Social Security Legislation Amendment Act 1992

No. 81 of 1992

TABLE OF PROVISIONS

PART 1—PRELIMINARY

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

Division 1—Preliminary

Division 2—Telephone allowance

PART 2.25—TELEPHONE ALLOWANCE

Division 1—Qualification for and payability of telephone allowance

Division 2—Rate of telephone allowance

TABLE OF PROVISIONS—continued

Division 3—Payment of telephone allowance

TABLE OF PROVISIONS—continued

TABLE OF PROVISIONS—continued

TABLE OF PROVISIONS—continued

Social Security Legislation Amendment Act 1992

No. 81 of 1992

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

[Assented to 30 June 1992]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the Social Security Legislation Amendment Act 1992.

Commencement

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

(a) Part 1;

(b)     Divisions 1, 4, 6, 7, 9, 10, 12, 13, 15 and 16 of Part 2;

(c)     Division 3 of Part 2 (other than paragraphs 11 (a) and (c) and sections 23, 24, 25, 27, 28, 29 and 31 to 36);

(d)     Division 11 of Part 2 (other than sections 69 to 75);

(e)     section 110;

(f)      Part 3;

(g)  Part 1 of Schedule 1 and Part 1 of Schedule 2; (h) Schedule 3.

(2)    Sections 69 to 75 commence on the day on which this Act receives the Royal Assent, immediately after the commencement of Part 1 of Schedule 1.

(3)    Sections 82 to 99, 101, 103 to 109 and 111 are taken to have commenced on 1 July 1991.

(4)    Part 2 of Schedule 1 and Part 2 of Schedule 2 are taken to have commenced on 1 July 1991.

(5)    Part 3 of Schedule 2 is taken to have commenced on 1 July 1991, immediately after the commencement of Part 1 of Schedule 2 of the Veterans’ Affairs Legislation Amendment Act 1991.

(6)    Division 8 of Part 2 is taken to have commenced on 24 July 1991.

(7)    Division 5 of Part 2 and Part 3 of Schedule 1 are taken to have commenced on 12 November 1991.

(8)    Part 4 of Schedule 1 is taken to have commenced on 12 November 1991, immediately after the commencement of Part 3 of the Social Security (Disability and Sickness Support) Amendment Act 1991.

(9)    Part 4 of Schedule 2 is taken to have commenced on 26 November 1991.

(10)    Sections 100 and 102 and Part 5 of Schedule 1 are taken to have commenced on 13 December 1991, immediately after the commencement of Division 6 of Part 2 of the Social Security Legislation Amendment Act (No. 4) 1991.

(11)    Part 6 of Schedule 1 is taken to have commenced on 12 March 1992.

(12)            Part 7 of Schedule 1 is taken to have commenced on 12 March 1992,            immediately after the commencement of Division 4 of Part 2 of the Social Security Legislation Amendment Act (No. 4) 1991.

(13)  Part 5 of Schedule 2 commences on 30 June 1992.

(14) The following provisions commence on 1 July 1992:

(a) Division 2 of Part 2;

(b)    paragraphs 11(a) and (c) and sections 23, 24, 25, 27, 28, 29 and 31 to 36;

(c)     Part 8 of Schedule 1 and Part 6 of Schedule 2.

(15) Part 7 of Schedule 2 commences on 1 July 1992, immediately after the commencement of sections 76, 82, 87 and 93 of the Social Security Legislation Amendment Act (No. 3) 1991.

Application

3.  The amendment made in Part 6 of Schedule 2 inserting section 24ABZAA in the Income Tax Assessment Act 1936 applies to payments of telephone allowance made on or after 1 July 1992.

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

Division 1—Preliminary

Principal Act

4.  In this Part, “Principal Act” means the Social Security Act 1991¹.

Division 2—Telephone allowance

Family relationships definitions—couples

5.  Section 4 of the Principal Act is amended by inserting after subsection (9) the following subsection:

Temporarily separated couple

“(9A) Two people are members of a temporarily separated couple if they:

(a)     are members of a couple for the purposes of this Act; and

(b)    are legally married to each other; and

(c)     are living separately and apart from each other but not on a permanent basis; and

(d)    are neither an illness separated nor a respite care couple.

Note: for ‘member of a couple’ see subsection 4(2) and section 24.”.

6.  After Part 2.24 of the Principal Act the following Part is inserted in Chapter 2:

“PART 2.25—TELEPHONE ALLOWANCE

“Division 1—Qualification for and payability of telephone allowance

Qualification for telephone allowance

“1061Q.(1) A person is qualified for a telephone allowance if:

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

(b)  either:

(i) the person satisfies the fringe benefits ordinary income test and the fringe benefits assets test; or

(ii) the person is permanently blind; and

(c)  the person is a telephone subscriber.

Note 1: for ‘telephone subscriber’ see subsection (5).

Note 2: to work out whether a person satisfies the fringe benefits ordinary income test, use the Fringe Benefits Ordinary Income Test Calculator at the end of section 1071.

Note 3: to work out whether a person satisfies the fringe benefits assets test, use the Fringe Benefits Assets Test Calculator at the end of section 1072.

“(2) A person is qualified for a telephone allowance if:

(a)     the person is receiving newstart allowance; and

(b)    the person has turned 60; and

(c)     the person is a telephone subscriber.

Note: for ‘telephone subscriber’ see subsection (5).

“(3) A person is qualified for a telephone allowance if:

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

(b)    the person has been receiving:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension;

continuously for the last 12 months; and

(c)     the person has turned 60; and

(d)    the person is a telephone subscriber.

Note: for ‘telephone subscriber’ see subsection (5).

“(4) A person is qualified for a telephone allowance if:

(a)  the person is a person to whom any of the following provisions applies:

(i) paragraph (aaa) or (aab) of the definition of ‘concessional beneficiary’ in subsection 84(1) of the National Health Act 1953;

(ii) section 4AAA of the National Health Act 1953;

(iii) section 146T or 146U of this Act; and

(b)  the person is a telephone subscriber.

Note: for ‘telephone subscriber’ see subsection (5).

“(5) In this section:

‘telephone subscriber’ means:

(a)     a person who has a telephone service connected in Australia in his or her name; or

(b)    a person:

(i) to whom paragraph (a) does not apply; and

(ii) who is a member of a couple (other than an illness

separated, temporarily separated or respite care couple); and

(iii) whose partner has a telephone service connected in Australia in the partner’s name.

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

Telephone allowance not payable in some circumstances

“1061R. Even though a person is qualified for a telephone allowance, the allowance is not payable to the person:

(a)    if the person is absent from Australia; or

(b)    if the person is receiving a telephone allowance under the Veterans’ Entitlements Act or the Seamen’s War Pensions and Allowances Act 1940; or

(c)   if:

(i) the person is a member of a couple (other than an illness separated, temporarily separated or respite care couple); and

(ii) the person’s partner is receiving a telephone allowance because of:

(A)    subsection 118Q(3) of the Veterans’ Entitlements Act; or

(B)    a determination under subsection 5R(1) of the Veterans’ Entitlements Act.

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

Note 2: subsection 118Q(3) of the Veterans’ Entitlements Act covers certain categories of World War 1 veterans.

Note 3: the relevant determination under subsection 5R(1) of the Veterans’ Entitlements Act provides eligibility for telephone allowance to certain categories of World War 1 Australian mariners.

“Division 2—Rate of telephone allowance

Rate of telephone allowance

“1061S.(1) A person’s rate of telephone allowance is worked out using the following Table:

Note: the amounts in column 3 (except the item 2 amount) are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194).

“(2) If item 7 or 8 applies to a person, neither item 2 nor 3 applies to the person.

“(3) Item 2 does not apply to a person if the rate of telephone allowance that would be payable to the person if item 2 applied is less than the rate that would otherwise be payable.

Note: because the item 2 rate is not indexed it may eventually become a lower rate than other rates in the Table.

“(4) In this section:

‘person getting pension or benefit before 12 March 1992’ means a person to whom clause 41 of Schedule 1A applies;

‘person not getting pension or benefit before 12 March 1992’ means a person to whom clause 41 of Schedule 1A does not apply;

 

Note: clause 41 of Schedule 1A applies to people who were receiving social security pension or benefit before 12 March 1992 and who meet certain other conditions.

‘SWPAA’ means the Seamen’s War Pensions and Allowances Act 1940.

“Division 3—Payment of telephone allowance

Commencement of telephone allowance

“1061T. A telephone allowance becomes payable to a person on the first day on which:

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

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

Note 1: for qualification see section 1061Q.

Note 2: for the circumstances in which telephone allowance is not payable see section 1061R.

Payment by instalments

“1061U.(1) A full instalment of telephone allowance is payable to a person on each telephone allowance payday on which:

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

(b)    the allowance is payable to the person.

“(2) In this section:

‘telephone allowance payday’ means:

(a)  if the person is receiving a social security pension—the first pension payday that falls on or after:

(i) 1 January; and

(ii) 20 March; and

(iii) 1 July; and

(iv) 20 September; or

(b)  if the person is receiving a social security benefit—the first payday on which an instalment of the benefit would normally be paid to the person that falls on or after:

(i) 1 January; and

(ii) 20 March; and

(iii) 1 July; and

(iv) 20 September.

Calculation of amount of instalment

“1061V. The amount of an instalment of telephone allowance is the amount worked out by dividing the amount of the annual rate of the telephone allowance by 4.

 

Instalments to be paid to person or nominee

“1061VA.(1) Subject to subsection (3), instalments of a person’s telephone 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 telephone allowance is to be paid to someone else on behalf of the person.

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

Payment into bank account etc.

“1061VB.(1) An amount that is to be paid to a person under section 1061VA is to be paid in the manner 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) Where the person has not nominated an account for the purposes of subsection (2), then, subject to subsections (5) and (7), the amount is not to be paid.

“(5) Where:

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

(b)    the person nominates an account for the purposes of subsection (2);

the amount is to be paid under subsection (2).

“(6) The Secretary may direct that the whole or 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.

Where allowance payday would fall on public holiday etc.

“1061VC. If the Secretary is satisfied that an amount of telephone 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

“1061VD.(1) If:

(a)     a telephone 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 telephone 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 telephone allowance under subsection (1), the Commonwealth has no further liability to any person in respect of that amount of telephone allowance.

“Division 4—Protection of telephone allowance

Telephone allowance to be absolutely inalienable

“1061W.(1) Subject to subsections (2) and (3) and section 1359, telephone 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 telephone allowance payable to a person where 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 pension, benefit or allowance if requested by the Commissioner of Taxation (see section 1359).

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of telephone 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 pension, benefit or allowance.

Effect of garnishee or attachment order

“1061X.(1) If:

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

(b)    instalments of telephone 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.

“Division 5—Recipient obligations

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

“1061Y.(1) The Secretary may give a person to whom a telephone 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.

“(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) 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.

 

“(4) 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.

“(5) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.

“(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: $1,000 or imprisonment for 6 months, or both.

“(7) A person must not, in purporting to comply with a notice under subsection (1), knowingly or recklessly give information that is false or misleading in a material particular.

Penalty: Imprisonment for 2 years.

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

“(8) 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 telephone allowance

“1061Z.(1) The Secretary may give a person to whom a telephone 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) 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 statement notice given under this Act.

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

“(4) 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.

“(5) 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: $1,000 or imprisonment for 6 months, or both.

“(6) A person must not, in purporting to comply with a notice under subsection (1), knowingly or recklessly give information that is false or misleading in a material particular.

Penalty: Imprisonment for 2 years.

Note: subsections 4B(2) and 4B(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.”.

Indexed and adjusted amounts

7. Section 1190 of the Principal Act is amended by adding at the end of the Table the following items:

 

CPI Indexation Table

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

Rounding off indexed amounts

9.  Section 1194 of the Principal Act is amended:

(a)    by omitting from subsection (2) “(5) and (6)”and substituting “(5), (6) and (7)”;

(b)    by omitting from subsection (3) “(5) and (6)” and substituting “(5), (6) and (7)”;

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

“(7) If a provisional indexed amount for a telephone allowance rate is not a multiple of 80 cents, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of 80 cents.”.

10.  After section 1206A of the Principal Act the following section is inserted:

Adjustment of certain telephone allowance rates

“1206B.(1) This Act has effect as if, on 20 September each year, there were substituted for:

(a)     the TA ‘partnered’ (item 4) rate; and

(b)    the TA ‘partnered’ (item 6) rate; and

(c)     the TA ‘partnered’ (item 7) rate;

the amount of the current figure, as at 20 September, for the TA ‘single’ rate.

Note 1: for ‘TA “partnered” (item 4) rate’, ‘TA “partnered” (item 6) rate’ and ‘TA “partnered” (item 7) rate’ see items 52, 54 and 55 of the Indexed and Adjusted Amounts Table in section 1190.

Note 2: for ‘current figure’ see subsection 20(1).

Note 3: for ‘TA “single” rate’ see item 50 of the Indexed and Adjusted Amounts Table in section 1190.

“(2) This Act has effect as if, on 20 September each year, there were substituted for:

(a)     the TA ‘partnered’ (item 3) rate; and

(b)    the TA ‘partnered’ (item 5) rate; and

(c) the TA ‘partnered’ (item 8) rate;

the amount worked out using the following formula:

TA ‘single’ rate

2

where:

‘TA “single” rate’ is the current figure, as at 20 September, for the TA ‘single’ rate.

Note 1 : for ‘TA “partnered” (item 4) rate’, ‘TA “partnered” (item 6) rate’ and ‘TA “partnered” (item 7) rate’ see items 52, 54 and 55 of the Indexed and Adjusted Amounts Table in section 1190.

Note 2: for ‘TA “single” rate’ see item 50 of the Indexed and Adjusted Amounts Table in section 1190.

Note 3: for ‘current figure’ see subsection 20(1).”.

Division 3—Bereavement payments

General definitions

11. Section 23 of the Principal Act is amended:

(a)  by omitting “and (4AA)” from the definition of “receive” in subsection (1) and substituting “, (4AA) and (4AB)”;

(b)  by inserting in subsection (1) the following definitions:

“ ‘long-term social security recipient’, as at a particular time, means:

(a)     a person who, at that time, has had social security recipient status continuously for the previous 52 weeks; or

(b)    a person:

(i) who has not, at that time, had social security recipient status continuously for the previous 52 weeks; and

(ii) who had social security recipient status at the beginning of the previous 52 weeks; and

(iii) who did not lose social security recipient status for more than 6 weeks of the previous 52 weeks;

Note: for ‘social security recipient status’ see subsection 23(1).

‘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;”;

(c)  by inserting after subsection (4AA) the following subsection:

“(4AB) For the purposes of this Act, a person who is receiving a payment under section 592C, 660R, 728X or 771C is taken

 

to be receiving a job search allowance, newstart allowance, sickness allowance or special benefit, as the case may be.”.

Date of effect of favourable determination

12.  Section 80 of the Principal Act is amended:

(a)    by omitting from subsection (5) “subsection (5A)” and substituting “subsections (5A) and (5B)”;

(b)    by inserting after subsection (5A) the following subsection:

“(5B) If:

(a)     the favourable determination is made following the death of the person’s partner; and

(b)    before the partner died, the partner:

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

(ii) was not a long-term social security recipient; and

(c)  within the period of 4 weeks that starts on the day after the day on which the partner dies:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death;

the determination takes effect on the day on which the partner died.

Note 1: for ‘long-term social security recipient’ see subsection 23(1).

Note 2: if the person’s partner is receiving a social security pension or service pension or is a long-term social security recipient, the person is entitled to bereavement payments and this subsection does not apply to the person.”.

Date of effect of favourable determination

13.  Section 146D of the Principal Act is amended:

(a)    by omitting from subsection (5) “subsection (5A)” and substituting “subsections (5A) and (5B)”;

(b)    by inserting after subsection (5A) the following subsection:

“(5B) If:

(a)     the favourable determination is made following the death of the person’s partner; and

(b)    before the partner died, the partner:

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

(ii) was not a long-term social security recipient; and

(c)  within the period of 4 weeks that starts on the day after the day on which the partner dies:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death;

the determination takes effect on the day on which the partner died.

Note 1: for ‘long-term social security recipient’ see subsection 23(1).

Note 2: if the person’s partner is receiving a social security pension or service pension or is a long-term social security recipient, the person is entitled to bereavement payments and this subsection does not apply to the person.”.

Continuation of wife pension for bereavement period

14.  Section 186 of the Principal Act is amended by adding at the end the following Note:

“Note: a person who remains qualified for a wife pension for the bereavement period may, in some circumstances, be automatically transferred to a sole parent pension after the end of the bereavement period without making a claim for that pension (see subsection 259(3)).”.

Date of effect of favourable determination

15.  Section 233 of the Principal Act is amended:

(a)     by omitting from subsection (5) “subsection (5A)” and substituting “subsections (5A) and (5B)”;

(b)    by inserting after subsection (5A) the following subsection:

“(5B) If:

(a)     the favourable determination is made following the death of the person’s partner; and

(b)    before the partner died, the partner:

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

(ii) was not a long-term social security recipient; and

(c)  within the period of 4 weeks that starts on the day after the day on which the partner dies:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death;

the determination takes effect on the day on which the partner died.

Note 1: for ‘long-term social security recipient’ see subsection 23(1).

Note 2: if the person’s partner is receiving a social security pension or service pension or is a long-term social security recipient, the person is entitled to bereavement payments and this subsection does not apply to the person.”.

 

Qualification for payments under this Subdivision

16.  Section 237 of the Principal Act is amended by adding at the end of subsection (1) the following Note:

“Note: a person who is qualified for payments under this Subdivision for the death of the person’s partner may, in some circumstances, be automatically transferred to a sole parent pension after the end of the bereavement period without making a claim for that pension (see subsection 259(4)).”.

Provisional commencement day

17.  Section 255 of the Principal Act is amended:

(a)    by omitting from subsection (1) “(2) and (3)” and substituting “(2), (3), (4) and (5)”;

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

“(5) If a person is not required to make a claim for the sole parent pension because of subsection 259(3) or (4), the person’s provisional commencement day is the day immediately after the end of the bereavement period.”.

Backdating—death of partner

18.  Section 256 of the Principal Act is amended:

(a)  by omitting from paragraph (b) all words after “parent” and substituting:

“pension:

(i) on the day on which the partner dies; or

(ii) within 4 weeks after the day on which the partner dies;”;

(b)  by omitting from the Note “855” and substituting “255”.

Need for a claim

19.  Section 259 of the Principal Act is amended:

(a)    by omitting from subsection (1) “A”, and substituting “Subject to subsections (3) and (4), a”;

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

“(3) If:

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

(b)    the person’s partner dies; and

(c)     immediately before the end of the bereavement period the person is qualified for wife pension; and

(d)    immediately after the end of that period the person is qualified for sole parent pension;

the person does not have to make a claim for the sole parent pension.

“(4) If:

(a) a person is receiving a carer pension for caring for the person’s partner; and

(b)    the person’s partner dies; and

(c)     immediately before the end of the bereavement period the person is qualified for carer pension; and

(d)    immediately after the end of that period the person is qualified for sole parent pension;

the person does not have to make a claim for the sole parent pension.”.

Date of effect of favourable determination

20.  Section 299 of the Principal Act is amended:

(a)    by omitting from subsection (5) “subsection (5A)” and substituting “subsections (5A) and (5B)”;

(b)    by inserting after subsection (5A) the following subsection:

“(5B) If:

(a)     the favourable determination is made following the death of the person’s partner; and

(b)    before the partner died, the partner:

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

(ii) was not a long-term social security recipient; and

(c)  within the period of 4 weeks that starts on the day after the day on which the partner dies:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death;

the determination takes effect on the day on which the partner died.

Note 1: for ‘long-term social security recipient’ see subsection 23(1).

Note 2: if the person’s partner is receiving a social security pension or service pension or is a long-term social security recipient, the person is entitled to bereavement payments and this subsection does not apply to the person.”.

Backdating—death of partner

21.  Section 367 of the Principal Act is amended by omitting from paragraph (b) all words after “widow B” and substituting: “pension:

(i) on the day on which the partner dies; or

(ii) within 4 weeks after the day on which the partner dies;”.

Ordinary waiting period

22.  Section 538 of the Principal Act is amended:

(a) by inserting after paragraph (e) the following paragraph:

“(ea) the following conditions apply:

 

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

(ii) the person’s partner dies;

(iii) immediately before the partner’s death the partner was receiving a social security benefit in relation to which the person was the benefit increase partner;

(iv) within the period of 4 weeks that starts on the day after the day on which the partner dies the former benefit increase partner claims a job search allowance; or”;

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

“Note 7: for ‘benefit increase partner’ see subsection 4(10).”.

23. After Subdivision A of Division 9 of Part 2.11 of the Principal Act the following Subdivision is inserted:

“Subdivision AB—Death of recipient (bereavement payments for benefit increase partner)

Deceased recipient and surviving partner

“592A. If:

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

(b)    the person dies;

then, for the purposes of this Subdivision:

(c)     the person is the deceased recipient; and

(d)    the person’s partner is the surviving partner.

Qualification for payments under this Subdivision

“592B.(1) If:

(a)  immediately before the deceased recipient dies, the recipient:

(i) was receiving a job search allowance; and

(ii) was a long-term social security recipient; and

(b)  the surviving partner was a benefit increase partner in relation to the recipient’s job search allowance;

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

Note: for ‘long-term social security recipient’ see subsection 23(1).

“(2) The surviving partner 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 recipient’s allowance

“592C. If the surviving partner is qualified for payments under this Subdivision, there is payable to the partner:

(a)     on each of the deceased recipient’s paydays in the bereavement rate continuation period an amount equal to the amount that would have been payable to the recipient if the recipient had not died; and

(b)    on each of what would have been the recipient’s paydays in the bereavement lump sum period an amount equal to the amount that would be payable to the partner if:

(i) the partner was not a member of a couple; and

(ii) the partner was receiving job search allowance.

Note: a surviving partner who is receiving payments under this section is taken to be receiving job search allowance (see subsection 23(4AB)).

Lump sum payable in some circumstances

“592D. If:

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

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

there is payable to the partner as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

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

Effect of death of person entitled to payments under this Subdivision

“592E. If:

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

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

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

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

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

Matters affecting payments under this Subdivision

“592F.(1) If:

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

(b)    after the deceased recipient died, an amount to which the recipient would have been entitled if the recipient 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 partner has not had the benefit of that amount;

the following provisions have effect:

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

(e)     the amount payable to the 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)    the amount to which the deceased recipient would have been entitled if the recipient 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 (in this subsection called the ‘financial institution’); and

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

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

Amendment of Subdivision heading

24.  The heading to Subdivision B of Division 9 of Part 2.11 of the Principal Act is amended by adding at the end “(other cases)”.

Death of recipient

25.  Section 592A in Subdivision B of Division 9 of Part 2.11 of the Principal Act is renumbered as section 592G.

Ordinary waiting period

26.  Section 620 of the Principal Act is amended:

(a)  by inserting after paragraph (f) the following paragraph:

“(fa) the following conditions apply:

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

(ii) the person’s partner dies;

(iii) immediately before the partner’s death the partner was receiving a social security benefit in relation to which the person was the benefit increase partner;

(iv) within the period of 4 weeks that starts on the day after the day on which the partner dies the former benefit increase partner claims a newstart allowance; or”;

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

“Note 7: for ‘benefit increase partner’ see subsection 4(10).”.

27.  After Subdivision A of Division 9 of Part 2.12 of the Principal Act the following Subdivision is inserted:

“Subdivision AB—Death of recipient (bereavement payments for benefit increase partner)

Deceased recipient and surviving partner

“660P. If:

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

(b)     the person dies;

then, for the purposes of this Subdivision:

(c)   the person is the deceased recipient; and

(d) the person’s partner is the surviving partner.

Qualification for payments under this Subdivision

“660Q.(1) If:

(a)  immediately before the deceased recipient dies, the recipient:

(i) was receiving a newstart allowance; and

(ii) was a long-term social security recipient; and

(b)  the surviving partner was a benefit increase partner in relation to the recipient’s newstart allowance;

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

Note: for ‘long-term social security recipient’ see subsection 23(1).

“(2) The surviving partner 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 recipient’s allowance

“660R. If the surviving partner is qualified for payments under this Subdivision, there is payable to the partner:

(a)     on each of the deceased recipient’s paydays in the bereavement rate continuation period an amount equal to the amount that would have been payable to the recipient if the recipient had not died; and

(b)    on each of what would have been the recipient’s paydays in the bereavement lump sum period an amount equal to the amount that would be payable to the partner if:

(i) the partner was not a member of a couple; and

(ii) the partner was receiving newstart allowance.

Note: a surviving partner who is receiving payments under this section is taken to be receiving newstart allowance (see subsection 23(4AB)).

Lump sum payable in some circumstances

“660S. If:

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

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

there is payable to the partner as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

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

Effect of death of person entitled to payments under this Subdivision

“660T. If:

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

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

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

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

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

Matters affecting payments under this Subdivision

“660U.(1) If:

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

(b)    after the deceased recipient died, an amount to which the recipient would have been entitled if the recipient 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 partner has not had the benefit of that amount;

the following provisions have effect:

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

(e)     the amount payable to the 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)    the amount to which the deceased recipient would have been entitled if the recipient 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 (in this subsection called the ‘financial institution’); and

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

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

Amendment of Subdivision heading

28.  The heading to Subdivision B of Division 9 of Part 2.12 of the Principal Act is amended by adding at the end “(other cases)”.

Death of recipient

29.  Section 660P in Subdivision B of Division 9 of Part 2.12 of the Principal Act is renumbered as section 660V.

Ordinary waiting period

30.  Section 693 of the Principal Act is amended:

(a)  by inserting after paragraph (d) the following paragraph:

“; or (e) the following conditions apply:

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

(ii) the person’s partner dies;

(iii) immediately before the partner’s death the partner was receiving a social security benefit in relation to which the person was the benefit increase partner;

(iv) within the period of 4 weeks that starts on the day after the day on which the partner dies the former benefit increase partner claims a sickness allowance.”;

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

“Note 3: for ‘benefit increase partner’ see subsection 4(10).”.

31.  After Subdivision A of Division 9 of Part 2.14 of the Principal Act the following Subdivision is inserted:

“Subdivision AB—Death of recipient (bereavement payments for benefit increase partner)

Deceased recipient and surviving partner

“728V. If:

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

(b)    the person dies;

then, for the purposes of this Subdivision:

(c)  the person is the deceased recipient; and

(d) the person’s partner is the surviving partner.

Qualification for payments under this Subdivision

“728W.(1) If:

(a)  immediately before the deceased recipient dies, the recipient:

(i) was receiving a sickness allowance; and

(ii) was a long-term social security recipient; and

(b)  the surviving partner was a benefit increase partner in relation to the recipient’s sickness allowance;

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

Note: for ‘long-terra social security recipient’ see subsection 23(1).

“(2) The surviving partner 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 recipient’s allowance

“728X. If the surviving partner is qualified for payments under this Subdivision, there is payable to the partner:

(a)     on each of the deceased recipient’s paydays in the bereavement rate continuation period an amount equal to the amount that would have been payable to the recipient if the recipient had not died; and

(b)    on each of what would have been the recipient’s paydays in the bereavement lump sum period an amount equal to the amount that would be payable to the partner if:

(i) the partner was not a member of a couple; and

(ii) the partner was receiving sickness allowance.

Note: a surviving partner who is receiving payments under this section is taken to be receiving sickness allowance (see subsection 23(4AB)).

Lump sum payable in some circumstances

“728Y. If:

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

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

there is payable to the partner as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

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

Effect of death of person entitled to payments under this Subdivision

“728Z. If:

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

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

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

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

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

Matters affecting payments under this Subdivision

“728ZA.(1) If:

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

(b)    after the deceased recipient died, an amount to which the recipient would have been entitled if the recipient 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 partner has not had the benefit of that amount;

the following provisions have effect:

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

(e)     the amount payable to the 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)    the amount to which the deceased recipient would have been entitled if the recipient 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 (in this subsection called the ‘financial institution’); and

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

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

Amendment of Subdivision heading

32.  The heading to Subdivision B of Division 9 of Part 2.14 of the Principal Act is amended by adding at the end “(other cases)”.

Death of recipient

33.    Section 728V in Subdivision B of Division 9 of Part 2.14 of the Principal Act is renumbered as section 728ZB.

34.    After Subdivision A of Division 9 of Part 2.15 of the Principal Act the following Subdivision is inserted:

“Subdivision AB—Death of recipient (bereavement payments for benefit increase partner)

Deceased recipient and surviving partner

“771A. If:

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

(b)     the person dies;

then, for the purposes of this Subdivision:

(c)     the person is the deceased recipient; and

(d)     the person’s partner is the surviving partner.

Qualification for payments under this Subdivision

“771B.(1) If:

(a)  immediately before the deceased recipient dies, the recipient:

(i) was receiving a special benefit; and

(ii) was a long-term social security recipient; and

(b)  the surviving partner was a benefit increase partner in relation to the recipient’s special benefit;

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

Note: for ‘long-term social security recipient’ see subsection 23(1).

“(2) The surviving partner 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 recipient’s allowance

“771C. If the surviving partner is qualified for payments under this Subdivision, there is payable to the partner:

(a)     on each of the deceased recipient’s paydays in the bereavement rate continuation period an amount equal to the amount that would have been payable to the recipient if the recipient had not died; and

(b)    on each of what would have been the recipient’s paydays in the bereavement lump sum period an amount equal to the amount that would be payable to the partner if:

(i) the partner was not a member of a couple; and

(ii) the partner was receiving special benefit.

Note: a surviving partner who is receiving payments under this section is taken to be receiving special benefit (see subsection 23(4AB)).

Lump sum payable in some circumstances

“771D. If:

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

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

there is payable to the partner as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

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

Effect of death of person entitled to payments under this Subdivision

“771E. If:

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

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

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

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

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

Matters affecting payments under this Subdivision

“771F.(1) If:

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

(b)    after the deceased recipient died, an amount to which the recipient would have been entitled if the recipient 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 partner has not had the benefit of that amount;

the following provisions have effect:

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

(e)     the amount payable to the 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)    the amount to which the deceased recipient would have been entitled if the recipient 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 (in this subsection called the ‘financial institution’); and

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

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

Amendment of Subdivision heading

35.  The heading to Subdivision B of Division 9 of Part 2.15 of the Principal Act is amended by adding at the end “(other cases)”.

Death of recipient

36.  Section 771A in Subdivision B of Division 9 of Part 2.15 of the Principal Act is renumbered as section 771G.

Date of effect of favourable determination

37.  Section 820 of the Principal Act is amended:

(a)     by omitting from subsection (5) “If and substituting “Subject to subsection (5A), if;

(b)     by inserting after subsection (5) the following subsection:

“(5A) If:

(a)     the favourable determination is made following the death of the person’s partner; and

(b)    before the partner died, the partner:

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

(ii) was not a long-term social security recipient; and

(c)  within the period of 4 weeks that starts on the day after the day on which the partner dies:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death;

the determination takes effect on the day on which the partner died.

Note 1: for ‘long-term social security recipient’ see subsection 23(1).

Note 2: if the person’s partner is receiving a social security pension or service pension or is a long-term social security recipient, the person is entitled to bereavement payments and this subsection does not apply to the person.”.

Division 4—Job search allowance and newstart allowance

Family relationships definitions—children

38.  Section 5 of the Principal Act is amended by omitting Note 1 to subsection (3) and substituting the following Note:

“Note 1: this rule is modified for:

(a)  sole parent pension (see subsection 250(2)); and

(b)  special needs sole parent pension (see subsection 776(2)); and

(c) certain categories of recipients of job search allowance, sickness allowance and newstart allowance (see point 1068-B2).”.

Definitions

39.  Section 23 of the Principal Act is amended:

(a)  by omitting from subsection (1) the definition of “assurance of support debt” and substituting the following definition:

“ ‘assurance of support debt’ means a debt due and payable by a person to the Commonwealth because of the operation of:

(a)    subregulation 165(1) of the Migration Regulations as in force on or before 19 December 1991; or

(b)    Regulation 164C of the Migration Regulations as in force after 19 December 1991; or

(c)    any provision of the Migration Regulations as in force after 19 December 1991 that has substantially the same effect as the regulation referred to in paragraph (b);

in respect of the payment to another person of:

(d)    job search allowance under Part 2.11 of this Act; or

(e)    newstart allowance under Part 2.12 of this Act; or

(f)     special benefit under Part 2.15 of this Act; or

(g)    unemployment benefit under section 116 of the 1947 Act; or

(h) job search allowance under section 117A of the 1947 Act; or

(i) special benefit under section 129 of the 1947 Act;”;

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

“ ‘assurance of support’ means an assurance of support within the meaning of the Migration Regulations.”.

40.  After section 517 of the Principal Act the following section is inserted:

Assurance of support

“517A. A person is not qualified for job search allowance in respect of a period if the Secretary is satisfied that throughout the period:

(a)     an assurance of support was in force in respect of the person (in this section called the ‘assuree’); and

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

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

Note: for ‘assurance of support’ see subsection 23(1).”.

41.  After section 596 of the Principal Act the following section is inserted:

Assurance of support

“596A. A person is not qualified for newstart allowance in respect of a period if the Secretary is satisfied that throughout the period:

(a)     an assurance of support was in force in respect of the person (in this section called the ‘assuree’); and

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

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

Note: for ‘assurance of support’ see subsection 23(1).”.

Job search training supplement

42.  Section 560 of the Principal Act is amended:

(a)    by omitting from subsection (1) “is to” and substituting “may”;

(b)    by omitting subsections (2) and (3) and substituting the following subsections:

“(2) The job search training supplement is made up of one or more of the following:

(a)     an amount to assist with the person’s expenses in undertaking the training (in this section called the ‘training component’);

(b)    an amount to assist with the person’s expenses in living away from the person’s usual residence while undertaking the training (in this section called the ‘living away from home component’);

(c)     an amount to assist with the person’s expenses in maintaining the person’s usual residence while living away from that residence and undertaking the training (in this section called the ‘home base maintenance component’).

“(3) A person is to receive an amount for the training component only if the person has turned 21.

“(4) The maximum amount of the training component is $60.00 per fortnight.

“(5) The maximum amount of the living away from home component is:

(a)     if the person has turned 18—$40.00 per fortnight; or

(b)    if the person has not turned 18—$30.00 per fortnight.

“(6) The maximum amount of the home base maintenance component is $75.80 per fortnight.

“(7) The Employment Secretary is to calculate the amount (if any) of the job search training supplement by determining:

(a) which of the 3 components the person is to receive; and

(b) the appropriate amount for each component that the person is to receive.”.

Newstart training supplement

43.  Section 644 of the Principal Act is amended:

(a)    by omitting from subsection (1) “is to” and substituting “may”;

(b)    by omitting subsections (2) and (3) and substituting the following subsections:

“(2) The newstart training supplement is made up of one or more of the following:

(a)     an amount to assist with the person’s expenses in undertaking the training (in this section called the ‘training component’);

(b)    an amount to assist with the person’s expenses in living away from the person’s usual residence while undertaking the training (in this section called the ‘living away from home component’);

(c)     an amount to assist with the person’s expenses in maintaining the person’s usual residence while living away from that residence and undertaking the training (in this section called the ‘home base maintenance component’).

“(3) A person is to receive an amount for the training component only if the person has turned 21.

“(4) The maximum amount of the training component is $60.00 per fortnight.

“(5) The maximum amount of the living away from home component is $40.00 per fortnight.

“(6) The maximum amount of the home base maintenance component is $75.80 per fortnight.

“(7) The Employment Secretary is to calculate the amount (if any) of the newstart training supplement by determining:

(a)     which of the 3 components the person is to receive; and

(b)    the appropriate amount for each component that the person is to receive.”.

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

44.  Section 1067 of the Principal Act is amended in point 1067-B1 of Benefit Rate Calculator A:

(a)    by omitting from paragraph (c) of item 1 in column 2 of Table B “has turned 16 and”;

(b)    by omitting from paragraph (c) of item 2 in column 2 of Table B “has turned 16 and”.

Rate of job search allowance (18 or over) and newstart allowance and sickness allowance (18 or over)

45.  Section 1068 of the Principal Act is amended in Benefit Rate Calculator B:

(a)     by adding at the end of Note 2 to Table B in point 1068-B1 “and point 1068-B2”;

(b)    by inserting after point 1068-B1 the following point in Module B:

Meaning of “dependent child”

“1068-B2. For the purposes of items 1, 2, 3, 4, 5, 10 and 11 of Table B in point 1068-B1, a young person who has not turned 16 can be a dependent child of a person even though:

(a)     the young person is not in full-time education; and

(b)    the young person is in receipt of income from employment; and

(c)     the rate of that income exceeds $107.70 per week.

Note 1: a young person covered by this point would not normally count as a dependent child (see subsection 5(3)).

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

Indexed and adjusted amounts

46.  Section 1190 of the Principal Act is amended by omitting from column 4 in item 40 of the Indexed and Adjusted Amounts Table:

“[paragraph 839(2)(c)]

[subparagraph 953(b)(ii)]”, and substituting:

“[paragraph 776(2)(c)]

[paragraph 839(2)(c)]

[subparagraph 953(b)(iv)]

[paragraph 1068-B2(c)]”.

Division 5—Sickness allowance

Qualification for sickness allowance

47.  Section 666 of the Principal Act is amended:

(a) by omitting subsection (7) and substituting the following subsection:

“(7) If:

(a)     a person who is incapacitated for work has turned 18; and

(b)    the person was receiving job search allowance immediately before the person became so incapacitated; and

(c)     the Secretary does not expect the person to be incapacitated for a period longer than 6 weeks;

the person is not qualified for sickness allowance under subsection (1) for the period of 6 weeks beginning on the day the person became incapacitated.

Note: a person described in this subsection may continue to be qualified for job search allowance for up to 6 weeks (see subsection 514(3)).”;

(b) by omitting subsection (8) and substituting the following subsection:

“(8) If:

(a)     a person who is incapacitated for work was receiving newstart allowance immediately before the person became so incapacitated; and

(b)    the Secretary does not expect the person to be incapacitated for a period longer than 13 weeks;

the person is not qualified for sickness allowance under subsection (1) for the period of 13 weeks beginning on the day the person became incapacitated.

Note: a person described in this subsection may continue to be qualified for newstart allowance for up to 13 weeks (see subsection 594(2)).”.

Division 6—Special benefit

Qualification for special benefit

48.  Section 729 of the Principal Act is amended:

(a)    by omitting subparagraph (2)(f)(ii);

(b)    by omitting from subparagraph (2)(f)(iii) “that Act” and substituting “the Migration Act 1958”.

Division 7—Income test definitions

Income test definitions

49.  Section 8 of the Principal Act is amended:

(a)     by inserting after paragraph (8)(v) the following paragraph:

“(va) a payment made by the Mark Fitzpatrick Trust to a person by way of assistance with expenses incurred in relation to a person who has medically acquired HIV infection;”;

(b)     by adding at the end of subsection (8) the following paragraph:

“(zk) an amount paid by a buyer under a sale leaseback agreement.”.

Division 8—Certain unlisted property trusts

Market-linked investments made or acquired before 9 September 1988

50.  Section 1082 of the Principal Act is amended:

(a)    by omitting from subsection (1) “If and substituting “Subject to subsection (4), if;

(b)    by omitting from subsection (2) “this section” and substituting “subsection (1)”;

(c)     by adding at the end the following subsections:

 

“(4) This section does not apply to the realisation of a person’s market-linked investment if:

(a)     the investment is in a public unit trust; and

(b)     the trust is a property trust; and

(c)     the trust is not listed on a stock exchange; and

(d)     the person made or acquired the investment before 9 September 1988; and

(e)     the investment is realised on or after 24 July 1991 and before 23 July 1992; and

(f) the investment is realised due to a restructuring of the trust.

“(5) For the purposes of paragraph (4)(f), a person’s investment is realised due to a restructuring if:

(a)     in realising the investment the person exchanges the investment for an investment in another public unit trust that is a property trust; and

(b)    the same manager manages both the investments referred to in paragraph (a).”.

Division 9—Attributed interest

Basic concept—income money and interest received

51. Section 1099B of the Principal Act is amended in the Method statement:

(a)  by inserting after Step 2 the following Note:

“Note: for the treatment of the money of members of a couple see subsection (2A).”;

(b)  by inserting after Step 3 the following Note:

“Note: for the treatment of the money of members of a couple see subsection (2B).”;

(c)  by inserting after Step 4 the following Note:

“Note: for the treatment of the money of members of a couple see subsection (2C).”;

(d)  by inserting after subsection (2) the following subsections:

“(2A) If a person is a member of a couple, to work out the amount of the person’s available money:

(a)     add the person’s available money (if any) and the person’s partner’s available money (if any); and

(b)    divide the result by 2.

“(2B) If a person is a member of a couple, to work out the amount of the person’s deposit money that does not attract interest:

(a) add the person’s deposit money (if any) that does not attract interest and the person’s partner’s deposit money (if any) that does not attract interest; and

(b) divide the result by 2.

“(2C) If a person is a member of a couple, to work out the amount of the person’s deposit money that attracts a particular rate of interest:

(a)     add the person’s deposit money (if any) that attracts that rate of interest and the person’s partner’s deposit money (if any) that attracts that rate of interest; and

(b)    divide the result by 2.”.

Division 10—Special residences and special residents

Assets test definitions

52.  Section 11 of the Principal Act is amended:

(a)    by omitting from subsection (1) the definition of “granny flat interest”;

(b)    by omitting subparagraph (4)(a)(ii) and substituting the following subparagraph:

“(ii) the person’s right or interest in the home gives the person reasonable security of tenure in the home; and”;

(c)  by omitting subparagraph (4)(b)(ii) and substituting the following subparagraph:

“(ii) the person’s right or interest, or the partner’s right or interest, in the home gives the person, or the person’s partner, reasonable security of tenure in the home; and”;

(d)  by omitting subsection (9).

Retirement villages definitions

53.  Section 12 of the Principal Act is amended:

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

“ ‘retirement village resident’ has the meaning given by subsection (5);”;

(b)  by omitting subsections (5) and (6) and substituting the following subsection:

“(5) A person is a retirement village resident if the person’s principal home is in a retirement village.”.

54.  After section 12 of the Principal Act the following sections are inserted:

Granny flat definitions

“12A.(1) In this Act, unless the contrary intention appears:

‘granny flat interest’ has the meaning given by subsection (2);

‘granny flat resident’ has the meaning given by subsection (3).

“(2) A person has a granny flat interest in the person’s principal home if:

(a)     the residence that is the person’s principal home is a private residence; and

(b)    the person has acquired for valuable consideration or has retained:

(i) a right to accommodation for life in the residence; or

(ii) a life interest in the residence.

“(3) A person is a granny flat resident if the person has a granny flat interest in the person’s principal home.

Sale leaseback definitions

“12B.(1) In this Act, unless the contrary intention appears:

‘deferred payment amount’ has the meaning given by subsections (6) and (7);

‘initial payment amount’ has the meaning given by subsection (4);

‘sale leaseback agreement’ has the meaning given by subsections (2) and (3);

‘sale leaseback home’ has the meaning given by subsection (9);

‘sale leaseback resident’ has the meaning given by subsections (10) and (11).

“(2) An agreement is a sale leaseback agreement, in relation to a person, if:

(a)     under the agreement the person agrees to sell his or her principal home; and

(b)    the residence that is the person’s principal home is a private residence; and

(c)     under the agreement the person retains a right to accommodation in the residence; and

(d)    under the agreement the buyer is to pay an amount when the person vacates the residence or when the person dies.

“(3) An agreement is also a sale leaseback agreement if the Secretary is satisfied that the agreement is substantially similar in its effect to an agreement referred to in subsection (2).

“(4) The initial payment amount, in relation to a sale leaseback agreement, is the amount that the Secretary determines to be the initial amount that the buyer is to pay under the sale leaseback agreement.

“(5) In making the determination the Secretary is to have regard to the following:

(a)     the consideration to be provided by the parties to the sale leaseback agreement;

(b)    when that consideration is to be provided;

(c)     the payments that are to be made under the sale leaseback agreement;

(d)     when those payments are to be made;

(e)     any other relevant matters.

“(6) The deferred payment amount, in relation to a sale leaseback agreement, is the total amount to be paid by the buyer under the sale leaseback agreement less the initial payment amount.

“(7) If the Secretary considers that, for any special reason in a particular case, the deferred payment amount should be another amount, the deferred payment amount is that other amount.

Note: sections 1123 to 1128 (disposal of assets) may be relevant to working out the deferred payment amount.

“(8) Without limiting subsection (7), the Secretary may consider that the deferred payment amount should be another amount if:

(a)     the parties to the sale leaseback agreement are not at arm’s length; or

(b)    the parties to the sale leaseback agreement have undervalued the sale leaseback home so as to reduce the total amount to be paid by the buyer under the agreement.

“(9) A residence is a sale leaseback home if the residence is subject to a sale leaseback agreement.

“(10) A person is a sale leaseback resident if:

(a)     the person’s principal home is subject to a sale leaseback agreement; and

(b)    the person is a party to the sale leaseback agreement.

“(11) If a person is a member of a couple, the person is a sale leaseback resident if:

(a)     the person lives in the sale leaseback home; and

(b)    the person’s partner is a sale leaseback resident.

Note: subsection (11) will only be used if a person is not a sale leaseback resident under subsection (10).

Special residence and residents definitions

“12C.(1) In this Act, unless the contrary intention appears:

‘special residence’ has the meaning given by subsection (2);

‘special resident’ has the meaning given by subsection (3).

“(2) A residence is a special residence if the residence is:

(a)     in a retirement village; or

(b)    a granny flat; or

(c)     a sale leaseback home.

“(3) A person is a special resident if the person is:

(a)     a retirement village resident; or

(b)    a granny flat resident; or

(c)     a sale leaseback resident.

“(4) In Division 5 of Part 3.12 (sections 1145A to 1157), a reference to the actual value of the assets of a member of a couple is a reference to the value of the assets that are actually assets of the person rather than the person’s partner, that is, the value that would be the value of the person’s assets apart from the couple’s assets deeming provisions.

“(5) In subsection (4):

‘couple’s assets deeming provisions’ means:

(a)     Pension Rate Calculator A (point 1064-G2); and

(b)     Pension Rate Calculator C (point 1066-G2); and

(c)     section 531; and

(d)     section 602; and

(e)     section 672; and

(f)      subsection 895(2); and

(g)     section 734; and

(h) Fringe Benefits Assets Test Calculator (point 1072-1).”.

Certain assets to be disregarded in calculating the value of a person’s assets

55. Section 1118 is amended:

(a)     by omitting from subparagraph (1)(a)(i) “and”;

(b)     by omitting subparagraph (1)(a)(ii);

(c)     by omitting from subparagraph (1)(b)(i) “and”;

(d)     by omitting subparagraph (1)(b)(ii);

(e)     by inserting after paragraph (1)(g) the following paragraphs:

“(ga) if:

(i) the person has a granny flat interest in the person’s principal home; and

(ii) the person is a person to whom subsection 1150(2), 1151(2), 1152(2), 1152(5), 1153(2), 1154(2), 1155(2), 1156(2) or 1157(2) applies;

the value of the granny flat interest;

Note: a person described in subparagraph (ii) will have acquired or retained the granny flat interest on or after 22 August 1990 (see section 1145A).

(gb) if:

(i) the person is a sale leaseback resident; and

(ii) the person is a person to whom subsection 1150(2), 1151(2), 1152(2), 1152(5), 1153(2), 1154(2), 1155(2), 1156(2) or 1157(2) applies;

 

the value of any right or interest of the person in the sale leaseback home;”;

(f) by omitting “11(9)” from Note 1 to subsection (1) and substituting “12A(2)”.

56.  Section 1145 of the Principal Act is repealed.

Entry contribution

57.  Section 1147 of the Principal Act is amended:

(a) by omitting subsections (1) and (1A) and substituting the following subsections:

“(1) A special resident’s entry contribution is:

(a)     if the resident is not a member of a couple—the resident’s individual residence contribution; or

(b)    if the resident is a member of a couple, shares the resident’s principal home with the resident’s partner and is not a member of an illness separated couple—an amount equal to 50% of the resident’s individual residence contribution and of the partner’s individual residence contribution; or

(c)     if the resident is a member of an illness separated couple—the resident’s individual residence contribution; or

(d)    if:

(i) the resident is a member of an ordinary couple with different principal homes; and

(ii) the principal home of the resident’s partner is not a special residence;

the resident’s individual residence contribution; or

(e)  if:

(i) the resident is a member of an ordinary couple with different principal homes; and

(ii) the principal home of the resident’s partner is also a special residence;

an amount equal to 50% of the resident’s individual residence contribution and of the partner’s individual residence contribution.

“(1A) A special resident’s entry contribution is the resident’s individual residence contribution plus the amount paid, or agreed to be paid, for the resident’s current right (if any) to share the resident’s principal home with a partner if:

(a) the resident was a member of a couple at the time when the resident took up residence in the retirement village or granny flat; and

(b) the resident has ceased to be a member of a couple.

“(1B) A special resident’s entry contribution is the resident’s individual residence contribution if:

(a)     the resident was a member of a couple at the time when the sale leaseback agreement was entered into; and

(b)    the resident has ceased to be a member of a couple.

“(1C) For the purposes of this Division, the individual residence contribution is:

(a)     for a retirement village resident—the total amount paid, or agreed to be paid, for the resident’s current right to live in the retirement village; and

(b)    for a granny flat resident—the total amount paid, or agreed to be paid, for the resident’s current right to live in the granny flat; and

(c)     for a sale leaseback resident—the deferred payment amount.

Note: for ‘deferred payment amount’ see section 12B.

“(1D) For the purposes of paragraph (1C)(b):

(a)  the total amount paid to obtain for a person his or her current right to live in a granny flat is the amount equal to the value of the person’s granny flat interest; and

(b)  the value of a person’s granny flat interest is:

(i) unless subparagraph (ii) applies—the amount paid, or agreed to be paid, for the interest; or

(ii) if the Secretary considers that, for any special reason in any particular case, that value should be another amount—that other amount.”;

(b) by omitting from subsection (2) “subsection (1)” and substituting “subsections (1), (1A) and (1B)”.

Extra allowable amount

58. Section 1148 of the Principal Act is amended by inserting after subsection (2A) the following subsection:

“(2B) A sale leaseback resident’s extra allowable amount is:

(a)     if the resident is not a member of a couple—the amount that, as at the time when the sale leaseback agreement is entered into, is the difference between the pension ‘single’ homeowner AVL and the pension ‘single’ non-homeowner AVL; or

(b)    if the resident is a member of an illness separated couple—the amount that, as at the time when the sale leaseback agreement is entered into, is the difference between the pension ‘single’ homeowner AVL and the pension ‘single’ non-homeowner AVL; or

(c) in any other case—the amount that, as at the time when the sale leaseback agreement is entered into, is the difference between the pension ‘partnered’ homeowner AVL and the pension ‘partnered’ non-homeowner AVL.”.

Residents who are not members of a couple

59.  Section 1150 of the Principal Act is amended:

(a)    by omitting from subsection (1) “retirement village or granny flat” and substituting “special”;

(b)    by omitting from paragraph (2)(a) “retirement village or granny flat” and substituting “special”;

(c)     by omitting from paragraph (3)(a) “retirement village or granny flat” and substituting “special”.

Members of couples

60.  Section 1151 of the Principal Act is amended:

(a)    by omitting from subsection (1) “retirement village or granny flat” and substituting “special”;

(b)    by omitting from paragraph (2)(a) “retirement village or granny flat” and substituting “special”;

(c)     by omitting from paragraph (3)(a) “retirement village or granny flat” and substituting “special”.

Members of illness separated couples (both in special residences)

61.  Section 1152 of the Principal Act is amended:

(a)    by omitting from subsection (1) “retirement village or granny flat” (first occurring) and substituting “special”;

(b)    by omitting from paragraph (1)(b) “retirement village or granny flat” and substituting “special residence”;

(c)     by omitting from paragraph (2)(a) “retirement village or granny flat” and substituting “special”;

(d)    by omitting from paragraph (3)(a) “retirement village or granny flat” and substituting “special”;

(e)     by omitting from paragraph (5)(a) “retirement village or granny flat” and substituting “special”.

Members of illness separated couples (partner not in special residence and partner homeowner)

62.  Section 1153 of the Principal Act is amended:

(a)    by omitting from subsection (1) “retirement village or granny flat” (first occurring) and substituting “special”;

(b)    by omitting from paragraph (1)(b) “in a retirement village or granny flat” and substituting “a special residence”;

(c)     by omitting from paragraph (2)(a) “retirement village or granny flat” and substituting “special”;

(d) by omitting from paragraph (3)(a) “retirement village or granny flat” and substituting “special”.

Members of illness separated couples (partner not in special residence and partner not homeowner)

63.  Section 1154 of the Principal Act is amended:

(a)     by omitting from subsection (1) “retirement village or granny flat” (first occurring) and substituting “special”;

(b)     by omitting from paragraph (1)(b) “in a retirement village or granny flat” and substituting “a special residence”;

(c)     by omitting from paragraph (2)(a) “retirement village or granny flat” and substituting “special”;

(d)     by omitting from paragraph (4)(a) “retirement village or granny flat” and substituting “special”.

Members of ordinary couple with different principal homes (both in special residences)

64.  Section 1155 of the Principal Act is amended:

(a)    by omitting from subsection (1) “retirement village or granny flat” (first occurring) and substituting “special”;

(b)    by omitting from paragraph (1)(b) “in a retirement village or granny flat” and substituting “a special residence”;

(c)     by omitting from paragraph (2)(a) “retirement village or granny flat” and substituting “special”;

(d)    by omitting paragraph (2)(d) and substituting the following paragraph:

“(d) the value of the resident’s principal home is taken to be the resident’s individual residence contribution; and”;

(e)  by omitting paragraph (2)(e) and substituting the following paragraph:

“(e) the value of the partner’s principal home is taken to be the partner’s individual residence contribution; and”;

(f)      by omitting from paragraph (3)(a) “retirement village or granny flat” and substituting “special”;

(g)    by omitting paragraph (3)(d) and substituting the following paragraph:

“(d) the resident’s assets are taken to include an amount equal to the resident’s individual residence contribution; and”;

(h) by omitting paragraph (3)(e) and substituting the following paragraph:

“(e) the partner’s assets are taken to include an amount equal to the partner’s individual residence contribution.”.

Members of ordinary couple with different principal homes (partner not in special residence and partner homeowner)

65.  Section 1156 of the Principal Act is amended:

(a)    by omitting from subsection (1) “retirement village or granny flat” (first occurring) and substituting “special”;

(b)    by omitting from paragraph (1)(b) “in a retirement village or granny flat” and substituting “a special residence”;

(c)     by omitting from subsection (2) “retirement village or granny flat” (first occurring) and substituting “special”;

(d)    by omitting from subparagraph (2)(c)(ii) “in a retirement village or granny flat” and substituting “a special residence”.

Members of ordinary couple with different principal homes (partner not in special residence and partner not homeowner)

66.  Section 1157 of the Principal Act is amended:

(a)    by omitting from subsection (1) “retirement village or granny flat” (first occurring) and substituting “special”;

(b)    by omitting from paragraph (1)(b) “in a retirement village or granny flat” and substituting “a special residence”;

(c)     by omitting from paragraph (2)(a) “retirement village or granny flat” and substituting “special”;

(d)    by omitting from paragraph (3)(a) “retirement village or granny flat” and substituting “special”.

Adjustment of special illness separated special resident AVL

67.  Section 1205 of the Principal Act is amended by omitting “retirement village” and substituting “special”.

Division 11—Compensation recovery

Compensation recovery definitions

68.  Section 17 of the Principal Act is amended:

(a)    by omitting from subparagraph (3)(a)(i) “disease or injury” and substituting “a disease, injury or condition”;

(b)    by omitting from the Note to the definition of “average weekly earnings” in subsection (1) “(6)” and substituting “(5)”;

(c)     by inserting after paragraph (3)(a) the following paragraph:

“(ab) 50% of the payment if the following circumstances apply:

(i) the payment represents that part of a person’s entitlement to periodic compensation payments that the person has chosen to receive in the form of a lump sum; and

(ii) the entitlement to periodic compensation payments arose from the settlement (either with

or without admission of liability) of a claim that is, in whole or in part, related to a disease, injury or condition; and

(iii) the claim was settled, either by consent judgment being entered in respect of the settlement or otherwise, on or after 9 February 1988; or”;

(d)  by inserting after subsection (4) the following subsection:

“(4A) For the purposes of this Act, a payment of arrears of periodic compensation payments is not a lump sum compensation payment.”;

(e)   by omitting paragraph (7)(c).

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

69.  Section 132 of the Principal Act is amended:

(a)    by omitting from subsection (4) “The” and substituting “Subject to subsections (4A) and (4B), the”;

(b)    by inserting after subsection (4A) the following subsection:

“(4B) 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.”.

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

70.  Section 284 of the Principal Act is amended:

(a)    by omitting from subsection (4) “The” and substituting “Subject to subsections (4A) and (4B), the”;

(b)    by inserting after subsection (4A) the following subsection:

“(4B) 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.”.

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

71.  Section 574 of the Principal Act is amended:

(a)    by omitting from subsection (4) “The” and substituting “Subject to subsections (4A) and (4B), the”;

(b)    by inserting after subsection (4A) the following subsection:

“(4B) 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.”.

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

72.  Section 657 of the Principal Act is amended:

(a)    by omitting from subsection (4) “The” and substituting “Subject to subsections (4A) and (4B), the”;

(b)    by inserting after subsection (4A) the following subsection:

“(4B) 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.”.

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

73.  Section 727 of the Principal Act is amended:

(a)    by omitting from subsection (4) “The” and substituting “Subject to subsections (4A) and (4B), the”;

(b)    by inserting after subsection (4A) the following subsection:

“(4B) 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.”.

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

74.  Section 759 of the Principal Act is amended:

(a)    by omitting from subsection (4) “The” and substituting “Subject to subsections (4A) and (4B), the”;

(b)    by inserting after subsection (4A) the following subsection:

“(4B) 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.”.

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

75.  Section 808 of the Principal Act is amended:

(a) by omitting from subsection (4) “The” and substituting “Subject to subsections (4A) and (4B), the”;

(b) by inserting after subsection (4A) the following subsection:

“(4B) 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.”.

Pension, benefit or allowance not payable during lump sum preclusion period

76. Section 1165 of the Principal Act is amended by omitting subsection (3) and substituting the following subsections:

Lump sum preclusion period

“(3) If periodic compensation payments are made in respect of the lost earnings or lost earning capacity, the lump sum preclusion period is the period that:

(a)     begins on the day after the last day of the periodic payments period; and

(b)     ends after the number of weeks specified in subsection (4).

Note: for ‘periodic payments period’ see section 17.

“(3A) If a person chooses to receive part of an entitlement to periodic compensation payments in the form of a lump sum, the lump sum preclusion period is the period that:

(a)     begins on the first day on which the person’s periodic compensation payment is a reduced payment because of that choice; and

(b)    ends after the number of weeks specified in subsection (4).

“(3B) If a person:

(a)     receives compensation in relation to an injury, disease or condition in the form of a lump sum (in this subsection called the ‘first lump sum’); and

(b)    the person receives compensation in the form of a further lump sum (in this subsection called the ‘second lump sum’); and

(c)     the second lump sum is compensation in relation to the same injury, disease or condition;

the lump sum preclusion period for the second lump sum is the period that:

(d)    begins on the day after the last day of the lump sum preclusion period for the first lump sum; and

(e)     ends after the number of weeks specified in subsection (4).

“(3C) If none of subsections (3), (3A) and (3B) applies, the lump sum preclusion period is the period that:

(a)     begins on the day on which the loss of earnings or loss of earning capacity began; and

(b)    ends after the number of weeks specified in subsection (4).”.

77.  After section 1174 of the Principal Act the following section is inserted:

Preliminary notice or recovery notice suspends liability to pay compensation

“1174A. If a compensation payer has been given a preliminary notice under section 1172 or a recovery notice under section 1174 in relation to the compensation payer’s liability, or possible liability, to pay compensation, the compensation payer is not liable to pay that compensation while the notice has effect.”.

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

78.  Section 1180 of the Principal Act is amended by omitting “compensation, the compensation payer is not liable to pay compensation while the notice has effect” and substituting:

“compensation:

(a)  the insurer is not liable to so indemnify the compensation payer; and

(b)  the compensation payer is not liable to pay that compensation; while the notice has effect”.

79.  Schedule 1A of the Principal Act is amended by inserting after clause 25 the following clause:

Compensation payments (changes introduced on 15 June 1988)

“25A. For the purposes of Part 3.14 of this Act, if:

(a)     a person received a compensation payment before 1 May 1987; and

(b)    apart from its date of receipt, the payment would be a payment by way of compensation within the meaning of Part XVII of the 1947 Act, as in force immediately before 1 July 1991; and

(c)     the payment was received by a person who was, immediately before 1 May 1987, qualified to receive a sickness benefit; and

(d)    Division 3A of Part VII of the 1947 Act, as in force at any time before 1 May 1987 (including that Division in its application by virtue of subsection 42(2) of the Social Security and Veterans’ Affairs (Miscellaneous Amendments) Act 1986), does not apply in relation to the sickness benefit;

the compensation payment is taken to have been received on or after 1 May 1987.”.

Division 12—Rounding base for rent assistance

CPI Indexation Table

80.  Section 1191 of the Principal Act is amended in the CPI Indexation Table in subsection (1):

(a)     by omitting from column 6 in item 11 “$2.60” and substituting “$5.20”;

(b)     by omitting from column 6 in item 12 “$0.10” and substituting “$0.20”;

(c)     by omitting from column 6 in item 13 “$0.10” and substituting “$0.20”.

Division 13—International agreements

Agreement with Republic of Austria

81.  The Principal Act is amended by adding at the end the Schedule set out in Schedule 3 to this Act.

Division 14—Debt recovery

Age pension to be absolutely inalienable

82.  Section 66 of the Principal Act is amended:

(a)     by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of age pension 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 pension, benefit or allowance.”.

Disability support pension to be absolutely inalienable

83.  Section 128 of the Principal Act is amended:

(a)     by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of disability support pension 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 pension, benefit or allowance.”.

Wife pension to be absolutely inalienable

84.  Section 170 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of wife pension payable to a woman if she 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 pension, benefit or allowance.”.

Carer pension to be absolutely inalienable

85.  Section 220 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of carer pension 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 pension, benefit or allowance.”.

Sole parent pension to be absolutely inalienable

86.  Section 280 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of sole parent pension 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 pension, benefit or allowance.”.

Widowed person allowance to be absolutely inalienable

87.  Section 339 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of widowed person 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 pension, benefit or allowance.”.

Widow B pension to be absolutely inalienable

88.  Section 387 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of widow B pension payable to a woman if she 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 pension, benefit or allowance.”.

Job search allowance to be absolutely inalienable

89.  Section 571 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of job search 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 pension, benefit or allowance.”.

Newstart allowance to be absolutely inalienable

90.  Section 654 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of newstart 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 pension, benefit or allowance.”.

Sickness allowance to be absolutely inalienable

91.  Section 724 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of sickness 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 pension, benefit or allowance.”.

Special benefit to be absolutely inalienable

92.  Section 757 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of special benefit 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 pension, benefit or allowance.”.

Special needs pension to be absolutely inalienable

93.  Section 806 of the Principal Act is amended:

(a) by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of special needs pension 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 pension, benefit or allowance.”.

Family allowance to be absolutely inalienable

94.  Section 869 of the Principal Act is amended:

(a)     by omitting from subsection ( 1 ) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of family 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 pension, benefit or allowance.”.

Family allowance supplement to be absolutely inalienable

95.  Section 928 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of family allowance supplement 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 pension, benefit or allowance.”.

Child disability allowance to be absolutely inalienable

96.  Section 976 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of child disability 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 pension, benefit or allowance.”.

Double orphan pension to be absolutely inalienable

97.  Section 1019 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of double orphan pension 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 pension, benefit or allowance.”.

Mobility allowance to be absolutely inalienable

98.  Section 1052 of the Principal Act is amended:

(a)    by omitting from subsection (1) “subsection (2)” and substituting “subsections (2) and (3)”;

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

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of mobility 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 pension, benefit or allowance.”.

General effect of Chapter

99.  Section 1222 of the Principal Act is amended:

(a)    by omitting from item 1 in the Table in subsection (2) “1231” and substituting “1231, 1234A”;

(b)    by omitting from item 2 in the Table in subsection (2) “1231” and substituting “1231, 1234A”;

(c)     by omitting from item 3 in the Table in subsection (2) “1231” and substituting “1231, 1234A”;

(d)    by omitting from item 4 in the Table in subsection (2) “1231” and substituting “1231, 1234A”;

(e)     by omitting from item 5 in the Table in subsection (2) “1231” and substituting “1231, 1234A”;

(f)      by omitting from item 6 in the Table in subsection (2) “1231” and substituting “1231, 1234A”;

(g)    by omitting from item 8 in the Table in subsection (2) “1231” and substituting “1231, 1234A”.

General effect of Chapter

100.  Section 1222 of the Principal Act is amended by omitting from item 1A in the Table in subsection (2) “1231” and substituting “1231, 1234A”.

Overpayments arising under this Act

101.  Section 1223 of the Principal Act is amended by omitting paragraph (1)(c) and substituting the following paragraphs:

“(c) if the person is receiving a pension, benefit or allowance under this Act—deductions from that person’s pension, benefit or allowance; or

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

Debts arising from prepayments

102.  Section 1223AA of the Principal Act is amended:

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

“(c) if the person is receiving a social security benefit under this Act—deductions from that person’s benefit; or

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

(b)  by omitting from Note 1 to subsection (1) “section 1231” and substituting “sections 1231 and 1234A”.

Debts arising from automatic termination (transfer to new payment type)

103.  Section 1223A of the Principal Act is amended:

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

“(c) if the person is receiving a pension, benefit or allowance under this Act—deductions from that person’s pension, benefit or allowance; or

(ca) if section 1234A applies to another person who is receiving a pension, benefit or allowance under this

Act—deductions from that other person’s pension, benefit or allowance; or”;

(b)    by omitting from Note 1 to subsection (1) “section 1231” and substituting “sections 1231 and 1234A”;

(c)     by omitting paragraph (2) (c) and substituting the following paragraphs:

“(c) if the person is receiving a pension, benefit or allowance under this Act—deductions from that person’s pension, benefit or allowance; or

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

(d)  by omitting from Note 1 to subsection (2) “section 1231” and substituting “sections 1231 and 1234A”.

Debts arising from automatic rate reductions because of partner starting to receive pension or benefit

104.  Section 1223B of the Principal Act is amended:

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

“(c) if the person is receiving a pension, benefit or allowance under this Act—deductions from that person’s pension, benefit or allowance; or

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

(b)  by omitting from Note 1 to subsection (1) “section 1231” and substituting “sections 1231 and 1234A”.

Debts arising from recipient’s contravention of Act

105.  Section 1224 of the Principal Act is amended:

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

“(a) if the person is receiving a pension, benefit or allowance under this Act—deductions from that person’s pension, benefit or allowance; or

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

(b)  by omitting from Note 1 to subsection (2) “section 1231” and substituting “sections 1231 and 1234A”.

Pension loans scheme debts

106.  Section 1224A of the Principal Act is amended:

(a)  by omitting paragraph (a) and substituting the following paragraphs:

“(a) if the person is receiving a pension, benefit or allowance under this Act—deductions from that person’s pension, benefit or allowance; or

(aa) if section 1234A applies to another person who is receiving a pension, benefit or allowance under this Act-deductions from that other person’s pension, benefit or allowance; or”;

(b)  by omitting from Note 2 “section 1231” and substituting “sections 1231 and 1234A”.

Compensation debts

107.  Section 1225 of the Principal Act is amended:

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

“(a) if the person is receiving a pension, benefit or allowance under this Act—deductions from that person’s pension, benefit or allowance; or

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

(b)  by omitting from Note 2 to subsection (1) “section 1231” and substituting “sections 1231 and 1234A”.

Assurance of support debts

108.  Section 1227 of the Principal Act is amended:

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

“(a) if the person is receiving a pension, benefit or allowance under this Act—deductions from that person’s pension, benefit or allowance; or

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

(b)  by omitting from Note 2 to subsection (2) “section 1231” and substituting “sections 1231 and 1234A”.

109.  Before section 1231 of the Principal Act the following section is inserted in Part 5.3:

Application of sections dealing with deductions

“1231AA. Sections 1231 and 1234A provide for debt recovery by deductions in the following situations:

(a)     section 1231—debt recovery from person who incurred the debt;

(b)    section 1234A—debt recovery by consent from person other than debtor.”.

Deductions from debtor’s pension, benefit or allowance

110.    Section 1231 of the Principal Act is amended by omitting subsection (3).

111.    After section 1234 of the Principal Act the following section is inserted in Part 5.3:

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

“1234A.(1) If:

(a)     a person (in this section called the ‘debtor’) incurs a debt under this Act or the 1947 Act; and

(b)    another person (in this section called the ‘consenting person’) is receiving a pension, benefit or allowance under this Act; and

(c)     for the purpose of the recovery of the debt, the consenting person consents to the deduction of an amount from the consenting person’s pension, benefit or allowance;

the Secretary may deduct the amount from the consenting person’s pension, benefit or allowance.

“(2) The debtor’s debt is reduced by an amount equal to the amount deducted from the consenting person’s pension, benefit or allowance.

“(3) The consenting person may revoke the consent at any time.”.

Division 15—Review of decisions

Application requirements

112.  Section 1257 of the Principal Act is amended by inserting after subsection (1) the following subsection:

“(1A) A person may also apply to the SSAT for review of a decision by sending or delivering a written application to an office of the CES if the decision:

(a)     is about job search allowance or newstart allowance; and

(b)    was made by an officer of the Employment Department.

Note 1: “CES’ means Commonwealth Employment Service (see section 23).

Note 2: for ‘Employment Department’ see section 23.”.

Procedure on receipt of application for review by SSAT

113.  Section 1261 of the Principal Act is amended by omitting subsection (1) and substituting the following subsection:

“(1) If the application is sent or delivered to:

(a)     an office of the Department; or

(b)    an office of the CES;

the Secretary must send the application to the National Convener as soon as practicable and in any case not later than 7 days after the application is received at the office of the Department or the CES.

Note: ‘CES’ means Commonwealth Employment Service (see section 23).”.

Withdrawal of application for review

114.  Section 1274 of the Principal Act is amended:

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

“(2A) A withdrawal may also be made by sending or delivering written notice of withdrawal to an office of the CES if the application is for the review of a decision that:

(a)     is about job search allowance or newstart allowance; and

(b)    was made by an officer of the Employment Department.

Note 1: ‘CES’ means Commonwealth Employment Service (see section 23).

Note 2: for ‘Employment Department’ see section 23.”;

(b)    by inserting in subsection (4) “or subsection (2A)” after “subparagraph (2)(a)(ii)”;

(c)     by adding at the end of subsection (4) “or the CES”.

Division 16—Repeal of abrogation of privilege against self-incrimination

115.  The following sections of the Principal Act are repealed: Sections 70, 134, 174, 224, 286, 343, 391, 576, 659, 728A, 761, 810, 875, 932, 980, 1025, 1056 and 1309.

PART 3—FURTHER AMENDMENTS

Consequential, minor and technical amendments of the Social Security Act

116.  The Social Security Act 1991 is amended as set out in Schedule 1.

Amendments of other Acts

117.  The Acts specified in Schedule 2 are amended as set out in that Schedule.

SCHEDULE 1                                                   Section 116

CONSEQUENTIAL, MINOR AND TECHNICAL AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

PART 1—AMENDMENTS COMMENCING ON ROYAL ASSENT

Paragraph 4(4)(d):

Omit “paragraphs”, substitute “subparagraphs”.

Subsection 23(1) (definition of “exempt income”):

Omit “subsection 23(1)”, substitute “section 23”.

Subsection 23(1) (paragraphs (aa) and (k) of the definition of “waiting period”):

Omit the paragraphs.

Subsection 23(1) (paragraph (i) of the definition of “waiting period”):

Omit “or”.

Subsection 23(1) (paragraph (h) of the definition of “waiting period”):

Omit “689 to 691”, substitute “690 to 692”.

Subsection 46(1):

Omit “and (3)”, substitute “, (3) and (4)”.

Section 46:

Add at the end:

“(4) If a person is not required to make a claim for the age pension because of subsection 48(3), the person’s provisional commencement day is the day on which the person becomes qualified for age pension.”.

Subsection 48(1):

Omit “A”, substitute “Subject to subsection (3), a”.

Section 48:

Add at the end:

“(3) If:

(a)     a person is receiving a social security pension other than an age pension; and

(b)    the person becomes qualified for age pension; and

(c)     the Secretary determines that the person is to be automatically transferred to the age pension;

the person does not have to make a claim for the age pension.”.

SCHEDULE 1—continued

After subsection 68(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 68(5):

After “not” insert “, without reasonable excuse,”.

Subsection 69(5):

After “not” insert “, without reasonable excuse,”.

Section 94:

Add at the end:

“Note: a person who is receiving a disability support pension may be automatically transferred to the age pension if the person becomes qualified for the age pension (see subsection 48(3)).”.

Section 95:

Add at the end:

“Note: a person who is receiving a disability support pension may be automatically transferred to the age pension if the person becomes qualified for the age pension (see subsection 48(3)).”.

After subsection 132(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 132(5):

After “not” insert “, without reasonable excuse,”.

Subsection 133(5):

After “not” insert “, without reasonable excuse,”.

Subsection 147(1):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 147(1)(a):

Omit “is a woman who”.

Paragraphs 147(1A)(a) and (d):

Omit “person’s”, substitute “woman’s”.

SCHEDULE 1—continued

Paragraph 147(1A)(b):

Omit “person or the person’s”, substitute “woman or the woman’s”.

Paragraph 147(1A)(c):

Omit “person”, substitute “woman”.

Section 147:

Add at the end:

“Note: a woman who is receiving a wife pension may be automatically transferred to the age pension if the woman becomes qualified for the age pension (see subsection 48(3)).”.

Subsection 148(1):

Omit “person” (wherever occurring), substitute “woman”.

Paragraphs 148(1)(b) and (ba):

Omit “person’s”, substitute “woman’s”.

Subsection 148(2):

(a)     Omit “person”, substitute “woman”.

(b)    Omit “person’s, substitute “woman’s”.

Section 149:

(a)     Omit “person”, substitute “woman”.

(b)    Omit “person’s, substitute “woman’s”.

Subsection 150(1):

(a)     Omit “person’s”, substitute “woman’s”.

(b)    Omit “person”, substitute “woman”.

Subsection 150(2):

(a)     Omit “person”, (wherever occurring), substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Subsection 150(3):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Subsection 150(4):

(a)     Omit “person”, substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

(c)     Omit “he or she”, substitute “the woman”.

Subsection 150A(1):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s” (wherever occurring), substitute “woman’s”.

SCHEDULE 1—continued

Subsection 150A(2):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s” (wherever occurring), substitute “woman’s”.

Subsection 150A(3):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 150A(3)(a):

Omit “person’s”, substitute “woman’s”.

Subsection 150B(1):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 150B(1)(a):

Omit “person’s”, substitute “woman’s”.

Subsection 150B(2):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 150B(3):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 150B(4):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 151(1):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 151(2):

Omit “person” (wherever occurring), substitute “woman”.

Section 151 (Note 1):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 152(1):

Omit “person”, substitute “woman”.

Subsection 152(2):

Omit “person” (wherever occurring), substitute “woman”.

Section 155:

Omit “person” (wherever occurring), substitute “woman”.

Section 155 (Note 2):

Omit “person”, substitute “woman”.

SCHEDULE 1—continued

Paragraph 157(a):

Omit “person”, substitute “woman”.

Subsection 158(2):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 158(2)(a):

Omit “person’s”, substitute “woman’s”.

Subsection 158(3):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 158(3)(a):

Omit “person’s”, substitute “woman’s”.

Subsection 158(4):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 158(4)(a):

Omit “person’s”, substitute “woman’s”.

Section 159:

Omit “person’s”, substitute “woman’s”.

Section 160:

Omit “person” (wherever occurring), substitute “woman”.

Subsection 161(1):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 161(2):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 162(a):

Omit “person”, substitute “woman”.

Paragraph 162(b):

Omit “person’s”, substitute “woman’s”.

Subsection 163(2):

Omit “person”, substitute “woman”.

Subsection 163(3):

Omit “person”, substitute “woman”.

SCHEDULE 1—continued

Subsection 164(1):

Omit “person” (first occurring), substitute “woman”.

Paragraph 164(1)(a):

(a)     Omit “person’s”, substitute “woman’s”.

(b)    Omit “person” (second occurring), substitute “woman”.

Paragraph 164(1)(b):

Omit “person”, substitute “woman”.

Subsection 165(1):

(a)     Omit “person’s”, substitute “woman’s”.

(b)    Omit “person”, substitute “woman”.

Subsection 165(2):

(a)     Omit “person’s”, substitute “woman’s”.

(b)    Omit “person”, substitute “woman”.

Subsection 166(1):

Omit “person”, substitute “woman”.

Subsection 166(2):

Omit “person”, substitute “woman”.

Subsection 166(3):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 166(4):

Omit “person”, substitute “woman”.

Paragraph 166(5)(b):

Omit “person”, substitute “woman”.

Subsection 166(6):

Omit “person”, substitute “woman”.

Paragraphs 169(1)(a), (b) and (c):

Omit “person”, substitute “woman”.

Paragraph 169(1)(c):

Omit “person’s”, substitute “woman’s”.

Subsection 170(2):

(a)     Omit “person”, substitute “woman”.

(b)    Omit “the recipient”, substitute “she”.

SCHEDULE 1—continued

Subsection 172(1):

Omit “person” (wherever occurring), substitute “woman”.

Paragraphs 172(3)(c) and (d):

Omit “person”, substitute “woman”.

Paragraph 172(4)(b):

Omit “person”, substitute “woman”.

After subsection 172(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 172(5):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    After “not” insert “, without reasonable excuse,”.

Subsection 172(6):

Omit “person”, substitute “woman”.

Subsection 173(1):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 173(2)(d):

Omit “person”, substitute “woman”.

Subsection 173(5):

(a) Omit “person” (wherever occurring), substitute “woman”.

(b) After “not” insert “, without reasonable excuse,”.

Subsection 173(6):

Omit “person”, substitute “woman”.

Subsection 174(1):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 174(2):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 175(1)(a):

Omit “person’s”, substitute “woman’s”.

Paragraph 175(1)(b):

Omit “person”, substitute woman”.

SCHEDULE 1—continued

Section 175A:

Omit “person” (wherever occurring), substitute “woman”.

Section 175B:

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 175B(a):

Omit “person’s”, substitute “woman’s”.

Paragraphs 176(a), (b) and (d):

Omit “person”, substitute “woman”.

Subparagraphs 176(e)(i) and (ii):

Omit “person”, substitute “woman”.

Section 176:

Omit “person” (second last and last occurring), substitute “woman”.

Section 176 (Note):

(a)     Omit “person”, substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Paragraphs 177(a), (b) and (d):

Omit “person”, substitute “woman”.

Subparagraphs 177(e)(i) and (ii):

Omit “person”, substitute “woman”.

Section 177:

Omit “person” (last occurring), substitute “woman”.

Paragraphs 178(a), (b) and (d):

Omit “person”, substitute “woman”.

Paragraph 178(e):

Omit “person’s”, substitute “woman’s”.

Section 178:

Omit “person” (last occurring), substitute “woman”.

Paragraphs 179(a), (b), (c) and (d):

Omit “person”, substitute “woman”.

Section 179:

(a)     Omit “person” (last occurring), substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

SCHEDULE 1—continued

Section 182:

Omit “person”, substitute “woman”.

Section 182 A:

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 182B(a):

Omit “person”, substitute “woman”.

Paragraph 183(1)(a):

Omit “person’s”, substitute “woman’s”.

Subparagraphs 183(1)(c)(i) and (ii):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 183(1):

Omit “person” (last occurring), substitute “woman”.

Paragraph 184(2)(a):

Omit “person’s”, substitute “woman’s”.

Paragraphs 184(2)(b) and (c):

Omit “person” (wherever occurring), substitute “woman”.

Paragraphs 184(3)(b) and (c):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 184(3):

Omit “person” (last occurring), substitute “woman”.

Paragraphs 184(4)(b) and (c):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 184(5)(a):

Omit “person”, substitute “woman”.

Paragraph 184(5)(b):

Omit “person’s” substitute “woman’s”.

Paragraph 185(4)(a):

Omit “person”, substitute “woman”.

Subsection 185(5):

Omit “person” (wherever occurring), substitute “woman”.

SCHEDULE 1—continued

Subsection 185(6):

Omit “person” (wherever occurring), substitute “woman”.

Paragraphs 186(1)(a) and (c):

Omit “person”, substitute “woman”.

Paragraph 186(1)(b):

Omit “person’s”, substitute “woman’s”.

Subsection 186(1):

Omit “person” (second occurring), substitute “woman”.

Section 187:

(a)     Omit “person’s”, substitute “woman’s”.

(b)    Omit “person” (wherever occuring), substitute “woman”.

Subsection 188(1):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 188(1)(b):

Omit “person’s”, substitute “woman’s”.

Subsection 188(1) (Note 1):

(a)     Omit “person”, substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Subsection 188(1) (Note 2):

Omit “person’s”, substitute “woman’s”.

Subsection 188(2):

Omit “person”, substitute “woman”.

Paragraph 188(3)(b):

Omit “person”, substitute “woman”.

Section 189:

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s” (wherever occurring), substitute “woman’s”.

Section 190:

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 190(a):

Omit “person’s”, substitute “woman’s”.

SCHEDULE 1—continued

Section 190 (Lump Sum Calculator—Method statement—Step 1):

(a)     Omit “person”, substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Section 190 (Lump Sum Calculator—Method statement—Step 2):

Omit “person’s”, substitute “woman’s”.

Section 190 (Lump Sum Calculator—Method statement—Step 4):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Section 190 (Lump Sum Calculator—Method statement—Step 5):

Omit “person’s”, substitute “woman’s”.

Section 190 (Lump Sum Calculator—Method statement—Step 7):

Omit “person”, substitute “woman”.

Paragraph 191(a):

(a)     Omit “person”, substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Paragraph 191(b):

Omit “person”, substitute “woman”.

Paragraph 191(c):

(a)     Omit “person’s”, substitute “woman’s”.

(b)    Omit “person”, substitute “woman”.

Section 191 (Lump Sum Calculator—Method statement—Step 1):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Section 191 (Lump Sum Calculator—Method statement—Step 2):

Omit “person” substitute “woman”.

Section 191 (Lump Sum Calculator—Method statement—Step 4):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Section 191 (Lump Sum Calculator—Method statement—Step 5):

Omit “person’s” substitute “woman’s”.

Section 191 (Lump Sum Calculator—Method statement—Step 6):

Omit “person” substitute “woman”.

SCHEDULE 1—continued

Subsection 192(1):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s” (wherever occurring), substitute “woman’s”.

Subsection 192(2):

(a)    Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s” (wherever occurring), substitute “woman’s”.

Subsection 193(1):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 193(1)(c):

Omit “person’s”, substitute “woman’s”.

Subsection 193(2):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 193(2) (Note 1):

(a)    Omit “person”, substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Subsection 193(2) (Note 2):

(a)     Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s” (wherever occurring), substitute “woman’s”.

Section 194:

(a)     Omit “person”, substitute “woman”.

(b)    Omit “person’s” (wherever occurring), substitute “woman’s”.

Section 195:

Omit “person” (wherever occurring), substitute “woman”.

Section 195 (Note):

Omit “person” (first occurring), substitute “woman”.

Section 195 (Lump Sum Calculator—Method statement—Step 1):

Omit “person”, substitute “woman”.

Section 195 (Lump Sum Calculator—Method statement—Step 2):

(a)    Omit “person”, substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Section 195 (Lump Sum Calculator—Method statement—Step 5):

Omit “person”, substitute “woman”.

SCHEDULE 1—continued

Section 195A:

(a)    Omit “person” (wherever occurring), substitute “woman”.

(b)    Omit “person’s” (wherever occurring), substitute “woman’s”.

Section 196:

Omit “person” (wherever occurring), substitute “woman”.

Section 196 (Note):

Omit “person” (wherever occurring), substitute “woman”.

Subsection 197(1):

(a)    Omit “person”, substitute “woman”.

(b)    Omit “person’s”, substitute “woman’s”.

Subsection 197(2):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 197(2)(b):

Omit “person’s”, substitute “woman’s”.

Subsection 197(3):

Omit “person” (wherever occurring), substitute “woman”.

Paragraph 197(3)(b):

Omit “person’s”, substitute “woman’s”.

Section 198:

Add at the end:

“Note: a person who is receiving a carer pension may be automatically transferred to the age pension if the person becomes qualified for the age pension (see subsection 48(3)).”.

After subsection 222(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 222(5):

After “not” insert “, without reasonable excuse,”.

Subsection 223(5):

After “not” insert “, without reasonable excuse,”.

SCHEDULE 1—continued

Section 249:

Add at the end:

“Note: a person who is receiving a sole parent pension may be automatically transferred to the age pension if the person becomes qualified for the age pension (see subsection 48(3)).”.

Subsection 250(1):

Add at the end:

“Note: for ‘young person’ see section 5.”.

Paragraph 250(2)(b):

Omit “wages”, substitute “employment”.

Subsection 250(2):

Add at the end:

“Note 3: for ‘young person’ see section 5.”.

Subsection 251(1):

Add at the end:

“Note: for ‘young person’ see section 5.”.

Subsection 251(2):

Add at the end:

“Note: for ‘young person’ see section 5.”.

After subsection 284(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 284(5):

After “not” insert “, without reasonable excuse,”.

Subsection 285(5):

After “not” insert “, without reasonable excuse,”.

Section 297:

Add at the end:

“Note: if a person seeks review of a cancellation decision under this section, a payment of the sole parent pension may be continued pending the outcome of the review. If the application for review is made within 14 days of notification of the decision, continued payment will be automatic (see section 1242 (Internal Review) and section 1252 (Review by Social Security Appeals Tribunal)). If the application is made after that time, continued payment is at the Secretary’s discretion (see section 1241 (Internal Review) and section 1251 (Review by Social Security Appeals Tribunal)).”.

SCHEDULE 1—continued

Subsection 300(1):

Omit the Note, substitute:

“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)).”.

Section 315:

Add at the end:

“Note: a person who is receiving a widowed person allowance may be automatically transferred to the age pension if the person becomes qualified for the age pension (see subsection 48(3)).”.

After subsection 341(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 341(5):

After “not” insert “, without reasonable excuse,”.

Subsection 342(5):

After “not” insert “, without reasonable excuse,”.

Section 362:

Add at the end:

“Note: a person who is receiving a widow B pension may be automatically transferred to the age pension if the person becomes qualified for the age pension (see subsection 48(3)).”.

Subsection 387(2):

(a)      Omit “person”, substitute “woman”.

(b)      Omit “the recipient”, substitute “she”.

After subsection 389(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 389(5):

After “not” insert “, without reasonable excuse,”.

Subsection 390(5):

After “not” insert “, without reasonable excuse,”.

SCHEDULE 1—continued

After subsection 574(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 574(5):

After “not” insert “, without reasonable excuse,”.

Subsection 575(5):

After “not” insert “, without reasonable excuse,”.

Subsection 623(5):

After “is to be” insert “reduced by a period equivalent to”.

After subsection 657(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 657(5):

After “not” insert “, without reasonable excuse,”.

Subsection 658(5):

After “not” insert “, without reasonable excuse,”.

After paragraph 663(2)(a):

Insert:

“(aa) the person has not turned 18; and”.

After subsection 727(4): Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 727(5):

After “not” insert “, without reasonable excuse,”.

Subsection 728(5):

After “not” insert “, without reasonable excuse,”.

SCHEDULE 1—continued

After subsection 759(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 759(5):

After “not” insert “, without reasonable excuse,”.

Subsection 760(5):

After “not” insert “, without reasonable excuse,”.

Section 773:

Add at the end:

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

Section 774:

Add at the end:

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

Section 775:

Add at the end:

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

Paragraph 776(2)(b):

Omit “wages”, substitute “employment”.

Paragraph 776(2)(c):

Omit “$100”, substitute “$107.70”.

Subsection 776(2):

Add at the end:

“Note 3: the amount in paragraph (c) is indexed annually in line with CPI increases (see sections 1191 to 1194).”.

Section 778:

Add at the end:

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

SCHEDULE 1—continued

Subsection 784(1):

Omit “and (3)”, substitute “, (3) and (4)”.

Section 784:

Add at the end:

“(4) If a person is not required to make a claim for the special needs age pension because of subsection 789(3), the person’s provisional commencement day is the day on which the person becomes qualified for the special needs age pension.”.

Subsection 789(1):

Omit “A”, substitute “Subject to subsection (3), a”.

Section 789:

Add at the end:

“(3) If:

(a)     a person is receiving a special needs disability support pension, a special needs wife pension or a special needs sole parent pension; and

(b)    the person becomes qualified for a special needs age pension; and

(c)     the Secretary determines that the person is to be automatically transferred to the special needs age pension;

the person does not have to make a claim for the special needs age pension.”.

After subsection 808(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 808(5):

After “not” insert “, without reasonable excuse,”.

Subsection 809(5):

After “not” insert “, without reasonable excuse,”.

After subsection 873(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

SCHEDULE 1—continued

Subsection 873(5):

After “not” insert “, without reasonable excuse,”.

Subsection 874(5):

After “not” insert “, without reasonable excuse,”.

After subsection 930(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 930(5):

After “not” insert “, without reasonable excuse,”.

Subsection 931(5):

After “not” insert “, without reasonable excuse,”.

After subsection 978(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 978(5):

After “not” insert “, without reasonable excuse,”.

Subsection 979(5):

After “not” insert “, without reasonable excuse,”.

Subsection 991(1):

Add at the end:

“Note: for ‘young person’ see section 5.”.

Subsection 991(2):

Add at the end:

“Note 2: for ‘young person’ see section 5.”.

Subsection 992AA(1):

Add at the end:

“Note: for ‘young person’ see section 5.”.

SCHEDULE 1—continued

Subsection 992AA(2):

Add at the end:

“Note: for ‘young person’ see section 5.”.

Subsection 993(1):

Add at the end:

“Note 3: if the young person does not qualify as a double orphan under this subsection, and the young person is a refugee child, the young person may qualify as a double orphan under section 994.”.

Subsection 993(2):

Add at the end:

“Note 6: if the young person does not qualify as a double orphan under this subsection, and the young person is a refugee child, the young person may qualify as a double orphan under section 994.”.

Section 994:

Add at the end:

“Note 6: if the young person does not qualify as a double orphan under this section, and the young person is not a refugee child, the young person may qualify as a double orphan under section 993.”.

After subsection 1023(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 1023(5):

After “not” insert “, without reasonable excuse,”.

Subsection 1024(5):

After “not” insert “, without reasonable excuse,”.

After subsection 1054(4):

Insert:

“(4A) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.”.

Subsection 1054(5):

After “not” insert “, without reasonable excuse,”.

Subsection 1055(5):

After “not” insert “, without reasonable excuse,”.

SCHEDULE 1—continued

After section 1061E:

Insert in Part 2.22:

“Division 4—Protection of pharmaceutical allowance

Pharmaceutical allowance to be absolutely inalienable

“1061EA.(1) Subject to subsections (2) and (3) and section 1359, pharmaceutical 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 pharmaceutical allowance payable to a person where 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 pension, benefit or allowance if requested by the Commissioner of Taxation (see section 1359).

Deductions from instalments with recipient’s consent

“(3) The Secretary may make deductions from the instalments of pharmaceutical allowance payable to a person if the person 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 pension, benefit or allowance.”.

Effect of garnishee or attachment order

“1061EB.(1) If:

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

(b)    instalments of pharmaceutical 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.

 

SCHEDULE 1—continued

“(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.”.

Section 1064 (Pension Rate Calculator A—point 1064-E12—Note):

Omit “Note”, substitute “Note 1”.

Section 1064 (Pension Rate Calculator A—point 1064-E12):

Add at the end:

“Note 2: this point is used for working out the DC excess and remaining excess for a person covered by item 5 of Table E-2. It is also used for working out the remaining excess for a person covered by item 6 of Table E-2.”.

Section 1064 (Pension Rate Calculator A—point 1064-F13—Note):

Omit “Note”, substitute “Note 1”.

Section 1064 (Pension Rate Calculator A—point 1064-F13):

Add at the end:

“Note 2: this point is used for working out the DC excess and remaining excess for a person covered by item 5 of Table F-2. It is also used for working out the remaining excess for a person covered by item 6 of Table F-2.”.

Section 1064 (Pension Rate Calculator A—point 1064-G6—Note):

Omit “Note”, substitute “Note 1”.

Section 1064 (Pension Rate Calculator A—point 1064-G6):

Add at the end:

“Note 2: this point is used for working out the DC excess and remaining excess for a person covered by item 5 of Table G-2. It is also used for working out the remaining excess for a person covered by item 6 of Table G-2.”.

SCHEDULE 1—continued

Subsection 1080(1):

Before “income” insert “ordinary”.

Subsection 1080(4):

Before “income” insert “ordinary”.

Subsection 1095(1):

Before “income” insert “ordinary”.

Subsection 1095(4):

Before “income” insert “ordinary”.

Section 1115 (Earnings Credit Account Balance Calculator—point 1115-C1—Note 1):

Omit “111 5-A4”, substitute “111 5-A6”.

Subsection 1118(4):

(a)     Omit “1145”, substitute “1145A”.

(b)    Omit “(retirement villages)”, substitute “(special residences)”.

Subsection 1121(6):

(a)     Omit “1145”, substitute “1145A”.

(b)    Omit “(retirement villages)”, substitute “(special residences)”.

Heading to Division 5 of Part 3.12:

Omit the heading, substitute:

“Division 5—Provisions relating to special residences and special residents”.

Section 1146:

Omit “retirement village or granny flat”, substitute “special”.

Subsection 1163(5) (Note):

Omit “section 23 of the Social Security Amendment Act 1988”, substitute “clause 25A of Schedule 1A”.

Paragraph 1174(1)(b):

Omit “lump sum payment”, substitute “lump sum preclusion”.

Paragraph 1174(4)(a):

Omit “lump sum payment”, substitute “lump sum preclusion”.

Paragraph 1174(5)(b):

Omit “lump sum payment”, substitute “lump sum preclusion”.

SCHEDULE 1—continued

Paragraph 1174(5)(c):

Omit “lump sum payment”, substitute “lump sum preclusion”.

Paragraph 1174(6)(b):

Omit “lump sum payment”, substitute “lump sum preclusion”.

Paragraph 1174(6)(c):

Omit “lump sum payment”, substitute “lump sum preclusion”.

Paragraph 1179(1)(b):

Omit “lump sum payments”, substitute “lump sum preclusion”.

Paragraph 1179(4)(a):

Omit “lump sum payment”, substitute “lump sum preclusion”.

Paragraph 1179(5)(b):

Omit “lump sum payments”, substitute “lump sum preclusion”.

Paragraph 1179(5)(c):

Omit “lump sum payment”, substitute “lump sum preclusion”.

Paragraph 1179(6)(b):

Omit “lump sum payments”, substitute “lump sum preclusion”.

Paragraph 1179(6)(c):

Omit “lump sum payment”, substitute “lump sum preclusion”.

Section 1190 (Table—item 34—columns 2 and 3):

Omit “retirement village”, substitute “special”.

Section 1206A (Note 1):

Omit “subsection 1061D(2)”, substitute “section 1061C”.

Subsection 1210(2):

Omit the subsection.

Section 1210 (International Agreement Portability Rate Calculator— point 1210-A1—Method statement—Step 3):

Omit the Step, substitute:

Note 1: for the treatment of income of the person see point 1210-A2.

Note 2: because the person is outside Australia he or she does not receive any rent assistance (see the relevant Rate Calculators).

Note 3: the rate is not proportioned (see subsections 1220B(1A) and 1221(3).”.

SCHEDULE 1—continued

Section 1210 (International Agreement Portability Rate Calculator— after point 1210-A1):

Insert:

Amounts to be treated as income

“1210-A2. If the scheduled international social security agreement concerned:

(a)    provides that certain amounts are to be treated as income of the person—those amount are to be treated as income of the person; and

(b)    provides that certain amounts are to be treated as not being income of the person—those amounts are to be treated as not being income of the person.”.

Subsection 1220B(1):

After “subsections” insert “(1A),”.

After subsection 1220B(1):

Insert:

“(1A) This section does not apply to a person if section 1210 applies to the person.”.

Subsection 1221(1):

Omit “This”, substitute “Subject to subsection (3), this”.

Section 1221:

Add at the end:

“(3) This section does not apply to a person if section 1210 applies to the person.”.

Subsection 1222(2) (Table):

Omit:

 

 

SCHEDULE 1—continued

Subsection 1222(2) (Table—item 6):

Omit the item, substitute:

Subsection 1222(2) (Table—item 8):

Omit the item, substitute:

Section 1222A:

Omit the section, substitute:

Debts due to the Commonwealth

“1222A. If an amount has been paid by way of pension, benefit or allowance under this Act or the 1947 Act, the amount is a debt due to the Commonwealth if, and only if:

(a)     a provision of this Act or the 1947 Act expressly provides that it is; or

(b)    the amount:

(i) should not have been paid; and

(ii) was paid before 1 January 1991 ; and

(iii) was not an amount to which subsection 245B(2) of the 1947 Act applied.

Note 1: for the provisions of this Act that create debts due to the Commonwealth see sections 1135, 1223, 1223AA, 1223A, 1224, 1225 and 1226.

Note 2: paragraph 1222A(b) covers some debts under the 1947 Act which arose from amounts that stopped being paid to a person before 1 January 1991.”.

Subparagraph 1224(1)(b)(ii):

Omit “and”.

Paragraph 1224(1)(c):

Omit the paragraph.

SCHEDULE 1—continued

After paragraph 1225(1)(b):

Insert:

“; or (c) garnishee notice.”.

Subsection 1225(1):

(a)  After Note 3, insert:

“Note 4: for ‘garnishee notice’ see section 1233.”.

(b)  Renumber Note 4 as Note 5.

After paragraph 1227(1)(aa):

Insert:

“(ab) legal proceedings; or”.

Subsection 1227(2) (Notes):

After Note 2, insert:

“Note 3: for ‘legal proceedings’ see section 1232.”.

Subsection 1227(2) (Notes):

(a)     Renumber Note 3 as Note 4.

(b)    Renumber Note 4 as Note 5.

Subsection 1229(1):

Omit “a penalty”, substitute “an additional”.

Subsection 1229(2):

Omit “penalty”, substitute “additional”.

Subsection 1233(1):

After “1224A,” insert “1225,”.

Subsection 1233(1):

Add at the end:

“; or (g) such percentage as is specified in the notice of each payment that the person becomes liable from time to time to make to the debtor until that debt is satisfied.”.

Subsection 1234(3):

(a)     Omit “includes”, substitute “means”.

(b)    Before paragraph (a), insert:

“(aa) a debt recoverable by the Commonwealth under Part 5.2; and”.

(c)  Add at the end:

“Note: overpayments under section 1228 are not debts for the purposes of Part 5.2.”.

SCHEDULE 1—continued

Section 1235:

(a)     Omit “includes”, substitute “means”.

(b)    Before paragraph (a), insert:

“(aa) a debt recoverable by the Commonwealth under Part 5.2; and”.

(c)  Add at the end:

“Note: overpayments under section 1228 are not debts for the purposes of Part 5.2.”.

Paragraph 1304(7)(a):

Before “refuse”, insert “without reasonable excuse,”.

Paragraph 1305(5)(a):

Before “refuse”, insert “without reasonable excuse,”.

Paragraph 1306(5)(a):

Before “refuse”, insert “without reasonable excuse,”.

Paragraph 1307(10)(a):

Before “refuse”, insert “without reasonable excuse,”.

Paragraph 1358(a):

After “1351(1)(b)”, insert “or subsection 239(7) of the 1947 Act”.

PART 2—AMENDMENTS COMMENCING ON 1 JULY 1991

Subsection 5(1) (definition of “maintained child”):

Omit the definition, substitute:

“ ‘maintained child’ has the meaning given by subsections (9A) and (9B);”.

After subsection 5(9):

Insert:

“(9A) For the purposes of this Act, a maintained child, in relation to a person, means a young person who:

(a)     is not a dependent child of the person; and

(b)     is being wholly or substantially maintained by the person.

“(9B) For the purposes of this Act, a young person is not to be treated as a maintained child of another person (in this subsection called the ‘adult’) unless:

(a) if the adult is an Australian resident:

(i) the young person is an Australian resident; or

(ii) the young person is living with the adult; or

SCHEDULE 1—continued

(b) if the adult is not an Australian resident:

(i) the young person is an Australian resident; or

(ii) the young person has been an Australian resident and is living with the adult outside Australia; or

(iii) the young person had been living with the adult in Australia and is living with the adult outside Australia.

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

Paragraph 7(3)(d):

Omit “property”, substitute “assets”.

Subsection 23(1) (definition of “receive”):

Omit “and (4)”, substitute “, (4) and (4AA)”.

Subsection 23(2):

Omit the subsection, substitute:

“(2) For the purposes of this Act (other than section 735), a person is taken to be receiving a payment under this Act from the earliest day on which the payment is payable to the person even if the first instalment of the payment is not paid until a later day.”.

After subsection 23(4):

Insert:

“(4AA) For the purposes of this Act, a person is taken to be receiving a payment (other than a social security pension or a social security benefit) until the latest day on which the payment is payable to the person even if the last instalment of the payment is not paid until a later day.”.

Subsection 80(5):

Omit “If, substitute “Subject to subsection (5A), if.

After subsection 80(5):

Insert: “(5A) If:

(a)     the favourable determination is made following the death of the person’s partner, and

(b)    the favourable determination is made because the person elects not to receive bereavement payments; and

(c)     within the bereavement period:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death;

SCHEDULE 1—continued

the determination takes effect on the day after the day on which the partner died.”.

Subsection 82(2):

Add at the end:

“Note: if a person makes an election, the date of effect of any determination to increase the person’s rate of age pension may, in some circumstances, be the day after the day on which the person’s partner died (see subsection 80(5A)).”.

Sub-subparagraph 91(1)(b)(ii)(B):

Omit the sub-subparagraph.

Subsection 146D(5):

Omit “If, substitute “Subject to subsection (5A), if”.

After subsection 146D(5):

Insert:

“(5A) If:

(a)     the favourable determination is made following the death of the person’s partner; and

(b)    the favourable determination is made because the person elects not to receive bereavement payments; and

(c)     within the bereavement period:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death;

the determination takes effect on the day after the day on which the partner died.”.

Subsection 146F(2):

Add at the end:

“Note: if a person makes an election, the date of effect of any determination to increase the person’s rate of age pension may, in some circumstances, be the day after the day on which the person’s partner died (see subsection 146D(5A)).”.

Sub-subparagraph 146Q(1)(b)(ii)(B):

Omit the sub-subparagraph.

Subsection 233(5):

Omit “If, substitute “Subject to subsection (5A), if”.

 

SCHEDULE 1—continued

After subsection 233(5):

Insert:

“(5A) If:

(a) the favourable determination is made following the death of the person’s partner; and

(b) the favourable determination is made because the person elects not to receive bereavement payments; and

(c) within the bereavement period:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death;

the determination takes effect on the day after the day on which the partner died.”.

Subsection 237(2):

Add at the end:

“Note: if a person makes an election, the date of effect of any determination to increase the person’s rate of age pension may, in some circumstances, be the day after the day on which the person’s partner died (see subsection 233(5A)).”.

Sub-subparagraph 246(1)(b)(ii)(B):

Omit the sub-subparagraph.

Subsection 299(5):

Omit “If, substitute “Subject to subsection (5A), if.

After subsection 299(5):

Insert:

“(5A) If:

(a)     the favourable determination is made following the death of the person’s partner; and

(b)    the favourable determination is made because the person elects not to receive bereavement payments; and

(c)     within the bereavement period:

(i) the person notifies the Department orally or in writing of their partner’s death; or

(ii) the Secretary otherwise becomes aware of the death; and

(d)  before the partner’s death, subparagraph 249(1)(a)(iv) (illness separated couple) applied to the person and the person’s partner;

the determination takes effect on the day after the day on which the partner died.”.

SCHEDULE 1—continued

Section 301:

Add at the end:

“Note: for the continued sole parent pension rate where this section applies to a person see section 310.”.

Section 302:

Omit the section.

Subsection 303(2):

Add at the end: