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Act No. 183 of 1994 as made
An Act to amend the Student Assistance Act 1973
Administered by: Education, Employment and Workplace Relations
Date of Assent 23 Dec 1994
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016
 

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994

Making Information
- Assented to 23 December 1994

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - TABLE OF PROVISIONS

TABLE OF PROVISIONS
Section
1. Short title etc.
2. Commencement
3. Title
4. Short title
5. Interpretation
6. Repeal of section
7. Binding of the Crown
8. Insertion of new sections:
5B. Secretary to have general administration
5C. Principles of administration
9. Benefits under the AUSTUDY scheme
10. Advances on account of benefit
11. Secretary to give student notice of entitlement
12. Payments to stop if student ceases to be eligible for
financial supplement
13. What happens if student fails to notify change in
circumstances
14. Payments to stop if student is found never to have been
eligible for financial supplement
15. What happens if financial supplement was paid because of
provision of false or misleading information
16. Death of student
17. Notice and a certificate to Commissioner
18. Explanation of Division
19. What happens if a decision of Secretary is set aside or
varied
20. Repeal of Part 5
21. Recovery of certain overpayments by offsetting
22. Late payment charge and interest in relation to overpayment
of a benefit
23. Determination that late payment interest not to be payable
in relation to certain periods
24. Recovery of certain overpayments from third parties
25. Write off and waiver of certain overpayments etc.
26. Repeal of section
27. Repeal of sections
28. Obligation to notify happening of certain events
29. Offences
30. Proceedings against corporations
31. Evidentiary certificates
32. Repeal of sections
33. Appropriation
34. Repeal of section
35. Regulations
36. Addition of new Parts and Schedules:
PART 8-YOUTH TRAINING ALLOWANCE
Division 1-Interpretation
57. Application of Part 1.2 of the Social Security Act
58. Interpretation
59. Approval of voluntary organisations (activity test)
60. Calculation of amount of pharmaceutical allowance
paid
61. Transferee to youth training allowance
62. Tables, notes etc. form part of section
63. Payments are period-based
64. Qualification for, or payability of, youth training
allowance
Division 2-Qualification for, and payability of, youth
training allowance
Subdivision A-Basic qualifications
65. Qualification for youth training allowance
66. Effect of incapacity on qualification
67. Youth training allowance may continue to end of
payment period
68. People may be treated as unemployed
69. Unemployment due to industrial action
70. Assurance of support
71. Move to area of lower employment prospects
72. Liquid assets test waiting period
73. Registration by Commonwealth Employment Service
74. Prospective determinations for some claimants
Subdivision B-Activity test
75. Activity test
76. Relief from activity test-general
77. Relief from activity test-people engaged in voluntary

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work
78. Relief from activity test-special circumstances
Subdivision C-Youth Training Activity Agreements
79. Youth Training Activity Agreements-requirement
80. Youth Training Activity Agreements-terms
81. Youth Training Activity Agreements-failure to
negotiate
82. Youth Training Activity Agreements-self-employment
83. Youth Training Activity Agreements-group enterprises
and co-operative enterprises
84. Agreements entered into before 20 March 1995
Subdivision D-Situations in which allowance not payable
(general)
85. Youth training allowance not payable in certain
circumstances
86. Provision of tax file number
87. Provision of partner's tax file number
88. Full-time students
89. Multiple entitlement exclusion
90. Commonwealth funded employment program exclusion
91. Provisional commencement day
92. Start of youth training allowance
Subdivision E-Situations in which allowance not payable
(waiting periods)
93. Unused annual leave waiting period
94. Notional leave period
95. Duration of unused annual leave waiting period
96. Ordinary waiting period
97. Duration of ordinary waiting period
98. Education leavers waiting period
99. Duration of education leavers waiting
period-non-secondary school leavers
100. Duration of education leavers waiting
period-secondary school leavers
101. Newly arrived residents waiting period
102. Duration of newly arrived residents waiting period
Subdivision F-Situations in which allowance not payable
(activity test breaches)
103. Removal from allowance for failure to satisfy
activity test
104. Removal from allowance for failure to enter into
activity agreement
105. Removal from allowance for failure to comply with
activity agreement
106. Unemployment due to voluntary act
107. Unemployment due to misconduct
108. Refusal of offer of employment
109. Activity test deferment periods
110. Start of activity test deferment periods
111. Application of activity test deferment periods before
claims for youth training allowance
112. Waiting periods
113. Effect of sections 110, 111 and 112.
Subdivision G-Situations in which allowance not payable
(administrative breaches)
114. Secretary may require a person to attend the
Department of Social Security or the Commonwealth
Employment Service etc.
115. Removal from allowance for failure to comply with
notification requirements
116. Administrative breach deferment periods
117. Start of administrative breach deferment periods
118. Waiting periods
119. Effect of sections 117 and 118
Subdivision H-Other situations in which allowance
not payable
120. Removal from allowance for failure to continue
Commonwealth Employment Service registration
121. Seasonal workers
122. Move to area of lower employment prospects
123. Youth training allowance not payable while person in
gaol or in psychiatric confinement following criminal
charge
124. Double benefit payment on release from gaol
Division 3-Claim for youth training allowance
125. Need for a claim
126. Form of claim
127. Lodgment of claim
128. Claimant must be Australian resident and in Australia
129. Claim may be withdrawn

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130. Secretary may request claimant to give statement of
claimant's tax file number
131. Secretary may request claimant to give statement of
partner's tax file number
Division 4-Determination of claim
132. Secretary to determine claim
133. Grant of claim
134. Date of effect of determination
Division 5-Rate of youth training allowance
135. How to work out a person's youth training allowance
rate
136. Youth training supplement
Division 6-Payment of youth training allowance
137. Start of youth training allowance
138. Instalments
139. Instalments for period less than a fortnight
140. Rounding off instalment
141. Instalments to be paid to person or nominee
142. Payment into bank account etc.
143. If allowance payday would fall on public holiday etc.
144. Payment of allowance after death
Division 7-Protection of youth training allowance
145. Youth training allowance to be absolutely inalienable
146. Effect of garnishee or attachment order
Division 8-Recipient obligations
147. Secretary may request recipient to give statement of
recipient's tax file number
148. Secretary may request recipient to give statement of
partner's tax file number
149. Secretary may require notice of the happening of an
event or a change in circumstances
150. Secretary may require recipient to give particular
information relevant to payment of youth training
allowance
Division 9-Continuation, variation and termination
Subdivision A-General
151. Continuing effect of determination
Subdivision B-Automatic termination
152. Automatic termination-transfer to social security
pension or benefit
153. Automatic termination-recipient complying with
section
149 notification obligations
154. Automatic termination-recipient not complying with
section 149 notification obligations
155. Automatic termination-failure to provide section 150
statement
Subdivision C-Automatic rate reduction
156. Automatic rate reduction-partner starting to receive
allowance, pension or benefit
157. Automatic rate reduction-recipient not complying with
section 149 notification obligations
158. Automatic rate reduction-failure to tell Department
of payment for remunerative work if earnings credit
account balance available
159. Changes to payments by computer following automatic
termination or reduction
Subdivision D-Determinations
160. Rate increase determination
161. Rate reduction determination
162. Cancellation or suspension determination
163. Cancellation or suspension for failure to comply with
section 150, 343 or 344 notice
164. Changes to payments by computer
165. Resumption of payment after cancellation or
suspension
Subdivision E-Date of effect of determination
166. Date of effect of favourable determination
167. Date of effect of adverse determination
Division 10-Bereavement payments on death of partner
168. Qualification for payments under this Division
169. Continued payment of partner's pension or benefit
170. Lump sum payable in some circumstances
171. Adjustment of person's youth training allowance rate
172. Effect of death of person entitled to payments under
this Division
173. Matters affecting payments under this Division
Division 11-General provisions relating to the
ordinary income test
Subdivision A-Ordinary income concept

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174. Ordinary income is generally total gross income (not
net income after deductions) from all sources
175. Ordinary income from a business-treatment of trading
stock
176. Permissible reductions-business income
Subdivision B-Investment income-General
177. Structure
178. Certain capital amounts not covered by Subdivisions C
to F taken to be received over 12 months
Subdivision C-Managed investments and listed securities
179. Investments to which this Subdivision applies
180. How investment returns are taken into account in
working out rate of youth training allowance
181. How investment losses are taken into account in
working out rate of youth training allowance
182. Returns and losses on investment products
183. Annualised rate of return or loss on investment
product
184. Investment and disposal costs
185. Actual return on investments not treated as ordinary
income
Subdivision D-Investments taken into account on realisation
186. Investments made before 1 January 1988 with friendly
societies or if no immediate return
187. How investment losses are taken into account in
working out rate of youth training allowance
188. Market-linked investments made or acquired before 9
September 1988
189. Special provisions about certain investments made
before 9 September 1988
190. How investment losses are taken into account in
working out rate of youth training allowance
191. Withdrawal from superannuation fund
192. How investment losses are taken into account in
working out rate of youth training allowance
193. Limit on reduction of ordinary income for losses
Subdivision E-Superannuation fund investments
194. Provisions affecting superannuation fund investments
Subdivision F-Immediate annuities and superannuation pensions
195. Immediate annuities
196. Superannuation pensions
Subdivision G-Available money and deposit money
197. Structure of Subdivision G
198. Basic concept-income money and interest received
199. Income money that does not attract interest
200. Income money that attracts low interest
201. Other deposit money
202. Certain money to be disregarded
203. Assumed rate of interest on income money
Subdivision H-Interest attributed to money on loan
204. Application of this Subdivision
205. Structure of Subdivision
206. Basic concepts-loan and interest
207. Loans that do not attract interest
208. Loans that attract a low rate of interest
209. Other loans
210. Certain loans to be disregarded
211. Assumed loan rate of interest
Subdivision I-Income attributed to deprived assets
212. Application of this Subdivision
213. Income attributed to deprived assets
214. Assumed property rate
Subdivision J-Disposal of ordinary income
215. Disposal of ordinary income
216. Amount of disposition
217. Disposal of ordinary income-individuals
218. Disposal of ordinary income-members of couples
219. Treatment of transactions that constitute both a
disposal of ordinary income and a disposal of assets
220. Dispositions more than 5 years old to be disregarded
Subdivision K-Earnings credits
221. Earnings credit balance may be set-off against
ordinary income from remunerative work
222. Earnings credit account
223. Earnings credit account balance
Division 12-Compensation recovery
Subdivision A-General
224. General effect of Division
225. Certain lump sums to be treated as though they were
received as periodic payments

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226. Effect of certain State and Territory laws
Subdivision B-Enforcement of compensation rights
227. Secretary may require person to take action to obtain
compensation
Subdivision C-Receipt of compensation
228. Youth training allowance not payable during lump sum
preclusion period
229. Person may have to repay amount if both lump sum and
youth training allowance payments have been received
230. Lump sum compensation not counted as ordinary income
231. Rate reduction if periodic compensation payments
received
232. Rate reduction under income test and this Division
233. Person may have to repay amount if both periodic
compensation payments and allowance payments have
been received
234. Periodic compensation payments not counted as
ordinary income
Subdivision D-Compensation payers
235. Secretary may send preliminary notice to potential
compensation payer
236. Potential compensation payer must tell Department of
liability
237. Secretary may send recovery notice to compensation
payer
238. Preliminary notice or recovery notice suspends
liability to pay compensation
239. Compensation payer's payment to Commonwealth
discharges liability to compensation recipient
240. Offence to make compensation payment after receiving
preliminary notice or recovery payment
Subdivision E-Insurers
241. Secretary may send preliminary notice to insurer
242. Insurer must tell Department of liability
243. Secretary may send recovery notice to insurer
244. Preliminary notice or recovery notice to insurer
suspends both insurer's and compensation payer's
liability
245. Insurer's payment to Commonwealth discharges
liability
246. Offence to make compensation payment after receiving
preliminary notice or recovery notice
Subdivision F-Miscellaneous
247. Secretary may give recovery notice either to
compensation payer or to insurer but not to both
248. Secretary may disregard some payments
249. Division to bind Crown
Division 13-Indexation
Subdivision A-Preliminary
250. Analysis of Division
251. Indexed amounts
Subdivision B-Indexation
252. CPI Indexation Table
253. Indexation of amounts
254. Indexation factor
255. Rounding off indexed amounts
256. Adjustment of certain pharmaceutical rates
Division 14-Miscellaneous
257. Application of asset and income test reductions and
compensation reductions for income tax purposes
Division 15-Overpayments and debt recovery
Subdivision A-Effect of Division
258. General effect of Division
Subdivision B-Amounts recoverable under this Part
259. Application overseas
260. Debts due to the Commonwealth
261. Debts arising under this Part
262. Debts arising from prepayments
263. Debt arising from AAT stay orders
264. Debts arising from automatic termination (transfer to
social security pension or benefit)
265. Debt arising from automatic rate reductions because
of partner starting to receive allowance, pension or
benefit
266. Debts arising from recipient's contravention of Part
267. Person other than payee obtaining payment of a cheque
268. Debts arising from conviction of person for
involvement in contravention of Part by debtor
269. Data-matching Program (Assistance and Tax) Act debts
270. Compensation debts

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271. Compensation payer and insurance debts
272. Compensation arrears debts
273. Assurance of support debts
274. Overpayments and debts arising under other Acts and
schemes
275. Interest payable on debt for failure to enter
agreement to pay debt
276. Interest payable on debt for breach of agreement to
pay debt
277. Penalty interest rate
278. Guidelines on the penalty interest charge scheme
279. Debt from failure to comply with garnishee notice
Subdivision C-Methods of recovery
280. Application of sections dealing with deductions
281. Deductions from debtor's allowance
282. Legal proceedings
283. Garnishee notice
284. Secretary may allow payment of debt by instalments
285. Deductions by consent from allowance of person who is
not the debtor
Subdivision D-Non-recovery of debts
286. Meaning of 'debt'
287. Secretary may write off debt
288. Application
289. Waiver of whole of a debt
290. Waiver of part of a debt
291. Determination that penalty interest not payable in
relation to particular periods
Division 16-Miscellaneous
Subdivision A-Offences
292. Operation of Subdivision
293. False statement in connection with claims
294. False statement-to deceive or to affect rates
295. False statement or document
296. Payment knowingly obtained if not payable
297. Payment knowingly obtained through fraud etc.
298. Conduct by directors, servants or agents
Subdivision B-Collection of tax
299. Payment to Commissioner of Taxation-section 218 of
Income Tax Assessment Act
300. Judicial notice to be taken of certain matters
301. Evidence
PART 9-REVIEW OF DECISIONS
Division 1-Internal review
302. Application of Division
303. Secretary may review decisions
304. Application for review
305. Secretary may continue payment pending outcome of
application for review
306. Powers of Secretary or authorised review officer if
application for review
307. Certain determinations not to be revived
308. Notification of further rights of review
Division 2-Review by Social Security Appeals Tribunal
309. Application of Division
310. SSAT objectives
311. Application for review by SSAT
312. Application requirement for certain decisions
313. Non-reviewable decisions
314. Secretary may continue payment pending outcome of
application for review
315. Automatic payment if review sought of decision
concerning terms of agreement
316. SSAT review powers
317. SSAT review powers (Youth Training Activity Agreement
decision)
318. Date of effect of SSAT decisions
319. Date of effect of SSAT decision (Youth Training
Activity Agreement decision)
320. Application requirements
321. Variation of decision before review completed
322. Parties to SSAT review
Division 3-Right to review by Administrative Appeals
Tribunal
323. Application of Division
324. Review of SSAT decision by AAT
325. Variation of decision before AAT review completed
326. Review of SSAT decision on application by the
Secretary
Division 4-Modification of the Administrative Appeals

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Tribunal Act 1975
327. Modification of the Administrative Appeals Tribunal
Act
328. Statement of reasons for decision
329. Notice of application for review
330. Parties to review by the AAT
331. Lodging documents with the AAT
332. Power of the AAT to obtain additional statements
333. Operation and implementation of the decision under
review
334. Power of the AAT if party fails to appear
PART 10-ADMINISTRATION
Division 1-General administration
335. Government policy statements
336. The Secretary and National Convener may agree on
administrative arrangements
337. The Secretary and the Secretary to the Department of
Social Security may agree on administrative
arrangements for Parts,8, 9 and 10
338. Delegation
339. Authorised review officers
340. Decisions to be in writing
341. Notice of decisions
Division 2-Information gathering
342. Application
343. General power to obtain information
344. Power to obtain information from a person who owes a
debt to the Commonwealth
345. Power to obtain information about a person who owes a
debt to the Commonwealth
346. Power to obtain information to verify claims etc.
347. Provisions relating to requirements
348. State/Territory law does not affect obligations to
provide information
349. End-of-employment statement by employer
Division 3-Confidentiality
350. Operation of section 12ZU unaffected
351. Protection of personal information
352. Offence-unauthorised access to protected information
353. Offence-unauthorised use of protected information
354. Protection extends to court, tribunal etc.
proceedings
355. Secretary's certificate
356. Guidelines for exercise of Secretary's certificate
power
357. Offence-soliciting disclosure of protected
information
358. Making untrue representations for purpose of
soliciting disclosure of protected information
359. Offences-offering to supply protected information
360. Officer's oath or declaration
361. Freedom of Information Act not affected
SCHEDULE 1
CALCULATION OF RATE OF YOUTH TRAINING ALLOWANCE
PART 1-INTERPRETATION
PART 2-MODULES
SCHEDULE 2
PENSIONS, BENEFITS AND ALLOWANCES
SCHEDULE 3
FRINGE BENEFITS
SCHEDULE 4
CALCULATION OF EARNINGS CREDIT ACCOUNT BALANCE
37. Transitional provision-acts and decisions of
authorised persons and prescribed officers
taken to be acts and decisions of Secretary
38. Transitional provision-internal review of student
assistance benefit decision
39. Transitional provision-review of student assistance
benefit decision not yet heard by SART
40. Transitional provision-review of student assistance
benefit decision part-heard by SART
41. Transitional provision-members of SART to become
members of SSAT

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - LONG TITLE

An Act to amend the Student Assistance Act 1973

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 1
Short title etc.

1.(1) This Act may be cited as the Student Assistance (Youth Training Allowance) Amendment Act 1994.


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(2) In this Act, "Principal Act" means the Student Assistance Act 1973.*1*

(Minister's second reading speech made in-
House of Representatives on 20 October 1994
Senate on 28 November 1994)
*1* No. 155, 1973, as amended. For previous amendments, see No. 26, 1982; No. 6, 1984 (as amended by No. 165, 1984); Nos. 72 and 120, 1984; No. 137, 1985; No. 114, 1986; Nos. 125, 130 and 141, 1987; No. 35, 1988; Nos. 76 and 171, 1989; Nos. 70, 95 and 147, 1991; No. 138, 1992; and Nos. 55, 63, 68, 78, 98 and 109, 1994.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 2
Commencement

2. This Act commences on 1 January 1995.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 3
Title

3. The title of the Principal Act is amended by inserting "and young people" after "students".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 4
Short title

4. Section 1 of the Principal Act is amended by inserting "and Youth" after "Student".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 5
Interpretation

5. Section 3 of the Principal Act is amended:
(a) by omitting the definition of "officer" from subsection (1) and substituting the following definition:
"'officer' means a person performing duties, or exercising powers or functions, under or in relation to this Act and, in relation to a provision of Division 3 of Part 10, includes:
(a) a person who has been such a person; and
(b) a person who is or has been appointed or employed by the Commonwealth and who, as a result of that appointment or employment, may acquire or has acquired information concerning a person under this Act; and
(c) a person who, although not appointed or employed by the Commonwealth, performs or did perform services for the Commonwealth and who, as a result of performing those services, may acquire or has acquired information concerning a person under this Act;";
(b) by omitting from subsection (1) the definitions of "authorised person" and "prescribed officer";
(c) by inserting in subsection (1) the following definitions:
"'protected information' means information about a person that is held in the records of the Department of Employment, Education and Training or of the Department of Social Security;
'student assistance benefit' means a payment under:
(a) the AUSTUDY scheme; or
(b) the Student Financial Supplement Scheme; or
(c) a current or former special educational assistance scheme;".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 6
Repeal of section

6. Section 4 of the Principal Act is repealed.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 7
Binding of the Crown

7. Subsection 5(1) of the Principal Act is repealed and the following subsection is substituted:
"(1) This Act other than:
(a) Part 8 but subject to section 249; and
(b) Part 9, in so far as it relates to youth training allowance; and
(c) Part 10, in so far as it relates to youth training allowance but subject to subsection 342(2);
binds the Crown in all its capacities.".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 8
Insertion of new sections

8. After section 5A of the Principal Act the following sections are inserted in Part 1:
Secretary to have general administration
"5B. The Secretary is, subject to any directions of the Minister, to have the general administration of this Act.

Principles of administration
"5C. In administering this Act, the Secretary is to have regard to:
(a) the desirability of achieving the following results:
(i) the ready availability to members of the public of advice and
information services relating to benefits under this Act;
(ii) the ready availability of publications containing clear
statements about entitlements under this Act and procedural requirements;
(iii) the delivery of services under this Act in a fair,
courteous, prompt and cost-efficient manner;
(iv) a process of monitoring and evaluating delivery of programs
with an emphasis on the impact of programs on people who receive benefits under this Act;

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(v) the establishment of procedures to ensure that abuses of the
schemes for benefits under this Act are minimised; and
(b) the special needs of disadvantaged groups in the community; and
(c) the need to be responsive to Aboriginality and to cultural and linguistic diversity; and
(d) the importance of the systems of review of decisions under this Act; and
(e) the need to apply government policy in accordance with the law and with due regard to relevant decisions of the Administrative Appeals Tribunal and the Social Security Appeals Tribunal.
Note: In administering this Act, the Secretary is also bound by the Privacy Act 1988 and by the provisions of this Act concerning confidentiality-see Division 3 of Part 10.".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 9
Benefits under the AUSTUDY scheme

9. Section 7 of the Principal Act is amended by omitting from subsection (1) "an authorised person" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 10
Advances on account of benefit

10. Section 11 of the Principal Act is amended by omitting "An authorised person" and substituting "The Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 11
Secretary to give student notice of entitlement

11. Section 12F of the Principal Act is amended:
(a) by omitting from subsection (1) "An authorised person" and substituting "The Secretary";
(b) by omitting from subsection (2) "an authorised person" and substituting "the Secretary";
(c) by omitting from subsection (3) "an authorised person" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 12
Payments to stop if student ceases to be eligible for financial supplement

12. Section 12R of the Principal Act is amended:
(a) by omitting from subsection (1) "an authorised person" and substituting "the Secretary";
(b) by omitting from subsection (1) "the authorised person" and substituting "the Secretary";
(c) by omitting from subsection (2) "the authorised person" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 13
What happens if student fails to notify change in circumstances

13. Section 12S of the Principal Act is amended:
(a) by omitting from subsection (1) "a prescribed officer" and substituting "the Secretary";
(b) by omitting from subsection (1) "the prescribed officer" and substituting "the Secretary";
(c) by omitting from subsection (2) "the prescribed officer" and substituting "the Secretary";
(d) by omitting from paragraph (2)(a) "an authorised person" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 14
Payments to stop if student is found never to have been eligible for
financial supplement

14. Section 12T of the Principal Act is amended:
(a) by omitting from paragraph (1)(b) "an authorised person" and substituting "the Secretary";
(b) by omitting from subsection (1) "the authorised person" and substituting "the Secretary";
(c) by omitting from subsection (2) "the authorised person" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 15
What happens if financial supplement was paid because of provision of
false or misleading information

15. Section 12U of the Principal Act is amended:
(a) by omitting from subsection (1) "a prescribed officer" and substituting "the Secretary";
(b) by omitting from subsection (1) "the prescribed officer" and substituting "the Secretary";
(c) by omitting from subsection (2) "the prescribed officer" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 16
Death of student

16. Section 12V of the Principal Act is amended by omitting from subsection (1) "an authorised person" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 17
Notice and a certificate to Commissioner

17. Section 12ZH of the Principal Act is amended by omitting from subsection (3) "arrange for a prescribed officer to".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 18
Explanation of Division

18. Section 12ZV of the Principal Act is amended by omitting from paragraph
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(b) "by authorised persons or prescribed officers" and substituting "by the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 19
What happens if a decision of Secretary is set aside or varied

19. Section 12ZX of the Principal Act is amended by omitting "an authorised person or a prescribed officer" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 20
Repeal of Part 5

20. Part 5 of the Principal Act is repealed.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 21
Recovery of certain overpayments by offsetting

21. Section 38 of the Principal Act is amended:
(a) by omitting from subsection (2) "a prescribed officer" and substituting "the Secretary";
(b) by omitting from subsection (4) "a prescribed officer" and substituting "the Secretary";
(c) by omitting from paragraph (4)(b) "the prescribed officer" and substituting "the Secretary";
(d) by omitting from subsection (5) "a prescribed officer" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 22
Late payment charge and interest in relation to overpayment of a benefit

22. Section 40 of the Principal Act is amended:
(a) by omitting from subsection (1A) "a prescribed officer" and substituting "the Secretary";
(b) by omitting from subsection (5) "paragraph 43(2)(c)" and substituting "section 284 as applied under subsection 43(2)";
(c) by omitting from subsection (6) "a prescribed officer" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 23
Determination that late payment interest not to be payable in relation
to certain periods

23. Section 41 of the Principal Act is amended:
(a) by omitting from subsection (1) "Minister or a prescribed officer" and substituting "Secretary";
(b) by omitting from subsection (4) "Minister or the prescribed officer" and substituting "Secretary";
(c) by omitting subsection (7).

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 24
Recovery of certain overpayments from third parties

24. Section 42 of the Principal Act is amended:
(a) by omitting from subsection (3) "A prescribed officer" and substituting "The Secretary";
(b) by omitting from subsection (6) "The prescribed officer" and substituting "The Secretary";
(c) by omitting from paragraph (9)(a) "a prescribed officer" and substituting "the Secretary";
(d) by omitting from subsection (13) "a prescribed officer" and substituting "the Secretary";
(e) by omitting from paragraph (13)(b) "the prescribed officer" and substituting "the Secretary";
(f) by omitting from subsection (14) "a prescribed officer" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 25
Write off and waiver of certain overpayments etc.

25. Section 43 of the Principal Act is amended by omitting subsections (2) to (6) and substituting the following subsections:

"(2) Section 284 and Subdivision D of Division 15 of Part 8 apply to recoverable amounts referred to in subsection (1) in the same way as that section and that Subdivision apply to debts recoverable by the Commonwealth under Subdivision B of Division 15 of that Part.

"(3) In the application of Subdivision D of Division 15 of Part 8 to recoverable amounts referred to in subsection (1), that Subdivision has effect as if the reference in subsection 289(5) to $200 were a reference to $50.".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 26
Repeal of section

26. Section 44 of the Principal Act is repealed.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 27
Repeal of sections

27. Sections 45 to 47 of the Principal Act are repealed.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 28
Obligation to notify happening of certain events

28. Section 48 of the Principal Act is amended by inserting "other than Part 8" after "Act".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 29
Offences

29. Section 49 of the Principal Act is amended:
(a) by inserting "other than Part 8" after "Act" (wherever occurring);

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(b) by omitting from subsection (3) "a prescribed officer" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 30
Proceedings against corporations

30. Section 50 of the Principal Act is amended:
(a) by omitting from subsection (1) "this Act or the regulations" and substituting "this Act (other than Part 8) or regulations made for the purposes of this Act (other than Part 8)";
(b) by omitting from subsection (2) "this Act and the regulations" and substituting "this Act (other than Part 8) and regulations made for the purposes of this Act (other than Part 8)".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 31
Evidentiary certificates

31. Section 51 of the Principal Act is amended:
(a) by omitting from subsection (1) "a prescribed officer" (twice occurring), and substituting "the Secretary";
(b) by inserting in paragraph (1)(a) "other than Part 8" after "Act";
(c) by omitting from subsection (2) "by a prescribed officer" and substituting "by the Secretary";
(d) by omitting from paragraph (2)(h) "an authorised person or a prescribed officer" and substituting "the Secretary";
(e) by omitting from subsection (3) "a prescribed officer" and substituting "the Secretary".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 32
Repeal of sections

32. Sections 52, 53 and 54 of the Principal Act are repealed.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 33
Appropriation

33. Section 55A of the Principal Act is amended by inserting after subsection (1A) the following subsection:
"(1B) The following payments are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly:
(a) payments under Part 8 (other than section 136);
(b) payments to a person under the Social Security Act 1991 the making of which is dependent upon the person being qualified for youth training allowance under Part 8.".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 34
Repeal of section

34. Section 55B of the Principal Act is repealed.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 35
Regulations

35. Section 56 of the Principal Act is amended by omitting para-graph (c).

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 36
Addition of new Parts and Schedules

36. After Part 7 of the Principal Act the following Parts and Schedules are added:
"PART 8-YOUTH TRAINING ALLOWANCE
"Division 1-Interpretation
Application of Part 1.2 of the Social Security Act
"57.(1) Subject to subsection (4), the provisions of Part 1.2 of the Social Security Act apply for the purposes:
(a) of this Part; and
(b) of Parts 9 and 10 in so far as those Parts apply to youth training allowance.

"(2) Without limiting the generality of subsection (1), if a provision of Part 1.2 of the Social Security Act applies only for the purposes of a particular provision or particular provisions of that Act, then, subject to subsection (4), the first-mentioned provision also applies for the purposes of any provision:
(a) of this Part; or
(b) of Part 9 or 10 in so far as that Part applies to youth training allowance; that corresponds to that particular provision or those particular provisions of the Social Security Act.

"(3) In applying a provision of Part 1.2 of the Social Security Act under subsection (1) or (2) for the purposes:
(a) of this Part or a provision of this Part; or
(b) of Part 9 or 10, or a provision of Part 9 or 10, in so far as that Part applies to youth training allowance;
this Part, and Parts 9 and 10 in so far as they so apply, are to be treated as if they were incorporated in the Social Security Act.

"(4) A provision of Part 1.2 of the Social Security Act only applies under subsection (1) or (2) in so far as it is not inconsistent:
(a) with this Part; and
(b) with Parts 9 and 10 in so far as those Parts apply to youth training allowance.

Interpretation

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Definitions
"58.(1) In this Part, unless the contrary intention appears:
'activity test deferment period' has the same meaning as in the Social Security Act but includes a period worked out under section 109 of this Act in relation to the application of a youth training allowance automatic deferment provision included in Subdivision F of Division 2 of this Part;
'administrative breach deferment period' has the same meaning as in the Social Security Act but includes a period worked out under section 116 of this Act in relation to the application of a youth training allowance automatic deferment provision included in Subdivision G of Division 2 of this Part;
'approved organisation' means an organisation approved under section 59 or under section 28 of the Social Security Act;
'assurance of support debt' means a debt due and payable by a person to the Commonwealth, or a liability of a person to the Commonwealth, because of the operation of Part 5 of the Migration (1993) Regulations in respect of the payment to another person of youth training allowance;
'automatic deferment provision' means:
(a) a youth training allowance automatic deferment provision; or
(b) a JSA automatic deferment provision; or
(c) an NS allowance automatic deferment provision; or
(d) section 126 of the Social Security Act;
'available money' has the same meaning as in the Social Security Act but does not include money to which Subdivision G of Division 11 of this Part applies;
'Commonwealth funded employment program' means a Commonwealth program of funding to a community or group where the funding is based, either wholly or partly, on the number of people in that community or group who are, or are likely to be, qualified for youth training allowance, job search allowance or newstart allowance;
'current figure', as at a particular time and in relation to an amount that is to be indexed under Division 13, means:
(a) if the amount has not yet been indexed under that Division before that time-the amount; or
(b) if the amount has been indexed under that Division before that time-the amount most recently substituted for the amount under that Division before that time;
'deferment period' means an activity test deferment period or an administrative breach deferment period;
'dependent child' has the meaning that would be given to that expression by subsections 5(2) to (9) of the Social Security Act if references in those subsections to a young person were references to a person;
'discretionary deferment provision' means:
(a) a youth training allowance discretionary deferment provision; or
(b) a JSA discretionary deferment provision; or
(c) an NS allowance discretionary deferment provision;
'education leavers waiting period' means an education leavers waiting period under section 98;
'entry contribution' has the same meaning as in section 1147 of the Social Security Act;
'fringe benefits year' means a year beginning on 1 April;
'managed investment' has the same meaning as in the Social Security Act but does not include a loan within the meaning of Subdivision G of Division 11 of this Part;
'net property loss', in relation to a person for an accounting period, means:
(a) if the expenses incurred by the person on rental property during the period are more than the person's gross rental property income for the period-the amount by which those expenses are more than that gross rental property income; or
(b) if the expenses incurred by the person on rental property during the period are not more than the person's gross rental property income for the period-nil;
'newly arrived residents waiting period' means a newly arrived residents waiting period under section 101;
'ordinary waiting period' means an ordinary waiting period under section 96;
'parent', in relation to a person (the'relevant person'), means (except in Part 2 of Schedule 1):
(a) if the relevant person is not an adopted child-a natural parent of the person; or
(b) if the relevant person is an adopted child-an adoptive parent of the person;
'provisional commencement day' has the meaning given by section 91;
'receiving full-time education' has a meaning affected by subsection (4);
'recipient notification notice' means a notice given by the Secretary under section 149;
'recipient statement notice' means a notice given by the Secretary under section 150;
'registered in allowance category as being unemployed' has the meaning given by subsection (2);

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'served the waiting period' has the meaning given by subsection (3);
'Social Security Act' means the Social Security Act 1991;
'this Part' includes the Schedules;
'transferee to the youth training allowance' and'transfer day' have the meanings given by section 61;
'unused annual leave waiting period' means an unused annual leave waiting period under section 93;
'waiting period' means:
(a) an unused annual leave waiting period; or
(b) an ordinary waiting period; or
(c) an education leavers waiting period; or
(d) a newly arrived residents waiting period;
'Youth Training Activity Agreement' has the meaning given by subsection 79(4);
'youth training allowance automatic deferment provision' means:
(a) subsection 103(1) (failure to satisfy activity test); or
(b) subsection 104(1) (failure to enter into an activity agreement); or
(c) subsection 105(1) (failure to comply with an activity agreement); or
(d) section 106 (unemployment due to voluntary act); or
(e) section 107 (unemployment due to misconduct); or
(f) section 108 (refusal of offer of employment); or
(g) subsection 114(3) (failure to comply with Secretary's requirements); or
(h) subsection 115(1) (failure to comply with notification requirement);
'youth training allowance discretionary deferment provision' means:
(a) subsection 114(1) (failure to comply with Secretary's requirements); or
(b) subsection 120(1) (failure to continue Commonwealth Employment Service registration); or
(c) subsection 121(1) (seasonal workers); or
(d) subsection 122(1) (lower employment prospects).

Registered in allowance category as being unemployed
"(2) A person registered by the Commonwealth Employment Service as being unemployed is registered in an allowance category as being unemployed if the person:
(a) is so registered for the purposes of the Social Security Act; or (b) is registered in a category approved by the Secretary for the purposes of this Part as being unemployed.

Served the waiting period
"(3) If a person is subject to an unused annual leave waiting period or an ordinary waiting period for youth training allowance, the person is taken to have served the waiting period if, and only if:
(a) the waiting period has ended; and
(b) the person was, throughout the waiting period, qualified for youth training allowance.

Receiving full-time education-education leavers
"(4) If:
(a) a person ceases to receive full-time education at a school, college or university; and
(b) youth training allowance is not payable to the person because of an education leavers waiting period;
the person is taken to be receiving full-time education at a school, college or university during the period for the purposes of this Part (other than sections 98, 99 and 100).

Approval of voluntary organisations (activity test)
"59. The Secretary may, for the purposes of section 77, by writing, approve organisations that he or she considers provide vocationally useful full-time voluntary work.

Calculation of amount of pharmaceutical allowance paid
Calculation of rate
"60.(1) If:
(a) a person is paid an instalment of youth training allowance on a particular day; and
(b) an amount by way of pharmaceutical allowance is to be added to the person's maximum basic rate in working out the amount of the instalment;
then, for the purposes of this Part, the amount of pharmaceutical allowance paid to the person on that day is the amount worked out using subsections (2), (3) and (4).

Allowance rate for whole fortnights
"(2) If the instalment is for a fortnight or a period of whole fortnights, the amount of allowance paid is the amount worked out using the formula:
pharmaceutical allowance rate x number of fortnights
where:
'pharmaceutical allowance rate' is the fortnightly amount of pharmaceutical allowance added to the person's maximum basic rate in working out the amount of the instalment;

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'number of fortnights' is the number of fortnights in the period for which the instalment is paid.

Allowance rate for period less than a fortnight
"(3) If the instalment is for a period of less than a fortnight, the amount of allowance paid is the amount worked out using the formula:
pharmaceutical allowance rate x week days in period
10
where:
'pharmaceutical allowance rate' is the fortnightly amount of pharmaceutical allowance added to the person's maximum basic rate in working out the amount of the instalment;
'week days in period' is the number of week days in the period for which the instalment is paid.

Allowance rate for whole fortnights and additional days
"(4) If the instalment is for a period that consists of:
(a) a fortnight or a number of whole fortnights; and
(b) a period of less than a fortnight;
the amount of allowance paid is the amount worked out using the formula:
( week days in)
pharmaceutical ( number of whole + short period)
allowance rate ( fortnights 10 )
where:
'pharmaceutical allowance rate' is the fortnightly amount of pharmaceutical allowance added to the person's maximum basic rate in working out the amount of the instalment;
'number of whole fortnights' is the number of whole fortnights in the period for which the instalment is paid;
'week days in short period' is the number of days in the period that is less than a fortnight.

Transferee to youth training allowance
Single person
"61.(1) If:
(a) a person becomes qualified for a youth training allowance; and
(b) immediately before becoming qualified for the allowance the person was receiving:
(i) a social security pension or service pension (an'old
pension'); or
(ii) a social security benefit (an'old benefit'); and
(c) the person ceases to receive the old pension or old benefit;
then, for the purposes of this Part, the person is a transferee to the youth training allowance and the person's transfer day is the day that immediately follows:
(d) if the person was receiving an old pension-the person's last pension payday; or
(e) if the person was receiving an old benefit-the day on which the person ceases to receive the old benefit.

Member of couple
"(2) If:
(a) a person becomes qualified for a youth training allowance; and
(b) immediately before becoming qualified for the allowance:
(i) the person was a member of a couple; and
(ii) the person's partner was receiving a social security benefit
or a rehabilitation allowance;
then, for the purposes of this Part, the person is a transferee to the youth training allowance and the person's transfer day is the day on which the person becomes qualified for the youth training allowance.

Tables, notes etc. form part of section
Table and Key to a Table
"62.(1) For the purposes of this Act, a Table and a Key to a Table are to be taken to be part of:
(a) if the Table occurs in a section containing subsections-the subsection immediately before the Table; and
(b) if the Table occurs in a section that does not contain subsections-the section.

Notes
"(2) For the purposes of this Act, a Note is to be taken to be part of:
(a) if the Note immediately follows a section that does not contain subsections-the section; or
(b) if the Note immediately follows a subsection-the subsection; or
(c) if the Note immediately follows a point in a MODULE in a Schedule-the point; or
(d) if the Note immediately follows a Step in a Method Statement and is aligned with the text of the Step-the Step; or
(e) if the Note immediately follows a Table-the Table; or

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(f) if the Note immediately follows a paragraph and is aligned with the text of the paragraph-the paragraph.

Modules
"(3) Part 2 of Schedule 1 and Schedule 4 are divided into MODULES (for example, MODULE A).

Points
"(4) A MODULE in a Schedule is divided into points.

Payments are period-based
Period-based payments
"63.(1) Payments under this Part are referable to periods.

Effect of payments being period-based
"(2) If a payment is payable to a person, the person will be paid only for the particular period (which might be less than a fortnight) in respect of which the payment is payable.
Note: The qualifications for a payment usually require the qualifying conditions to be met throughout a particular period and the payment is expressed as being 'in respect of' or 'for' that period.

Qualification for, or payability of, youth training allowance
"64. Before a youth training allowance is payable to a person under this Part:
(a) the person must be qualified for the allowance; and
(b) there must be nothing in this Part that makes the allowance not payable to the person (for example, a waiting period provision, a multiple entitlement exclusion provision or a compensation preclusion provision).
Note: Provisions in the Part relating to paragraph (a) matters refer to the 'person' being'qualified','disqualified' or 'not qualified' for the allowance and provisions in the Part relating to paragraph (b) matters refer to the allowance being'payable' or 'not payable' to the person.

"Division 2-Qualification for, and payability of, youth training
allowance
"Subdivision A-Basic qualifications
Qualification for youth training allowance
Basic qualifications
"65.(1) Subject to subsection (2) and to sections 66, 67 and 72, a person is qualified for a youth training allowance in respect of a period if:
(a) the person did not receive job search allowance at any time during either:
(i) the 6 weeks immediately before the period; or
(ii) the 6 weeks immediately before the person's provisional
commencement day; and
(b) the person satisfies the Secretary that throughout the period the person is unemployed; and
(c) throughout the period, or each period within the period, the person either:
(i) satisfies the activity test; or
(ii) is not required to satisfy the activity test; and
(d) when the person is required by the Secretary to enter into a Youth Training Activity Agreement in relation to the period, the person enters into the agreement; and
(e) while the agreement is in force, the person satisfies the Secretary that the person is taking reasonable steps to comply with the terms of the agreement; and
Note: See subsection (4) on taking reasonable steps.
(f) at all times when the person is a party to the agreement, the person is prepared to enter into another such agreement instead of the existing agreement if required to do so by the Secretary; and
(g) throughout the period, the person:
(i) is over the age of 16 years but under the age of 18 years; and
(ii) is an Australian resident; and
(iii) is in Australia; and
Note: See subsection (5).
(iv) is registered by the Commonwealth Employment Service in an
allowance category as being unemployed.
"(2) If:
(a) a person is receiving sickness allowance at the commencement of this Part; and
(b) the person ceases to receive sickness allowance and immediately afterwards would, apart from paragraph (1)(a), become qualified for a youth training allowance; and
(c) immediately before the person received sickness allowance the person was receiving job search allowance;
the receipt of that job search allowance is not to be taken into account for the purposes of paragraph (1)(a).


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Basic qualifications for certain people aged 15 years
"(3) Subject to sections 66, 67 and 72, a person is qualified for youth training allowance in respect of a period if:
(a) throughout the period the person is over the age of 15 years but under the age of 16 years; and
(b) had the person reached the age of 16 years, he or she would have been qualified for a youth training allowance in respect of the period under subsection (1); and
(c) the person satisfies the Secretary that the person:
(i) has an employment history involving full-time employment that
was on either a permanent basis or a regular casual basis; or
(ii) has received an offer of employment of that kind but has been
unable to take up the offer for reasons beyond his or her control; or
(iii) has been registered by the Commonwealth Employment Service
in an allowance category as being unemployed for at least 13 weeks; and
(d) before the period begins:
(i) the person reached the minimum school leaving age for the
State or Territory in which the person is living; or
(ii) a formal exemption from attending school was granted in
respect of the person by the education authority of that State or Territory; and
(e) throughout the period, the person:
(i) does not live at a home of either of his or her parents; and
(ii) does not receive regular financial support from either of
those parents.

What are reasonable steps
"(4) For the purposes of paragraph (1)(e), a person is taking reasonable steps to comply with the terms of a Youth Training Activity Agreement unless the person has failed to comply with the terms of the agreement and:
(a) the main reason for failing to comply involved a matter that was within the person's control; or
(b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.

Attendance at Reserve or Emergency Force training camp
"(5) A person is not disqualified for youth training allowance because of being outside Australia during a period if the person is attending a training camp during that period as a member of:
(a) the Australian Naval Reserve; or
(b) the Naval Emergency Reserve Forces; or
(c) the Australian Army Reserve; or
(d) the Australian Air Force Reserve; or
(e) the Air Force Emergency Force; or
(f) the Army Individual Emergency Reserve.

Person taken to be qualified
"(6) If:
(a) a person was receiving a social security pension; and
(b) the person claims a youth training allowance within 14 days after the day on which the last instalment of the person's pension was paid; and
(c) the person becomes qualified for a youth training allowance at some time during the 14 day period but after the first day of that period;
the person is taken to be qualified for a youth training allowance for the whole of the 14 day period.
Note 1: A person may be treated as unemployed (see section 68).
Note 2: The activity test is set out in section 75.
Note 3: For 'allowance category' see subsection 58(2).
Note 4: For 'Australian resident' see section 7 of the Social Security Act.
Note 5: A person may not be qualified if the person's unemployment is due to industrial action (see section 69).
Note 6: A person may not be qualified if the person has reduced the person's employment prospects by moving to an area of lower employment prospects (see section 71).
Note 7: If circumstances beyond the person's control prevent the person from being registered by the Commonwealth Employment Service, this requirement may be waived (see section 73).
Note 8: A person unregistered by the Commonwealth Employment Service for up to 6 weeks may be taken to be registered (see section 73).
Note 9: A youth training allowance is not payable in certain circumstances even if the person is qualified (see Subdivisions D, E, F, G and H).
Note 10: A youth training allowance may continue to be paid during incapacity (see section 66).
Note 11: Qualification for a youth training allowance may continue to the end of the last pay period (see section 67).
Note 12: Section 76 relieves people attending training camps mentioned in subsection 65(5) from the activity test.
Note 13: Subsection (6) operates when a person transfers from a pension to a youth training allowance and the person is not qualified for a youth training allowance immediately after the day on which the person's last instalment of
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pension is paid. The subsection treats the person as being so qualified. As a result, the person may be paid a youth training allowance for the period beginning on the day after the day on which the person's last instalment of pension was paid. The subsection aims to ensure that there is minimal disruption to a person's payments when a person transfers from a pension to a youth training allowance.

Effect of incapacity on qualification
Meaning of'sickness period'
"66.(1) In this section:
'sickness period', in relation to a person, means a period:
(a) for which the person would be qualified for a sickness allowance under section 666 of the Social Security Act if subsections 666(7) and (8) of that Act were disregarded; and
(b) that begins while the person is receiving a youth training allowance.

Sickness period less than 13 weeks
"(2) Subject to subsections (3) and (4), a person is qualified for a youth training allowance in respect of a sickness period of the person if the Secretary does not expect that period to be longer than 13 weeks.

Sickness period for longer than 13 weeks
"(3) If:
(a) a person is qualified for a youth training allowance in respect of a period under subsection (2); and
(b) the period lasts for longer than 13 weeks;
the person ceases to be qualified for a youth training allowance 13 weeks after the period began.

Sickness period after reaching 18 years of age
"(4) A person is not qualified for a youth training allowance in respect of any part of a sickness period that occurs after the person reaches the age of 18 years.

Youth training allowance may continue to end of payment period
"67. If:
(a) a person is receiving a youth training allowance; and
(b) apart from this section, the person would cease on a particular day to be qualified for the allowance because the person reaches the age of 18 years; and
(c) that day falls in, but is not the last day of, a period for which an instalment of youth training allowance is payable to the person;
the person continues to be qualified for the allowance until the end of that period.

People may be treated as unemployed
Work may be disregarded
"68.(1) If:
(a) a person undertakes paid work during a period; and
(b) the Secretary is of the opinion that, taking into account:
(i) the nature of the work; and
(ii) the duration of the work; and
(iii) any other matters relating to the work that the Secretary
thinks relevant;
the work should be disregarded;
the Secretary may treat the person as being unemployed throughout the period.

Compliance with activity test requirement
"(2) A person complying with:
(a) a requirement under subsection 75(7) (activity test); or
(b) a Youth Training Activity Agreement;
may be treated by the Secretary as being unemployed.

Matters relevant to Secretary's decision
"(3) In deciding whether to treat a person as being unemployed, the Secretary is to take into account:
(a) the nature of the activity undertaken by the person so as to comply with a requirement under subsection 75(7) (activity test) or a Youth Training Activity Agreement; and
(b) the duration of the activity; and
(c) any other matters relating to the activity that the Secretary thinks relevant.

Unemployment due to industrial action
Applicant engaged in industrial action
"69.(1) A person is not qualified for a youth training allowance in respect of a period unless the person satisfies the Secretary that the person's unemployment during the period was not due to the person being, or having been, engaged in industrial action or in a series of industrial actions.


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Other people engaged in industrial action
"(2) If:
(a) a person's unemployment during a period was due to other people being, or having been, engaged in industrial action or in a series of industrial actions; and
(b) the people, or some of the people, were members of a trade union that was involved in the industrial action; the person is not qualified for a youth training allowance in respect of the period unless the Secretary is satisfied that the person was not a member of the trade union during the period.

Period after industrial action stops
"(3) Subsections (1) and (2) do not prevent a person from being qualified for a youth training allowance in respect of a period that occurs after the relevant industrial action or series of industrial actions have stopped.
Note: For 'industrial action','trade union' and'unemployment' see section 16 of the Social Security Act.

Assurance of support
"70. A person is not qualified for a youth training 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 (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) of the Social Security Act.

Move to area of lower employment prospects
Move to an area without sufficient reason
"71.(1) Subject to subsection (2), a person is not qualified for a youth training allowance on a day on which, in the opinion of the Secretary, the person has reduced his or her employment prospects by moving to a new place of residence without sufficient reason.

Not applicable to certain people
"(2) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.

What constitutes sufficient reason
"(3) For the purposes of subsection (1), a person has a sufficient reason for moving to a new place of residence if, and only if, the person:
(a) moves to accompany a parent who changes his or her residence; or
(b) moves to live with a family member who has already established his or her residence in that place of residence; or
(c) moves to live near a family member who has already established residence in the same area; or
(d) satisfies the Secretary that the move is necessary for the purpose of treating or alleviating a physical disease or illness suffered by the person or by a family member.
Note: For 'family member' see subsection 23(1) of the Social Security Act.

Liquid assets test waiting period
Definitions
"72.(1) In this section:
'liquid assets', in relation to a person, means the person's cash and readily realisable assets, and includes:
(a) the person's shares in, and debentures issued by, a public company within the meaning of the Corporations Law; and
(b) amounts deposited with, or otherwise lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and
(c) amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person;
but does not include an amount that is an eligible termination payment for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;
'maximum reserve', in relation to a person, means:
(a) if the person is not a member of a couple and does not have a dependent child-$5,000; or
(b) in any other case-$10,000.

Liquid assets
"(2) For the purposes of this Part, a person's liquid assets are taken to include:

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(a) the liquid assets of the person's partner; and
(b) the liquid assets of the person and the person's partner.

Transfer taken not to have occurred
"(3) If:
(a) during the 4 weeks immediately before a person claims youth training allowance, the person or the person's partner transfers liquid assets to a person of any age who is the natural or adopted child of the person or the partner; and
(b) either:
(i) the person transferring receives no consideration or
inadequate consideration, in money or money's worth, for the transfer; or
(ii) the Secretary is satisfied that the purpose, or the dominant
purpose, of the transfer was to enable the claimant to obtain youth training allowance;
then the transfer is taken, for the purposes of this section, not to have occurred.

Liquid assets test
"(4) Subject to subsections (10), (11), (12) and (13), if:
(a) the value of a person's liquid assets is more than the person's maximum reserve on:
(i) the day on which the person becomes unemployed; or
(ii) the day on which the person claims a youth training
allowance; and
(b) the person is not a transferee to a youth training allowance;
the person is not qualified for a youth training allowance for a period unless the person has served the liquid assets test waiting period in relation to the claim before the beginning of that period.
Note 1: For 'transferee to a youth training allowance' see section
61.
Note 2: For 'served the liquid assets test waiting period' see
subsection (14).

Waiting period
"(5) The liquid assets test waiting period in relation to the claim lasts for 4 weeks.

Operation of subsections (7) and (8)
"(6) Subsection (7) applies for the purpose of determining, at a time before 20 March 1995, when a liquid assets test waiting period starts, and subsection (8) applies for the purpose of the making of such a determination on or after that date.

Start of waiting period before 20 March 1995
"(7) Subject to subsections (6) and (9) the liquid assets test waiting period in relation to the claim starts on the day on which the person becomes unemployed.

Start of waiting period on or after 20 March 1995
"(8) Subject to subsections (6) and (9), the liquid assets test waiting period in relation to the claim starts:
(a) if the person is not a member of a couple-on the day on which the person became unemployed; or
(b) if the person is a member of a couple-on the last occurring of the following days:
(i) the day on which the person became unemployed;
(ii) if, when the claim is made, the person's partner is
unemployed-the day on which the person's partner became unemployed;
(iii) if, when the claim is made, the person's partner is
incapacitated for work-the day on which the person's partner became incapacitated for work.

Effect of incapacity for work
"(9) If:
(a) a person becomes incapacitated for work; and
(b) because of section 676 (sickness allowance liquid assets test disqualification) of the Social Security Act, the person is not qualified for sickness allowance during the period of 4 weeks that starts on the day on which the person becomes incapacitated for work; and
(c) within that period of 4 weeks:
(i) the person ceases to be incapacitated for work; and
(ii) the person becomes registered by the Commonwealth Employment
Service in an allowance category as being unemployed; and
(d) within 14 days after the day on which the person becomes so registered by the Commonwealth Employment Service, the person claims a youth training allowance;
the liquid assets test waiting period starts on the day on which the person becomes incapacitated for work.


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Person serving liquid assets test waiting period
"(10) On or after 20 March 1995, subsection (4) does not apply to a person if, at any time during the 12 months before:
(a) the day on which the person becomes unemployed; or
(b) the day on which the person claims youth training allowance;
the person was serving a liquid assets test waiting period under this Part or the Social Security Act that started during that 12 months.

Waiver for disadvantage or hardship
"(11) If the Secretary is satisfied that the application of subsection (4) to a person will cause undue long term disadvantage or significant hardship to the person, the Secretary may:
(a) waive the application of that subsection to the person; and
(b) authorise the payment of a youth training allowance to the person.

No application to certain transferees to youth training allowance
"(12) Subsection (4) does not apply to a person if both of the following conditions apply:
(a) the person is a transferee to youth training allowance;
(b) the person claims the youth training allowance:
(i) within 14 days of the transfer day; or
(ii) if the person becomes registered by the Commonwealth
Employment Service in an allowance category as being unemployed within 14 days after the transfer day-within 14 days of the person becoming so registered or any further period that the Secretary considers reasonable.

Exemption
"(13) Subsection (4) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.

Person taken to have served liquid assets test waiting period
"(14) A person who is subject to a liquid assets test waiting period for a youth training allowance is taken to have served the waiting period if, and only if:
(a) the waiting period has ended; and
(b) the person was, apart from this section, qualified for the allowance throughout so much of the waiting period as occurred after the claim for the allowance was made.

Registration by Commonwealth Employment Service
Certain people not required to be registered at Commonwealth Employment Service
"73.(1) The Secretary may decide that a person does not have to satisfy subparagraph 65(1)(g)(iv) (Commonwealth Employment Service registration) for a period if:
(a) the person was not registered as unemployed by the Commonwealth Employment Service during the period; and
(b) the Secretary is satisfied that there are circumstances beyond the person's control relating to the person's failure to be registered; and
(c) having regard to those circumstances, the Secretary is satisfied that the person's failure to be registered should be disregarded in respect of the period.

Period of registration for purposes of 12 month limit
"(2) If, because of subsection (1), a person does not have to satisfy subparagraph 65(1)(g)(iv) for a period, then, for the purposes of that subparagraph, the period is one for which the person is taken to be registered as required by that subparagraph.

Registration ceasing for less than 6 weeks
"(3) If a person:
(a) is registered by the Commonwealth Employment Service in an allowance category as being unemployed; and
(b) ceases for a period of not longer than 6 weeks to be registered by the Commonwealth Employment Service in an allowance category as being unemployed; and
(c) at the end of that period becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed;
then, for the purposes of subparagraph 65(1)(g)(iv), the person is taken to have been registered throughout that period by the Commonwealth Employment Service in an allowance category as being unemployed.

Prospective determinations for some claimants
"74. A person is qualified for youth training allowance in respect of a period, if:

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(a) the person was, immediately before starting to receive youth training allowance, receiving:
(i) a social security benefit; or
(ii) a rehabilitation allowance instead of a social security
benefit; and
(b) the last payment of that benefit or allowance was made in respect of a period that ended after the day on which the payment was made; and
(c) the person may, in the Secretary's opinion, reasonably be expected to satisfy the qualification requirements for youth training allowance (see sections 65 to 73) during the period.

"Subdivision B-Activity test
Activity test
Satisfaction of activity test
"75.(1) Subject to subsections (2) and (8), a person satisfies the activity test in respect of a period if the person satisfies the Secretary that, throughout the period, the person is:
(a) actively seeking; and
(b) willing to undertake
paid work, other than paid work that is unsuitable to be undertaken by the person.
Note 1: For situations in which a person is not required to satisfy the activity test see:
(a) section 76 (people attending training camp);
(b) section 77 (certain people engaged in voluntary work);
(c) section 78 (special circumstances).
Note 2: See subsections (8) to (11) on what paid work is unsuitable.

Requirement regarding job application
"(2) The Secretary may notify a person that the person must apply for a particular number of advertised job vacancies in the period stated in the notice.

Failure to comply
"(3) If the person fails to take reasonable steps to comply with the notice under subsection (2), the person is taken not to satisfy the activity test in respect of the period stated in the notice.
Note: See subsection (15) on taking reasonable steps.

Statement from employer
"(4) A person is taken to have applied for a job vacancy as required under the notice under subsection (2) only if the person gives the Secretary a written statement from the employer concerned that confirms that the person applied for the job vacancy.

Form of statement
"(5) The statement from the employer must be in a form approved by the Secretary.

Special circumstances
"(6) Subsection (4) does not apply to a person if the Secretary is satisfied that there are special circumstances in which it is not reasonable to expect the person to give the statement referred to in that subsection.

Participation in courses
"(7) A person also satisfies the activity test in respect of a period if the Secretary is of the opinion that, throughout the period, the person:
(a) should undertake particular paid work other than paid work that is unsuitable to be done by the person; or
(b) should:
(i) undertake a course of vocational training; or
(ii) participate in a labour market program; or
(iii) participate in a rehabilitation program; or
(iv) participate in another course;
approved by the Secretary that is likely to:
(v) improve the person's prospects of obtaining suitable paid
work; or
(vi) help the person in seeking suitable paid work; or
(c) if the person lives in an area where:
(i) there is no locally accessible labour market; and
(ii) there is no locally accessible vocational training course or
labour market program;
should participate in an activity suggested by the person and approved by the Commonwealth Employment Service;
and, after the Secretary notifies the person that the person is required to act in accordance with the opinion, the person takes reasonable steps to comply, throughout the period, with the Secretary's requirement.
Note: See subsection (15) on taking reasonable steps.

Unsuitable work

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"(8) For the purposes of subsection (1) and paragraph (7)(a), particular paid work is unsuitable for a person if, and only if, in the Secretary's opinion:
(a) the person lacks the particular skills, experience or qualifications that are needed to perform the work; or
(b) the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or
(c) performing the work in the conditions in which the work would be performed would constitute a risk to health or safety and would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or
(d) the work would involve the person being self-employed; or
(e) the work would be covered by an industrial award but the employer would only employ the person if the person agreed to become a party to an agreement reducing or abolishing rights that the award confers on employees; or
(f) the work would not be covered by an industrial award and the remuneration for the work would be lower than the minimum applicable rate of remuneration for comparable work that is covered by an industrial award; or
(g) commuting between the person's home and the place of work would be unreasonably difficult; or
(h) for any other reason, the work is unsuitable for the person.

Commuting-unreasonable difficulty
"(9) For the purposes of paragraph (8)(g), commuting is not unreasonably difficult if:
(a) the sole or principal reason for the difficulty is that the commuting involves a journey, either from the person's home to the place of work or from the place of work to the person's home, that does not normally exceed 90 minutes in duration; or
(b) in the Secretary's opinion a substantial number of people living in the same area as the person regularly commute to their places of work in circumstances similar to those of the person.

"(10) Subsection (9) does not limit the Secretary's discretion to form the opinion that, for the purposes of paragraph (8)(g), commuting is not unreasonably difficult.

Remuneration for work
"(11) A reference in subsection (8) to remuneration for work is a reference to any income derived from the work that is income from personal exertion.
Note: For'income from personal exertion' see subsection 8(1) of the Social Security Act.

Failure to take reasonable steps to comply with requirements
"(12) If a person fails to take reasonable steps to comply, throughout a period, with a requirement of the Secretary under subsection (7), the person cannot be taken to satisfy the activity test in respect of that period in spite of any compliance of the person with subsection (1).

Reasonable steps to comply with terms of Agreement
"(13) A person also satisfies the activity test in respect of a period if, throughout the period, the person is taking reasonable steps to comply with the terms of a Youth Training Activity Agreement between the Commonwealth Employment Service and the person.
Note: See subsection (15) on taking reasonable steps.

Failure to take reasonable steps to comply with terms of Agreement
"(14) If a person fails to take reasonable steps to comply, throughout a period, with the terms of a Youth Training Activity Agreement between the Commonwealth Employment Service and the person, the person cannot be taken to satisfy the activity test in respect of the period in spite of any compliance of the person with subsection (1).
Note: See subsection (15) on taking reasonable steps.

What are reasonable steps
"(15) For the purposes of this section, a person takes reasonable steps to comply with a notice under subsection (2), with a requirement of the Secretary under subsection (7) or with the terms of a Youth Training Activity Agreement (as the case requires) unless the person has failed so to comply and:
(a) the main reason for failing to comply involved a matter that was within the person's control; or
(b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.

Relief from activity test-general
Relief from test for people attending training camps
"76.(1) A person is taken to satisfy the activity test in respect of a period when the person is attending a training camp as a member of:
(a) the Australian Naval Reserve; or
(b) the Naval Emergency Reserve Forces; or

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(c) the Australian Army Reserve; or
(d) the Australian Airforce Reserve; or
(e) the Airforce Emergency Force; or
(f) the Army Individual Emergency Reserve.
Note: Subsection 65(5) relieves people attending these training camps from the requirement of being in Australia to qualify for youth training allowance.

Relief from test for certain people in remote areas
"(2) If the Secretary considers that:
(a) it would be reasonable to assume that, at the end of a period, a person is present in an area described in paragraph 75(7)(c); and
(b) it would also be reasonable to assume that the person is throughout the period:
(i) unemployed; and
(ii) capable of undertaking paid work that in the Secretary's
opinion is suitable to be undertaken by the person; and
(iii) willing to undertake paid work that in the Secretary's
opinion is suitable to be undertaken by the person; and
(c) having regard to all the relevant factors, including:
(i) the location of offices of the Department of Social Security;
and
(ii) difficulties with transport and communication; and
(iii) the educational and cultural background of the person;
it would be unreasonable to expect the person to comply with the activity test in order to be qualified for youth training allowance for the period;
then, unless the person has been notified of a requirement under subsection 75(7) in relation to the period, the person is taken to satisfy the activity test during the period.
Note: For 'activity test' see section 75.

Relief from activity test-people engaged in voluntary work
Conditions for relief from activity test
"77.(1) Subject to subsections (2) and (3), a person is taken to satisfy the activity test in respect of a period if:
(a) on each day in the period the person is engaged in full-time voluntary work with an approved organisation; and
(b) the person has been a qualified beneficiary for at least 3 months immediately before the person starts working for the organisation.

Relief not to apply to certain days
"(2) Subsection (1) does not apply to a day if:
(a) there are already 30 days in the same calendar year on which the person is taken to satisfy the activity test because of subsection (1); or
(b) having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that subsection (1) should not apply in relation to the day.
Note 1: For 'approved organisation' see subsection 58(1).
Note 2: For 'activity test' see section 75.
"(3) Paragraph (1)(b) does not apply if:
(a) the person was employed by the organisation; and
(b) that employment ended on a day, but not later than 2 weeks after that day the person was engaged in full-time voluntary work for the organisation; and
(c) the person is a qualified beneficiary and was a qualified beneficiary immediately after the person started working for the organisation in such a full-time voluntary capacity.

Relief from activity test-special circumstances
Special circumstances
"78.(1) Subject to subsections (2) and (3), a person is not required to satisfy the activity test for a period if:
(a) the Secretary is satisfied that special circumstances, beyond the person's control, exist; and
(b) the Secretary is satisfied that in those circumstances it would be unreasonable to expect the person to comply with the activity test for that period.

Duration of period
"(2) The period referred to in subsection (1) is not to be more than 13 weeks.

Duration where a number of determinations made
"(3) If:
(a) the Secretary makes a number of determinations under subsection (1); and
(b) the periods to which the determinations relate form a continuous period;
the continuous period is not to be more than 13 weeks.


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"Subdivision C-Youth Training Activity Agreements
Youth Training Activity Agreements-requirement
Requirement to enter into Agreement
"79.(1) If a person is claiming or receiving a youth training allowance, the Secretary may require the person to enter into a Youth Training Activity Agreement.

Require to enter other agreement
"(2) The Secretary may require a person who has entered into a Youth Training Activity Agreement to enter into another such agreement instead of the existing one.

Notice of requirement
"(3) The Secretary is to give a person who is required to enter into a Youth Training Activity Agreement notice of:
(a) the requirement; and
(b) the places and times at which the agreement is to be negotiated.

Form of Agreement
"(4) A Youth Training Activity Agreement is a written agreement, in a form approved by the Secretary, with the Commonwealth Employment Service.

Youth Training Activity Agreements-terms
Approved activities
"80.(1) A Youth Training Activity Agreement with a person is to require the person to undertake one or more of the following activities approved by the Secretary:
(a) a job search;
(b) a vocational training course;
(c) training that would help in searching for work;
(d) paid work experience;
(e) measures designed to eliminate or reduce any disadvantage the person has in the labour market, other than measures compelling the person to work in return for payment of youth training allowance;
(f) subject to section 82, if the agreement is entered into on or after 20 March 1995-development of self-employment;
(g) subject to section 83, if the agreement is entered into on or after 20 March 1995-development of and/or participation in group enterprises or co-operative enterprises;
(h) participation in a labour market program conducted by the Commonwealth Employment Service;
(i) participation in a rehabilitation program;
(j) an activity proposed by the person (such as unpaid voluntary work proposed by the person).

Secretary's approval
"(2) The terms of an agreement (including the description of the activities that the person is to be required to undertake) are to be approved by the Secretary.

Secretary's considerations concerning approval of terms
"(3) In considering whether to approve the terms of an agreement with a person, the Secretary is to have regard to the person's capacity to comply with the proposed agreement and the person's needs.

Capacity to comply with agreement, and person's needs
"(4) In having regard to a person's capacity to comply with an agreement and the person's needs, the Secretary is to take into account:
(a) the person's education, experience, skills, age and physical condition; and
(b) the state of the labour market in the locality where the person resides; and
(c) the training opportunities available to the person; and
(d) any matters that the Secretary considers relevant in the circumstances.

Variation, suspension, cancellation and review
"(5) An agreement with a person:
(a) may be varied or suspended by the Secretary; and
(b) if another Youth Training Activity Agreement is made with the person-may be cancelled by the Secretary; and
(c) may be reviewed from time to time by the Secretary at the request of either party to the agreement.

Circumstances preventing or affecting compliance
"(6) The party to an agreement other than the Commonwealth Employment Service must tell the Secretary of any circumstances preventing or affecting the party's compliance with the agreement.

Youth Training Activity Agreements-failure to negotiate
Failure to enter agreement

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"81.(1) If:
(a) a person has been given notice under subsection 79(3) of a requirement to enter into a Youth Training Activity Agreement; and
(b) the Secretary is satisfied, because of the person's failure to:
(i) attend the negotiation of the agreement; or
(ii) respond to correspondence about the agreement; or
(iii) agree to terms of the agreement proposed by the Commonwealth
Employment Service;
or for any other reason, that the person is unreasonably delaying entering into the agreement:
then:
(c) the Secretary may give the person notice that the person is taken to have failed to enter the agreement; and
(d) if the notice is given-the person is taken to have so failed.
Note: Refusal to enter into an agreement disqualifies a person for youth training allowance (see section 65).

Form of notice
"(2) A notice under paragraph (1)(c) must:
(a) be in writing; and
(b) set out the reasons for the decision to give the notice; and
(c) include a statement describing the rights of the person to apply for the review of the decision.

Youth Training Activity Agreements-self-employment
Person previously received allowance
"82.(1) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any development of self-employment unless:
(a) at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving either of the following:
(i) a youth training allowance;
(ii) a job search allowance; and
(b) the Secretary is satisfied that the activity:
(i) will be commercially viable 12 months after the person begins
the activity; and
(ii) is likely to provide the person with sustainable full-time
employment that will provide the person with a level of income at least equivalent to the person's maximum basic rate worked out under MODULE B in Schedule 1.

Time limitation
"(2) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any development of self-employment if:
(a) the person is to undertake the activity for more than 12 months; or
(b) subject to subsection (3), the person has previously been subject to a requirement under that or any other Youth Training Activity Agreement to undertake the same activity or a similar activity; or
(c) at any time during the 6 months immediately before the time at which the activity is to start, the person has been subject to a requirement under that or any other Youth Training Activity Agreement or any Job Search Activity Agreement to undertake as an activity other development of self-employment.

Exception
"(3) Paragraph (2)(b) does not apply if the Secretary determines in writing that there are special circumstances that justify inclusion of the activity in the Youth Training Activity Agreement.

Certain activities excluded
"(4) This section does not apply to an activity to which a paragraph of subsection 80(1) other than paragraph 80(1)(f) or (g) applies.

Youth Training Activity Agreements-group enterprises and co-operative enterprises
Person previously received allowance, and activity will be commercially viable
"83.(1) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any development of a group enterprise or co-operative enterprise unless:
(a) at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving either of the following:
(i) a youth training allowance;
(ii) a job search allowance; and
(b) the Secretary is satisfied that the activity:
(i) will be commercially viable 12 months after the person begins
the activity; and
(ii) is likely to provide the person with sustainable full-time

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employment that will provide the person with a level of income at least equivalent to the person's maximum basic rate worked out under MODULE B in Schedule 1.

Person previously received allowance, and activity will provide work experience
"(2) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any participation in a group enterprise or co-operative enterprise unless:
(a) at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving either of the following:
(i) a youth training allowance;
(ii) a job search allowance; and
(b) the Secretary is satisfied that the activity is likely to provide the person with skills, training or work experience that will help the person to obtain paid employment providing a level of income at least equal to the person's maximum basic rate worked out under MODULE B in Schedule 1.

Agreement not to require certain group activity
"(3) A Youth Training Activity Agreement entered into on or after 20 March 1995 must not require a person to undertake as an activity any development of, or participation in, a group enterprise or co- operative enterprise if:
(a) the person is to undertake the activity for more than 12 months; or
(b) the person has previously been subject to a requirement under that or any other Youth Training Activity Agreement to undertake the same activity or a similar activity; or
(c) at any time during the 6 months immediately before the time at which the activity is to start, the person has been subject to a requirement under that or any other Youth Training Activity Agreement to undertake as an activity other development of, or participation in, a group enterprise or co-operative enterprise.

Exception
"(4) This section does not apply to an activity to which a paragraph of subsection 80(1), other than paragraph 80(1)(f) or (g), applies.

Agreements entered into before 20 March 1995
"84. If a Youth Training Activity Agreement entered into before 20 March 1995 contains a requirement that, because of section 82 or 83, could not have lawfully been included in the agreement if it had been entered into on or after that date, then, on and after that date, the agreement is taken not to include the requirement.

"Subdivision D-Situations in which allowance not payable (general)
Youth training allowance not payable in certain circumstances
Relevant situations
"85.(1) A youth training allowance is not payable to a person for a period during which the person is qualified for youth training allowance if during that period:
(a) the person has not provided a tax file number for the person (see section 86) or for the person's partner (see section 87); or
(b) the person is a full-time student (see section 88); or
(c) another income support payment is being paid to the person (see section 89); or
(d) the person is receiving income that is paid by a community or group from funds provided under a Commonwealth funded employment program (see section 90); or
(e) the youth training allowance has not begun to be payable (see sections 92 and 137); or
(f) the person is subject to an unused annual leave waiting period and has not served that waiting period (see sections 93 to 95); or
(g) the person is subject to an ordinary waiting period and has not served that waiting period (see sections 96 and 97); or
(h) the person is subject to an education leavers waiting period and that period has not ended (see sections 98, 99 and 100); or
(i) the person is subject to a newly arrived residents waiting period and that period has not ended (see sections 101 and 102); or
(j) the person fails to comply with a requirement that the person:
(i) attend an office of the Department of Social Security or of
the Commonwealth Employment Service; or
(ii) contact the Department of Social Security or the Commonwealth
Employment Service; or
(iii) give information;
as required by section 114; or
(k) a period of non-payment has been imposed because the person had previously ceased to be qualified for youth training allowance for failure to satisfy the activity test (see section 103); or
(l) a period of non-payment has been imposed because the person had previously failed to comply with a requirement (see section 114) to:

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(i) attend an office of the Department of Social Security or of
the Commonwealth Employment Service; or
(ii) contact the Department of Social Security or the Commonwealth
Employment Service; or
(iii) give information; or
(m) a period of non-payment has been imposed because:
(i) the person's unemployment is due to a voluntary act of the
person (see section 106); or
(ii) the person's unemployment is due to misconduct by the person
(see section 107); or
(iii) the person has refused an offer of employment (see
section 108); or
(iv) the person failed to comply with notification requirements
(see section 115); or
(v) the person had previously ceased to be qualified for youth
training allowance because the person was not registered with the Commonwealth Employment Service in an allowance category as being unemployed (see section 120); or
(vi) the person is a seasonal worker (see section 121); or
(vii) the person moved to an area of lower employment prospects
(see section 122); or
(n) the person is in gaol or undergoing psychiatric confinement (see section 123); or
(o) the person is subject to a compensation preclusion period (see Division 12).
Note 1: For 'serving of waiting period' see subsection 58(3).
Note 2: For 'allowance category' see subsection 58(2).

Allowance rate nil
"(2) A youth training allowance is not payable to a person if the person's youth training allowance rate would be nil.

Provision of tax file number
Person must provide tax file number or employment declaration
"86.(1) A youth training allowance is not payable to a person if:
(a) the person is requested under section 130 or 147 to:
(i) give the Secretary a written statement of the person's tax
file number; or
(ii) apply for a tax file number and give the Secretary a written
statement of the person's tax file number once it has been issued; and
(b) at the end of 28 days after the request is made, the person has neither:
(i) given the Secretary a written statement of the person's tax
file number; nor
(ii) given the Secretary an employment declaration and satisfied
either subsection (2) or (3).
Note 1: The Secretary can request a claimant for youth training allowance to quote the claimant's tax file number under section 130.
Note 2: The Secretary can request a recipient of youth training allowance to quote the recipient's tax file number under section 147.

Person does not know tax file number
"(2) A person satisfies this subsection if:
(a) the employment declaration states that the person:
(i) has a tax file number but does not know what it is; and
(ii) has asked the Commissioner of Taxation to inform him or her
of the number; and
(b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:
(i) whether the person has a tax file number; and
(ii) if the person has a tax file number-the tax file number; and
(c) the Commissioner of Taxation has not told the Secretary that the person has no tax file number.

Application for tax file number pending
"(3) A person satisfies this subsection if:
(a) the person's declaration states that the person has applied for a tax file number; and
(b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:
(i) if a tax file number is issued to the person-the tax file
number; or
(ii) if the application is refused-that the application has been
refused; or
(iii) if the application is withdrawn-that the application has
been withdrawn; and
(c) the Commissioner of Taxation has not told the Secretary that the person has not applied for a tax file number; and
(d) the Commissioner of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and

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

Provision of partner's tax file number
Member of couple must provide partner's tax file number or declaration
"87.(1) Subject to subsection (4), a youth training allowance is not payable to a person if:
(a) the person is a member of a couple; and
(b) the person is requested under section 131 or 148 to give the Secretary a written statement of the tax file number of the person's partner; and
(c) at the end of 28 days after the request is made the person has neither:
(i) given the Secretary a written statement of the partner's tax
file number; nor
(ii) given the Secretary a declaration by the partner in a form
approved by the Secretary and satisfied either subsection (2) or (3).

Partner does not know tax file number
"(2) A person satisfies this subsection if:
(a) the partner's declaration states that the partner:
(i) has a tax file number but does not know what it is; and
(ii) has asked the Commissioner of Taxation to inform the partner
of the partner's tax file number; and
(b) the person has given the Secretary a document signed by the partner that authorises the Commissioner of Taxation to tell the Secretary:
(i) whether the partner has a tax file number; and
(ii) if the partner has a tax file number-the tax file number; and
(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

Application for partner's tax file number pending
"(3) A person satisfies this subsection if:
(a) the partner's declaration states that the partner has applied for a tax file number; and
(b) the person has given the Secretary a document signed by the partner that authorises the Commissioner of Taxation to tell the Secretary:
(i) if a tax file number is issued to the partner-the tax file
number; or
(ii) if the application is refused-that the application has been
refused; or
(iii) if the application is withdrawn-that the application has
been withdrawn; and
(c) the Commissioner of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and
(d) the application for a tax file number has not been withdrawn.

Secretary may waive requirement
"(4) The Secretary may waive the request for a statement of the partner's tax file number if the Secretary is satisfied that:
(a) the person does not know the partner's tax file number; and
(b) the person can obtain none of the following from the partner:
(i) the partner's tax file number;
(ii) a statement of the partner's tax file number;
(iii) a declaration by the partner under subparagraph (1)(c)(ii).

Full-time students
Allowance not payable to full-time student
"88.(1) Subject to subsection (2), a youth training allowance is not payable to a person who is enrolled in a full-time course of education or of vocational training for the period that:
(a) starts when the person starts the course; and
(b) finishes when the person:
(i) completes the course; or
(ii) abandons the course; or
(iii) gives notice to the provider of the course that the person
wishes to withdraw from the course, or wishes to withdraw from such number of subjects that the person's course will no longer be a full-time course; and
(c) includes periods of vacation.

Periods when allowance payable to full-time student
"(2) Subsection (1) does not prevent a youth training allowance from being payable for any period during which:
(a) a person is enrolled in a course that the Secretary has required the person to undertake under subsection 75(7); or
(b) the person has deferred a course of education.

Multiple entitlement exclusion
Social security pension or benefit becoming payable
"89.(1) If:
(a) a person is receiving a youth training allowance; and
(b) a social security pension or a social security benefit becomes payable to the person;

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a youth training allowance is not payable to the person.
Note 1: Another payment type will generally not become payable to the person until the person claims it.
Note 2: The expression'social security pension' includes sheltered employment and rehabilitation allowances (see subsection 23(1) of the Social Security Act).
Note 3: For the day on which the youth training allowance ceases to be payable see section 151.

Person receiving payment under certain schemes
"(2) Subject to subsections (3) and (4), a youth training allowance is not payable to a person for a period if a payment has been or may be made in respect of the person for that period under:
(a) a prescribed educational scheme, other than the ABSTUDY Tertiary Scheme to the extent that it applies to part-time students; or
(b) the scheme to provide an allowance known as the Maintenance Allowance for Refugees; or
(c) a LEAP program.
Note 1: For 'prescribed educational scheme' see section 5 of the Social Security Act.
Note 2: For 'LEAP program' see subsection 23(1) of the Social Security Act.

Payment before person starts course of study
"(3) If:
(a) a person enrols in a full-time course of education; and
(b) a payment under a scheme referred to in subsection (2) may be made in respect of the person;
the Secretary may decide that, in spite of subsection (2), youth training allowance is payable to the person for a period before the person starts the course.

Application made under AUSTUDY or ABSTUDY Schemes
"(4) If:
(a) a person enrols in a full-time course of education; and
(b) the course is to last for 6 months or more; and
(c) an application is made for a payment in respect of the person under:
(i) the AUSTUDY Scheme; or
(ii) the ABSTUDY Schooling Scheme; or
(iii) the ABSTUDY Tertiary Scheme; and
(d) the person was receiving youth training allowance immediately before the start of the course;
the Secretary may decide that, in spite of subsection (2), youth training allowance is payable to the person until:
(e) the application is determined; or
(f) the end of the period of 3 weeks beginning on the day on which the course starts;
whichever happens first.

Commonwealth funded employment program exclusion
"90. A youth training allowance is not payable to a person for a period if the person has received, or may receive, income for that period that is paid by a community or group from funds provided under a Commonwealth funded employment program.
Note: For 'Commonwealth funded employment program' see subsection 58(1).

Provisional commencement day
Day when person claims benefit
"91.(1) Subject to subsections (2), (3), (4) and (5), a person's provisional commencement day is the day on which the person claims a youth training allowance.

Initial incorrect or inappropriate claim followed by claim for youth training allowance
"(2) If:
(a) the person makes a claim (the'initial claim') for:
(i) a social security pension, a service pension or a social
security benefit; or
(ii) a pension, allowance, benefit or other payment under an Act
other than this Act or the Social Security Act, or under a program administered by the Commonwealth, that is similar in character to a youth training allowance; and
(b) on the day on which the person makes the initial claim, the person is qualified for youth training allowance; and
(c) the person afterwards makes a claim for youth training allowance; and
(d) the Secretary is satisfied that it is reasonable for this subsection to apply to the person;
the person's provisional commencement day is, subject to subsections (3), (4) and (5), the day on which the person made the initial claim.

Claim within 14 days of Commonwealth Employment Service registration

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"(3) If:
(a) a person is not a transferee to youth training allowance; and
(b) the person is not subject to an education leavers waiting period (see subsection 98(1)); and
(c) the person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed; and
(d) the day that would be the person's provisional commencement day under subsections (1) and (2) occurs:
(i) within 14 days after becoming so registered by the
Commonwealth Employment Service; or
(ii) within a further period after becoming so registered by the
Commonwealth Employment Service that the Secretary considers reasonable;
the person's provisional commencement day is the day on which the person became registered by the Commonwealth Employment Service.

Education leavers who claim within 14 days of Commonwealth Employment Service registration
"(4) If:
(a) a person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed; and
(b) the person is subject to an education leavers waiting period (see subsection 98(1));
the person's provisional commencement day is:
(c) if the person becomes so registered by the Commonwealth Employment Service before stopping the course, and the day that would be the person's provisional commencement day under subsections (1) and (2) occurs:
(i) within 14 days after stopping the course; or
(ii) within any further period after stopping the course that the
Secretary considers reasonable;
the day after the last day on which the person was undertaking the course; or
(d) if the person becomes so registered by the Commonwealth Employment Service after stopping the course, and the day that would be the person's provisional commencement day under subsections (1) and (2) occurs:
(i) within 14 days after becoming so registered by the
Commonwealth Employment Service; or
(ii) within any further period after becoming so registered by the
Commonwealth Employment Service that the Secretary considers reasonable;
the day on which the person became so registered by the Commonwealth Employment Service.

Transferees
"(5) If a person is a transferee to youth training allowance and:
(a) the person claims the youth training allowance within 14 days after the transfer day; or
(b) both of the following subparagraphs are satisfied:
(i) the person becomes registered by the Commonwealth Employment
Service in an allowance category as being unemployed within 14 days after the transfer day; and
(ii) the day that would be the person's provisional commencement
day under subsections (1) and (2) occurs within 14 days after the person becomes so registered by the Commonwealth Employment Service or within any further period that the Secretary considers reasonable;
the person's provisional commencement day is the person's transfer day.

Claim resulting from a major disaster
"(6) If a person:
(a) claims a disaster relief payment under the Social Security Act; and
(b) is qualified for the payment; and
(c) as a result of the major disaster to which the payment relates, claims youth training allowance within 14 days after the day on which the person claimed the disaster relief payment;
the person's provisional commencement day is the day on which he or she was affected by the disaster.
Note 1: For 'transferee to a youth training allowance' and'transfer day' see section 61.
Note 2: For 'allowance category' see subsection 58(2).

Start of youth training allowance
"92. A youth training allowance is not payable to a person who is qualified for the allowance before:
(a) if the person is not subject to a waiting period-the person's provisional commencement day; or
(b) if the person is subject to one waiting period only-the first day after the end of that waiting period; or
(c) if the person is subject to more than one waiting period-the first day after all of the waiting periods have ended.
Note 1: For 'provisional commencement day' see section 91.
Note 2: A waiting period is:
(a) an unused annual leave waiting period (see sections 93, 94 and 95); or
(b) an ordinary waiting period (see sections 96 and 97); or

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(c) an education leavers waiting period (see sections 98, 99 and 100); or
(d) a newly arrived residents waiting period (see sections 101 and 102).
Note 3: If the person:
(a) is subject to an unused annual leave waiting period; and
(b) is subject to an ordinary waiting period;
the ordinary waiting period will follow the unused annual leave waiting period (see subsection 97(2)).
Note 4: If the person is subject to an education leavers waiting period and another waiting period, the education leavers waiting period runs concurrently with the other waiting period and the youth training allowance will not be payable until the longest waiting period has ended.
Note 5: If the person is subject to a newly arrived residents waiting period and another waiting period, the newly arrived residents waiting period runs concurrently with the other waiting period and the youth training allowance will not be payable until the longest waiting period has ended.

"Subdivision E-Situations in which allowance not payable
(waiting periods)
Unused annual leave waiting period
Person subject to unused annual leave waiting period
"93.(1) Subject to subsections (2), (3) and (4), a person is subject to an unused annual leave waiting period if:
(a) when the person became unemployed, the person became entitled to receive a payment for unused annual leave; and
(b) the person's provisional commencement day occurs within the notional leave period.

No application to certain transferees
"(2) Subsection (1) does not apply to a person if both of the following conditions apply:
(a) the person is a transferee to youth training allowance;
(b) the person claims the youth training allowance:
(i) within 14 days after the transfer day; or
(ii) if the person becomes registered by the Commonwealth
Employment Service in an allowance category as being unemployed within 14 days after the transfer day-within 14 days after the day on which the person became so registered or any further period that the Secretary considers reasonable.

No application to certain people who become qualified for youth training allowance
"(3) Subsection (1) does not apply to a person who becomes qualified for a youth training allowance at the end of a period for which, under subsection 73(3), the person is taken to have been registered by the Commonwealth Employment Service in an allowance category as being unemployed (non-registration up to 6 weeks).

Exemption
"(4) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.
Note 1: For 'unused annual leave' see section 23 of the Social Security Act.
Note 2: For 'notional leave period' see section 94.
Note 3: For 'provisional commencement day' see section 91.

Notional leave period
Definition of'notional leave period'
"94.(1) A person's notional leave period is the period that:
(a) starts on the day after the day on which the person's employment has ended; and
(b) runs for the number of days for which the person has unused annual leave as worked out under subsections (2) and (3).

Method of working out unused annual leave
"(2) Subject to subsection (3), the number of days for which the person has unused annual leave is worked out as follows:
(a) if the period of unused annual leave is expressed in weeks- multiply by 7 the number of weeks (including fractions of weeks) in the period of unused annual leave and disregard any fraction that results; (b) in any other case-multiply by 7 the number of working weeks (including any fractions of a working week) represented by the period of unused annual leave and disregard any fraction that results.

Maximum unused annual leave
"(3) The number of days for which a person has unused annual leave cannot be more than 28 days.


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Duration of unused annual leave waiting period
"95. A person's unused annual leave waiting period starts on the day after the day on which the person's employment has ended and finishes on the last day of the notional leave period.
Note 1: For'notional leave period' see section 94.
Note 2: An unused annual leave waiting period may apply to a person whether or not the person is subject to an ordinary waiting period. If the person is subject to an ordinary waiting period, that period will start after the unused annual leave waiting period (see subsection 97(2)).
Note 3: For 'provisional commencement day' see section 91.

Ordinary waiting period
"96. A person is subject to an ordinary waiting period unless:
(a) at some time in the 13 weeks immediately before the person's provisional commencement day, the person received:
(i) a youth training allowance; or (ii) a social security
benefit; or
(iii) a social security pension; or
(iv) a service pension; or
(b) the person:
(i) has started formal vocational training in a labour market
program approved by the Secretary or has started a rehabilitation program approved by the Secretary; and
(ii) has been exempted from the application of this section by the
Secretary; or
(c) the person is a member of a couple and the person's partner dies; or
(d) the Secretary is satisfied that the person would suffer severe financial hardship if the person were subject to the ordinary waiting period; or
(e) the following conditions apply:
(i) the person undertakes a LEAP program;
(ii) immediately before undertaking the program, the person was
receiving a social security pension, a social security benefit or a youth training allowance;
(iii) the person completes the program;
(iv) immediately after completing the program, the person is
qualified for youth training allowance;
(v) the person claims youth training allowance within 14 days
after the day on which the person completes the program.
Note 1: For'provisional commencement day' see section 91.
Note 2: For'social security benefit' see subsection 23(1) of the Social Security Act.
Note 3: For'social security pension' see subsection 23(1) of the Social Security Act.
Note 4: For'service pension' see subsection 23(1) of the Social Security Act.
Note 5: For'LEAP program' see subsection 23(1) of the Social Security Act.

Duration of ordinary waiting period
No unused annual leave waiting period
"97.(1) If a person:
(a) is subject to an ordinary waiting period; and
(b) is not subject to an unused annual leave waiting period; and
(c) is not disqualified for youth training allowance under section 72 (liquid assets test);
the ordinary waiting period is the period of 7 days that starts on the person's provisional commencement day.
Note 1: For 'provisional commencement day' see section 91.
Note 2: If the person is subject to an education leavers waiting period, the education leavers waiting period runs concurrently with the ordinary waiting period.
Note 3: If the person is subject to a newly arrived residents waiting period, the newly arrived residents waiting period runs concurrently with the ordinary waiting period.

Unused annual leave waiting period
"(2) If a person:
(a) is subject to an ordinary waiting period; and
(b) is subject to an unused annual leave waiting period; and
(c) is not disqualified for youth training allowance under section 72 (liquid assets test)
the ordinary waiting period is the period of 7 days that starts on the day after the day on which the person's unused annual leave waiting period ends.
Note 1: If the person is subject to an education leavers waiting period, the education leavers waiting period runs concurrently with the unused annual leave waiting period and the ordinary waiting period.
Note 2: If the person is subject to a newly arrived residents waiting period, the newly arrived residents waiting period runs concurrently with the unused annual leave waiting period and the ordinary waiting period.

Day on which liquid assets test waiting period ends
"(3) If a person:

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(a) is subject to an ordinary waiting period; and
(b) is disqualified for youth training allowance under section 72 (liquid assets test);
the ordinary waiting period is the period of 7 days that starts on the day after the end of the liquid assets waiting period.

Education leavers waiting period
People subject to waiting period
"98.(1) Subject to subsections (2), (3), (4) and (5), a person is subject to an education leavers waiting period if the person:
(a) was undertaking a full-time course of education of at least 6 months duration; and
(b) has stopped the course; and
(c) immediately before stopping the course, was not receiving:
(i) a social security pension; or
(ii) a social security benefit; and
(d) has a provisional commencement day within 6 months after stopping the course; and
(e) is not covered by subsection (6); and
(f) is not covered by subsection (7) (people otherwise qualified for special benefit).

People not subject to waiting period
"(2) Subsection (1) does not apply to a person if both of the following conditions apply:
(a) the person is a transferee to youth training allowance;
(b) the person claims the youth training allowance:
(i) within 14 days after the transfer day; or
(ii) if the person becomes registered by the Commonwealth
Employment Service in an allowance category as being unemployed within 14 days after the transfer day-within 14 days after the day on which the person became so registered or any further period that the Secretary considers reasonable.

No application to certain transferees to youth training allowance
"(3) Subsection (1) does not apply to a person who becomes qualified for a youth training allowance at the end of a period for which, under subsection 73(3), the person is taken to have been registered by the Commonwealth Employment Service in an allowance category as being unemployed (non-registration up to 6 weeks).

No application to certain people who become qualified for youth training allowance
"(4) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.
Note: For 'provisional commencement day' see section 91.

People returning to income support
"(5) Subsection (1) does not apply to a person if:
(a) the person is receiving a social security pension or social security benefit; and
(b) the person stops receiving the pension or benefit on a particular day (the'termination day'); and
(c) the person undertakes a full-time course of education of at least 6 months duration; and
(d) the person stops the course; and
(e) the person's provisional commencement day is within 12 months after the termination day.
Note 1: For 'social security benefit' see subsection 23(1) of the Social Security Act.
Note 2: For 'social security pension' see subsection 23(1) of the Social Security Act.
Note 3: For 'provisional commencement day' see section 91.

No education leavers waiting period in some cases if already served
"(6) A person who would otherwise be subject to an education leavers waiting period in relation to youth training allowance is not subject to such a period if:
(a) the person had previously been subject to an education leavers waiting period under this Part or the Social Security Act; and
(b) a youth training allowance had been payable to the person continuously from the end of the education leavers waiting period until immediately before the person started the course; and
(c) the person's provisional commencement day is within 4 weeks after starting the course.
Note 1: For 'provisional commencement day' see section 91.

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Note 2: For 'education leavers waiting period' see subsection 58(1).

People otherwise qualified for special benefit
"(7) A person is not subject to an education leavers waiting period if the Secretary is satisfied that special benefit under Part 2.15 of the Social Security Act would be payable to the person during the waiting period if the person were subject to the waiting period.
Note: For'education leavers waiting period' see subsection 58(1).

Duration of education leavers waiting period-non-secondary school leavers
People covered by this section
"99.(1) This section applies to a person unless section 100 (secondary school leavers) applies to the person.

General rule
"(2) Subject to this section, the education leavers waiting period starts on the person's provisional commencement day and lasts for:
(a) 13 weeks if, on the person's provisional commencement day, the person:
(i) is not a member of a couple; and
(ii) does not have a dependent child; or
(b) 6 weeks if, on the person's provisional commencement day, the person:
(i) is a member of a couple; or
(ii) has a dependent child.
Note 1: The duration of the education leavers waiting period may be modified by:
(a) subsections (3) and (4) (change of status during waiting period);
(b) subsection (6) (periods of employment or periods on special benefit);
(c) subsections (7) and (8) (periods of part-time employment);
(d) subsection (10) (previous periods of non-payment because of education leavers waiting period);
(e) subsection (11) (6 months ceiling).
Note 2: For 'provisional commencement day' see section 91.

Change of status in first 6 weeks
"(3) Subject to subsection (5), if:
(a) a person who is covered by paragraph (2)(a) becomes a member of a couple; or
(b) a person becomes a dependent child of someone who is covered by paragraph (2)(a); within 6 weeks from and including the person's provisional commencement day, the education leavers waiting period starts on the person's provisional commencement day and lasts for 6 weeks.
Note: For 'provisional commencement day' see section 91.

Change of status after 6 weeks
"(4) Subject to subsection (5), if:
(a) a person who is covered by paragraph (2)(a) becomes a member of a couple; or
(b) a person becomes a dependent child of someone who is covered by paragraph (2)(a);
in the period:
(c) starting at the end of 6 weeks from the person's provisional commencement day; and
(d) lasting for 6 weeks;
the education leavers waiting period starts on the person's provisional commencement day and ends on the day before the day on which the person is first covered by paragraph (a) or (b).
Note: For 'provisional commencement day' see section 91.

Notification required
"(5) For the purposes of subsections (3) and (4):
(a) a person is not taken to have become a member of a couple; and
(b) a person is not taken to have become a dependent child of someone;
until the person tells the Department of Social Security that this is the case.

Reduction of waiting period for periods of full-time employment or special benefit
"(6) The waiting period imposed by subsection (2) or (3) is to be reduced by a period equivalent to:
(a) if the person is subject to a 13 week education leavers waiting period-any period during which the person was employed on a full-time basis after stopping the course; and
(b) if the person is subject to a 6 week education leavers waiting period-any period during which the person has been employed, at any time, on a full-time basis; and
(c) any period during which the person was paid special benefit under Part 2.15 of the Social Security Act after stopping the course.

Reduction of waiting period for periods of part-time work
"(7) The waiting period imposed by subsection (2) or (3) is reduced for the
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period worked out under subsection (8) if the person has had at least 35 hours of part-time work.
Note: For 'part-time work' see subsection (12).

Calculation of part-time work reduction
"(8) If subsection (7) applies to the person, the waiting period reduction is:
(a) one week for the first 35 hours of part-time work the person has had; and
(b) one day for each complete additional 7 hours of part-time work the person has had.

Date of part-time work
"(9) If the person is subject to a 13 week education leavers waiting period, only part-time work that the person has had since stopping the course of education is to be taken into account for the purposes of subsections (7) and (8).

Reduction of education leavers waiting period where already partially served
"(10) If:
(a) a person is subject to an education leavers waiting period; and
(b) the person started the course concerned at a time when a job search allowance, a youth training allowance or sickness allowance was not payable to the person because of an education leavers waiting period under this Part or the Social Security Act; and
(c) the person's provisional commencement day is within 4 weeks after the person started the course concerned;
the duration of the first-mentioned education leavers waiting period is reduced by the number of days of the previous education leavers waiting period that the person had served immediately before starting the course.
Note 1: For 'provisional commencement day' see section 91.
Note 2: For 'education leavers waiting period' see section 98.

Period not to extend beyond 6 months after end of course
"(11) An education leavers waiting period that applies in respect of a course of study undertaken by a person is not to extend more than 6 months after the person has stopped the course.

Interpretation
"(12) In this section:
'part-time work' means work engaged in otherwise than on a full-time basis and includes such work engaged in on a casual basis.

Duration of education leavers waiting period-secondary school leavers
People covered by this section
"100.(1) This section applies to a person if the course of education that the person stops is a full-time course of education at a secondary school.
General rule
"(2) Subject to this section, the education leavers waiting period starts on the person's waiting period start day and lasts for:
(a) 13 weeks if, on that day, the person:
(i) is not a member of a couple; and
(ii) does not have a dependent child; or
(b) 6 weeks if, on that day, the person:
(i) is a member of a couple; or
(ii) has a dependent child.
Note 1: The duration of the education leavers waiting period may be modified by:
(a) subsections (3) and (4) (change of status during waiting period);
(b) subsection (6) (15 February cut-off);
(c) subsection (7) (periods of full-time employment or periods on special benefit);
(d) subsections (8) and (9) (periods of part-time employment);
(e) subsection (11) (previous periods of non-payment because of education leavers waiting period).
Note 2: For 'waiting period start day' see subsection (12).

Change of status in first 6 weeks
"(3) Subject to subsection (5), if:
(a) a person who is covered by paragraph (2)(a) becomes a member of a couple; or
(b) a person becomes a dependent child of someone who is covered by paragraph (2)(a); within 6 weeks from and including the person's waiting period start day, the education leavers waiting period starts on the person's waiting period start day and lasts for 6 weeks.
Note: For 'waiting period start day' see subsection (12).

Change of status after 6 weeks
"(4) Subject to subsection (5), if:

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(a) a person who is covered by paragraph (2)(a) becomes a member of a couple; or
(b) a person becomes a dependent child of someone who is covered by paragraph (2)(a);
in the period:
(c) starting at the end of 6 weeks from the person's waiting period start day; and
(d) lasting for 6 weeks;
the education leavers waiting period starts on the person's waiting period start day and ends on the day before the day on which the person is first covered by paragraph (a) or (b).
Note: For 'waiting period start day' see subsection (12).

Notification required
"(5) For the purposes of subsections (3) and (4):
(a) a person is not taken to have become a member of a couple; and
(b) a person is not taken to have become a dependent child of someone;
until the person tells the Department of Social Security that this is the case.

Waiting period to end on 15 February
"(6) If, apart from this subsection, a person's education leavers waiting period would end later than 15 February next after the person's waiting period start day, then the waiting period ends on that 15 February.

Reduction of waiting period for periods of special benefit and full-time employment
"(7) The waiting period imposed by subsection (2) or (3) is reduced by a period equivalent to:
(a) if the person is subject to a 13 week education leavers waiting period -any period during which the person was employed on a full-time basis after stopping the course; and
(b) if the person is subject to a 6 week education leavers waiting period-any period during which the person has been employed, at any time, on a full-time basis; and
(c) any period during which the person was paid special benefit under Part 2.15 of the Social Security Act after stopping the course.

Reduction of waiting period for periods of part-time work
"(8) The waiting period imposed by subsection (2) or (3) is reduced for the period worked out under subsection (9) if the person has had at least 35 hours of part-time work.
Note: For 'part-time work' see subsection (12).

Calculation of part-time work reduction
"(9) If subsection (8) applies to the person, the waiting period reduction is:
(a) one week for the first 35 hours of part-time work the person has had; and
(b) one day for each complete additional 7 hours of part-time work the person has had.

Date of part-time work
"(10) If the person is subject to a 13 week education leavers waiting period, only part-time work that the person has had since stopping the course of education is taken into account for the purposes of subsections (8) and (9).

Reduction of education leavers waiting period if already partially served
"(11) If:
(a) a person is subject to an education leavers waiting period; and
(b) the person started the course concerned at the time when a job search allowance, a youth training allowance or sickness allowance was not payable to the person because of an education leavers waiting period under this Part or the Social Security Act; and
(c) the person's provisional commencement day is within 4 weeks after the person started the course concerned;
the duration of the first-mentioned education leavers waiting period is reduced by the number of days of the previous education leavers waiting period that the person had served immediately before starting the course.
Note 1: For 'provisional commencement day' see section 91.
Note 2: For 'education leavers waiting period' see section 98.

Interpretation
"(12) In this section:
'part-time work' means work engaged in otherwise than on a full-time basis and includes such work engaged in on a casual basis;
'waiting period start day', in relation to a person, means the day after the day on which the person stops a full-time course of education at a secondary school.

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Newly arrived residents waiting period
Application
"101.(1) Subject to this section, a person who:
(a) has entered Australia on or after 1 January 1993; and
(b) holds a permanent visa;
is subject to a newly arrived residents waiting period.
Note: For 'holder' and'permanent visa' see subsection 7(1) of the Social Security Act.

Person holding visa
"(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a youth training allowance.

Person holding entry permit
"(3) Subsection (1) does not apply to a person:
(a) if, immediately before 1 September 1994, the person had held a valid designated temporary entry permit for a continuous period of at least 26 weeks; or
(b) if:
(i) immediately before 1 September 1994, the person had held a
valid designated temporary entry permit for a continuous period ('permit period') of less than 26 weeks; and
(ii) that permit was continued in force as a temporary visa by
regulations made under the Migration Reform Act 1992; and
(iii) the period during which that permit continued to be in force
as a temporary visa together with the permit period is at least 26 weeks.
Note: For 'designated temporary entry permit' see subsection 7(1) of the Social Security Act.

Partner an Australian resident
"(4) Subsection (1) does not apply to a person if:
(a) the person was a member of a couple immediately before entering Australia; and
(b) the person's partner had been an Australian resident for at least 26 weeks when the person entered Australia.
Note: For 'Australian resident' see subsection 7(2) of the Social Security Act.

Person already subject to waiting period
"(5) Subsection (1) does not apply to a person if:
(a) the person has already served a newly arrived residents waiting period under this Part or a newly arrived resident's waiting period under the Social Security Act; or
(b) the person:
(i) has previously entered Australia; and
(ii) held a permanent entry permit granted under the Migration Act
1958 as then in force, or a permanent visa, before the person's last departure from Australia.
Note: For newly arrived resident's waiting period under the Social Security Act see subsection 23(1) of that Act.

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

Duration-temporary entry permit holders
"(2) If:
(a) immediately before 1 September 1994, the person held a valid designated temporary entry permit; and
(b) that permit was continued in force as a temporary visa by regulations made under the Migration Reform Act 1992; and
(c) that temporary visa was in force immediately before the person was granted his or her permanent visa;
the newly arrived residents waiting period ends 26 weeks after the day on which the designated temporary entry permit was granted to the person.
Note: For 'designated temporary entry permit' see subsection 7(1) of the Social Security Act.

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

"Subdivision F-Situations in which allowance not payable (activity
test breaches)
Removal from allowance for failure to satisfy activity test
Failure to satisfy activity test

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"103.(1) Subject to subsection (2), a youth training allowance is not payable to a person for the activity test deferment period if:
(a) the person is required to satisfy the activity test in order to qualify, or to continue to qualify, for a youth training allowance; and
(b) the person fails to satisfy the activity test.

Exemption for person in labour market or rehabilitation program
"(2) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.
Note: See section 109 for the length of activity test deferment periods and section 110 for the start of activity test deferment periods.

Removal from allowance for failure to enter into activity agreement
Failure to enter into activity agreement
"104.(1) Subject to subsections (2) and (3), a youth training allowance is not payable to a person for the activity test deferment period if:
(a) the person is required to enter into a Youth Training Activity Agreement in order to qualify, or to continue to qualify, for the youth training allowance; and
(b) the person fails to enter into a Youth Training Activity Agreement.

Exemption for person in labour market or rehabilitation program
"(2) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.

Exemption for person referred to case manager
"(3) Subsection (1) does not apply to a person who:
(a) has been referred to a case manager under Part 4.3 of the Employment Services Act 1994; and
(b) has been exempted from the application of that subsection by the Secretary.
Note: See section 109 for the length of activity test deferment periods and section 110 for the start of activity test deferment periods.

Removal from allowance for failure to comply with activity agreement
Failure to comply with activity agreement
"105.(1) Subject to subsections (2) and (3), a youth training allowance is not payable to a person for the activity test deferment period if:
(a) the person is required to take reasonable steps to comply with the terms of a Youth Training Activity Agreement in order to qualify, or to continue to qualify, for a youth training allowance; and
(b) the person fails to take reasonable steps to comply with the terms of a Youth Training Activity Agreement.

Exemption for person in labour market or rehabilitation program
"(2) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.

Exemption for person referred to case manager
"(3) Subsection (1) does not apply to a person who:
(a) has been referred to a case manager under Part 4.3 of the Employment Services Act 1994; and
(b) has been exempted from the application of that subsection by the Secretary.
Note: See section 109 for the length of activity test deferment periods and section 110 for the start of activity test deferment periods.

Unemployment due to voluntary act
"106. If:
(a) a person's unemployment is due, either directly or indirectly, to a voluntary act of the person; and
(b) the voluntary act was without sufficient reason;
a youth training allowance is not payable to the person for the activity test deferment period.
Note: See section 109 for the length of activity test deferment periods and
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section 110 for the start of activity test deferment periods.

Unemployment due to misconduct
"107. If a person's unemployment is due to the person's misconduct as a worker, a youth training allowance is not payable to the person for the activity test deferment period.
Note: See section 109 for the length of activity test deferment periods and section 110 for the start of activity test deferment periods.

Refusal of offer of employment
"108. If a person has refused or failed, without sufficient reason, to accept a suitable offer of employment, a youth training allowance is not payable to the person for the activity test deferment period.
Note: See section 109 for the length of activity test deferment periods and section 110 for the start of activity test deferment periods.

Activity test deferment periods
Period in ordinary circumstances
"109.(1) Subject to subsections (2) and (3), if a youth training allowance automatic deferment provision of this Subdivision applies to a person, the deferment period that applies to the person is:
(a) if, at the time the provision begins to apply, the person's unemployment duration is less than 12 months-2 weeks; or
(b) if, at that time, the person's unemployment duration is 12 months or more, but is less than 18 months-4 weeks; or
(c) if, at that time, the person's unemployment duration is 18 months or more-6 weeks.
Note: For 'youth training allowance automatic deferment provision' see section 58.

If more than one previous activity test deferment period
"(2) Subject to subsections (3), (4) and (5), if:
(a) a youth training allowance automatic deferment provision of this Subdivision applies to a person at a particular time; and
(b) one or more activity test deferment periods had applied to the person within the period of 3 years before that time;
the deferment period is 6 weeks plus:
(c) in respect of a period (if any) referred to in paragraph (b) of this subsection that was fixed under subsection (1), the number of weeks fixed under that subsection; and
(d) in respect of each other period (if any) referred to in that paragraph, a further 6 weeks.
Note: For 'activity breach deferment provision' see section 58.

If previous administrative breach deferment period
"(3) If:
(a) a youth training allowance automatic deferment provision of this Subdivision applies to a person at a particular time; and
(b) one or more administrative breach deferment periods had applied to the person within the period of 3 years before that time;
the deferment period worked out under subsection (1) or (2) is increased, in respect of each administrative breach deferment period, by:
(c) if the administrative breach deferment period was worked out under subsection 116(1)-2 weeks; or
(d) if it was worked out under subsection 116(2)-4 weeks; or
(e) if it was worked out under subsection 116(3)-6 weeks.
Note: For 'administrative breach deferment provision' see section 58.

Deferment period before 4 July 1994
"(4) If:
(a) a period referred to in paragraph (2)(d) relates to an application of an automatic deferment provision before 4 July 1994; and
(b) that period had been a period of 2 weeks;
the number of weeks referred to in that paragraph in respect of that period is taken to be 2.
Note: For 'automatic deferment provision' see section 58.

If previous automatic deferment period
"(5) If:
(a) a period referred to in paragraph (2)(d) relates to an application of an automatic deferment provision before 4 July 1994; and
(b) the number of weeks in that period had been worked out under the provision by taking into account one previous application of that or any other automatic deferment provision;
the number of weeks referred to in that paragraph in respect of that period is taken to be 4.
Note: For 'automatic deferment provision' see section 58.

Unemployment duration
"(6) A reference in subsection (1) to a person's unemployment duration is a
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reference to the period during which the person has been continuously receiving a youth training allowance.

Resumption of allowance after less than 6 weeks
"(7) For the purposes of subsection (6), if the person:
(a) is receiving a youth training allowance; and
(b) ceases for a period of not longer than 6 weeks to receive the allowance; and
(c) at the end of that period begins to receive the allowance again;
the person is taken to have been continuously receiving the allowance during that period.

Resumption of allowance after deferment
"(8) For the purposes of subsection (6), if the person:
(a) is receiving a youth training allowance; and
(b) as a result of the application of an automatic deferment provision or a discretionary deferment provision, ceases for a period to receive the allowance; and
(c) at the end of that period begins to receive the allowance again;
the person is taken to have been continuously receiving the allowance during that period.
Note: For 'automatic deferment provision' and'discretionary deferment provision' see section 58.

Start of activity test deferment periods
Notice of start of period
"110.(1) Subject to subsection 111(2), if a youth training allowance automatic deferment provision of this Subdivision applies to a person, the Secretary must give the person a written notice telling the person of the start of the activity test deferment period that applies to the person.

When period starts
"(2) Subject to subsections (3) and (6) and sections 111 and 112, the activity test deferment period starts on the day on which the notice is given to the person.

If pre-existing deferment period
"(3) Subject to sections 111 and 112, if, at the time of the application of the automatic deferment provision, the person is already subject to a deferment period (the'pre-existing deferment period') that has not yet ended, the activity test deferment period referred to in subsection (1) starts on the day after the day on which the pre-existing deferment period ends.

More than one pre-existing deferment period
"(4) If, at the time of the application of the automatic deferment provision, the person is already subject to more than one pre-existing deferment period that has not yet ended, the reference in subsection (3) to the day on which the pre-existing deferment period ends is a reference to the day on which the last occurring of those pre-existing deferment periods ends.

Application of subsections (3) and (4)
"(5) Subsections (3) and (4) apply in respect of a pre-existing deferment period whether or not it has started, and whether or not it is the subject of a notice under this section.

Youth training allowance ceasing to be payable
"(6) Subject to sections 111 and 112, if:
(a) on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have started, youth training allowance ceases to be payable to the person; and
(b) it has not ceased to be payable because of the application of a deferment period;
the activity test deferment period referred to in subsection (1) starts on the day on which the youth training allowance ceases to be payable to the person.
Note: For 'activity test deferment period','youth training allowance automatic deferment provision' and'deferment period' see subsection 58(1).

Application of activity test deferment periods before claims for youth training allowance
If automatic deferment period applies
"111.(1) Subject to subsection (2) and section 112, if:
(a) at a time when a person was not qualified for a youth training allowance, an event occurred that resulted in a youth training allowance automatic deferment provision of this Subdivision applying to the person; and
(b) before the end of the resulting activity test deferment period that would have applied to the person (assuming that the deferment period started on the day on which the event occurred), the person made a claim for a youth training allowance;
the deferment period is taken to have started on the day after the day on which the event occurred.

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Application of subsections 110(3), (4) and (5)
"(2) Subsections 110(3), (4) and (5) apply in relation to an activity test deferment period referred to in subsection (1) of this section in the same way as they apply to an activity test deferment period referred to in subsection (1) of that section.

Notice need not be given in certain cases
"(3) Subject to section 112, if:
(a) at a time when a person was not qualified for a youth training allowance, an event occurred that resulted in a youth training allowance automatic deferment provision of this Subdivision applying to the person; and
(b) the person made a claim for a youth training allowance after the end of the resulting activity test deferment period that would have applied to the person (assuming that the deferment period had started on the day on which the event occurred);
then:
(c) the deferment period is taken to have started and to have ended before the claim was made; and
(d) the Secretary is not obliged to give the person a written notice under subsection 110(1) in respect of the deferment period.
Note: For 'activity test deferment period' and'youth training allowance automatic deferment provision' see subsection 58(1).

Waiting periods
Deferment period starts immediately after waiting period
"112.(1) If, under this Subdivision, an activity test deferment period that applies to a person would (apart from this subsection) start at the same time as, or during, a waiting period that applies to the person, the deferment period is taken to start immediately after the end of the waiting period.

Suspension of deferment period
"(2) If a waiting period that applies to a person starts during an activity test deferment period that applies to the person:
(a) the deferment period is taken to be suspended for the duration of the waiting period; and
(b) the remainder of the deferment period continues immediately after the end of the waiting period.

End of waiting period
"(3) If a waiting period applies to a person and:
(a) another waiting period starts during that waiting period and continues after the end of that waiting period; or
(b) another waiting period starts immediately after the end of that waiting period;
a reference in subsection (1) or (2) to the end of that waiting period is taken to be a reference to the end of the other waiting period.

Liquid assets test waiting period
"(4) A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 72.
Note: For 'activity test deferment period' and'waiting period' see subsection 58(1).

Effect of sections 110, 111 and 112
"113. For the avoidance of doubt:
(a) the application of a youth training allowance automatic deferment provision of this Subdivision cannot cause a youth training allowance to cease being payable unless the activity test deferment period arising from the application of that provision has started under section 110, 111 or 112; and
(b) those sections do not prevent a youth training allowance from ceasing to be payable in circumstances that do not involve the application of a youth training allowance automatic deferment provision of this Subdivision.
Note: For 'activity test deferment period' and'youth training allowance automatic deferment provision' see subsection 58(1).

"Subdivision G-Situations in which allowance not payable
(administrative breaches)
Secretary may require a person to attend the Department of Social Security or the Commonwealth Employment Service etc.
Allowance not payable if requirement not complied with
"114.(1) If:
(a) a person is receiving, or has lodged a claim for, a youth training allowance; and
(b) the Secretary is of the opinion that the person should:
(i) attend an office of the Department of Social Security or of
the Commonwealth Employment Service; or
(ii) contact the Department of Social Security or the Commonwealth
Employment Service; or
(iii) give information to the Secretary; and

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(c) the Secretary tells the person that the person is required to:
(i) attend that office; or
(ii) contact that Department or the Commonwealth Employment
Service; or
(iii) give that information; and
(d) the requirement is reasonable; and
(e) the person does not comply with the requirement;
a youth training allowance is not payable to the person.

Reasonable excuse for not complying
"(2) The Secretary may determine that a youth training allowance is payable to a person for a period for which it was not payable under subsection (1) if the Secretary is satisfied that the person had a reasonable excuse for not complying with the requirement.

Allowance not payable for deferment period
"(3) If:
(a) a youth training allowance is not payable under subsection (1); and
(b) at a later time a youth training allowance would, apart from this subsection, be payable to the person;
a youth training allowance is not payable to the person for the administrative breach deferment period.

Exemption for person in labour market or rehabilitation program
"(4) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.
Note: See section 116 for the length of administrative breach deferment periods and section 117 for the start of administrative breach deferment periods.

Removal from allowance for failure to comply with notification requirements
Youth training allowance not payable
"115.(1) If a person refuses or fails, without sufficient reason, to comply with a requirement made of the person under section 148, 149, 150 or 343, a youth training allowance is not payable to the person for the administrative test deferment period.

Exemption for person in labour market or rehabilitation program
"(2) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.
Note: See section 116 for the length of administrative breach deferment periods and section 117 for the start of administrative breach deferment periods.

Administrative breach deferment periods
Period in ordinary circumstances
"116.(1) Subject to subsections (2), (3) and (4), if a youth training allowance automatic deferment provision of this Subdivision applies to a person, the deferment period that applies to the person is 2 weeks.
Note: For 'youth training allowance automatic deferment provision' see section 58.

If previous administrative breach deferment period
"(2) Subject to subsection (4), if:
(a) subsection (1) applies to a person at a particular time; and
(b) on one occasion only within the period of 3 years before that time, an administrative breach deferment period applied to the person;
the deferment period is 6 weeks.
Note: For 'administrative breach deferment period' see section 58.

If more than one previous administrative breach deferment period
"(3) Subject to subsection (4), if:
(a) a youth training allowance automatic deferment provision of this Subdivision applies to a person at a particular time; and
(b) an administrative breach deferment period applied to the person on 2 or more occasions within the period of 3 years before that time;
the deferment period is 6 weeks plus 6 weeks for each occasion referred to in paragraph (b) after the first.
Note: For 'administrative breach deferment period' see section 58.


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If previous activity test deferment period
"(4) If:
(a) a youth training allowance automatic deferment provision of this Subdivision applies to a person at a particular time; and
(b) one or more activity test deferment periods had applied to the person within the period of 3 years before that time;
the deferment period worked out under subsection (1), (2) or (3) is increased, in respect of each activity test deferment period, by:
(c) if the activity test deferment period was worked out under paragraph 109(1)(a)-2 weeks; or
(d) if it was worked out under paragraph 109(1)(b)-4 weeks; or
(e) if it was worked out under paragraph 109(1)(c) or subsection 109(2)-6 weeks.
Note: For 'activity test deferment period' see section 58.

Start of administrative breach deferment periods
Notice of start of period
"117.(1) If a youth training allowance automatic deferment provision of this Subdivision applies to a person, the Secretary must give the person a written notice telling the person of the start of the administrative breach deferment period that applies to the person.

When period starts
"(2) Subject to subsections (3) and (6) and section 118, the administrative breach deferment period starts on the day on which the notice is given to the person.

If pre-existing deferment period
"(3) Subject to section 118, if, at the time of the application of the automatic deferment provision, the person is already subject to a deferment period (the 'pre-existing deferment period') that has not yet ended, the administrative breach deferment period referred to in subsection (1) starts on the day after the day on which the pre-existing deferment period ends.

More than one pre-existing deferment period
"(4) If, at the time of the application of the automatic deferment provision, the person is already subject to more than one pre-existing deferment period that has not yet ended, the reference in subsection (3) to the day on which the pre-existing deferment period ends is a reference to the day on which the last occurring of those pre-existing deferment periods ends.

Application of subsections (3) and (4)
"(5) Subsections (3) and (4) apply in respect of a pre-existing deferment period whether or not it has started, and whether or not it is the subject of a notice under this section.

Youth training allowance ceasing to be payable
"(6) Subject to section 118, if:
(a) on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have started, youth training allowance ceases to be payable to the person; and
(b) it has not ceased to be payable because of the application of a deferment period;
the administrative breach deferment period referred to in subsection (1) starts on the day on which the youth training allowance ceases to be payable to the person.
Note: For 'administrative breach deferment period','youth training allowance automatic deferment provision' and'deferment period' see subsection 58(1).

Waiting periods
Deferment period starts immediately after waiting period
"118.(1) If, under this Subdivision, an administrative breach deferment period that applies to a person would (apart from this subsection) start at the same time as, or during, a waiting period that applies to the person, the deferment period is taken to start immediately after the end of the waiting period.

Suspension of deferment period
"(2) If a waiting period that applies to a person starts during an administrative breach deferment period that applies to the person:
(a) the deferment period is taken to be suspended for the duration of the waiting period; and
(b) the remainder of the deferment period continues immediately after the end of the waiting period.

End of waiting period
"(3) If a waiting period applies to a person and:
(a) another waiting period starts during that waiting period and continues after the end of that waiting period; or
(b) another waiting period starts immediately after the end of that waiting
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period;
a reference in subsection (1) or (2) to the end of that waiting period is taken to be a reference to the end of the other waiting period.

Liquid assets test waiting period
"(4) A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 72.
Note: For 'administrative breach deferment period' and'waiting period' see subsection 58(1).

Effect of sections 117 and 118
"119. For the avoidance of doubt:
(a) the application of a youth training allowance automatic deferment provision of this Subdivision cannot cause a youth training allowance to cease being payable unless the administrative breach deferment period arising from the application of that provision has started under section 117 or 118; and
(b) those sections do not prevent a youth training allowance from ceasing to be payable in circumstances that do not involve the application of a youth training allowance automatic deferment provision of this Subdivision.
Note: For 'administrative breach deferment period' and 'youth training allowance automatic deferment provision' see subsection 58(1).

"Subdivision H-Other situations in which allowance not payable
Removal from allowance for failure to continue Commonwealth Employment Service registration
Allowance not payable in certain circumstances
"120.(1) If:
(a) a youth training allowance was payable to a person; and
(b) the person ceased to be qualified for youth training allowance because the person:
(i) was not registered by the Commonwealth Employment Service in
an allowance category as being unemployed (see subparagraph 65(1)(g)(iv)); and
(ii) the Secretary has not excused the person from being so
registered by the Commonwealth Employment Service under section 73; and
(c) the person later becomes qualified for youth training allowance again;
a youth training allowance is not payable to the person for a period determined, in writing, by the Secretary.
Note 1: If a person has been paid youth training allowance while the person was not qualified because he or she was not registered at the Commonwealth Employment Service, an overpayment may arise (see Division 15). Subsection (1) does not prevent the Secretary from taking action to recover the overpayment.
Note 2: For 'allowance category' see subsection 58(2).

Exemption for person in labour market or rehabilitation program
"(2) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.

Secretary may determine when period of non-payment begins
"(3) The Secretary may determine in writing the day on which the period of non-payment imposed by subsection (1) begins and that day may be before the day of the determination.
Note: See section 109 for the length of activity test deferment periods and section 110 for the start of activity test deferment periods.

Seasonal workers
Allowance not payable in certain circumstances
"121.(1) If:
(a) a person is a seasonal or intermittent worker; and
(b) the person's income is enough to maintain:
(i) the person; and
(ii) any other people who are ordinarily maintained by the
person;
even though the person is temporarily unemployed;
a youth training allowance is not payable to the person for a period determined, in writing, by the Secretary.

Exemption
"(2) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.


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Secretary may determine when period of non-payment begins
"(3) The Secretary may determine in writing the day on which the period of non-payment imposed by subsection (1) begins and that day may be before the day of the determination.

Move to area of lower employment prospects
Allowance not payable for 12 weeks
"122.(1) If, in the opinion of the Secretary, a person has reduced his or her employment prospects by moving to a new place of residence without sufficient reason, a youth training allowance is not payable to the person for 12 weeks.

Exemption for person in labour market or rehabilitation program
"(2) Subsection (1) does not apply to a person who:
(a) has started:
(i) formal vocational training in a labour market program approved
by the Secretary; or
(ii) a rehabilitation program approved by the Secretary; and
(b) has been exempted from the application of that subsection by the Secretary.
Sufficient reason for moving
"(3) For the purposes of subsection (1), a person has a sufficient reason for moving to a new place of residence if, and only if, the person:
(a) moves to live with a family member who has already established his or her residence in that place of residence; or
(b) moves to live near a family member who has already established residence in the same area; or
(c) is receiving youth training allowance at the rate that applies to a person who is not independent and lives at home, and moves to accompany his or her parents who wish to establish, or have established, a place of residence; or
(d) satisfies the Secretary that the move is necessary for the purposes of treating or alleviating a disease or illness suffered by the person or by a family member.
Secretary may determine when period of non-payment begins
"(4) The Secretary may determine in writing the day on which the period of non-payment imposed by subsection (1) begins and that day may be before the day of the determination.
Youth training allowance not payable while person in gaol or in psychiatric confinement following criminal charge
"123. Youth training allowance is not payable to a person in respect of a period during which the person is:
(a) in gaol; or
(b) undergoing psychiatric confinement because the person has been charged with committing an offence.
Note 1: For 'in gaol', see subsection 23(5) of the Social Security Act.
Note 2: For 'psychiatric confinement' see subsections 23(8) and (9) of the Social Security Act.
Double benefit payment on release from gaol or from psychiatric confinement following criminal charge
"124. If:
(a) a person is released from gaol, or from psychiatric confinement that the person was undergoing because he or she had been charged with committing an offence, after spending at least 7 days in gaol or such confinement; and
(b) the person claims youth training allowance within 7 days after being released; and
(c) the allowance is payable to the person on the day on which the claim is made;
the rate of allowance payable to the person in respect of the period of 7 days starting on the day on which the claim is made is twice the amount that would otherwise be payable to the person in respect of that period.
"Division 3-Claim for youth training allowance
Need for a claim
Proper claim
"125.(1) A person who wants to be granted a youth training allowance must make a proper claim for that allowance.
Note 1: For 'proper claim' see section 126 (form), section 127 (manner of lodgment) and section 128 (residence/presence in Australia).
Note 2: Because the payability of youth training allowance may be affected by, for example, the provisions dealing with the circumstances in which a person's former employment ended (see sections 106 and 107), the person may be asked to support his or her claim for youth training allowance with an end of employment statement by the former employer (see section 349).
Claim taken not to be made

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"(2) For the purposes of subsection (2), if:
(a) a claim for youth training allowance is made by or on behalf of a person; and
(b) at the time the claim is made, the claim cannot be granted because the person is not qualified for youth training allowance;
the claim is to be taken not to have been made.
Person serving liquid assets waiting period
"(3) Subsection (2) does not apply if:
(a) a claim for youth training allowance is made by or on behalf of a person; and
(b) at the time the claim is made, the claim cannot be granted because the person is serving a liquid assets test waiting period.
Note: For 'liquid assets test waiting period' see section 72.
Form of claim
"126. To be a proper claim, a claim must be made in writing and must be in accordance with a form approved by the Secretary.
Lodgment of claim
"127. To be a proper claim, a claim must be lodged:
(a) at an office of the Department of Social Security; or
(b) at a place in Australia approved for the purpose by the Secretary; or
(c) with a person in Australia approved for the purpose by the Secretary.
Claimant must be Australian resident and in Australia
"128. A claim by a person is not a proper claim unless the person is:
(a) an Australian resident; and
(b) in Australia;
on the day on which the claim is lodged.
Claim may be withdrawn
Withdrawal of claim
"129.(1) A claimant for a youth training allowance or a person on behalf of a claimant may withdraw a claim that has not been determined.
Effect of withdrawal
"(2) A claim that is withdrawn is taken not to have been made.
Manner of withdrawal
"(3) A withdrawal may be made orally or in writing.
Secretary may request claimant to give statement of claimant's tax file number
Request for tax file number
"130.(1) The Secretary may request but not compel a claimant for youth training allowance:
(a) if the claimant has a tax file number-to give the Secretary a written statement of the claimant's tax file number; or
(b) if the claimant does not have a tax file number:
(i) to apply to the Commissioner of Taxation for a tax file
number; and
(ii) to give the Secretary a written statement of the claimant's
tax file number after the Commissioner of Taxation has issued it.
Failure to satisfy request
"(2) A youth training allowance is not payable to a claimant if, at the end of 28 days after a request is made:
(a) the claimant has failed to satisfy the request; and
(b) the Secretary has not exempted the claimant from having to satisfy the request.
Secretary may request claimant to give statement of partner's tax file number
Request for tax file number
"131.(1) If:
(a) a claimant for youth training allowance is a member of a couple; and
(b) the claimant's partner is in Australia;
the Secretary may request but not compel the claimant to give the Secretary a written statement of the tax file number of the claimant's partner.
Failure to satisfy request
"(2) A youth training allowance is not payable to a claimant if, at the end of 28 days after a request is made:
(a) the claimant has failed to satisfy the request; and
(b) the Secretary has not exempted the claimant from having to satisfy the request.
Note 1: In some cases the request can be satisfied by giving the Secretary a declaration by the partner about the partner's tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information relevant to the partner's tax file number (see subsections
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87(2) and (3)).
Note 2: The Secretary may waive the requirement in some cases (see subsection 87(4)).
"Division 4-Determination of claim
Secretary to determine claim
"132. The Secretary must, in accordance with this Part, determine a claim for youth training allowance.
Grant of claim
"133. The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:
(a) the person is qualified for a youth training allowance; and
(b) the allowance is payable.
Date of effect of determination
Date of effect
"134.(1) Subject to this section, a determination under section 133 takes effect on the day on which the determination is made or on any later day or earlier day that is stated in the determination.
Notified decision-review sought within 3 months
"(2) If:
(a) a decision (the'previous decision') is made rejecting a person's claim for youth training allowance; and
(b) a notice is given to the person telling the person of the making of the previous decision; and
(c) the person applies to the Secretary under section 304, within 3 months after the notice is given, for review of the previous decision; and
(d) a determination granting the claim is made as a result of the application for review;
the determination takes effect on the day on which the previous decision took effect.
Notified decision-review sought after 3 months
"(3) If:
(a) a decision (the'previous decision') is made rejecting a person's claim for youth training allowance; and
(b) a notice is given to the person telling the person of the making of the previous decision; and
(c) the person applies to the Secretary under section 304, more than 3 months after the notice is given, for review of the previous decision; and
(d) a determination granting the claim is made as a result of the application for review;
the determination takes effect on the day on which the person sought the review.
Decision not notified
"(4) If:
(a) a decision (the'previous decision') is made rejecting a person's claim for youth training allowance; and
(b) no notice is given to the person telling the person of the making of the previous decision; and
(c) the person applies to the Secretary under section 304 for review of the previous decision; and
(d) a determination granting the claim is made as a result of the application for review;
the determination takes effect on the day on which the previous decision took effect.
"Division 5-Rate of youth training allowance
How to work out a person's youth training allowance rate
Rate to be worked out using Schedule 1
"135.(1) The rate of a person's youth training allowance is to be worked out in accordance with Schedule 1.
Limit on benefit rate
"(2) If:
(a) a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person; and
(b) the other person is of the opposite sex; and
(c) either or both of them are under the age of consent that applies in the State or Territory in which they are living;
the rate of the person's youth training allowance is not to be more than the rate at which the allowance would be payable to the person if the other person were the person's partner.
Note: This provision has the effect of taking into account the ordinary income and assets of the partner in applying the ordinary income test and assets test respectively.
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Youth training supplement
Supplement for course of vocational training
"136.(1) If a person who is receiving a youth training allowance is undertaking a course of vocational training approved by the Secretary for the purposes of this section, the rate of the person's youth training allowance may be increased by an amount, to be known as a youth training supplement, that the Secretary considers appropriate.
Components of supplement
"(2) The youth training supplement is made up of either or both of the following:
(a) an amount to help with the person's expenses in living away from the person's usual residence while undertaking the training (the'living away from home component');
(b) 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 (the 'home base maintenance component').
Maximum living away from home component
"(3) The maximum amount of the living away from home component is $30.00 a fortnight.
Maximum maintenance component
"(4) The maximum amount of the home base maintenance component is $75.80 a fortnight.
How to calculate amount of supplement
"(5) The Secretary is to calculate the amount (if any) of the youth training supplement by determining:
(a) which of the 2 components the person is to receive; and
(b) the appropriate amount for each component that the person is to receive.
"Division 6-Payment of youth training allowance
Start of youth training allowance
"137. Youth training 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 Part makes the allowance not payable to the person.
Note 1: For qualification see section 65.
Note 2: For circumstances in which a youth training allowance is not payable see section 85.
Instalments
Allowance paid by instalments
"138.(1) Youth training allowance is to be paid by instalments for periods determined by the Secretary.
Time of payment
"(2) Instalments of youth training allowance are to be paid at the times determined by the Secretary.
Instalments for period less than a fortnight
Period less than a fortnight
"139.(1) If:
(a) an instalment of youth training allowance is for a period; and
(b) the period is less than a fortnight;
the instalment for the period is the amount worked out using the formula:
youth training allowance rate - week days in period
10 .

Period consisting of number of whole fortnights and period less than fortnight
"(2) If:
(a) an instalment of youth training allowance is for a period; and
(b) the period consists of:
(i) a number of whole fortnights; and
(ii) a period that is less than a fortnight;
the instalment, in so far as it relates to the period that is less than a fortnight, is the amount worked out using the formula:
youth training allowance rate - week days in period
10 .

Rounding off instalment
Fraction of a cent
"140.(1) If the amount of an instalment includes a fraction of a cent, the amount is to be rounded to the nearest whole cent (0.5 cent being rounded upwards).

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Amount increased to fortnightly PA rate
"(2) If:
(a) an amount of pharmaceutical allowance is added to a person's maximum basic rate in working out the amount of an instalment of youth training allowance; and
(b) apart from this subsection, the amount of the instalment would be less than the person's fortnightly PA rate;
the amount of the instalment is to be increased to the person's fortnightly PA rate.
Fortnightly PA rate
"(3) For the purposes of subsection (2), the person's fortnightly PA rate is the rate worked out using the formula:
pharmaceutical allowance rate x N
where:
'pharmaceutical allowance rate' means the fortnightly amount of pharmaceutical allowance added to the person's maximum basic rate in working out the amount of the instalment;
'N' means:
(a) if the instalment is for a number of whole fortnights-the number of fortnights; or
(b) if the instalment is for a period of less than a fortnight-the number worked out using the formula:
week days in period
10 ; or
(c) if the instalment is for a period that consists of a number of whole fortnights and a period of less than a fortnight-the number worked out using the formula:
week days in short period
number of whole fortnights + 10 .
Amount increased to $1.00
"(4) If, apart from this section, the amount of an instalment would be less than $1.00, the amount is to be increased to $1.00.
Instalments to be paid to person or nominee
Payment to person
"141.(1) Subject to subsection (3), instalments of a person's youth training allowance are to be paid to the person.
Payment on behalf of person
"(2) The Secretary may direct that the whole or a part of the instalments of a person's youth training allowance is to be paid to someone else on behalf of the person.
Payment in accordance with Secretary's direction
"(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.
Manner of payment
"142.(1) An amount that is to be paid to a person under section 141 is to be paid in the manner set out in this section.
Payment into account
"(2) Subject to this section, the amount is to be paid, at the intervals that the Secretary directs, to the credit of a bank account, credit union account or building society account nominated and maintained by the person.
Joint or common account
"(3) The account may be an account that is maintained by the person either alone or jointly or in common with another person.
Account not nominated
"(4) If the person has not nominated an account for the purposes of subsection (2), then, subject to subsections (5) and (7), the amount is not to be paid.
Account nominated afterwards
"(5) If:
(a) an amount has not been paid because of subsection (4); and
(b) the person nominates an account for the purposes of subsection (2);
the amount is to be paid under subsection (2).
Secretary may direct payment in different way
"(6) The Secretary may direct that the whole or a part of the amount be paid to the person in a different way from that provided for by subsection (2).
Payment in accordance with direction
"(7) If the Secretary gives a direction under subsection (6), the amount is
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to be paid in accordance with the direction.
If allowance payday would fall on public holiday etc.
"143. If the Secretary is satisfied that an amount of youth training 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
Payment to person determined by Secretary
"144.(1) If:
(a) a youth training 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 youth training allowance payable to him or her; and
(d) another person applies to receive the 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.
No further liability for Commonwealth
"(2) If the Secretary pays an amount of youth training allowance under subsection (1), the Commonwealth has no further liability to any person in respect of that amount of youth training allowance.
"Division 7-Protection of youth training allowance
Youth training allowance to be absolutely inalienable
Allowance absolutely inalienable
"145.(1) Subject to subsections (2) and (3) and section 299, youth training 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 youth training allowance payable to a person if the person asks the Secretary:
(a) to make the deductions; and
(b) to pay the amount to be deducted to the Commissioner of Taxation.
Note: The Secretary must make deductions from a person's youth training allowance if requested by the Commissioner of Taxation-see section 299.
Deductions from instalments with recipient's consent
"(3) The Secretary may make deductions from the instalments of youth training allowance payable to a person if the person consents under section 283 to the Secretary making the deduction.
Note: Section 283 enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a youth training allowance.
Effect of garnishee or attachment order
Court order not to apply to saved amount
"146.(1) If:
(a) a person has an account with a financial institution; and
(b) instalments of youth training 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.
Method of working out saved amount
"(2) The saved amount is worked out as follows:
Method statement
Step 1. Work out the total amount of youth training allowance payable
to the person that has been paid to the credit of the account
during the 4 week period immediately before the court order
came into force.
Step 2. Subtract from that amount the total amount withdrawn from the
account during the same 4 week period: the result is the saved
amount.

Single, joint or common account
"(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 8-Recipient obligations

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Secretary may request recipient to give statement of recipient's tax file number
Request for tax file number
"147.(1) The Secretary may request but not compel a person to whom youth training allowance is being paid:
(a) if the person has a tax file number-to give the Secretary a written statement of the person's tax file number; or
(b) if the person does not have a tax file number:
(i) to apply to the Commissioner of Taxation for a tax file
number; and
(ii) to give the Secretary a written statement of the person's tax
file number after the Commissioner of Taxation has issued it.
Failure to satisfy request
"(2) A youth training allowance is not payable to a person if, at the end of 28 days after a request is made:
(a) the person has failed to satisfy the request; and
(b) the Secretary has not exempted the person from having to satisfy the request.
Secretary may request recipient to give statement of partner's tax file number
Request for tax file number
"148.(1) If:
(a) a person to whom youth training allowance is being paid is a member of a couple; and
(b) the person's partner is in Australia;
the Secretary may request but not compel the person to give the Secretary a written statement of the tax file number of the person's partner.
Failure to satisfy request
"(2) A youth training allowance is not payable to a person if, at the end of 28 days after a request is made:
(a) the person has failed to satisfy the request; and
(b) the Secretary has not exempted the person from having to satisfy the request.
Note 1: In some cases the request can be satisfied by giving the Secretary a declaration by the partner about the partner's tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information relevant to the partner's tax file number (see subsections 87(2) and (3)).
Note 2: The Secretary may waive the requirement in some cases (see subsection 87(4)).
Secretary may require notice of the happening of an event or a change in circumstances
Secretary may give notice requiring information
"149.(1) The Secretary may give a person to whom a youth training allowance is being paid a notice that requires the person to tell the Department of Social Security if:
(a) a stated event or change of circumstances occurs; or
(b) the person becomes aware that a stated event or change of circumstances is likely to occur.
Event or change relevant to payment
"(2) An event or change of circumstances is not to be stated in a notice under subsection (1) unless the occurrence of the event or change of circumstances might affect the payment of the allowance.
Formalities related to notice
"(3) Subject to subsection (4), a notice under subsection (1):
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must state how the person is to give the information to the Department of Social Security; and
(d) must state the period within which the person is to give the information to that Department; and
(e) must state that the notice is a recipient notification notice given under this Part.
Validity of notice
"(4) A notice under subsection (1) is not invalid merely because it fails to comply with paragraph (3)(c) or (e).
Period within which information to be given
"(5) Subject to subsections (6) and (7), the period stated under paragraph (3)(d) must end at least 7 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.
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Person leaving Australia
"(6) If a notice requires the person to tell the Department of any proposal by the person to leave Australia, subsection (5) does not apply to that requirement.
Information as to compensation payment
"(7) If the notice requires information about receipt of a compensation payment, the period stated under paragraph (3)(d) in relation to the 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.
Refusal or failure to comply with notice
"(8) A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsections 4B(2) and (3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.
Application overseas
"(9) This section extends to:
(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
Secretary may require recipient to give particular information relevant to payment of youth training allowance
Secretary may give notice requiring statement on matter
"150.(1) The Secretary may give a person to whom a youth training allowance is being paid a notice that requires the person to give the Department of Social Security a statement about a matter that might affect the payment of the allowance to the person.
Formalities related to notice
"(2) Subject to subsection (3), a notice under subsection (1):
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must state how the statement is to be given to the Department; and
(d) must state the period within which the person is to give the statement to the Department; and
(e) must state that the notice is a recipient statement notice given under this Part.
Validity of notice
"(3) A notice under subsection (1) is not invalid merely because it fails to comply with paragraph (2)(c) or (e).
Period within which statement to be provided
"(4) The period stated under paragraph (2)(d) must end at least 7 days after the day on which the notice is given.
Statement must be in approved form
"(5) A statement given in response to a notice under subsection (1) must be in writing and in accordance with a form approved by the Secretary.
Refusal or failure to comply with notice
"(6) A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsections 4B(2) and (3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.
Application overseas
"(7) This section extends to:
(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
"Division 9-Continuation, variation and termination
"Subdivision A-General
Continuing effect of determination
Entitlement determination
"151.(1) A determination that:
(a) a person's claim for a youth training allowance is to be granted; or
(b) a youth training allowance is payable to a person;
continues in effect until:
(c) the allowance ceases to be payable under section 152, 153, 154 or 155; or

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(d) a further determination in relation to the allowance under section 162 or 163 has taken effect.
Note 1: For paragraph (a) see section 133.
Note 2: For paragraph (b) see section 165-this paragraph is relevant if the determination in question reverses an earlier cancellation or suspension.
Note 3: For paragraph (d) see also section 164.
Rate determination
"(2) A determination of the rate of a youth training allowance continues in effect until:
(a) the allowance becomes payable at a lower rate under section 156, 157 or 158; or
(b) a further determination in relation to the allowance under section 160 or 161 has taken effect.
"Subdivision B-Automatic termination
Automatic termination-transfer to social security pension or benefit
"152. If:
(a) a person is receiving youth training allowance; and
(b) a social security pension or a social security benefit becomes payable to the person;
the youth training allowance ceases to be payable to the person immediately before the day on which the pension or benefit becomes payable to the person.
Automatic termination-recipient complying with section 149 notification obligations
"153. If:
(a) a person who is receiving a youth training allowance is given a notice under section 149; and
(b) the notice requires the person to tell the Department of the occurrence of an event or change in circumstances within a stated period (the 'notification period'); and
(c) the event or change in circumstances occurs; and
(d) the person tells the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and
(e) because of the occurrence of the event or change in circumstances;
(i) the person ceases to be qualified for the allowance; or
(ii) the allowance would, apart from this section, cease to be
payable to the person; and
(f) the allowance is not cancelled before the end of the notification period;
the allowance continues to be payable to the person until the end of the notification period and then ceases to be payable to the person.
Note: If the person tells the Department, within the notification period, of an event or change in circumstances that reduces the rate of the person's allowance, there is no automatic rate reduction and a determination under section 161 must be made in order to bring the rate reduction into effect.
Automatic termination-recipient not complying with section 149 notification obligations
"154. If:
(a) a person who is receiving a youth training allowance is given a notice under section 149; and
(b) the notice requires the person to tell the Department of the occurrence of an event or change in circumstances within a stated period (the 'notification period'); and
(c) the event or change in circumstances occurs; and
(d) the person does not tell the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and
(e) because of the occurrence of the event or the change in circumstances:
(i) the person ceases to be qualified for the allowance; or
(ii) the allowance ceases to be payable to the person;
the allowance ceases to be payable to the person immediately before the day on which the event or change in circumstances occurs.
Automatic termination-failure to provide section 150 statement
Allowance ceases to be payable
"155.(1) If:
(a) a person who is receiving a youth training allowance is given a notice under section 150 requiring the person to give the Department a statement; and
(b) the notice relates to the payment of the allowance in respect of a period stated in the notice; and
(c) the person does not comply with the notice;
the allowance, subject to subsection (2), ceases to be payable to the person as from the first day in that period.
Secretary may determine that allowance continues

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"(2) If the Secretary is satisfied that, in the special circumstances of the case, it is appropriate to do so, the Secretary may determine in writing that subsection (1) does not apply to the person from a day stated in the determination.
Stated day
"(3) The day stated under subsection (2) may be before or after the making of the determination.
"Subdivision C-Automatic rate reduction
Automatic rate reduction-partner starting to receive allowance, pension or benefit
"156. If:
(a) a person is receiving youth training allowance; and
(b) the person's partner starts to receive:
(i) a youth training allowance; or
(ii) a social security pension or social security benefit; or
(iii) a service pension; and
(c) the person's youth training allowance rate is reduced because of the partner's receipt of that pension, benefit or allowance;
the youth training allowance becomes payable to the person at the reduced rate on the day on which the partner starts to receive that pension, benefit or allowance.
Automatic rate reduction-recipient not complying with section 149 notification obligations
"157. If:
(a) a person who is receiving a youth training allowance is given a notice under section 149; and
(b) the notice requires the person to tell the Department of the occurrence of an event or change in circumstances within a stated period (the 'notification period'); and
(c) the event or change in circumstances occurs; and
(d) the person does not tell the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and
(e) because of the occurrence of the event or change in circumstances, the person's rate of allowance is to be reduced;
the allowance becomes payable to the person at the reduced rate immediately before the day on which the event or change in circumstances occurs.
Automatic rate reduction-failure to tell Department of payment for remunerative work if earnings credit account balance available
"158. If:
(a) a person who is receiving youth training allowance is given a notice under section 149; and
(b) the notice requires the person to tell the Department of income for remunerative work undertaken by the person or the person's partner; and
(c) the person fails to tell the Department of income of that kind in accordance with the notice; and
(d) the person has an earnings credit account balance for the purposes of Subdivision K of Division 11;
the allowance becomes payable to the person at the reduced rate from the first payday after the day on which the person's earnings credit account balance is reduced to nil.
Changes to payments by computer following automatic termination or reduction
"159. If:
(a) a person is receiving a youth training allowance on the basis of data in a computer; and
(b) the allowance is automatically terminated or the allowance rate is automatically reduced by the operation of a provision of this Part; and
(c) the automatic termination or reduction is given effect to by the operation of a computer program approved by the Secretary stopping payment or reducing the rate of payment of the allowance;
there is taken to be a decision by the Secretary that the automatic termination or rate reduction provision applies to the person's allowance.
Note: The decision that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 303 and 304) and the Social Security Appeals Tribunal (see section 311).
"Subdivision D-Determinations
Rate increase determination
"160. If the Secretary is satisfied that the rate at which a youth training allowance is being, or has been, paid is less than the rate provided for by this Part, the Secretary is to determine that the rate is to be increased to the rate stated in the determination.
Note: For the date of effect of a determination under this section see section 166.

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Rate reduction determination
"161. If the Secretary is satisfied that the rate at which a youth training allowance is being, or has been, paid is more than the rate provided for by this Part, the Secretary is to determine that the rate is to be reduced to the rate stated in the determination.
Note 1: A determination under this section is not necessary if an automatic rate reduction is produced by section 157 (see subsection 151(2)).
Note 2: For the date of effect of a determination under this section see section 167.
Cancellation or suspension determination
"162. If the Secretary is satisfied that a youth training allowance is being, or has been, paid to a person to whom it is not, or was not, payable under this Part, the Secretary is to determine that the allowance is to be cancelled or suspended.
Note 1: A determination under this section is not necessary if an automatic termination is produced by section 152, 153, 154 or 155 (see subsection 151(1)).
Note 2: For the date of effect of a determination under this section see section 167.
Cancellation or suspension for failure to comply with section 150, 343 or 344 notice
"163. If:
(a) a person who is receiving a youth training allowance is given a notice under section 150, 343 or 344; and
(b) the person does not comply with the requirements set out in the notice;
the Secretary may determine that the allowance is to be cancelled or suspended.
Note 1: This section will not apply if section 153 or 162 applies.
Note 2: For the date of effect of a determination under this section see section 167.
Changes to payments by computer
"164. If:
(a) payment of a youth training allowance to a person is based upon data in a computer; and
(b) the allowance rate is increased or reduced, or the allowance is cancelled or suspended, because of the operation of a computer program approved by the Secretary; and
(c) the program causes the change for a reason for which the Secretary could determine the change;
the change is taken to have been made because of a determination by the Secretary for that reason.
Note: The determination that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 303 and 304) and the Social Security Appeals Tribunal (see section 311).
Resumption of payment after cancellation or suspension
Secretary to determine allowance payable
"165.(1) If the Secretary:
(a) cancels or suspends a person's youth training allowance under section 162 or 163; and
(b) reconsiders the decision to cancel or suspend; and
(c) becomes satisfied that because of the decision to cancel or suspend:
(i) the person did not receive a youth training allowance that was
payable to the person; or
(ii) the person is not receiving a youth training allowance that
is payable to the person;
the Secretary is to determine that a youth training allowance was or is payable to the person.
Reconsideration on application or Secretary's initiative
"(2) The reconsideration referred to in paragraph (1)(b) may be a reconsideration on an application under section 304 for review or a reconsideration on the Secretary's own initiative.
Note: For the date of effect of a determination under this section see section 166.
"Subdivision E-Date of effect of determination
Date of effect of favourable determination
Method of working out date
"166.(1) The day on which a determination under section 160 or 165 (the 'favourable determination') takes effect is worked out in accordance with this section.
Notified decision-review sought within 3 months
"(2) If:
(a) a decision (the 'previous decision') is made in relation to a youth training allowance; and

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(b) a notice is given to the person to whom the allowance is payable telling the person of the making of the previous decision; and
(c) the person applies to the Secretary under section 304, within 3 months after the notice is given, for review of the previous decision; and
(d) a favourable determination is made as a result of the application for review;
the determination takes effect on the day on which the previous decision took effect.
Notified decision-review sought after 3 months
"(3) If:
(a) a decision (the'previous decision') is made in relation to a youth training allowance; and
(b) a notice is given to the person to whom the allowance is payable telling the person of the making of the previous decision; and
(c) the person applies to the Secretary under section 304, more than 3 months after the notice is given, for review of the previous decision; and
(d) a favourable determination is made as a result of the application for review;
the determination takes effect on the day on which the person sought the review.
Decision not notified
"(4) If:
(a) a decision (the'previous decision') is made in relation to a youth training allowance; and
(b) no notice is given to the person to whom the allowance is payable telling the person of the making of the previous decision; and
(c) the person applies to the Secretary under section 304, for review of the previous decision; and
(d) a favourable determination is made as a result of the application for review;
the determination takes effect on the day on which the previous decision took effect.
Notified change of circumstances
"(5) If the favourable determination is made following a person having told the Department of a change in circumstances, the determination takes effect on the day on which the Department was told or the day on which the change occurred, whichever is the later.
Other determinations
"(6) In any other case, the favourable determination takes effect on the day on which the determination was made or on any later day or earlier day (other than a day more than 3 months before the determination was made) that is stated in the determination.
Date of effect of adverse determination
General
"167.(1) The day on which a determination under section 161, 162 or 163 (the 'adverse determination') takes effect is worked out in accordance with this section.
Note: If the adverse determination depends on a discretion or opinion and a person affected by the determination applies for review, the Secretary may continue payment pending the outcome of the review (see section 305 (internal review) and section 314 (review by Social Security Appeals Tribunal)).
Date determination takes effect
"(2) The adverse determination takes effect on:
(a) the day on which the determination is made; or
(b) if another day is stated in the determination-that day.
Later date than determination
"(3) Subject to subsections (4), (5), (6), (7) and (8), the day stated under paragraph (2)(b) must be later than the day on which the determination is made.
Contravention of Part
"(4) If:
(a) the person whose allowance is affected by the adverse determination has contravened a provision of this Part (other than section 150, 343, 344, 345 or 346); and
(b) the contravention causes a delay in making the determination;
the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.
False statement or misrepresentation-suspension or cancellation
"(5) If:
(a) a person has made a false statement or a misrepresentation; and
(b) because of the false statement or misrepresentation, the allowance has
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been paid to a person when it should have been cancelled or suspended;
the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.
False statement or misrepresentation-rate reduction
"(6) If:
(a) a person has made a false statement or a misrepresentation; and
(b) because of the false statement or misrepresentation, the rate at which the allowance was paid to a person was more than it should have been;
the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.
Payment of arrears of periodic compensation payments-suspension or cancellation
"(7) If:
(a) an adverse determination is made in relation to a person because of point G11 in MODULE G in Schedule 1 (payment of arrears of periodic compensation payments); and
(b) the allowance has been paid to the person or the person's partner when, because of the payment of arrears of periodic compensation, the allowance should have been cancelled or suspended;
the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.
Payment of arrears of periodic compensation payments-rate reduction
"(8) If:
(a) an adverse determination is made in relation to a person because of point G11 in MODULE G in Schedule 1 (payment of arrears of periodic compensation payments); and
(b) the rate at which the allowance was paid to the person or the person's partner was, because of the payment of arrears of periodic compensation, more than the rate at which the allowance should have been paid;
the day stated under paragraph (2)(b) may be earlier than the day on which the determination is made.
"Division 10-Bereavement payments on death of partner
Qualification for payments under this Division
Qualification for payment
"168.(1) If:
(a) a person is receiving youth training allowance; and
(b) the person is a long-term social security recipient; and
(c) the person is a member of a couple; and
(d) the person's partner dies; and
(e) immediately before the partner died, the partner:
(i) was receiving a social security pension; or
(ii) was receiving a service pension; or
(iii) was a long-term social security recipient; and
(f) on the person's payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not qualified for payments under this Division is less than the sum of:
(i) the amount that would otherwise be payable to the person under
section 171 (person's continued rate) on that payday; and
(ii) the amount (if any) that would otherwise be payable to the
person under section 169 (continued payment of partner's pension or benefit) on the partner's payday immediately before the first available bereavement adjustment payday;
the person is qualified for payments under this Division to cover the bereavement period.
Note 1: Section 169 provides for the payment to the person, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the person's partner during that period if the partner had not died.
Note 2: Section 170 provides for a lump sum that represents the instalments that would have been paid to the person's partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the partner had not died.
Choice not to receive payments
"(2) A person who is qualified for payments under this Division may choose not to receive payments under this Division.
Form of choice
"(3) A choice under subsection (2):
(a) must be made by written notice to the Secretary; and
(b) may be made after the person has been paid an amount or amounts under this Division; and
(c) cannot be withdrawn after the Department has taken all the action required to give effect to that choice.

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Rate during bereavement period
"(4) If a person is qualified for payments under this Division in relation to the partner's death, the rate at which youth training allowance is payable to the person during the bereavement period is, unless the person has made a choice under subsection (2), governed by section 171.
Continued payment of partner's pension or benefit
"169. If a person is qualified for payments under this Division in relation to the death of the person's partner, there is payable to the person, on each of the partner's paydays in the bereavement rate continuation period, an amount equal to the amount that would have been payable to the partner on that payday if the partner had not died.
Lump sum payable in some circumstances
"170. If:
(a) a person is qualified for payments under this Division in relation to the death of the person's partner; and
(b) the first available bereavement adjustment payday occurs before the end of the bereavement period;
there is payable to the person as a lump sum an amount worked out using the lump sum calculator at the end of this section.
LUMP SUM CALCULATOR
This is how to work out the amount of the lump sum:
Method statement
Step 1. Add up:
(a) the amount that, if the person's partner had not died, would have been payable to the person on the person's payday immediately before the first available bereavement adjustment payday; and
(b) the amount (if any) that, if the partner had not died, would have been payable to the partner on the partner's payday immediately before the first available bereavement adjustment payday;
the result is called the combined rate.
Step 2. Work out the amount that, apart from section 171, would have been payable to the person on the person's payday immediately before the first available bereavement adjustment payday: the result is called the person's individual rate.
Step 3. Take the person's individual rate away from the combined rate: the result is called the partner's instalment component.
Step 4. Work out the number of the partner's paydays in the bereavement lump sum period.
Step 5. Multiply the partner's instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable to the person under this section.
Adjustment of person's youth training allowance rate
"171. If:
(a) a person is qualified for payments under this Division; and
(b) the person does not elect under subsection 168(2) not to receive payments under this Division;
the rate of the person's youth training allowance during the bereavement period is worked out as follows:
(c) during the bereavement rate continuation period, the rate of youth training allowance payable to the person is the rate at which the allowance would have been payable to the person if the person's partner had not died;
(d) during the bereavement lump sum period (if any), the rate at which youth training allowance is payable to the person is the rate at which the allowance would be payable to the person apart from this Division.
Effect of death of person entitled to payments under this Division
"172. If:
(a) a person is qualified for payments under this Division in relation to the death of the person's partner; and
(b) the person dies within the bereavement period; and
(c) the Secretary does not become aware of the death of the person's partner before the person dies;
there is payable, to any person that the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.
LUMP SUM CALCULATOR
This is how to work out the amount of the lump sum:
Method statement
Step 1. Add up:
(a) the amount that, if neither the person nor the person's partner had died, would have been payable to the person on the person's payday immediately after the day on which the person dies; and
(b) the amount (if any) that, if neither the person nor the person's partner had died, would have been payable to the person's partner on the partner's payday immediately after the day on which the person died;

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the result is called the combined rate. Step 2. Work out the amount that, apart from section 171, would have been payable to the person on the person's payday immediately after the day on which the person died if the person had not died: the result is called the person's individual rate.
Step 3. Take the person's individual rate away from the combined rate: the result is called the partner's instalment component.
Step 4. Work out the number of paydays of the partner in the period that begins on the day after the person dies and ends on the day on which the bereavement period ends.
Step 5. Multiply the partner's instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable under this section.
Matters affecting payments under this Division
Recovery/reduction of amount payable
"173.(1) If:
(a) a person is qualified for payments under this Division in relation to the death of the person's partner; and
(b) after the person's partner died, an amount to which the partner would have been entitled if the partner had not died has been paid under this Part, the Social Security Act or Part III of the Veterans' Entitlements Act; and
(c) the Secretary is not satisfied that the person 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 person or from the personal representative of the person's partner, except to the extent (if any) that the amount is more than the amount payable to the person under this Division;
(e) the amount payable to the person under this Division is to be reduced by the amount referred to in paragraph (b).
Financial institution not liable
"(2) If:
(a) a person is qualified for payments under this Division in relation to the death of the person's partner; and
(b) the amount to which the person's partner would have been entitled if the person's partner had not died has been paid under this Part, the Social Security Act or Part III of the Veterans' Entitlements Act, within the bereavement period, into an account with a bank, credit union or building society (the 'financial institution'); and
(c) the financial institution pays to the person, out of the account, an amount not more than 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 personal representative of the person's partner or anyone else in respect of the payment of that money to the person.
"Division 11-General provisions relating to the ordinary income test
"Subdivision A-Ordinary income concept
Ordinary income is generally total gross income (not net income after deductions) from all sources
Working out ordinary income
"174.(1) A person's ordinary income is to be worked out by adding together the person's ordinary income from all sources.
Note: For 'ordinary income' see subsection 8(1) of the Social Security Act.
What ordinary income consists of
"(2) A person's ordinary income consists of:
(a) the person's ordinary income as defined in subsection 8(1) of the Social Security Act; and
(b) amounts that are taken to be ordinary income of the person under section 175 (trading stock) or under Subdivisions B, C, D, E and F (investment income), Subdivision G (moneys held), Subdivision H (loans) or Subdivision I (assets disposal).
Ordinary income is gross ordinary income
"(3) Subject to sections 175 and 176, a person's ordinary income is the person's gross ordinary income without any reduction.
Ordinary income from a business-treatment of trading stock
Inclusion of increase in value of trading stock
"175.(1) If:
(a) a person carries on a business; and
(b) the value of all the business's trading stock on hand at the end of a tax year is more than the value of all the business's trading stock on hand at the beginning of that year;
the person's ordinary income for that year in the form of profits from the business is to include the amount of the difference in values.
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"(2) If:
(a) a person carries on a business; and
(b) the value of all the business's trading stock on hand at the end of a tax year is less than the value of all the business's trading stock on hand at the beginning of that year;
the person's ordinary income for that year in the form of profits from the business is to be reduced by the amount of the difference in values.
Note: For 'tax year' see subsection 23(1) of the Social Security Act.
Permissible reductions-business income
Allowable reductions
"176.(1) If a person carries on a business, the person's ordinary income from the business is to be reduced by:
(a) losses and outgoings that relate to the business and are allowable deductions for the purposes of section 51 of the Income Tax Assessment Act; and
(b) depreciation that relates to the business and is an allowable deduction for the purposes of subsection 54(1) of that Act; and
(c) amounts that relate to the business and are allowable deductions under subsection 82AAC(1) of that Act.
No reduction for investment expenses
"(2) If the person is taken because of Subdivision G to receive ordinary income or additional ordinary income from money, the person's ordinary income from the money is not to be reduced by any expenses incurred by the person because of the investment of the money.
No reduction for loan expenses
"(3) If the person is taken because of Subdivision H to receive ordinary income or additional ordinary income from a loan, the person's ordinary income from the loan is not to be reduced by any expenses incurred by the person because of the loan.
"Subdivision B-Investment income-General
Structure
Provisions relevant to particular investments, etc.
"177.(1) Subdivisions C to F deal with various forms of investment and non-periodic receipts. Capital amounts
"(2) If the person's ordinary income is not covered by any of Subdivisions C to F, it may be covered by section 178.
Certain capital amounts not covered by Subdivisions C to F taken to be received over 12 months
Notional weekly income
"178.(1) If a person has, whether before or after the commencement of this section, received an amount that is not:
(a) income in the form of periodic payments; or
(b) ordinary income from remunerative work undertaken by the person; or
(c) a return from an accruing return investment; or
(d) a return from a market-linked investment;
the person is, for the purposes of this Part, taken to have received or to receive one fifty-second of the amount as ordinary income of the person during each week in the 12 months beginning on the day on which the person became entitled to receive the amount.

Person receiving an amount
"(2) A reference in subsection (1) to a person having received or receiving an amount includes a reference to a person having received or receiving an amount under an arrangement of the kind referred to in the definition of'accruing return investment' in subsection 9(1) of the Social Security Act to the extent to which section 187 or 188 does not apply to that entitlement.
"Subdivision C-Managed investments and listed securities
Investments to which this Subdivision applies
Managed investment
"179.(1) This Subdivision applies to an investment that is a managed investment unless it is:
(a) an accruing return investment that:
(i) was made or acquired before 1 January 1988; and
(ii) is covered by section 186; or
Note 1: For 'managed investment' see subsection 58(1).
Note 2: For 'accruing return investment' see subsection 9(1) of the Social Security Act.
(b) a market-linked investment that was made or acquired before 9 September 1988.
Note 1: For 'market-linked investment' see subsection 9(1) of the Social Security Act.
Note 2: For the treatment of these market-linked investments see section 193.
Listed security

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"(2) This Subdivision applies to a person's investment in the form of a listed security if the person acquired the investment after 18 August 1992.
Note: For 'listed security' see subsection 9(1) of the Social Security Act.

Bonds and debentures
"(3) This Subdivision does not apply to bonds and debentures.
How investment returns are taken into account in working out rate of youth training allowance
"180. If:
(a) a person has an investment; and
(b) this Subdivision applies to the investment; and
(c) based on its performance over the previous 12 months, the investment product to which the investment belongs has shown a return;
Note: For return on an investment product see section 182.
the person's ordinary income on a yearly basis is taken to be increased by the amount worked out using the formula:
value of investment x annualised rate of return on investment product
where:
'value of investment' is the value of the person's investment;
'annualised rate of return on investment product' is the annualised rate of return on the investment product based on its performance over the 12 months.
Note 1: For 'annualised rate of return' on the investment product see section 183.
Note 2: Actual receipts from the investment are not treated as ordinary income: see section 185.
How investment losses are taken into account in working out rate of youth training allowance
Calculation of reduction of income
"181.(1) If:
(a) a person has an investment; and
(b) this Subdivision applies to the investment; and
(c) based on its performance over the previous 12 months, the investment product to which the investment belongs has shown a loss;
Note: For loss on an investment product see section 182.
the person's ordinary income on a yearly basis is, subject to subsection (2), taken to be reduced by the amount worked out using the formula:
value of investment x annualised rate of loss on investment
product
where:
'value of investment' is the value of the person's investment;
'annualised rate of loss on investment product' is the annualised rate of loss on the investment product based on its performance over the 12 months.
Note: For 'annualised rate of loss' on the investment product see section 183.
Reductions not to be more than sum of investment returns
"(2) The reductions under subsection (1) in calculating a person's rate as at a particular day are not to be more than the sum of the investment-related increases in income made in working out the person's youth training allowance as at that day.
Meaning of 'investment-related increase in income'
"(3) For the purposes of subsection (2), an 'investment-related increase in income' is an increase in the person's ordinary income on a yearly basis:
(a) that is made under section 180; or
(b) that:
(i) is attributable to an investment to which Subdivision D
applies; and
(ii) is not attributable to a realisation to which section 186,
188 or 191 applies.
Returns and losses on investment products
"182. An investment product:
(a) shows a return for a 12 month period if:
(i) a rate of return on the product has been declared during the
period; or
(ii) the formula below gives a positive number; and
(b) shows a loss for a period if the formula below gives a negative number:
closing value + distributions - opening value
where:
'closing value' is the value of the product at the end of the period;
'distributions' is the sum of:
(a) the amount of the distributions (however described) made to the holders of the product during the period; and
(b) the value of bonus issues (however described) of the product to holders of the product during the period; and
(c) the value of any other rights given to holders of the product during the period because they hold investments in the product;
'opening value' is:

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(a) if the product has been available for the whole of the period- the value of the product at the beginning of the period; or
(b) if the product became available during the period-the value of the product when it became available.
Annualised rate of return or loss on investment product
Annualised rate of return
"183.(1) The annualised rate of return on an investment product for a period of 12 months is:
(a) if only one rate of return on the product has been declared during the period-the declared rate of return; or
(b) if 2 or more rates of return on the product have been declared during the period-the average of those declared rates of return; or
(c) in any other case-the rate worked out in accordance with subsections (5), (6) and (7).
Provisional or conditional declarations
"(2) In applying paragraph (1)(a), disregard provisional or conditional declarations of rates of return.
Declaration of dividend
"(3) For the purposes of this section, a declaration of a dividend is not a declaration of a rate of return.
Calculation of loss
"(4) The annualised rate of loss on an investment product for a period of 12 months is the rate worked out in accordance with subsections (5), (6) and (7).
Rate is percentage per year
"(5) The annualised rate of return or loss on an investment product is the rate of return or loss on the product expressed as a percentage per year.
Extrapolation of performance of product
"(6) If the investment product became available during the period, the performance of the product while it has been available is to be extrapolated for a whole 12 months.
Consideration in calculation
"(7) In working out the rate of return or loss on an investment product for a period of 12 months, the following are taken into account:
(a) if the product was available at the beginning of the period-the value of the product at the beginning of the period;
(b) if the product became available during the period-the value of the product when it became available;
(c) the value of the product at the end of the period;
(d) the amount of the distributions (however described) made to the holders of the product during the period;
(e) the value of bonus issues (however described) of the product to holders of the product during the period;
(f) the value of any other rights given to holders of the product during the period because they hold investments in the product.
Investment and disposal costs
Reduction of amount of reasonable costs
"184.(1) If:
(a) a person has an investment; and
(b) this Subdivision applies to the investment; and
(c) this Subdivision would operate, if this section did not apply, to increase the person's ordinary income on a yearly basis by a particular amount per year;
the amount of the increase is to be reduced by the amount of the reasonable costs that the person has incurred during the previous 12 months in relation to the making, acquisition or disposal of investments to which this Subdivision applies.
Nature of reasonable costs
"(2) For the purposes of subsection (1), costs incurred by the person are reasonable if any other person making, acquiring or disposing of an identical investment would be required to pay those costs as a condition of being permitted to make, acquire or dispose of the investment.
Actual return on investments not treated as ordinary income
"185. If:
(a) a person has an investment; and
(b) this Subdivision applies to the investment;
any return on the investment that the person actually receives is taken, for the purposes of this Part, not to be ordinary income of the person.
"Subdivision D-Investments taken into account on realisation
Investments made before 1 January 1988 with friendly societies or if no
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immediate return
Notional weekly income
"186.(1) If:
(a) a person has made or acquired, at any time before 1 January 1988, an accruing return investment; and
(b) the investment is:
(i) an investment with a friendly society; or
(ii) an investment of a kind where a return is not available until
the end of a period of at least 12 months after the investment was made or acquired or until full realisation of the investment; and
(c) the person realises the investment and receives an amount by way of a return on the investment;
the person is, for the purposes of this Part, taken to receive as ordinary income of the person, during each week in the 12 months beginning on the day on which the person realises the investment and receives an amount by way of return on the investment, the amount worked out using the formula:
assessable return
52
where:
'assessable return' is so much (if any) of the amount of the return as is attributable to the person's assessable period.
Note 1: For 'assessable period' see subsection 9(1) of the Social Security Act.
Note 2: For 'realising' an investment see subsections 9(10) and (11) of the Social Security Act.
Investment with friendly society
"(2) If subsection (1) applied to an investment because it was with a friendly society, that subsection does not cease to apply to the investment merely because the society ceases to be a friendly society. Subsection (1), however, only continues to apply to the investment while the terms of the investment remain substantially the same as they were when the investment was with a friendly society.
Note: This subsection is intended to deal with cases in which a friendly society restructures and as a result of the restructuring loses its friendly society status. If the terms of the investment remain substantially the same, the investor can still have the investment dealt with under this section.

How investment losses are taken into account in working out rate of youth training allowance
Calculation of reduction of income
"187.(1) If:
(a) a person has an investment; and
(b) section 186 applies to the investment; and
(c) the investment is realised at a loss;
the person's ordinary income is taken to be reduced, during each week in the 12 months beginning on the day on which the person realises the investment, by the amount worked out using the formula:
assessable loss
52
where:
'assessable loss' is so much (if any) of the amount of the loss as is attributable to the person's assessable period.
Note: For 'assessable period' see subsection 9(1) of the Social Security Act.

Limits on offsetting losses
"(2) Subsection (1) has effect subject to section 193 (limits on offsetting losses).
Market-linked investments made or acquired before 9 September 1988
Notional weekly income
"188.(1) If a person realises a market-linked investment that was made or acquired before 9 September 1988 and receives an amount by way of return, the person is taken to receive as ordinary income of the person, during each week in the 12 months beginning on the day on which the person realises the investment, the amount worked out using the formula:
assessable return
52
where:
'assessable return' is so much (if any) of the amount of the return as is attributable to the person's assessable period.
Note: For 'assessable period' see subsection 9(1) of the Social Security Act.
Realised investment
"(2) For the purposes of subsection (1), a person realises an investment if, and only if:
(a) all or part of the amount of the investment is withdrawn; or
(b) if the investment is an eligible investment in a body corporate or trust fund-the person transfers all or part of the investment to another body corporate or trust fund; or

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(c) all or part of the return on the investment is paid to another person; or
(d) the investment matures; or
(e) the investment is assigned by the person to another person; or
(f) the investment is disposed of by the person otherwise than in the way referred to in paragraph (e).
Return paid to another person
"(3) For the purposes of this section, if a person realises an investment in circumstances where the return on the investment is paid to another person, the return is taken to be received by the person realising the investment.
Special provisions about certain investments made before September 1988
Notional date of making or acquiring investment
"189.(1) If:
(a) before 9 September 1988, a person made or acquired a market-linked investment; and
(b) under an agreement made before 9 September 1988, dividends payable to the person in respect of the investment are not paid to the person directly but are invested in the person's name in market-linked investments included in the same investment product;
any market-linked investment arising from the investment of a dividend under that agreement on or after 9 September 1988 is taken, for the purposes of this Subdivision, to have been made, or acquired, by the person before 9 September 1988.
Disposal of investment
"(2) Subsections (3) and (4) apply if, at any time after 9 September 1988:
(a) a person held, or holds, 2 or more market-linked investments included in the same investment product; and
(b) at least one of the investments was made, or acquired, by the person before 9 September 1988 and at least one of the investments was made or acquired on or after that day; and the person has disposed of any of those investments whether before or after the commencement of this Part.
Notional disposal
"(3) If the amount received in respect of the disposal is equal to or more than:
(a) the value or amount, at the time of the disposal, of the investment made, or acquired, by the person before 9 September 1988; or
(b) the sum of the values or amounts, at the time of the disposal, of the investments made, or acquired, by the person before 9 September 1988;
as the case requires, the person is taken, for the purposes of this Subdivision, to have disposed of the whole of the investment or investments.
Partial disposal
"(4) If the amount received in respect of the disposal (the'disposal amount') is less than:
(a) the value or amount, at the time of the disposal, of the investment made before 9 September 1988; or
(b) the sum of the values or amounts, at the time of the disposal, of the investments made before 9 September 1988;
as the case requires, the person is taken, for the purposes of this Subdivision, to have disposed of so much of the investment or investments as is equal to the disposal amount.
How investment losses are taken into account in working out rate of youth training allowance
Calculation of reduction of income
"190.(1) If:
(a) a person has an investment; and
(b) section 188 applies to the investment; and
(c) the investment is realised at a loss;
the person's ordinary income is taken to be reduced, during each week in the 12 months beginning on the day on which the person realises the investment, by the amount worked out using the formula:
assessable loss
52
where:
'assessable loss' is so much (if any) of the amount of the loss as is attributable to the person's assessable period.
Note: For 'assessable period' see subsection 9(1) of the Social Security Act.
Limits on offsetting losses
"(2) Subsection (1) has effect subject to section 193 (limits on offsetting losses).
Withdrawal from superannuation fund
"191. If:
(a) a person realises an investment in a superannuation fund, approved
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deposit fund or deferred annuity; and
(b) the amount realised is not rolled over into:
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iii) a deferred annuity; or
(iv) an immediate annuity;
the person is taken to receive one fifty-second of the assessable growth component of the amount as ordinary income of the person during each week in the period of 12 months beginning on the day on which the person realises the investment.
Note: For 'assessable growth component' see subsection 9(1) of the Social Security Act.
How investment losses are taken into account in working out rate of youth training allowance
Calculation of reduction of income
"192.(1) If:
(a) a person has an investment; and
(b) section 191 applies to the investment; and
(c) the investment is realised at a loss;
the person's ordinary income is taken to be reduced, during each week in the 12 months beginning on the day on which the person realises the investment, by the amount worked out using the formula:
assessable loss
52
where:
'assessable loss' is so much (if any) of the amount of the loss as is attributable to the person's assessable period.
Note: For 'assessable period' see subsection 9(1) of the Social Security Act.
Limits on offsetting losses
"(2) Subsection (1) has effect subject to section 193 (limits on offsetting losses).
Limit on reduction of ordinary income for losses
"193. The sum of the reductions under sections 187, 190 and 192 in calculating a person's rate as at a particular day is not to be more than the sum of the increases to be made under sections 186, 188 and 191 in working out the person's youth training allowance rate as at that day.
"Subdivision E-Superannuation fund investments
Provisions affecting superannuation fund investments
"194. If:
(a) a person has an investment in;
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iii) a deferred annuity; and
(b) the person has not begun to receive a pension or annuity from the investment;
this is how the investment is treated:
(c) the return on the investment is not treated as ordinary income (see paragraph 8(8)(b) of the Social Security Act);
(d) the return on the investment is not treated as ordinary income under the managed investment rules in Subdivision C (see section 179);
(e) if the investment is realised, the proceeds are spread across the following 12 months (see section 191).
"Subdivision F-Immediate annuities and superannuation pensions
Immediate annuities
"195. For the purpose of working out the annual rate of a person's ordinary income from an immediate annuity, the person is taken to receive from the annuity each year an amount worked out by reducing the amount payable each year by the deductible amount in relation to the annuity.
Note: For 'deductible amount' see subsection 9(1) of the Social Security Act.
Superannuation pensions
"196. For the purpose of working out the annual rate of a person's ordinary income from a superannuation pension, the person is taken to receive from the pension each year an amount worked out by reducing the amount payable each year by the deductible amount in relation to the superannuation pension.
Note: For 'deductible amount' see subsection 9(1) of the Social Security Act.
"Subdivision G-Available money and deposit money
Structure of Subdivision G
"197. The various provisions of this Subdivision that apply to
available money and deposit money are shown in the following table:
STRUCTURE OF SUBDIVISION G
item type of money sections
1. income money that does not attract any interest 199, 202, 203
2. income money that attracts low interest 200, 202, 203

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3. other income money 201, 203
4. other deposit money 201

Basic concept-income money and interest received
When person has income money
"198.(1) For the purposes of this Subdivision, a person has income money at a particular time (the'relevant time') if the sum of:
(a) the person's available money; and
(b) the person's deposit money;
at the relevant time is more than $2,000.
Note 1: For 'deposit money' see subsection 8(1) of the Social Security Act.
Note 2: For 'available money' see subsection 58(1).
Money not included
"(2) In this section:
'available money' does not include money covered by a determination under section 202; and
'deposit money' does not include money covered by a determination under section 202.
Working out income money
"(3) This is how to work out which money forms part of the person's income money:
Method statement
Step 1. Start with the amount of $2,000 that is referred to in subsection (1).
Step 2. Set off against this amount any available money of the person.
Note: For the treatment of the money of members of a couple see subsection (4).
Step 3. Set off against the remainder any deposit money of the person that does not attract interest.
Note: For the treatment of the money of members of a couple see subsection (5).
Step 4. Set off against the remainder any deposit money of the person that does attract interest: this money is to be set off in ascending order of interest rate.
Note: For the treatment of the money of members of a couple see subsection (6).
Step 5. Any available money or deposit money that can be set off under Steps 2 to 4 is not income money of the person.
Step 6. Any available money or deposit money that cannot be set off under Steps 2 to 4 is income money of the person at the relevant time.
Available money of member of couple
"(4) 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.
Deposit money-no interest attracted
"(5) 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.
Deposit money-particular rate of interest attracted
"(6) 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.
Remainder
"(7) For the purposes of subsection (3):
(a) if available money or deposit money is to be set off against an amount, only so much of the money as is not more than the amount can be set off against the amount; and
(b) if the person does not have money of a particular kind, the amount to be set off is nil and the amount left after the setting off is called the 'remainder'.
Interest taken to be received on anniversary of deposit
"(8) For the purposes of this Subdivision, if:
(a) interest is paid on deposit money; and
(b) the interest is received or accounted for less frequently than the anniversary of the making of the deposit;

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interest on the deposit money is taken to be received by the depositor on each anniversary of the making of the deposit.
Income money that does not attract interest
No interest
"199.(1) If:
(a) money is income money of a person; and
(b) interest is not paid on the money;
the person is taken to receive interest on the money at the assumed rate.
Note: For 'assumed rate of interest' see section 203.
Subsection (1) subject to section 202
"(2) Subsection (1) has effect subject to section 202.
Income money that attracts low interest
Interest less than assumed rate
"200.(1) If:
(a) money is income money of a person; and
(b) the rate per year at which interest is paid on the money is less than the assumed rate;
the person is taken to receive interest on that money at the assumed rate.
Note: For 'assumed rate of interest' see section 203.
Subsection (1) subject to section 202
"(2) Subsection (1) has effect subject to section 202.
Other deposit money
Calculation of deemed increase
"201.(1) If a person has:
(a) deposit money that is not income money; or
(b) deposit money that:
(i) is income money of the person; and
(ii) attracts interest at a rate that is equal to or more than the
assumed rate;
the person's ordinary income on a yearly basis is taken to be increased by the amount worked out using the formula:
amount of deposit money x current annual rate of interest
where:
'amount of deposit money' is the amount of the deposit money;
'current annual rate of interest' is the annual rate of interest payable on the deposit money.
If return actually received
"(2) If:
(a) a person is taken, because of subsection (1), to have received income from deposit money; and
(b) the person actually receives a return from that money;
the return actually received is taken, for the purposes of this Part, not to be ordinary income of the person.
Rate not fixed or quantifiable
"(3) If the rate of return on deposit money is not a fixed rate or a quantifiable rate, then, for the purposes of subsection (1), the current annual rate of return on that income money is a reasonable approximation of the rate of return.
Certain money to be disregarded
Minister may determine that money to be disregarded
"202.(1) The Minister may determine in writing that:
(a) particular money of a person; or
(b) particular money of a class of persons;
is to be disregarded in calculating a person's available money or a person's deposit money for the purposes of section 198.
Date of effect
"(2) A determination under subsection (1) takes effect on the day on which the determination was made or on any later day or earlier day that is stated in the determination.
Assumed rate of interest on income money
Assumed rate
"203.(1) The assumed rate of interest is:
(a) subject to paragraph (b), 4% a year; or
(b) if another rate is determined under subsection (2)-that other rate.
Minister may determine rate
"(2) The Minister may from time to time determine in writing an annual rate of less than 10% a year that is to be the assumed rate for the purposes of this Subdivision and Subdivision H.

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Disallowable instrument
"(3) A determination under subsection (2) is a disallowable instrument.
Note: For 'disallowable instrument' see subsection 23(1) of the Social Security Act.
"Subdivision H-Interest attributed to money on loan
Application of this Subdivision
Loan after 21 August 1990
"204.(1) This Subdivision applies to loans by a person entered into, or acquired, by the person after 21 August 1990.
Exclusion of Subdivision G
"(2) If this Subdivision applies to a person's loan, Subdivision G does not apply to the return on the loan.
Structure of Subdivision
"205. The various provisions that apply to loans are shown in the following table:
STRUCTURE OF SUBDIVISION H
item type of loan sections
1. loans that do not attract interest 207, 210, 211
2. loans that attract low interest 208, 210, 211
3. other loans 209, 211

Basic concepts-loan and interest
"206. For the purposes of this Subdivision:
(a) there is a loan by a person if, but not only if, the person has:
(i) debentures; or
(ii) bonds; or
(iii) other securities; and
(b) there is no loan by a person:
(i) because the person has money in an account with a financial
institution; or
(ii) because of a person's entry contribution; and
(c) the interest on a loan includes any payment for the use of the money that is lent; and
(d) if the interest that is paid on a loan is received or accounted for less frequently than each anniversary of the making of the loan, interest on the loan is taken to be received by the lender on each anniversary of the making of the loan.
Note 1: The money excluded by paragraph (b) is dealt with under Subdivision G.
Note 2: For 'entry contribution' see section 58 of this Act and section 1147 of the Social Security Act.
Loans that do not attract interest
"207. Subject to section 210, if:
(a) there is a loan by a person; and
(b) the person is not paid interest on the loan; the person is taken to receive, on each anniversary of the making of the loan, interest on the loan at the assumed loan rate.
Note: For 'assumed loan rate' see section 211.
Loans that attract a low rate of interest
"208. Subject to section 210, if:
(a) there is a loan by a person; and
(b) the person is paid interest on the loan; and
(c) the rate of interest is less than the assumed loan rate;
the person is taken to receive interest on the loan at the assumed loan rate.
Note: For 'assumed loan rate' see section 210.
Other loans
Calculation of notional increase
"209.(1) If:
(a) there is a loan by a person; and
(b) the person is paid interest on the loan; and
(c) the rate of interest is equal to or more than the assumed loan rate;
the person's ordinary income on a yearly basis is taken to be increased by:
amount of loan x current annual rate of interest on the loan
where:
'amount of loan' is the amount of the loan;
'current annual rate of interest on the loan' is the annual rate of interest payable on the loan.
If return actually received
"(2) If:
(a) a person is taken, because of subsection (1), to have received income from a loan; and
(b) the person actually receives interest on the loan;
the interest actually received is taken, for the purposes of this Part, not to
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be ordinary income of the person.
Rate not fixed or quantifiable
"(3) If the rate of interest on a loan is not a fixed rate or a quantifiable rate, then, for the purposes of subsection (1), the current annual rate of interest on that loan money is a reasonable approximation of the rate of interest.
Certain loans to be disregarded
Minister may determine that loans to be disregarded
"210.(1) The Minister may determine in writing that:
(a) particular loans; or
(b) loans of a particular class;
are to be disregarded for the purposes of sections 207 and 208.
Date of effect
"(2) A determination under subsection (1) takes effect on the day on which the determination was made or on any later day or earlier day that is stated in the determination.
Assumed loan rate of interest
Assumed rate
"211.(1) The assumed loan rate is:
(a) subject to paragraph (b), 4% a year; or
(b) if another rate is determined under subsection (2)-that other rate.
Minister may determine rate
"(2) The Minister may from time to time determine in writing a rate of less than 10% a year that is to be the assumed loan rate for the purposes of this Division.
Disallowable instrument
"(3) A determination under subsection (2) is a disallowable instrument.
Note: For 'disallowable instrument' see subsection 23(1) of the Social Security Act.
"Subdivision I-Income attributed to deprived assets
Application of this Subdivision
"212. This Subdivision applies to dispositions of assets that occur after 21 August 1990.
Income attributed to deprived assets
"213. If:
(a) a person disposes of an asset; and
(b) the value of the asset is included in the value of the person's assets under point E8 or E9 in MODULE E in Schedule 1;
the following provisions have effect:
(c) the person is taken to obtain income from the asset; and
(b) the income is taken to be:
(i) interest on the value of the asset at the assumed property
rate; or
(ii) the amount calculated in accordance with subsection 219(3);
whichever is the higher.
Note: For 'assumed property rate' see section 214.
Assumed property rate
Assumed property rate
"214.(1) The assumed property rate is:
(a) subject to paragraph (b), 4% a year; or
(b) if another rate is determined under subsection (2)-that other rate.
Minister may determine rate
"(2) The Minister may from time to time determine in writing a rate of less than 10% a year that is to be the assumed property rate for the purposes of this Subdivision.

Disallowable instrument
"(3) A determination under subsection (2) is a disallowable instrument.
Note: For 'disallowable instrument' see subsection 23(1) of the Social Security Act.
"Subdivision J-Disposal of ordinary income
Disposal of ordinary income
When person disposes of ordinary income
"215.(1) For the purposes of this Part, a person disposes of ordinary income of the person if:
(a) the person engages in a course of conduct that directly or indirectly:
(i) destroys the source of the income; or
(ii) disposes of the income or the source of the income; or
(iii) diminishes the income; and

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(b) one of the following subparagraphs is satisfied:
(i) the person receives no consideration in money or money's worth
for the destruction, disposal or diminution;
(ii) the person receives inadequate consideration in money or
money's worth for the destruction, disposal or diminution;
(iii) the Secretary is satisfied that the person's purpose, or the
person's dominant purpose, in engaging in that course of conduct was to obtain a social security advantage.
Purpose of obtaining social security advantage
"(2) For the purposes of subsection (1), a person has a purpose of obtaining a social security advantage if the person has a purpose of:
(a) obtaining a youth training allowance or obtaining such an allowance at a higher rate than would otherwise have been payable; or
(b) enabling the person's partner to obtain a social security pension, a social security benefit, a service pension or a youth training allowance or to obtain such a pension, benefit or allowance at a higher rate than would otherwise have been payable; or
(c) ensuring that the person or the person's partner would be qualified for fringe benefits for the purposes of this Act or the Veterans' Entitlements Act.
Note 1: For 'amount of disposition' see section 216.
Note 2: For the effect of a transaction that constitutes both a disposal of an asset and a disposal of ordinary income see section 219.
Amount of disposition
"216. If a person disposes of ordinary income, the amount of the disposition is the amount that, in the Secretary's opinion, is:
(a) if the person receives no consideration for the destruction, disposal or diminution-the annual rate of the diminution of the income because of the destruction, disposal or diminution; or
(b) if the person receives consideration for the destruction, disposal or diminution-the annual rate of the diminution of the income because of the destruction, disposal or diminution less the part (if any) of the consideration that the Secretary considers to be fair and reasonable in all the circumstances.
Disposal of ordinary income-individuals
"217. If a person who is not a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person, the amount of the disposition is to be included in the person's ordinary income for the purposes of this Part.
Note 1: For 'disposes of ordinary income' see section 215.
Note 2: For 'amount of disposition' see section 216.
Note 3: For 'ordinary income' see subsection 8(1) of the Social Security Act:'ordinary income' includes investment income but does not include maintenance income.
Disposal of ordinary income-members of couples
Disposal after 14 May 1987
"218.(1) Subject to subsections (2), (3) and (4), if a person who is a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person:
(a) 50% of the amount of the disposition is to be included in the person's ordinary income; and
(b) 50% of the amount of the disposition is to be included in the person's partner's ordinary income.
Note 1: For 'disposes of ordinary income' see section 215.
Note 2: For 'amount of disposition' see section 216.
Cessation of membership of couple
"(2) If:
(a) amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person's partner's ordinary income because the person has disposed of ordinary income; and
(b) the person and the person's partner cease to be members of the same couple;
any amount that was included in the ordinary income of the person's former partner because of the disposition is to be included in the person's ordinary income.
Death of member of couple
"(3) If:
(a) amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person's partner's ordinary income because the person has disposed of ordinary income; and
(b) the person dies;
no amount is to be included in the ordinary income of the person's partner because of the disposition.

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Death of member's partner
"(4) If:
(a) an amount is included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person's partner's ordinary income because the person has disposed of ordinary income; and
(b) the person's partner dies;
any amount that would, if the person's partner had not died, be included in the ordinary income of the person's partner because of the disposition is to be included in the person's ordinary income.
Note: For 'ordinary income' see subsection 8(1) of the Social Security Act:'ordinary income' includes investment income but does not include maintenance income.
Treatment of transactions that constitute both a disposal of ordinary income and a disposal of assets.
Disposal
"219.(1) This section applies if:
(a) a person disposes of an asset of the person; and
(b) the course of conduct that constituted the disposition of the asset also constituted a disposition of ordinary income; and
(c) the ordinary income disposed of is attributable, in whole or in part, to the asset.
No amount included
"(2) If:
(a) this section applies; and
(b) an amount is not included in the value of the person's assets under point E8 or E9 in MODULE E in Schedule 1 because of the disposition of the asset;
an amount is not, for the purposes of section 217 or 218, to be included in the person's ordinary income because of the disposition of ordinary income.
Amount included
"(3) If:
(a) this section applies; and
(b) the amount that is included in the value of the person's assets under point E8 or E9 in MODULE E in Schedule 1 because of the disposition of the asset is:
(i) if point E8 applies-less than 50% of the amount of the
disposition of the asset; or
(ii) if point E9 applies-less than the amount of the disposition
of the asset;
the amount to be included in the person's ordinary income because of the disposition of ordinary income is to be worked out disregarding so much of the amount of the disposition of ordinary income as the Secretary decides is attributable to the part of the amount of the disposition of the asset that is not included in the value of the person's assets under point E8 or E9.
Dispositions more than 5 years old to be disregarded
"220. This Subdivision does not apply to a disposition of ordinary income that took place:
(a) more than 5 years before the time when:
(i) the person who disposed of the ordinary income; or
(ii) if the person who disposed of the ordinary income was, at the
time of disposition, a member of a couple-the person's partner;
became qualified for a youth training allowance; or
(b) less than 5 years before the time referred to in paragraph (a) and before the time when the Secretary is satisfied that the person who disposed of the ordinary income could reasonably have expected that the person or the person's partner would become qualified for a youth training allowance.
"Subdivision K-Earnings credits
Earnings credit balance may be set-off against ordinary income from remunerative work
Earnings credit account balance-not member of couple
"221.(1) If:
(a) a person is receiving a youth training allowance; and
(b) the person earns an amount of money for remunerative work done by the person during an earnings credit accounting period; and
(c) in that period, the person's fortnightly rate of ordinary income is more than the person's ordinary income free area; and
(d) the rate of youth training allowance payable to the person for the accounting period would otherwise be greater than nil; and
(e) immediately before the beginning of that period, the person's earnings credit account balance is greater than nil;
then, in applying an ordinary income test to the person or to the person's partner, disregard:
(f) if the person's earnings credit account balance is equal to or more than the amount earned-the whole of the amount; or
(g) if the person's earnings credit account balance is less than the amount
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earned-the part of the amount that is not more than the earnings credit account balance.
Note: For 'ordinary income test' see Schedule 1 (MODULE G).
Earnings credit account balance-member of a couple
"(2) If:
(a) a person is receiving a youth training allowance; and
(b) the person is a member of a couple; and
(c) the person's partner:
(i) is not receiving a social security pension or service pension;
and
(ii) is not receiving a social security benefit or a youth
training allowance; and
(d) the partner earns an amount of money from remunerative work done by the partner during an earnings credit accounting period; and
(e) in that period, the person's fortnightly rate of ordinary income is more than the person's ordinary income free area; and
(f) the rate of youth training allowance payable to the person for the accounting period would otherwise be greater than nil; and
(g) immediately before the beginning of that period, the partner's earnings credit account balance is greater than nil;
then, in applying an ordinary income test to the person, disregard:
(h) if the partner's earnings credit account balance is equal to or more than the amount earned-the whole of the amount; or
(i) if the partner's earnings credit account balance is less than the amount earned-the part of the amount that is not more than the earnings credit account balance.
Note: For 'ordinary income test' see Schedule 1 (MODULE G).
Earnings credit account
Person in receipt of youth training allowance
"222(1). If a person is receiving a youth training allowance, the person has an earnings credit account.
Partner in receipt of a pension, benefit or allowance
"(2) If:
(a) a person is receiving a youth training allowance; and
(b) the person is a member of a couple; and
(c) the persons' partner:
(i) is not receiving a social security pension or service pension;
and
(ii) is not receiving a social security benefit or a youth
training allowance;
the partner has an earnings credit account.
No earnings credit account for recipients of carer pension/special benefit
"(3) The partner does not have an earnings credit account under subsection (2) if the partner is receiving:
(a) a carer pension; or
(b) special benefit.
Earnings credit account balance
"223. The person's earnings credit account balance is worked out in accordance with Schedule 4.
"Division 12-Compensation recovery
"Subdivision A-General
General effect of Division
Payments affected
"224.(1) If a person is or may be entitled to or receives compensation, payments of youth training allowance to the person or the person's partner might be affected under this Division.
Failure to claim or obtain compensation
"(2) If the person is or may be entitled to compensation and does not take reasonable action to claim or obtain the compensation, the allowance might not be payable to the person.
Compensation in form of lump sum
"(3) If the compensation is in the form of a lump sum, the allowance might cease to be payable for a period (based on the amount of the lump sum) and some or all of the allowance might be repayable.
Note 1: Under section 225, certain lump sum payments may be treated as though they were received as periodic payments.
Note 2: Under section 226, a person may be treated as having received compensation that the person would have received but for the effect of a State or Territory law.
Compensation in form of periodic payments
"(4) If the compensation is in the form of a series of periodic payments,
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the rate of the allowance might be reduced for the period for which the payments are received.
Note 1: Under section 225, certain lump sum payments may be treated as though they were received as periodic payments.
Note 2: Under section 226, a person may be treated as having received compensation that the person would have received except for the effect of a State or Territory law.
Connection between circumstances giving rise to qualification and compensation unnecessary
"(5) This Division operates in certain stated circumstances to affect a person's youth training allowance because of compensation received by the person or the person's partner. This Division is not intended to contain any implication that, in addition to those stated circumstances, there needs to be some connection between the circumstances that give rise to the person's qualification for the allowance and the circumstances that give rise to the person's or the partner's compensation.
Note: See the note to subsection 248(2) for more background information.
Certain lump sums to be treated as though they were received as periodic payments
"225. If:
(a) a person is entitled to periodic payments under a law of a State or Territory; and
(b) the person's entitlement to the periodic payments is converted under the law of the State or Territory into an entitlement to a lump sum; and
(c) the lump sum is calculated by reference to a period; and
(d) the lump sum is to be paid to the person in 2 or more instalments;
this Part applies to the person as if:
(e) the person had not received the instalments; and
(f) the person had received in each fortnight during the period a periodic compensation payment equal to the amount worked out using the formula:
lump sum amount
number of fortnights in the period
where:
'lump sum amount' is the amount of the lump sum referred to in paragraph (b);
'number of fortnights in the period' is the number of whole fortnights in the period referred to in paragraph (c).
Effect of certain State and Territory laws
"226. If:
(a) a law of a State or Territory provides for the payment of compensation; and
(b) the law includes a provision to the effect that a person's compensation under the law is to be or may be reduced or cancelled if the person is qualified for or receives payments under this Part;
this Part applies as if the person had received under the law the compensation that the person would have received under the law if the provision referred to in paragraph (b) had not been enacted.
"Subdivision B-Enforcement of compensation rights
Secretary may require person to take action to obtain compensation
Person receiving youth training allowance
"227.(1) If:
(a) a person is receiving youth training allowance; and
(b) the person or the person's partner is entitled or may, in the Secretary's opinion, be entitled to compensation; and
(c) the person or the partner has taken:
(i) no action to claim or obtain the compensation; or
(ii) no action that the Secretary considers reasonable to claim or
obtain the compensation;
the Secretary may require the person or the partner to take the action stated by the Secretary.
Person qualified for youth training allowance
"(2) If:
(a) a person is qualified for youth training allowance; and
(b) the person or the person's partner is entitled or may, in the Secretary's opinion, be entitled to compensation; and
(c) the person or the partner has taken:
(i) no action to claim or obtain the compensation; or
(ii) no action that the Secretary considers reasonable to claim or
obtain the compensation;
the Secretary may require the person or the partner to take the action stated by the Secretary.
Secretary's opinion regarding entitlement
"(3) Even though a person has entered into an agreement to give up the person's right to compensation, the Secretary may form the opinion that the
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person may be entitled to compensation if the Secretary is satisfied that the agreement is void, ineffective or unenforceable.
Agreement to give up right to compensation
"(4) For the purposes of subsection (3), a person enters into an agreement to give up the person's right to compensation if the person:
(a) enters into an agreement to waive the person's right to compensation; or
(b) enters into an agreement to withdraw the person's claim for compensation.
Stated action
"(5) The action stated by the Secretary is to be the action that the Secretary considers reasonable to enable the person to claim or obtain the compensation.
Youth training allowance ceases if recipient fails to comply
"(6) If, under subsection (1), the Secretary requires a person who is receiving youth training allowance to take action to claim or obtain compensation, the allowance ceases to be payable to the person unless the person complies with the requirement.
Youth training allowance ceases to be payable unless requirement complied with
"(7) If, under subsection (1), the Secretary requires the partner of a person who is receiving youth training allowance to take action to obtain or claim compensation, the allowance ceases to be payable to the person unless the partner complies with the requirement.
Youth training allowance ceases if qualified person fails to comply
"(8) If, under subsection (2), the Secretary requires a person who is qualified for youth training allowance to take action to claim or obtain compensation, the allowance is not to be granted to the person unless the person complies with the requirement.
Youth training allowance not to be granted unless requirement complied with
"(9) If, under subsection (2), the Secretary requires the partner of a person who is qualified for a youth training allowance to take action to claim or obtain compensation, the allowance is not to be granted to the person unless the partner complies with the requirement.
Qualification if person or partner complies
"(10) If a person or a person's partner complies with a requirement under this section, the person is not disqualified by this section from youth training allowance.
"Subdivision C-Receipt of compensation
Youth training allowance not payable during lump sum preclusion period
Person not member of a couple
"228.(1) If:
(a) a person is qualified for youth training allowance; and
(b) the person is not a member of a couple; and
(c) the person receives compensation in the form of a lump sum (whether before or after the person became qualified for the allowance);
youth training allowance is not payable to the person for the lump sum preclusion period.
Note: For 'lump sum preclusion period' see subsections (3) to (8).
Person member of a couple
"(2) If:
(a) a person is qualified for youth training allowance; and
(b) the person is a member of a couple; and
(c) the person, or the person's partner, receives compensation in the form of a lump sum (whether before or after the person became qualified for the allowance);
the following provisions have effect:
(d) youth training allowance is not payable to the person for the lump sum preclusion period;
(e) youth training allowance is not payable to the person's partner for the lump sum preclusion period.
Note: For 'lump sum preclusion period' see subsections (3) to (8).
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 stated in subsection (7).
Note: For 'periodic payments period' see section 17 of the Social Security
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Act.
Entitlement received in lump sum
"(4) 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 stated in subsection (7).
Compensation for injury, disease or condition
"(5) If a person:
(a) receives compensation in relation to an injury, disease or condition in the form of a lump sum (the'first lump sum'); and
(b) the person receives compensation in the form of a further lump sum (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 stated in subsection (7).

Lump sum preclusion period in other circumstances
"(6) If none of subsections (3), (4) and (5) 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 stated in subsection (7).
Number of weeks in period
"(7) The number of weeks in the lump sum preclusion period is the number worked out using the following formula:
compensation part of lump sum
average weekly earnings
Note 1: For 'compensation part of lump sum' see section 17 of the Social Security Act.
Note 2: For 'average weekly earnings' see section 17 of the Social Security Act.
Rounding down number of weeks
"(8) If the number worked out under subsection (7) is not a whole number, the number is to be rounded down to the nearest whole number.
Person may have to repay amount if both lump sum and youth training allowance payments have been received
Secretary may determine person liable to pay amount
"229.(1) If:
(a) a person in relation to whom youth training allowance is payable receives compensation in the form of a lump sum; and
(b) the person receives payments of youth training allowance for the lump sum preclusion period;
the Secretary may, by written notice to the person, determine that the person is liable to pay to the Commonwealth the amount stated in the notice.
Note: For 'lump sum preclusion period' see subsections 228(3) to (8).
Amount stated in notice
"(2) Subject to subsection (5), the amount stated in the notice is the recoverable amount and is worked out under the following Table and subsections (3) and (4).
RECOVERABLE AMOUNT TABLE
column 1 column 2 column 3 column 4
item category of person partner's status recoverable amount
1. Not member of the smaller of:
a couple CLS
PYTAP
(see subsection (3))
2. Partnered Not qualified for: the smaller of:
PA CLS
DSP PYTAP
SPP (see subsection (3))
SSB
DSWP
CP
SNDSP
SNDSWP
MA
RHA
MAPA
YTA

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3. Partnered Qualified for:
PA the smaller of:
CLS
DSP PYTAP + PPBAP
SPP (see subsection (4))
SSB
DSWP
CP
SNDSP
SNDSWP
RHA
MA
MAPA
YTA
KEY
DSP = disability support
pension SNDSWP = special needs disability
support wife pension
PA = partner allowance RHA = rehabilitation allowance
payable in place of DSP or
SSB
SPP = sole parent pension MA = mature age allowance
SSB = social security benefit MAPA = mature age partner
allowance
DSWP = disability support wife
pension CLS = compensation part of lump
sum
CP = carer pension PPBAP = partner's pension, benefit
or allowance payments
SNDSP = special needs disability
support pension YTA = youth training allowance
PYTAP = person's youth training
allowance payments
Person's situation covered by item 1, 2
"(3) If the person's situation is covered by item 1 or 2 in the Table, the recoverable amount is equal to the smaller of:
(a) the compensation part of the lump sum; or
(b) the sum of the youth training allowance payments made to the person for the lump sum preclusion period.
Person's situation covered by item 3
"(4) If the person's situation is covered by item 3 in the Table, the recoverable amount is equal to the smaller of:
(a) the compensation part of the lump sum; or
(b) the sum of:
(i) the youth training allowance payments made to the person, and
to the person's partner, for the lump sum preclusion period; and
(ii) the pension, benefit or allowance payments made to the
person's partner under the Social Security Act for the lump sum preclusion period that have not been recovered under the provision of that Act that corresponds to this section.
Amount to be reduced by notional FAS entitlement
"(5) If:
(a) subsection (1) applies to payments of youth training allowance paid to a person for a particular period (the'overpayment recovery period'); and
(b) the Secretary is satisfied that family allowance supplement would have been payable to the person's partner for some or all of the overpayment recovery period if:
(i) the person's partner had claimed family allowance supplement
for that period; and
(ii) neither the person nor the person's partner had been
receiving a social security pension, a social security benefit or a youth training allowance during that period;
the amount stated in the notice under subsection (1) is to be reduced by the notional FAS entitlement.
Meaning of 'notional FAS entitlement'
"(6) For the purposes of subsection (5), the'notional FAS entitlement' is the amount of family allowance supplement that the person's partner would, in the Secretary's opinion, have received during the overpayment recovery period if:
(a) the person's partner had claimed family allowance supplement for that period; and
(b) neither the person nor the person's partner had been receiving a social security pension, a social security benefit or a youth training allowance during that period.
Meaning of'family allowance supplement'
"(7) In subsections (5) and (6):

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'family allowance supplement' means family allowance supplement within the meaning of the Social Security Act 1991 as in force immediately before 1 January 1993.
Lump sum compensation not counted as ordinary income
"230. If an amount per fortnight of a youth training allowance is not payable to a person under section 228 because of compensation in the form of a lump sum, that lump sum is not to be regarded as ordinary income of either the person or the person's partner for the purposes of this Part.
Note: For 'ordinary income' see section 8 of the Social Security Act.
Rate reduction if periodic compensation payments received
Person qualified for youth training allowance
"231.(1) If:
(a) a person, or a person's partner, receives a series of periodic compensation payments; and
(b) the person is qualified for a youth training allowance for the periodic payments period; and
(c) the person was not, at the time of the event that gave rise to the entitlement of the person, or the person's partner, to the compensation, receiving youth training allowance;
the rate of the person's allowance is to be reduced, under subsection (2), for the periodic payments period.
Note 1: For 'periodic payments period' see section 17 of the Social Security Act.
Note 2: If a person, or a person's partner, was receiving youth training allowance at the time of an event that gave rise to the entitlement of the person, or the person's partner, to compensation, the compensation is treated as ordinary income.
Method of working out reduced rate
"(2) If the rate of a person's youth training allowance is to be reduced under subsection (1), the following Table is to be used to work out the person's reduced rate:
REDUCTION TABLE
column 1
item
column 2
category of
person
column 3
partner's status
column 4
compension
recipient
column 5
reduced
fortnightly
rate of youth
training
allowance
1. Not member
of a couple person PYTA*PC
2. Partnered not qualified
for:
PA
DSP
SPP
SSB
DSWP
CP
SNDSP
SNDSWP
RHA
MA
MAPA
YTA person PYTA*PC
3. Partnered not qualified
for:
PA
DSP
SPP
SSB
DSWP
CP
SNDSP
SNDSWP
RHA
MA
MAPA

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YTA partner PYTA*PC
4. Partnered qualified for:
PA
DSP
SPP
SSB
DSWP
CP
SNDSP
SNDSWP
RHA
MA
MAPA
YTA person PYTA*PC
2
5. Partnered qualified for:
PA
DSP
SPP
SSB
DSWP
CP
SNDSP
SNDSWP
RHA
MA
MAPA
YTA partner PYTA*PC
2
KEY
DSP = disability support
pension RHA = rehabilitation allowance
payable in place of DSP or
SSB
PA = partner allowance MA = mature age allowance
SPP = sole parent pension MAPA = mature age partner
allowance
SSB = social security benefit PC = fortnightly rate of
periodic compensation
DSWP = disability support wife
pension PYTA = person's fortnightly rate
of youth training
allowance
CP = carer pension YTA = youth training allowance
SNDSP = special needs disability
support pension
SNDSWP = special needs disability
support wife pension
Note 1: If the fortnightly rate of periodic compensation is higher than the fortnightly rate of youth training allowance, the allowance will be reduced to nil for the periodic payments period.
Note 2: If a person's rate is reduced under subsection (1), the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 257 (maximum basic rate and additional amount for partner first, then rent assistance).
Rate reduction under income test and this Division
"232. If:
(a) the rate of a person's youth training allowance is to be reduced under this Division; and
(b) the person's rate is reduced under MODULE E or MODULE G in Schedule 1;
the reduction under this Division is to apply to the person's rate as reduced under the MODULE or MODULES concerned.
Person may have to repay amount if both periodic compensation payments and allowance payments have been received
Secretary may determine person liable to pay amount
"233.(1) If:
(a) a person receives a series of periodic compensation payments; and
(b) the person receives payments of youth training allowance for the periodic payments period; and
(c) the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, receiving youth training allowance; and
(d) the payments referred to in paragraph (b) have not been reduced under section 231;
the Secretary may, by written notice to the person, determine that the person is liable to pay to the Commonwealth the amount stated in the notice.
Note: If a person was, at the time of the event that gave rise to the entitlement of the person to compensation, receiving youth training allowance,
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the compensation is treated as ordinary income. If arrears of periodic compensation payments are treated as ordinary income and a'compensation debt' is involved, then see subsections 167(7) and (8).
Amount stated in notice
"(2) The amount stated in the notice is the recoverable amount and is worked out under the following Table and subsections (3) and (4).
RECOVERABLE AMOUNT TABLE
column 1
item column 2
category of person column 3
partner's status column 4
recoverable amount
1. Not member of
a couple the smaller of:
SPCP
PYTAP
(see subsection (3))
2. Partnered Not qualified for:
PA
DSP
SPP
SSB
DSWP
CP
SNDSP
SNDSWP
RHA
MA
MAPA
YTA the smaller of:
SPCP
PYTAP
(see subsection (3))
3. Partnered Qualified for:
PA
DSP
SPP
SSB
DSWP
CP
SNDSP
SNDSWP
RHA
MA
MAPA
YTA the smaller of:
SPCP
PYTAP + PPBAP
(see subsection (4))
KEY
DSP = disability support
pension SNDSWP = special needs disability
support wife pension
PA = partner allowance RHA = rehabilitation allowance
payable in place of DSP
or SSB
SPP = sole parent pension MA = mature age allowance
SSB = social security benefit MAPA = mature age partner
allowance
DSWP = disability support wife
pension SPCP = sum of periodic
compensation payments
CP = carer pension PPBAP = partner's pension,
benefit or allowance
payments
SNDSP = special needs disability
support pension YTA = youth training allowance
PYTAP = person's youth training
allowance payments

Person's situation covered by item 1, 2
"(3) If the person's situation is covered by item 1 or 2 in the Table, the recoverable amount is equal to the smaller of:
(a) the sum of the periodic compensation payments; or
(b) the sum of the youth training allowance payments to the person for the periodic payments period.
Person's situation covered by item 3
"(4) If the person's situation is covered by item 3 in the Table, the
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recoverable amount is equal to the smaller of:
(a) the sum of the periodic compensation payments; or
(b) the sum of:
(i) the youth training allowance payments made to the person, and
to the person's partner, for the periodic payments period; and
(ii) the pension, benefit or allowance payments made to the
person's partner for the periodic payments period under the Social Security Act that have not been recovered under the provision of that Act that corresponds to this section.

Periodic compensation payments not counted as ordinary income
"234. If the amount per fortnight of a youth training allowance payable to a person is reduced under section 231 because of a series of periodic compensation payments, those payments are not to be regarded as ordinary income of either the person or the person's partner for the purposes of this Part.
"Subdivision D-Compensation payers
Secretary may send preliminary notice to potential compensation payer
Notice that Secretary may wish to recover amount
"235.(1) If:
(a) a person seeks compensation in respect of the person's lost earnings or lost capacity to earn; and
(b) the person receives or claims a youth training allowance for any period to which the compensation relates;
the Secretary may give written notice to the person's potential compensation payer stating that the Secretary may wish to recover an amount from the potential compensation payer.
Note: For 'potential compensation payer' see section 17 of the Social Security Act.
Contents of notice
"(2) A notice under subsection (1) must contain:
(a) a statement of the potential compensation payer's obligation under section 236; and
(b) a statement of the effect of section 240 so far as it relates to a preliminary notice.
Potential compensation payer must tell Department of liability
"236. If a potential compensation payer:
(a) is given notice under section 235 in relation to a person; and
(b) either before or after receiving the notice, becomes liable to pay compensation to the person;
the potential compensation payer must give written notice to the Department of Social Security of the liability within 7 days after:
(c) becoming liable; or
(d) receiving the notice;
whichever happens later.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.
Secretary may send recovery notice to compensation payer
Notice that Secretary proposes to recover amount
"237.(1) If:
(a) a compensation payer:
(i) is liable to pay compensation to a person for a disease,
injury or condition of the person; or
(ii) has determined that a payment by way of compensation is to be
made to a person in respect of a disease, injury or condition of the person; and
(b) the person receives or claims a youth training allowance for the periodic payments period or the lump sum preclusion period;
the Secretary may give written notice to the compensation payer stating that the Secretary proposes to recover the amount stated in the notice from the compensation payer.
Note: For 'compensation payer' see section 17 of the Social Security Act.
Payer liable to pay Commonwealth
"(2) If a compensation payer is given notice under subsection (1), the compensation payer is liable to pay to the Commonwealth the amount stated in the notice.
Amount stated in notice
"(3) The amount stated in the notice is the recoverable amount and is worked out under subsections (4), (5) and (6).
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Person claiming compensation not member of couple
"(4) If the person claiming compensation is not a member of a couple, the recoverable amount is equal to the smallest of the following amounts:
(a) the sum of the youth training allowance payments payable to the person for the periodic payments period or the lump sum preclusion period;
(b) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;
(c) the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving:
(i) a preliminary notice under section 235 in relation to the
matter; or
(ii) if the compensation payer has not received a preliminary
notice-the recovery notice under this section in relation to the matter.
Person claiming compensation is member of couple and partner not getting pension or benefit
"(5) If:
(a) the person claiming compensation is a member of a couple; and
(b) the person's partner neither receives nor claims a compensation affected payment or a youth training allowance for the periodic payments period or the lump sum preclusion period;
the recoverable amount is equal to the smallest of the following amounts:
(c) the sum of the youth training allowance payments payable to the person for the periodic payments period or the lump sum preclusion period;
(d) the compensation part of the lump sum or the sum of the amounts of the periodic compensation payments;
(e) the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving:
(i) a preliminary notice under section 235 in relation to the
matter; or
(ii) if the compensation payer has not received a preliminary
notice-the recovery notice under this section in relation to the matter.
Person claiming compensation is member of couple and partner getting pension or benefit
"(6) If:
(a) the person claiming compensation is a member of a couple; and
(b) the person's partner receives or claims a compensation affected payment or a youth training allowance for the periodic payments period or the lump sum preclusion period;
the recoverable amount is equal to the smallest of the following amounts:
(c) the sum of:
(i) the youth training allowance payments payable to the person,
or to the person's partner, for the periodic payments period or the lump sum preclusion period; and
(ii) so much of the pension, benefit or allowance payable to the
person's partner under the Social Security Act for the periodic payments period or the lump sum preclusion period as has not been recovered under the provisions of the Social Security Act that correspond to this Division;
(d) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;
(e) the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving:
(i) a preliminary notice under section 235 in relation to the
matter; or
(ii) if the compensation payer has not received a preliminary
notice-the recovery notice under this section in relation to the matter.
Amounts to be reduced by notional FAS entitlement
"(7) If:
(a) subsection (1) applies to payments of youth training allowance paid to a person for a particular period (the'overpayment recovery period'); and
(b) the Secretary is satisfied that family allowance supplement would have been payable to the person's partner for some or all of the overpayment recovery period if:
(i) the person's partner had claimed family allowance supplement
for that period; and
(ii) neither the person nor the person's partner had been
receiving a social security pension, a social security benefit or a youth training allowance during that period;
the amount stated in the notice under subsection (1) is to be reduced by the notional FAS entitlement.
Meaning of 'notional FAS entitlement'
"(8) For the purposes of subsection (7), the'notional FAS entitlement' is the amount of family allowance supplement that the person's partner would, in the Secretary's opinion, have received during the overpayment recovery period if:
(a) the person's partner had claimed family allowance supplement for that
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period; and
(b) neither the person nor the person's partner had been receiving a social security pension, a social security benefit or a youth training allowance during that period.
Meaning of 'family allowance supplement'
"(9) In subsections (7) and (8):
'family allowance supplement' means family allowance supplement within the meaning of the Social Security Act 1991 as in force immediately before 1 January 1993.
Contents of notice
"(10) A notice under this section must contain a statement of the effect of section 240 so far as it relates to a recovery notice.
Application
"(11) This section applies to an amount payable by way of compensation in spite of any law of a State or Territory (however expressed) under which compensation is inalienable.
Preliminary notice or recovery notice suspends liability to pay compensation
"238. If a compensation payer has been given a preliminary notice under section 235 or a recovery notice under section 237 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.
Compensation payer's payment to Commonwealth discharges liability to compensation recipient
"239. Payment to the Commonwealth of an amount that a compensation payer is liable to pay under section 237 in relation to a person operates, to the extent of the payment, as a discharge of the compensation payer's liability to pay compensation to the person.
Offence to make compensation payment after receiving preliminary notice or recovery payment
Payer must not make payment
"240.(1) If a compensation payer has been given a preliminary notice under section 235 or a recovery notice under section 237 in relation to the payment of compensation to a person, the compensation payer must not intentionally or recklessly make the compensation payment to the person unless:
(a) in respect of a preliminary notice-the Secretary has given the compensation payer written notice that the preliminary notice is revoked; or
(b) in respect of a recovery notice-the compensation payer has paid to the Commonwealth the amount stated in the notice; or
(c) the Secretary has given the compensation payer written permission to pay the compensation.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.
Amounts liable to be paid
"(2) A compensation payer who contravenes subsection (1) is, in addition to being liable under subsection (1), liable to pay to the Commonwealth:
(a) if the contravention relates to a preliminary notice-an amount determined by the Secretary; and
(b) if the contravention relates to a recovery notice-the recoverable amount stated in the notice.
Amount determined by Secretary
"(3) The amount determined by the Secretary under paragraph (2)(a) must not be more than the smallest of the amounts worked out under:
(a) if the person is not a member of a couple-subsection 237(4); or
(b) if the person is a member of a couple-subsection 237(5) or (6), as the case may be.
Application
"(4) This section applies in relation to a payment by way of compensation in spite of any law of a State or Territory (however expressed) under which the compensation is inalienable.
"Subdivision E-Insurers
Secretary may send preliminary notice to insurer
Notice that Secretary may wish to recover amount
"241.(1) If:
(a) a person makes a claim against a potential compensation payer for
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compensation in respect of the person's lost earnings or lost capacity to earn; and
(b) the person receives or claims youth training allowance for any period to which the compensation relates; and
(c) the potential compensation payer's insurer, under a contract of insurance, may be liable to indemnify the potential compensation payer against any liability arising from the claim for compensation;
the Secretary may give written notice to the insurer stating that the Secretary may wish to recover an amount from the insurer.
Contents of notice
"(2) A notice under subsection (1) must contain:
(a) a statement of the insurer's obligation under section 242; and
(b) a statement of the effect of section 247 so far as it relates to a preliminary notice.
Insurer must tell Department of liability
"242. If an insurer:
(a) is given notice under section 241 in relation to a claim; or
(b) either before or after receiving the notice, becomes liable to indemnify the compensation payer, either wholly or partly, in relation to the claim;
the insurer must give to the Department of Social Security written notice of the liability within 7 days after:
(c) becoming liable; or
(d) receiving the notice;
whichever happens later.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.
Secretary may send recovery notice to insurer
Notice that Secretary proposes to recover amount
"243.(1) If:
(a) an insurer is liable, under a contract of insurance, to indemnify a compensation payer against any liability arising from a person's claim for compensation in respect of the person's lost earnings or lost capacity to earn; and
(b) the person receives or claims youth training allowance for the periodic payments period or the lump sum preclusion period;
the Secretary may give written notice to the insurer stating that the Secretary proposes to recover the amount stated in the notice from the insurer.
Insurer liable to pay Commonwealth
"(2) If an insurer is given notice under subsection (1), the insurer is liable to pay to the Commonwealth the amount stated in the notice.
Amount stated in notice
"(3) The amount stated in the notice is the recoverable amount and is worked out under subsections (4), (5) and (6).
Person not member of couple
"(4) If the person claiming compensation is not a member of a couple, the recoverable amount is equal to the smallest of the following amounts:
(a) the sum of the youth training allowance payments payable to the person for the periodic payments period or the lump sum preclusion period;
(b) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;
(c) the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving:
(i) a preliminary notice under section 241 in relation to the
matter; or
(ii) if the insurer has not received a preliminary notice-the
recovery notice under this section in relation to the matter.
Person claiming compensation is member of couple and partner not getting pension, benefit or allowance
"(5) If:
(a) the person claiming compensation is a member of a couple; and
(b) the person's partner neither receives nor claims a compensation affected payment or a youth training allowance for the periodic payments period or the lump sum preclusion period;
the recoverable amount is equal to the smallest of the following amounts:
(c) the sum of the youth training allowance payments payable to the person for the periodic payments period or the lump sum preclusion period;
(d) the compensation part of the lump sum payment or the sum of the amounts
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of the periodic compensation payments;
(e) the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving:
(i) a preliminary notice under section 241 in relation to the
matter; or
(ii) if the insurer has not received a preliminary notice-the
recovery notice under this section in relation to the matter.
Person claiming compensation is member of couple and partner getting pension, benefit or allowance
"(6) If:
(a) the person claiming compensation is a member of a couple; and
(b) the person's partner receives or claims a compensation affected payment or a youth training allowance for the periodic payments period or the lump sum preclusion period;
the recoverable amount is equal to the smallest of the following amounts:
(c) the sum of:
(i) the youth training allowance payments payable to the person,
or to the person's partner, for the periodic payments period or the lump sum preclusion period; and
(ii) so much of the pension, benefit or allowance payable to the
person's partner under the Social Security Act for the periodic payments period or the lump sum preclusion period as has not been recovered under the provisions of the Social Security Act that correspond to this Division;
(d) the compensation part of the lump sum payment or the sum of the amounts of the periodic compensation payments;
(e) the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving:
(i) a preliminary notice under section 241 in relation to the
matter; or
(ii) if the insurer has not received a preliminary notice-the
recovery notice under this section in relation to the matter.
Contents of notice
"(7) A notice under this section must contain a statement of the effect of section 246 so far as it relates to a recovery notice.
Preliminary notice or recovery notice to insurer suspends both insurer's and compensation payer's liability
"244. If an insurer has been given a preliminary notice under section 241 or a recovery notice under section 243 in relation to the insurer's liability, or possible liability, to indemnify a compensation payer against a liability arising from a claim for compensation:
(a) the insurer is not liable so to indemnify the compensation payer; and
(b) the compensation payer is not liable to pay that compensation;
while the notice has effect.
Insurer's payment to Commonwealth discharges liability
"245. Payment of an amount that an insurer is liable to pay to the Commonwealth under section 243 in relation to a person claiming compensation operates, to the extent of the payment, as a discharge of:
(a) the insurer's liability to the compensation payer; and
(b) the compensation payer's liability to pay compensation to the person.
Offence to make compensation payment after receiving preliminary notice or recovery notice
Insurer must not make payment
"246.(1) If an insurer has been given a preliminary notice under section 241 or a recovery notice under section 243 in relation to the insurer's liability to make a payment indemnifying a compensation payer, the insurer must not intentionally or recklessly make the payment to the compensation payer unless:
(a) in respect of a preliminary notice-the Secretary has given the insurer written notice that the preliminary notice is revoked; or
(b) in respect of a recovery notice-the insurer has paid to the Commonwealth the amount stated in the notice; or
(c) the Secretary has given the insurer written permission to make the payment to the compensation payer.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.
Liability to pay Commonwealth
"(2) An insurer who contravenes subsection (1) is, in addition to being liable under subsection (1), liable to pay to the Commonwealth:
(a) if the contravention relates to a preliminary notice-an amount
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determined by the Secretary; and
(b) if the contravention relates to a recovery notice-the recoverable amount stated in the notice.
Amount determined by Secretary
"(3) The amount determined by the Secretary under paragraph (2)(a) must not be more than the smallest of the amounts worked out under:
(a) if the person claiming compensation is not a member of a couple- subsection 243(4); or
(b) if the person claiming compensation is a member of a couple- subsection 243(5) or (6), as the case may be.
"Subdivision F-Miscellaneous
Secretary may give recovery notice either to compensation payer or to insurer but not to both
Notice to compensation payer in force
"247.(1) The Secretary is not to give a recovery notice to an insurer (under section 243) about a matter if there is a recovery notice to a compensation payer (under section 237) in force in relation to the same matter.
Notice to insurer in force
"(2) The Secretary is not to give a recovery notice to a compensation payer (under section 237) about a matter if there is a recovery notice to an insurer (under section 243) in force in relation to the same matter.

Secretary may disregard some payments
Special circumstances
"248.(1) For the purposes of this Division, the Secretary may treat the whole or a part of a compensation payment as:
(a) not having been made; or
(b) not liable to be made;
if the Secretary thinks it is appropriate to do so in the special circumstances of the case.
Partner in receipt of compensation
"(2) If:
(a) a person is qualified for a youth training allowance; and
(b) the person's partner receives compensation; and
(c) the set of circumstances giving rise to the compensation are not related to the set of circumstances that give rise to the person's qualification for the youth training allowance;
the fact that those 2 sets of circumstances are unrelated does not in itself constitute special circumstances for the purposes of subsection (1).
Note: Subsection (2) is in response to comments made in the decision of the Administrative Appeals Tribunal in Re Secretary, Department of Social Security and Lee (S92/155) to the effect that the Social Security Act is aimed at reducing pensions in situations where a social security recipient's entitlement is somehow connected with the fact that the recipient's partner is in receipt of compensation payments and not wages.
Division to bind Crown
"249. This Division binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.
"Division 13-Indexation
"Subdivision A-Preliminary
Analysis of Division
"250. This Division provides for:
(a) the indexation, in line with CPI (Consumer Price Index) increases, of the amounts in column 2 of the CPI Indexation Table at the end of section 252; and
(b) the adjustment of certain amounts of pharmaceutical allowance in line with the increases in the amounts indexed.
Indexed amounts
"251. The following table sets out:
(a) each amount that is to be indexed or adjusted under this Division; and
(b) the abbreviation (if any) used in this Division for referring to that amount; and
(c) the provision or provisions in which that amount is to be found.
INDEXED AMOUNTS TABLE
column 1
item column 2
description of amount
and abbreviation (if any) column 3
provisions in which amount
stated
1. Maximum basic rate of youth
training allowance
(abbreviated as'maximum

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basic rate') Table B in point B1 in MODULE B
in Schedule 1-column 3-all
amounts
2. Rent threshold rate Table DA in point D2 in MODULE
D in Schedule 1-column 3-all
amounts and Table DB in point D6
in MODULE D in Schedule 1-column
3-all amounts
3. Maximum rent assistance
rate Table DB in point D6 in MODULE D
in Schedule 1-column 4-all
amounts
4. Minimum non-independent
payment rate Step 7 in point A1 in MODULE A
in Schedule 1
5. Rate of pharmaceutical
allowance for a person who
is not a member of a couple
(abbreviated as'PA item 5
rate') Item 1 in Table C in point C5 in
MODULE C in Schedule 1-column 3
6. Rate of pharmaceutical
allowance for a person who
is partnered (abbreviated as
'PA item 6 rate') Item 2 in Table C in point C5 in
MODULE C in Schedule 1-column 3
7. Rate of pharmaceutical
allowance for a person who
is a member of an illness
separated couple or a
respite care couple
(abbreviated as'PA item
7 rate') Items 3 and 4 in Table C in
point C5 in MODULE C in Schedule
1-column 3
8. Rate of pharmaceutical
allowance for a person:
(a) who is a member of a
couple; and
(b) whose partner is
receiving a service
pension
(abbreviated as'PA item
8 rate') Item 5 in Table C in point C5 in
MODULE C in Schedule 1 -column 3
9. Rate of pharmaceutical
allowance for a person:
(a) who is a member of a
couple; and
(b) whose partner is in
gaol
(abbreviated as'PA item
9 rate') Item 6 in Table C in point C5 in
MODULE C in Schedule 1-column 3
"Subdivision B-Indexation
CPI Indexation Table
Amount to be indexed
"252.(1) An amount referred to in the following CPI Indexation Table below is to be indexed under this Subdivision on each indexation day for the amount, using the reference quarter and base quarter for the amount and indexation day and rounding off to the nearest multiple of the rounding base.
CPI INDEXATION TABLE
column 1 column 2 column 3 column 4 column 5 column 6
item amount indexation
day(s) reference
quarter
(most recent
before
indexation
day)
base quarter rounding
base
1. Maximum
basic rate 1 January June highest June
quarter before
reference
quarter (but
not earlier
than June
quarter 1986) $0.10

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2. Rent
threshold
rate (a) 20 March
(b) 20 September
(a) December
(b) June highest June
or December
quarter before
reference
quarter (but
not earlier
than June
quarter 1979) $0.20
3. Maximum
rent
assistance
rate (a) 20 March
(b) 20 September
(a) December
(b) June highest June
or December
quarter before
reference
quarter (but
not earlier
than June
quarter 1979) $0.20
4. Minimum
non-independent
payment
rate 1 January June highest June
quarter before
reference
quarter (but
not earlier
than June
quarter 1986) $0.05
5. PA item
6 rate and
PA item
8 rate 1 January September highest September
quarter before
reference
quarter (but
not earlier
than September
quarter 1991) $0.10

Highest quarter
"(2) A reference in the CPI Indexation Table to the highest of a group of quarters is a reference to the quarter in that group that has the highest index number.
Indexation of amounts
Indexed amount substituted
"253.(1) If an amount is to be indexed under this Division on an indexation day, this Part has effect as if the indexed amount were substituted for that amount on that day.
Method of working out indexed amount
"(2) This is how to work out the indexed amount for an amount that is to be indexed under this Subdivision on an indexation day:
Method statement
Step 1. Use section 254 to work out the indexation factor for the amount on the indexation day.
Step 2. Work out the current figure for the amount immediately before the indexation day.
Step 3. Multiply the current figure by the indexation factor: the result is the provisional indexed amount.
Step 4. Use section 255 to round off the provisional indexed amount: the result is the indexed amount.
Note: For 'current figure' see subsection 58(1).
First indexation of maximum basic rate
"(3) The first indexation of the amounts under items 1, 4 and 5 of the CPI indexation Table in subsection 252(1) is to take place on 1 January 1996.
Indexation facto "254.(1) Subject to subsections (2) and (3), the indexation factor for an amount that is to be indexed under this Division on an indexation day is the
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factor worked out to 3 decimal places using the following formula:
index number for most recent reference quarter
index number for base quarter
Note: For 'reference quarter' and'base quarter' see CPI Indexation Table in section 252.
Factor ending in number greater than 4
"(2) If an indexation factor worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the indexation factor is to be increased by 0.001.
Factor less than 1
"(3) If an indexation factor worked out under subsections (1) and (2) would be less than 1, the indexation factor is to be increased to 1.
Rounding off indexed amounts
Amount is multiple of rounding base
"255.(1) If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount.
Note 1: For 'provisional indexed amount' see Step 3 in subsection 253(2).
Note 2: For 'rounding base' see the CPI Indexation Table in section 252.
Amount not multiple of rounding base
"(2) Subject to subsections (3) and (4), if a provisional indexed amount is not a multiple of the rounding base, the indexed amount is the provisional indexed amount rounded up or down to the nearest multiple of the rounding base.
Amount is multiple of half rounding base
"(3) Subject to subsection (4), if a provisional indexed amount is not a multiple of the rounding base but is a multiple of half the rounding base, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of the rounding base.
Amount for pharmaceutical allowance or payment limit
"(4) If a provisional indexed amount for a pharmaceutical allowance rate is not a multiple of 10 cents, the indexed amount is the provisional indexed amount rounded down to the nearest multiple of 10 cents.
Adjustment of certain pharmaceutical rates
"256. This Part has effect as if, on 1 January 1996 and on 1 January in each later year, there were substituted for the PA item 5 rate, the PA item 7 rate and the PA item 9 rate the amount worked out using the formula:
Current PA item 6 rate x 2
where:
'Current PA item 6 rate' means the current figure, as at that 1 January, for the PA item 6 rate.
"Division 14-Miscellaneous
Application of asset and income test reductions and compensation reductions for income tax purposes
"257. If:
(a) the rate of a youth training allowance that applies to a person is increased under MODULE C (pharmaceutical allowance), or MODULE D (rent assistance), in Schedule 1; and
(b) the rate of the allowance is to be reduced under MODULE E (assets test), or MODULE G (ordinary income test), in Schedule 1 or under section 231 (compensation reduction provisions);
the reduction is to be applied:
(c) first, to the rate of the allowance apart from any increase referred to in paragraph (a); and
(d) secondly, to the amount of any increase under MODULE D; and
(e) finally, to the amount of any increase under MODULE C.
"Division 15-Overpayments and debt recovery
"Subdivision A-Effect of Division
General effect of Division
Recovery methods
"258.(1) This Division provides methods for recovery by the Commonwealth of:
(a) debts owed to the Commonwealth under Subdivision B; and
(b) assurance of support debts; and
(c) overpayments under certain other Acts or schemes; and
(d) debts incurred under other Acts for failing to repay part or all of the overpayments referred to in paragraph (c); and
(e) debts under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990.
Note 1: The debts owed to the Commonwealth under Subdivision B are:
. section 261 debts-debts arising under this Part;
. section 262 debts-debts arising from prepayments;

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. section 263 debts-debts arising from AAT stay orders;
. section 264 debts-debts arising from automatic termination
(transfer to social security pension or benefit) provisions;
. section 265 debts-automatic rate reductions because of
partner starting to receive allowance, pension or benefit;
. section 266 debts arising because of recipient's
contravention of Part;
. section 267 debts-person other than payee obtaining payment
of a cheque;
. section 268-debts arising from conviction of person for
involvement in contravention of Part by debtor;
. section 269 debts-Data-matching Program debts;
. section 270 debts-compensation debts;
. section 271 debts-compensation payer and insurer debts;
. section 272 debts-compensation arrears debts;
. section 275 debts-penalty interest debts;
. section 276 debts-penalty interest agreement debts;
. section 279 debts-garnishee notice debts.
Note 2: For 'assurance of support debt' see section 58.
Note 3: For overpayments under other Acts and schemes see section 274.
Available methods
"(2) The methods of recovery available for the various types of debt are set out in the following Table:
RECOVERY METHODS TABLE
column 1 column 2 column 3 column 4
item debt methods provision
1. 261
(debt arising under this Part) deductions
legal proceedings
garnishee notice 281
282
283
285
2. 262
(debt arising from prepayment) deductions
legal proceedings
garnishee notice 281
282
283
285
3. 263
(debt arising from AAT stay
order) deductions
legal proceedings
garnishee notice 281
282
283
285
4 264
(automatic termination
(transfer to social security
pension or benefit)) deductions
legal proceedings
garnishee notice 281
282
283
285
5. 265
(partner rate adjustment) deductions
legal proceedings
garnishee notice 281
282
283
285
6. 266
(contravention of Part) deductions
legal proceedings
garnishee notice 281
282
283
285
7. 267
(person other than payee
obtaining payment of a cheque) deductions
legal proceedings
garnishee notice 281
282
283
285

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8. 268
(conviction of person for
involvement in contravention
of Part by debtor) deductions
legal proceedings
garnishee notice 281
282
283
285
9. 269
(Data-matching Program debts) deductions
legal proceedings
garnishee notice 281
282
283
285
10. 270
(compensation debt) deductions
legal proceedings
garnishee notice 281
282
283
285
11. 271
(compensation payer and
insurer debts) legal proceedings 282
12. 272
(compensation arrears debt) deductions
legal proceedings
garnishee notice 281
282
283
285
13. 273
(assurance of support debt) deductions
legal proceedings
garnishee notice 281
282
283
285
14. 275
(penalty interest debt) deductions
legal proceedings
garnishee notice 281
282
283
285
15. 276
(penalty interest agreement
debt) deductions
legal proceedings
garnishee notice 281
282
283
285
16. 279
(garnishee notice debt)
legal proceedings
garnishee notice 282
283
Note: The Secretary may decide to allow a person to pay a debt in one or more instalments-see section 284.
Recovery of deductions
"(3) If a person:
(a) has (whether before or after the commencement of this Part) received an overpayment under certain other Acts or schemes; or
(b) has (whether before or after the commencement of this Part) incurred a debt under another Act for failing to repay part or all of such an overpayment;
the amount of the overpayment or debt may be recoverable by means of deductions from the person's youth training allowance.
Note: For deductions see section 281.
"Subdivision B-Amounts recoverable under this Part
Application overseas
"259. Sections 261, 266, 268, 270, 272, 273 and 274 extend to:
(a) acts, omissions, matters and things outside Australia, whether or not in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
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Debts due to the Commonwealth
"260. If an amount has been paid by way of youth training allowance under this Part, the amount is a debt due to the Commonwealth if, and only if, a provision of this Part or of the Data-matching Program (Assistance and Tax) Act 1990 expressly provides that it is.
Note: For the provisions of this Part that create debts due to the Commonwealth see sections 261, 262, 263, 264, 265, 266, 267, 268, 269, 270, 271, 272, 275 and 276.
Debts arising under this Part
Recipient not qualified for payment and amount not payable
"261.(1) Subject to subsection (2), if:
(a) an amount has been paid to a person by way of youth training allowance; and
(b) the person was not qualified for the payment and the amount was not payable to the person;
the amount so paid is a debt due to the Commonwealth.
Non-payability because of multiple entitlement exclusion provision
"(2) If:
(a) an amount has been paid to a person by way of youth training allowance; and
(b) the amount was not payable to the person because of subsection 89(2);
the amount so paid is a debt due to the Commonwealth.
Duplicate instalments
"(3) If:
(a) an amount has been paid to a person by way of an instalment of a youth training allowance; and
(b) another amount (the'later amount') is paid to the person in respect of the same instalment; and
(c) the later amount is not a payment of arrears; and
(d) the later amount would not otherwise be a debt due to the Commonwealth;
the later amount is a debt due to the Commonwealth.
Amount calculated using incorrect maximum payment rate-no youth training allowance payable
"(4) If:
(a) an amount (the'received amount') has been paid to a person by way of youth training allowance; and
(b) the youth training allowance is not payable to the person; and
(c) the received amount was calculated using a maximum payment rate that was greater than the maximum payment rate that would have been used if the youth training allowance were payable to the person;
the received amount is a debt due to the Commonwealth.
Note: A person's maximum payment rate is worked out by following the steps set out in the Method statement in MODULE A in Schedule 1.
Amount calculated using incorrect maximum payment rate-youth training allowance payable
"(5) If:
(a) an amount (the 'received amount') has been paid to a person by way of youth training allowance; and
(b) the received amount is more than the amount (the'correct amount') of the youth training allowance that was payable to the person; and
(c) the received amount was calculated using a maximum payment rate that was greater than the maximum payment rate that was used to calculate the correct amount;
the difference between the received amount and the correct amount is a debt due to the Commonwealth.
Note: A person's maximum payment rate is worked out by following the Steps set out in the Method statement in MODULE A in Schedule 1.
Amount calculated using remote area allowance/youth training allowance supplement-no remote area allowance or supplement payable
"(6) If:
(a) an amount has been paid to a person by way of youth training allowance; and
(b) the amount was calculated using:
(i) an amount of remote area allowance when an amount by way of
remote area allowance was not payable; or
(ii) an amount of youth training allowance supplement when a youth
training allowance supplement was not payable;
each of the following amounts is a debt due to the Commonwealth:
(c) the amount of remote area allowance;
(d) the amount of youth training allowance supplement.
Amount calculated using incorrect remote area allowance/youth training allowance supplement-remote area allowance or supplement payable

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"(7) If:
(a) an amount (the 'received amount') has been paid to a person by way of youth training allowance; and
(b) the received amount is more than the amount (the 'correct amount') of the youth training allowance that was payable to the person; and
(c) the received amount was calculated using:
(i) a rate of remote area allowance that was more that the remote
area allowance that was used to calculate the correct amount; or
(ii) an amount of youth training allowance supplement that was
greater than the rate of youth training allowance supplement that was used to calculate the correct amount;
the difference between the received amount and the correct amount is a debt due to the Commonwealth.
Methods of recovery
"(8) A debt due to the Commonwealth under this section is recoverable by the Commonwealth by means of:
(a) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For 'deductions' see sections 281 and 285.
Note 2: For 'legal proceedings' see section 282.
Note 3: For 'garnishee notice' see section 283.
Note 4: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Debts arising from prepayments
When prepayment is debt
"262.(1) If:
(a) a person has received a prepayment of youth training allowance for a period; and
(b) the person fails to provide a statement under section 150 in relation to the period;
the amount of the prepayment is a debt due to the Commonwealth.
Note: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Determination of Secretary
"(2) If the Secretary is satisfied that, in the special circumstances of the case, it is appropriate to do so, the Secretary may determine in writing that subsection (1) does not apply to the prepayment.
Calculation of debt
"(3) If:
(a) a person has received a prepayment of a youth training allowance for a period; and
(b) the amount of the prepayment is more than the amount (if any) (the'correct amount') of youth training allowance that would have been payable to the person if:
(i) the prepayment had not been made; and
(ii) the person had not made a false statement or false
representation in relation to matters that affect payment for the period; and
(iii) the person had not contravened this Part in relation to
matters that affect payment for the period; and
(c) subsection (1) does not apply to the prepayment;
the difference between the prepayment and the correct amount is a debt due to the Commonwealth.
Means of recovery
"(4) A debt due to the Commonwealth under subsection (1) or (3) is recoverable by the Commonwealth by means of:
(a) if the person is receiving youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.

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Note 3: For garnishee notice see section 283.
Meaning of prepayment
"(5) In this section:
'prepayment' means a payment under section 143 (prepayment because of public holiday etc.).
Debt arising from AAT stay orders
"263. If:
(a) a person applies to the Administrative Appeals Tribunal under section 324 for review of a decision; and
(b) the Administrative Appeals Tribunal makes an order under subsection 41(2) of the Administrative Appeals Tribunal Act 1975; and
(c) as a result of the order, the amount that has in fact been paid to the person by way of youth training allowance is more than the amount that was payable to the person;
the difference between the amount that was in fact paid to the person and the amount that was payable to the person is a debt due to the Commonwealth and recoverable by the Commonwealth by means of:
(d) if the person is receiving a youth training allowance-deductions from the person's payment; or
(e) if section 285 applies to another person who is receiving youth training allowance-deductions from the other person's payment; or
(f) legal proceedings; or
(g) garnishee notice.
Note 1: Subsection 43(6) of the Administrative Appeals Tribunal Act 1975 provides that the AAT's decision on the review will generally take effect from the day on which the SSAT's decision had effect. Since this is the case, the amount'payable' to the person during the stay period is the amount finally determined by the AAT as being payable and not the amount that was paid in accordance with the terms of the stay order.
Note 2: For deductions see sections 281 and 285.
Note 3: For legal proceedings see section 282.
Note 4: For garnishee notice see section 283.
Debts arising from automatic termination (transfer to social security pension or benefit)
"264. If:
(a) a youth training allowance ceases to be payable on a particular day because of section 152; and
(b) a payment of the youth training allowance is made on or after that day to the person to whom it was previously payable;
the payment is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of:
(c) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(d) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(e) legal proceedings; or
(f) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.
Note 3: For garnishee notice see section 283.
Note 4: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Debt arising from automatic rate reductions because of partner starting to receive allowance, pension or benefit
"265. If:
(a) a person's youth training allowance rate is reduced as from a particular date under section 156; and
(b) payments of the youth training allowance are made on or after that day at a rate that does not take account of the reduction;
so much of the payments as is greater than the payments that would have been made if the payments had been made at the correct rate is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of:
(c) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(d) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(e) legal proceedings; or
(f) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.
Note 3: For garnishee notice see section 283.

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Note 4: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Debts arising from recipient's contravention of Part
When amount is debt due
"266.(1) If:
(a) an amount has been paid to a person by way of youth training allowance under this Part; and
(b) the amount was paid because the person or another person:
(i) made a false statement or a false representation; or
(ii) contravened this Part;
the amount so paid is a debt due by the first-mentioned person to the Commonwealth.
Note: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Methods of recovery
"(2) A debt due to the Commonwealth under subsection (1) is recoverable by the Commonwealth by means of:
(a) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.
Note 3: For garnishee notice see section 283.
Person other than payee obtaining payment of a cheque
When amount is debt due
"267.(1) If:
(a) an instalment of a youth training allowance is paid by cheque; and
(b) a person other than the payee obtains possession of the cheque from the payee; and
(c) the cheque is not endorsed by the payee to the person; and
(d) the person obtains value for the cheque;
the amount of the cheque is a debt due by the person to the Commonwealth.
Methods of recovery
"(2) A debt due to the Commonwealth under this section is recoverable by the Commonwealth by means of:
(a) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings;
(d) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.
Note 3: For garnishee notice see section 283.
Debts arising from conviction of person for involvement in contravention of Part by debtor
Liability
"268.(1) If:
(a) a person is liable to pay a debt under section 266 because the person contravened this Part; and
(b) another person is convicted of an offence under section 5, 7A or 86 of the Crimes Act 1914 in relation to the contravention;
the first-mentioned person and the other person are jointly and severally liable to pay the debt.
Note 1: Subsection (1) does not create a new debt. It extends liability for a debt that has already arisen under section 266 to a person who is convicted of certain offences.
Note 2: In recovering a debt, regard may be had to any view expressed by a court as to the responsibility of a person to pay the debt.
Methods of recovery
"(2) A debt that arises under section 266 for which a person is liable because of subsection (1) is recoverable by the Commonwealth by means of:
(a) if the person is receiving youth training allowance-deductions from the
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person's youth training allowance; or
(b) if section 285 applies to another person who is receiving youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.
Note 3: For garnishee notice see section 283.
Data-matching Program (Assistance and Tax) Act debts
"269. If:
(a) an amount has been paid to a person by way of a youth training allowance; and
(b) the amount is a debt due to the Commonwealth under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990;
the amount so paid is recoverable by the Commonwealth by means of:
(c) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(d) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(e) legal proceedings; or
(f) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.
Note 3: For garnishee notice see section 283.
Note 4: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Compensation debts
"270. If a person is liable to pay a compensation debt, that debt is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of:
(a) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For 'compensation debt' see section 23 of the Social Security Act.
Note 2: For deductions see sections 281 and 285.
Note 3: For legal proceedings see section 282.
Note 4: For garnishee notice see section 283.
Note 5: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Compensation payer and insurer debts
"271. If a person is liable to pay an amount to the Commonwealth because of:
(a) a notice by the Secretary under section 237 (compensation payer); or
(b) a notice by the Secretary under section 243 (insurer);
the amount is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of legal proceedings.
Compensation arrears debts
"272. If a person is liable to pay a compensation arrears debt, that debt is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of:
(a) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For 'compensation arrears debt' see subsection 23(1) of the Social Security Act.
Note 2: For deductions see sections 281 and 285.
Note 3: For legal proceedings see section 282.
Note 4: For garnishee notice see section 283.
Note 5: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section
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276).
Assurance of support debts
"273. If a person is liable to pay an assurance of support debt, the debt is recoverable by the Commonwealth by means of:
(a) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For 'assurance of support debt' see section 58.
Note 2: For deductions see sections 281 and 285.
Note 3: For legal proceedings see section 282.
Note 4: For garnishee notice see section 283.
Note 5: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Overpayments and debts arising under other Acts and schemes
Overpayment or debt recoverable by deductions
"274.(1) If:
(a) an amount has, whether before or after the commencement of this Part, been paid to a person by way of a payment or payments to which subsection (2) applies but the amount should not have been paid; or
(b) a person owes:
(i) a debt referred to in paragraph (b) of the definition
of'student assistance overpayment' in subsection 3(1); or
(ii) a debt referred to in section 79 of the Child Support
(Registration and Collection) Act 1988; and the person is receiving a youth training allowance:
(c) for which the person is qualified; and
(d) which is payable to the person;
the amount or debt, as the case may be, is taken to be an overpayment that is recoverable by the Commonwealth by means of deductions.
Note: For 'deductions' see section 281.
Payments covered
"(2) This subsection applies to:
(a) a payment, or an advance payment, of pension, benefit or allowance under the Social Security Act; or
(b) a payment of pension or allowance under the Veterans' Entitlements Act; or
(c) a payment of pension or allowance under the Seamen's War Pensions and Allowances Act 1940; or
(d) a payment under:
(i) the AUSTUDY Scheme; or
(ii) the ABSTUDY Schooling Scheme; or
(iii) the ABSTUDY Tertiary Scheme (to the extent that it applies
to full-time students); or
(iv) the Assistance for Isolated Children Scheme; or
(v) the Veterans' Children Education Scheme; or
(vi) the former Post-Graduate Awards Scheme; or
(vii) the Adult Migrant Education Program Living Allowance; or
(viii) the Maintenance Allowance for Refugees; or
(ix) the English as a Second Language Allowance (to the extent
that it applies to full-time students); or
(e) if the amount was paid to the person on or after 12 August 1988-a payment under a program included in the programs known as Labour Force Programs.
Note: Labour Force Programs are administered by the Department and provide income support for people undertaking various kinds of vocational training.
Interest payable on debt for failure to enter agreement to pay debt
Debt recovery from non-youth training allowance recipients
"275.(1) If:
(a) a person is not receiving a youth training allowance; and
(b) the person owes a debt to the Commonwealth under this Division; and
(c) the Secretary has given the person a notice asking the person to pay the debt; and
(d) at the end of 3 months after the day on which the notice was given, the person:
(i) has not entered into negotiations to pay the debt; or
(ii) has entered into negotiations to pay the debt, but has not
entered into an agreement to pay the debt by reasonable instalments;
the Secretary may give the person a notice telling the person the following:
(e) the amount of the debt;

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(f) that, unless the person, within 14 days after the notice is given:
(i) pays the whole of the debt; or
(ii) enters into an agreement to pay the debt by reasonable
instalments;
interest may become payable on the debt;
(g) how any interest that becomes payable is to be calculated.
Interest payable
"(2) Subject to subsection (3), if:
(a) the whole of the debt is not paid within 14 days after the person is given the notice; or
(b) the person does not enter into an agreement to pay the debt within the 14 day period;
interest is payable by way of penalty on the debt by the person and the amount of the interest is to be worked out under subsection (4).
Intention to pay debt
"(3) The Secretary may determine that interest is not payable on the debt if the Secretary is satisfied that the person intends to pay the debt as soon as is reasonably practicable having regard to the person's circumstances.
Interest payable
"(4) Interest is payable on the amount of the debt (excluding interest) that remains due from time to time:
(a) on and from the day after the 14 day period ends; and
(b) at the penalty interest rate.
Note: For penalty interest rate see section 277.
Payments in satisfaction of debt and interest
"(5) If:
(a) interest is payable on the debt; and
(b) an amount is paid for the purpose of paying the debt and the interest;
the amount so paid is to be applied as follows:
(c) until the debt (excluding interest) is fully paid-in satisfaction of the amount of the debt that is due when the payment is made;
(d) after the debt (excluding interest) is fully paid-in satisfaction of the interest that had become payable on the debt before the debt was fully paid.
Interest ceases to be payable if agreement entered into
"(6) If a person enters into an agreement to pay the debt by reasonable instalments, interest that would, apart from this subsection, become payable on the debt on and from the day on which the agreement is entered into is not payable.
Interest not payable during garnishee notice period if 2 or more payments made
"(7) If 2 or more payments are made in reduction of the debt in compliance with a garnishee notice under subsection 283(1), interest that would, apart from this subsection, become payable on the debt during the garnishee notice period is not payable.
Interpretation
"(8) In this section:
'garnishee notice period' means the period that begins on the day the first payment is made in compliance with a garnishee notice and ends on the day on which the last payment is made in compliance with that notice (whether or not the debt is satisfied).
Methods of recovery
"(9) The interest that is payable on the debt is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of:
(a) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.
Note 3: For garnishee notice see section 283.
Interest payable on debt for breach of agreement to pay debt
Interest applies if debt not repaid
"276.(1) If:
(a) a person is not receiving a youth training allowance; and
(b) the person owes:
(i) a debt to the Commonwealth under this Division; or
(ii) an assurance of support debt; and
(c) the person enters into an agreement to pay the debt by reasonable
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instalments; and
(d) the person does not pay an instalment;
the Secretary may give the person a notice telling the person the following:
(f) the amount of the debt; (g) that, unless the person pays the instalment within 14 days after the notice is given, interest may become payable on the debt;
(h) how any interest that becomes payable is to be calculated.
Interest payable
"(2) Subject to subsections (3) and (4), if the instalment is not paid within 14 days after the person is given the notice, interest is payable by way of penalty on the debt by the person and the amount of interest is to be worked out under subsection (5).
Intention to pay debt
"(3) The Secretary may determine that interest is not payable on the debt if the Secretary is satisfied that the person intends to pay the instalment as soon as is reasonably practicable having regard to the person's circumstances.
Interest ceases to accrue
"(4) Interest payable under subsection (2) stops accruing on and from the day the person:
(a) next pays the instalment due under an agreement; or
(b) enters into a new agreement;
whichever first occurs.
Interest payable
"(5) Interest is payable on the amount of the debt (excluding interest) that remains due from time to time:
(a) on and from the day after the 14 day period ends; and
(b) at the penalty interest rate.
Note: For penalty interest rate see section 277.
Payments in satisfaction of debt and interest
"(6) If:
(a) interest is payable on the debt; and
(b) an amount is paid for the purpose of paying the debt and the interest;
the amount so paid is to be applied as follows:
(c) until the debt (excluding interest) is fully paid-in satisfaction of the amount of the debt that is due when the payment is made;
(d) after the debt (excluding interest) is fully paid-in satisfaction of the interest that had become payable on the debt before it was fully paid.
Methods of recovery
"(7) The interest that is payable on the debt is a debt due to the Commonwealth and is recoverable by the Commonwealth by means of:
(a) if the person is receiving a youth training allowance-deductions from the person's youth training allowance; or
(b) if section 285 applies to another person who is receiving a youth training allowance-deductions from the other person's youth training allowance; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For deductions see sections 281 and 285.
Note 2: For legal proceedings see section 282.
Note 3: For garnishee notice see section 283.
Penalty interest rate
Rate of penalty interest
"277.(1) The penalty interest rate is:
(a) 20% a year; or
(b) if a lower rate is determined under subsection (2)-that lower rate.
Minister may lower penalty interest rate
"(2) The Minister may from time to time determine in writing a rate of less than 20% a year that is to be the penalty interest rate for the purposes of sections 275 and 276.
Status of determination
"(3) A determination under subsection (2) is a disallowable instrument.
Note: For 'disallowable instrument' see subsection 23(1) of the Social Security Act.
Guidelines on the penalty interest charge scheme
Issue of guidelines
"278.(1) The Minister must, as soon as practicable after the commencement of this Part, and afterwards from time to time, determine in writing guidelines for the operation of the provisions of this Part dealing with Penalty Interest Charge.

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Status of determination
"(2) A determination under subsection (1) is a disallowable instrument.
Note: For 'disallowable instrument' see subsection 23(1).
Debt from failure to comply with garnishee notice
Amount recoverable from garnishee debtor
"279.(1) If:
(a) a person (the 'garnishee debtor') is given a notice under section 283 in respect of a debt due by another person (the 'original debtor') under this Part; and
(b) the garnishee debtor fails to comply with the notice to the extent that he or she is capable of complying with it;
then the amount of the debt outstanding (worked out under subsection (2)) is recoverable from the garnishee debtor by the Commonwealth by means of:
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For legal proceedings see section 282.
Note 2: For garnishee notice see section 283.
Note 3: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).
Meaning of 'amount of the debt outstanding'
"(2) The amount of the debt outstanding is the amount equal to:
(a) as much of the amount required by the notice under section 283 to be paid by the garnishee debtor as the garnishee debtor was able to pay; or
(b) as much of the debt due by the original debtor when the notice was given as remains due from time to time;
whichever is the less.
Recovery of debt due by garnishee debtor and by other person
"(3) If the Commonwealth recovers:
(a) the whole or a part of the debt due by the garnishee debtor under subsection (1); or
(b) the whole or a part of the debt due by the original debtor;
then:
(c) both debts are reduced by the amount that the Commonwealth has so recovered; and
(d) the amount stated in the notice under section 283 is to be taken to be reduced by the amount so recovered.
Application
"(4) This section applies to an amount in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.
Meaning of 'person'
"(5) In this section:
'person' includes:
(a) the Commonwealth; and
(b) a State; and
(c) a Territory; and
(d) any authority of the Commonwealth or of a State or Territory.
"Subdivision C-Methods of recovery
Application of sections dealing with deductions
"280. Sections 281 and 285 provide for debt recovery by deductions in the following situations:
(a) section 281-debt recovery from person who incurred the debt;
(b) section 285-debt recovery by consent from person other than debtor.
Deductions from debtor's allowance
Method of making deduction
"281.(1) Subject to subsection (2), each of the following debts or overpayments (whether, in the case of paragraphs (b) to (e), incurred or arising before or after the commencement of this Part):
(a) a debt under this Part;
(b) a debt referred to in paragraph 274(1)(b);
(c) an overpayment arising under an Act or scheme referred to in subsection 274(2); or
(d) a debt incurred under an Act or scheme for failing to repay part or all of a debt referred to in paragraph (b) or an overpayment referred to in paragraph (c);
(e) a debt under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990;
is to be deducted from a person's youth training allowance in the following way:
Method statement
Step 1. Take the amount, decided under subsection (2), by which each payment
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of the person's youth training allowance is to be reduced.
Step 2. Each payment of the person's youth training allowance is to be reduced by that amount, until the sum of those amounts is equal to the debt or overpayment.
Secretary to decide amount of reduction
"(2) The Secretary is to decide in each case the amount by which each payment of the person's youth training allowance is to be reduced, and may vary the amount from time to time.
Overpayment must be deducted
"(3) Subject to subsections (4) to (8), the debt or overpayment must be deducted unless:
(a) the Secretary takes action under Subdivision D (write off and waiver) in relation to the amount; or
(b) the amount is recovered by the Commonwealth under another provision of this Division.
Limitation period generally
"(4) Subject to subsections (5), (6), (7) and (8), action under this section for the recovery of a debt or overpayment is not to be begun after the end of the period of 6 years starting on the day on which the debt or overpayment arose.
Limitation period for certain debts
"(5) If the debt arose under section 266 of this Act (debt due to contravention of this Part) or under section 1224 of the Social Security Act, action under this section for the recovery of the debt may be begun at any time within the period of 6 years starting on the first day on which an officer became aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.
Note 1: The time limit in subsection (5 ) also applies to action for recovery against a person who is liable because of section 268 for a debt that arises under section 266.
Note 2: For 'officer' see subsection 58(1).
Amount owing paid
"(6) If:
(a) subsection (4) or (5) applies so that action under this section for the recovery of a debt or overpayment must be begun within a particular period; and
(b) within that period part of the amount owing is paid;
action under this section for the recovery of the balance of the debt or overpayment may be begun within the period of 6 years starting on the day of payment.
Debt acknowledged
"(7) If:
(a) subsection (4) or (5) applies so that action under this section for the recovery of a debt or overpayment must be begun within a particular period; and
(b) within that period, the person who owes the amount acknowledges that he or she owes it;
action under this section for the recovery of the debt or overpayment may be begun within the period of 6 years starting on the day of acknowledgment.
Certain actions, review, activity occurring
"(8) If:
(a) subsection (4) or (5) applies so that action under this section for the recovery of a debt or overpayment must be begun within a particular period; and
(b) within that period:
(i) action is taken under this section or section 282 (legal
proceedings) or 283 (garnishee notice) for the recovery of the debt or overpayment; or
(ii) a review of a file relating to action for the recovery of the
debt or overpayment occurs; or
(iii) other internal activity in the Department of Social Security
relating to action for the recovery of the debt or overpayment occurs;
action under this section for the recovery of the debt or overpayment may be begun within the period of 6 years after the end of the activity or action referred to in paragraph (b).
Legal proceedings
Debt recoverable in court of competent jurisdiction
"282.(1) If a debt is recoverable by the Commonwealth by means of legal proceedings under Subdivision B, the debt is recoverable by the Commonwealth in a court of competent jurisdiction.
Time limit of 6 years

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"(2) Subject to subsection (3), (4), (5) or (6), legal proceedings for the recovery of the debt are not to be begun after the end of the period of 6 years starting on the day on which the debt arose.
Debt due to contravention of Part
"(3) If the debt arises under section 266 (debt due to contravention of Part), legal proceedings for the recovery of the debt may be begun at any time within the period of 6 years starting on the first day on which an officer became aware, or could reasonably be expected to have become aware, of the circumstances giving rise to the debt.
Note 1: For 'officer' see subsection 58(1).
Note 2: The time limit in subsection (3) also applies to legal proceedings for recovery against a person who is liable because of section 268 for a debt that arises under section 266.
Amount owing if paid
"(4) If:
(a) subsection (2) or (3) applies so that legal proceedings for the recovery of a debt must be begun within a particular period; and
(b) within that period part of the amount owing is paid;
legal proceedings for the recovery of the balance of the debt may be begun within the period of 6 years starting on the day of payment.
Debt acknowledged
"(5) If:
(a) subsection (2) or (3) applies so that legal proceedings for the recovery of a debt must be begun within a particular period; and
(b) within that period, the person who owes the amount acknowledges that he or she owes it;
legal proceedings for the recovery of the debt may be begun within the period of 6 years starting on the day of acknowledgment.
Action taken, review or other activity occurs
"(6) If:
(a) subsection (2) or (3) applies so that action under this section for the recovery of a debt must be begun within a particular period; and
(b) within that period:
(i) action is taken under this section or section 281 (deductions)
or 283 (garnishee notice) for the recovery of the debt; or
(ii) a review of a file relating to action for the recovery of the
debt occurs; or
(iii) other internal activity in the Department of Social Security
relating to action for the recovery of the debt occurs;
action under this section for the recovery of the debt may be begun within the period of 6 years after the end of the activity or action referred to in paragraph (b).
Garnishee notice
Secretary may give notice
"283.(1) If a debt is recoverable from a person (the 'debtor') by the Commonwealth under section 261, 262, 263, 264, 265, 266, 267, 268, 269, 270, 271, 272, 273 or 279, the Secretary may by written notice given to another person:
(a) by whom any money is due or accruing, or may become due, to the debtor; or
(b) who holds or may later hold money for or on account of the debtor; or
(c) who holds or may later hold money on account of some other person for payment to the debtor; or
(d) who has authority from some other person to pay money to the debtor;
require the person to whom the notice is given to pay to the Commonwealth:
(e) an amount stated in the notice that is not more than the amount of the debt or the amount of the money referred to in paragraph (d) that applies; or
(f) an amount stated in the notice out of each payment that the person becomes liable from time to time to make to the debtor until that debt is satisfied; or
(g) a percentage stated 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.
Time for making payment
"(2) The time for making a payment in compliance with a notice under subsection (1) is the time stated in the notice, but the time so stated must not be a time before the money concerned becomes due or is held or before the end of the period of 14 days after the notice is given.
Failure to comply with notice
"(3) A person must comply with a notice under subsection (1) to the extent that the person is capable of doing so.
Penalty: Imprisonment for 12 months.

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Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.
Note 2: See also section 279 (consequence of failure to comply with notice under this section).
Copy of notice to be given to debtor
"(4) If the Secretary gives a notice to a person under subsection (1), the Secretary must give a copy of the notice to the debtor.
Payment under debtor's authority
"(5) A person who makes a payment to the Commonwealth in compliance with a notice under subsection (1) is taken to have made the payment under the authority of the debtor and of any other person concerned.
Amount paid by another person
"(6) If:
(a) a notice is given to a person under subsection (1) in respect of a debt due; and
(b) an amount is paid by another person in reduction or in satisfaction of the debt;
the Secretary must notify the first-mentioned person accordingly, and the amount stated in the notice is to be taken to be reduced by the amount so paid.
Fulfilment of condition
"(7) If, apart from this subsection, money is not due or repayable on demand to a person unless a condition is fulfilled, the money is taken, for the purposes of this section, to be due or repayable on demand, as the case may be, even though the condition has not been fulfilled.
Limitation period generally
"(8) Subject to subsections (9), (10), (11) and (12), action under this section for the recovery of a debt is not to be begun after the end of the period of 6 years starting on the day on which the debt arose.
Limitation for certain periods
"(9) If the debt arose under section 266 (debt due to contravention of this Part), action under this section for the recovery of the debt may be begun at any time within the period of 6 years starting on the first day on which an officer became aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.
Note 1: For 'officer' see subsection 58(1).
Note 2: The time limit in subsection (9) also applies to action for recovery against a person who is liable because of section 268 for a debt that arises under section 266.
Amount owing paid
"(10) If:
(a) subsection (8) or (9) applies so that action under this section for the recovery of a debt must be begun within a particular period; and
(b) within that period part of the amount owing is paid;
action under this section for the recovery of the balance of the debt may be begun within the period of 6 years starting on the day of payment.
Debt acknowledged
"(11) If:
(a) subsection (8) or (9) applies so that action under this section for the recovery of a debt must be begun within a particular period; and
(b) within that period, the person who owes the amount acknowledges that he or she owes it;
action under this section for the recovery of the debt may be begun within the period of 6 years starting on the day of acknowledgment.
Certain actions, review, activity occurred
"(12) If:
(a) subsection (8) or (9) applies so that action under this section for the recovery of a debt must be begun within a particular period; and
(b) within that period:
(i) action is taken under this section, section 281 (deductions)
or 282 (legal proceedings) for the recovery of the debt; or
(ii) a review of a file relating to action for the recovery of the
debt occurs; or
(iii) other internal activity in the Department of Social Security
relating to action for the recovery of the debt occurs;
action under this section for the recovery of the debt may be begun within the period of 6 years after the end of the activity or action referred to in
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paragraph (b).
Application
"(13) This section applies to money in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.
Meaning of 'person'
"(14) In this section:
'person' includes:
(a) the Commonwealth; and
(b) a State; and
(c) a Territory; and
(d) any authority of the Commonwealth or of a State or Territory.
Secretary may allow payment of debt by instalments
Payment by instalment
"284.(1) If a debt is recoverable by the Commonwealth under Subdivision B, the Secretary may, on behalf of the Commonwealth, decide to allow a person to pay the debt in one or more instalments.
When decision takes effect
"(2) A decision made under subsection (1) takes effect:
(a) if no day is stated in the decision-on the day on which the decision is made; or
(b) if a day is stated in the decision-on the day so stated (whether that day is before, after or on the day on which the decision was made).
Note: Overpayments and debts referred to in section 274 are not debts for the purposes of Subdivision B.
Deductions by consent from allowance of person who is not the debtor
Secretary may deduct amount from allowance
"285.(1) If:
(a) a person (the 'debtor') has, whether before or after the commencement of this section, incurred a debt under this Act, the Social Security Act, the Data-matching Program (Assistance and Tax) Act 1990, the Social Security Act 1947 or the Farm Household Support Act 1992; and
(b) another person (the 'consenting person') is receiving a youth training allowance; 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 youth training allowance;
the Secretary may deduct the amount from the consenting person's youth training allowance.
Reduction of debt
"(2) The debtor's debt is reduced by an amount equal to the amount deducted from the consenting person's youth training allowance.
Revocation of consent
"(3) The consenting person may revoke the consent at any time.
"Subdivision D-Non-recovery of debts
Meaning of 'debt'
"286. In this Subdivision, unless the contrary intention appears:
'debt' means a debt recoverable by the Commonwealth under Subdivision B.
Note: Overpayments and debts referred to in section 274 are not debts for the purposes of Subdivision B.
Secretary may write off debt
Writing off debt
"287.(1) The Secretary may, on behalf of the Commonwealth, decide to write off a debt.
Class of debts
"(2) The Secretary may, on behalf of the Commonwealth, decide to write off debts arising under or as a result of this Part that are included in a class of debts determined by the Minister by notice published in the Gazette.
When decision takes effect
"(3) A decision made under subsection (1) or (2) takes effect:
(a) if no day is stated in the decision-on the day on which the decision is made; or
(b) if a day is stated in the decision-on the day so stated (whether that day is before, after or on the day on which the decision is made).
Note: If the Secretary writes off a debt, this means an administrative decision has been made that, in the circumstances, there is no point in trying to recover the debt. In law, however, the debt still exists and may later be pursued.
Application

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"288. Sections 289 and 290 apply to all debts, whenever incurred, that are owed to the Commonwealth and arise under this Part.
Waiver of whole of a debt
Waiver of debt
"289.(1) The Secretary may, on behalf of the Commonwealth, decide to waive the Commonwealth's rights to recover the whole of a debt from a person but only in accordance with this section.
Administrative error
"(2) The Secretary must waive if:
(a) the debt arose solely because of an administrative error made by the Commonwealth; and
(b) the person received in good faith the payment or payments that gave rise to the debt.
Conviction of offence
"(3) The Secretary must waive if:
(a) a person is convicted of an offence; and
(b) in sentencing, the court stated that it imposed a longer custodial sentence on the person because the person was unable or unwilling to pay the debt.
Valuing property
"(4) The Secretary must waive if:
(a) the debt arose because the person or the person's partner underestimated the value of particular property of the person or partner; and (b) the estimate was made in good faith; and
(c) the value of the property could not easily be determined when the estimate was made.
Debts less than $200
"(5) The Secretary must waive if:
(a) the debt is, or is likely to be, less than $200; and
(b) it is not cost effective for the Commonwealth to take action to recover the debt.
Date of effect of decision
"(6) A decision under subsection (1) takes effect:
(a) if no day is stated in the decision-on the day on which the decision is made; or
(b) if a day is stated in the decision-on the day so stated (whether that day is before, after or on the day on which the decision is made).
Note: If the Secretary waives the Commonwealth's right to recover, this is a permanent bar to recovery of the debt-the debt effectively ceases to exist.
Waiver of part of a debt Decision of Secretary
"290.(1) The Secretary may, on behalf of the Commonwealth, decide to waive the Commonwealth's right to recover a part of a debt from a person but only in accordance with this section.
Settlement of civil action
"(2) If the Commonwealth has agreed to settle a civil action against the person for recovery of the debt for less than the full amount of the debt, the Secretary must waive the difference between the debt and the amount that is the subject of the settlement.
Recovery of part of debt in full satisfaction for whole of debt
"(3) If:
(a) the Commonwealth has recovered at least 80% of the original value of the debt from the person; and
(b) the Commonwealth and the person agree that the recovery is in full satisfaction of the whole of the debt; and
(c) the person does not have the capacity to repay a greater proportion of the debt;
the Secretary must waive the remaining 20% or less of the value of the original debt.
Date of effect of decision
"(4) A decision of the Secretary under subsection (1) takes effect:
(a) if no day is stated in the decision-on the day on which the decision is made; or
(b) if a day is stated in the decision-on the day so stated (whether that day is before, after or on the day on which the decision is made).
Note: If the Secretary waives the Commonwealth's right to recover, this is a permanent bar to recovery of part of the debt-the waived part of the debt effectively ceases to exist.
Determination that penalty interest not payable in relation to particular periods

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Secretary determines interest payable
"291.(1) The Secretary may, in writing, determine that interest payable by a person in respect of a certain period under subsection 275(2) or 276(2) is not payable.
Time of determination
"(2) The determination may relate to a period before the making of the determination.
Conditions
"(3) The determination may be expressed to be subject to the person complying with stated conditions.
Notification
"(4) The Secretary must give a copy of the determination to the person as soon as practicable after making the determination.
Validity
"(5) A failure to comply with subsection (4) does not invalidate the determination.
Contravention of conditions
"(6) If:
(a) the determination is expressed to be subject to the person complying with stated conditions; and
(b) the person contravenes a condition;
the determination ceases to have effect.
Cancellation or variation
"(7) The Secretary may cancel or vary the determination by written notice to the person.
"Division 16-Miscellaneous
"Subdivision A-Offences
Operation of Subdivision
"292. This Subdivision extends to:
(a) acts, omissions, matters and things outside Australia, whether or not in a foreign country; and
(b) all people, irrespective of their nationality, who are making or who have made, a claim for a youth training allowance; and
(c) all people, irrespective of their nationality, who are receiving or have received, a payment of a youth training allowance.
Note: This Subdivision does not contain an exhaustive list of all offences against this Part.
False statement in connection with claims
Person must not make false or misleading statement
"293.(1) A person must not knowingly or recklessly make a false or misleading statement in connection with, or in support of, the person's, or any other person's, claim for a youth training allowance.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.
Spoken or written statement
"(2) The statement referred to in subsection (1) may be a spoken statement or a written statement.
False statement-to deceive or to affect rates
Person must not make false or misleading statement
"294.(1) A person must not knowingly or recklessly make a false or misleading statement to:
(a) deceive an officer doing duty in relation to this Part; or
(b) affect the rate of a youth training allowance.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.
Spoken or written statement
"(2) The statement referred to in subsection (1) may be a spoken statement or a written statement.

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False statement or document
Offence
"295.(1) A person must not knowingly or recklessly:
(a) make a statement to an officer that is false in any particular; or
(b) present a document to an officer that is false in any particular.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.
Spoken or written statement
"(2) The statement referred to in subsection (1) may be a spoken statement or a written statement.
Payment knowingly obtained if not payable
"296. A person must not knowingly obtain:
(a) payment of a youth training allowance; or
(b) payment of an instalment of a youth training allowance;
that is:
(c) not payable at all; or
(d) only payable in part.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.
Payment knowingly obtained through fraud etc.
"297. A person must not knowingly obtain:
(a) payment of a youth training allowance; or
(b) payment of an instalment of a youth training allowance;
by means of:
(c) a false or misleading statement made knowingly or recklessly; or
(d) pretending to be someone else;
(e) a fraudulent device.
Penalty: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.
Conduct by directors, servants or agents
State of mind of corporation
"298.(1) If, in proceedings for an offence against this Part, it is necessary to prove the state of mind of a body corporate in relation to particular conduct, it is enough to show:
(a) that the conduct was engaged in by a director, servant or agent of the body corporate within the scope of his or her actual or apparent authority; and
(b) that the director, servant or agent had the state of mind.
Conduct of directors, servants or agents of corporation
"(2) Any conduct engaged in on behalf of a body corporate by a director, servant or agent of the body corporate within the scope of his or her actual or apparent authority is taken, for the purposes of a prosecution for an offence against this Part, to have been engaged in also by the body corporate unless it proves that it took reasonable precautions and exercised due diligence to avoid the conduct.
State of mind of individual
"(3) If, in proceedings for an offence against this Part, it is necessary to prove the state of mind of an individual in relation to particular conduct, it is enough to show:
(a) that the conduct was engaged in by a servant or agent of the individual within the scope of his or her actual or apparent authority; and
(b) that the servant or agent had the state of mind.
Conduct of servants or agents of individual
"(4) Any conduct engaged in on behalf of an individual by a servant or agent of the individual within the scope of his or her actual or apparent authority is taken, for the purposes of a prosecution for an offence against this Part, to have been engaged in also by the individual unless he or she proves that he or she took reasonable precautions and exercised due diligence to avoid the
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conduct.
Individual not subject to imprisonment for vicarious liability
"(5) If:
(a) an individual is convicted of an offence; and
(b) he or she would not have been convicted of the offence if subsections (3) and (4) had not been enacted;
he or she is not liable to be punished by imprisonment for that offence.
Meaning of 'state of mind'
"(6) A reference in this section to the state of mind of a person includes a reference to:
(a) the knowledge, intention, opinion, belief or purpose of the person; and
(b) the person's reasons for the intention, opinion, belief or purpose.
Meaning of 'director'
"(7) A reference in this section to a director of a body corporate includes a reference to a constituent member of a body corporate incorporated for a public purpose by a law of the Commonwealth, a State or a Territory.
Meaning of 'engaging in conduct'
"(8) A reference in this section to engaging in conduct includes a reference to failing or refusing to engage in conduct.
Meaning of 'offence against this Part'
"(9) In this section:
'offence against this Part' includes an offence against:
(a) section 6, 7 or 7A of the Crimes Act 1914; or
(b) subsection 86(1) of that Act because of paragraph (a) of that subsection;
that relates to an offence against this Part.
"Subdivision B-Collection of tax
Payment to Commissioner of Taxation-section 218 of Income Tax Assessment Act
"299. The Secretary to the Department of Social Security must, in accordance with section 218 of the Income Tax Assessment Act, for the purpose of enabling the collection of tax that is, or may become, payable by a person who receives a youth training allowance:
(a) make deductions from the instalments of the youth training allowance payable to a person; and
(b) pay the amount deducted to the Commissioner of Taxation.
Judicial notice to be taken of certain matters
Judicial notice of certain signatures
"300.(1) All courts must take judicial notice of a signature that purports to appear on an official document if the signature is of a person who:
(a) holds or has held the office of Secretary; or
(b) is or was an officer.
Judicial notice that person holds office
"(2) If the signature of a person referred to in subsection (1) purports to appear on an official document, all courts must take judicial notice of the fact that the person holds, or has held, the office referred to in paragraph (1)(a) or is or was an officer, as the case requires.
Evidence
Certain documents are prima facie evidence
"301.(1) If the signature of a person who:
(a) holds or has held the office of Secretary; or
(b) is or was an officer;
purports to appear on an official document, the document must be received in all courts as prima facie evidence of the facts and statements contained in it.
Prima facie evidence that person receiving payment
"(2) A written statement signed by a person referred to in subsection (1) that a person is or was receiving payment of youth training allowance on a certain date at a certain rate must be received in all courts as prima facie evidence that the person is or was receiving the payment of youth training allowance on the date and at the rate stated.
"PART 9-REVIEW OF DECISIONS
"Division 1-Internal review
Application of Division
"302. Unless otherwise stated, this Division applies to:
(a) all decisions of an officer under this Act relating to the AUSTUDY scheme; or
(b) all decisions of an officer under this Act relating to the Student Financial Supplement Scheme; or
(c) all decisions of an officer under this Act relating to the recovery of
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amounts paid under a current or former special educational assistance scheme; or
(d) all decisions of an officer under this Act relating to the youth training allowance (including a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force).
Note: For 'officer' see subsection 3(1).
Secretary may review decisions
Decisions that Secretary may review
"303.(1) The Secretary may review a decision to which this Division applies if satisfied that there is sufficient reason to review the decision.
Note: If a payment made under Part 8 is stopped or a rate of payment is varied because of the operation of a computer program there will still be a decision of an officer for review purposes. Section 159 provides that there is a decision of the Secretary if Part 8 operates automatically to terminate or reduce the rate of a youth training allowance. If the Secretary could have made a determination to suspend or cancel, or increase or reduce the rate of, a youth training allowance, section 164 provides that the determination is taken to have been made.
Decisions that are not reviewed
"(2) Subsection (1) does not apply to a decision made by the Secretary:
(a) under paragraph 58(2)(b) (approval of registration category); or
(b) under section 59 (approval of voluntary organisations); or
(c) approving a course or labour market program; or
(d) exempting a person from the application of a provision.
Applications to Tribunals
"(3) The Secretary may review a decision even if an application has been made to the Social Security Appeals Tribunal or the Administrative Appeals Tribunal for review of the decision.
Secretary may affirm, vary or substitute
"(4) The Secretary may:
(a) affirm the decision; or
(b) vary the decision; or
(c) set the decision aside and substitute a new decision.
Notice to National Convener
"(5) If:
(a) the Secretary makes a decision under subsection (4); and
(b) when the Secretary makes that decision, a person has applied to the Social Security Appeals Tribunal for review of the decision that was reviewed by the Secretary;
the Secretary must give the National Convener written notice of the Secretary's decision under subsection (4).
Notice to AAT Registrar
"(6) If:
(a) the Secretary makes a decision under subsection (4); and
(b) when the Secretary makes that decision, a person has applied to the Administrative Appeals Tribunal for review of the decision that was reviewed by the Secretary;
the Secretary must give the Registrar of the Administrative Appeals Tribunal written notice of the Secretary's decision under subsection (4).
Event taken to have occurred
"(7) If:
(a) the Secretary sets a decision aside under subsection (4); and
(b) the Secretary is satisfied that an event that did not occur would have occurred if the decision had not been made;
the Secretary may, if satisfied that it is reasonable to do so, treat the event as having occurred for the purposes of this Act.
Application for review
People affected may apply for review
"304.(1) A person affected by a decision to which this Division applies may apply to the Secretary for review of the decision.
Note: If a payment made under Part 8 is stopped or a rate of payment is varied because of the operation of a computer program there will still be a decision of an officer for review purposes. Section 159 provides that there is a decision of the Secretary if Part 8 operates automatically to terminate or reduce the rate of a youth training allowance. If the Secretary could have made a determination to suspend or cancel, or increase or reduce the rate of, a youth training allowance, section 164 provides that the determination is taken to have been made.
Period within which application for internal review to be sought
"(2) If a decision referred to in subsection (1) is a decision relating to a
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matter other than youth training allowance, the application under subsection (1) must be made within 3 months, or within such longer period as the Secretary, in special circumstances, allows, after the making of the decision.
No application to decisions by Secretary
"(3) Subsection (1) does not apply to a decision made by the Secretary himself or herself.
Review following application
"(4) If a person applies under subsection (1) for review of a decision, the Secretary or an authorised review officer may review the decision under section 306.
Application taken to have been made
"(5) If:
(a) a person who may apply to the Secretary for review of a decision under subsection (1) has not so applied; and
(b) the person applies to the Social Security Appeals Tribunal for review of the decision;
the person is, if the application to the Tribunal is made within any applicable time limit under subsection (2), taken to apply to the Secretary for review of the decision under subsection (1) on the day on which the person applies to the Social Security Appeals Tribunal.
Secretary may continue payment pending outcome of application for review
Declaration that payment to continue
"305.(1) If:
(a) a decision to which this Division applies is an adverse decision; and
(b) the adverse decision depends on:
(i) the exercise of a discretion by a person; or
(ii) the holding of an opinion by a person; and
(c) a person applies to the Secretary under subsection 304(1) for review of the adverse decision;
the Secretary may, by writing, declare that payment of benefit under the AUSTUDY scheme, Financial Supplement, or youth training allowance, to which the decision relates is to continue, pending the determination of the review, as if the adverse decision had not been made.
Application of Act
"(2) While a declaration under subsection (1) is in force in relation to the adverse decision, this Act (other than this Part) applies as if the adverse decision had not been made.
Start and cessation of declaration
"(3) A declaration under subsection (1) in relation to an adverse decision:
(a) starts to have effect on the day on which the declaration is made or on the earlier day (if any) stated in the declaration; and
(b) stops having effect if:
(i) the application to the Secretary for review of the adverse
decision is withdrawn; or
(ii) the review of the adverse decision is determined by the
Secretary; or
(iii) the declaration is revoked by the Secretary.

Holding of an opinion
"(4) A reference in subsection (1) to a person's holding of an opinion is a reference to the person's holding the opinion whether or not this Act expressly requires the opinion to be held before making the decision concerned.
Meaning of'adverse decision'
"(5) In this section:
'adverse decision' means:
(a) in relation to the AUSTUDY scheme-a decision:
(i) to amend a determination of benefit under the AUSTUDY scheme
by reducing the rate of benefit payable; or
(ii) to replace a determination of benefit under the scheme by
substituting a new determination of a lesser rate; or
(b) in relation to Financial Supplement-a decision under section 12R or 12T to stop the payment of Financial Supplement; or
(c) in relation to youth training allowance:
(i) a decision to cancel or suspend the allowance; or
(ii) a decision to reduce the rate of the allowance.

Powers of Secretary or authorised review officer if application for review
Secretary or review officer may affirm, vary or substitute
"306.(1) If an application for review of a decision is made under subsection 304(1), the Secretary or an authorised review officer must:
(a) affirm the decision; or
(b) vary the decision; or

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(c) set the decision aside and substitute a new decision.
Notice to applicant
"(2) If a person makes a decision under subsection (1), the person must give the applicant written notice of the decision.
Note: Meaning of'given'-sections 28A and 29 of the Acts Interpretation Act 1901 provide that a notice is given:
(a) to a natural person if the notice is:
. delivered personally; or
. left at the last known address of the person; or
. sent by prepaid post to the last known address of the
. person; and
(b) to a body corporate if the notice is left at, or sent by prepaid post to, the head office or a registered office or a principal office of the body corporate.
Event taken to have occurred
"(3) If:
(a) a person sets a decision aside under subsection (1); and
(b) the Secretary is satisfied that an event that did not occur would have occurred if the decision had not been made;
the Secretary may, if satisfied that it is reasonable to do so, treat the event as having occurred for the purposes of this Act.
Certain determinations not to be revived
If 2 determinations made
"307.(1) If:
(a) the Secretary makes a determination (the 'first determination') that:
(i) a youth training allowance is granted or is payable to a
person; or
(ii) a youth training allowance is payable at a particular rate to
a person; and
(b) the Secretary makes a determination (the'second determination'):
(i) to cancel the allowance; or
(ii) to reduce the rate at which the allowance is payable; and
(c) notice of the second determination is given to the person; and
(d) the person applies to the Secretary under section 304 for review of the second determination; and
(e) the application is made more than 13 weeks after the notice is given; and
(f) a decision (the'review decision') is made by the Secretary, an authorised review officer, the Social Security Appeals Tribunal or the Administrative Appeals Tribunal; and
(g) the review decision, or the effect of the review decision, is:
(i) to set aside the second determination; or
(ii) to affirm a decision setting aside the second determination;
the following provisions have effect:
(h) the second determination does not become void from the time when it was made;
(i) the mere setting aside of the second determination does not of itself revive the first determination.
Application for review taken to have been made
"(2) For the purposes of this section, a person is taken to have applied for review of a determination (the'primary determination') if:
(a) the person applies for review of another determination or decision; and
(b) an examination of the primary determination is necessary to resolve the issues raised by the review of the other determination or decision.
Note 1: For the meaning of'given' in relation to a notice of a decision see section 341.
Note 2: A notice is taken to have been given to a person even if the Secretary is satisfied that the person did not actually receive the notice (see subsection 23(12) of the Social Security Act).
Note 3: This section does not apply to a determination by the Secretary to suspend a youth training allowance. If the Secretary's determination to suspend a youth training allowance is set aside on review, the recipient is placed in the position in which he or she would have been if the determination to suspend had not been made.
Notification of further rights of review
Contents of notice
"308.(1) If a person gives the applicant notice under subsection 306(2), the notice must include:
(a) a statement to the effect that the applicant may, subject to this Act, apply to the Social Security Appeals Tribunal for review of the person's decision; and
(b) a statement about the person's decision that:
(i) sets out the reasons for the decision; and
(ii) sets out the findings by the person on material questions of
fact; and
(iii) refers to the evidence or other material on which those
findings were based; and

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(c) a statement to the effect that, if the person is dissatisfied with the Social Security Appeals Tribunal's decision, application may, subject to the Administrative Appeals Tribunal Act 1975, be made to the Administrative Appeals Tribunal for review of the Social Security Appeals Tribunal's decision.
Validity not affected
"(2) A contravention of subsection (1) in relation to a decision does not affect the validity of the decision.
"Division 2-Review by Social Security Appeals Tribunal
Application of Division
"309. Unless otherwise stated, this Division applies to:
(a) all decisions of an officer under this Act relating to the AUSTUDY scheme; or
(b) all decisions of an officer under this Act relating to the Student Financial Supplement Scheme; or
(c) all decisions of an officer under this Act relating to the recovery of amounts paid under a current or former special educational assistance scheme; or
(d) all decisions of an officer under this Act relating to the youth training allowance (including a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force).
Note: For 'officer' see subsection 3(1).
SSAT objectives
"310. The Social Security Appeals Tribunal must, in carrying out its functions under this Act, pursue the objective of providing a mechanism of review that is fair, just, economical, informal and quick.
Note: For establishment and membership of the SSAT see Division 1 of Part 7.3 of the Social Security Act.
Application for review by SSAT
People who may apply for review
"311.(1) Subject to section 313, if:
(a) a decision has been reviewed by the Secretary or an authorised review officer under section 306; and
(b) the decision has been affirmed, varied or set aside;
a person whose interests are affected by the decision of the Secretary or the authorised review officer may apply to the Social Security Appeals Tribunal for review of that decision.
Note: If a payment made under Part 8 is stopped or a rate of payment is varied because of the operation of a computer program there will still be a decision of an officer for review purposes. Section 159 provides that there is a decision of the Secretary if Part 8 operates automatically to terminate or reduce the rate of a youth training allowance. If the Secretary could have made a determination to suspend or cancel, or increase or reduce the rate of, a youth training allowance, section 164 provides that the determination is taken to have been made.
Decision made by Secretary or review officer
"(2) For the purposes of subsection (1), the decision made by the Secretary or the authorised review officer is taken to be:
(a) if the Secretary or the authorised review officer affirms a decision-the decision as affirmed; and
(b) if the Secretary or the authorised review officer varies a decision-the decision as varied; and
(c) if the Secretary or the authorised review officer sets a decision aside and substitutes a new decision-the new decision.
Period within which application for review by SSAT to be sought
"(3) If the decision last referred to in subsection (1) is a decision affirming, varying or setting aside a decision relating to a matter other than a youth training allowance, the application under subsection (1) to the Social Security Appeals Tribunal for review of the decision as affirmed, as varied or as substituted for the decision set aside must be made within 3 months, or within such longer period as the Secretary, in special circumstances, allows after the original decision was affirmed, varied or set aside by the Secretary or an authorised review officer.
Application requirement for certain decisions
"312. The Social Security Appeals Tribunal may only review a decision under section 80 (to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force) if the application is expressed to be an application for review of that decision.
Non-reviewable decisions
"313. The Social Security Appeals Tribunal cannot review a decision:
(a) requesting information or evidence about a student's eligibility for
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benefit under the AUSTUDY scheme; or
(b) under section 126 or 127 (form and place of lodgment of claim); or
(c) to give a recipient notification notice; or
(d) to give a recipient statement notice; or
(e) under section 343, 345 or 346 (notice requiring information from any person); or
(f) under section 305 or 314 (continuation of payment pending review of adverse decision); or
(g) under section 299 (deduction of amounts from allowance payments for tax purposes).
Note: For 'recipient notification notice' and'recipient statement notice' see section 58.
Secretary may continue payment pending outcome of application for review
Secretary may declare payment to continue
"314.(1) If:
(a) a decision to which this Division applies is an adverse decision; and
(b) the adverse decision depends on:
(i) the exercise of a discretion by a person; or
(ii) the holding of an opinion by a person; and
(c) a person applies to the Social Security Appeals Tribunal under subsection 311(1) for review of the adverse decision;
the Secretary may declare that payment of benefit under the AUSTUDY scheme, Financial Supplement or youth training allowance to which the decision relates is to continue, pending the determination of the review, as if the adverse decision had not been made.
Written declaration
"(2) A declaration under subsection (1) is to be in writing.
Act applies as if decision not made
"(3) While a declaration under subsection (1) is in force in relation to the adverse decision, this Act (other than this Part) applies as if the adverse decision had not been made.
Start and cessation of declaration
"(4) A declaration under subsection (1) in relation to an adverse decision:
(a) starts to have effect on the day on which the declaration is made or on the earlier day (if any) stated in the declaration; and
(b) stops having effect if:
(i) the application to the Social Security Appeals Tribunal for
review of the adverse decision is withdrawn; or
(ii) the review of the adverse decision is determined by the
Social Security Appeals Tribunal; or
(iii) the declaration is revoked by the Secretary.

Holding of an opinion
"(5) A reference in subsection (1) to a person's holding of an opinion is a reference to the person's holding that opinion whether or not this Act expressly requires the opinion to be held before making the decision concerned.
Adverse decision
"(6) In this section:
'adverse decision' means:
(a) in relation to the AUSTUDY scheme-a decision:
(i) to amend a determination of benefit under the AUSTUDY scheme
by reducing the rate of benefit payable; or
(ii) to replace a determination of benefit under the scheme by
substituting a new determination of a lesser rate; or
(b) in relation to Financial Supplement-a decision under section 12R or 12T to stop the payment of Financial Supplement; or
(c) in relation to youth training allowance:
(i) a decision to cancel or suspend the allowance; or
(ii) a decision to reduce the rate of the allowance.

Automatic payment if review sought of decision concerning terms of agreement
Application
"315.(1) This section applies to a decision to give notice under section 81 because of a person's failure to agree to terms of a Youth Training Activity Agreement proposed by the Commonwealth Employment Service (subparagraph 81(1)(b)(iii)).
Continuation of payment
"(2) If:
(a) a person applies to the Social Security Appeals Tribunal under subsection 311(1) for review of a decision; and
(b) the person makes the application within 14 days after being told of the decision;
the following provisions have effect:

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(c) payment of the youth training allowance is to be made pending the determination of the review, as if the Agreement had not been required;
(d) if payment of the allowance had ceased for a period before the person applied for the review-in spite of section 167, arrears of allowance are payable to the person for the period;
(e) this Act (other than this Part) applies as if the Agreement had not been required.
When payment stops
"(3) Subsection (2) ceases to have effect if:
(a) the application for review is withdrawn; or
(b) the review of the decision is determined.
SSAT review powers
Powers of SSAT
"316.(1) If a person applies to the Social Security Appeals Tribunal for review of a decision (other than a decision referred to in subsection (7)), the Tribunal must:
(a) affirm the decision; or
(b) vary the decision; or
(c) set the decision aside; and
(i) substitute a new decision; or
(ii) send the matter back to the Secretary for reconsideration in
accordance with any directions or recommendations of the Tribunal.
Note: This subsection is subject to section 1274 of the Social Security Act (which allows an applicant to withdraw the application) and 1275 of the Social Security Act (which allows the National Convener to dismiss an application for review in certain circumstances).
"(2) If the Social Security Appeals Tribunal sets a decision aside and substitutes for it:
(a) a decision that a person is entitled to benefit under the AUSTUDY scheme and Financial Supplement; or
(b) a decision that a person is entitled to Financial Supplement;
the Tribunal must:
(c) assess the rate at which benefit under the AUSTUDY scheme and Financial Supplement, or Financial Supplement, is to be paid to the person; or
(d) ask the Secretary to assess the rate at which benefit under the AUSTUDY scheme and Financial Supplement, or Financial Supplement, is to be paid to the person.
Procedure if decision substituted
"(3) If the Social Security Appeals Tribunal sets a decision aside and substitutes for it a decision that a person is entitled to a youth training allowance, the Tribunal must:
(a) assess the rate at which the youth training allowance is to be paid to the person; or
(b) ask the Secretary to assess the rate at which the youth training allowance is to be paid to the person.
Tribunal may exercise Secretary's powers
"(4) Subject to subsection (5), the Social Security Appeals Tribunal may, for the purpose of reviewing a decision under this Act, exercise all the powers and discretions that are conferred by this Act on the Secretary.
Certain powers of Secretary not exercisable by Tribunal
"(5) The reference in subsection (4) to powers and discretions conferred by this Act does not include a reference to powers and discretions conferred by:
(a) a provision dealing with the form and place of lodgment of a claim; or
(b) a provision dealing with the manner of payment of benefit under the AUSTUDY scheme, Financial Supplement or youth training allowance; or
(c) subsection 42(3) (notice requiring payment to the Commonwealth); or
(d) section 283 (garnishee notice); or
(e) a provision dealing with the giving of a notice requiring information from a person who receives a youth training allowance; or
(f) sections 343 to 346 (notice requiring information from any person); or
(g) section 305 or 314 (continuation of payment pending review of adverse decision); or
(h) a provision dealing with the imposition of requirements before grant of a youth training allowance; or
(i) a provision dealing with the deduction of amounts from a youth
training allowance for tax purposes.
Event taken to have occurred
"(6) If:
(a) the Social Security Appeals Tribunal sets a decision aside under subsection (1); and
(b) the Secretary, or the Tribunal, is satisfied that an event that did not occur would have occurred if the decision had not been made;
the Secretary or the Tribunal (as the case may be) may, if satisfied that it is reasonable to do so, treat the event as having occurred for the purposes of
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this Division.
Application
"(7) This section does not apply to a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force.
SSAT review powers (Youth Training Activity Agreement decision)
"317. If a person applies to the Social Security Appeals Tribunal for a review of a decision under section 80 to the extent that it relates to the terms of a Youth Training Activity Agreement that is in force, the Tribunal must:
(a) affirm the decision; or
(b) set aside the decision and send the matter back to the Secretary for reconsideration in accordance with any recommendations of the Tribunal.
Date of effect of SSAT decisions
General rule
"318.(1) Subject to subsections (2) and (3), a decision by the Social Security Appeals Tribunal comes into operation immediately on the giving of the decision.
Tribunal may nominate later date
"(2) The Tribunal may provide in a decision that the decision is not to come into operation until a later day stated in the decision and, if it does so, the decision comes into operation on that later day.
Decision varied or substituted
"(3) Subject to subsections (4) and (5), if the Tribunal:
(a) varies the decision under review; or
(b) sets aside the decision under review and substitutes a new decision for the decision under review;
the decision as varied or the new decision (as the case may be) has effect, or is taken to have had effect, on and from the day on which the decision under review has or had effect.
Rule where application more than 3 months after notice
"(4) If:
(a) a person is given written notice of a decision to which this Division applies that relates to youth training allowance; and
(b) the person applies to the Tribunal more than 3 months after the notice was given, for review of the decision; and
(c) the Tribunal varies the decision or sets the decision aside and substitutes a new decision; and
(d) the effect of the Tribunal's decision is:
(i) to grant the person's claim for a youth training allowance; or
(ii) to direct the making of a payment of youth training allowance
to the person; or
(iii) to increase the rate of the person's youth training
allowance ;
subsection (3) applies as if references in that subsection to the day on which the decision under review had effect were references to the day on which the application was made to the Tribunal for review of the decision under review.
Note: Meaning of'given'-sections 28A and 29 of the Acts Interpretation Act 1901 provide that a notice is given:
(a) to a natural person if the notice is:
. delivered personally; or
. left at the last known address of the person; or
. sent by prepaid post to the last known address of the
person; and
(b) to a body corporate if the notice is left at, or sent by prepaid post to, the head office or a registered office or a principal office of the body corporate.
Tribunal may vary rule under subsection (3)
"(5) The Tribunal may order:
(a) that subsection (3) not apply to a decision to which this Division applies by the Tribunal on a review; and
(b) that subsections (1) and (2) apply instead.
Application
"(6) This section does not apply to a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force.
Date of effect of SSAT decision (Youth Training Activity Agreement decision)
Application
"319.(1) This section applies to a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force.
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Decision of Tribunal applies immediately
"(2) Subject to subsection (3), a decision by the Social Security Appeals Tribunal in relation to a decision to which this section applies comes into operation immediately on the giving of the decision.
Tribunal may nominate later date
"(3) The Social Security Appeals Tribunal may provide in a decision that the decision is not to come into operation until a later day stated in the decision and, if it does so, the decision comes into operation on that later day.
Application requirements
Methods of applying for review
"320.(1) A person may apply to the Social Security Appeals Tribunal for review of a decision by:
(a) sending or delivering a written application to:
(i) an office of the Tribunal; or
(ii) an office of the Department; or
(iii) in the case of a review of a decision relating to youth
training allowance-an office of the Department of Social Security; or
(b) going to an office of the Tribunal and making an oral application; or
(c) telephoning an office of the Tribunal and making an oral application.
Written record of oral application
"(2) If a person makes an oral application under paragraph (1)(b) or (c), the person receiving the oral application must make a written record of the details of the oral application and note on the record the date on which the application is made.
Written record taken to be application
"(3) If a written record of an oral application is made under subsection (2), the written record is taken to be a written application by the applicant and to be delivered to an office of the Tribunal on the day on which the oral application is made.
Statement of reasons
"(4) An application may include a statement of the reasons for seeking a review of the decision.
Variation of decision before review completed
Application for review of decision as varied
"321.(1) If an officer varies a decision after an application has been made to the Social Security Appeals Tribunal for review of the decision but before determination of the review, the application for review is to be treated as if it were an application for review of the decision as varied.
Application for review of substituted decision
"(2) If an officer sets a decision aside and substitutes a new decision after an application has been made to the Social Security Appeals Tribunal for review of the decision set aside but before determination of the review, the application for review is to be treated as if it were an application for review of the new decision.
Procedure if variation or substitution before determination
"(3) If:
(a) a person applies to the Social Security Appeals Tribunal for a review of a decision; and
(b) before determination of the review, an officer varies the decision or sets the decision aside and substitutes a new decision;
the person may either:
(c) proceed with the application for review of the decision as varied or the new decision; or
(d) withdraw the application under section 1274 of the Social Security Act.
Parties to SSAT review
Parties to review
"322.(1) The parties to a review by the Social Security Appeals Tribunal of a decision are:
(a) the applicant; and
(b) the Secretary; and
(c) any other person who has been made a party to the review under subsection (5).
Meaning of Secretary in certain circumstances
"(2) For the purposes of subsection (1), if a decision is made on the basis of issues determined solely by officers of the Department of Social Security, the Secretary referred to in paragraph (1)(b) is the Secretary to that Department.

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Application to be made a party
"(3) If a person has applied under subsection 311(1) for review of a decision, any other person whose interests are affected by the decision may apply to the National Convener to be made a party to the review.

Written application
"(4) An application under subsection (3) must be in writing.
National Convener may make order
"(5) The National Convener may order that a person who has applied under subsection (3) be made a party to the review.
Note: For role of National Convener see section 1323 of the Social Security Act.
"Division 3-Right to review by Administrative Appeals Tribunal
Application of Division
"323. Unless otherwise stated, this Division applies to:
(a) all decisions of an officer under this Act relating to the AUSTUDY scheme; or
(b) all decisions of an officer under this Act relating to the Student Financial Supplement Scheme; or
(c) all decisions of an officer under this Act relating to the recovery of amounts paid under a current or former special educational assistance scheme; or
(d) all decisions of an officer under this Act relating to the youth training allowance (including a decision under section 80 to the extent to which it relates to the terms of a Youth Training Activity Agreement that is in force).
Note: For 'officer' see subsection 3(1).
Review of SSAT decision by AAT
Application for review
"324.(1) If a decision has been reviewed by the Social Security Appeals Tribunal (the'SSAT') and has been affirmed, varied or set aside, application may be made to the Administrative Appeals Tribunal for a review of the decision of the SSAT.
Which decision is to be reviewed
"(2) For the purposes of subsection (1), the decision made by the SSAT is taken to be:
(a) if the SSAT affirms a decision-the decision as affirmed; and
(b) if the SSAT varies a decision-the decision as varied; and
(c) if the SSAT sets a decision aside and substitutes a new decision-the new decision; and
(d) if the SSAT sets a decision aside and sends the matter back to the Secretary for reconsideration in accordance with any directions or recommendations of the SSAT-the directions or recommendations of the SSAT.
AAT Act requirements
"(3) Subsection (1) has effect subject to section 29 of the Administrative Appeals Tribunal Act 1975.
Note: Section 29 of the Administrative Appeals Tribunal Act 1975 sets out the manner in which an application of the AAT for review of a decision must be made.
Secretary may treat event as having occurred
"(4) If:
(a) the Administrative Appeals Tribunal sets a decision aside; and
(b) the Secretary is satisfied that an event that did not occur would have occurred if the decision had not been made;
the Secretary may, if satisfied that it is reasonable to do so, treat the event as having occurred for the purposes of this Division.
Variation of decision before AAT review completed
Review of decision as varied
"325.(1) If an officer varies a decision after an application has been made to the Administrative Appeals Tribunal for review of the decision but before the determination of the application for review, the application is to be treated as if it were an application for review of the decision as varied.
Review of new decision
"(2) If an officer sets a decision aside and substitutes a new decision after an application has been made to the Administrative Appeals Tribunal for review of the decision but before determination of the review, the application is to be treated as if it were an application for review of the new decision.
Person may proceed or withdraw
"(3) If:
(a) a person applies to the Administrative Appeals Tribunal for review of a decision; and

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(b) before determination of the review, an officer varies the decision or sets the decision aside and substitutes a new decision;
the person may either:
(c) proceed with the application for review of the decision as varied or the new decision; or
(d) withdraw the application.
Review of SSAT decision on application by the Secretary
"326. If a decision has been reviewed by the Social Security Appeals Tribunal and has been varied or set aside, the Administrative Appeals Tribunal Act 1975 applies to a review under section 324 of the Social Security Appeals Tribunal's decision as if the Secretary to the Department of Social Security were, for the purposes of section 27 of that Act, a person whose interests are affected by the Social Security Appeals Tribunal's decision.
Note: Section 27 of the Administrative Appeals Tribunal Act 1975 provides that, if an Act provides than an application may be made to the AAT for a review of a decision, the application may be made by or on behalf of any person whose interests are affected by the decision.
"Division 4-Modification of the Administrative Appeals Tribunal
Act 1975
Modification of the Administrative Appeals Tribunal Act
"327. This Division sets out the modifications of the Administrative Appeals Tribunal Act 1975 that need to be made for applications for review under section 324.
Statement of reasons for decision
"328. The Administrative Appeals Tribunal Act 1975 applies to an application under section 324 for review of a decision as if references in section 28 of that Act to the person who made the decision were references to the National Convener.
Note: Section 1281 of the Social Security Act requires the SSAT to give the parties to a review copies of a statement setting out reasons, findings on material questions of fact and a reference to the evidence or other material on which the findings were based. Section 28 of the Administrative Appeals Tribunal Act 1975 entitles an applicant for review by the AAT to ask the person who made the decision for a statement setting out the same matters. Subsection 28(4) of the Administrative Appeals Tribunal Act 1975 provides that an applicant for review is not entitled to a statement under that section if the matters referred to in section 1281 of the Social Security Act are set out in the decision itself or in a written statement given to the applicant.
Notice of application for review
"329. The Administrative Appeals Tribunal Act 1975 applies to an application under section 324 for review of a decision as if the reference in subsection 29(11) of that Act to the person who made the decision were a reference to each party to a review by the Social Security Appeals Tribunal (other than a party making the application under section 324).
Note: Subsection 29(11) of the Administrative Appeals Tribunal Act 1975 requires notice of an application to the AAT for review of a decision to be given to the person who made the decision. The effect of this section is that any person who was a party to the review by the SSAT will be given notice of an application to the AAT for further review.
Parties to review by the AAT
"330. The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 324 as if the reference in paragraph 30(1)(b) of that Act to the person who made the decision were a reference to each person who was a party to the review by the Social Security Appeals Tribunal.
Note: Paragraph 30(1)(b) of the Administrative Appeals Tribunal Act 1975 provides that the person who made the decision under review is a party to the proceeding before the AAT for review of the decision. The effect of this section is that each person who was a party to the review by the SSAT is automatically made a party to an application to the AAT for further review.
Lodging documents with the AAT
Certain references in the AAT Act taken to be references to a Secretary
"331.(1) The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 324 as if references in section 37 of that Act to the person who made the decision that is the subject of an application for review by the Administrative Appeals Tribunal were:
(a) if the decision was a decision other than a decision referred to in paragraph (b)-the Secretary; and
(b) if the decision was a decision relating to youth training allowance and was made on the basis of issues determined solely by officers of the Department of Social Security-the Secretary to that Department.
Compliance with obligations under paragraph 37(1)(a) of AAT Act
"(2) If a person applies to the Administrative Appeals Tribunal under section 324 for a review of a decision, the Secretary or the Secretary to the
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Department of Social Security, as the case requires, is taken to have complied with his or her obligations under paragraph 37(1)(a) of the Administrative Appeals Tribunal Act 1975 in relation to the decision if he or she gives the Administrative Appeals Tribunal the prescribed number of copies of the statement prepared by the Social Security Appeals Tribunal under paragraph 128(1)(a) of the Social Security Act.
Powers under section 38 of AAT Act
"(3) Subsection (2) does not limit the Administrative Appeals Tribunal's powers under section 38 of the Administrative Appeals Tribunal Act 1975.
Note 1: Subsection 37(1) of the Administrative Appeals Tribunal Act 1975 requires a person who has made a decision that is under review by the AAT to give the AAT copies of:
(a) a statement setting out the findings on material questions of fact, referring to the evidence or other material on which those findings were based and giving the reasons for the decision; and
(b) every other document or part of a document that is in the person's possession or under the person's control and is considered by the person to be relevant to the review.
Unless subsection 331(1) provided otherwise, the obligations under section 37 of the Administrative Appeals Tribunal Act 1975 would fall on the SSAT. Paragraph 1281(1)(a) of the Social Security Act requires the SSAT to prepare a written statement of reasons, findings and evidence for its decision and paragraph 1281(1)(b) of that Act requires the SSAT to give the Secretary, or the Secretary to the Department of Social Security, a copy of the statement. As the Secretary, or the Secretary to the Department of Social Security, as the case requires, has possession of the statement and relevant documents, he or she is the appropriate person to give them to the AAT.
Note 2: Section 38 of the Administrative Appeals Tribunal Act 1975 allows the Administrative Appeals Tribunal to order the person who lodged a statement under paragraph 37(1)(a) of the Administrative Appeals Tribunal Act 1975, to lodge an additional statement containing further and better particulars.
Power of the AAT to obtain additional statements
"332. The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 333 as if references in section 38 of that Act to the person who lodges a statement referred to in paragraph 37(1)(a) of that Act with the Administrative Appeals Tribunal were references to the National Convener.
Note: The effect of this section is that if the AAT considers that the statement under section 1281 of the Social Security Act is not adequate, the AAT may ask the National Convener to provide an additional statement containing further and better details.
Operation and implementation of the decision under review
Applications for review by AAT
"333.(1) The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 324 as if the references in subsection 41(4) of that Act to the person who made the decision were references to each party to the review by the Social Security Appeals Tribunal (the'SSAT').
Note: Section 41 of the Administrative Appeals Tribunal Act 1975 deals with the operation and implementation of a decision under review by the AAT.
Review of decisions
"(2) The Administrative Appeals Tribunal Act 1975 applies to an application for review under section 324 as if the references in section 41 of that Act to the decision to which the relevant proceeding relates were references to:
(a) if the SSAT affirmed the original decision-the original decision; or
(b) if the SSAT varied the original decision:
(i) the original decision as varied by the SSAT; and
(ii) the original decision; or
(c) if the SSAT set aside the original decision and substituted a new decision:
(i) the new decision; and
(ii) the original decision; or
(d) if the SSAT set aside the original decision and sent the matter back to the Secretary for reconsideration in accordance with any directions or recommendations of the SSAT:
(i) any decision made as a result of that reconsideration; and
(ii) the original decision.

Review by SSAT
"(3) For the purposes of subsection (2), the original decision is the decision that was reviewed by the SSAT.
Power of the AAT if party fails to appear
"334. The Administrative Appeals Tribunal Act 1975 applies to a review under section 324 as if the reference in subsection 42A(2) of that Act to the person who made the decision were:
(a) if the decision was a decision other than a decision referred to in
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paragraph (b)-the Secretary; and
(b) if the decision was a decision relating to youth training allowance and was made on the basis of issues determined solely by officers of the Department of Social Security-the Secretary to that Department.
Note: Subsection 42A(2) of the Administrative Appeals Tribunal Act 1975 empowers the AAT to direct that, if a person fails to appear (other than the person who made the decision that is under review), that person is to cease to be a party to the proceedings before the AAT or the application for review is to be dismissed.
"PART 10-ADMINISTRATION
"Division 1-General administration
Government policy statements
Minister may prepare statement
"335.(1) The Minister may prepare a written statement of the policy of the Commonwealth Government in relation to the administration of this Act and give a copy of the statement to:
(a) the Secretary; and
(b) the Secretary to the Department of Social Security; and
(c) the National Convener of the Social Security Appeals Tribunal.
Copy to be laid before Parliament
"(2) If the Minister prepares a statement under subsection (1), the Minister must cause a copy of the statement to be laid before each House of the Parliament within 15 sitting days of that House after the Minister first gives a copy of the statement to a person under that subsection.
Officers to have regard to statement
"(3) In exercising powers under this Act, an officer must have regard to any statement a copy of which has been given to the Secretary of the Department of which he or she is an officer.
National Convener and Tribunal to have regard to statement
"(4) In exercising powers under this Act, the National Convener and the Social Security Appeals Tribunal must have regard to any statement a copy of which has been given to the National Convener under subsection (1).
The Secretary and National Convener may agree on administrative arrangements
"336. The Secretary and the National Convener of the Social Security Appeals Tribunal may agree on administrative arrangements to further the objectives of Part 9.
The Secretary and the Secretary to the Department of Social Security may agree on administrative arrangements for Parts 8, 9 and 10
"337. The Secretary and the Secretary to the Department of Social Security may, to further the objectives:
(a) of Part 8; and
(b) of Part 9 and this Part, in so far as they relate to Part 8;
agree on administrative arrangements under which officers of the Department of Social Security perform duties, or exercise powers or functions, under or in relation to Part 8, and under and in relation to Part 9 and this Part in so far as they so relate.
Delegation
Secretary may delegate powers
"338.(1) Subject to this section, the Secretary may, by signed writing, delegate to an officer all or any of the powers of the Secretary under this Act.
Certain powers may only be delegated to Secretary to the Department of Social Security
"(2) With regard to the Secretary's power under paragraph 355(1)(b) (disclosure of information), the Secretary:
(a) may delegate the power to the Secretary to the Department of Social Security; and
(b) must not delegate the power to anyone else.
Certain powers may only be delegated to an officer of the Department
"(3) With regard to the Secretary's powers under section 71 (move to area of lower employment prospects) and the Secretary's power under section 339 to authorise an officer to perform duties as an authorised review officer for the purposes of section 71, the Secretary:
(a) may delegate the powers to officers of the Department; and
(b) must not delegate the powers to anyone else.
Sub-delegation
"(4) If the Secretary delegates a power (other than the power referred to in subsection (2)) to the Secretary to the Department of Social Security, the last-mentioned Secretary may, unless the instrument of delegation prohibits it, sub-delegate the power, by signed writing, to an officer of the Department
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of Social Security.
Note 1: See sections 34A and 34AA of the Acts Interpretation Act 1901 on delegation.
Note 2: For 'officer' see subsection 3(1).
Authorised review officers
Secretary may authorise officer
"339.(1) Subject to subsection (2), the Secretary may authorise an officer to perform duties as an authorised review officer for the purposes of this Act.
Authorised review officers for particular purposes
"(2) The only officers who may be authorised to perform duties as authorised review officers for the purposes of section 71 (move to area of lower employment prospects) are officers of the Department.
Written authorisation
"(3) The Secretary's authorisation must be in writing.
Decisions to be in writing
Written decision
"340.(1) A decision of an officer under this Act must be in writing.
Entry in computer
"(2) A decision under this Act is taken to be in writing if it is entered into, or recorded with the use of, a computer.
Notice of decisions
Notices other than notices under Part 8 taken to have been given
"341.(1) If notice of a decision under a Part of this Act other than Part 8 is:
(a) delivered to a person personally; or
(b) left at the address of the place of residence or business of the person last known to the Secretary; or
(c) sent by pre-paid post to the address of the place of residence or business of the person last known to the Secretary;
notice of the decision is taken, for the purposes of this Act, to have been given to the person even if the Secretary is satisfied that the person did not actually receive the notice.
Note: Compare section 28A of the Acts Interpretation Act 1901.
Notices under Part 8 to have been given
"(2) If notice of a decision under Part 8 is:
(a) delivered to a person personally; or
(b) left at the address of the place of residence or business of the person last known to the Secretary, or to the Secretary to the Department of Social Security; or
(c) sent by pre-paid post to the address of the place of residence or business of the person last known to the first-mentioned Secretary, or to the Secretary to the Department of Social Security;
notice of the decision is taken, for the purposes of this Act, to have been given to the person even if the first-mentioned Secretary is satisfied that the person did not actually receive the notice.
Notice by post
"(3) Notice of a decision under this Act may be given to a person by properly addressing, prepaying and posting the notice as a letter.
Note: Compare the first limb of section 29 of the Acts Interpretation Act 1901.
When notice by post given
"(4) If a notice of a decision under this Act is given in accordance with subsection (3), notice of the decision is taken to have been given to the person at the time when the letter would be delivered in the ordinary course of the post unless the contrary is proved.
Note: Compare the second limb of section 29 of the Acts Interpretation Act 1901.
Effect of section
"(5) This section only applies to notices of decisions and nothing in this section affects the operation of sections 28A and 29 of the Acts Interpretation Act 1901 in relation to other notices under this Act.
"Division 2-Information gathering
Application
Extraterritorial application
"342.(1) This Division other than section 349 extends to:
(a) acts, omissions, matters and things outside Australia, whether or not in a foreign country; and
(b) all people irrespective of their nationality.
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Crown to be bound
"(2) This Division other than sections 348 and 349 binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.
Commonwealth laws not to be breached
"(3) Nothing in this Division requires a person to give information to the extent that, in so doing, the person would contravene a law of the Commonwealth (other than a law of a Territory).
Operation of section 12ZU unaffected
"(4) Nothing in this Division affects the operation of section 12ZU.
General power to obtain information
Secretary may require information concerning student assistance benefits
"343.(1) The Secretary may require a person to give information, or to produce a document that is in the person's custody or under the person's control, to the Department if the Secretary considers that the information or document may be relevant to:
(a) whether a person who has made a claim for a student assistance benefit under this Act is or was qualified for the benefit; or
(b) whether a student assistance benefit under this Act is payable to a person who is receiving it; or
(c) whether a student assistance benefit under this Act was payable to a person who has received it; or
(d) the rate of a student assistance benefit that applies or applied to a person.
Secretary may require information concerning youth training allowances
"(2) The Secretary may require a person to give information, or produce a document that is in the person's custody or under the person's control, to the Department, or to the Department of Social Security, as the case requires, if the Secretary considers that the information or document may be relevant to:
(a) whether a person who has made a claim for youth training allowance is or was qualified for the allowance; or
(b) whether youth training allowance is payable to a person who is receiving it; or
(c) whether youth training allowance was payable to a person who has received it; or
(d) the rate of youth training allowance that applies or applied to a person.
Note: A requirement under this section may be sent to a company as well as to a natural person-paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that 'person' includes a body corporate.
Power to obtain information from a person who owes a debt to the Commonwealth
Information from persons owing debts under Parts of Act other than Part 8
"344.(1) The Secretary may require a person who owes a debt to the Commonwealth under this Act in relation to a student assistance benefit:
(a) either to:
(i) give to the Department information that is relevant to the
person's financial situation; or
(ii) produce to the Department a document that is in the person's
custody or under the person's control and is relevant to the person's financial situation; and
(b) if the person's address changes-to notify the Department of the new address within 14 days of the change.
Note: A requirement under this subsection may be sent to a company as well as to a natural person-paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that 'person' includes a body corporate.
"(2) The Secretary may require a person who owes a debt to the Commonwealth under this Act in relation to youth training allowance:
(a) either to:
(i) give to the Department of Social Security information that is
relevant to the person's financial situation; or
(ii) produce to the Department of Social Security a document that
is in the person's custody or under the person's control and is relevant to the person's financial situation; and
(b) if the person's address changes-to notify the Department of Social Security of the new address within 14 days of the change.
Note: A requirement under this subsection may be sent to a company as well as to a natural person-paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that'person' includes a body corporate.
Section 343 not affected
"(3) This section does not limit section 343.
Power to obtain information about a person who owes a debt to the Commonwealth

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Secretary may require information etc. concerning debts under Act other than Part 8
"345.(1) If the Secretary believes that a person may have information or a document:
(a) that would help the Department locate another person who owes a debt to the Commonwealth under this Act in relation to a student assistance benefit; or
(b) that is relevant to the financial situation of a person referred to in paragraph (a);
the Secretary may require the first-mentioned person to give the information, or produce the document, to the Department.
Secretary may require information etc. concerning debts under Part 8
"(2) If the Secretary believes that a person may have information or a document:
(a) that would help the Department of Social Security locate another person who owes a debt to the Commonwealth under this Act in relation to youth training allowance; or
(b) that is relevant to the financial situation of a person referred to in paragraph (a);
the Secretary may require the first-mentioned person to give the information, or produce the document, to the Department of Social Security.
Note: A requirement under this section may be sent to a company as well as to a natural person-paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that 'person' includes a body corporate.
Power to obtain information to verify claims etc.
Secretary may require information
"346.(1) The Secretary may require a person to give information about a class of people to the Department of Social Security for either or both of the following purposes:
(a) detecting cases in which amounts of youth training allowance have been paid when they should not have been paid;
(b) verifying the qualifications for youth training allowance of people who have made claims for that allowance.
Note: A requirement under this subsection may be sent to a company as well as to a natural person-paragraph 22(1)(a) of the Acts Interpretation Act 1901 provides that'person' includes a body corporate.
Type of information that may be sought
"(2) The information that the Secretary may require about each person in the class of people is all or any of the following information (but no other information);
(a) full name and any previous name;
(b) address;
(c) sex;
(d) marital status;
(e) date of birth;
(f) date of death;
(g) dates of entries into and departures from Australia;
(h) any payments received by the person from the person
given the notice, within the period of 12 months before the giving of the notice, and the account number of any account into which any of those payments were paid;
(i) in relation to a course of study being undertaken by the
person:
(i) whether the course is full-time or part-time; and
(ii) the date on which the person started the course; and
(iii) the subjects being studied by the person.

Provisions relating to requirements
Requirement by written notice
"347.(1) A requirement made to a person under section 343, 344, 345 or 346 must be by written notice given to the person.
Note: Meaning of'given'-sections 28A and 29 of the Acts Interpretation Act 1901 provides that a notice is'given' to a natural person if the notice is:
. delivered personally; or
. left at the last known address of the person; or
. sent by pre-paid post to the last known address of the
person.

Contents of notice
"(2) The notice must state:
(a) how the person is to give the information; and
(b) the period within which the person is to give the information; and
(c) the officer (if any) to whom the information is to be given; and
(d) that the requirement made by the notice is under the section concerned; and
(e) if the notice is given under section 346-the class of people about whom the information is to be given.
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Secretary may state particular class
"(3) The Secretary may state a particular class of people in a notice making a requirement under section 346, whether or not the Secretary is able to identify any of the people in the class as being people who:
(a) have received; or
(b) are receiving; or
(c) have made claims for;
youth training allowance.
Time limit for providing information
"(4) The period stated under paragraph (2)(b) must extend for at least 14 days after the notice is given.
Appearance before officer
"(5) The notice may require the person to give the information by appearing (or, if the person is a body corporate, to arrange for a person to appear) before a particular officer to answer questions.
Time and place for appearance
"(6) If the notice requires a person to appear before an officer, the notice must state a time and a place for the person to appear, and the time must be at least 14 days after the notice is given.
Secretary must decide whether information under section 346 is relevant
"(7) Within 3 months after information is given under section 346, the Secretary must decide which (if any) of the information given in response to the notice is, or is likely to be, relevant to the matters referred to in subsection 346(1).
Destruction of irrelevant information under section 346
"(8) If the Secretary decides, within the 3 month period, that some or all of the information given in response to a notice given under section 346 is not, or is not likely to be, relevant to the matters referred to in subsection 346(1), the Secretary must ensure that any record of the irrelevant information is destroyed.
Destruction of all information under subsection (7)
"(9) If the Secretary has not made a decision under subsection (7) at the end of the 3 month period, the Secretary must ensure that any record of all or any part of the information is destroyed.
Offences
"(10) A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a requirement made under section 343, 344, 345 or 346 to the extent that the person is capable of complying with it.
Penalty for a contravention of this subsection: Imprisonment for 12 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.
State/Territory law does not affect obligations to provide information "348. Nothing contained in any law of a State or a Territory operates to prevent a person from:
(a) giving information; or
(b) producing documents; or
(c) giving evidence;
that the person is required to give or produce to the Department of Social Security or to an officer for the purposes of this Act.
End-of-employment statement by employer
Person may request statement
"349.(1) If a person's employment (including employment under a contract for services) ceases, the person may request his or her former employer to give the person, in a form approved by the Secretary, a statement about that employment.
Offences
"(2) If a person makes a request under subsection (1), the former employer must comply with the request as soon as practicable.
Penalty: Imprisonment for 12 months.
Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted
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of the same offence.
Note 2: The statement could be relevant in determining a person's claim for youth training allowance. The statement may establish whether the person is affected by, for example, section 106 (unemployment due to voluntary act) or section 107 (unemployment due to misconduct).
"Division 3-Confidentiality
Operation of section 12ZU unaffected
"350. Nothing in this Division affects the operation of section 12ZU.
Protection of personal information
Obtaining protected information
"351.(1) A person may obtain protected information if the information is obtained for the purposes of this Act.
Note: In certain circumstances it is an offence for a person to obtain protected information without authority (see section 352).
Disclosure of protected information
"(2) A person may:
(a) make a record of protected information; or
(b) disclose such information to any person; or
(c) otherwise use such information;
if the record, disclosure or use made of the information by the person is made:
(d) for the purposes of this Act; or
(e) for the purpose for which the information was disclosed to the person under section 354 or 355.
Note: In certain circumstances it is an offence for a person to use protected information without authority (see section 353).
Child support
"(3) Nothing in this Part prevents a person from disclosing information to another person if the information is disclosed for the purposes of the Child Support (Assessment) Act 1989 or the Child Support (Registration and Collection) Act 1989.
Offence-unauthorised access to protected information
"352. If:
(a) a person intentionally obtains information; and
(b) the person:
(i) is not authorised or required by or under this Act; and
(ii) has no other lawful authority;
to obtain the information; and
(c) the person knows or ought reasonably to know that the information is protected information;
the person is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.
Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.
Note 2: A person, including an officer, is authorised to obtain protected information for the purposes of this Act (see subsection 351(1)).
Note 3: For 'protected information' see subsection 3(1).
Note 4: If a person is guilty of an offence under this section and the person is an employee or agent of another person, the other person may also be guilty of the offence (see section 298).
Offence-unauthorised use of protected information
"353. If:
(a) a person intentionally:
(i) makes a record of; or
(ii) discloses to any other person; or
(iii) otherwise makes use of;
information; and
(b) the person is not authorised or required by or under this Act to make the record, disclosure or use of the information that is made by the person; and
(c) the person knows or ought reasonably to know that the information is protected information;
the person is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.
Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.

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Note 2: A person, including an officer, is authorised to use information only if it is used for certain purposes (see subsection 351(2)). In certain circumstances an officer is required under this Act to disclose information (see section 354). The Secretary can disclose certain information (see section 355).
Protection extends to court, tribunal etc. proceedings
"354. An officer must not, except for the purposes of this Act, be required:
(a) to produce any document in his or her possession; or
(b) to disclose any matter or thing of which he or she had notice;
because of the performance or exercise of his or her duties, functions or powers under this Act to:
(c) a court; or
(d) any of the following:
(i) a tribunal; or
(ii) an authority; or
(iii) a person;
that has power to require the production of documents or the answering of questions.
Secretary's certificate
Secretary may disclose information
"355.(1) Despite sections 353 and 354, the Secretary may:
(a) if the Secretary certifies that it is necessary in the public interest to do so in a particular case or class of cases-disclose information acquired by an officer in the performance of his or her functions or duties or in the exercise of his or her powers under this Act to any persons and for any purposes that the Secretary determines; or
(b) disclose any such information to the Secretary of a Department of State of the Commonwealth or to the head of an authority of the Commonwealth for the purposes of that Department or authority; or
(c) disclose any such information to a contracted case manager within the meaning of the Employment Services Act 1994 for the purposes of that Act; or
(d) disclose any such information to a person who is expressly or impliedly authorised by the person to whom the information relates to obtain it.
Note: A person to whom information is disclosed may commit an offence if the person uses the information without authority (see section 353).
Secretary to act according to guidelines
"(2) In giving certificates for the purposes of paragraph (1)(a), the Secretary must act in accordance with guidelines from time to time in force under subsection 356(1).
Disclosure to be in accordance with guidelines
"(3) In disclosing information under paragraph (1)(b), the Secretary must act in accordance with guidelines from time to time in force under subsection 356(1).
Guidelines for exercise of Secretary's certificate power
Minister may set guidelines
"356.(1) The Minister, by written determination:
(a) is to set guidelines for the exercise of Secretary's power to give certificates for the purposes of paragraph 355(1)(a); and
(b) is to set guidelines for the exercise of the Secretary's power under paragraph 355(1)(b); and
(c) may revoke or vary those guidelines.
Disallowable instrument
"(2) A determination made under subsection (1) is a disallowable instrument.
Offence-soliciting disclosure of protected information
"357. If:
(a) a person solicits the disclosure of protected information from an officer or another person; and
(b) the disclosure would be in contravention of this Division; and
(c) the first-mentioned person knows or ought reasonably to know that the information is protected information;
then, whether or not any protected information is actually disclosed, the first-mentioned person is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.
Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.
Note 2: For 'protected information' see subsection 3(1).
Note 3: For 'officer' see subsection 3(1).
Note 4: If a person is guilty of an offence under this section and the person
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is an employee or agent of another person, the other person may also be guilty of the offence (see section 298).
Making untrue representations for purpose of soliciting disclosure of protected information
"358. If:
(a) a person solicits the disclosure of protected information from an officer; and
(b) for that purpose makes representations that the person knows or ought reasonably to know are untrue;
then, whether or not any protected information is actually disclosed, the person is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.
Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.
Note 2: For 'protected information' see subsection 3(1).
Note 3: For 'officer' see subsection 3(1).
Note 4: If a person is guilty of an offence under this section and the person is an employee or agent of another person, the other person may also be guilty of the offence (see section 298).
Offences-offering to supply protected information
Person offering to supply information
"359.(1) A person who:
(a) offers to supply (whether to a particular person or otherwise) information about another person; and
(b) knows that the information is protected information;
is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.
Person holding out that he or she is able to supply information
"(2) A person who:
(a) holds himself or herself out as being able to supply (whether to a particular person or otherwise) information about another person; and
(b) knows that the information is protected information;
is guilty of an offence punishable on conviction by imprisonment for a period of not more than 2 years.
Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.
Note 2: For 'protected information' see subsection 3(1).
Note 3: If a person is guilty of the offence under subsection (1) and the person is an employee or agent of another person, the other person may also be guilty of the offence (see section 298).
Exception
"(3) Nothing in subsection (1) or (2) renders an officer acting in the exercise or performance of his or her duties, functions or powers under this Act guilty of an offence.
Note: For 'officer' see subsection 3(1).
Officer's oath or declaration
"360. An officer must make an oath or declaration in a form approved by the Minister or the Secretary if required to do so by the Minister or the Secretary.
Note: For 'officer' see subsection 3(1).
Freedom of Information Act not affected
"361. The provisions of this Part that relate to the disclosure of information do not affect the operation of the Freedom of Information Act 1982.
SCHEDULE 1
CALCULATION OF RATE OF YOUTH TRAINING ALLOWANCE
PART 1-INTERPRETATION
Interpretation
1. In this Schedule:
'accounting period', in MODULE F, means a period of 12 months;
'employer', in MODULE F, has the meaning given by Schedule 3;
'independent' has the meaning given by clause 2;
'living at home' has the meaning given by clause 4;
'parent', in relation to a person (the'relevant person'), means in
Part 2:

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(a) a natural or adoptive parent of the relevant person with whom
the relevant person normally lives; or
(b) if a parent referred to in paragraph (a) is a member of a couple
and normally lives with the other member of the couple-the other
member of the couple; or
(c) any other person (other than the relevant person's partner) on
whom the relevant person is wholly or substantially dependent; or
(d) if none of the preceding paragraphs applies-the natural or
adoptive parent of the relevant person with whom the relevant person
last lived;
'required to live away from home' has the meaning given by clause 3.

When a person is regarded as independent
Application
2.(1) This clause applies to determine whether a person is to be
regarded as independent for the purposes of this Schedule.

Member of a couple
(2) A person is independent if the person is a member of a couple.
Note: For 'member of a couple' see subsections 4(2), (3) and (6) of
the Social Security Act.

Person with a dependent child
(3) Subject to subclause (4), a person is independent if:
(a) the person has a natural or adoptive child who is wholly or
substantially dependent on the person or his or her partner; or
(b) the person previously had a natural or adoptive child who was
wholly or substantially dependent on the person or on a person who, at
the time, was the person's partner.

Child not dependent if maintenance paid for the child
(4) If a person pays maintenance for a child, the child is taken not
to be dependent on the person.

Orphan
(5) A person is independent if both of the person's parents are
dead, whether or not the person is dependent, or was last dependent,
on someone other than his or her parents.

If parents cannot exercise responsibilities
(6) A person is independent if both of the person's parents are (or,
if the person has only one parent, that parent is):
(a) serving a prison sentence of at least 10 years; or
(b) mentally incapacitated and likely to remain so incapacitated for
an indefinite period; or
(c) living in a nursing home and likely to remain there for an
indefinite period; or
(d) missing;
whether or not the person is dependent, or was last dependent, on
someone other than a parent of the person.

Refugee
(7) Subject to subclause (8), a person is independent if the person:
(a) is the holder, within the meaning of the Migration (1993)
Regulations, of a Group 1.3 entry permit (permanent resident) (refugee
and humanitarian); or
(b) while the holder of such a permit, was granted Australian
citizenship.

Certain refugees cannot qualify as independent
(8) A person is not independent under subclause (7) if the person:
(a) has a parent living in Australia; or
(b) is wholly or substantially dependent on someone else on a long-
term basis.

Person in State care
(9) A person is independent if:
(a) the person is in the guardianship, care or custody of a Court, a
Minister, or a Department, of the Commonwealth, a State or a
Territory; or
(b) there is a current direction from such a Court, Minister or
Department placing the person in the guardianship, care or custody of
someone who is not the person's parent; or
(c) the person stopped being in a situation described in paragraph
(a) or (b) only because of his or her age;
and:
(d) the person is not living with a parent; and
(e) the person does not qualify under a law of, or a non-statutory
scheme administered by, a State or Territory for the making of any
payments by, or by an authority of, the State or Territory to or in

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respect of the person for his or her upkeep, and no such payments are
being made.

Unreasonable to live at home
(10) A person is independent if:
(a) the person can not live at the home of either or both of his or
her parents:
(i) because of extreme family breakdown or other similar
exceptional circumstances; or
(ii) because it would be unreasonable to expect the person to do
so as there would be a serious risk to his or her physical or mental
well-being due to violence, sexual abuse or other similar unreasonable
circumstances; and
(b) the person is not receiving continuous support, whether directly
or indirectly and whether financial or otherwise, from a parent of the
person or from another person who is acting as the person's guardian
on a long-term basis; and
(c) the person is not receiving, on a continuous basis, any payments
in the nature of income support (other than a social security benefit
or youth training allowance) from the Commonwealth, a State or a
Territory.

Living away from home for 18 weeks
(11) A person is independent if the person:
(a) does not live, and for a continuous period of at least 18 weeks
has not lived, at a home of the parents, or of a parent, of the
person; and
(b) has, at a time when the person was not living at such a home
been employed for at least 20 hours a week for the period of, or for
periods that total, at least 13 weeks; and
(c) is not receiving financial or other support from either or both
of his or her parents, or from someone else who is acting as his or
her guardian, and did not receive such support during the period
referred to in paragraph (a).

(12) A person is taken to be independent for the purposes of this
Schedule if:
(a) the person does not live at a home of the parents, or of a
parent, of the person; and
(b) the person does not receive regular financial support from a
parent of the person; and
(c) one of the following subparagraphs applies:
(i) there was a period in which the person was regarded as an
independent young person for the purposes of the Social Security Act
and:
(A) received sickness allowance before 1 January 1995; or
(B) received on or after that date sickness allowance in the
calculation of which subsection 709(2) of the Social Security Act 1991
as in force at a time on or after that date applied;
(ii) the person received special benefit before 1 January 1995 and
continued to receive that benefit on that date and there was a period,
whether before, on or after that date, in which the person was
regarded as an independent young person for the purposes of the Social
Security Act;
(iii) there was a period in which the person was regarded as an
independent young person for the purposes of the Social Security Act
and received job search allowance.

Clause to be exclusive
(13) A person is not to be regarded as independent except as
provided by this clause.
Note: For 'parent' see section 58.

Person required to live away from home
When a person is taken to be required to live away from home
3.(1) A person is taken to be required to live away from home for
the purposes of this Schedule if, and only if:
(a) the person is not independent; and
(b) the person does not live at the home of either or both of his or
her parents; and
(c) the Secretary determines that:
(i) the person needs to live away from home for the purpose of
education, training, searching for employment or doing anything else
in preparation for getting employment; or
(ii) the likelihood of the person's getting employment will be
significantly increased if the person lives away from home.

Secretary may have regard to advice from case manager
(2) In making a determination under paragraph (1)(c), the Secretary
may have regard to any advice given by a case manager to whom the

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person has been referred under Part 4.3 of the Employment Services Act
1994.

Matters to which Secretary is to have regard
(3) In making a determination under subparagraph (1)(c)(ii), the
Secretary is to have regard to:
(a) the overall employment prospects for young people in the area
where the home is situated and in the area where the person is living;
and
(b) matters relating to the person that would affect the likelihood
of the person's getting employment in those areas.
Note: For 'parent' see section 58.

Person living at home
4. If a person:
(a) is not independent; and
(b) is not taken by clause 3 to be required to live away from home;
the person is taken for the purposes of this Schedule to be living at
home.
PART 2-MODULES
MODULE A-OVERALL RATE CALCULATION PROCESS
Method of calculating rate
A1. The rate of allowance is a fortnightly rate.
Method statement
Step 1. Work out the person's maximum basic rate using MODULE B
below.
Step 2. Work out the amount a fortnight (if any) of pharmaceutical
allowance using MODULE C below.
Step 3. Work out any applicable additional amount for rent using
MODULE D below.
Step 4. Add up the amounts obtained in Steps 1 to 3: the result is
called the maximum payment rate.
Step 5. Work out, using MODULE E below, whether the assets test
applies to the person and, if it does, whether or not the value of the
person's assets is more than the person's assets value limit.
Step 6. If the value of the person's assets is not more than the
person's assets value limit, the assets test does not affect the
maximum payment rate.
Step 7. If the value of the person's assets is more than the person's
assets value limit, then:
(a) if the person is not independent, the maximum payment rate is
reduced to $62.90 (this is called the minimum non-independent payment
rate) and Step 8 is to be disregarded; or
(b) if the person is independent-a youth training allowance is not
payable to the person and the following Steps are to be disregarded.
Step 8. If the person is not independent and the parental income test
applies to the person (see points F2 and F3 in MODULE F below), work
out the reduction for parental income using that MODULE and take the
reduction away from the maximum payment rate but not so as to reduce
that rate below the minimum non-independent payment rate:
the result is called the parental income test reduced rate.
Step 9. Apply the ordinary income test using MODULE G below to work
out the person's ordinary income reduction.
Step 10. The rate of the allowance is worked out by taking the
person's ordinary income reduction away from:
(a) if the person is not independent:
(i) if paragraph (a) of Step 7 applied to the person-the minimum
non-independent payment rate; or
(ii) if Step 8 did not apply to the person because of points F2
and F3 (other than paragraph (g) of point F3) in MODULE F below-the
maximum payment rate; or
(iii) if paragraph (g) of point F3 applied to the person and Step
7 did not apply to the person-the maximum payment rate; or
(iv) if Step 8 applied to the person-the parental income test
reduced rate; or
(b) if the person is independent-the maximum payment rate;
and adding any amount payable by way of remote area allowance (see
MODULE H below).
Note: If a person's rate is reduced under Step 8 or Step 10, the order
in which the reduction is to be made against the components of the
maximum payment rate is laid down by section 257 (maximum basic rate
first, then rent assistance).
MODULE B-MAXIMUM BASIC RATE
Maximum basic rate
B1. A person's maximum basic rate is to be worked out using Table B.
Work out:
(a) whether the person is independent; and
(b) if the person is not independent-whether the person lives at
home or is required to live away from home; and
(c) if the person is independent:

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(i) whether the person is a member of a couple; and
(ii) whether the person has a dependent child.
The maximum basic rate is the corresponding amount in column 3.
TABLE B
MAXIMUM BASIC RATES
column 1
item column 2
person's situation column 3
rate
1. Not independent and lives at home $134.50
2. Not independent and required to live away
from home $222.10
3. Independent and:
(a) is not a member of a couple; and
(b) does not have a dependent child $222.10
4. Independent and:
(a) is a member of a couple; and
(b) does not have a dependent child $222.10
5. Independent and:
(a) is not a member of a couple; and
(b) has a dependent child $321.60
6. Independent and:
(a) is a member of a couple; and
(b) has a dependent child $269.20
Note 1: For 'independent' see clause 2 of this Schedule.
Note 2: For 'member of a couple' see section 4 of the Social Security
Act.
Note 3: For 'dependent child' see section 5 of the Social Security
Act.
Note 4: For 'lives at home' see clause 4 of this Schedule.
Note 5: For 'required to live away from home' see clause 3 of this
Schedule.
Note 6: The rates in column 3 are indexed annually in line with CPI
increases (see Division 13).
MODULE C-PHARMACEUTICAL ALLOWANCE
Qualification for pharmaceutical allowance
C1. Subject to points C3 and C4, an additional amount by way of
pharmaceutical allowance is to be added to a person's maximum basic
rate if:
(a) the person is an Australian resident; and
(b) the person is in Australia; and
(c) the person is receiving youth training allowance and point C2
(incapacity for work) applies to the person.

Incapacity for work
C2. This point applies to a person if:
(a) the person is incapacitated for work; and
(b) subsection 66(2) applies to the person.
Note: Subsection 66(2) provides that in some circumstances a person
who is incapacitated for work can continue to receive youth training
allowance.

No pharmaceutical allowance if person receiving pharmaceutical
allowance under the Veterans' Entitlements Act
C3. Pharmaceutical allowance is not to be added to a person's maximum
basic rate if the person is receiving pharmaceutical allowance under
the Veterans' Entitlements Act.

No pharmaceutical allowance if partner receiving pharmaceutical
allowance under the Veterans' Entitlements Act and not a service
pensioner
C4. Pharmaceutical allowance is not to be added to a person's maximum
basic rate if:
(a) the person is a member of a couple; and
(b) the person's partner is receiving pharmaceutical allowance under
the Veterans' Entitlements Act; and
(c) the person's partner is not receiving a service pension.
Note: If paragraphs (a), (b) and (c) apply to the person's partner,
the partner is receiving pharmaceutical allowance under the Veterans'
Entitlements Act at the higher rate (rather than the person and the
person's partner each receiving pharmaceutical allowance at the lower
rate).

Amount of pharmaceutical allowance
C5. The amount of pharmaceutical allowance is the amount a fortnight
worked out using the following table:
TABLE C
PHARMACEUTICAL ALLOWANCE AMOUNT TABLE
column 1
item column 2

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person's family situation column 3
amount a
fortnight
1. Not member of couple $5.20
2. Partnered $2.60
3. Member of illness separated couple $5.20
4. Member of respite care couple $5.20
5. Partnered (partner getting service pension) $2.60
6. Partnered (partner in gaol) $5.20
Note 1: For 'member of a couple','partnered','illness separated
couple', 'respite care couple' and'partnered (partner in gaol)' see
section 4 of the Social Security Act.
Note 2: The amounts in column 3 are indexed or adjusted annually in
line with CPI increases on 1 January (see sections 251 and 256).
MODULE D-RENT ASSISTANCE
Rent assistance
D1. Subject to point D3, an amount to help cover the cost of rent is
to be added to the maximum basic rate of a person who is independent
for a period if:
(a) the person is not an ineligible homeowner; and
(b) the person pays, or is liable to pay, rent (other than
Government rent) in respect of the period; and
(c) the rent is payable at a rate of more than the rent threshold
rate; and
(d) the person is in Australia throughout the period; and
(e) the person does not have a partner with a rent increased
pension; and
(f) neither the person nor the person's partner is qualified for
additional family payment under the Social Security Act for a
dependent child of the person.
Note 1: For 'partner with a rent increased pension' see point D3.
Note 2: For 'rent', 'Government rent' and 'ineligible homeowner' see
section 13 of the Social Security Act.
Note 3: For 'independent' see clause 2 of this Schedule.
Note 4: For 'rent threshold rate' see point D2.

Rent threshold rate
D2. A person's rent threshold rate depends on the person's family
situation. Work out which family situation in Table DA applies to the
person. The rent threshold rate is the corresponding amount in column
3.
TABLE DA
RENT THRESHOLD RATES
column 1
item column 2
person's family situation column 3
amount a fortnight
1. Not member of a couple $61.80
2. Partnered-partner does not have rent
increased benefit $103.20
3. Partnered-partner has rent increased benefit $103.20
4. Partnered-member of illness separated couple $61.80
5. Partnered-member of respite care couple $61.80
6. Partnered (partner in gaol) $61.80
Note 1: For 'member of a couple', 'partnered', 'illness separated
couple', 'respite care couple' and 'partnered (partner in gaol)' see
section 4 of the Social Security Act.
Note 2: For 'partner with rent increased benefit' see point D5.
Note 3: The column 3 amounts are indexed 6 monthly in line with CPI
increases (see Division 13).

Partner with rent increased pension
D3. A person has a partner with a rent increased pension, for the
purposes of point D1, if:
(a) the partner is living with the person in their home; and
(b) the partner is receiving a social security pension or service
pension; and
(c) the partner's pension rate is increased to take account of rent.

Factors affecting rate of rent assistance
D4. The rate of rent assistance depends on:
(a) the fortnightly rent paid or payable by the person; and
(b) whether or not the person has a partner who has a rent increased
benefit.

Partner with rent increased benefit
D5. A person's partner has a rent increased benefit for the purposes
of this MODULE if the partner:
(a) is living with the person in their home; and
(b) either:

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(i) is receiving a youth training allowance, job search allowance,
newstart allowance or sickness allowance the rate of which is
increased to take account of rent (whether or not the rate would be
nil except for the increase to take account of rent); or
(ii) would be receiving such an allowance except for the amount
of the person's ordinary income reduction under point G15 in MODULE
G.
Note: For the treatment of rent paid by a member of a couple see
points D8 and D9.

Rate of rent assistance
D6. The rate of rent assistance a fortnight is worked out using
Table DB. Work out the person's family situation and calculate Rate A
for the person using the corresponding formula in column 3. This will
be the person's rate of rent assistance but only up to the person's
maximum rent assistance rate. The person's maximum rent assistance
rate is Rate B for the person worked out using column 4 of the Table.
TABLE DB
RATE OF RENT ASSISTANCE
column 1
item column 2
person's family
situation column 3
Rate A column 4
Rate B
1. Not member of couple 3 x (fortnightly rent-$61.80)
4 $69.20
2. Partnered-
partner does not
have rent increased
benefit 3 x (fortnightly rent-$103.20)
4 $65.20
3. Partnered-
partner has rent
increased benefit 3 x (fortnightly rent-$103.20)
4 $32.60
4. Partnered-
member of illness
separated couple 3 x (fortnightly rent-$61.80)
4 $69.20
5. Partnered-
member of respite
care couple 3 x (fortnightly rent-$61.80)
4 $69.20
6. Partnered
(partner in gaol) 3 x (fortnightly rent-$61.80)
4 $69.20
Note 1: For 'member of a couple', 'partnered', 'illness separated
couple', 'respite care couple' and 'partnered (partner in gaol)' see
section 4 of the Social Security Act.
Note 2: For partner with a'rent increased benefit' see point D5.
Note 3: The rent threshold amounts in column 3 are indexed 6 monthly
in line with CPI increases (see Division 13).
Note 4: The Rate B amounts are indexed 6 monthly in line with CPI
increases (see Division 13).

Fortnightly rent
D7. Fortnightly rent is the fortnightly rent paid or payable by the
person whose rate of youth training allowance is being calculated.

Rent paid by a member of a couple
D8. If a person is a member of a couple and the person's partner is
living with the person in their home, any rent that the person's
partner pays or is liable to pay in respect of the home is to be
treated as paid or payable by the person.

Rent paid by a member of an illness separated couple
D9. If a person is a member of an illness separated couple, any rent
that the person's partner pays or is liable to pay in respect of the
premises or lodgings occupied by the person is to be treated as paid
or payable by the person.
Note: For 'illness separated couple' see section 4 of the Social
Security Act.
MODULE E-ASSETS TEST
E1. This is how to work out the value of a person's assets and to work
out the person's assets value limit:
Method statement
Step 1. Work out whether the assets test applies to the person using
points E2 to E4.
Step 2. If the assets test applies to the person, work out the

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person's assets value limit using point E5.
Step 3. Work out the value of the person's assets using points E6 to
E20.
Step 4. Work out whether the value of the person's assets is more
than the person's assets value limit.

Persons affected
E2. The assets test applies to a person unless the person is excluded
from the assets test under point E3 or E4.

Exclusion of person if partner receiving certain kinds of income
support
E3. A person is excluded from the application of the assets test if
the person is independent but the person's partner is receiving:
(a) a pension, benefit or allowance referred to in Schedule 2; or
(b) job search allowance, newstart allowance, sickness allowance or
special benefit under the Social Security Act; or
(c) a payment under Part 5 or 6 of the Farm Household Support Act
1992; or
(d) a full-time educational or vocational training allowance from
the Commonwealth (including under the AUSTUDY or ABSTUDY scheme); or
(e) a payment referred to in paragraph 97(1)(c) of the AUSTUDY
Regulations.

Exclusion of person if parental income test is not applied
E4. A person is excluded from the application of the assets test if:
(a) the person is not independent; but
(b) in the working out of the rate of youth training allowance
payable to the person, the parental income test is not applied because
of point F3 (other than paragraph (g)) in MODULE F.

Person's asset value limit
E5. A person's assets value limit is:
(a) if the person:
(i) is independent; and
(ii) is not a member of a couple;
$111,870 (or, if a higher amount is prescribed by the regulations,
that higher amount); or
(b) if the person:
(i) is independent; and
(ii) is a member of a couple;
$159,470 (or, if a higher amount is prescribed by the regulations,
that higher amount); or
(c) if the person is not independent-$375,630 (or, if a higher
amount is prescribed by the regulations, that higher amount).

Value of assets of partner or family members included in certain
circumstances
E6. The value of the assets of a person (the 'relevant person') is the
sum of the following values:
(a) the value of the assets of the relevant person (disregarding
paragraphs (b) and (c));
(b) if the relevant person is independent-the value of the assets of
a person who is the partner of the relevant person;
(c) if the relevant person is not independent-the value of the
assets of each person who is a family member of the relevant person.

Points E7 to E20 apply for the purpose of working out the value of
assets of the relevant person and of any person who is the partner, or
a family member, of the relevant person.

Assets include property not specifically excluded
E7. Assets are any kind of property, whether in Australia or
elsewhere, unless they are excluded by point E12, E14, E15 or E16.

Disposals for low or nil value
E8. If a person disposed of an asset in the last 5 years for
unreasonably low or no value:
(a) it is included in the person's assets; and
(b) its value is taken to be its value when the person disposed of
it less what he or she got for it.

If person reduces value
E9. If a person reduces the value of an asset directly or indirectly,
the value of the asset is taken to be its value before the person
acted to reduce it (except if the person reduces the value of a
business by reducing the extent to which he or she works in the
business).

Debts to person are included

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E10. A person's assets include any money owed to the person, but do
not include any interest on the money that is not yet due.

Assets of trust in which person benefits
E11. A person's assets include:
(a) any benefit to which the person is entitled directly or
indirectly out of the assets of a trust; and
(b) any asset of a trust that the person can deal with directly or
indirectly to his or her advantage; and
(c) any interest in the assets of a trust which has been assigned to
someone else but which the person can directly or indirectly control.

Exclusion of principal home
E12. Any right or interest in a person's principal home is not
included in the person's assets and no account is taken of an amount
received from the sale of a person's principal home that he or she is
likely to use within 12 months of the sale to buy another principal
home.
Note: For 'principal home' see subsections 11(5), (6) and (7) of the
Social Security Act.

Exclusion of certain farm assets
E13. If a drought relief exceptional circumstance certificate referred
to in section 8A of the Farm Household Support Act 1992 was issued in
respect of a person, or in respect of a family member of a person, and
has effect, the person's assets do not include any asset that is an
exempt asset in respect of the person, or in respect of the family
member of the person, as the case may be, within the meaning of that
Act.

Exclusion of items for use by disabled person
E14. A person's assets do not include:
(a) any personal property (such as a wheelchair) designed for use by
a disabled person; or
(b) any modification to personal property (such as a motor vehicle)
to enable it to be used by a disabled person.

Exclusion of debts incurred to obtain or improve an asset
E15. If a person incurred a debt in order to obtain an asset or to
make improvements to it, the value of the asset is reduced by the
outstanding amount of the debt.

Exclusion of assets outside person's control
E16. Any asset to which a person is entitled but which the person
cannot obtain through circumstances beyond the person's control is not
included in the person's assets.

How business assets are treated
E17. Assets of a business are treated in accordance with points E18
and E19. For this purpose, a business includes:
(a) the carrying on of primary production; and
(b) the provision of professional services.

Interest in business discounted in certain circumstances
E18. Subject to point E19, 50% of the value of a person's interest in
the assets of a business is disregarded if the person, or his or her
partner, is wholly or mainly engaged in the business and the business:
(a) is owned by the person; or
(b) is carried on by a partnership of which the person is a member;
or
(c) is carried on by a company of which the person is a member; or
(d) is carried on by a trustee of a trust in which the person is a
beneficiary.

Assets to which discounting does not apply
E19. Point E18 does not apply to assets of a business that are of any
of the following kinds:
(a) cash on hand, bank deposits, bank bonds, or similar readily
realisable assets;
(b) shares in companies, or rights in relation to shares;
(c) rights to deal in real or personal property;
(d) assets leased out by the business, unless leasing is a major
activity of the business;
(e) assets used for private or domestic purposes by the owners of
the business.

Evidence of value of assets
E20. A written statement of the value of an asset, signed by an
officer of the Australian Valuation Office, is prima facie evidence of
its value. For this purpose, a document purporting to be such a

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statement is taken to be such a statement, and to have been signed by
such an officer, unless the contrary is proved.
Note 1: For 'member of a couple' and'partner' see section 4 of the
Social Security Act.
Note 2: For 'family member' see subsection 23(1) of the Social
Security Act.
Note 3: For 'independent' see clause 2 of this Schedule.
Note 4: For 'principal home' see subsections 11(5) to (7) of the
Social Security Act.
MODULE F-PARENTAL INCOME TEST
Effect of parental income on maximum payment rate
F1. This is how to work out the effect (if any) of the income of a
person's parent or parents on the person's maximum payment rate.
Method statement
Step 1. Work out whether the parental income test applies to the
person using points F2 and F3.
Step 2. If the parental income test applies to the person, identify:
(a) the people who are to be regarded as the person's parents; and
(b) the relevant accounting period.
Note 1: For 'parent' see clause 1 of this Schedule.
Note 2: For 'relevant accounting period' see points F4 to F7.
Step 3. Work out the person's combined parental income for the
relevant accounting period using points F8 to F10.
Step 4. Work out the person's combined parental fringe benefits value
for the relevant accounting period using points F11 to F13.
Step 5. Add the amount obtained in Step 3 to the amount obtained in
Step 4: the result is called the parental adjusted income.
Step 6. Work out the deductions for independent children using point
F15.
Step 7. Take the amount of the deductions from the parental adjusted
income: the result is called the parental net income.
Step 8. If the parental net income is equal to or less than:
(a) $21,660; or
(b) if a higher amount is prescribed by the regulations-that higher
amount;
(the parental free area), the parental income test does not affect the
maximum rate of youth training allowance and Steps 9 to 11 should be
disregarded.
Step 9. If the parental net income exceeds the parental free area,
work out the amount of the excess and divide it by 4: the result is
called the annual parental income excess.
Step 10. Divide the annual parental income excess by 26: the result
is called the fortnightly parental income excess.
Step 11. The person's reduction for parental income is the
fortnightly parental income excess.
Note 1: For 'family member' see subsection 23(1) of the Social
Security Act.
Note 2: For 'fringe benefits year' see section 58.
Note 3: For 'dependent child' see section 5 of the Social Security Act
and point F15.

Persons affected by the parental income test
F2. Subject to point F3, the parental income test applies to the
person if the person is not independent.

Parent receiving Commonwealth benefit
F3. The parental income test does not apply to the person while a
parent of the person:
(a) gets job search allowance, newstart allowance or sickness
allowance or gets special benefit under the Social Security Act; or
(b) gets a payment under the Commonwealth scheme known as the TCF
Special Allowance; or
(c) gets a payment of a pension, benefit or allowance referred to in
Schedule 2; or
(d) gets a payment under Part 5 or 6 of the Farm Household Support
Act 1992; or
(e) gets AUSTUDY or ABSTUDY and:
(i) also gets dependent spouse allowance under AUSTUDY or ABSTUDY;
or
(ii) has a partner who gets AUSTUDY or ABSTUDY; or
(iii) is a single parent; or
(f) gets a payment under paragraph 91(1)(ab) or (d) of the AUSTUDY
Regulations; or
(g) is a disadvantaged person for the purposes of sections 5B and 5D
of the Health Insurance Act 1973.

Relevant accounting period
F4. Subject to points F5, F6 and F7, the relevant accounting period,
in relation to the person at a particular time (the'relevant time'),
is the accounting period ending on the last 30 June before the

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calendar year in which the relevant time occurs.

If parent adopts substituted accounting period
F5. If a parent of the person uses section 18 of the Income Tax
Assessment Act to adopt an accounting period that ends on a day other
than 30 June, the relevant accounting period in relation to the person
at the relevant time is the most recent accounting period so adopted
that ended before the calendar year in which the relevant time occurs.

Relevant accounting period if parent derived exempt income from
foreign country
F6. If:
(a) point F5 does not apply to a person at the relevant time; and
(b) the income of a parent of the person for the period that, apart
from this point, would be the relevant accounting period consists
principally of income derived in one foreign country; and
(c) the law of that country levies income tax based on an accounting
period that ends on a day other than 30 June; and
(d) the parent's income derived in that country is exempt income
under the Income Tax Assessment Act;
the relevant accounting period in relation to the person at the
relevant time is the most recent accounting period referred to in
paragraph (c) that ended before the calendar year in which the
relevant time occurs.

Variation of accounting period if parental income falls
F7. If the amount that would be the person's parental adjusted income
for the accounting period ending in the calendar year before the
calendar year in which the relevant time occurs:
(a) is substantially less than the person's adjusted parental income
for the period that would be the relevant accounting period apart from
this point; and
(b) is likely to continue to remain substantially less for 2 years
after the later of the first day of the period referred to in
paragraph (a) and the day when the parent's income reduced;
the relevant accounting period in relation to the person at the
relevant time is the accounting period ending in the calendar year in
which the relevant time occurs.

Parental income
F8. The person's combined parental income for the relevant accounting
period is the income of his or her parent, or the total income of his
or her parents, as the case requires, for that period.

What is included in income
F9. The income of a parent of the person for the relevant accounting
period comprises:
(a) the parent's taxable income within the meaning of subsection
6(1) of the Income Tax Assessment Act for the period; and
(b) any other income derived by the parent during the period on
which income tax is payable to the government of a foreign country;
and
(c) any amount received during the period:
(i) by, or on behalf of, the parent for the maintenance of the
parent or of a dependant of the parent; or
(ii) by a dependant of the parent for the maintenance of the
dependant; and
(d) any net property loss of the parent for the period.
Note: For 'net property loss' see subsection 58(1).

Income reduced by maintenance
F10. A parent's income is reduced by maintenance paid by the parent:
(a) for the upkeep of a child of the parent if the parent does not
have care of the child; or
(b) to a former partner of the parent.

Combined parental fringe benefits value
F11. The person's combined parental fringe benefits value for the
relevant accounting period is:
(a) if the person had only one parent in that period-the amount (if
any) of the excess fringe benefits value for that parent for that
period; or
(b) if the person had more than one parent in that period-the sum of
the respective amounts (if any) of the excess fringe benefits values
for the parents for that period.

For the purposes of this point, the excess fringe benefits value for a
parent of the person for the relevant accounting period is the amount
(if any) by which the total of the values of the fringe benefits
received by that parent in the most recent fringe benefits year that

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ended before the end of the relevant accounting period (as worked out
under points F12 and F13) is more than $1,000.

How to work out value of fringe benefits
F12. The fringe benefits received by a parent of the person comprise
any or all of the following benefits:
(a) a car benefit within the meaning of Part 2 of Schedule 3 that is
not an exempt car benefit within the meaning of Division 2 of that
Part;
(b) a health insurance benefit within the meaning of Part 3 of that
Schedule;
(c) a housing benefit within the meaning of Part 4 of that Schedule
that is not an exempt housing benefit within the meaning of Division 2
of that Part;
(d) a loan benefit within the meaning of Part 5 of that Schedule
that is not an exempt loan benefit within the meaning of Division 2 of
that Part;
(e) a school fees benefit within the meaning of Part 6 of that
Schedule;
whether the benefits are received in or outside Australia, and the
value of a fringe benefit is, subject to point F13, the value worked
out in accordance with the relevant provision of that Schedule.

Value if statement provided by employer
F13. If a parent of the person gives to the Department of Social
Security a statement by the parent's employer, or statements by each
of the parent's employers, of the amount for which tax is payable by
the employer, or employers, under the Fringe Benefits Tax Assessment
Act 1986 for fringe benefits that are provided by the employer or
employers to the parent in the most recent fringe benefits year that
ended before the end of the relevant accounting period, that amount,
or the total of those amounts, is taken to be the value of the fringe
benefits received by the parent in that year.

Parental adjusted income
F14. The sum of the person's combined parental income, and the
person's combined parental fringe benefits value, for the relevant
accounting period is the person's parental adjusted income.

Deductions for dependent children
F15. The deduction for a dependent child of a person's parent at the
relevant time is:
(a) $3,700 (or, if a higher amount is prescribed by the regulations,
that higher amount) for a child who:
(i) is at least 16 years of age but is under 23 years of age; and
(ii) is undertaking full-time study; and
(iii) does not qualify for the independent living allowance under
the AUSTUDY Regulations; and
(iv) is not receiving a pension, benefit or allowance referred to
in Schedule 2; and
(b) $3,700 (or, if a higher amount is prescribed by the regulations,
that higher amount) for a child in respect of whom a boarding
allowance or second home allowance is payable under the Assistance for
Isolated Children scheme; and
(c) $1,200 (or, if a higher amount is prescribed by the regulations,
that higher amount) for a child who:
(i) is under 16 years of age; and
(ii) is not a child referred to in paragraph (b); and
(d) $2,500 (or, if a higher amount is prescribed by the regulations,
that higher amount) for a child who:
(i) is under 16 years of age; and
(ii) is additional to the child referred to in paragraph (c); and
(iii) is not a child referred to in paragraph (b).

For the purposes of this point, a child is not a dependent child of a
person's parent if the parent pays maintenance for the child.

Parental net income
F16. The person's parental net income is the amount obtained after
deducting the total amount of the deductions for the dependent
children of the person's parents from the person's parental adjusted
income.

Annual parental income excess
F17. If the person's parental net income exceeds the parental free
area, the amount of the excess divided by 4 is the person's annual
parental income excess.

Rounding off
F18. For the purposes of point F17:

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(a) if the amount obtained by dividing the amount of the excess
referred to in that point by 4 is an amount of dollars and cents-the
amount of cents is to be disregarded; and
(b) if the amount so obtained is less than $1-the amount obtained is
taken to be nil.

Fortnightly parental income excess
F19. The person's annual parental income excess divided by 26 is the
person's fortnightly parental income excess.

Reduction for parental income
F20. The person's reduction for parental income is the amount equal to
the person's fortnightly parental income excess.
MODULE G-ORDINARY INCOME TEST
Effect of ordinary income on maximum payment rate
G1. This is how to work out the effect of a person's ordinary income
on the person's maximum payment rate:
Method statement
Step 1. Work out the amount of the person's ordinary income on a
fortnightly basis.
Note 1: For the treatment of the ordinary income of a partner who is
receiving a social security pension or a service pension see points
G2, G3 and G4.
Note 2: For the treatment of amounts received from friendly societies
see point G5.
Step 2. Work out the person's ordinary income free area using points
G12 to G14.
Note: A person's ordinary income free area is the maximum amount of
ordinary income the person can have without affecting the person's
benefit rate.
Step 3. Work out whether the person's ordinary income is more than
the person's ordinary income free area.
Step 4. If the person's ordinary income is not more than the person's
ordinary income free area, the person's ordinary income excess is nil.
Step 5. If the person's ordinary income is more than the person's
ordinary free area, the person's ordinary income excess is the
person's ordinary income less the person's ordinary income free area.
Step 6. Use the person's ordinary income excess to work out the
person's ordinary income reduction using points G15 and G16.
Note 1: For 'ordinary income' see subsection 8(1) of the Social
Security Act.
Note 2: The application of the ordinary income test is affected by
provisions concerning:
. investment income (sections 177 to 196);
. disposal of income (sections 215 to 220);
. benefits earnings credit (sections 221 to 223);
. Veterans' Entitlements Act earnings credit (point G4).

Ordinary income of members of couples
G2. Subject to point G3, the ordinary income of a person who is a
member of a couple is taken for the purposes of this MODULE to include
the ordinary income of the person's partner.

Exception
G3. Point G2 does not apply to ordinary income of the person's partner
in the form of:
(a) AUSTUDY allowance; or
(b) ABSTUDY allowance; or
(c) financial supplement under the Student Financial Supplement
Scheme; or
(d) a payment under Part 5 or 6 of the Farm Household Support Act
1992; or
(e) payments under the LEAP program.
Note: For 'LEAP program' see subsection 23(1) of the Social Security
Act.

Partner's Veterans' Entitlements Act earnings credit to be taken into
account
G4. If:
(a) a person is a member of a couple; and
(b) the person's partner is receiving a service pension; and
(c) an amount earned by the partner is disregarded under section 49
of the Veterans' Entitlements Act;
that amount is also disregarded in working out the ordinary income of
the person for the purposes of point G2.

Friendly society amounts
G5. The ordinary income of a person:
(a) to whom a youth training allowance is payable because of section
66 (person previously receiving youth training allowance who becomes

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incapacitated for work); or
(b) who is a partner of a person to whom paragraph (a) applies;
is not to include any amount received from an approved friendly
society in respect of the incapacity because of which the person is
qualified for the youth training allowance.

Termination payments
G6. If:
(a) a person's employment has been terminated; and
(b) as a result the person is entitled to a lump sum payment from
the person's former employer;
the person is taken to have received the lump sum payment on the day
on which the person's employment was terminated.

Ordinary income includes certain periodical payments from relatives
G7. Subject to point G8 (and despite paragraph 8(8)(z) of the Social
Security Act ), a person's ordinary income for the purposes of this
MODULE includes a periodical payment or benefit by way of gift or
allowance from the father, mother, son, daughter, brother or sister of
the person.

Board and lodging
G8. A person's ordinary income is not to include a payment to the
person for board or lodging provided by the person to the person's
father, mother, son, daughter, brother or sister.

Ordinary income generally taken into account when first earned,
derived or received
G9. Subject to points G10 and G11, ordinary income is to be taken into
account in the fortnight in which it is first earned, derived or
received.

Ordinary income received at intervals longer than one fortnight
G10. If:
(a) a person receives a number of ordinary income payments; and
(b) each payment is in respect of a period (the'work period') that
is greater than a fortnight; and
(c) there is reasonable predictability or regularity as to the
timing of the payments; and
(d) there is reasonable predictability as to the quantum of the
payments;
the person is taken to receive in a fortnight falling within, or
overlapping with, a work period an amount calculated by:
(e) dividing the amount received by the number of days in the work
period (the'daily rate'); and
(f) multiplying the daily rate by the number of days in the
fortnight that are also within the work period.
Note: For 'ordinary income' see subsection 8(1) of the Social Security
Act.

Payment of arrears of periodic compensation payments
G11. If:
(a) at the time of an event that gives rise to an entitlement of a
person to compensation, the person is receiving youth training
allowance; and
(b) in relation to that entitlement, the person receives a payment
of arrears of periodic compensation;
the person is taken to receive, in a fortnight falling within, or
overlapping with, the periodic payments period, an amount calculated
by:
(c) dividing the amount received by the number of days in the
periodic payments period (the 'daily rate'); and
(d) multiplying the daily rate by the number of days in the
fortnight that are also within the periodic payments period.
Note: For 'periodic payments period' see section 17 of the Social
Security Act.

Ordinary income free area
G12. A person's ordinary income free area is, subject to points G13
and G14, $60.
Note: The ordinary income free area is used in the ordinary income
test in relation to fortnightly income.

Additional income free area for income from personal exertion
G13. If:
(a) a person is not a member of a couple; and
(b) the person's ordinary income is more than $60; and
(c) the person's ordinary income includes income from personal
exertion by the person;
the person's ordinary income free area is worked out using Table G-1.

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Take the amount in column 1 and add whichever is the lesser of Rate A
and Rate B in column 2.
TABLE G-1
FREE AREA FOR PERSON WITH INCOME FROM PERSONAL EXERTION
WHO IS NOT MEMBER OF COUPLE
column 1
basic free area column 2
person's income from personal exertion
column 2A column 2B
Rate A Rate B
$60.00 Rate of income from personal exertion $30.00
Note: For 'income from personal exertion' see subsection 8(1) of the
Social Security Act.

Additional ordinary income free area for partner's income from
personal exertion
G14. If:
(a) a person is a member of a couple; and
(b) the person's ordinary income is more than $60; and
(c) the person's ordinary income includes income from personal
exertion by the person or the person's partner;
the person's ordinary income free area is worked out using Table G-2.
Take the amount in column 1 and add:
(d) if the person has income from personal exertion-whichever is the
lesser of Rate A and Rate B in column 2; and
(e) if the person's partner has income from personal exertion-whichever is the lesser of Rate A and Rate B in column 3.
TABLE G-2
FREE AREA FOR MEMBERS OF COUPLE WITH INCOME FROM PERSONAL EXERTION
column 1
basic free area column 2
person's income from
personal exertion column 3
partner's income from
personal exertion
$60 column 2A column 2B column 3A column 3B
Rate A Rate B Rate A Rate B
rate of rate of
income from income form
personal personal
exertion $50 exertion $50

Reduction for ordinary income in excess of the ordinary income free area
G15. A person's ordinary income reduction is worked out using Table
G-3. Work out which family situation applies to the person. The
ordinary income reduction is the amount worked out using the
corresponding calculation in the'lower range excess reduction' column
plus the amount (if any) worked out using the corresponding
calculation in the 'upper range excess reduction' column.
TABLE G-3
ORDINARY INCOME REDUCTION
column 1 column 2 column 3 column 4
item person's family lower range excess upper range excess
situation reduction reduction
1. Not member of a
couple lower range excess
2 upper range excess
2. Member of a couple lower range excess
4 upper range excess
2
Note: For 'member of a couple' see section 4 of the Social Security
Act.

Lower range excess and upper range excess
G16. If a person has an ordinary income excess:
(a) the part of the excess that is not more than $80 is the person's
lower range excess; and
(b) the part (if any) of the excess that is more than $80 is the
person's upper range excess.

Ordinary income excess
G17. A person's ordinary income excess is the person's ordinary income
less the person's ordinary income free area.
MODULE H-REMOTE AREA ALLOWANCE
Remote area allowance-person physically in remote area
H1. An amount by way of remote area allowance is to be added to a
person's rate of youth training allowance if:
(a) the person's rate of youth training allowance apart from this
point is greater than nil; and
(b) the person's usual place of residence is situated in the remote

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area; and
(c) the person is physically present in the remote area.
Note 1: For 'remote area' see subsection 14(1) of the Social Security
Act.
Note 2: A person may be considered to be physically present in a
remote area during temporary absences-see subsection 14(2) of the
Social Security Act.

Rate of remote area allowance
H2. The rate of remote area allowance payable to a person is worked
out using Table H. Work out which family situation in the Table
applies to the person. The rate of remote area allowance is the
corresponding amount in column 3 plus an additional corresponding
amount in column 4 for each AFP child of the person.
TABLE H
REMOTE AREA ALLOWANCE
column 1
item column 2
person's family
situation column 3
basic allowance column 4
additional
allowance for
each AFP child
1. Not member of couple $17.50 $7.00
2. Partnered $15.00 $7.00
3. Member of illness
separated couple $17.50 $7.00
4. Partnered (partner in
gaol) $17.50 $7.00
Note 1: Item 4 includes illness separated couples.
Note 2: For 'AFP child' see section 6 of the Social Security Act.

Meaning of remote area allowance
H3. In Table H, remote area allowance means an amount added to a
person's youth training allowance by way of remote area allowance.
In remote area
H4. For the purposes of Table H, a person is in the remote area if:
(a) the person's usual place of residence is in the remote area; and
(b) the person is physically present in the remote area.
Dependent children must be physically present in Australia
H5. Additional allowance is not payable for a dependent child unless
the dependent child is physically present in Australia.
Special rule if partner has an AFP child but is not receiving a
pension
H6. If:
(a) a person who is a member of a couple is qualified for an amount
by way of additional allowance; and
(b) the person's partner is not receiving a youth training allowance
or a pension or benefit under the Social Security Act; and
(c) the person's partner has an AFP child;
the child is taken, for the purposes of this MODULE, to be an AFP
child of the person.

Special rule if partner has an AFP child but is not receiving
additional allowance for the AFP child
H7. If:
(a) a person who is a member of a couple is qualified for an amount
by way of remote area allowance; and
(b) the person's partner has an AFP child; and
(c) the person's partner is not receiving additional allowance for
the AFP child;
the child is taken, for the purposes of this MODULE, to be an AFP
child of the person.

SCHEDULE 2 Modules E and F
PENSIONS, BENEFITS AND ALLOWANCES
Item No. TYPE OF PENSION, BENEFIT AND ALLOWANCE
1 Age pension (Part 2.2 of the Social Security Act)
2 Service pension (age) (Section 36 of the Veterans'
Entitlements Act)
3 Defence widow's
pension-if the widow
has no dependent
children (Section 70 of the Veterans'
Entitlements Act)
4 War widow's pension-if
the widow has no
dependent children (Section 13 of the Veterans'
Entitlements Act)

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5 Bereavement allowance (Part 2.7 of the Social Security Act)
6 Wife pension-if husband
gets age pension (Part 2.4 of the Social Security Act)
7 Service pension
(partner)-if husband
gets service pension
(age) (Section 38 of the Veterans'
Entitlements Act)
8 Mature age allowance (Part 2.12A of the Social Security
Act)
9 Mature age partner's
allowance (Part 2.12A of the Social Security
Act)
10 Rehabilitation
allowance (Section 35 of Schedule 1A to the
Social Security Act)
11 Commonwealth allowance (New Enterprise Incentive Scheme
(NEIS))
12 Carer pension (Part 2.5 of the Social Security Act)
13 Service pension (carer) (Section 39 of the Veterans'
Entitlements Act)
14 Defence widow's
pension-if the widow
has a dependent child (Section 70 of the Veterans'
Entitlements Act)
15 Disability support
pension (Part 2.3 of the Social Security Act)
16 Service pension
(invalidity) (Section 37 of the Veterans'
Entitlements Act)
17 Sole parent pension (Part 2.6 of the Social Security Act)
18 Widow B pension (Part 2.8 of the Social Security Act)
19 Tuberculosis allowance (Section 9 of the Tuberculosis Act
1948)
20 War widow's pension-if
the widow has a
dependent child (Section 13 of the Veterans'
Entitlements Act)
21 Wife pension-if husband
gets a disability
support pension (Part 2.4 of the Social Security Act
as in force on 11 November 1991)
22 Wife's service
pension-if husband
gets an invalidity
service pension (Section 40 of the Veterans'
Entitlements Act)
23 Special benefit (Part 2.15 of the Social Security
Act)
24 Commonwealth allowance
for full-time
vocational training,
except:
(a) AUSTUDY;
(b) an allowance under
the Veteran's
Children Education
Scheme;
(c) an allowance under:
(i) the Assistance for
Isolated Children
Scheme; or
(ii) the ABSTUDY Scheme; or
(iii) the Aboriginal
Overseas Study
Assistance Scheme. (Part 7 of the Veterans' Entitlements
Act)
25 Payments under
paragraphs 91(1)(a)
and (c) and 97(1)(b)
and (ba) of the
AUSTUDY Regulations

SCHEDULE 3 MODULE F, Schedule 1
FRINGE BENEFITS
PART 1-PRELIMINARY
Definitions
1. In this Schedule, unless the contrary intention appears:
'associate' has the same meaning as in the Fringe Benefits Tax
Assessment Act 1986;

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'employee':
(a) means a person's parent or a person's partner who is in
employment; and
(b) includes a person who:
(i) holds or performs the duties of an appointment, office or
position under the Constitution or under a law of the Commonwealth or
of a State or Territory; or
(ii) is otherwise in the employment of the Commonwealth or of a
State or Territory; or
(iii) is a member of the Commonwealth Parliament or of a State
Parliament or a Territory legislature;
'employer':
(a) means a person who pays, or is liable to pay, salary or wages to
an employee; and
(b) includes:
(i) in respect of an unincorporated body of persons, except a
partnership-the manager or other principal officer of that body; and
(ii) in respect of a partnership-each partner; and
(iii) the Commonwealth or a State or Territory or an authority of
the Commonwealth or of a State or Territory;
'employment', in relation to a person, means the holding of any
office or appointment, the performance of any functions or duties, the
engaging in of any work or the doing of any act or thing that results,
will result or has resulted in the person being treated as an
employee;
'market exchange rate', in relation to a foreign currency, means the
on-demand airmail buying rate for the currency that is available at
the Commonwealth Bank of Australia;
'place of residence', in relation to a person, means:
(a) a place where the person resides; or
(b) a place where the person has sleeping accommodation;
whether on a permanent or temporary basis and whether or not on a
shared basis;
'recipient', means a person's parent or a person's partner;
'salary or wage', means salary, wages, commission, bonuses or
allowances paid (whether at piece-work rates or otherwise) to an
employee in the capacity of employee;
'working day', in relation to an office of the Commonwealth Bank of
Australia in a place, means a day (except a Saturday, a Sunday or a
day that is a public holiday at that place) when the office is open to
the public for business.

Foreign currency rates to be used in calculations
2.(1) If the value of a fringe benefit is expressed in a foreign
currency, the value of the fringe benefit is to be calculated in
Australian currency using the market exchange rate for 1 July in the
relevant fringe benefits year.

(2) If there is no market exchange rate for 1 July in the relevant
fringe benefits year, the market exchange rate to be used is the
market exchange rate that applied on the last working day before that
1 July.
PART 2-CAR BENEFITS
Division 1-What is a car benefit?
Definitions
3. In this Part, unless the contrary intention appears:
'arrangement' means:
(a) an agreement, arrangement, understanding, promise or
undertaking:
(i) whether express or implied; and
(ii) whether or not enforceable, or intended to be enforceable, by
any legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course
of conduct, whether unilateral or otherwise;
'car' means a motor vehicle that is a road vehicle designed to carry
a load of less than 1 tonne, or fewer than 9 passengers, but does not
include a motor cycle or similar vehicle;
'private use', in relation to:
(a) a car; and
(b) an employee or an associate of an employee;
means use of the car by the employee or associate that is not solely
within the employee's employment;
'work-related travel', in relation to an employee, means:
(a) travel by the employee between:
(i) the employee's place of residence; and
(ii) the employee's place of employment or any other place from,
or at, which the employee performs the duties of his or her
employment; or
(b) travel by the employee that is incidental to travel in the
course of performing the duties of his or her employment.

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Car benefits
4.(1) An employee receives a car benefit if:
(a) a car under the control of another person (the'provider'):
(i) is applied to a private use by the employee or an associate of
the employee; or
(ii) is taken under subclause (2), (3) or (4) to be available for
the private use of the employee or an associate of the employee; and
(b) either:
(i) the provider is the employer, or an associate of the employer,
of the employee; or
(ii) the car is applied or available in that way under an
arrangement between:
(A) the provider or another person; and
(B) the employer or an associate of the employer.

(2) A car is taken to be available at a particular time for the
private use of the employee or an associate of the employee if:
(a) the car is under the control of a person who is:
(i) the employer; or
(ii) an associate of the employer; or
(iii) another person with or for whom the employer or associate
has an arrangement relating to the use or availability of the car; and
(b) the car is garaged or kept at or near a place of residence of
the employee or of an associate of the employee.

(3) A car is taken to be available at a particular time for the
private use of the employee or an associate of the employee if:
(a) the car is held by a person who is:
(i) the employer; or
(ii) an associate of the employer; or
(iii) another person with or for whom the employer or associate
has an arrangement relating to the use or availability of the car; and
(b) the car is not at business premises of:
(i) the employer; or
(ii) an associate of the employer; or
(iii) some other person with or for whom the employer or associate
has an arrangement relating to the use or availability of the car; and
(c) either:
(i) the employee is entitled to apply the car to a private use at
that time; or
(ii) the employee is not performing the duties of his or her
employment at that time and has custody or control of the car; or
(iii) an associate of the employee is entitled to use the car at
that time; or
(iv) an associate of the employee has control of the car at that
time.

(4) For the purposes of subclause (3), if a prohibition on the use of
a car, or on the application of a car for a private use, by a person
is not consistently enforced, the person is taken to be entitled to
use the car, or to apply the car to a private use, despite the
prohibition.

(5) For the purposes of this clause, a car that is let on hire to a
person under a hire-purchase agreement is taken:
(a) to have been bought by the person when the person first took the
car on hire; and
(b) to have been owned by the person in the fringe benefits year
concerned.

(6) A reference in this Part to a car held by the provider does not
include a reference to:
(a) a taxi let on hire to the provider; or
(b) a car let on hire to the provider under an agreement of a kind
that is ordinarily entered into by persons taking cars on hire on an
hourly, daily, weekly or other short-term basis.

(7) Paragraph (6) (b) does not apply if the car has been, or may
reasonably be expected to be, on hire under successive agreements of a
kind that results in substantial continuity of the hiring of the car.
Division 2-Exempt car benefits
Exempt car benefits
5.(1) A car benefit provided in respect of the employment of the
employee is an exempt car benefit if:
(a) the car is:
(i) a taxi, panel van or utility truck; or
(ii) any other road vehicle designed to carry a load of less than
1 tonne (other than a vehicle designed for the principal purpose of
carrying passengers); and

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(b) the only private use of the car at a time when the benefit was
provided was:
(i) work-related travel of the employee; or
(ii) other minor, infrequent and irregular private use by the
employee or an associate of the employee.

(2) A car benefit provided as a result of the employment of the
employee is an exempt car benefit if the car was unregistered when the
car was under the control of the employee.
Division 3-Value of a car benefit
Method of valuing car benefits
6.(1) The value of a car benefit is calculated as follows:
Method statement
Step 1. Work out the engine capacity of the car and go to the
relevant Part of the Car Benefits Value Table.
Step 2. Work out how old the car is and go to the relevant row in the
Table.
Step 3. Work out how many complete months in the relevant fringe
benefits year the person had or will have the car benefit and go to
the relevant column in the Table: the number set out at the
intersection of that row and that column is the value of the car
benefit for the period of use or availability.
Note: If the person is a member of a couple, the value of the car
benefit must be halved in certain circumstances (see subclause (2)).
CAR BENEFITS VALUE TABLE
Item Car age
(in years) Period of use (in completed months)
PART A-Car engine size up to 1600cc
1 2 3 4 5 6 7 8 9 10 11 12
$ $ $ $ $ $ $ $ $ $ $ $
1 1 93.8 188 281 376 469 563 656 750 844 938 1031 1125
2 2 83.6 168 252 336 420 504 588 672 756 840 923.8 1008
3 3 74.2 148 223 297 371 445 520 594 668 742 816.4 890.6
4 4 64.5 129 193 258 322 387 451 516 580 645 709 773.4
5 5 54.7 109 164 219 273 328 383 438 492 547 601.6 656.3
6 6 44.9 89.8 135 180 225 270 314 359 404 449 494.1 539.1
7 7 35.2 70.3 105 141 176 211 246 281 316 352 386.7 421.9
8 8 25.4 50.8 76.2 102 127 152 178 203 229 254 279.3 304.7
9 9 15.6 31.3 46.9 62.5 78.1 93.8 109 125 141 156 171.9 187.5
10 10+ 5.86 11.7 17.6 23.4 29.3 35.2 41 46.9 52.7 58.6 64.45 70.31
PART B-Car engine size 1601cc to 2850cc
1 2 3 4 5 6 7 8 9 10 11 12
$ $ $ $ $ $ $ $ $ $ $ $
11 1 229 458 688 917 1146 1375 1604 1833 2063 2292 2521 2750
12 2 210 422 633 844 1055 1266 1477 1688 1898 2109 2320 2531
13 3 193 385 578 771 964 1156 1349 1542 1734 1927 2120 2313
14 4 174 349 523 698 872 1047 1221 1396 1570 1745 1919 2094
15 5 156 313 469 625 781 938 1094 1250 1406 1563 1719 1875
16 6 138 276 414 552 690 828 966 1104 1242 1380 1518 1656
17 7 120 240 359 479 599 719 839 958 1078 1198 1318 1438
18 8 102 203 305 406 508 609 711 813 914 1016 1117 1219
19 9 83.3 167 250 333 417 500 583 667 750 833 916.7 1000
20 10+ 65.1 130 195 260 326 391 456 521 586 651 716.1 781.3
PART C-Car engine size more than 2850cc
1 2 3 4 5 6 7 8 9 10 11 12
$ $ $ $ $ $ $ $ $ $ $ $
21 1 354 708 1063 1417 1771 2125 2479 2833 3188 3542 3896 4250
22 2 327 656 984 1313 1641 1969 2297 2625 2953 3281 3609 3938
23 3 302 604 906 1208 1510 1813 2115 2417 2719 3021 3323 3625
24 4 276 552 828 1104 1380 1656 1932 2208 2484 2760 3036 3313
25 5 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000
26 6 224 448 672 896 1120 1344 1568 1792 2016 2240 2464 2688
27 7 198 396 594 792 990 1188 1385 1583 1781 1979 2177 2375
28 8 172 344 516 688 859 1031 1203 1375 1547 1719 1891 2063
29 9 146 292 438 583 729 875 1021 1167 1313 1458 1604 1750
30 10+ 120 240 359 479 599 719 839 958 1078 1198 1318 1438

(2) If:
(a) the person is a member of a couple; and
(b) the person's partner receives a car benefit in the relevant
fringe benefits year; and
(c) the person's and the partner's car benefits relate to the same
car for the same period;
the value of the car benefit is halved.
PART 3-HEALTH INSURANCE BENEFITS
Division 1-What is a health insurance benefit?
Health insurance benefits
7. If:
(a) a person pays an amount to a private health insurance fund,
either directly or indirectly, for the benefit of a recipient; and

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(b) the person is the employer, or an associate of the employer, of
the recipient; and
(c) the amount is for the cost of private health insurance; and
(d) the private health insurance covers:
(i) the recipient; or
(ii) the recipient's partner; or
(iii) a dependant of the recipient or of the recipient's partner;
the payment is taken to be a health insurance benefit provided by the
person to the recipient.

Division 2-Value of a health insurance benefit
Value of health insurance benefits
8. The value of a health insurance benefit is the amount of the
payment that constitutes the health insurance benefit.
PART 4-HOUSING BENEFITS
Division 1-What is a housing benefit?
Definitions
9. In this Part, unless the contrary intention appears:
'census population', in relation to an urban centre, means the
census count on an actual location basis of the population of the
urban centre stated in the results of the Census of Population and
Housing taken by the Australian Statistician on 30 June 1981 that were
published by the Australian Statistician in the document
entitled'Persons and Dwellings in Local Government Areas and Urban
Centres';
'disadvantaged person' means a person who is intellectually,
psychiatrically or physically handicapped;
'eligible urban area' means:
(a) an area that:
(i) is situated in an area described in Schedule 2 to the Income
Tax Assessment Act; and,
(ii) is an urban centre with a census population of 28,000 or
more; or
(b) another area that is an urban centre with a census population of
14,000 or more;
Note: See paragraph 12 (7) (c).
'housing right', in relation to a person, means a lease or licence
granted to the person to occupy or use a unit of accommodation, to the
extent that the lease or licence is in force when the unit of
accommodation is the person's usual place of residence;
'mature person' means a person who has reached the age of 60 years;
'residential premises' means a house or hostel used exclusively for
the provision of residential accommodation to:
(a) mature persons or disadvantaged persons and dependent children
of mature persons or disadvantaged persons; and
(b) persons the duties of whose employment consist of, or consist
principally of, caring for persons referred to in paragraph (a); and
(c) partners and children of persons referred to in paragraph (b);
'surface route' means a route between 2 places that is not an air
route;
'unit of accommodation' includes:
(a) a house, flat or home unit; and
(b) accommodation in a house, flat or home unit; and
(c) accommodation in a hotel, hostel, motel or guesthouse; and
(d) accommodation in a bunkhouse or other living quarters; and
(e) accommodation in a ship, vessel or floating structure; and
(f) a caravan or other mobile home;
'urban centre' means an area described as an urban centre or bounded
locality in the results of the Census of Population and Housing taken
by the Australian Statistician on 30 June 1981 that were published by
the Australian Statistician in the document entitled'Persons and
Dwellings in Local Government Areas and Urban Centres'.

Housing benefits
10. A housing right granted to a recipient by a person who is the
employer, or an associate of the employer, of the recipient is taken
to be a housing benefit provided by the person to the recipient.
Division 2-Exempt housing benefits
Exempt housing benefits
11. If, in a period:
(a) the employer of a recipient is:
(i) the Commonwealth, or a State or Territory, or a Commonwealth,
State or Territory authority; or
(ii) a religious institution; or
(iii) a non-profit company;
whose activities consist of, or include, caring for
mature persons or disadvantaged persons; and
(b) the duties of the recipient's employment consist of, or consist
principally of, caring for mature persons or disadvantaged persons;
and

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(c) in the performance of those duties the recipient lives, together
with mature persons or disadvantaged persons, in residential premises
of the employer; and
(d) the fact that the recipient lives in those premises is directly
related to the provision, in the course of the performance of the
duties of the recipient's employment, of care to the mature persons or
disadvantaged persons living in those premises;
any benefit arising from the provision in that period of that
accommodation to the recipient, or to the recipient and an partner or
dependant of the recipient who resides in those premises with the
recipient, is an exempt housing benefit.
Division 3-Value of a housing benefit
Method of valuing housing benefits
12.(1) The value of a housing benefit is calculated as follows:
Method statement
Step 1. Work out the location of the unit of accommodation and go to
the appropriate row of the Housing Benefits Value Table.
Step 2. Work out the type of accommodation and go to the appropriate
column in the Table: the number set out at the intersection of that
row and that column is the amount of the weekly market rent of the
unit of accommodation.
Note: If the recipient is a member of a couple, the weekly market rent
is to be halved in certain circumstances (see subclause (4)).
Step 3. Work out how many complete weeks in the relevant fringe
benefits year the unit of accommodation was, or will be, available to
the recipient.
Step 4. Multiply the weekly market rent of the unit of accommodation
by the number obtained in Step 3: the result is the provisional value
of the housing benefit.
Step 5. Work out the allowable rent for the unit of accommodation in
the relevant fringe benefits year using subclause (3).
Note: If the recipient is a member of a couple, the allowable rent is
to be halved in certain circumstances (see subclause (4)).
Step 6. Take the allowable rent away from the provisional value of
the housing benefit: the result is the value of the housing benefit.

(2) The following table is to be used in calculating the value of a
housing benefit:
HOUSING BENEFITS VALUE TABLE
Type of accommodation
Location House, flat or home unit Any other unit
of
accommodation
$ $ $
3 or more 1-2 bedrooms
bedrooms
Metropolitan 140 120 85
Non-metropolitan 100 90 70
Special housing
location 80 80 25
Outside Australia 140 120 85
Note: For the meaning of 'metropolitan','non-metropolitan location'
and 'special housing location', see subclauses (5), (6) and (7).

(3) The allowable rent is the amount of rent that is or was payable
for the unit of accommodation in the relevant fringe benefits year by:
(a) if the recipient is not a member of a couple-the recipient; or
(b) if the recipient is a member of a couple-the recipient and the
recipient's partner.

(4) If:
(a) the recipient is a member of a couple; and
(b) the recipient's partner receives a housing benefit in the
relevant fringe benefits year; and
(c) the recipient's, and the recipient's partner's, housing benefits
relate to the same unit of accommodation for the same period;
the weekly market rent obtained in Step 2 in subclause (1) and the
allowable rent obtained in Step 5 in that subclause are both halved.

(5) Canberra and the capital cities of each State, and of the Northern
Territory, are metropolitan locations.

(6) A unit of accommodation is in a non-metropolitan location if the
unit of accommodation:
(a) is in Australia; and
(b) is not in a metropolitan location; and
(c) is not in a special housing location.

(7) A unit of accommodation is in a special housing location if the
unit is in Australia and one of the following paragraphs applies to

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it:
(a) it is in an area that is:
(i) described in Schedule 2 to the Income Tax Assessment Act; and
(ii) an urban centre with a census population of less than 28,000;
(b) it is in an area that is:
(i) not described in Schedule 2 to the Income Tax Assessment Act;
and
(ii) an urban centre with a census population of less than 14,000;
(c) at the date of commencement of this Schedule, it is not:
(i) less than 40 kilometres, by the shortest practicable surface
route, from the centre point of an eligible urban area with a census
population of less than 130,000; or
(ii) less than 100 kilometres, by the shortest practicable surface
route, from the centre point of an eligible urban area with a census
population of more than 130,000.

(8) For the purposes of paragraph (7) (c), the distance, by the
shortest practicable surface route, between a location (the 'tested
location') and the centre point of an eligible urban area is:
(a) if there is only 1 location within the eligible urban area from
which distances between the eligible urban area and other places are
usually measured-the distance, by the shortest practicable surface
route, between the tested location and that location; and
(b) if there are 2 or more locations within the eligible urban area
from which distances between parts of the eligible urban area and
other places are usually measured-the distance, by the shortest
practicable surface route, between the tested location and the
location that is the principal location of those parts.
PART 5-LOAN BENEFITS
Division 1-What is a loan benefit?
Definitions
13. In this Part, unless the contrary intention appears:
'arm's length loan', means a loan the parties to which are not under
a special duty or obligation to each other in relation to the loan;
'debtor' means a recipient who is under an obligation to pay or
repay an amount to a creditor;
'dwelling' means a unit of accommodation:
(a) that is, or is a part of, a building; and
(b) that consists wholly or substantially of residential
accommodation;
'loan' includes:
(a) an advance of money; and
(b) the provision of credit or any other form of financial
accommodation; and
(c) the payment of an amount on account of, on behalf of or at the
request of a person where there is an obligation (whether express or
implied) to repay the amount; and
(d) a transaction (whatever its terms or form) that in substance
gives effect to an advance of money;
'obligation', in relation to a dwelling, means a unit:
(a) on a unit plan registered under a law of a State or Territory
that provides for the registration of titles of a kind known as strata
titles or unit titles; and
(b) that comprises:
(i) a part of a building that contains the dwelling and is a flat
or home unit; or
(ii) a part of a parcel of land if the building containing the
dwelling is constructed on that part.

Loan benefits
14.(1) If a person (the 'provider') who is the employer, or an
associate of the employer, of a recipient makes a loan to the
recipient, the making of the loan is taken to be a loan benefit
provided by the provider to the recipient.

(2) For the purposes of this clause, if:
(a) a debtor is under an obligation to pay or repay an amount (the
'principal amount') to another person (the 'creditor'); and
(b) the principal amount is not the whole or a part of the amount of
a loan; and
(c) after the due date for payment or repayment of the principal
amount, the whole or part of the principal amount remains unpaid;
the following provisions have effect:
(d) the creditor is taken, immediately after the due date, to have
made a loan (the 'notional loan') of the principal amount to the
debtor;
(e) at any time when the debtor is under an obligation to repay any
part of the principal amount, the debtor is taken to be under an
obligation to repay that part of the notional loan;
(f) the notional loan is taken to have been made:

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(i) if interest accrues on so much of the principal amount as
remains from time to time unpaid-at the rate of interest at which that
interest accrues; or
(ii) in any other case-at nil rate of interest.

(3) Subject to subclause (4), a loan is a deferred interest loan if
interest is payable on the loan at a rate that is greater than nil.

(4) A loan is not a deferred interest loan if:
(a) the whole of the interest is due for payment within 6 months
after the loan is made; or
(b) all of the following conditions are satisfied:
(i) interest on the loan is payable by instalments;
(ii) the intervals between instalments are not more than 6 months;
(iii) the first instalment is due for payment within 6 months
after the loan is made.

(5) For the purposes of this clause, if the provider makes a deferred
interest loan (the 'principal loan') to the recipient, the following
provisions apply:
(a) the provider is taken, at the end of:
(i) the period of 6 months beginning on the day on which the
principal loan was made; and
(ii) each later period of 6 months;
to have made a notional loan to the recipient;
(b) the amount of the loan is taken to be equal to the amount by
which the interest (the 'accrued interest') that has accrued on the
principal loan in respect of the period is more than any amount paid
in relation to the accrued interest before the end of the period;
(c) if any part of the accrued interest becomes payable, or is paid,
after the time when the notional loan is taken to have been made, the
notional loan is taken to be reduced accordingly;
(d) the notional loan is taken to have been made at a nil rate of
interest.

(6) Paragraph (5) (a) only applies to a period of 6 months if the
recipient is under an obligation during the whole of the period to
repay the whole or a part of the principal loan.

(7) For the purposes of this Part, if no interest is payable in
relation to a loan, a nil rate of interest is taken to be payable in
relation to the loan.
Division 2-Exempt loan benefits
15.(1) A loan is an exempt loan benefit if:
(a) the loan is made by a provider that carries on a business that
consists of, or includes, making loans to members of the public; and
(b) the rate of interest payable in respect of the loan:
(i) is stated in a document in existence at the time the loan is
made; and
(ii) is not less than the rate of interest in respect of a similar
arm's length loan made by the provider, at or about that time, to a
member of the public in the ordinary course of carrying on that
business; and
(iii) cannot be varied.

(2) A loan is an exempt loan benefit if:
(a) the loan is made by a provider who carries on a business that
consists of, or includes, making loans to members of the public; and
(b) the interest rate payable from time to time for the loan is not
less than the rate that applies to a comparable arm's length loan made
by the provider to another person in the ordinary course of carrying
on that business.

(3) A loan is an exempt loan benefit if:
(a) the loan consists of an advance to a recipient by a provider who
is an employer of the recipient; and
(b) the sole purpose of the making of the loan is to enable the
recipient to meet the expenses incurred by the recipient:
(i) in the course of performing the duties of that employment; and
(ii) not later than 6 months after the loan is made; and
(c) the amount of the loan is not substantially greater than the
amount of those expenses that could reasonably be expected to be
incurred by the recipient; and
(d) the recipient is required:
(i) to account to the employer, not later than 6 months after the
loan is made, for expenses met from the loan; and
(ii) to repay (whether by set-off or otherwise) any amount not so
accounted for.

(4) A loan is an exempt loan benefit if:

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(a) the loan consists of an advance to a recipient by a provider who
is an employer of the recipient; and
(b) the sole purpose of the making of the loan is to enable the
recipient to pay any of the following amounts payable by the recipient
in respect of accommodation:
(i) a rental bond;
(ii) a security deposit in respect of electricity, gas or
telephone services;
(iii) any similar amount; and
(c) the recipient is required to repay (whether by set-off or
otherwise) the loan no later than 12 months after the loan is made.
Division 3-Value of a loan benefit
Method of valuing loan benefits
16.(1) The value of a loan benefit is calculated as follows:
Method statement
Step 1. Work out whether the loan is a housing loan or another type
of loan.
Note: For the meaning of'housing loan', see clause 17.
Step 2. Work out the notional rate of interest for the loan using
subclause (2).
Step 3. Work out the actual rate of interest for the loan in the
relevant fringe benefits year using subclause (3).
Step 4. Work out whether the actual rate of interest is more than the
notional rate of interest.
Step 5. If the actual rate of interest is equal to or more than the
notional rate of interest, the value of the loan benefit is nil.
Note: If the value of the loan benefit is nil, the remainder of this
subclause does not apply.
Step 6. If the actual rate of interest is less than the notional rate
of interest, take the actual rate of interest away from the notional
rate of interest.
Step 7. Work out the amount of the loan (both the principal and
interest) that is outstanding in the relevant fringe benefits year
using subclause (5).
Step 8. Multiply the rate of interest obtained in Step 6 and the
amount obtained in Step 7: the result is the interim value of the
loan.
Step 9. Work out how many complete weeks in the relevant fringe
benefits year the person had, or will have, the loan: the result is
the number of allowable weeks.
Step 10. Apply the formula:
number of allowable weeks x terim value of the loan
52
Step 11. The amount obtained by applying the formula in Step 10 is
the value of the loan benefit.
Note: If the recipient is a member of a couple, the value of the loan
benefit is to be halved in certain circumstances (see subclause (5)).

(2) The notional rate of interest for a fringe benefits year is:
(a) for a housing loan-the rate prescribed for the purposes of this
paragraph; and
(b) for a loan of any other kind-the rate prescribed for the
purposes of this paragraph.

(3) The actual rate of interest for the loan is:
(a) if the loan starts after 1 April in the relevant fringe benefits
year-the rate of interest payable under the loan on the day on which
the loan starts; and
(b) in any other case-the rate of interest payable under the loan on
1 April in the relevant fringe benefits year.

(4) The amount of the loan that is outstanding is:
(a) if the loan starts after 1 April in the relevant fringe benefits
year-the amount outstanding on the day on which the loan starts; and
(b) in any other case-the amount outstanding on 1 April in the
relevant fringe benefits year.

(5) If:
(a) the recipient is a member of a couple; and
(b) the recipient's partner receives a loan benefit in the relevant
fringe benefits year; and
(c) the recipient's, and the recipient's partner's, loan benefits
relate to the same loan;
the value of the loan benefit obtained in Step 11 in subclause (1) is
halved.

What is a housing loan?
17. A loan is taken to be a housing loan if:
(a) the loan is made to, or used by, a recipient (whether in his or
her own right or jointly with his or her partner) wholly:

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(i) to enable the recipient to acquire a relevant interest in land
on which a dwelling or a building containing a dwelling is to be
constructed; or
Note: For the meaning of 'relevant interest', see clause 18.
(ii) to enable the recipient to acquire a relevant interest in
land and construct, or complete the construction of, a dwelling or a
building containing a dwelling on the land; or
(iii) to enable the recipient to construct, or complete the
construction of, a dwelling or a building containing a dwelling on
land in which the recipient held a relevant interest; or
(iv) to enable the recipient to acquire a relevant interest in
land on which there was a dwelling or a building containing a
dwelling; or
(v) to enable the recipient to acquire a relevant interest in a
stratum unit in relation to a dwelling; or
(vi) to enable the recipient to extend a building that is a
dwelling or contains a dwelling, and is constructed on land in which
the recipient held a relevant interest, by adding a room, or part of a
room, to the building or the part of the building containing the
dwelling, as the case may be; or
(vii) if the recipient held a relevant interest in a stratum unit
in relation to a dwelling-to enable the recipient to extend the
dwelling by adding a room or part of a room to the dwelling; or
(viii) to enable the recipient to repay a loan that was made to,
and used by, the recipient wholly for a purpose mentioned in
subparagraphs (i) to (vii); and
(b) when the loan was made, the dwelling was used, or proposed to be
used, as the recipient's usual place of residence.

What is a relevant interest?
18.(1) For the purposes of clause 17, an interest described in a
following provision of this clause is a relevant interest.

(2) If:
(a) a person; or
(b) 2 or more persons as joint tenants or tenants in common;
acquire, hold or held an estate in fee simple in land or in a stratum
unit, the person or those persons are taken to acquire or hold, or to
have held, a relevant interest in that land or stratum unit.

(3) If:
(a) a person acquires, holds or held an interest in land or in a
stratum unit as lessee or licensee under a lease or licence; and
(b) the lease or licence gives or gave reasonable security of tenure
to the lessee or licensee for a period of, or for periods totalling,
10 years or more;
the person is taken to acquire or hold, or to have held, a relevant
interest in that land or stratum unit, as the case requires.

(4) If:
(a) a person acquires, holds or held an interest in land or in a
stratum unit as purchaser of an estate in fee simple in the land or in
the stratum unit under an agreement; and
(b) the agreement provides or provided for payment of the purchase
price, or a part of the purchase price, to be made at a future time or
by instalments;
the person is taken to acquire or hold, or to have held, a relevant
interest in that land or stratum unit, as the case requires.

(5) If:
(a) a person acquires, holds or held an interest in land or in a
stratum unit as purchaser of a right to be granted a lease of the land
or of the stratum unit under an agreement; and
(b) the agreement provides or provided for payment of the purchase
price, or a part of the purchase price, for the lease to be made at a
future time or by instalments; and
(c) the Secretary is satisfied that the lease will give reasonable
security of tenure to the lessee for a period of, or for periods
totalling, 10 years or more;
the person is taken to acquire or hold, or to have held, a relevant
interest in that land or stratum unit, as the case requires.

(6) If:
(a) 2 or more persons acquire, hold or held an interest referred to
in paragraph (3) (a), (4) (a) or (5) (a) in land or in a stratum unit
as joint tenants or tenants in common; and
(b) paragraph (3) (b) or (4) (b) or paragraphs (5) (b) and (c) are
satisfied;
those persons are taken to acquire or hold, or to have held, a
relevant interest in that land or stratum unit, as the case requires.

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PART 6-SCHOOL FEES BENEFITS
Division 1-What is a school fees benefit?
Definition
19. In this Part, unless the contrary intention appears:
'school' means a school, college or other educational institution
that provides primary or secondary level education.

School fees benefits
20.(1) If:
(a) a person pays an amount, whether directly or indirectly, to a
school; and
(b) the person is the employer, or an associate of the employer, of
a recipient; and
(c) the amount is for fees for:
(i) tuition at primary or secondary level provided by the school;
or
(ii) books or equipment provided by the school in relation to that
tuition; and
(d) the tuition, books or equipment is provided to a dependant of
the recipient or of the recipient's partner;
the payment is taken to be a school fees benefit provided by the
person to the recipient.

(2) For the purposes of this clause, if:
(a) a school is providing tuition at primary or secondary level to a
dependant of a person; and
(b) the dependant is boarding at the school;
the fees that are payable for the dependant to board at the school are
taken to be fees for the tuition provided by the school to the
dependant.
Division 2-Value of a school fees benefit
Value of school fees benefits
21. The value of a school fees benefit is the amount of the payment
that constitutes the school fees benefit.

SCHEDULE 4 Section 223
CALCULATION OF EARNINGS CREDIT ACCOUNT BALANCE
MODULE A-overall account balance calculation
Account balance calculation
A1. If the person has an earnings credit account, this is how to work
out the balance of the account:
Method statement
Step 1. Work out the person's opening balance using MODULE B below.
Step 2. If the person has an earnings credit, add the amount of the
earnings credit to the account: see MODULE C below.
Step 3. If the person draws on the account, deduct from the account
the amount drawn: see MODULE D below.
Account balance not to be more than $500
A2. The balance of an individual account is not to be more than $500.
Balance not to be in debit
A3. The balance of an earnings credit account is not to fall below
nil.
EC accounting periods-subsection 222(1)
A4. The earnings credit accounting periods for an account established
under subsection 222(1) are the fortnights beginning on the first day
in each period for which an instalment of the person's youth training
allowance is payable.
EC accounting periods-subsection 222(2)
A5. The earnings credit accounting periods for an account established
under subsection 222(2) are the fortnights beginning on the first day
in each period for which an instalment of the person's partner's youth
training allowance is payable.

MODULE B-Opening balance
General rule
B1. The opening balance of the person's earnings credit account is
nil.
Transferees from social security pensions or benefits or service
pensions
B2. Subject to point B3, if:
(a) the person begins to receive a youth training allowance; and
(b) immediately before beginning to receive the allowance, the
person was receiving a social security pension or a social security
benefit and had an earnings credit account balance under this Act, the
Social Security Act or the Veterans' Entitlements Act;
the opening balance of the person's earnings credit account is the
amount of that account balance.

Transferees-joint account
B3. If:

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(a) a person begins to receive youth training allowance; and
(b) immediately before beginning to receive the allowance, the
person was receiving a social security pension or a social security
benefit and had an earnings credit account balance under this Act, the
Social Security Act or the Veterans' Entitlements Act; and
(c) the earnings credit account was a joint account with the
person's partner;
the opening balance of the person's new earnings credit account is 50%
of the balance of the joint account.

Preservation of benefit earnings credit account balances for 13 weeks
B4. If:
(a) a person begins to receive a youth training allowance; and
(b) within the period of 13 weeks immediately before the person
began to receive the allowance, the person was receiving a social
security benefit or a youth training allowance; and
(c) immediately before the person ceased to receive the social
security benefit, the person had an earnings credit account balance
under this Part or the Social Security Act that was greater than nil;
the opening balance of the person's earnings credit account is the
closing balance of that earnings credit account under the Social
Security Act.

Preservation-member of a couple
B5. If:
(a) a person begins to receive a youth training allowance; and
(b) the person is a member of a couple; and
(c) the person's partner:
(i) is not receiving a youth training allowance; and
(ii) is not receiving a social security pension; and
(iii) is not receiving a social security benefit; and
(d) within the period of 13 weeks immediately before the person
began to receive the youth training allowance, the person was
receiving a social security benefit; and
(e) immediately before the person ceased to receive the social
security benefit, the partner had an earnings credit account balance
under the Social Security Act that was greater than nil;
the opening balance of the partner's earnings credit account is the
amount of the closing balance of that earnings credit account under
the Social Security Act.

MODULE C-Earnings credit
When earnings credit arises
C1. A person has an earnings credit for an earnings credit accounting
period if during that period the person's fortnightly rate of ordinary
income is less than the person's ordinary income free area.
Note 1: For 'earnings credit accounting period' see points A4 and A5
above.
Note 2: For 'ordinary income free area' see MODULE G in Schedule 1.
Amount of earnings credit
C2. If the person is not a member of a couple, the amount of an
earnings credit for an earnings credit accounting period is $90.00.
Note: This is the basic free area plus all the maximum additional free
area for income from personal exertion.
C3. If a person is a member of a couple, the amount of an earnings
credit for an earnings credit accounting period is $80.00.
Note: This is half the basic free area plus all the maximum additional
free area for income from personal exertion by the person.

MODULE D-Drawing account
Drawing on account (recipient account)
D1. A person draws on an account established under subsection 222(1)
if:
(a) during an earnings credit accounting period:
(i) the person earns an amount of money for remunerative work done
by the person during that period; and
(ii) the person's fortnightly rate of ordinary income is more than
the person's ordinary income free area; and
(b) the rate of youth training allowance payable to the person for
the accounting period would otherwise be greater than nil; and
(c) immediately before the beginning of the earnings credit
accounting period, the person's earnings credit account balance was
greater than nil.
Drawing on account (partner account)
D2. A person draws on an account established under subsection 222(2)
if:
(a) during an earnings credit accounting period:
(i) the person earns an amount of money for remunerative work done
by the person during that period; and
(ii) the person's partner's fortnightly rate of ordinary income is

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more than the partner's ordinary income free area; and
(b) the rate of youth training allowance that would otherwise be
payable to the person's partner is greater than nil; and
(c) immediately before the beginning of the earnings credit
accounting period, the person's earnings credit account balance was
greater than nil.
Deducted amount
D3. The amount to be deducted is the amount earned.".

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 37
Transitional provision-acts and decisions of authorised persons and
prescribed officers taken to be acts and decisions of Secretary

37.(1) Any application made under the Principal Act as in force before 1 January 1995 to an authorised person or to a prescribed officer is taken, on and after that day, for the purposes of the Principal Act as amended by this Act, to be an application made to the Secretary.

(2) Any decision made by an authorised person or by a prescribed officer under, and for the purposes of, the Principal Act as in force before 1 January 1995 is taken, on and after that day, for the purposes of the Principal Act as amended by this Act, to be a decision made by that authorised person or prescribed officer as the delegate of the Secretary.

(3) Any act or thing done by an authorised person or a prescribed officer in relation to a student or other person under, and for the purposes of, the Principal Act as in force before 1 January 1995 is taken, on and after that day, for the purposes of the Principal Act as amended by this Act, to have effect as if it were an act or thing done by the authorised person or prescribed officer as the delegate of the Secretary.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 38
Transitional provision-internal review of student assistance benefit decision

38.(1) If, before 1 January 1995:
(a) a request had been made to the Secretary under section 20 of the Principal Act for consideration of a decision by a senior authorised person or a senior prescribed officer; but
(b) that consideration of that decision had not begun;
that request is to be treated, on and after that day, for all purposes, as if it were an application under section 304 of that Act as so amended for a review of the decision.

(2) If, before 1 January 1995:
(a) a request had been made to the Secretary under section 20 of the Principal Act for consideration of a decision by a senior authorised person or a senior prescribed officer; and
(b) that consideration had begun but not been completed;
the senior authorised person or the senior prescribed officer may complete that consideration as if Part 5 of the Principal Act had not been repealed.

(3) Any decision made by a senior authorised person or a senior prescribed officer on a consideration of another decision that is undertaken for the purpose of section 20 of the Principal Act, whether that first-mentioned decision as made before or, in accordance with subsection (2), on or after 1 January 1995, has effect, for all purposes, as if it were a decision of an authorised review officer.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 39
Transitional provision-review of student assistance benefit decision
not yet heard by SART

39.(1) If, before 1 January 1995, a request to the Secretary to the Department of Employment, Education and Training for the review of a decision of a senior authorised person or a senior prescribed officer:
(a) had not been referred to a Convenor of the Student Assistance Review Tribunal ("SART"); or
(b) had been referred to a Convenor of the SART but the Convenor:
(i) had not arranged for a panel of the SART to undertake the
review; or
(ii) had so arranged but the review had not commenced;
that request is to be treated, on and after that day, for all purposes, as if it were an application to the Social Security Appeals Tribunal ("SSAT") and is to be forwarded by the Secretary, on, or as soon as practicable after, that day, to the National Convener of the SSAT.

(2) If an application is forwarded by the Secretary in accordance with subsection (1) to the National Convener of the SSAT, the Secretary is taken to have complied with subsection 1261(1) of the Social Security Act 1991.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 40
Transitional provision-review of student assistance benefit decision
part-heard by SART

40. If, before 1 January 1995:
(a) a request for review of a decision of a senior authorised person or a senior prescribed officer had been referred to a Convenor of the Student Assistance Review Tribunal ("SART"); and
(b) the review of the decision had been commenced but not completed by the SART:
then, for all purposes on and after that date:
(c) the request for the review is taken to have been transferred to the Social Security Appeals Tribunal ("SSAT"); and
(d) to facilitate that transfer, the members of the SART constituting the panel of the SART for the purposes of that review are to continue that review, on and after that day, as a properly constituted panel of the SSAT; and
(e) for the purposes of section 1329 of the Social Security Act 1991, the hearing of the matter is taken to have commenced when the hearing of the review by the SART commenced; and
(f) the functions and powers exercisable by the SSAT in such cases are the functions and powers of the SART under the Principal Act if the Principal Act had not been amended.

STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE) AMENDMENT ACT 1994 No. 183, 1994 - SECT 41
Transitional provision-members of SART to become members of SSAT

41.(1) A person who is a Convenor or other member of the Student Assistance Review Tribunal ("SART") immediately before 1 January 1995 is taken, on and after that day, for the purposes of subsection 1324(1) of the Social Security Act 1991, to have been appointed by the Governor-General as an ordinary member of the Social Security Appeals Tribunal ("SSAT").
(2) A person taken to be appointed as an ordinary member of the SSAT under subsection (1):
(a) enjoys, subject to subsection (3) or (4), whichever is appropriate, the same terms and conditions as he or she enjoyed while a Convenor or other member of the SART; and
(b) is taken to have been so appointed for the balance of the term of his or her appointment to the SART, had the SART not been abolished.

(3) A convenor of the SART who is taken to be appointed as an ordinary member of the SSAT under subsection (1):
(a) is to be paid such remuneration as is from time to time fixed by the Remuneration Tribunal in relation to a Chairperson of the SSAT, regardless of whether the Convenor sits as a Chairperson of the SSAT or as an ordinary member; and
(b) is to be paid such allowances as are prescribed for a Chairperson of the SSAT.

(4) A member of the SART, other than a Convenor, who is taken to have been appointed as an ordinary member of the SSAT under subsection (1):
(a) is to be paid such remuneration as is from time to time fixed by the Remuneration Tribunal in relation to an ordinary member of the SSAT; and
(b) is to be paid such allowances as are prescribed for an ordinary member of the SSAT.