. If:

(a) a person is receiving parenting allowance at a rate that exceeds the maximum basic component of parenting allowance; and

(b) as a result of an AUSTUDY allowance that includes a dependent spouse allowance becoming payable to the person's partner, the person's rate of parenting allowance is reduced;

the allowance becomes payable to the person at the reduced rate immediately before the day on which the AUSTUDY allowance that includes a dependent spouse allowance becomes payable to the person's partner.

Note: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A.

Changes to payments by computer following automatic reduction

"951L. If:

(a) a person is receiving parenting allowance on the basis of data in a computer; and

(b) the allowance rate is automatically reduced by the operation of a provision of this Act; and

(c) the automatic reduction is given effect to by the operation of a computer program approved by the Secretary reducing the rate of payment of the allowance;

there is taken to be a decision by the Secretary that the automatic rate reduction provision applies to the person's allowance.

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

SCHEDULE 1—continued

"Subdivision D—Determinations

Rate increase determination

"951M. If the Secretary is satisfied that the rate at which parenting allowance is being, or has been, paid is less than the rate provided for by this Act, the Secretary is to determine that the rate is to be increased to the rate specified in the determination.

Note: For the date of effect of a determination under this section see section 951T.

Rate reduction determination

"95IN. If the Secretary is satisfied that the rate at which parenting allowance is being, or has been, paid is more than the rate provided for by this Act, the Secretary is to determine that the rate is to be reduced to the rate specified in the determination.

Note 1: A determination under this section is not necessary if an automatic rate reduction is produced by section 951G, 951H, 951J or 951K (see subsection 951A(2)).

Note 2: For the date of effect of a determination under this section see section 951U.

Cancellation or suspension determination

"951P. If the Secretary is satisfied that parenting allowance is being, or has been, paid to a person to whom it is not, or was not, payable under this Act, the Secretary is to determine that the allowance is to be cancelled or suspended.

Note 1: A determination under this section is not necessary if an automatic termination is produced by section 951B, 951C, 951D or 951E (see subsection 951A(1)).

Note 2: For the date of effect of a determination under this section see section 951U.

Cancellation or suspension for failure to comply with section 951, 1304 or 1305 notice

"951Q. If:

(a) a person who is receiving parenting allowance is given a notice under section 951, 1304 or 1305; and

(b) the person does not comply with the requirements set out in the notice;

the Secretary may determine that the allowance is to be cancelled or suspended.

Note 1: This section will not apply if section 951E or 951N applies.

Note 2: For the date of effect of a determination under this section see section 951U.

Changes to payments by computer

"951R. If:

(a) payment of parenting allowance to a person is based on data in a computer; and

SCHEDULE 1—continued

(b) the allowance rate is increased or reduced, or the allowance is cancelled or suspended, because of the operation of a computer program approved by the Secretary; and

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

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

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

Resumption of payment after cancellation or suspension

"951S.(1) If the Secretary:

(a) cancels or suspends a person's parenting allowance under section 951P or 951Q; and

(b) reconsiders the decision to cancel or suspend; and

(c) becomes satisfied that because of the decision to cancel or suspend:

(i) the person did not receive parenting allowance that was payable to the person; or

(ii) the person is not receiving parenting allowance that is payable to the person;

the Secretary is to determine that parenting allowance was or is payable to the person.

"(2) The reconsideration referred to in paragraph (1)(b) might be a reconsideration on an application under section 1240 for review or a reconsideration on the Secretary's own initiative.

Note: For the date of effect of a determination under this section see section 951T.

"Subdivision E—Date of effect of determinations

Date of effect of favourable determination

General

"951T.(1) The day on which a determination under section 951M or 951S (the 'favourable determination') takes effect is worked out in accordance with this section.

Notified decision—review sought within 3 months

"(2) If:

(a) a decision (the 'previous decision') is made in relation to a parenting allowance; and

SCHEDULE 1—continued

(b) a notice is given to the person to whom the allowance is payable advising the person of the making of the previous decision; and

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

(d) a favourable determination is made as a result of the application for review;

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

Notified decision—review sought after 3 months

"(3) If:

(a) a decision (the 'previous decision') is made in relation to a parenting allowance; and

(b) a notice is given to the person to whom the allowance is payable advising the person of the making of the previous decision; and

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

(d) a favourable determination is made as a result of the application for review;

the determination takes effect on the day on which the person sought the review.

Decision not notified

"(4) If:

(a) a decision (the 'previous decision') is made in relation to a parenting allowance; and

(b) no notice is given to the person to whom the allowance is payable advising the person of the making of the previous decision; and

(c) the person applies to the Secretary under section 1240 for review of the previous decision; and

(d) a favourable determination is made as a result of the application for review;

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

SCHEDULE 1—continued

Notified change of circumstances

"(5) If the favourable determination is made following a person having advised the Department of a change in circumstances, the determination takes effect on the day on which the advice was received or on the day on which the change occurred, whichever is the later.

Other determinations

"(6) In any other case, the favourable determination takes effect on the day on which the determination was made or on such later day or earlier day (not being a day more than 3 months before the determination was made) as is specified in the determination.

Date of effect of adverse determination

General

"951U.(1) The day on which a determination under section 95IN, 95IP or 951Q (the 'adverse determination') takes effect is worked out in accordance with this section.

Note: If the adverse determination depends on a discretion or opinion and a person affected by the determination applies for review, the Secretary may continue payment pending the outcome of the review (see section 1241 (internal review) and section 1251 (review by Social Security Appeals Tribunal)).

Date of effect

"(2) The adverse determination takes effect on:

(a) the day on which the determination is made; or

(b) if another day is specified in the determination—on that day.

Later day must be specified

"(3) Subject to subsections (4) to (8), the day specified under paragraph (2)(b) must be later than the day on which the determination is made.

Contravention of Act

"(4) If:

(a) the person whose allowance is affected by the adverse determination has contravened a provision of this Act (other than section 951, 1304, 1305, 1306 or 1307); and

(b) the contravention causes a delay in making the determination;

the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.

False statement or misrepresentation—suspension or cancellation

"(5) If:

(a) a person has made a false statement or misrepresentation; and

SCHEDULE 1—continued

(b) because of the false statement or misrepresentation, the allowance has been paid to a person when it should have been cancelled or suspended;

the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.

False statement or misrepresentation—rate reduction

"(6) If:

(a) a person has made a false statement or misrepresentation; and

(b) because of the false statement or misrepresentation, the rate at which the allowance was paid to a person was more than it should have been;

the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.

Payment of arrears of periodic compensation payments—suspension or cancellation

"(7) If:

(a) an adverse determination is made in relation to a person because of point 1068A-D11 (payment of arrears of periodic compensation payments); and

(b) the allowance has been paid to the person or the person's partner when, because of the payment of arrears of periodic compensation, the allowance should have been cancelled or suspended;

the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.

Payment of arrears of periodic compensation payments—rate reduction

"(8) If:

(a) an adverse determination is made in relation to a person because of point 1068A-D11 (payment of arrears of periodic compensation payments); and

(b) the rate at which the allowance was paid to the person or the person's partner was, because of the payment of arrears of periodic compensation, more than the rate at which the allowance should have been paid;

the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.

SCHEDULE 1—continued

"Division 10—Bereavement payments

"Subdivision A—Preliminary

Surviving partner and deceased partner

"951V. If:

(a) a person is receiving parenting allowance; and

(b) the person's partner dies;

then, for the purposes of this Division:

(c) the person is the surviving partner; and

(d) the person's partner is the deceased partner.

"Subdivision B—Death of parenting allowance children

Death of parenting allowance children—continuation of qualification for 14 weeks in some cases

"951W.(1) If:

(a) a person is receiving parenting allowance for a dependent child; and

(b) the child dies; and

(c) following the child's death, there is no other dependent child of the person who is a parenting allowance child; and

(d) immediately before the child dies:

(i) the person was receiving additional family payment for the child; or

(ii) the person or the person's partner was receiving a service pension whose rate included a dependent child add-on for the child or guardian allowance in respect of the child;

the person is qualified for parenting allowance in respect of the child, for the period of 14 weeks that starts on the next day after the child's death.

"(2) If a person is qualified under subsection (1), the person's parenting allowance rate during the 14 weeks is to be worked out as if the child had not died.

Death of parenting allowance children—continuation of qualification for 4 weeks

"951X.(1) If:

(a) a person is receiving parenting allowance for a dependent child; and

(b) the child dies; and

(c) following the child's death, there is no other dependent child of the person who is a parenting allowance child; and

SCHEDULE 1—continued

(d) the person is not qualified for parenting allowance under section 951W; the person is qualified for parenting allowance in respect of the child, for the period of 4 weeks that starts on the next day after the child's death.

"(2) If a person is qualified under subsection (1), the person's parenting allowance rate during the 4 weeks is to be worked out as if the child had not died.

"Subdivision C—Death of recipient

Death of recipient of parenting allowance during period for payments under Subdivision B

"951Y. If:

(a) a person is receiving parenting allowance; and

(b) the person dies; and

(c) the person:

(i) was qualified at the time of the person's death for payments under Subdivision B in relation to the death of a parenting allowance child; or

(ii) would have been qualified if the person had not died;

there is payable to the partner of the person an amount equal to the amount of parenting allowance that would have been payable to the person under Subdivision B if the person had not died.

"Subdivision D—Continuation of parenting allowance following death of recipient's partner

Continuation of parenting allowance for bereavement period

"951Z.(1) This section applies if:

(a) a person is receiving a parenting allowance; and

(b) the person's partner dies; and

(c) immediately before the deceased partner died, he or she:

(i) was a long-term social security recipient; or

(ii) was receiving a social security pension, a service pension or a rehabilitation allowance; and

(d) immediately before the deceased partner died, the surviving partner was a long-term social security recipient.

"(2) The surviving partner remains qualified for parenting allowance during the bereavement period as if:

(a) the deceased partner had not died; and

SCHEDULE 1—continued

(b) the deceased partner had continued to receive a social security pension, a service pension, a social security benefit or a rehabilitation allowance; and

(c) the surviving partner and the deceased partner had continued to be members of a couple.

"(3) The surviving partner's parenting allowance rate during the bereavement rate continuation period is the rate that would have been payable to the surviving partner if:

(a) the deceased partner had not died; and

(b) if the couple had been an illness separated couple or a respite care couple—they had not been such a couple.

"(4) The surviving partner's parenting allowance rate during the bereavement lump sum period (if any) is the rate at which parenting allowance would have been payable to the surviving partner if:

(a) he or she had been qualified for newstart allowance; and

(b) he or she was not a member of a couple; and

(c) the appropriate maximum basic rate was worked out under Module B of Benefit Rate Calculator B as if he or she had a dependent child.

Note 1: For 'long-term social security recipient' see subsection 23(1).

Note 2: For 'bereavement period', 'bereavement rate continuation period' and 'bereavement lump sum period' see section 21.

Note 3: For 'illness separated couple' and 'respite care couple' see subsections 4(7) and 4(8) respectively.

"Subdivision E—Bereavement payments for person receiving parenting allowance following death of the person's partner

Qualification for payments under this Subdivision

"951ZA.(1) If:

(a) a person is receiving a parenting allowance; and

(b) the person's partner dies; and

(c) immediately before the deceased partner died, he or she:

(i) was a long-term social security recipient; or

(ii) was receiving a social security pension, a service pension or a rehabilitation allowance; and

(d) immediately before the deceased partner died, the surviving partner was a long-term social security recipient;

SCHEDULE 1—continued

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

Note 1: Section 951ZB provides for the payment to the surviving partner, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the deceased partner during that period if the partner had not died.

Note 2: Section 951ZC provides for payment to the surviving partner of a lump sum that represents the instalments that would have been paid to the deceased partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the deceased partner had not died.

Note 3: For 'bereavement period' see section 21.

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

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

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

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

(c) cannot be withdrawn after the Department has taken all the action required to give effect to that election.

Continued payment of deceased partner's previous entitlement

"951ZB. If a surviving partner is qualified for payments under this Subdivision in relation to the death of the deceased partner, there is payable to the surviving partner, on each of the deceased partner's paydays in the bereavement rate continuation period, an amount equal to the amount that would have been payable to the deceased partner on that payday if he or she had not died.

Note: For 'bereavement rate continuation period' see section 21.

Lump sum payable in some circumstances

"951ZC. If:

(a) a surviving partner is qualified for payments under this Subdivision in relation to the death of the deceased partner; and

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

there is payable to the surviving partner as a lump sum an amount worked out using the following Lump Sum Calculator:

SCHEDULE 1—continued

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

SCHEDULE 1—continued

Note: For 'bereavement period', 'bereavement lump sum period' and 'first available bereavement adjustment payday' see section 21.

Effect of death of surviving partner

"951ZD. If:

(a) a surviving partner is qualified for payments under this Subdivision in relation to the death of the deceased partner; and

(b) the surviving partner dies within the bereavement period; and

(c) the Secretary does not become aware of the death of the deceased partner before the surviving partner dies;

there is payable, as a lump sum, to any person that the Secretary thinks appropriate, an amount worked out using the following Lump Sum Calculator:

SCHEDULE 1—continued

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

SCHEDULE 1—continued

Note: For 'bereavement period' and 'first available bereavement adjustment payday' see section 21.

Matters affecting payments under this Subdivision

"951ZE.(1) If:

(a) the surviving partner is qualified for payments under this Subdivision; and

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

(c) the Secretary is not satisfied that the surviving partner had not had the benefit of that amount;

the following provisions have effect:

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

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

"(2) If:

(a) the surviving partner is qualified for payments under this Subdivision; and

(b) an amount to which the deceased partner would have been entitled if the deceased partner had not died has been paid under this Act or under Part III of the Veterans' Entitlements Act, within the bereavement period, into an account with a bank, credit union or building society (the 'financial institution'); and

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

SCHEDULE 1—continued

the financial institution is, in spite of anything in any other law, not liable to any action, claim or demand by the Commonwealth, the personal representative of the deceased partner or anyone else in respect of the payment of that money to the surviving partner.

Note: For 'bereavement period' see section 21.

"Division 11—Fringe benefits

Fringe benefits

"951ZF.(1) A person is qualified for fringe benefits if:

(a) the person is receiving a benefit parenting allowance; and

(b) at all times during the last 12 months the person has been receiving any of the following:

(i) a social security pension;

(ii) a social security benefit;

(iii) a service pension; and

(c) the person has turned 60; and

(d) the person is an Australian resident or has a qualifying residence exemption for parenting allowance; and

(e) the person is in Australia.

Note 1: For 'benefit parenting allowance' see Module B of the Parenting Allowance Rate Calculator at the end of section 1068A.

Note 2: For 'Australian resident' and 'qualifying residence exemption' see section 7.

"(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.".

SCHEDULE 1—continued

PART 2—THE PARENTING ALLOWANCE RATE CALCULATOR

2. After Part 3.6:

Insert:

"PART 3.6A—PARENTING ALLOWANCE RATE CALCULATOR

Rate of parenting allowance

"1068A. The rate of parenting allowance is to be worked out in accordance with the Rate Calculator at the end of this section.

"PARENTING ALLOWANCE RATE CALCULATOR

"MODULE A—OVERALL RATE CALCULATION PROCESS

Method of calculating rate—general

"1068A-A1. The rate of parenting allowance is a fortnightly rate. There are 2 ways of working out the rate, one for non-benefit parenting allowance (see point 1068A-A2) and the other for benefit parenting allowance (see point 1068A-A3). Use Module B to decide whether a parenting allowance is a non-benefit parenting allowance or a benefit parenting allowance.

Method of calculating rate—non-benefit parenting allowance

"1068A-A2. If the parenting allowance is a non-benefit parenting allowance, the rate of parenting allowance is worked out as follows:

Method of calculating rate—benefit parenting allowance

"1068A-A3. If the parenting allowance is a benefit parenting allowance, the rate of parenting allowance is worked out as follows:

SCHEDULE 1—continued

Note: If a person's rate contains components of pharmaceutical allowance and/or rent assistance but is reduced under Step 3, the order in which the reduction is to be made against the components of the rate of parenting allowance is laid down by section 1207 (maximum basic rate first, then rent assistance).

Maximum payment rate

"1068A-A4. For the purposes of this Act, a person's maximum payment rate of parenting allowance is the sum of:

(a) the person's maximum basic rate (see Module C below); and

(b) the amount per fortnight (if any) of pharmaceutical allowance (see Module E below); and

(c) any applicable additional amount for rent (see Module F below).

"MODULE B—NON-BENEFIT AND BENEFIT PARENTING ALLOWANCES

Non-benefit parenting allowances and benefit parenting allowances

"1068A-B1. The question whether the parenting allowance payable to a person is a non-benefit parenting allowance or a benefit parenting allowance is decided as follows:

SCHEDULE 1—continued

Parenting allowance received by certain persons taken to be non-benefit parenting allowance

"1068A-B2. A person is a person to whom this point applies if:

(a) the person is receiving a social security pension, a service pension or a rehabilitation allowance; or

(b) the person is an aimed services widow or an armed services widower; or

(c) the person's partner is receiving an AUSTUDY allowance that includes a dependent spouse allowance; or

(d) because of the application of subsection 1164(4B), 1164(5B) or 1165(2B), the person's rate of parenting allowance is, or (but for this paragraph) would be, equal to the maximum basic component of parenting allowance under point 1068A-B6.

SCHEDULE 1—continued

Method of working out assets value limit

"1068A-B3. A person's assets value limit is worked out using the following table: work out which situation applies to the person; the assets value limit is the corresponding amount in the appropriate 'assets value limit' column.

Note 1: For 'partnered (partner getting neither pension nor benefit)' and 'partnered (partner getting pension or benefit)' see subsection 4(11).

Note 2: For 'homeowner' see subsection 11(4).

Note 3: If item 1 applies to a person, the value of all the assets of the person's partner are to be taken as being included in the value of the person's assets (see point 1068A-B4)—this is why the assets value limit is so high. If, on the other hand, item 2 applies to a person, the value of the person's assets is only half the combined value of the person's assets and the assets of the person's partner (see point 1068A-B5).

Note 4: If parenting allowance is not payable to a person because of the value of the person's assets, the person may be able to take advantage of provisions dealing with financial hardship (see sections 1131 and 1132).

Note 5: The assets value limits of item 2 are indexed annually in line with CPI increases (see sections 1191 to 1194).

Note 6: The item 1 assets value limits are adjusted annually so that they are twice the corresponding item 2 limits (see subsections 1204(2) and (3)).

Partner not receiving pension or benefit

"1068A-B4. If the person's partner is not receiving a social security pension, a service pension or a social security benefit:

(a) the value of the person's assets includes the value of the partner's assets; and

(b) the value of assets of a particular kind of the person includes the assets of that kind of the partner.

Note: 'Social security pension' includes a sheltered employment or rehabilitation allowance.

SCHEDULE 1—continued

Partner receiving pension or benefit

"1068A-B5. If the person's partner is receiving a social security pension, a service pension or a social security benefit, the value of:

(a) the person's assets is taken to be 50% of the sum of the value of the assets of the person and the value of the assets of the person's partner; and

(b) the person's assets of a particular kind are taken to be 50% of the sum of the value of the assets of that kind of the person and the value of the assets of that kind of the person's partner.

Maximum basic component of parenting allowance

"1068A-B6. For the purposes of this Act, the maximum basic component of parenting allowance is $60 per fortnight.

Note: The amount is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

"MODULE C—MAXIMUM BASIC RATE

Maximum basic rate—non-benefit parenting allowance

"1068A-C1. If the parenting allowance payable to a person is a non-benefit parenting allowance, the person's maximum basic rate is an amount equal to the maximum basic component of parenting allowance under point 1068A-B6.

Maximum basic rate—benefit parenting allowance

"1068A-C2. If the parenting allowance payable to a person is a benefit parenting allowance, the person's maximum basic rate is worked out using Table C. Work out the person's family situation. The maximum basic rate is the corresponding amount in column 3.

Note 1: For 'illness separated couple' and 'partnered (partner in gaol)' see section 4.

Note 2: The rates are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

SCHEDULE 1—continued

"MODULE D—INCOME TEST

Effect of income on maximum payment rate

"1068A-D1. This is how to work out the effect of a person's ordinary income, and (if applicable) the ordinary income of the person's partner, on the person's maximum basic rate:

SCHEDULE 1—continued

Note 1: For 'ordinary income' see section 8.

Note 2: See points 1068A-A2 (Step 3) and 1068A-A3 (Step 3) for the significance of the person's income reduction.

Note 3: the application of the ordinary income test is affected by provisions concerning:

• investment income (sections 1073 to 1099);

• disposal of income (sections 1106 to 1112);

• pensions earnings credit (sections 1113 to 1115);

• benefits earnings credit (sections 1115A to 1115C);

• VEA earnings credit (point 1068A-D3).

Ordinary income of members of certain couples

"1068A-D2. Subject to point 1068A-D3, if a person's partner is receiving a social security pension, a service pension or a rehabilitation allowance, the person's ordinary income is taken to be one half of the sum of:

(a) the amount that would be the person's ordinary income if he or she were not a member of a couple; and

(b) the amount that would be the ordinary income of the person's partner if the partner were not a member of a couple.

Note: Point 1068A-D21 limits the extent to which this way of working out a person's ordinary income can reduce his or her rate of parenting allowance.

Partner's VEA earnings credit to be taken into account

"1068A-D3. If:

(a) the person's partner is receiving a service pension; and

(b) an amount earned by the partner is disregarded under section 49 of the Veterans' Entitlements Act;

that amount is also to be disregarded in working out the ordinary income of the person for the purposes of point 1068A-D2.

SCHEDULE 1—continued

Ordinary income of pensioners, rehabilitation allowees and armed services widows

"1068A-D4. For the purpose of this Module:

(a) the ordinary income of a person who is receiving a social security pension, a service pension or a rehabilitation allowance is taken to include any payment of a social security pension, a service pension or a rehabilitation allowance, other than any part of such a payment by way of rent assistance, pharmaceutical allowance or remote area allowance; and

(b) the ordinary income of an armed services widow is taken to include any payment of a social security pension, a service pension, a social security benefit or a rehabilitation allowance, other than any part of such a payment by way of rent assistance, pharmaceutical allowance or remote area allowance.

Friendly society amounts

"1068A-D5. The ordinary income of a person to whose partner a sickness allowance is payable is not to include any amount received by the person from an approved friendly society in respect of the incapacity because of which the partner is qualified for the sickness allowance.

Note: For 'approved friendly society' see subsection 23(1).

Ordinary income includes certain periodical payments from relatives

"1068A-D6. Subject to point 1068A-D7, in this Module, a person's ordinary income includes a periodical payment or benefit by way of gift or allowance from the father, mother, son, daughter, brother or sister of the person.

Note: Point 1068A-D6 reverses paragraph 8(8)(z) which excludes these amounts.

Board and lodging

"1068A-D7. A person's ordinary income is not to include a payment to the person for board or lodging provided by the person to the person's father, mother, son, daughter, brother or sister.

Termination payments

"1068A-D8. If:

(a) a person's employment has been terminated; and

(b) as a result the person is entitled to a lump sum payment from the person's former employer;

the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.

SCHEDULE 1—continued

Period over which ordinary income taken into account

"1068A-D9. A person's ordinary income is to be taken into account over a period, not exceeding 12 months, determined by the Secretary.

Fortnightly rate of ordinary income

"1068A-D10. For the purposes of this Module, the person's ordinary income for such a period is to be reduced to a fortnightly rate rounded to the nearest cent (rounding 0.5 cents downwards).

Payment of arrears of periodic compensation payments

"1068A-D11. If:

(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving parenting allowance; and

(b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive, on each day falling within the periodic payments period, an amount calculated by dividing the amount received by the number of days in the periodic payments period.

Note: For 'periodic payments period' see section 17.

Partner income free area

"1068A-D12. The partner income free area for a person is:

(a) if the person is not receiving a social security benefit—the amount of income of the person (rounded up to the nearest dollar) beyond which job search allowance would not be payable to the person if the person were qualified for a job search allowance; or

(b) if the person is receiving a social security benefit—the amount of income of the person (rounded up to the nearest dollar) beyond which that benefit would not be payable to the person.

Partner income excess

"1068A-D13. If:

(a) the person's parenting allowance is a benefit parenting allowance; and

(b) the person's partner is not receiving a social security pension, a service pension or a rehabilitation allowance; and

(c) the partner's ordinary income exceeds the partner income free area for the partner;

then:

(d) the person has a partner income excess; and

(e) the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area.

SCHEDULE 1—continued

Partner income reduction

"1068A-D14. Subject to point 1068A-D15, if a person has a partner income excess, the person's partner income reduction is an amount equal to 70% of the part of the partner's ordinary income that exceeds the partner income free area.

Limit on partner income reduction

" 1068A-D15. If the person's maximum basic rate less the amount that, apart from this point, would be the person's partner income reduction does not exceed the maximum basic component of parenting allowance under point 1068A-B6, the person's partner income reduction is taken to be the difference between:

(a) the person's maximum basic rate; and

(b) the maximum basic component of parenting allowance under point 1068A-B6.

Example:

Facts:

Yvonne's partner Bob has an ordinary income of $522. Assume that the partner income free area for Bob under point 1068A-D12 is $462, and that Yvonne's parenting allowance is a benefit parenting allowance.

Application:

Bob's ordinary income exceeds the partner income free area. He therefore has a partner income excess under point 1068A-D13 of $542 – $462 = $80.

Yvonne's partner income reduction under point 1068A-D14 is therefore 70% of $80 = $56. (However, under point 1068A-D15, her partner income reduction cannot exceed the difference between her maximum basic rate and the maximum basic component of parenting allowance under point 1068A-B6.)

Ordinary income free area

"1068A-D16. A person's ordinary income free area is $60.

Ordinary income excess

"1068A-D17. If a person's ordinary income exceeds the person's ordinary income free area:

(a) the person has an ordinary income excess; and

(b) the person's ordinary income excess is the amount by which the person's ordinary income exceeds the person's ordinary income free area.

Ordinary income reduction

"1068A-D18. Subject to point 1068A-D21, if a person has an ordinary income excess, the person's ordinary income reduction is the sum of:

(a) the person's lower range reduction (see point 1068A-D19); and

SCHEDULE 1—continued

(b) the person's upper range reduction (if any) (see point 1068A-D20).

Note: A person's ordinary income reduction may be reduced under point 1068A-D21 if his or her partner is receiving a social security pension, a service pension or a rehabilitation allowance.

Lower range reduction

"1068A-D19. The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed $80.

Upper range reduction

"1068A-D20. The person's upper range reduction is an amount equal to 70% of the part (if any) of the person's ordinary income excess that exceeds $80.

Example:

Facts:

Further to the Example at the end of point 1068A-D15, assume Yvonne's ordinary income is $130. Her partner Bob is not receiving a social security pension, a service pension or a rehabilitation allowance.

Application:

Yvonne's ordinary income free area under point 1068A-D16 is $60.

Her ordinary income exceeds her ordinary income free area. She therefore has an ordinary income excess under point 1068A-D17 of $130 – $60 = $70.

Because her ordinary income excess does not exceed $80:

• her lower range reduction under point 1068A-D19 is 50% of $70 = $35; and

• there is no upper range reduction under point 1068A-D20.

Her ordinary income reduction under point 1068A-D18 is therefore $35.

Yvonne's income reduction referred to in Step 2 of points 1068A-A2 and 1068A-A3 is $56 + $35 = $91.

Alteration of ordinary income reduction for members of certain couples

"1068A-D21. If the person's partner is receiving a social security pension, a service pension or a rehabilitation allowance, use the following Method statement to determine whether what would, apart from this point, be the person's ordinary income reduction should be altered:

SCHEDULE 1—continued

Example:

Facts:

Margaret is receiving parenting allowance. Her partner Reg has an ordinary income of $700. He is receiving a social security pension. Margaret's ordinary income is $80. Assume that Margaret's maximum basic rate under point 1068A-C2 is $268.20, and that the maximum basic component of parenting allowance under point 1068A-B6 is $60.

Application:

Margaret's ordinary income is calculated under point 1068A-D2. (Because Reg is receiving a social security pension, Margaret has no partner income excess under point 1068A-D13.) Her ordinary income is one half of ($700 + $80) = $390.

SCHEDULE 1—continued

Margaret's ordinary income free area under point 1068A-D16 is $60. Her ordinary income exceeds her ordinary income free area. She therefore has an ordinary income excess of $390 – $60 = $330. Because her ordinary income excess exceeds $80:

• her lower range reduction under point 1068A-D19 is 50% of $80 = $40; and

• her upper range reduction under point 1068A-D20 is 70% of $250 = $175.

Disregarding point 1068A-D21, her ordinary income reduction under point 1068-D18 is therefore $40+ $175 = $215.

Applying this ordinary income reduction to Margaret's maximum basic rate yields a result of $268.20 – $215 = $53.20. This is less than the maximum basic component of parenting allowance under point 1068A-B6 ($60). The excess amount under Step 4 of point 1068A-D21 is therefore $60-$53.20 = $6.80.

Margaret's personal income reduction is worked out under Step 5 of point 1068A-D21 as if point 1068A-D2 does not apply and as if Margaret's parenting allowance were a non-benefit parenting allowance. Her ordinary income excess worked out on this basis is $80 – $60 = $20. Because this figure does not exceed $80:

• her lower range reduction under point 1068A-D19 is 50% of $20 = $10; and

• there is no upper range reduction under point 1068A-D20.

Her personal income reduction under point 1068A-D18 is therefore $10.

Margaret's personal income reduction is not less than her excess amount ($6.80). Therefore, under Step 6 of point 1068A-D21, Margaret's ordinary income reduction is $215, being the sum of:

• the difference between her maximum basic rate and the maximum basic component of parenting allowance, that is $268.20 – $60 = $208.20; and

• her excess amount of $6.80.

Margaret's rate of parenting allowance is therefore $268.20 – $215 = $53.20. (This amount may be increased by amounts of pharmaceutical allowance, rent assistance and remote area allowance where appropriate.)

"MODULE E—PHARMACEUTICAL ALLOWANCE

Qualification for pharmaceutical allowance

"1068A-E1. Subject to points 1068A-E2, 1068A-E3, 1068A-E4 and 1068A-E6, an additional amount by way of pharmaceutical allowance is to be added to a person's provisional rate of parenting allowance under Step 4 of point 1068A-A3 if:

(a) the person's parenting allowance is a benefit parenting allowance; and

(b) the person is an Australian resident, or has a qualifying residence exemption for a parenting allowance; and

(c) the person is in Australia; and

(d) the person has turned 60; and

(e) at all times during the last 6 months the person has been receiving any of the following:

(i) a social security pension;

(ii) a social security benefit;

(iii) a service pension.

Note: For "Australian resident' and 'qualifying residence exemption' see section 7.

SCHEDULE 1—continued

No pharmaceutical allowance if person receiving pharmaceutical allowance under the Veterans' Entitlements Act

"1068A-E2. Pharmaceutical allowance is not to be added to a person's maximum basic rate if the person is receiving pharmaceutical allowance under the Veterans' Entitlements Act.

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans' Entitlements Act and not a service pensioner

"1068A-E3. Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

(a) the person's partner is receiving pharmaceutical allowance under the Veterans' Entitlements Act; and

(b) the person's partner is not receiving a service pension.

Note: If paragraphs (a) and(b) apply to the person's partner, the partner is receiving pharmaceutical allowance under the VEA at the higher rate (rather than the person and the person's partner each receiving pharmaceutical allowance at the lower rate).

No pharmaceutical allowance before advance payment period ends

"1068A-E4. Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

(a) the person has received an advance pharmaceutical allowance under:

(i) Part 2.23 of this Act; or

(ii) Division 2 of Part VIIA of the Veterans' Entitlements Act; and

(b) the person's advance payment period has not ended.

Note: For 'advance payment period' see point 1068A-E5.

Advance payment period

"1068A-E5. A person's advance payment period:

(a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

(b) ends after the number of paydays worked out using the following formula have passed:

where:

'amount of advance' is the amount of the advance paid to the person;

'pharmaceutical allowance rate' is the fortnightly amount of pharmaceutical allowance which would be added to the person's provisional rate of parenting allowance under Step 4 of point

SCHEDULE 1—continued

1068A-A3 in working out the parenting allowance instalment for the day on which the advance is paid if parenting allowance were payable to the person and pharmaceutical allowance were to be added to the person's provisional rate of parenting allowance under Step 4 of point 1068A-A3 on that day.

Note: The person may have commenced receiving parenting allowance after having been a pension recipient and have received an advance while a pension recipient.

No pharmaceutical allowance if annual limit reached

"1068A-E6. Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

(a) the person has received an advance pharmaceutical allowance during the current calendar year; and

(b) the total amount paid to the person for that year by way of:

(i) pharmaceutical allowance; and

(ii) advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1: For the amount 'paid' to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2: The annual limit is affected by:

• how long during the calendar year the person was on pension or benefit; and

• whether the person's rate of pharmaceutical allowance varies during the calendar year.

VEA payments taken into account

"1068A-E7. In points 1068A-E5 and 1068A-E6:

'advance pharmaceutical allowance' includes advance pharmaceutical allowance under the Veterans' Entitlements Act;

'pharmaceutical allowance' includes pharmaceutical allowance under the Veterans' Entitlements Act.

Amount of pharmaceutical allowance

"1068A-E8. The amount of pharmaceutical allowance is the amount per fortnight worked out using Table E.

SCHEDULE 1—continued

Note 1: For 'illness separated couple', 'respite care couple', 'partnered' and 'partnered (partner in gaol)' see section 4.

Note 2: The amounts in column 3 are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1206A).

"MODULE F—RENT ASSISTANCE

Rent assistance

"1068A-F1. An amount to help cover the cost of rent is to be added to a person's provisional rate of parenting allowance under Step 4 of point 1068A-A3 for a period if:

(a) the person's parenting allowance is a benefit parenting allowance; and

(b) the person is not an ineligible homeowner; and

(c) the person pays, or is liable to pay, rent (other than Government rent) in respect of the period; and

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

(e) the person is in Australia throughout the period; and

(f) the person's partner is not receiving a rent increased pension; and

(g) neither the person nor the person's partner is qualified for additional family payment for a dependent child of the person.

Note 1: For 'rent', 'Government rent' and 'ineligible homeowner' see section 13.

Note 2: For 'rent threshold rate' see point 1068A-F2.

Note 3: For 'rent increased pension' see point 1068A-F3.

Rent threshold rate

"1068A-F2. A person's rent threshold rate depends on the person's family situation. Work out which family situation in Table F-1 applies to the person. The rent threshold rate is the corresponding amount in column 3.

SCHEDULE 1—continued

Note 1: For 'illness separated couple', 'respite care couple', 'temporarily separated couple' and 'partnered' see section 4.

Note 2: For 'rent increased benefit' see point 1068A-F5.

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

Partner with rent increased pension

"1068A-F3. A person has a partner with a rent increased pension, for the purposes of point 1068A-F1, if:

(a) the partner is living with the person in their home; and

(b) the partner is receiving a social security or service pension; and

(c) the rate of pension is increased to take account of rent.

Note: 'Social security pension' includes a sheltered employment or rehabilitation allowance.

Factors affecting rate of rent assistance

"1068A-F4. The rate of rent assistance depends on:

(a) the fortnightly rent paid or payable by the person; and

(b) whether or not the person has a partner who has a rent increased benefit.

Partner with rent increased benefit

"1068A-F5. A person's partner has a rent increased benefit for the purposes of this Module if the partner:

(a) is living with the person in their home; and

(b) either:

(i) is receiving a social security benefit the rate of which is increased to take account of rent; or

SCHEDULE 1—continued

(ii) would be receiving such a benefit but for the application of the income test under Module H of Benefit Rate Calculator A, Module G of Benefit Rate Calculator B or Module D of this Rate Calculator.

Note: For the treatment of rent paid by a member of a couple see points 1068A-F8 and 1068A-F9.

Rate of rent assistance

"1068A-F6. The rate of rent assistance per fortnight is worked out using Table F-2. Work out the person's family situation and calculate Rate A for the person using the corresponding formula in column 3. This will be the person's rate of rent assistance but only up to the person's maximum rent assistance rate. The person's maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table.

Note 1: For 'illness separated couple', 'respite care couple', 'temporarily separated couple' and 'partnered (partner in gaol)' see section 4.

Note 2: For 'rent increased benefit' see point 1068A-F5.

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

Note 4: The Rate B amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

SCHEDULE 1—continued

Fortnightly rent

"1068A-F7. Fortnightly rent is the fortnightly rent paid or payable by the person whose parenting allowance rate is being calculated.

Rent paid by a person's partner

"1068A-F8. If a person's partner is living with the person in their home, any rent that the person's partner pays or is liable to pay in respect of the home is to be treated as paid or payable by the person.

Rent paid by a member of an illness separated couple

"1068A-F9. If a person is a member of an illness separated couple, any rent that the person's partner pays or is liable to pay in respect of the premises or lodgings occupied by the person is to be treated as paid or payable by the person.

Note: For 'illness separated couple' see section 4.

"MODULE G—REMOTE AREA ALLOWANCE

Remote area allowance—person physically in remote area

"1068A-G1. An amount by way of remote area allowance is to be added to a person's provisional rate of parenting allowance under Step 4 of point 1068A-A3 if:

(a) the person's parenting allowance is a benefit parenting allowance; and

(b) either:

(i) the person's rate of parenting allowance apart from this point is greater than nil; or

(ii) apart from this point the person's rate of benefit would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act or Division 2 of Part VIIA of the Veterans' Entitlements Act; and

(c) the person's usual place of residence is in the remote area; and

(d) the person is physically present in the remote area.

Note 1: For 'remote area' see subsection 14(1).

Note 2: A person may be considered to be physically present in a remote area during temporary absences—see subsection 14(2).

Remote area allowance—partner physically present in remote area

"1068A-G2. An amount by way of remote area allowance is to be added to a person's rate if:

(a) the person's parenting allowance is a benefit parenting allowance; and

SCHEDULE 1—continued

(b) either:

(i) the person's rate of parenting allowance apart from this point is greater than nil; or

(ii) apart from this point the person's rate of benefit would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act or Division 2 of Part VILA of the Veterans' Entitlements Act; and

(c) the person's usual place of residence is in the remote area; and

(d) the person is absent from the remote area for a period exceeding 8 weeks (disregarding the operation of subsection 14(2)); and

(e) the person has a partner whose usual place of residence is in the remote area and who is physically present in the remote area.

Rate of remote area allowance

"1068A-G3. The rate of remote area allowance payable to a person is worked out using Table G. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each AFP child of the person.

Note 1: For 'illness separated couple' and 'partnered (partner in gaol)' see section 4.

Note 2: Item 3 includes illness separated couples.

Meaning of remote area allowance

"1068A-G4. In point 1068A-G3, remote area allowance means:

(a) an amount added to a person's social security pension or benefit by way of remote area allowance; or

SCHEDULE 1—continued

(b) a remote area allowance payable under the following provisions of the VEA:

(i) Service Pension Rate Calculator Where There Are No Dependent Children (point 41-G1);

(ii) Service Pension Rate Calculator Where There Are Dependent Children (point 42-H1);

(iii) Service Pension Rate Calculator For Blinded Veterans (point 43-E1);

(iv) Service Pension Rate Calculator For Widows, Widowers and Non-Illness Separated Spouses (point 44-G1).

In remote area

"1068A-G5. For the purposes of point 1068A-G3, a person is in the remote area if:

(a) the person's usual place of residence is in the remote area; and

(b) the person is physically present in the remote area.

Dependent children must be physically present in Australia

"1068A-G6. Additional allowance is not payable for a dependent child unless the dependent child is physically present in Australia.

Special rule where partner has an AFP child but is not receiving a pension

"1068A-G7. If:

(a) a person who is a member of a couple is qualified for an amount by way of additional allowance; and

(b) the person's partner is not receiving a pension or benefit; and

(c) the person's partner has an AFP child;

the child is taken, for the purposes of this Module, to be an AFP child of the person.

Special rule where partner has an AFP child but is not receiving additional allowance for the AFP child

"1068A-G8. If:

(a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

(b) the person's partner has an AFP child; and

(c) the person's partner is not receiving additional allowance for the AFP child;

the child is taken, for the purposes of this Module, to be an AFP child of the person.".

SCHEDULE 1—continued

PART 3—CONSEQUENTIAL AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

3. Section 3 (Index of definitions):

Omit:

"home child care allowance payday 23(1)".

4. Section 3 (Index of definitions):

Insert the following entries in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):

"benefit parenting allowance 23(1)

maximum basic component of parenting allowance 23(1)

non-benefit parenting allowance 23(1)

parenting allowance payday 23(1)".

5. Subsection 8(1) (definition of "ordinary income"):

Omit the Note added by item 3 of Part 1 of Schedule 1 to the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994, substitute the following Note:

"Note 4: Point 1068A-D4 varies the definition of 'ordinary income'. This varied definition applies only to Module D of the Parenting Allowance Rate Calculator.".

6. Paragraph 8(8)(z) (Note):

Omit "and Benefit Rate Calculator B (point 1068-G5). Points 1067-H6 and 1068-G5", substitute", Benefit Rate Calculator B (point 1068-G5) and the Parenting Allowance Rate Calculator (point 1068A-D6). Points 1067-H6, 1068-G5 and 1068A-D6".

7. Subsection 9(1) (paragraph (b) of the definition of "assessable period"):

After the paragraph, insert:

"or (c) a parenting allowance;".

8. After subsection 11(10):

Insert:

"(10AA) References in subsection (10) to a social security benefit include references to a parenting allowance (whether or not the allowance would apart from this subsection be a social security benefit for the purposes of this Act).".

9. After paragraph ll(10A)(b):

Insert:

"(ba) a parenting allowance; or".

SCHEDULE 1—continued

10. Subsection 12C(5) (paragraph (b) of the definition of "couple's assets deeming provisions"):

After the paragraph, insert:

"(ba) Parenting Allowance Rate Calculator (points 1068A-B4 and 1068A-B5); and".

11. Subsection 17(1) (paragraph (d) of the definition of "compensation affected payment"):

After the paragraph, insert:

"(da) a parenting allowance; or".

12. Paragraph 17(7)(b):

After "benefit payment" insert "(other than a payment of parenting allowance)".

13. After paragraph 17(7) (b):

Insert:

"(c) where the payment is a payment of parenting allowance—a person receiving a payment during the period; or".

14. Subsection 19A(2):

Omit "and (6)", substitute ", (6) and (7)".

15. Paragraphs 19A(4)(a), (5)(a) and (6)(a):

After "benefit" insert "(other than parenting allowance)".

16. Section 19A:

Add at the end:

"(7) If the amount of instalment is an instalment of parenting allowance, the amount of allowance paid is the fortnightly amount of pharmaceutical allowance added to the person's provisional rate of parenting allowance in working out the amount of the instalment.

Note: For the provisional rate of parenting allowance see Step 3 of point 1068A-A3 of the Parenting Allowance Rate Calculator at the end of section 1068A.".

17. Subsection 21(1) (definition of "partner bereavement payment"):

After "771NW" insert ", 951ZB".

18. Subsection 21(1) (definition of "child bereavement payment"):

Omit the definition.

SCHEDULE 1—continued

19. Subsection 23(1) (paragraph (g) of the definition of "assurance of support debt"):

Before the paragraph, insert:

"(fb) parenting allowance under Part 2.18 of this Act; or".

20. Subsection 23(1) (definition of "compensation arrears debt"):

Omit "or 821", substitute ", 821 or 951U".

21. Subsection 23(1) (definition of "newly arrived resident's waiting period"):

Add at the end:

"or (d) a parenting allowance newly arrived resident's waiting period under sections 920 to 922;".

22. Subsection 23(1) (paragraph (b) of the definition of "payday"):

After "benefit" (first occurring) insert "(other than a parenting allowance)".

23. Subsection 23(1) (paragraph (b) of the definition of "payday"):

After the paragraph, insert:

"(ba) if the person is receiving a parenting allowance—a parenting allowance payday; and".

24. Subsection 23(1) (paragraph (n) of the definition of "recipient notification notice"):

Omit the paragraph, substitute:

"(n) section 950 (parenting allowance); or".

25. Subsection 23(1) (paragraph (n) of the definition of "recipient statement notice"):

Omit the paragraph, substitute:

"(n) section 951 (parenting allowance); or".

26. Subsection 23(1) (definition of "social security benefit"):

Add at the end:

"or (f) parenting allowance (other than non-benefit parenting allowance);".

27. Subsection 23(1) (definition of "unused annual leave waiting period"):

Add at the end:

"or (d) a parenting allowance unused annual leave waiting period under sections 923 to 925;".

SCHEDULE 1—continued

28. Subsection 23(1) (definition of "waiting period"):

Add at the end:

"or (1) a parenting allowance newly arrived resident's waiting period under sections 920 to 922; or

(m) a parenting allowance unused annual leave waiting period under sections 923 to 925;".

29. Subsection 23(1) (definition of "home child care allowance payday"):

Omit the definition.

30. Subsection 23(1):

Insert:

" 'benefit parenting allowance' means parenting allowance that, under Module B of the Parenting Allowance Rate Calculator at the end of section 1068A, is a benefit parenting allowance;

'maximum basic component of parenting allowance' has the meaning given in point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A;

'non-benefit parenting allowance' means parenting allowance that, under Module B of the Parenting Allowance Rate Calculator at the end of section 1068A, is a non-benefit parenting allowance;

'parenting allowance payday' means:

(a) the Thursday that falls on 6 July 1995; and

(b) each succeeding alternate Thursday;".

31. Subsection 23(4):

After "social security benefit" insert "(other than a parenting allowance)".

32. After subsection 23(4):

Insert:

"(4AAA) For the purposes of this Act, a person is taken to be receiving a parenting allowance until the last day on which the allowance is payable to the person even if the last instalment of the allowance is paid before that day.".

33. Subsection 23(10):

Omit "or Part 2.14 (sickness allowance)", substitute ", Part 2.14 (sickness allowance) or Part 2.18 (parenting allowance)".

SCHEDULE 1—continued

34. Subsection 37(1):

After "Part 2.17 (family payment)" insert "and Part 2.18 (parenting allowance)".

35. Subsection 37(2):

After "that" insert ", for the purposes of Part 2.17 (family payment), ".

36. Subsection 42(2) (Note):

Omit "and family payment", substitute ", family payment and parenting allowance".

37. Subsection 42(3) (Note 1):

Add at the end "(other than parenting allowance)".

38. Subparagraph 46(2) (a) (i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

39. Subparagraph 100(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

40. Subparagraph 150(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

41. Subparagraph 201(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

42. Subparagraph 255(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

43. Subparagraph 318(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

44. Subparagraph 366(2) (a) (i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

SCHEDULE 1—continued

45. Subparagraph 408CC(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

46. Subparagraph 415(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

47. Subparagraph 533(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

48. Subparagraph 615(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

49. Subparagraph 660XCC(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

50. Subparagraph 689(a)(i):

Omit "or a social security allowance", substitute ", a social security benefit or a parenting allowance".

51. Subparagraph 731(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

52. Subparagraph 771HN(2)(a)(i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

53. Subparagraph 784(2) (a) (i):

Omit "or a social security benefit", substitute ", a social security benefit or a parenting allowance".

54. Subparagraph 1002(2)(a)(i):

Omit "or child disability allowance", substitute ", child disability allowance or parenting allowance".

55. Paragraph 1061Q(3)(a):

Before "or special benefit" insert ", parenting allowance".

SCHEDULE 1—continued

56. Paragraph 1061Q(3A)(a):

After "partner allowance" insert "or parenting allowance".

57. Subsection 1061U(2) (paragraph (b) of the definition of "telephone allowance payday"):

After "social security benefit" insert "(other than parenting allowance)".

58. Subsection 1061U(2) (definition of "telephone allowance payday"):

Add at the end:

"; or (c) if the person is receiving a parenting allowance—the first parenting allowance payday that falls on or after:

(i) 1 January; and

(ii) 20 March; and

(iii) 1 July; and

(iv) 20 September.".

59. Subsection 1072A(1) (Note):

Omit "section 926 (home child care allowance)", substitute "point 1068A-D4 (Parenting Allowance Rate Calculator)".

60. Subsection 1074C(2):

Omit "person's pension or benefit rate", substitute "person's rate".

61. Section 1082:

Omit "person's pension or benefit rate", substitute "person's rate".

62. Paragraphs 1106(2)(a) and (b):

After "benefit, " insert "a parenting allowance, ".

63. Section 1113 (Note):

Add at the end:

"; • Parenting Allowance Rate Calculator (Module D).".

64. Subsection 1115A(1) (Note):

Add at the end:

"; • Parenting Allowance Rate Calculator (Module D).".

65. Point 1115C-A4:

Omit the point, substitute:

SCHEDULE 1—continued

EC accounting periods

"1115C-A4. The earnings credit accounting periods for an account established under section 1115B are:

(a) if the person is not receiving parenting allowance—the fortnights commencing on the first day in each period for which the instalment of the person's social security benefit is payable; or

(b) if the person is receiving parenting allowance:

(i) the fortnight that starts on the first parenting allowance payday on or after 1 July 1995; and

(ii) the succeeding fortnights.".

66. Point 1115C-C1 (Note 2):

Omit "or Module G of Benefit Rate Calculator B", substitute ", Module G of Benefit Rate Calculator B or Module D of the Parenting Allowance Rate Calculator".

67. Paragraphs 1123(2)(a) and (b):

After "benefit" (wherever occurring) insert ", a parenting allowance".

68. After subsection 1131(2):

Insert:

"(2A) In deciding whether a person is receiving, or is eligible to apply for, acceptable alternative Commonwealth income support, a person's receipt of, or eligibility for, non-benefit parenting allowance is to be disregarded.

Note: For non-benefit parenting allowance see Module Bof the Parenting Allowance Rate Calculator at the end of section 1068A.".

69. Subsection 1158(1):

Omit ", special needs pension or home child care allowance", substitute "or special needs pension".

70. Subsection 1158(2):

Omit the subsection.

71. Section 1158 (Note 4):

Omit the Note.

72. Division 2 of Part 3.13 (Heading):

Add at the end "(excluding parenting allowance)".

SCHEDULE 1—continued

73. Section 1160:

After "A social security benefit" insert "(other than parenting allowance)".

74. After Division 2 of Part 3.13:

Insert:

"Division 3—Parenting Allowance

Parenting allowance not payable while person in gaol or in psychiatric confinement following criminal charge

"1162. A parenting allowance is not payable to a person on a parenting allowance payday if:

(a) on that payday, the person is:

(i) in gaol; or

(ii) undergoing psychiatric confinement because the person has been charged with committing an offence; and

(b) that payday is not the first parenting allowance payday and is not the last parenting allowance payday in the period of imprisonment or confinement.

Note 1: For 'parenting allowance payday' see subsection 23(1).

Note 2: For 'in gaol' see subsection 23(5).

Note 3: For 'psychiatric confinement' see subsections 23(8) and (9).".

75. Paragraph 1163(1)(d):

After the paragraph, insert:

"(da) parenting allowance;".

76. Subsection 1164(4A):

Omit "If, substitute "Subject to subsection (4B), if.

77. After subsection 1164(4A):

Insert:

"(4B) Subsection (4A) does not affect the payability of a parenting allowance to the person unless the person's maximum basic rate of parenting allowance exceeds the maximum basic component of parenting allowance.

Note: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A.".

78. Subsection 1164(5A):

Omit "If", substitute "Subject to subsection (5B), if".

SCHEDULE 1—continued

79. After subsection 1164(5A):

Insert:

"(5B) Subsection (5A) does not prevent a parenting allowance being granted to the person unless the person's maximum basic rate of parenting allowance exceeds the maximum basic component of parenting allowance.

Note: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A.".

80. Paragraph 1165(2)(a):

After "compensation affected payment" insert "(other than a parenting allowance)".

81. After subsection 1165(2):

Insert:

"(2A) If:

(a) a person is qualified for a parenting allowance; and

(b) the person receives compensation in the form of a lump sum (whether before or after the person became qualified for the allowance);

parenting allowance is not payable to the person for the lump sum preclusion period.

"(2B) If:

(a) a person is qualified for parenting allowance; and

(b) the person's partner receives compensation in the form of a lump sum (whether before or after the person became qualified for the allowance);

the following provisions have effect:

(c) so far as the person's rate of parenting allowance does not exceed the maximum basic component of parenting allowance component, the allowance continues to be payable to the person for the lump sum preclusion period;

(d) if the person's rate of parenting allowance exceeds the maximum basic component of parenting allowance—the part of the allowance that exceeds the maximum basic component is not payable to the person for the lump sum preclusion period.

Note: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator.".

82. Subsection 1166(2) (Recoverable Amount Table—item 2— column 3):

Add at the end "PgA".

SCHEDULE 1—continued

83. Subsection 1166(2) (Recoverable Amount Table—item 2— column 4):

Add at the end "PgA".

84. Subsection 1166(2) (Recoverable Amount Table—item 3— column 3):

Add at the end "PgA".

85. Subsection 1166(2) (Recoverable Amount Table—item 3— column 4):

Add at the end "PgA".

86. Subsection 1166(2) (Recoverable Amount Table—item 3— column 5):

Omit "subsection (4)", substitute "subsections (4) and (4A)".

87. Subsection 1166(2) (Recoverable Amount Table—Key):

After "YTA = youth training allowance" insert "PgA = parenting allowance".

88. Subsection 1166(2) (Recoverable Amount Table—Key):

Omit "PPBAP = partner's pension, benefit or allowance payments", substitute PPBAP = partner's pension, benefit or allowance payments (but see subsection (4A) in relation to payments of parenting allowance)".

89. Subsection 1166(4):

After "item 3 in the Table" insert "and subsection (4A) does not apply".

90. After subsection 1166(4):

Insert:

"(4A) If:

(a) the person's situation is covered by item 3 in the Table; and

(b) the person's partner is receiving a parenting allowance for some or all of the lump sum preclusion period;

the recoverable amount is equal to the smaller of:

(c) the compensation part of the lump sum; or

(d) the sum of:

(i) the pension, benefit or allowance payments made to the person for the lump sum preclusion period; and

SCHEDULE 1—continued

(ii) the pension, benefit or allowance payments (excluding any payments of parenting allowance) made to the person's partner for the lump sum preclusion period; and

(iii) any payments of parenting allowance in excess of the maximum basic component of parenting allowance made to the person's partner during the lump sum preclusion period.

Note 1: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A.

Note 2: If the partner of a compensation recipient is qualified for or receives parenting allowance, parenting allowance during the lump sum preclusion period may be reduced under subsection 1165(2B).".

91. Subsection 1168(3) (Reduction Table—item 2—column 3):

Add at the end "PgA".

92. Subsection 1168(3) (Reduction Table—item 2—column 4):

Add at the end "PgA".

93. Subsection 1168(3) (Reduction Table—item 3—column 3):

Add at the end "PgA".

94. Subsection 1168(3) (Reduction Table—item 3—column 4):

Add at the end "PgA".

95. Subsection 1168(3) (Reduction Table—item 4—column 3):

Add at the end "PgA".

96. Subsection 1168(3) (Reduction Table—item 4—column 4):

Add at the end "PgA".

97. Subsection 1168(3) (Reduction Table—item 5—column 3):

Add at the end "PgA".

98. Subsection 1168(3) (Reduction Table—item 5—column 4):

Add at the end "PgA".

99. Subsection 1168(3) (Reduction Table—Key):

After "YTA = youth training allowance" insert "PgA = parenting allowance".

100. Subsection 1170(1) (Note):

Omit "or 821(7) and (8) (special needs disability support pension and disability support wife pension)", substitute ", 821(7) and (8) (special needs disability support pension and disability support wife pension) or 951U(7) and (8) (parenting allowance)".

SCHEDULE 1—continued

101. Subsection 1170(2) (Recoverable Amount Table—item 2—column 3):

Add at the end "PgA".

102. Subsection 1170(2) (Recoverable Amount Table—item 2— column 4):

Add at the end "PgA".

103. Subsection 1170(2) (Recoverable Amount Table—item 3— column 3):

Add at the end "PgA".

104. Subsection 1170(2) (Recoverable Amount Table—item 3— column 4):

Add at the end "PgA".

105. Subsection 1170(2) (Recoverable Amount Table—item 3— column 5):

Omit "subsection (4)", substitute "subsections (4) and (4A)".

106. Subsection 1170(2) (Recoverable Amount Table—Key):

After "YTA = youth training allowance" insert "PgA = parenting allowance".

107. Subsection 1170(2) (Recoverable Amount Table—Key):

Omit "PPBAP = partner's pension, benefit or allowance payments", substitute PPBAP = partner's pension, benefit or allowance payments (but see subsection (4A) in relation to payments of parenting allowance)".

108. Subsection 1170(4):

After "item 3 in the Table" insert "and subsection (4A) does not apply".

109. After subsection 1170(4):

Insert:

"(4A) If:

(a) the person's situation is covered by item 3 in the Table; and

(b) the person's partner is receiving a parenting allowance for some or all of the periodic payments period;

SCHEDULE 1—continued

the recoverable amount is equal to the smaller of:

(c) the sum of the amounts of the periodic compensation payments; or

(d) the sum of:

(i) the pension, benefit or allowance payments made to the person for the periodic payments period; and

(ii) the pension, benefit or allowance payments (excluding any payments of parenting allowance) made to the person's partner for the periodic payments period; and

(iii) any payments of parenting allowance in excess of the maximum basic component of parenting allowance made to the person's partner during the periodic payments period.

Note 1: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A.

Note 2: If the partner of a compensation recipient is qualified for or receives parenting allowance, parenting allowance during the periodic payments period may be reduced under subsection 1168(6).".

110. Paragraph 1174(6)(c):

Before "the sum of insert "subject to subsection (6AA), ".

111. After subsection 1174(6):

Insert:

"(6AA) For the purposes of paragraph (6)(c), any payment of parenting allowance payable to the person's partner for the periodic payments period or the lump sum preclusion period is to be disregarded so far as it does not exceed the maximum basic component of parenting allowance.

Note: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A.".

112. Paragraph 1179(6) (c):

Before "the sum of insert "subject to subsection (6AA), ".

113. After subsection 1179(6):

Insert:

"(6AA) For the purposes of paragraph (6)(c), any payment of parenting allowance payable to the person's partner for the periodic payments period or the lump sum preclusion period is to be disregarded so far as it does not exceed the maximum basic component of parenting allowance.

Note: For the maximum basic component of parenting allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the end of section 1068A.".

SCHEDULE 1—continued

114. After subparagraph 1187(lA)(a)(iva):

Insert:

"(v) parenting allowance; or".

115. Section 1190 (Indexed and Adjusted Amounts Table—item 2— column 2):

Add at the end "or for parenting allowance".

116. Section 1190 (Indexed and Adjusted Amounts Table—item 2— column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-C2—Table C—column 3—all amounts]".

117. Section 1190 (Indexed and Adjusted Amounts Table—item 16A):

Omit the item.

118. Section 1190 (Indexed and Adjusted Amounts Table—item 18— column 2):

Add at the end "or for parenting allowance".

119. Section 1190 (Indexed and Adjusted Amounts Table—item 18— column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-F6—Table F-2—column 4—all amounts]".

120. Section 1190 (Indexed and Adjusted Amounts Table—item 18A— column 2):

Add at the end "or for parenting allowance".

121. Section 1190 (Indexed and Adjusted Amounts Table—item 18A— column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-F2—Table F-1—column 3—all amounts]

[Parenting Allowance Rate Calculator—point 1068A-F6—Table F-2—column 3—all amounts]".

122. Section 1190 (Indexed and Adjusted Amounts Table—item 30—column 2):

After "social security benefit" insert "or parenting allowance".

SCHEDULE 1—continued

123. Section 1190 (Indexed and Adjusted Amounts Table—item 30—column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-B3—Table B—column 3A—item 1]".

124. Section 1190 (Indexed and Adjusted Amounts Table—item 31—column 2):

After "social security benefit" insert "or parenting allowance".

125. Section 1190 (Indexed and Adjusted Amounts Table—item 31—column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-B3—Table B—column 3B—item 1]".

126. Section 1190 (Indexed and Adjusted Amounts Table—item 32—column 2):

After "social security benefit" insert "or parenting allowance".

127. Section 1190 (Indexed and Adjusted Amounts Table—item 32—column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-B3—Table B—column 3A—item 2]".

128. Section 1190 (Indexed and Adjusted Amounts Table—item 33—column 2):

After "social security benefit" insert "or parenting allowance".

129. Section 1190 (Indexed and Adjusted Amounts Table—item 33—column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-B3—Table B—column 3B—item 2]".

130. Section 1190 (Indexed and Adjusted Amounts Table—item 47—column 2):

Omit paragraphs (a), (b) and (c), substitute:

"(a) who is receiving a social security benefit and who has a partner; or

(b) who is receiving a parenting allowance".

SCHEDULE 1—continued

131. Section 1190 (Indexed and Adjusted Amounts Table—item 47—column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-E8—Table E—column 3—item 1]".

132. Section 1190 (Indexed and Adjusted Amounts Table—item 49—column 2):

After "social security benefit" insert "or a parenting allowance".

133. Section 1190 (Indexed and Adjusted Amounts Table—item 49—column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-E8—Table E—column 3—items 2 and 3]".

134. Section 1190 (Indexed and Adjusted Amounts Table—item 49B—column 2):

Omit all the words from and including "person who", substitute: "person:

(a) who is receiving a social security benefit and has a partner who is getting a service pension; or

(b) who is receiving a parenting allowance and whose partner is getting a service pension".

135. Section 1190 (Indexed and Adjusted Amounts Table—item 49B— column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-E8—Table E—column 3—item 4]".

136. Section 1190 (Indexed and Adjusted Amounts Table—item 49D— column 2):

Omit paragraphs (a), (b) and (c), substitute:

"(a) who is receiving a social security benefit and has a partner who is in gaol; or

(b) who is receiving a parenting allowance and whose partner is in gaol".

SCHEDULE 1—continued

137. Section 1190 (Indexed and Adjusted Amounts Table—item 49D— column 4):

Add at the end:

"[Parenting Allowance Rate Calculator—point 1068A-E8— Table E—column 3—item 5]".

138. Section 1190 (Indexed and Adjusted Amounts Table):

After item 49D, insert:

"

".

139. Section 1191 (CPI Indexation Table—item 10A):

Omit the item.

140. Section 1191 (CPI Indexation Table):

After item 33 insert:

"

".

141. Subparagraph 1207(1) (b)(i):

Omit "ordinary".

142. Subsection 1207(2) (Table—column 4):

Omit "ordinary".

143. Subsection 1207(2) (Table):

Add at the end:

SCHEDULE 1—continued

"

".

144. Section 1211:

(a) After "social security benefits" insert ", parenting allowance".

(b) Omit", additional family payment and home child care allowance", substitute "and additional family payment".

(c) Omit "906(d)", substitute "905(d)".

145. Section 1211 (Note 4):

Omit the Note, substitute:

"Note 4: A person is taken to satisfy the requirements relating to being in Australia for the purposes of paragraph 905(d) (qualification for parenting allowance) if the person is temporarily absent from Australia for a period of 13 weeks or less.".

146. After subparagraph 1223(2)(b)(x):

Insert:

"(xi) section 917 or 919 (parenting allowance);".

147. Subsections 1223(5) and (6) (Note):

Add at the end "or, in the case of the Parenting Allowance Rate Calculator, is worked out under point 1068A-A4 of the Parenting Allowance Rate Calculator".

148. Paragraph 1223A(1)(a):

After "or benefit" insert ", or a parenting allowance, ".

149. Paragraph 1223A(1)(b):

Omit "or benefit", substitute ", benefit or allowance".

150. Subsection 1223A(3):

Add at the end:

"; (q) section 95 IB (parenting allowance).".

151. Subsection 1223B(2):

Add at the end:

"; (k) section 95IK (parenting allowance).".

SCHEDULE 1—continued

152. Paragraph 1239(1) (b):

Omit "or 5EA", substitute 5EA or 5EB".

153. Subsection 1239(1) (Note):

(a) Omit "950", substitute "951F, 951L".

(b) Omit "951D", substitute "951R".

154. Paragraph 1240(1) (b):

Omit "or 5EA", substitute ", 5EA or 5EB".

155. Section 1240 (Note 1):

(a) Omit "950", substitute "951F, 951L".

(b) Omit "951D", substitute "951R".

156. Section 1247 (Note):

(a) Omit "950", substitute " 951F, 951L".

(b) Omit "951D", substitute "951R".

157. Paragraph 1250(1) (d):

Omit "916, 917", substitute "928, 929, ".

SCHEDULE 1—continued

PART 4—CONSEQUENTIAL AMENDMENTS OF OTHER ACTS

Data-matching Program (Assistance and Tax) Act 1990

158. Section 3 (subparagraph (c)(xxivb) of the definition of "personal assistance"):

After the subparagraph, insert:

"(xxivc) parenting allowance;".

Health Insurance Act 1973

159. Subsection 3(1) (definition of "dependant"):

Add at the end:

"or (d) in relation to a disadvantaged person in respect of whom there is in force a declaration under section 5EB:

(i) a parenting allowance child (within the meaning of Division 1 of Part 2.18 of the Social Security Act 1991) who is an AFP child (within the meaning of that Act); or

(ii) the person's partner (within the meaning of that Act);".

160. After section 5EA:

Insert:

Disadvantaged persons (persons receiving benefit parenting allowance)

"5EB.(1) If:

(a) a person is granted a parenting allowance; and

(b) the allowance is a benefit parenting allowance; and

(c) the person's partner is declared under section 5D to be a disadvantaged person within the meaning of that section in respect of a period; and

(d) there is no declaration in force under this section in respect of the person;

the Secretary must declare the person to be a disadvantaged person within the meaning of this section in respect of the period referred to in paragraph (c).

"(2) If:

(a) a person is granted a parenting allowance; and

(b) the allowance is a benefit parenting allowance; and

SCHEDULE 1—continued

(c) the person's partner is not declared under section 5D to be a disadvantaged person within the meaning of that section; and

(d) there is no declaration in force under this section in respect of the person;

the Secretary must declare the person to be a disadvantaged person within the meaning of this section in respect of the period during which the person is receiving a benefit parenting allowance.

"(3) A declaration under subsection (1) or (2) must be in writing and a notice of it must be given to the person concerned.

"(4) In this section:

'benefit parenting allowance' has the same meaning as in the Social Security Act 1991;

'parenting allowance' means parenting allowance under the Social Security Act 1991;

'Secretary' means the Secretary to the Department of Social Security.".

161. Section 5F:

Omit "sections 5 to 5EA", substitute "sections 5 to 5EB".

162. Subsection 5G(1):

Omit "or 5EA", substitute ", 5EA or 5EB".

Income Tax Assessment Act 1936

163. Section 24AB (Table—after the entry for Newstart allowance):

Insert:

164. Subsection 24ABA(1) (Table—after the entry for Special benefit):

Insert:

"Parenting allowance".

165. Section 24ABXA:

After "Social Security Act 1991", insert ", as in force immediately before the commencement of Schedule 1 to the Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994,".

166. Before section 24ABY:

Insert:

SCHEDULE 1—continued

Parenting allowance

"24ABXB.(1) Payments of non-benefit parenting allowance under Part 2.18 of the Social Security Act 1991 are exempt.

"(2) The treatment of payments of benefit parenting allowance under Part 2.18 of the Social Security Act 1991 is as follows:

(a) the supplementary amount of each payment is exempt;

(b) so much of each payment as:

(i) was included in the payment by way of provisional rate of parenting allowance in accordance with the Method statement in point 1068A-A3 of the Social Security Act 1991; and

(ii) does not exceed the maximum basic component of parenting allowance;

is exempt;

(c) the balance of each payment is not exempt.

"(3) Payments under sections 951Y and 951ZB of the Social Security Act 1991 (which deal with bereavement payments) are exempt.

"(4) If a taxpayer derives a payment under section 951ZC of the Social Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social Security Act 1991 derived by the taxpayer during the bereavement lump sum period as does not exceed the tax-free amount calculated using the exempt bereavement payment calculator AB in section 24ABZD is exempt; and

(b) the balance of the sum is not exempt.".

167. Subsection 159J(5E):

Omit the subsection, substitute:

"(5E) If:

(a) after taking into account any reduction because of the application of any other provision of this section, a rebate is allowable to a taxpayer under this section for a year of income in respect of a dependant who is the spouse of the taxpayer; and

(b) any of the following amounts were paid to the spouse at any time during the year of income:

(i) home child care allowance (within the meaning of the Social Security Act 1991 as in force immediately before the commencement of Schedule 1 to the Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994);

SCHEDULE 1—continued

(ii) parenting allowance (within the meaning of the Social Security Act 1991);

the rebate is to be reduced or further reduced, as the case requires, by the sum of the following amounts:

(c) any home child care allowance;

(d) if any parenting allowance is non-benefit parenting allowance (within the meaning of the Social Security Act 1991)—that non-benefit parenting allowance;

(e) if any parenting allowance is benefit parenting allowance (within the meaning of the Social Security Act 1991)—any part of that allowance that is exempt under paragraph 24ABXB(2)(b) of this Act.".

168. Subsection 159J(6) (paragraph (a) of definition of "separate net income"):

Omit "home child care allowance", substitute "non-benefit parenting allowance".

169. Subsection 159J(6) (paragraph (a) of definition of "separate net income"):

After "Social Security Act 1991", insert "home child care allowance within the meaning of the Social Security Act 1991 as in force immediately before the commencement of Schedule 1 to the Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994".

170. Subsection 159J(6) (after paragraph (a) of definition of "separate net income"):

Insert:

"(aaa) does not include any part of benefit parenting allowance paid under the Social Security Act 1991 that is exempt under paragraph 24ABXB(2)(b) of this Act;".

171. Subsection 160AAA(1) (after paragraph (a) of definition of "rebatable benefit"):

Insert:

"(aa) paid by way of parenting allowance under Part 2.18 of the Social Security Act 1991, to the extent that the amount is not exempt under Division 1AA of this Part; or".

172. Subsection 160AAA(1) (paragraph (b) of definition of "rebatable pension"):

Omit "or 2.15A", substitute ", 2.15A or 2.18".

SCHEDULE 1—continued

173. Subsection 221YA(1):

Insert:

" 'first non-159J(lC) year of income' means the first year of income in respect of which the amount that is taken by section 159HA to replace the amount of $1,000 in relation to dependants included in class 1 in the table in subsection 159J(2) exceeds $1,452;

Note: This definition is called the 'first non-159J(1C) year of income' because, if it applies in relation to a year of income, subsection 159J(1C) will not apply to any taxpayer for that year of income.".

174. Subsection 221YCAA(2) (subparagraph (pa)(iii) of definition of "Qualifying reductions"):

Omit the subparagraph, substitute:

"(iii) if:

(A) the preceding year of income is the 1994-95 year of income or any later year of income; and

(B) that preceding year of income is not the first non-159J(1C) year of income or any later year of income; and

(C) subsection 159J(1C) did not apply in relation to the rebate; 100%; or

(iv) if the preceding year of income is the first non-159J(lC) year of income or any later year of income and neither of the following applies:

(A) on 30 June of that preceding year of income an amount of non-benefit parenting allowance (within the meaning of the Social Security Act 1991), or an amount of benefit parenting allowance (within the meaning of that Act) that was to any extent exempt under paragraph 24ABXB(2)(b), became payable to the spouse;

(B) that 30 June occurred fewer than 14 days after a day on which an amount of such parenting allowance became payable to the spouse;

100%;".

Social Security (Home Child Care and Partner Allowances)
Legislation Amendment Act 1994

175. Paragraph (a) of item 9 of Schedule 1:

Omit the paragraph.

176. Items 13 and 14:

Omit the items.

SCHEDULE 1—continued

PART 5—TRANSITIONAL ARRANGEMENTS FOR PARENTING ALLOWANCE

177. Schedule 1A:

Add at the end (after proposed clause 75):

Recipients etc. of home child care allowance on 30 June 1995

"76.(1) Despite the repeal of Part 2.18 (home child care allowance) on 1 July 1995, on and after that day:

(a) a claim for home child care allowance may still be made in respect of a period that occurred before that day; and

(b) a determination must still be made in relation to:

(i) any proper claim (within the meaning of Division 3 of Part 2.18 as in force at the time the claim was made) for home child care allowance made before 1 July 1995 and not finally determined before that day; and

(ii) any claim of the kind referred to in paragraph (a) that is a proper claim (within the meaning of Division 3 of Part 2.18 as in force immediately before that day) for home child care allowance;

as if Part 2.18 as in force immediately before that day were still in force.

"(2) Subject to subclause (3), if:

(a) a person was receiving home child care allowance immediately before 1 July 1995; or

(b) immediately before 1 July 1995, a determination that home child care allowance be granted to a person was in force, but the allowance had not yet been paid to the person; or

(c) before 1 July 1995, a person made a proper claim (within the meaning of Division 3 of Part 2.18 as in force at the time the claim was made) for home child care allowance, and, on or after 1 July 1995, a determination is made under paragraph (1)(b) that the allowance be granted to the person; or

(d) on or after 1 July 1995, a person made a proper claim (within the meaning of Division 3 of Part 2.18 as in force immediately before that day) for home child care allowance, and, on or after 1 July 1995, a determination is made under paragraph (1)(b) that the allowance be granted to the person;

the person is taken to have made on 1 July 1995 a proper claim (within the meaning of Division 3 of Part 2.18) for parenting allowance.

SCHEDULE 1—continued

"(3) Subclause (2) does not apply if, immediately before 1 July 1995, a declaration under section 938 was in force specifying that the person was to receive a share of the home child care allowance in question that was less than 50%.

"(4) If:

(a) paragraph (2)(d) applies; and

(b) the person is granted parenting allowance as a result of the claim for parenting allowance that he or she is taken to have made; and

(c) his or her provisional commencement day under section 911 for parenting allowance would, apart from this subclause, be on or before 6 July 1995;

his or her provisional commencement day under section 911 for parenting allowance is taken to be 1 July 1995.

"(5) If:

(a) paragraph (2)(d) applies; and

(b) the person is granted parenting allowance as a result of the claim for parenting allowance that he or she is taken to have made; and

(c) his or her provisional commencement day under section 911 for parenting allowance is after 6 July 1995;

parenting allowance is, subject to subclause (6), payable to the person from 1 July 1995.

"(6) Until his or her provisional commencement day under section 911 for parenting allowance, the person's rate of parenting allowance under subclause (5) is to be worked out as if the person's parenting allowance were a non-benefit parenting allowance.

Note: For 'non-benefit parenting allowance' see Module B of the Parenting Allowance Rate Calculator at the end of section 1068A.

"(7) If, immediately before 1 July 1995, the period for which a person had been qualified for home child care allowance under section 951H had not yet expired, the person remains qualified for that allowance after 1 July 1995 until the end of the period as if Part 2.18 as in force immediately before 1 July 1995 were still in force.

"(8) References in this clause relating to a person's entitlement in respect of an allowance (including references to receipt of such an allowance) on a particular day are taken to include references to such an entitlement established by a process of review completed after the day in question.

Note: See Chapter 6 on review of decisions.

SCHEDULE 1—continued

Recipients etc. of partner allowance on 30 June 1995

"77.(1) Despite the amendment of section 771HA by Schedule 3 to the Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994, on and after 1 July 1995:

(a) a claim for partner allowance may still be made, by a person who as at 30 June 1995 had a dependent child who was under 16 years old, in respect of a period that occurred before that day; and

(b) a determination must still be made in relation to:

(i) any proper claim (within the meaning of Division 2 of Part 2.15A) for partner allowance made before 1 July 1995 by a person who as at 30 June 1995 had a dependent child who was under 16 years old and not finally determined before that day; and

(ii) any claim of the kind referred to in paragraph (a) that is a proper claim (within the meaning of that Division) for parenting allowance;

as if Part 2.15A as in force immediately before that day were still in force.

"(2) If a person had, as at 30 June 1995, a dependent child who was under 16 years old, and:

(a) the person was receiving partner allowance immediately before 1 July 1995; or

(b) immediately before 1 July 1995, a determination that partner allowance be granted to the person was in force, but the allowance had not yet been paid to the person; or

(c) before 1 July 1995, the person made a proper claim (within the meaning of Division 2 of Part 2.15A) for partner allowance, and, on or after 1 July 1995, a determination is made under paragraph (1)(b) that the allowance be granted to the person; or

(d) on or after 1 July 1995, the person made a proper claim (within the meaning of Division 2 of Part 2.15A) for partner allowance, and, on or after 1 July 1995, a determination is made under paragraph (1)(b) that the allowance be granted to the person;

the person is taken to have made on 1 July 1995 a proper claim (within the meaning of Division 3 of Part 2.18) for parenting allowance.

"(3) If:

(a) paragraph (2)(d) applies; and

(b) the person is granted parenting allowance as a result of the claim for parenting allowance that he or she is taken to have lodged;

SCHEDULE 1—continued

his or her provisional commencement day under section 911 for parenting allowance is taken to be 1 July 1995.

"(4) If:

(a) a person had, as at 30 June 1995, a dependent child who was under 16 years old; and

(b) a fortnightly instalment of partner allowance was paid to the person between 19 June 1995 and 29 June 1995 (inclusive); and

(c) the person's provisional commencement day for parenting allowance is 1 July 1995;

partner allowance is payable to the person in respect of the period starting on the day after which that instalment was paid and ending immediately before 1 July 1995.

"(5) If:

(a) immediately before 1 July 1995, the period for which a person had been qualified for a payment under Division 9 of Part 2.15A had not yet expired; and

(b) because of the amendment of section 771HA by Schedule 3 to the Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994, on 1 July 1995 the person is no longer qualified for partner allowance;

for the purposes of those payments only, the person is taken to remain qualified for partner allowance after 1 July 1995 until the end of the period.

"(6) References in this clause relating to a person's entitlement in respect of an allowance (including references to receipt of such an allowance) on a particular day are taken to include references to such an entitlement established by a process of review completed after the day in question.

Note: See Chapter 6 on review of decisions.

Claims for parenting allowance before 1 July 1995 or in respect of periods before 1 July 1995

"78.(1) If:

(a) before 1 July 1995, a person makes a claim for parenting allowance; and

(b) if it had been made on or after that day, it would have been a proper claim (within the meaning of Division 3 of Part 2.18 as in force on 1 July 1995) for parenting allowance;

SCHEDULE 1—continued

then:

(c) on the day on which the claim was made, the person is taken to have made a proper claim (within the meaning of Division 3 of Part 2.18 as in force on that day) for home child care allowance; and

(d) on 1 July 1995, the person is taken to have made a proper claim (within the meaning of Division 3 of Part 2.18 as in force on 1 July 1995) for parenting allowance.

"(2) If:

(a) on or after 1 July 1995, a person makes a proper claim (within the meaning of Division 3 of Part 2.18) for parenting allowance; and

(b) the period in respect of which the claim is made commenced before 1 July 1995;

(c) on 30 June 1995, home child care allowance was payable to the person;

then:

(d) on the day on which the period commenced, the person is taken to have made a proper claim (within the meaning of Division 3 of Part 2.18 as in force on that day) for home child care allowance; and

(e) if his or her provisional commencement day under section 911 for parenting allowance is after 6 July 1995—parenting allowance is, subject to subclause (3), payable to the person from 1 July 1995.

"(3) Until his or her provisional commencing day under section 911 for parenting allowance, the person's rate of parenting allowance under paragraph (2)(e) is to be worked out as if the person's parenting allowance were a non-benefit parenting allowance.

Note: For a non-benefit parenting allowance, see Module B of the Parenting Allowance Rate Calculator at the end of section 1068A.

"(4) If:

(a) on or after 1 July 1995, a person makes a proper claim (within the meaning of Division 3 of Part 2.18) for parenting allowance; and

(b) the period in respect of which the claim is made commenced before 1 July 1995;

(c) on 30 June 1995, a partner allowance was payable to the person; then:

(d) on the day on which the period commenced, the person is taken to have made a proper claim (within the meaning of Division 2 of Part 2.15A as in force on that day) for parenting allowance; and

(e) his or her provisional commencement day under section 911 for parenting allowance is taken to be 1 July 1995.".

SCHEDULE 1—continued

Indexing of parenting allowance amounts prior to 1 July 1995

"79.(1) The amounts set out in the provisions of the Parenting Allowance Rate Calculator referred to in column 1 of the following Table are to be indexed on the corresponding days referred to in column 2 of the Table.

"(2) This clause has effect as if section 3 of, and Part 2 of Schedule 1 to, the Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994 had commenced on 31 December 1994.".

____________

 SCHEDULE 2 Section 4

AMENDMENTS RELATING TO INCOME TESTS AND RELATED MATTERS

1. Subsection 8(8):

Add at the end:

"; (zl) if the person:

(i) is receiving a social security benefit and is a member of a couple; or

(ii) is receiving a parenting allowance;

a payment received by the person either directly or indirectly from his or her partner.".

2. Point 1067-A1 (Step 7):

Omit "ordinary".

3. Paragraph 1067-F12(b):

Omit the paragraph, substitute:

"(b) either:

(i) is receiving a job search allowance, youth training allowance, newstart allowance, sickness allowance or partner allowance the rate of which is increased to take account of rent; or

(ii) would be receiving such an allowance but for the amount of the person's ordinary income reduction under point 1067-H14.".

4. Heading to Module H of Benefit Rate Calculator A:

Omit "ORDINARY".

5. Point 1067-H1:

(a) After "person's ordinary income" (first occurring) insert ", and the ordinary income of a partner of the person, ".

(b) Omit Note 1 at the end of Step 1, substitute:

"Note 1: For the treatment of the ordinary income of a partner who is receiving a social security pension or a service pension see points 1067-H2 and 1067-H3.".

(c) Omit Steps 2, 3, 4, 5 and 6, substitute: