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Social Security Act 1991

  • - C2006C00270
  • In force - Superseded Version
  • View Series
Act No. 46 of 1991 as amended, taking into account amendments up to Act No. 47 of 2006
An Act to provide for the payment of certain pensions, benefits and allowances, and for related purposes
Administered by: DEST; DEWR; FaCSIA
Registered 29 May 2006
Start Date 22 May 2006
End Date 30 Jun 2006

 

Social Security Act 1991

Act No. 46 of 1991 as amended

This compilation was prepared on 24 May 2006
taking into account amendments up to Act No. 47 of 2006

Volume 7 includes:        Table of Contents
                                    Sections 1157A – 1361A

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

 

Chapter 3General provisions relating to payability and rates

  

  


Contents

Chapter 3—General provisions relating to payability and rates                  i

Part 3.12A—Provisions for Seniors Health Card taxable income test     1

Division 1—Purpose of this Part                                                                            1

1157A... Purpose of Part................................................................................... 1

Division 2—Benefits that may be assessable fringe benefits                 2

1157B... Benefits received in or outside Australia............................................ 2

1157C... Car benefits......................................................................................... 2

1157D... Exempt car benefits............................................................................ 4

1157E.... School fees benefits............................................................................ 4

1157F.... Health insurance benefits.................................................................... 6

1157G... Loan benefits...................................................................................... 7

1157H... Exempt loan benefit............................................................................ 8

1157I..... Housing benefits................................................................................. 9

1157J.... Exempt housing benefits—live-in residential care workers.............. 11

1157JA. Expense benefits............................................................................... 12

1157JB.. Exempt expense benefit.................................................................... 12

1157JC.. Financial investment benefit............................................................. 13

Division 3—Value of car fringe benefits                                                           14

1157K... Method of valuing car fringe benefits............................................... 14

1157L.... Value of car fringe benefits............................................................... 14

1157M.. Minister may determine alternative method of valuing car fringe benefits              16

Division 4—Value of school fees fringe benefits                                         17

1157N... Value of school fees fringe benefits.................................................. 17

Division 5—Value of health insurance fringe benefits                              18

1157O... Value of health insurance fringe benefits.......................................... 18

Division 6—Value of loan fringe benefits                                                         19

1157P.... Method of valuing loan fringe benefits............................................. 19

1157Q... Value of loan fringe benefits............................................................. 19

1157R... Minister may determine alternative method of valuing loan fringe benefits            21

Division 7—Value of housing fringe benefits                                                 23

Subdivision A—Grants of housing rights                                                            23

1157S.... Methods of valuing housing fringe benefits—grants of housing rights 23

1157T... Value of grants of housing rights—general....................................... 23

1157TA Value of grants of housing rights—employees of the Defence Force 25

Subdivision B—Payments associated with loans                                                 27

1157TB. Method of valuing housing fringe benefits—payments associated with loans        27

1157TC. Value of payments associated with loans......................................... 28

Subdivision C—Payments associated with enjoying housing rights               28

1157TD Methods of valuing housing fringe benefits—payments associated with enjoying housing rights         28

1157TE. Value of payments associated with enjoying housing rights—general 29

1157TF. Value of payments associated with enjoying housing rights—employees of the Defence Force            31

Subdivision D—Alternative methods of valuing housing fringe benefits       33

1157U... Minister may determine alternative method of valuing housing fringe benefits      33

Division 8—Value of expense fringe benefit                                                  34

1157UA Value of expense fringe benefits....................................................... 34

Division 9—Value of financial investment fringe benefit                         35

1157UB Value of financial investment fringe benefit...................................... 35

Division 8—Foreign currency rates                                                                    36

1157V... Foreign currency rates...................................................................... 36

Part 3.13—Imprisonment                                                                                                  37

1158...... Some social security payments not payable during period in gaol or in psychiatric confinement following criminal charge................................................................................................ 37

1159...... Payment may be redirected to dependent partner or child............... 37

Part 3.14—Compensation recovery                                                                            39

Division 1—General                                                                                                    39

1160...... General effect of Part........................................................................ 39

1161...... Application of Part........................................................................... 39

1161A... Application of Part to supplementary compensation affected payments              41

1162...... Part to bind Crown........................................................................... 44

1163...... Interpretation.................................................................................... 44

1164...... Certain lump sums to be treated as though they were received as periodic compensation payments    44

1165...... Effect of certain State and Territory laws........................................ 45

Division 2—Enforcement of compensation rights                                       46

1166...... Secretary may require person to take action to obtain compensation 46

1167...... Failure to comply with a requirement to take action to obtain compensation        46

Division 3—Receipt of compensation                                                                48

1168...... Application....................................................................................... 48

1169...... Compensation affected payment not payable during lump sum preclusion period                48

1170...... Lump sum preclusion period............................................................ 48

1171...... Deemed lump sum payment arising from separate payments......... 49

1172...... Lump sum compensation not counted as ordinary income.............. 50

1173...... Effect of periodic compensation payments on rate of person’s compensation affected payment         50

1174...... Effect of periodic compensation payments on rate of partner’s compensation affected payment         51

1175...... Rate reduction under both income/assets test and this Part............. 52

1176...... Periodic compensation not counted as ordinary income.................. 52

Division 4—Recoverable amounts                                                                      53

Subdivision A—Preliminary                                                                                   53

1177...... Interpretation.................................................................................... 53

Subdivision B—Recovery from recipient of compensation affected payment 53

1178...... Repayment of amount where both lump sum and payments of compensation affected payment have been received.......................................................................................................... 53

1179...... The section 1178 recoverable amount.............................................. 54

1180...... Repayment where both periodic compensation payments and payments of compensation affected payment have been received............................................................................................. 54

1181...... The section 1180 recoverable amount.............................................. 54

Subdivision C—Recovery from compensation payers and insurers                55

1182...... Secretary may send preliminary notice to potential compensation payer or insurer              55

1183...... Potential compensation payer or insurer must notify Secretary of liability           56

1184...... Secretary may send recovery notice to compensation payer or insurer  57

1184A... The section 1184 recoverable amount.............................................. 58

1184B... Preliminary notice or recovery notice suspends liability to pay compensation      61

1184C... Compensation payer’s or insurer’s payment to Commonwealth discharges liability to compensation claimant   61

1184D... Offence to make compensation payment after receiving preliminary notice or recovery notice             62

1184E.... Liability of compensation payer or insurer to pay the Commonwealth if there is a contravention of section 1184D.......................................................................................................... 63

Division 5—Recoverable debts                                                                            64

1184F.... Debts resulting from notices under section 1178 or 1180................ 64

1184G... Debts resulting from notices under section 1184............................. 64

1184H... Debts resulting from contravention of section 1184D..................... 64

1184I..... Compensation arrears debts............................................................. 64

Division 6—Miscellaneous                                                                                      65

1184J.... Secretary may give recovery notice either to compensation payer or to insurer but not to both           65

1184K... Secretary may disregard some payments......................................... 65

1184L.... Application to review compensation decision—disability support pension          65

1185...... Special provision for certain recipients of dependency-based payments                66

Part 3.14A—Retirement assistance for farmers                                                 68

Division 1—General                                                                                                    68

1185A... Purpose of Part................................................................................. 68

1185AA Applicable cut-off date..................................................................... 68

1185AB Pre-assessment request..................................................................... 68

1185B... Part to apply to certain transfers of estates in farms etc................. 70

1185C... How to assess the value of farms etc. subject to a transfer.............. 73

Division 2—Modification of provisions relating to assets test            75

1185D... Transfer of estate in farm etc. not disposal of an asset.................... 75

Division 4—Requests for increase in rate of social security payment 77

1185F.... Application....................................................................................... 77

1185G... Request for increase.......................................................................... 77

1185H... Form of request................................................................................ 77

1185J.... Determination of request.................................................................. 77

Division 5—Farmers’ income test                                                                       79

1185K... Does a person satisfy the farmers’ income test?.............................. 79

Division 6—Transitional: ex gratia payments                                               84

1185L.... Ex gratia payments........................................................................... 84

Part 3.14B—Retirement assistance for sugarcane farmers                         85

Division 1—General                                                                                                    85

1185M.. Purpose of Part................................................................................. 85

1185N... RASF commencement and closing days........................................... 85

1185P.... Applicable cut-off date..................................................................... 85

1185Q... Pre-assessment request..................................................................... 86

1185R... Part to apply to certain transfers of estates in sugarcane farms etc. 87

1185S.... How to assess the total net value of sugarcane farms etc. subject to a transfer      91

Division 2—Modification of provisions relating to assets test            93

1185T... Transfer of estate in sugarcane farm etc. not disposal of an asset.... 93

Division 3—Requests for increase in rate of social security payment 95

1185U... Application....................................................................................... 95

1185V... Request for increase.......................................................................... 95

1185W.. Form of request................................................................................ 95

1185X... Determination of request.................................................................. 95

Division 4—Sugarcane farmers’ income test                                                 97

1185Y... Does a person satisfy the sugarcane farmers’ income test?............. 97

Part 3.15—New Enterprise Incentive Scheme                                                   102

1186...... General effect of Part...................................................................... 102

1187...... Reduction in rate of payments under this Act if recipient or partner also receiving payments under New Enterprise Incentive Scheme (NEIS)................................................................ 102

1188...... Rate reduction under this Part........................................................ 103

Part 3.15A—Community Development Employment Projects Scheme 105

Division 1—Preliminary                                                                                          105

1188A... General effect of Part...................................................................... 105

1188B... CDEP Scheme participants............................................................ 105

Division 2—Reduction in rate of pension or allowance                          107

1188C... Reductions in rate of payments under this Act if recipient or partner also receiving payments under CDEP Scheme........................................................................................................ 107

Division 3—CDEP Scheme Participant Supplement                                116

1188D... Entitlement to Supplement: people receiving pension-type payments on or after 20 March 1999       116

1188E.... Entitlement to Supplement between 20 March 1999 and 19 March 2000: people not covered by section 1188D........................................................................................................ 117

1188F.... Entitlement to Supplement on or after 20 March 2000: people not covered by section 1188D            120

1188G... Notification of periods in respect of which a CDEP Scheme payment is not payable           124

1188H... Person receiving CDEP Scheme Participant Supplement to be taken to be in receipt of social security benefit or pension........................................................................................... 124

1188J.... CDEP Scheme participant may accumulate supplement............... 125

1188K... Need for a claim.............................................................................. 126

Division 4—Transitional                                                                                         127

1188L.... Existing CDEP Scheme participants to be treated as long-term social security recipients      127

1188M.. Certain people receiving CDEP Scheme Participant Supplement to be taken to have been receiving social security benefit for 9 months....................................................................... 127

Part 3.16—Indexation and adjustment of amounts                                          128

Division 1—Preliminary                                                                                          128

1189...... Analysis of Part.............................................................................. 128

1190...... Indexed and adjusted amounts [see Notes 2 and 4]........................ 128

Division 2—CPI indexation                                                                                   146

1191...... CPI Indexation Table...................................................................... 146

1192...... Indexation of amounts.................................................................... 158

1193...... Indexation factor............................................................................. 159

1194...... Rounding off indexed amounts....................................................... 160

1195...... Certain indexed amounts to be increased in line with increases in Male Total Average Weekly Earnings              160

Division 4—Adjustment of other rates                                                           163

1198B... Adjustment of disability support pension (under 21) MBRs....... 163

1198C... Adjustment of youth disability supplement.................................. 163

1203...... Adjustment of pension “single non-homeowner” AVL................. 164

1204...... Adjustment of benefit AVLs.......................................................... 164

1205...... Adjustment of special illness separated special resident AVL....... 165

1206A... Adjustment of certain pharmaceutical allowance rates................... 165

1206B... Adjustment of certain telephone allowance rates........................... 167

Division 5—One-off adjustments of certain amounts                              169

1206D... Rent assistance threshold for social security pensions increased on 20 March 1996             169

1206E.... Rent assistance threshold for some social security payments increased on 20 March 1996  169

1206F.... Rent assistance for family allowance increased on 20 March 1996 169

1206G... Increased rent assistance for pensioners with service pensioner partners with children         170

Division 6—One-off adjustments on 1 July 2000 relating to the introduction of the goods and services tax                                                                                                             171

1206GA 1 July 2000 increase in certain indexed and adjusted amounts....... 171

1206GAA................................ 1 July 2000 increase in rent assistance amounts  173

1206GB Adjustment of amounts following 1 July 2000 increase................ 174

1206GC 1 July 2000 increase in income and assets test free areas............... 178

1206GD Rounding off provisional replacement amounts............................. 181

Part 3.16A—Advance payment deductions                                                          183

1206H... Advance payment deduction.......................................................... 183

1206J.... Amount of advance payment deduction—basic calculation........... 183

1206K... Person may request larger advance payment deduction................. 184

1206L.... Reduction of advance payment deduction in cases of severe financial hardship     184

1206M.. The final advance payment deduction............................................ 185

1206N... Provisional payment rate insufficient to cover advance payment deduction          185

1206P.... Rounding of amounts...................................................................... 187

Part 3.16B—Special employment advance deductions                                  188

1206Q... Special employment advance deduction......................................... 188

1206R... Amount of special employment advance deduction—basic calculation  188

1206S.... Person may request larger special employment advance deduction 189

1206T... Reduction of special employment advance deduction in cases of severe financial hardship   189

1206U... The final special employment advance deduction.......................... 190

1206V... Provisional payment rate insufficient to cover special employment advance deduction        190

1206W.. Rounding of amounts...................................................................... 191

Part 3.18—Means test treatment of private companies and private trusts               192

Division 1—Introduction                                                                                        192

1207...... Simplified outline............................................................................ 192

1207A... Definitions...................................................................................... 193

1207B... Relatives......................................................................................... 196

1207C... Associates....................................................................................... 197

1207D... When a company is sufficiently influenced by an entity............... 199

1207E.... Majority voting interest in a company........................................... 199

1207F.... Entitled to acquire........................................................................... 199

1207G... Transfer of property or services.................................................... 199

1207H... Constructive transfers of property or services to an entity........... 200

1207J.... Active involvement with a primary production enterprise............ 201

1207K... Power to veto decisions of a trustee............................................... 201

1207L.... Extra-territorial operation............................................................... 202

1207M.. Application to things happening before commencement............... 202

Division 2—Designated private companies                                                  203

1207N... Designated private companies........................................................ 203

Division 3—Designated private trusts                                                            205

1207P.... Designated private trusts................................................................ 205

Division 4—Controlled private companies                                                   207

1207Q... Controlled private companies......................................................... 207

1207R... Direct voting interest in a company............................................... 208

1207S.... Voting power.................................................................................. 209

1207T... Direct control interest in a company.............................................. 209

1207U... Interest in a share............................................................................ 210

Division 5—Controlled private trusts                                                             212

1207V... Controlled private trusts................................................................ 212

1207W.. Interest in a trust............................................................................ 213

Division 6—Attributable stakeholders and attribution percentages 215

1207X... Attributable stakeholder, asset attribution percentage and income attribution percentage     215

Division 7—Attribution of income of controlled private companies and controlled private trusts         217

1207Y... Attribution of income..................................................................... 217

1207Z... No double counting of attributed income....................................... 218

1208...... Ordinary income of a company or trust......................................... 219

1208A... Ordinary income from a business—treatment of trading stock...... 219

1208B... Permissible reductions of business and investment income........... 220

1208C... Derivation periods.......................................................................... 221

1208D... Attribution periods......................................................................... 222

Division 8—Attribution of assets of controlled private companies and controlled private trusts           223

1208E.... Attribution of assets....................................................................... 223

1208F.... When attributed asset is unrealisable.............................................. 223

1208G... Effect of charge or encumbrance on value of assets........................ 224

1208H... Effect of unsecured loan on value of assets.................................... 226

1208J.... Value of company’s or trust’s assets etc....................................... 226

Division 9—Modification of asset deprivation rules                                227

1208K... Individual disposes of asset to company or trust.......................... 227

1208L.... Disposal of asset by company or trust.......................................... 227

1208M.. Individual ceases to be an attributable stakeholder of a company or trust              230

1208N... Individual disposes of asset to company or trust before 1 January 2002—individual is attributable stakeholder 231

1208P.... Individual disposes of asset to company or trust before 1 January 2002—individual’s spouse is attributable stakeholder...................................................................................... 232

Division 10—Modification of income deprivation rules                         234

1208Q... Individual disposes of ordinary income to company or trust........ 234

1208R... Disposal of income by company or trust....................................... 234

1208S.... Individual disposes of income to company or trust before 1 January 2002—individual is attributable stakeholder........................................................................................................ 237

1208T... Individual disposes of income to company or trust before 1 January 2002—individual’s spouse is attributable stakeholder...................................................................................... 238

Division 11—Concessional primary production trusts                           240

1208U... Concessional primary production trusts........................................ 240

1208V... Individual ceases to be an attributable stakeholder of trust—receipt of remuneration or other benefits from trust during asset deprivation period................................................................. 243

1208W.. Net value of asset........................................................................... 245

1208X... Value of entity’s assets.................................................................. 246

1208Y... When asset is controlled by an individual...................................... 246

1208Z... Adjusted net value of asset............................................................. 247

1209...... Adjusted net primary production income...................................... 247

1209A... Net income of a primary production enterprise............................. 248

1209B... Net income from a primary production enterprise—treatment of trading stock     249

1209C... Permissible reductions of income from carrying on a primary production enterprise             249

Division 12—Anti-avoidance                                                                                251

1209D... Anti-avoidance................................................................................ 251

Division 13—Decision-making principles                                                     253

1209E.... Decision-making principles............................................................ 253

Division 14—Information management                                                          254

1209F.... Transitional period......................................................................... 254

1209G... Information-gathering powers........................................................ 254

1209H... Secretary may obtain tax information............................................. 255

1209J.... Disclosure of tax information......................................................... 256

1209K... Disclosure of tax file number information...................................... 257

Part 3.19—Miscellaneous                                                                                              259

1210...... Application of income and assets test reductions and of compensation reductions for income tax purposes        259

1210A... Effect of nil rate of pension etc...................................................... 260

Chapter 4—International agreements and portability                                   261

Part 4.2—Overseas portability                                                                                    261

Division 1—Preliminary                                                                                          261

1211...... Social Security (International Agreements) Act overrides Part...... 261

1212...... Meaning of terms used in this Part................................................. 261

1212A... Meaning of acute family crisis........................................................ 262

1212B... Meaning of humanitarian purpose................................................. 262

1212C... Meaning of temporary absence...................................................... 263

1212D... Part does not affect need for qualification...................................... 263

Division 2—Portability of social security payments                                 264

Subdivision A—Basic portability provisions                                                      264

1213...... Persons to whom Division applies................................................. 264

1214...... Some payments generally portable with no time limit................... 264

1215...... Some payments generally portable with time limit........................ 264

1216...... Amounts added to rate................................................................... 265

1217...... Meaning of maximum portability period, allowable absence and portability period               265

Subdivision B—Exceptions to Subdivision A rules                                           270

1218AA Extended portability period for disability support pension.......... 270

1218...... Exception—full-time students outside Australia for purposes of Australian course              271

1218A... Exception—Reserve service........................................................... 271

1218B... Exception—waiting period in Australia before parenting payment is portable      272

1218C... Extension of person’s portability period—general........................ 272

1218D... Extension of person’s portability period—life-saving medical treatment overseas                273

1220...... No portability where claim based on short residence..................... 273

Division 3—Rate of portable pensions                                                            275

1220A... Proportionality—age pension rate................................................. 275

1220B... Proportionality—disability support pension rate for a severely disabled person  275

1221...... Proportionality—wife pension and widow B pension rate for entitled persons    276

Pension Portability Rate Calculator                                                                  276

Module A—Overall rate calculation process                                                     276

Module B—Australian working life residence                                                 277

Module C—Residence factor                                                                                 278

Chapter 5—Overpayments and debt recovery                                                  279

Part 5.1—Effect of Chapter                                                                                           279

1222...... General effect of Chapter............................................................... 279

Part 5.2—Amounts recoverable under this Act                                                 282

1222A... Debts due to the Commonwealth................................................... 282

1223...... Debts arising from lack of qualification, overpayment etc. [see Note 6] 282

1223A... Debt resulting from commutation of asset-test exempt income stream contrary to subsection 9A(2), 9B(2) or 9BA(2)........................................................................................................ 286

1223AA Debts arising from prepayments and certain other payments....... 290

1223AB Debts arising from AAT stay orders.............................................. 292

1223ABAADebts arising in respect of one-off payments to older Australians 292

1223ABADebts arising in respect of one-off payments to carers................ 294

1224AA Person other than payee obtaining payment of a cheque............... 298

1224AB Joint and several liability for persons involved in contravention of Act 298

1224B... Education entry payment debt....................................................... 298

1224C... Data-matching Program (Assistance and Tax) Acts debts............. 299

1224D... Mobility allowance advance debts................................................. 299

1224E.... Debts arising from advance payments of social security entitlements 300

1224EA. Debts arising from special employment advances of special employment advance qualifying entitlements          300

1227...... Assurance of support debt............................................................. 301

1227A... Debts arising under the Farm Household Support Act 1992 in respect of re-establishment grant, exceptional circumstances relief payment or farm help income support.......... 302

1227B... Debts arising under Part 8 of the Student Assistance Act 1973 as in force before 1 July 1998                303

1228...... Overpayments arising under other Acts and schemes.................... 303

1228A... Comparable foreign payment debt recovery.................................. 304

1229...... Notices in respect of debt............................................................... 305

1229A... Interest on debt............................................................................... 306

1229AA Determination that interest not to be payable................................ 308

1229AB Administrative charge..................................................................... 309

1229B... Penalty interest rate........................................................................ 309

1229C... Guidelines on the penalty interest provisions................................ 309

1230...... Debt from failure to comply with garnishee notice........................ 310

1230A... Debt from failure before 1 July 1991 to comply with garnishee notice under the 1947 Act  311

1230B... Overseas application of provisions................................................ 312

1230C... Methods of recovery of debt.......................................................... 313

Part 5.3—Methods of recovery                                                                                  315

1231AA Application of sections dealing with deductions............................ 315

1231...... Deductions from debtor’s pension, benefit or allowance............... 315

1231A... Deductions from debtor’s exceptional circumstances relief payment or farm help income support [see Note 3]  317

1232...... Legal proceedings............................................................................ 318

1233...... Garnishee notice............................................................................. 319

1234...... Arrangement for payment of debt.................................................. 323

1234AA Recovery of amounts from financial institutions........................... 324

1234A... Deductions by consent from social security payment of person who is not a debtor            325

Part 5.4—Non-recovery of debts                                                                               327

1235...... Meaning of debt.............................................................................. 327

1236...... Secretary may write off debt.......................................................... 327

1236A... Application..................................................................................... 328

1237...... Power to waive Commonwealth’s right to recover debt................ 329

1237A... Waiver of debt arising from error.................................................... 329

1237AA Waiver of debt relating to an offence.............................................. 330

1237AAAWaiver of small debt..................................................................... 330

1237AABWaiver in relation to settlements.................................................. 331

1237AACWaiver where debtor or debtor’s partner would have been
entitled to an allowance.................................................................. 333

1237AADWaiver in special circumstances................................................... 336

1237AAEExtra rules for waiver of assurance of support debts.................... 336

1237AB Secretary may waive debts of a particular class............................. 337

1361A... [see Note 6].................................................................................... 337


Part 3.12AProvisions for Seniors Health Card taxable income test

Division 1Purpose of this Part

1157A  Purpose of Part

   1157A(1)  Division 2 of this Part describes the kind of benefits that can be assessable fringe benefits. Division 3 to 7 tell you how to work out the value of the assessable fringe benefits received by a person in a tax year. Division 8 deals with foreign currency conversions.

These provisions are necessary for the purposes of the Seniors Health Card Taxable Income Test Calculator.

Note 1:       For assessable fringe benefit see section 10A.

Note 2:       A fringe benefit is one that is provided by an employer to an employee in respect of the employee’s employment (see section 10A).

   1157A(2)  Section 10A contains many of the definitions that are relevant to the provisions of this Part.


 

Division 2Benefits that may be assessable fringe benefits

1157B  Benefits received in or outside Australia

                   This Part applies to a fringe benefit whether the benefit is received in or outside Australia.

1157C  Car benefits

   1157C(1)  A person (the employee) receives a car benefit if:

                     (a)  a car held by 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 subsection (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.

   1157C(2)  A car is taken, for the purposes of subsection (1), 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)  some other person with whom, or in respect of 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.

   1157C(3)  A car is taken, for the purposes of subsection (1), 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)  some other person with whom, or in respect of 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 whom, or in respect of 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 custody or control of the car at that time.

   1157C(4)  For the purposes of subsection (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.

   1157C(5)  For the purposes of this section, a car that is let on hire to a person under a hire-purchase agreement is taken:

                     (a)  to have been purchased by the person at the time when the person first took the car on hire; and

                     (b)  to have been owned by the person at all material times.

   1157C(6)  A reference in this Part to a car held by a person (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 intermittently as occasion requires on an hourly, daily, weekly or other short-term basis.

   1157C(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 result in substantial continuity of the hiring of the car.

1157D  Exempt car benefits

   1157D(1)  Except in so far as section 1157C provides that the application or availability of a car held by a person is a car benefit, the application or availability of a car held by a person is exempt.

   1157D(2)  A car benefit provided in respect of the employment of the employee is exempt 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

                     (b)  the only private use of the car at a time when the benefit was provided was:

                              (i)  work-related travel of the employee; and

                             (ii)  other minor, infrequent and irregular private use by the employee or an associate of the employee.

   1157D(3)  A car benefit provided in respect of the employment of the employee is exempt if the car was unregistered at all times when the car was held by the person who provided the car.

1157E  School fees benefits

Payment to recipient

    1157E(1)  If:

                     (a)  a person (the provider) pays an amount to another person (the recipient); and

                     (b)  the amount is for fees for:

                              (i)  tuition at primary or secondary level provided by a school; or

                             (ii)  books or equipment provided by the school in relation to that tuition; and

                     (c)  the tuition, books or equipment is provided to:

                              (i)  a dependent child of the recipient or the recipient’s partner; or

                             (ii)  a person who would be a dependent child of the recipient or the recipient’s partner if the person was not receiving a newstart allowance, a sickness allowance or a youth allowance;

the payment constitutes a school fees benefit provided by the provider to the recipient.

Note:          For school see section 10A.

Payment to or on behalf of the school

    1157E(2)  If:

                     (a)  a person (the provider) pays an amount to or on behalf of a school; and

                     (b)  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

                     (c)  the tuition, books or equipment is provided to:

                              (i)  a dependent child of a person (the recipient) or the recipient’s partner; or

                             (ii)  a person who would be a dependent child of the recipient or the recipient’s partner if the person was not receiving a newstart allowance or a sickness allowance;

the payment constitutes a school fees benefit provided by the provider to the recipient.

Note:          For school see section 10A.

Boarding fees

    1157E(3)  For the purposes of subsections (1) and (2), if:

                     (a)  a school is providing tuition at primary or secondary level to a dependent child of a person; and

                     (b)  the child is boarding at the school;

the fees that are payable for the child to board at the school are taken to be fees for the tuition provided by the school to the child.

1157F  Health insurance benefits

Payment to recipient

    1157F(1)  If:

                     (a)  a person (the provider) pays an amount to another person (the recipient); and

                     (b)  the amount is for the cost of health insurance; and

                     (c)  the health insurance covers:

                              (i)  the recipient; or

                             (ii)  the recipient’s partner; or

                            (iii)  a dependent child of the recipient or the recipient’s partner; or

                            (iv)  a person who would be a dependent child of the recipient or the recipient’s partner if the person was not receiving a newstart allowance, a sickness allowance or a youth allowance;

the payment constitutes a health insurance benefit provided by the provider to the recipient.

Payment to the health insurance fund

    1157F(2)  If:

                     (a)  a person (the provider) pays an amount to a health insurance fund; and

                     (b)  the amount is for the cost of health insurance; and

                     (c)  the health insurance covers:

                              (i)  a person (the recipient); or

                             (ii)  the recipient’s partner; or

                            (iii)  a dependent child of the recipient or the recipient’s partner; or

                            (iv)  a person who would be a dependent child of the recipient or the recipient’s partner if the person was not receiving a newstart allowance or a sickness allowance;

the payment constitutes a health insurance benefit provided by the provider to the recipient.

1157G  Loan benefits

   1157G(1)  Subject to subsection (1A), if a person (the provider) makes a loan to another person (the recipient), the making of the loan constitutes a loan benefit provided by the provider to the recipient.

1157G(1A)  The making of the loan does not constitute a loan benefit provided by the provider to the recipient if:

                     (a)  the provider is the Defence Force, or a body one of the objects or functions of which is making loans to employees of the Defence Force; and

                     (b)  the recipient is an employee of the Defence Force.

Late payment of debt

   1157G(2)  For the purposes of this section, if:

                     (a)  a person (the 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 deemed 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 deemed loan;

                      (f)  the deemed loan is taken to have been made:

                              (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 a nil rate of interest.

   1157G(3)  Subject to subsection (4), a loan is a deferred interest loan if interest is payable on the loan at a rate that exceeds nil.

   1157G(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 do not exceed 6 months;

                            (iii)  the first instalment is due for payment within 6 months after the loan is made.

   1157G(5)  For the purposes of this section, if a person (the provider) makes a deferred interest loan (the principal loan) to another person (the recipient), the following provisions apply:

                     (a)  the provider is taken, at the end of:

                              (i)  the period of 6 months starting on the day on which the principal loan was made; and

                             (ii)  each subsequent period of 6 months;

                            to have made a loan (the deemed 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 exceeds the amount (if any) paid in respect of 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 deemed loan is taken to have been made, the deemed loan is to be reduced accordingly;

                     (d)  the deemed loan is taken to have been made at a nil rate of interest.

   1157G(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.

   1157G(7)  For the purposes of this Part, if no interest is payable in respect of a loan, a nil rate of interest is taken to be payable in respect of the loan.

1157H  Exempt loan benefit

   1157H(3)  The making of a loan is exempt if:

                     (a)  the loan consists of an advance by the employer to the employee; and

                     (b)  the loan is made for the sole purpose of enabling the employee to meet expenses incurred in performing the duties of his or her employment; 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 employee; and

                     (d)  the employee is required:

                              (i)  to account to the employer for expenses met from the loan; and

                             (ii)  to repay (whether by set-off or otherwise) any amount not so accounted for.

   1157H(4)  The making of a loan is exempt if:

                     (a)  the loan consists of an advance by the employer to the employee; and

                     (b)  the sole purpose of the making of the loan is to enable the employee to pay any of the following amounts payable by the employee 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 employee is required to repay (whether by set-off or otherwise) the loan amount of the advance.

1157I  Housing benefits

     1157I(1)  The subsistence of a housing right granted by a person (the provider) to another person (the recipient) constitutes a housing benefit provided by the provider to the recipient.

     1157I(2)  The payment of money or other valuable consideration by an employer directly or indirectly to an employee (other than an employee of the Defence Force) to enable or assist the employee to meet costs associated with a loan to which subsection (4) applies constitutes a housing benefit provided by the employer to the employee.

Note:          For employee and employer see section 10A.

     1157I(3)  The payment of money or other valuable consideration by an employer directly or indirectly to an employee of the Defence Force to meet costs associated with a loan to which subsection (4) applies does not constitute a housing benefit provided by the employer to the employee.

     1157I(4)  This subsection applies to a loan made to, or used by, a person (whether in his or her own right or jointly with his or her partner) wholly:

                     (a)  to enable the person to acquire a prescribed interest in land on which a dwelling or a building containing a dwelling was subsequently to be constructed; or

                     (b)  to enable the person to acquire a prescribed interest in land and construct, or complete the construction of, a dwelling or a building containing a dwelling on the land; or

                     (c)  to enable the person to construct, or complete the construction of, a dwelling or a building containing a dwelling on land in which the person held a prescribed interest; or

                     (d)  to enable the person to acquire a prescribed interest in land on which there was a dwelling or a building containing a dwelling; or

                     (e)  to enable the person to acquire a prescribed interest in a stratum unit in relation to a dwelling; or

                      (f)  to enable the person to extend a building that:

                              (i)  is a dwelling or contains a dwelling; and

                             (ii)  is constructed on land in which the person held a prescribed interest;

                            by adding a room or part of a room to the building or part of the building containing the dwelling, as the case may be; or

                     (g)  if the person held a prescribed interest in a stratum unit in relation to a dwelling—to enable the person to extend the dwelling by adding a room or part of a room to the dwelling; or

                     (h)  to enable the person to repay a loan that was made to, and used by, the person wholly for a purpose mentioned in paragraph (a) to (g).

Note 1:       For dwelling see subsection 10A(7).

Note 2:       For prescribed interest see subsections 10A(10) to (14).

Note 3:       For stratum units see subsection 10A(8).

     1157I(5)  The payment of money or other valuable consideration by an employer directly or indirectly to an employee to enable or assist the employee to meet costs associated with enjoying a housing right constitutes a housing benefit provided by the employer to the employee.

Note:          For employee, employer and housing right see section 10A.

     1157I(6)  For the avoidance of doubt, subsection (5) does not apply to payments to which subsection (2) or (3) applies.

1157J  Exempt housing benefits—live-in residential care workers

    1157J(1)  If, during a period:

                     (a)  the employer of an employee is:

                              (i)  a government body; 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 employee’s employment consist of, or consist principally of, caring for mature or disadvantaged persons; and

                     (c)  in the performance of those duties, the employee lives, together with mature persons or disadvantaged persons, in residential premises of the employer; and

                     (d)  the fact that the employee lives in those premises is directly related to the provision, in the course of the performance of the duties of the employee’s employment, of care to the mature persons or disadvantaged persons living in those premises;

any benefit arising from the provision, during that period, of that accommodation to the employee or to the employee and a partner or dependent child of the employee who resides in those premises with the employee is exempt.

    1157J(2)  In this section:

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).

1157JA  Expense benefits

  1157JA(1)  A person (the employee) receives an expense benefit if an amount is paid to, or on behalf of, the employee or a person connected with the employee by:

                     (a)  an employer of the employee; or

                     (b)  an associate of the employer; or

                     (c)  a person (the arranger), other than the employer or an associate of the employer, under an arrangement between:

                              (i)  the employer or an associate of the employer; and

                             (ii)  the arranger or another person;

and is so paid in connection with an expense or expenses of a private nature that have been, or will or may be, incurred by the employee or person connected with the employee.

  1157JA(2)  The following are persons connected with the employee:

                     (a)  a partner of the employee;

                     (b)  a dependent child of the employee or of the employee’s partner;

                     (c)  a person who would be a dependent child of the employee or of the employee’s partner if the person was not receiving a newstart allowance or a sickness allowance.

1157JB  Exempt expense benefit

                   An amount paid as mentioned in subsection 1157JA(1) is exempt if:

                     (a)  the amount is paid to reimburse expenses incurred in connection with the employee’s employment; or

                     (b)  the employee requires the amount to be applied in paying expenses related to the employee’s employment.

1157JC  Financial investment benefit

  1157JC(1)  A person (the employee) receives a financial investment benefit if:

                     (a)  an employer of the employee; or

                     (b)  an associate of the employer; or

                     (c)  a person (the arranger), other than the employer or an associate of the employer, under an arrangement between:

                              (i)  the employer or an associate of the employer; or

                             (ii)  the arranger or another person;

pays for, or reimburses the cost of, the acquisition of a financial investment by the employee or a person connected with the employee.

  1157JC(2)  The making by a person, for the benefit of another person, of contributions to a superannuation fund or an ATO small superannuation account does not constitute payment for the acquisition of a financial investment by the other person.

  1157JC(3)  The following are persons connected with the employee:

                     (a)  a partner of the employee;

                     (b)  a dependent child of the employee or of the employee’s partner;

                     (c)  a person who would be a dependent child of the employee or of the employee’s partner if the person was not receiving a newstart allowance or a sickness allowance.


 

Division 3Value of car fringe benefits

1157K  Method of valuing car fringe benefits

   1157K(1)  Subject to subsection (2), the value of a car fringe benefit is to be worked out in accordance with section 1157L.

   1157K(2)  If a determination is in force under section 1157M, the value of a car fringe benefit is to be worked out in accordance with the determination.

1157L  Value of car fringe benefits

    1157L(1)  This is how to work out the value of a car fringe benefit:

Method statement

Step 1.   Work out the engine capacity of the car and go to the relevant Part of the Car Fringe Benefits Value Table.

Step 2.   Work out how old the car is and go to the appropriate row in the Table.

Step 3.   Work out how many complete months in the appropriate tax year the person had or will have the car fringe benefit and go to the appropriate column in the Table: the number where that row and column intersect is the value of the car fringe benefit.

                   Note:             If the person is a member of a couple, the value of the car fringe benefit is to be halved in certain circumstances (see subsection (3)).

    1157L(2)  The following Table is to be used in working out the value of a car fringe benefit:

 

CAR FRINGE BENEFITS VALUE TABLE

 

PART A—Car engine size up to 1600cc

 

 

 car age

 

 

item

(years)

1

2

3

4

5

6

7

8

9

10

11

12

 

1.

1

93.8

188

281

375

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

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

1442

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

 

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

    1157L(3)  If:

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

                     (b)  the person’s partner receives a car fringe benefit in the appropriate tax year; and

                     (c)  the person’s and the partner’s car fringe benefits relate to the same car;

the value of the car fringe benefit is to be halved.

1157M  Minister may determine alternative method of valuing car fringe benefits

   1157M(1)  The Minister may determine an alternative method for valuing car fringe benefits.

   1157M(2)  A determination under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

   1157M(3)  A determination in subsection (1):

                     (a)  starts to have effect on the day on which it is notified in the Gazette; and

                     (b)  ceases to have effect at the end of 6 months after the day on which it is notified in the Gazette if it has not been revoked before then.


 

Division 4Value of school fees fringe benefits

1157N  Value of school fees fringe benefits

                   The value of a school fees fringe benefit is the amount of the payment that constitutes the school fees benefit.


 

Division 5Value of health insurance fringe benefits

1157O  Value of health insurance fringe benefits

                   The value of a health insurance fringe benefit is the amount of the payment that constitutes the health insurance benefit.


 

Division 6Value of loan fringe benefits

1157P  Method of valuing loan fringe benefits

    1157P(1)  Subject to subsection (2), the value of a loan fringe benefit is to be worked out in accordance with section 1157Q.

    1157P(2)  If a determination is in force under section 1157R, the value of a loan fringe benefit is to be worked out in accordance with the determination.

1157Q  Value of loan fringe benefits

   1157Q(1)  This is how to work out the value of a loan fringe benefit:

Method statement

Step 1.   Work out whether the loan is a housing loan or another type of loan.

                   Note:             For housing loan see subsection 10A(9).

Step 2.   Work out the notional rate of interest for the loan using subsection (2), (3) or (4).

Step 3.   Work out the actual rate of interest for the loan in the appropriate tax year using subsection (5).

Step 4.   Work out whether the actual rate of interest exceeds the notional rate of interest.

Step 5.   If the actual rate of interest is equal to or exceeds the notional rate of interest, the value of the loan fringe benefit is nil.

                   Note:             If the value of the loan fringe benefit is nil, you do not have to go any further in the Method statement.

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 appropriate tax year using subsection (6).

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 appropriate tax year the person had or will have the loan: the result is the number of allowable weeks.

Step 10. Apply the formula:

Step 11. The amount obtained by applying the formula in Step 10 is the value of the loan fringe benefit.

                   Note:             If the person is a member of a couple, the value of the loan fringe benefit is to be halved in certain circumstances (see subsection (7)).

   1157Q(2)  The notional rate of interest for the tax year ending 30 June 1993 is:

                     (a)  10% for a housing loan; and

                     (b)  13.5% for any other loan.

   1157Q(3)  The notional rate of interest for the tax years ending 30 June 1994 and 30 June 1995 is:

                     (a)  6.95% for a housing loan; and

                     (b)  11.75% for any other loan.

   1157Q(4)  The notional rate of interest for any subsequent tax year is the market rate of interest for 1 April in the preceding tax year.

1157Q(4A)  For the purposes of subsection (4):

market rate of interest, for a particular day, means:

                     (a)  for a housing loan—the lowest variable rate of interest for a housing loan; or

                     (b)  for any other loan—the lowest variable rate of interest for any other loan;

that is available on that day from a bank which is one of 4 banks specified in a written determination made by the Minister.

1157Q(4B)  A determination under subsection (4A) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

   1157Q(5)  The actual rate of interest for the loan is:

                     (a)  if the loan starts after 1 July in the appropriate tax year—the rate of interest that is payable under the loan on the day on which the loan starts; and

                     (b)  in any other case—the rate of interest that is payable under the loan on 1 July in the appropriate tax year.

   1157Q(6)  The amount of the loan that is outstanding is:

                     (a)  if the loan starts after 1 July in the appropriate tax year—the amount that is outstanding on the day on which the loan starts; and

                     (b)  in any other case—the amount that is outstanding on 1 July in the appropriate tax year.

   1157Q(7)  If:

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

                     (b)  the person’s partner receives a loan fringe benefit in the appropriate tax year; and

                     (c)  the person’s and the partner’s loan fringe benefits relate to the same loan;

the value of the loan fringe benefit obtained in Step 11 of the Method statement is to be halved.

1157R  Minister may determine alternative method of valuing loan fringe benefits

   1157R(1)  The Minister may determine an alternative method for valuing loan fringe benefits.

   1157R(2)  A determination under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

   1157R(3)  A determination in subsection (1):

                     (a)  starts to have effect on the day on which it is notified in the Gazette; and

                     (b)  ceases to have effect at the end of 6 months after the day on which it is notified in the Gazette if it has not been revoked before then.


 

Division 7Value of housing fringe benefits

Subdivision AGrants of housing rights

1157S  Methods of valuing housing fringe benefits—grants of housing rights

    1157S(1)  Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to a person who is not an employee of the Defence Force is to be worked out in accordance with section 1157T.

    1157S(2)  Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to an employee of the Defence Force is to be worked out in accordance with section 1157TA.

    1157S(3)  If:

                     (a)  a determination is in force under section 1157U; and

                     (b)  the determination applies to housing fringe benefits to which subsection 1157I(1) applies;

the value of a housing fringe benefit to which subsection 1157I(1) applies is to be worked out in accordance with the determination.

1157T  Value of grants of housing rights—general

    1157T(1)  This is how to work out the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to a person who is not an employee of the Defence Force:

Method statement

Step 1.   Work out the location of the unit of accommodation and go to the appropriate row of the Housing Fringe Benefits Value Table.

Step 2.   Work out the type of accommodation and go to the appropriate column in the Table: the number where the row and column intersect is the weekly market rent of the unit of accommodation.

                   Note:             If the person is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subsection (4)).

Step 3.   Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person.

Step 4.   Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 3: the result is the provisional value of the housing fringe benefit.

Step 5.   Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3).

                   Note:             If the person is a member of a couple, the allowable rent is to be halved in certain circumstances (see subsection (4)).

Step 6.   Take the allowable rent away from the provisional value of the housing fringe benefit: the result is the value of the housing fringe benefit.

    1157T(2)  The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to a person who is not an employee of the Defence Force:

 

Housing fringe benefits value table

Location

Type of accommodation

House, flat or home unit

Any other unit of accommodation

3 or more bedrooms

1-2 bedrooms

Metropolitan

140

120

85

Non-metropolitan

100

90

70

Special housing

80

80

25

Outside Australia

140

120

85

Note 1:       For unit of accommodation, metropolitan location, non-metropolitan location and special housing location see section 10A.

Note 2:       A housing fringe benefit that is received outside Australia is to be valued (see section 1157B).

Note 3:       For Australia see subsection 23(1).

    1157T(3)  The allowable rent is the amount of rent that the Secretary is satisfied is payable for the unit of accommodation in the appropriate tax year by:

                     (a)  if the person is not a member of a couple—the person; or

                     (b)  if the person is a member of a couple—the person and the person’s partner.

    1157T(4)  If:

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

                     (b)  the person’s partner receives a housing fringe benefit in the appropriate tax year; and

                     (c)  the person’s and the partner’s housing fringe benefits relate to the same unit of accommodation;

the weekly market rent obtained in Step 2 of the Method statement and the allowable rent obtained in Step 5 of the Method statement are both to be halved.

1157TA  Value of grants of housing rights—employees of the Defence Force

1157TA(1)  This is how to work out the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to an employee of the Defence Force:

Method statement

Step 1.   Work out the type of accommodation and go to the appropriate column in the Housing Fringe Benefits Value Table (Defence Force Employees): the number in the appropriate column is the weekly market rent of the unit of accommodation.

                   Note:             If the person is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subsection (4)).

Step 2.   Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person.

Step 3.   Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 2: the result is the provisional value of the housing fringe benefit.

Step 4.   Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3).

                   Note:             If a person is a member of a couple, the allowable rent is to be halved in certain circumstances (see subsection (4)).

Step 5.   Take the allowable rent away from the provisional value of the housing fringe benefit: the result is the value of the housing fringe benefit.

Note:          For employee see section 10A.

1157TA(2)  The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to an employee of the Defence Force:

 

Housing Fringe Benefits Value Table (Defence Force Employees)

Type of accommodation

House, flat or home unit

Any other unit of accommodation

3 or more bedrooms

1-2 bedrooms

80

80

25

Note 1:       For employee see section 10A.

Note 2:       For unit of accommodation see section 10A.

Note 3:       A housing fringe benefit that is received outside Australia is to be valued (see section 1157B).

Note 4:       For Australia see subsection 23(1).

1157TA(3)  The allowable rent is the amount of rent that the Secretary is satisfied is payable for the unit of accommodation in the appropriate tax year by:

                     (a)  if the person is not a member of a couple—the person; or

                     (b)  if the person is a member of a couple—the person and the person’s partner.

1157TA(4)  If:

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

                     (b)  the person’s partner receives a housing fringe benefit in the appropriate tax year; and

                     (c)  the person’s and the partner’s housing fringe benefits relate to the same unit of accommodation;

the weekly market rent obtained in Step 1 of the Method statement and the allowable rent obtained in Step 4 of the Method statement are both to be halved.

Subdivision BPayments associated with loans

1157TB  Method of valuing housing fringe benefits—payments associated with loans

1157TB(1)  Subject to subsection (2), the value of a housing fringe benefit to which subsection 1157I(2) applies is to be worked out in accordance with section 1157TC.

1157TB(2)  If:

                     (a)  a determination is in force under section 1157U; and

                     (b)  the determination applies to housing fringe benefits to which subsection 1157I(2) applies;

the value of a housing fringe benefit to which subsection 1157I(2) applies is to be worked out in accordance with the determination.

1157TC  Value of payments associated with loans

                   The value of a housing fringe benefit to which subsection 1157I(2) applies is the amount of the payment that constitutes the housing benefit.

Subdivision CPayments associated with enjoying housing rights

1157TD  Methods of valuing housing fringe benefits—payments associated with enjoying housing rights

1157TD(1)  Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to a person who is not an employee of the Defence Force is to be worked out in accordance with section 1157TE.

1157TD(2)  Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to an employee of the Defence Force is to be worked out in accordance with section 1157TF.

1157TD(3)  If:

                     (a)  a determination is in force under section 1157U; and

                     (b)  the determination applies to housing fringe benefits to which subsection 1157I(5) applies;

the value of a housing fringe benefit to which subsection 1157I(5) applies is to be worked out in accordance with the determination.

1157TE  Value of payments associated with enjoying housing rights—general

1157TE(1)  This is how to work out the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to a person who is not an employee of the Defence Force:

Method statement

Step 1.   Work out the location of the unit of accommodation and go to the appropriate row of the Housing Fringe Benefits Value Table.

Step 2.   Work out the type of accommodation and go to the appropriate column in the Table: the number where the row and column intersect is the weekly market rent of the unit of accommodation.

                   Note:             If the person is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subsection (4)).

Step 3.   Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person.

Step 4.   Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 3: the result is the provisional value of the housing fringe benefit.

Step 5.   Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3).

                   Note:             If a person is a member of a couple, the allowable rent is to be halved in certain circumstances (see subsection (4)).

Step 6.   Work out the amount the employer paid or will pay by way of the housing fringe benefits in respect of the unit of accommodation in the appropriate tax year: the result is the employer subsidy.

Step 7.   Work out the amount (if any) by which the allowable rent exceeds the employer subsidy: the result is the employee contribution.

                   Note:             If the employer subsidy equals or exceeds the allowable rent, the employee contribution is nil.

Step 8.   Take the employee contribution away from the provisional value of the housing fringe benefit: the result is the value of the housing fringe benefit.

1157TE(2)  The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to a person who is not an employee of the Defence Force:

 

Housing fringe benefits value table

Location

Type of accommodation

House, flat or home unit

Any other unit of accommodation

3 or more bedrooms

1-2 bedrooms

Metropolitan

140

120

85

Non-metropolitan

100

90

70

Special housing

80

80

25

Outside Australia

140

120

85

Note 1:       For unit of accommodation, metropolitan location, non-metropolitan location and special housing location see section 10A.

Note 2:       A housing fringe benefit that is received outside Australia is to be valued (see section 1157B).

Note 3:       For Australia see subsection 23(1).

1157TE(3)  The allowable rent is the amount of rent that the Secretary is satisfied is payable for the unit of accommodation in the appropriate tax year by:

                     (a)  if the person is not a member of a couple—the person; or

                     (b)  if the person is a member of a couple—the person and the person’s partner.

1157TE(4)  If:

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

                     (b)  the person’s partner receives a housing fringe benefit in the appropriate tax year; and

                     (c)  the person’s and the partner’s housing fringe benefits relate to the same unit of accommodation;

the weekly market rent obtained in Step 2 of the Method statement and the allowable rent obtained in Step 5 of the Method statement are both to be halved.

1157TF  Value of payments associated with enjoying housing rights—employees of the Defence Force

  1157TF(1)  This is how to work out the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to an employee of the Defence Force:

Method statement

Step 1.   Work out the type of accommodation and go to the appropriate column in the Housing Fringe Benefits Value Table (Defence Force Employees): the number in the appropriate column is the weekly market rent of the unit of accommodation.

                   Note:             If the person is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subsection (4)).

Step 2.   Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person.

Step 3.   Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 2: the result is the provisional value of the housing fringe benefit.

Step 4.   Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3).

                   Note:             If a person is a member of a couple, the allowable rent is to be halved in certain circumstances (see subsection (4)).

Step 5.   Work out the amount the employer paid or will pay by way of the housing fringe benefits in respect of the unit of accommodation in the appropriate tax year: the result is the employer subsidy.

Step 6.   Work out the amount (if any) by which the allowable rent exceeds the employer subsidy: the result is the employee contribution.

                   Note:             If the employer subsidy equals or exceeds the allowable rent, the employee contribution is nil.

Step 7.   Take the employee contribution away from the provisional value of the housing fringe benefit: the result is the value of the housing fringe benefit.

  1157TF(2)  The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to an employee of the Defence Force:

 

Housing Fringe Benefits Value Table (Defence Force Employees)

Type of accommodation

House, flat or home unit

Any other unit of accommodation

3 or more bedrooms

1-2 bedrooms

80

80

25

Note 1:       For employee see section 10A.

Note 2:       For unit of accommodation see section 10A.

Note 3:       A housing fringe benefit that is received outside Australia is to be valued (see section 1157B).

Note 4:       For Australia see subsection 23(1).

  1157TF(3)  The allowable rent is the amount of rent that the Secretary is satisfied is payable for the unit of accommodation in the appropriate tax year by:

                     (a)  if the person is not a member of a couple—the person; or

                     (b)  if the person is a member of a couple—the person and the person’s partner.

  1157TF(4)  If:

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

                     (b)  the person’s partner receives a housing fringe benefit in the appropriate tax year; and

                     (c)  the person’s and the partner’s housing fringe benefits relate to the same unit of accommodation;

the weekly market rent obtained in Step 1 of the Method statement and the allowable rent obtained in Step 4 of the Method statement are both to be halved.

Subdivision DAlternative methods of valuing housing fringe benefits

1157U  Minister may determine alternative method of valuing housing fringe benefits

   1157U(1)  The Minister may determine an alternative method for valuing housing fringe benefits.

1157U(1A)  A determination under subsection (1) may apply to all housing fringe benefits or only to specified kinds of housing fringe benefits.

   1157U(2)  A determination under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

   1157U(3)  A determination in subsection (1):

                     (a)  starts to have effect on the day on which it is notified in the Gazette; and

                     (b)  ceases to have effect at the end of 6 months after the day on which it is notified in the Gazette if it has not been revoked before then.


 

Division 8Value of expense fringe benefit

1157UA  Value of expense fringe benefits

                   The value of an expense fringe benefit is the amount of the payment that constitutes the expense benefit.


 

Division 9Value of financial investment fringe benefit

1157UB  Value of financial investment fringe benefit

                   The value of a financial investment fringe benefit is the value of the financial investment benefit that constitutes the financial investment fringe benefit when the financial investment benefit is received.


 

Division 8Foreign currency rates

1157V  Foreign currency rates

   1157V(1)  If:

                     (a)  it is necessary, for the purposes of this Part, to work out an amount or value of a fringe benefit; and

                     (b)  the amount or value of the benefit is expressed in a foreign currency;

the amount or value in Australian currency is to be worked out using the market exchange rate for 1 July in the appropriate tax year.

   1157V(2)  If there is no market exchange rate for 1 July in the appropriate tax year (for example, because of a national public holiday), the market exchange rate to be used is the market exchange rate that applied on the last working day immediately before that 1 July.

   1157V(3)  For the purposes of this section, the market exchange rate of a foreign currency is the on-demand airmail buying rate for that currency available at the Commonwealth Bank of Australia.


 

Part 3.13Imprisonment

  

1158  Some social security payments not payable during period in gaol or in psychiatric confinement following criminal charge

                   An instalment of a social security pension, a social security benefit, a parenting payment, a mobility allowance or a pensioner education supplement is not payable to a person in respect of a day on which the person is:

                     (a)  in gaol; or

                     (b)  undergoing psychiatric confinement because the person has been charged with an offence.

Note 1:       For in gaol see subsection 23(5).

Note 2:       For psychiatric confinement see subsections 23(8) and (9).

1159  Payment may be redirected to dependent partner or child

      1159(1)  If:

                     (a)  a social security pension (other than pension PP (single)) is not payable to a person on a pension payday because of section 1158; and

                     (b)  the person’s partner is dependent on the person;

the Secretary may authorise the payment of all or some of the instalment that would otherwise have been payable to the person to be paid to:

                     (c)  the partner; or

                     (d)  someone else for the benefit of the partner.

      1159(2)  If:

                     (a)  a social security pension (other than pension PP (single)) is not payable to a person on a pension payday because of section 1158; and

                     (b)  a young person is dependent on the person;

the Secretary may authorise the payment of all or some of the instalment that would otherwise have been payable to the person to be paid to:

                     (c)  the young person; or

                     (d)  someone else for the benefit of the young person.


 

Part 3.14Compensation recovery

Division 1General

1160  General effect of Part

      1160(1)  This Part operates in certain specified circumstances to do one or more of the following:

                     (a)  reduce a person’s compensation affected payment;

                     (b)  render a person’s compensation affected payment not payable;

                     (c)  require the repayment of some or all of a person’s compensation affected payment;

because of the receipt of compensation by the person or the person’s partner.

      1160(2)  This Part applies whether or not there is any connection between the circumstances that give rise to the person’s qualification for the compensation affected payment and the circumstances that give rise to the receipt of compensation by the person or the person’s partner.

1161  Application of Part

      1161(1)  Subject to subsections (2) to (7), payments of a compensation affected payment are affected under this Part if:

                     (a)  whether the compensation was received before or after the commencement of this Part, the compensation affected payment is:

                              (i)  a newstart allowance in relation to which, under Subdivision BA of Division 1 of Part 2.12, the recipient of the allowance is not required to satisfy the activity test; or

                             (ii)   a sickness allowance; or

                            (iii)  a sickness benefit under the 1947 Act; or

                            (iv)  a rehabilitation allowance under the 1947 Act payable in place of sickness benefit under the 1947 Act; or

                     (b)  in the case of any other kind of compensation affected payment, the compensation was received on or after 1 May 1987 and the claim for the compensation affected payment was made on or after 1 May 1987.

      1161(2)  This Part applies to a pension PP (single) if:

                     (a)  the compensation was received on or after 20 March 1992; and

                     (b)  the claim for the pension was made on or after 20 March 1992.

      1161(3)  This Part applies to carer payment if:

                     (a)  the compensation was received on or after 1 January 1993; and

                     (b)  the claim for the carer payment was made on or after 1 January 1993.

      1161(4)  This Part applies to a mature age allowance or mature age partner allowance if:

                     (a)  the compensation was received on or after 20 March 1994; and

                     (b)  the claim for the allowance was made on or after 20 March 1994.

      1161(5)  This Part applies to partner allowance if:

                     (a)  the compensation was received on or after 20 September 1994; and

                     (b)  the claim for the allowance was made on or after 20 September 1994.

      1161(6)  This Part applies to age pension if:

                     (a)  the compensation was received on or after 20 March 1997; and

                     (b)  the person’s provisional commencement day or start day for the age pension is on or after 20 March 1997.

   1161(6A)  Subject to section 1161A, this Part applies to a compensation affected payment to which paragraph (l), (m) or (n) of the definition of that expression in subsection 17(1) applies if:

                     (a)  the compensation is received on or after 1 July 2004; and

                     (b)  either:

                              (i)  if the compensation affected payment to which that paragraph applies is one in respect of which a claim must be made for a person to be qualified for the payment—a claim is made for the payment on or after 1 July 2004; or

                             (ii)  if the compensation affected payment to which that paragraph applies is not one in respect of which a claim must be made for a person to be qualified for the payment—the compensation affected payment is received on or after 1 July 2004.

      1161(7)  In spite of subsection (1), Division 4 does not apply to:

                     (a)  a disability support wife pension; or

                     (b)  a special needs disability support wife pension;

received by a person if:

                     (c)  the compensation was received by the person on or after 1 May 1987 but before 1 January 1994; and

                     (d)  the claim for the pension was made on or after 1 May 1987 but before 1 January 1994.

1161A  Application of Part to supplementary compensation affected payments

   1161A(1)  For the purposes of this section:

                     (a)  a reference to a supplementary compensation affected payment is a reference to a compensation affected payment to which paragraph (l), (m) or (n) of the definition of compensation affected payment in subsection 17(1) applies; and

                     (b)  a supplementary compensation affected payment relates to any allowance, supplement, pension or payment of a kind that, in the applicable paragraph of the definition of compensation affected payment in subsection 17(1), is labelled as the underlying compensation affected payment.

   1161A(2)  Except as mentioned in this section, this Part does not apply to a supplementary compensation affected payment.

   1161A(3)  If:

                     (a)  as a result of the operation of section 1169, any underlying compensation affected payment to which a supplementary compensation affected payment relates was not payable in relation to the day on which the supplementary compensation affected payment was received; or

                     (b)  as a result of the operation of section 1173 or 1174, the rate of any underlying compensation affected payment to which a supplementary compensation affected payment relates was reduced to nil in relation to the day on which the supplementary compensation affected payment was received; or

                     (c)  the following conditions are satisfied:

                              (i)  the rate of any of the compensation affected payments that would have been made as mentioned in subparagraph 1181(1)(b)(ii) or (2)(d)(ii) or 1184A(2)(c)(ii) or (3)(d)(ii) is nil;

                             (ii)  the compensation affected payment is an underlying compensation affected payment to which a supplementary compensation affected payment relates;

                            (iii)  the underlying compensation affected payment was made in relation to the day on which the supplementary compensation affected payment was received; or

                     (d)  an adverse determination mentioned in subsection 1184I(1) has the effect that:

                              (i)  any underlying compensation affected payment to which a supplementary compensation affected payment relates is cancelled or suspended in relation to the day on which the supplementary compensation affected payment was received; or

                             (ii)  the rate of any underlying compensation affected payment to which a supplementary compensation affected payment relates is reduced to nil in relation to the day on which the supplementary compensation affected payment was received;

then:

                     (e)  in any case—the supplementary compensation affected payment is not payable; and

                      (f)  if paragraph (d) applies—for the purposes of subsection 1184I(1), the amount of the supplementary compensation affected payment is taken to be an amount that the person in relation to whom it was made is liable to pay to the Commonwealth because of the determination.

   1161A(4)  If:

                     (a)  any of:

                              (i)  the payments of the compensation affected payment mentioned in paragraph 1179(b); or

                             (ii)  the compensation affected payments mentioned in paragraph 1184A(1)(a);

                            is an underlying compensation affected payment to which a supplementary compensation affected payment relates; and

                     (b)  the underlying compensation affected payment was made in relation to the day on which the supplementary compensation affected payment was received;

then the sum mentioned in that paragraph is increased by the amount of the supplementary compensation affected payment.

   1161A(5)  If:

                     (a)  the rate of any of the compensation affected payments that would have been made as mentioned in subparagraph 1181(1)(b)(ii) or (2)(d)(ii) or 1184A(2)(c)(ii) or (3)(d)(ii) is nil; and

                     (b)  the compensation affected payment is an underlying compensation affected payment to which a supplementary compensation affected payment relates; and

                     (c)  the underlying compensation affected payment was made in relation to the day on which the supplementary compensation affected payment was received;

then the difference mentioned in paragraph 1181(1)(b) or (2)(d) or 1184A(2)(c) or (3)(d) is increased by the amount of the supplementary compensation affected payment.

   1161A(6)  If a compensation affected payment that would have been reduced as mentioned in subsection 1184A(4):

                     (a)  would have been reduced to nil; and

                     (b)  is an underlying compensation affected payment to which a supplementary compensation affected payment relates; and

                     (c)  was received in relation to the day on which the supplementary compensation affected payment was received;

then the recoverable amount mentioned in subsection 1184A(4) is increased by the amount of the supplementary compensation affected payment, but only to the extent that the sum of all increases under this subsection in relation to the periodic compensation payments does not exceed the sum of the amounts of those payments.

1162  Part to bind Crown

                   This Part binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory, of the Northern Territory and of Norfolk Island.

1163  Interpretation

      1163(1)  In a provision of this Part (other than section 1164), a reference to the payment or receipt of periodic compensation payments includes a reference to the payment or receipt, as the case may be, of arrears of periodic compensation payments.

      1163(2)  A reference in this Part to periodic compensation payments is a reference to:

                     (a)  a periodic compensation payment; or

                     (b)  if 2 or more periodic compensation payments relate to the same period, those payments.

      1163(3)  In this Part, a reference to a person’s partner receiving or claiming a compensation affected payment includes a reference to the partner receiving or claiming a compensation affected pension within the meaning of the Veterans’ Entitlements Act.

1164  Certain lump sums to be treated as though they were received as periodic compensation payments

                   If:

                     (a)  a person was entitled to periodic compensation payments under a law of a State or Territory; and

                     (b)  the person’s entitlement to the periodic payments was converted under the law of the State or Territory into an entitlement to a lump sum; and

                     (c)  the lump sum was calculated by reference to a period;

this Part applies to the person as if:

                     (d)  the person had not received:

                              (i)  the lump sum; or

                             (ii)  if the lump sum was to be paid in instalments—any of the instalments; and

                     (e)  the person had received in each fortnight during the period a periodic compensation payment equal to:

                            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).

1165  Effect of certain State and Territory laws

                   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 Act;

this Act 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.


 

Division 2Enforcement of compensation rights

1166  Secretary may require person to take action to obtain compensation

      1166(1)  If:

                     (a)  a person receives or claims a compensation affected payment; and

                     (b)  the person or the person’s partner is, or, in the Secretary’s opinion, may be, entitled to compensation; and

                     (c)  the person or the partner:

                              (i)  has taken no action to claim or obtain the compensation; or

                             (ii)  has taken 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 specified by the Secretary.

      1166(2)  The action specified by the Secretary is to be the action that the Secretary considers reasonable to enable the person to claim or obtain the compensation.

      1166(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 person may be entitled to compensation if the Secretary is satisfied that the agreement is void, ineffective or unenforceable.

      1166(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.

1167  Failure to comply with a requirement to take action to obtain compensation

      1167(1)  If the Secretary, under section 1166, requires a person who receives or claims a compensation affected payment to take action to claim or obtain compensation, the compensation affected payment is not payable to the person or is not to be granted, as the case may be, unless the person complies with the requirement.

      1167(2)  If the Secretary requires the partner of a person who receives or claims a compensation affected payment to take action to claim or obtain compensation, the compensation affected payment is not payable to the person or is not to be granted, as the case may be, unless the partner complies with the requirement.


 

Division 3Receipt of compensation

1168  Application

                   A provision of this Division that refers to a person receiving or claiming a compensation affected payment and receiving a lump sum compensation payment has effect regardless of whether the lump sum compensation payment was received before or after the person received or claimed the compensation affected payment.

1169  Compensation affected payment not payable during lump sum preclusion period

      1169(1)  If:

                     (a)  a person receives or claims a compensation affected payment; and

                     (b)  the person receives a lump sum compensation payment;

the compensation affected payment is not payable to the person in relation to any day or days in the lump sum preclusion period.

      1169(2)  In this section:

lump sum compensation payment does not include a lump sum payment:

                     (a)  to which section 1164 applies; or

                     (b)  that relates only to arrears of periodic compensation payments.

1170  Lump sum preclusion period

      1170(1)  Subject to subsection (2), if a person receives both periodic compensation payments and a lump sum compensation payment, the lump sum preclusion period is the period that:

                     (a)  begins on the day following the last day of the periodic payments period or, where there is more than one periodic payments period, the day following the last day of the last periodic payments period; and

                     (b)  ends at the end of the number of weeks worked out under subsections (4) and (5).

      1170(2)  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 at the end of the number of weeks worked out under subsections (4) and (5).

`     1170(3)  If neither of subsections (1) and (2) applies, the lump sum preclusion period is the period that:

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

                     (b)  ends at the end of the number of weeks worked out under subsections (4) and (5).

      1170(4)  The number of weeks in the lump sum preclusion period in relation to a person is the number worked out using the formula:

      1170(5)  If the number worked out under subsection (4) is not a whole number, the number is to be rounded down to the nearest whole number.

1171  Deemed lump sum payment arising from separate payments

      1171(1)  If:

                     (a)  a person receives 2 or more lump sum payments in relation to the same event that gave rise to an entitlement of the person to compensation (the multiple payments); and

                     (b)  at least one of the multiple payments is made wholly or partly in respect of lost earnings or lost capacity to earn;

the following paragraphs have effect for the purposes of this Act and the Administration Act:

                     (c)  the person is taken to have received one lump sum compensation payment (the single payment) of an amount equal to the sum of the multiple payments;

                     (d)  the single payment is taken to have been received by the person:

                              (i)  on the day on which he or she received the last of the multiple payments; or

                             (ii)  if the multiple payments were all received on the same day, on that day.

      1171(2)  A payment is not a lump sum payment for the purposes of paragraph (1)(a) if it relates exclusively to arrears of periodic compensation.

1172  Lump sum compensation not counted as ordinary income

                   If an amount of a compensation affected payment is not payable to a person under section 1169 because the person has received a lump sum compensation payment, that lump sum compensation payment is not to be regarded as ordinary income of either the person or the person’s partner (if any) for the purposes of a provision of this Act, other than point 1071A-4.

1173  Effect of periodic compensation payments on rate of person’s compensation affected payment

      1173(1)  If:

                     (a)  a person receives periodic compensation payments; and

                     (b)  the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, qualified for, and receiving, a compensation affected payment; and

                     (c)  the person receives or claims a compensation affected payment in relation to a day or days in the periodic payments period;

the rate of the person’s compensation affected payment in relation to that day or those days is reduced in accordance with subsection (2).

      1173(2)  The person’s daily rate of compensation affected payment is reduced by the amount of the person’s daily rate of periodic compensation.

      1173(3)  The reference in subsection (2) to a daily rate of periodic compensation is a reference to the amount worked out by dividing the total amount of the periodic compensation payments referred to in paragraph (1)(a) by the number of days in the periodic payments period.

      1173(4)  If:

                     (a)  a person receives periodic compensation payments; and

                     (b)  at the time of the event that gave rise to the entitlement of the person to compensation, the person was qualified for, and was receiving, a compensation affected payment; and

                     (c)  the person receives or claims a compensation affected payment in relation to a day or days in the periodic payments period;

the periodic compensation payments are to be treated as ordinary income of the person for the purposes of this Act.

1174  Effect of periodic compensation payments on rate of partner’s compensation affected payment

      1174(1)  If:

                     (a)  a person receives periodic compensation payments; and

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

                     (c)  the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, qualified for, and receiving, a compensation affected payment; and

                     (d)  the person is qualified for a compensation affected payment in relation to a day or days in the periodic payments period but, solely because of the operation of this Part, does not, or would not, receive the payment; and

                     (e)  the person’s partner receives or claims a compensation affected payment in relation to a day or days in the periodic payments period;

the amount (if any) by which the daily rate of periodic compensation payable to the person exceeds the daily rate of the compensation affected payment for which the person is qualified in relation to a day or days in the periodic payments period (the excess amount) is to be treated as ordinary income of the person’s partner for the purpose of the calculation of the amount of the compensation affected payment referred to in paragraph (e).

      1174(2)  The reference in subsection (1) to a daily rate of periodic compensation is a reference to the amount worked out by dividing the total amount of the periodic compensation payments referred to in paragraph (1)(a) by the number of days in the periodic payments period.

      1174(3)  For the purposes of subsection (1):

                     (a)  the amount that would, apart from this section, be the amount of the partner’s ordinary income in relation to the day or days referred to in paragraph (1)(e) is to be increased by the excess amount; and

                     (b)  the increased amount is to be taken to be the amount of the partner’s ordinary income in relation to that day or those days, as the case may be.

1175  Rate reduction under both income/assets test and this Part

                   If the rate of a person’s compensation affected payment is reduced under this Part, the reduction applies to the person’s rate as reduced under the ordinary income test Module or the assets test Module of the relevant Rate Calculator.

1176  Periodic compensation not counted as ordinary income

                   If an instalment of a compensation affected payment payable to a person is reduced under section 1173 because of the receipt of periodic compensation payments, those payments are not to be regarded as ordinary income of the person for the purposes of a provision of this Act, other than point 1071A-4.


 

Division 4Recoverable amounts

Subdivision APreliminary

1177  Interpretation

                   If:

                     (a)  a person is liable to make a compensation payment to another person; or

                     (b)  an authority of a State or Territory has determined that it will make a compensation payment to another person, whether or not it is liable to make the payment;

then, for the purposes of this Division, in relation to the person to whom the compensation is payable or is to be paid, the following paragraphs have effect:

                     (c)  a reference to the lump sum preclusion period is a reference to the period that would represent the lump sum preclusion period if the compensation were paid in accordance with the liability or determination;

                     (d)  a reference to the periodic payments period is a reference to the period that would represent the periodic payments period if the compensation were paid in accordance with the liability or determination.

Subdivision BRecovery from recipient of compensation affected payment

1178  Repayment of amount where both lump sum and payments of compensation affected payment have been received

      1178(1)  If:

                     (a)  a person receives a lump sum compensation payment; and

                     (b)  the person receives payments of a compensation affected payment in relation to a day or days in 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 specified in the notice.

      1178(2)  The amount to be specified in the notice is the recoverable amount under section 1179.

1179  The section 1178 recoverable amount

                   The recoverable amount under this section is equal to the smaller of the following amounts:

                     (a)  the compensation part of the lump sum compensation payment;

                     (b)  the sum of the payments of the compensation affected payment made to the person in relation to a day or days in the lump sum preclusion period.

1180  Repayment where both periodic compensation payments and payments of compensation affected payment have been received

      1180(1)  If:

                     (a)  a person receives periodic compensation payments; and

                     (b)  the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, qualified for, and receiving, a compensation affected payment; and

                     (c)  the person receives payments of a compensation affected payment in relation to a day or days in the periodic payments period; and

                     (d)  the payments referred to in paragraph (c) have not been reduced to nil as a result of the operation of section 1173;

the Secretary may, by written notice to the person, determine that the person is liable to pay to the Commonwealth the amount specified in the notice.

      1180(2)  The amount to be specified in a notice for the purpose of subsection (1) is the recoverable amount under section 1181.

1181  The section 1180 recoverable amount

      1181(1)  Subject to subsection (2), the recoverable amount under this section is equal to the smaller of the following amounts:

                     (a)  the sum of the periodic compensation payments;

                     (b)  the difference between:

                              (i)  the sum of the compensation affected payments made to the person in relation to a day or days in the periodic payments period; and

                             (ii)  the sum of the compensation affected payments that would have been made to the person in relation to any such day or days had those payments been made at the rate to which the payments were reduced as a result of the operation of section 1173.

      1181(2)  If:

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

                     (b)  the person’s partner receives a compensation affected payment in relation to a day or days in the periodic payments period;

the recoverable amount under this section is equal to the smaller of the following amounts:

                     (c)  the sum of the periodic compensation payments;

                     (d)  the difference between:

                              (i)  the sum of the compensation affected payments made to the person and the person’s partner in relation to a day or days in the periodic payments period; and

                             (ii)  the sum of the compensation affected payments that would have been made to the person and the person’s partner in relation to any such day or days had those payments been made at the rates to which the payments were reduced as a result of the operation of sections 1173 and 1174.

Subdivision CRecovery from compensation payers and insurers

1182  Secretary may send preliminary notice to potential compensation payer or insurer

      1182(1)  If:

                     (a)  a person (the claimant) makes a claim against another person (the potential compensation payer) for compensation; and

                     (b)  the claimant claims a compensation affected payment in relation to a day or days in the periodic payments period or the lump sum preclusion period, as the case may be;

the Secretary may give written notice to the potential compensation payer that the Secretary may wish to recover an amount from the potential compensation payer.

      1182(2)  If:

                     (a)  a person (the claimant) makes a claim against a person (the potential compensation payer) for compensation; and

                     (b)  the claimant claims a compensation affected payment for a day or days in the periodic payments period or the lump sum preclusion period, as the case may be; and

                     (c)  an 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 that the Secretary may wish to recover an amount from the insurer.

      1182(3)  A notice must contain:

                     (a)  a statement of the potential compensation payer’s or insurer’s obligation under section 1183; and

                     (b)  a statement of the effect of section 1184D so far as it relates to the notice.

1183  Potential compensation payer or insurer must notify Secretary of liability

      1183(1)  If a person (the potential compensation payer):

                     (a)  is given a notice under subsection 1182(1) in relation to a person; and

                     (b)  whether before or after receiving the notice, the potential compensation payer becomes liable to pay compensation to the person;

the potential compensation payer must give written notice to the Secretary of the liability within 7 days after:

                     (c)  becoming liable; or

                     (d)  receiving the notice;

whichever happens later.

Penalty:  Imprisonment for 12 months.

      1183(2)  If an insurer:

                     (a)  is given a notice under subsection 1182(2) in relation to a claim by a person; and

                     (b)  whether before or after receiving the notice, the insurer becomes liable to indemnify the potential compensation payer, either wholly or partly, in relation to the claim;

the insurer must give written notice to the Secretary of the liability within 7 days after:

                     (c)  becoming liable; or

                     (d)  receiving the notice;

whichever happens later.

Penalty:  Imprisonment for 12 months.

      1183(3)  Strict liability applies to:

                     (a)  an element of an offence against subsection (1) that a notice is a notice under subsection 1182(1); and

                     (b)  an element of an offence against subsection (2) that a notice is a notice under subsection 1182(2).

1184  Secretary may send recovery notice to compensation payer or insurer

      1184(1)  If:

                     (a)  a person (the compensation payer):

                              (i)  is liable to pay compensation to a person (a claimant); or

                             (ii)  where the compensation payer is an authority of a State or Territory, has determined that a payment by way of compensation is to be made to a claimant; and

                     (b)  the claimant has received a compensation affected payment in relation to a day or days in the periodic payments period or the lump sum preclusion period, as the case may be;

the Secretary may give written notice to the compensation payer that the Secretary proposes to recover from the compensation payer the amount specified in the notice.

      1184(2)  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; and

                     (b)  the person has received a compensation affected payment in relation to a day or days in the periodic payments period or the lump sum preclusion period, as the case may be;

the Secretary may give written notice to the insurer that the Secretary proposes to recover from the insurer the amount specified in the notice.

      1184(3)  If a compensation payer or insurer is given notice under subsection (1) or (2), as the case may be, the compensation payer or insurer is liable to pay to the Commonwealth the amount specified in the notice.

      1184(4)  The amount to be specified in the notice is the recoverable amount under section 1184A.

      1184(5)  A notice under this section must contain a statement of the effect of section 1184D so far as it relates to such a notice.

      1184(6)  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 the compensation is inalienable.

1184A  The section 1184 recoverable amount

   1184A(1)  If a person receives compensation affected payments in relation to a day or days in a lump sum preclusion period, the recoverable amount under this section is equal to the smallest of the following amounts:

                     (a)  the sum of all compensation affected payments made to the person that relate to a day or days in a lump sum preclusion period;

                     (b)  the compensation part of the lump sum payment;

                     (c)  in the case of a compensation payer—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 notice under section 1182 in relation to the matter; or

                             (ii)  if the compensation payer has not received a notice under section 1182—the notice under section 1184 in relation to the matter;

                     (d)  in the case of an insurer—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 notice under section 1182 in relation to the matter; or

                             (ii)  if the insurer has not received a notice under section 1182—the notice under section 1184 in relation to the matter.

   1184A(2)  Subject to subsection (4), if:

                     (a)  a person receives compensation affected payments in relation to a day or days in a periodic payments period; and

                     (b)  either:

                              (i)  the person is not a member of a couple; or

                             (ii)  the person’s partner neither receives nor claims a compensation affected payment in relation to any day in the periodic payments period;

the recoverable amount under this section is equal to the smallest of the following amounts:

                     (c)  the difference between:

                              (i)  the sum of all compensation affected payments made to the person that relate to a day or days in a periodic payments period; and

                             (ii)  the sum of all compensation affected payments that would have been made to the person in relation to any such day or days had those payments been reduced in accordance with section 1173;

                     (d)  the sum of the amounts of the periodic compensation payments;

                     (e)  in the case of a compensation payer—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 notice under section 1182 in relation to the matter; or

                             (ii)  if the compensation payer has not received a notice under section 1182—the notice under section 1184 in relation to the matter;

                      (f)  in the case of an insurer—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 notice under section 1182 in relation to the matter; or

                             (ii)  if the insurer has not received a notice under section 1182—the notice under section 1184 in relation to the matter.

   1184A(3)  Subject to subsection (4), if:

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

                     (b)  compensation affected payments received by the person were received in relation to a day or days in a periodic payments period; and

                     (c)  the person’s partner receives a compensation affected payment in relation to a day or days in the periodic payments period;

the recoverable amount under this section is equal to the smallest of the following amounts:

                     (d)  the difference between:

                              (i)  the sum of all compensation affected payments made to the person and the person’s partner in relation to a day or days in the periodic payments period; and

                             (ii)  the sum of all compensation affected payments that would have been made to the person and the person’s partner in relation to any such day or days had those payments been reduced as a result of the operation of section 1173 or 1174;

                     (e)  the sum of the amounts of the periodic compensation payments;

                      (f)  in the case of a compensation payer—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 notice under section 1182 in relation to the matter; or

                             (ii)  if the compensation payer has not received a notice under section 1182—the notice under section 1184 in relation to the matter;

                     (g)  in the case of an insurer—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 notice under section 1182 in relation to the matter; or

                             (ii)  if the insurer has not received a notice under section 1182—the notice under section 1184 in relation to the matter.

   1184A(4)  If:

                     (a)  at the time of the event that gave rise to the entitlement of a person to compensation, the person was qualified for, and was receiving, a compensation affected payment; and

                     (b)  the person or the person’s partner received or claimed a compensation affected payment in relation to a day or days in the periodic payments period;

the recoverable amount is the amount determined by the Secretary to be the total amount by which the person’s, or the person’s partner’s, compensation affected payment in relation to a day or days in the periodic payments period would have been reduced if a determination had been made under Division 7 of Part 3 of the Administration Act because of point 1064-E3, 1066A-F2A, 1067G-H25, 1067L-D24, 1068-G8A, 1068A-E13 or 1068B-D21 of this Act.

1184B  Preliminary notice or recovery notice suspends liability to pay compensation

   1184B(1)  If a compensation payer has been given a notice under section 1182 or 1184 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.

   1184B(2)  If an insurer has been given a notice under section 1182 or 1184 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 to so indemnify the compensation payer; and

                     (b)  the compensation payer is not liable to pay that compensation;

while the notice has effect.

1184C  Compensation payer’s or insurer’s payment to Commonwealth discharges liability to compensation claimant

   1184C(1)  Payment to the Commonwealth of an amount that a compensation payer is liable to pay under section 1184 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.

   1184C(2)  Payment to the Commonwealth of an amount that an insurer is liable to pay under section 1184 in relation to a person 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.

1184D  Offence to make compensation payment after receiving preliminary notice or recovery notice

   1184D(1)  If a person (the potential compensation payer) has been given a notice under section 1182 or 1184 in relation to the payment of compensation to a person, the potential compensation payer must not make the compensation payment to the person.

Penalty:  Imprisonment for 12 months.

1184D(1A)  Subsection (1) does not apply if:

                     (a)  in the case of a notice under section 1182—the Secretary has given the potential compensation payer written notice that the notice under section 1182 is revoked; or

                     (b)  in the case of a notice under section 1184—the potential compensation payer has paid to the Commonwealth the amount specified in the notice; or

                     (c)  the Secretary has given the potential compensation payer written permission to pay the compensation.

   1184D(2)  If an insurer has been given a notice under section 1182 or 1184 in relation to the insurer’s liability to indemnify a compensation payer, the insurer must not make any payment to the compensation payer in relation to that liability.

Penalty:  Imprisonment for 12 months.

1184D(2A)  Subsection (2) does not apply if:

                     (a)  in the case of a notice under section 1182—the Secretary has given the insurer written notice that the notice under section 1182 is revoked; or

                     (b)  in the case of a notice under section 1184—the insurer has paid to the Commonwealth the amount specified in the notice; or

                     (c)  the Secretary has given the insurer written permission to pay the amount.

   1184D(3)  Strict liability applies to an element of an offence against subsection (1) or (2) that:

                     (a)  a notice is a notice under section 1182; or

                     (b)  a notice is a notice under section 1184.

1184E  Liability of compensation payer or insurer to pay the Commonwealth if there is a contravention of section 1184D

    1184E(1)  A compensation payer or insurer who contravenes section 1184D is, in addition to being liable under that section, liable to pay to the Commonwealth:

                     (a)  if the contravention relates to a notice under section 1182—an amount determined by the Secretary; or

                     (b)  if the contravention relates to a notice under section 1184—the recoverable amount specified in the notice.

    1184E(2)  The amount determined by the Secretary under paragraph (1)(a) must not be more than the smallest of the amounts worked out:

                     (a)  if the person is not a member of a couple—under subsection 1184A(1), (2) or (4), as the case requires; or

                     (b)  if the person is a member of a couple—under subsection 1184A(1), (2), (3) or (4), as the case requires.

    1184E(3)  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.


 

Division 5Recoverable debts

1184F  Debts resulting from notices under section 1178 or 1180

                   If the Secretary gives a person a notice under section 1178 or 1180 determining that the person is liable to pay to the Commonwealth the amount specified in the notice, the amount so specified is a debt due by the person to the Commonwealth.

1184G  Debts resulting from notices under section 1184

                   If the Secretary gives a person a notice under section 1184 that the Secretary proposes to recover a specified amount from the person, the specified amount is a debt due by the person to the Commonwealth.

1184H  Debts resulting from contravention of section 1184D

   1184H(1)  An amount payable by a compensation payer under section 1184E is a debt due by the compensation payer to the Commonwealth.

   1184H(2)  An amount payable by an insurer under section 1184E is a debt due by the insurer to the Commonwealth.

1184I  Compensation arrears debts

     1184I(1)  If an adverse determination is made in relation to a person because of point 1064-E3, 1066A-F2A, 1067G-H25, 1067L-D24, 1068-G8A, 1068A-E13 or 1068B-D21, the amount that the person is liable to pay to the Commonwealth because of the determination is a debt due by the person to the Commonwealth.

     1184I(2)  In this section:

adverse determination means a determination under section 79, 80, 81 or 82 of the Administration Act.


 

Division 6Miscellaneous

1184J  Secretary may give recovery notice either to compensation payer or to insurer but not to both

    1184J(1)  The Secretary is not to give a notice to an insurer under section 1184 about a matter if there is a notice to a compensation payer under section 1184 in force in relation to the same matter.

    1184J(2)  The Secretary is not to give a notice to a compensation payer under section 1184 about a matter if there is a notice to an insurer under section 1184 in force in relation to the same matter.

1184K  Secretary may disregard some payments

   1184K(1)  For the purposes of this Part, the Secretary may treat the whole or 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.

   1184K(2)  If:

                     (a)  a person or a person’s partner receives or claims a compensation affected payment; and

                     (b)  the person receives compensation; and

                     (c)  the set of circumstances that gave rise to the claim for compensation is not related to the set of circumstances that gave rise to the person’s or the person’s partner’s receipt of, or claim for, the compensation affected payment;

the fact that those 2 sets of circumstances are unrelated does not alone constitute special circumstances for the purposes of subsection (1).

1184L  Application to review compensation decision—disability support pension

    1184L(1)  This section applies if a person claims a disability support pension and:

                     (a)  the Secretary decides under section 1167 that the pension is not to be granted or is not payable; or

                     (b)  the Secretary decides under section 1169 that the pension is not payable; or

                     (c)  the Secretary decides that, if the person were qualified for the pension, the rate of the pension would be reduced to nil under section 1173.

    1184L(2)  If:

                     (a)  an application is made, under section 142 of the Administration Act, to the Social Security Appeals Tribunal for a review of that decision; and

                     (b)  at the time of the application, the Secretary has not taken the necessary steps to satisfy himself or herself whether the person is qualified for the disability support pension or the disability wage supplement; and

                     (c)  the person who claimed the disability support pension or disability wage supplement requests the Secretary, in writing, to take those steps;

the Secretary must take those steps as soon as practicable after the request is made.

1185  Special provision for certain recipients of dependency-based payments

      1185(1)  This section applies to a person if:

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

                     (b)  the person was a member of the same couple immediately before 20 September 2001; and

                     (c)  the person’s partner was receiving a compensation affected payment immediately before 20 September 2001; and

                     (d)  the person was receiving a dependency-based payment immediately before 20 September 2001; and

                     (e)  the person was born on or before 1 July 1955.

      1185(2)  If this section applies to a person, the following paragraphs have effect:

                     (a)  the dependency-based payment does not cease to be payable to the person only because the person’s partner receives periodic compensation payments;

                     (b)  in spite of Division 3, the person continues to be qualified for the dependency-based payment to the same extent as he or she would have if the person’s partner had not received the payments of compensation.

      1185(3)  Paragraph (2)(b) does not prevent a dependency-based payment being cancelled, or ceasing to be payable, under a provision of the social security law, other than a provision of this Part.

      1185(4)  Paragraph (2)(b) does not prevent the rate of a dependency-based payment being reduced or cancelled under the social security law because of the operation of section 1174.

      1185(5)  In this section:

dependency-based payment means:

                     (a)  wife pension; or

                     (b)  mature age partner allowance; or

                     (c)  partner allowance.


 

Part 3.14ARetirement assistance for farmers

Division 1General

1185A  Purpose of Part

                   This Part deals with the transfer of farming interests to family members of a younger generation. The purpose of the Part is to provide that, if the conditions set out in the Part are met, the value of any such interests transferred by a qualifying farmer, his or her partner, or a former partner of the qualifying farmer, will be disregarded in determining:

                     (a)  whether a social security payment is payable; or

                     (b)  at what rate a social security payment is payable.

1185AA  Applicable cut-off date

                   In this Part:

applicable cut-off date means:

                     (a)  in relation to a transfer, where:

                              (i)  the transfer was not completed before 1 July 2001; and

                             (ii)  a pre-assessment request in relation to the transfer was lodged with the Department or the Agency before 1 August 2001; and

                            (iii)  the Department or Agency responded affirmatively to the request;

                            the first day after the end of the period of 3 months beginning on the day on which the Department or Agency responded to the request; and

                     (b)  in relation to any other transfer—1 July 2001.

1185AB  Pre-assessment request

Pre-assessment request

1185AB(1)  For the purposes of this Part, a pre-assessment request is a written request by a person:

                     (a)  for advice about whether this Part would apply to the person, or to the person’s partner, in the event that a proposed transfer were to take place; and

                     (b)  that sets out sufficient information to enable the advice to be given.

1185AB(2)  For the purposes of subsection (1), a written request does not include a request made by email.

Contact by telephone etc.—timing of request

1185AB(3)  For the purposes of this Part, if:

                     (a)  a person contacted the Department or the Agency:

                              (i)  by telephone; or

                             (ii)  by fax; or

                            (iii)  by email; or

                            (iv)  in person;

                            for advice about whether this Part would apply to the person, or to the person’s partner, in the event that a proposed transfer were to take place; and

                     (b)  the person followed up that contact by lodging a pre-assessment request with the Department or Agency within 21 days after the day on which the person contacted the Department or Agency;

the person is taken to have lodged the pre-assessment request on the day on which the person contacted the Department or Agency.

Affirmative response to pre-assessment request

1185AB(4)  For the purposes of this Part, if a person lodges a pre-assessment request, the Department or the Agency is taken to have responded affirmatively to that request if, and only if, the Secretary, or an officer of the Agency, gives the person a written notice:

                     (a)  that contains advice to the effect that this Part would apply to the person, or to the person’s partner, in the event that the proposed transfer were to take place; and

                     (b)  that specifies the date on which the notice was issued.

Timing of response

1185AB(5)  The Department or the Agency is taken to have responded to a pre-assessment request on the date specified in the notice as the date on which the notice was issued.

1185B  Part to apply to certain transfers of estates in farms etc.

   1185B(1)  Subject to subsection (3), this Part applies to a person if:

                     (a)  at any time after 14 September 1992 but before the applicable cut-off date, the person, being then a qualifying farmer, transferred by way of gift to one, or more than one, eligible descendant (either solely to the eligible descendant or jointly to him or her and his or her partner):

                              (i)  his or her qualifying interest in the farm or farms in which he or she had such an interest; and

                             (ii)  all the qualifying interests that he or she had in relevant farm assets; and

                     (b)  the person, or (if the person is a member of a couple) the person or his or her partner:

                              (i)  has reached pension age; or

                             (ii)  will reach pension age before 1 July 2001; and

                     (c)  the total value for the purposes of this section of the farm or farms, and the relevant farm assets, referred to in paragraph (a) does not exceed $500,000; and

                     (d)  during the last 3 years before the transfer was completed, the eligible descendant or each of the eligible descendants:

                              (i)  had been actively involved with the farm or any of the farms; or

                             (ii)  would, in the opinion of the Secretary, have been so involved but for exceptional circumstances beyond his or her control; and

                     (e)  if the person is a member of a couple—the person’s partner does not have:

                              (i)  a legal estate or interest in the farm or farms referred to in subparagraph (a)(i) or in any other farm; or

                             (ii)  a legal interest in any relevant farm asset; and

                      (f)  the person satisfies the farmers’ income test for the purposes of this Part.

Note 1:       For qualifying farmer, transfer, eligible descendant, qualifying interest, farm and relevant farm assets, see subsection 17A(1).

Note 2:       For pension age see subsection 23(1).

Note 3:       For the value for the purposes of this section of a farm or relevant farm asset see subsection (4) and for actively involved with a farm see subsection (5).

Note 4:       For the farmers’ income test see section 1185K.

   1185B(2)  Subject to subsection (3), this Part also applies to a person if:

                     (a)  at any time after 14 September 1992 but before the applicable cut-off date, the person, being then an eligible former partner of a qualifying farmer, transferred by way of gift to one, or more than one, eligible descendant of the farmer (either solely to the eligible descendant or jointly to him or her and his or her partner):

                              (i)  his or her qualifying interest in the farm or farms in which he or she had such an interest; and

                             (ii)  all the qualifying interests that he or she had in relevant farm assets; and

                     (b)  the person has reached pension age or will reach pension age before 1 July 2001; and

                     (c)  the total value for the purposes of this section of the farm or farms, and the relevant farm assets, referred to in paragraph (a) does not exceed $500,000; and

                     (d)  during the last 3 years before the transfer was completed, the eligible descendant or each of the eligible descendants:

                              (i)  had been actively involved with the farm or any of the farms; or

                             (ii)  would, in the opinion of the Secretary, have been so involved but for exceptional circumstances beyond his or her control; and

                     (e)  the person satisfies the farmers’ income test for the purposes of this Part.

Note 1:       For eligible former partner of a qualifying farmer, transfer, eligible descendant, qualifying interest, farm, and relevant farm assets see subsection 17A(1).

Note 2:       For pension age see subsection 23(1).

Note 3:       For the value for the purposes of this section of a farm or relevant farm asset see subsection (4) and for actively involved with a farm see subsection (5).

Note 4:       For the farmers’ income test see section 1185K.

   1185B(3)  This Part does not apply to the person if:

                     (a)  immediately before the transfer, the eligible descendant, or one of the eligible descendants, referred to in paragraph (1)(a) or (2)(a) (as the case may be) had a qualifying interest in:

                              (i)  the farm or one of the farms referred to in paragraph (1)(a)(i) or (2)(a)(i); or

                             (ii)  any relevant farm asset; and

                     (b)  the eligible descendant had acquired the qualifying interest in the farm, or in the relevant farm asset, after 14 September 1997; and

                     (c)  the consideration, or part of the consideration, for the interest so acquired was the wages forgone by the eligible descendant while he or she was working as an employee on the farm or any of the farms.

Note:          For transfer, eligible descendant, qualifying interest, farm and relevant farm asset see subsection 17A(1).

   1185B(4)  If a person transfers a qualifying interest that the person has in a farm or a relevant farm asset, then:

                     (a)  if paragraph (b) does not apply—the value for the purposes of this section of the farm or relevant farm asset is its value when the transfer is completed; or

                     (b)  if, immediately before the transfer by the person of his or her qualifying interest in the farm or relevant farm asset, the transferee had a qualifying interest in the farm or relevant farm asset—the value for the purposes of this section of the farm or relevant farm asset is its value when the transfer is completed less the value of the transferee’s qualifying interest in it at that time.

   1185B(5)  For the purposes of paragraphs (1)(d) and (2)(d), a person is taken to have been actively involved with a farm during a particular period if, during that period, the person:

                     (a)  has contributed a significant part of his or her labour to the development of the farm; or

                     (b)  has undertaken educational studies or training in a field that, in the opinion of the Secretary, is relevant to the development or management of the farm enterprise.

1185C  How to assess the value of farms etc. subject to a transfer

Value of farm affected by previous transaction

   1185C(1)  If:

                     (a)  a transfer of a kind referred to in paragraph 1185B(1)(a) or (2)(a) is completed after 14 September 1997; and

                     (b)  at any time before the transfer but after 14 September 1997, the person making the transfer entered into a transaction or transactions as a result of which:

                              (i)  the value of the farm or farms in which the person had a qualifying interest immediately before the transfer is less than the value that that farm or those farms would have had immediately before the transfer if the person had not entered into the transaction or transactions (the unreduced farm value); or

                             (ii)  the value of the relevant farm assets in which the person had a qualifying interest immediately before the transfer is less than the value that those relevant farm assets would have had immediately before the transfer if the person had not entered into the transaction or transactions (the unreduced assets value);

then, for the purposes of section 1185B:

                     (c)  the value of that farm or those farms is taken to be an amount equal to the unreduced farm value; and

                     (d)  the value of those relevant farm assets is taken to be an amount equal to the unreduced assets value.

Life interest retained in principal home on farm

   1185C(2)  If, when transferring by way of gift to another person his or her qualifying interest in a farm, a person retains a freehold estate, a leasehold interest or a life interest in the dwelling-house on the farm, and the adjacent private land, that constitute the person’s principal home, then, for the purposes of section 1185B:

                     (a)  the person is taken to have transferred the whole of his or her qualifying interest in the farm by way of gift; but

                     (b)  when assessing the value of the farm, the value of the dwelling-house and the adjacent private land is not to be included.

General rule

   1185C(3)  Subject to this section, apply section 1121A in working out the value of a farm or farms, and any relevant farm assets, for the purposes of this Division.

Note:          For transfer, qualifying interest, eligible descendant, farm and relevant farm asset see subsection 17A(1).


 

Division 2Modification of provisions relating to assets test

1185D  Transfer of estate in farm etc. not disposal of an asset

   1185D(1)  If this Part applies to a person because of subsection 1185B(1), then, subject to subsections (3) and (5):

                     (a)  the transfer by the person of his or her qualifying interest in a farm or in a relevant farm asset is taken not to be a disposal of an asset (within the meaning of section 1123); and

                     (b)  if the person’s partner has also transferred by way of gift to an eligible descendant of the person any qualifying interest in a farm or in a relevant farm asset, that transfer is taken not to be a disposal of an asset (within the meaning of section 1123).

   1185D(2)  If this Part applies to a person because of subsection 1185B(2), then, subject to subsections (4) and (5), the transfer by the person of his or her qualifying interest in a farm or in a relevant farm asset is taken not to be a disposal of an asset (within the meaning of section 1123).

   1185D(3)  If the applicable cut-off date in relation to the transfer referred to in paragraph (1)(a) was 1 July 2001, and:

                     (a)  when the transfer was completed; or

                     (b)  in the case of such a transfer that was completed before 15 September 1997—on 15 September 1997;

neither the person making the transfer nor his or her partner had reached pension age, subsection (1) only applies after one of them reaches that age.

   1185D(4)  If the applicable cut-off date in relation to the transfer referred to in subsection (2) was 1 July 2001, and:

                     (a)  when the transfer was completed; or

                     (b)  in the case of such a transfer that was completed before 15 September 1997—on 15 September 1997;

the person making the transfer had not reached pension age, subsection (2) only applies after the person reaches that age.

Note 1:       For transfer, qualifying interest, eligible descendant, farm and relevant farm asset see subsection 17A(1).

Note 2:       For pension age see subsection 23(1).

   1185D(5)  Disregard subsections (1) and (2) when working out a rate for the purposes of Division 6 of Part 2.2A.

Note:          Part 2.2A provides for the payment of a pension bonus to a person who qualifies for an age pension if the person has deferred claiming that pension for a period of at least one year and the person, or the person’s partner, has worked gainfully during that period.

 

Division 3—Claims for social security payment


 

Division 4Requests for increase in rate of social security payment

1185F  Application

    1185F(1)  This Division applies if:

                     (a)  a person, or a person’s partner, has reached pension age; and

                     (b)  this Part applies because of a transfer of qualifying interests by the person or the person’s partner; and

                     (c)  the person is receiving a social security payment under this Act; and

                     (d)  the value of the qualifying interests has been included in the value of the person’s assets, or the partner’s assets, when calculating the rate of the person’s social security payment.

1185G  Request for increase

                   If:

                     (a)  the rate at which a social security payment is being, or has been, paid to a person is less than the rate (the increased rate) at which it would be, or would have been, paid if the value of the qualifying interests transferred by the person or the person’s partner had not been included in the value of the person’s assets, or of the partner’s assets, in calculating the rate of the person’s social security payment; and

                     (b)  the person wants the social security payment to be paid at the increased rate;

the person must make a request to that effect.

1185H  Form of request

                   A request under section 1185G must be made in writing and must be in accordance with a form approved by the Secretary.

1185J  Determination of request

    1185J(1)  If:

                     (a)  a person makes a request under section 1185G in respect of a social security payment; and

                     (b)  the Secretary is satisfied that the rate at which the social security payment is being, or has been, paid to the person is less than the rate at which it would be, or would have been, paid if the value of the qualifying interests transferred by the person or the person’s partner had not been included in the value of the person’s assets, or the partner’s assets, when calculating the rate of the person’s social security payment;

the Secretary must determine that the request is to be granted.

    1185J(2)  The determination takes effect:

                     (a)  if the transfer was completed before 15 September 1998 and the person makes the request before that day—on 15 September 1997 or the day on which the transfer was completed, whichever is later; or

                     (b)  if the transfer was completed after 14 September 1998 but before the applicable cut-off date and the person makes the request during the period of 3 months that starts on the day on which the transfer is completed—on the day on which the transfer was completed; or

                     (c)  in any other case—on the day on which the request is made.


 

Division 5Farmers’ income test

1185K  Does a person satisfy the farmers’ income test?

How to work out whether the farmers’ income test is satisfied

   1185K(1)  This is how to work out whether a person who has transferred his or her qualifying interest in a farm or farms satisfies the farmers’ income test for the purposes of this Part:

Method statement

Step 1.   Work out under subsection (2) the amount of the person’s ordinary income (other than ordinary income from farming) for each of the last 3 financial years before the applicable completion day (the income test years).

              If the person was a member of a couple on the applicable completion day, work out also under subsection (2) the amount of his or her partner’s ordinary income (other than ordinary income from farming) for the 3 income test years.

              Add up all the amounts so obtained. The result is called the person’s total non-farm income.

Step 2.   Work out under subsection (3) the amount of the person’s ordinary income from farming for each of the 3 income test years.

              If the person was a member of a couple on the applicable completion day, work out also under subsection (3) the amount of his or her partner’s ordinary income from farming for the 3 income test years.

              Add up all the amounts of positive income for both the person and the person’s partner and deduct from that total the amounts of negative income (if any) for both the person and the person’s partner. The result is called the person’s total farm income (which may be either positive or negative).

Step 3.   Work out the person’s total income for the 3 income test years:

               (a)     if the person’s total farm income is a positive amount—by adding that amount to the amount of the person’s total non-farm income; or

               (b)     if the person’s total farm income is a negative amount—by deducting that amount from the amount of the person’s total non-farm income.

Step 4.   Work out under subsection (4) the maximum basic rate for age pension applicable to the person. Multiply that rate by 3. The result is called the person’s maximum basic entitlement.

Step 5.   If the person’s total income for the 3 income test years is less than the person’s maximum basic entitlement, the person satisfies the farmers’ income test for the purposes of this Part.

              If the person’s total income for the 3 income test years equals or exceeds the person’s maximum basic entitlement, the person does not satisfy the farmers’ income test for the purposes of this Part.

Person’s ordinary income from all sources other than farming

   1185K(2)  For the purpose of working out a person’s ordinary income from all sources other than farming during a financial year, the following provisions have effect:

                     (a)  the provisions of Part 3.10 other than Division 1B apply to the person and so apply as if any reference in Division 1A to a tax year were a reference to that financial year;

                     (b)  any return on a financial asset that the person has actually received during the financial year is taken to be ordinary income of the person.

Person’s ordinary income from farming

   1185K(3)  For the purpose of working out a person’s ordinary income from farming during a financial year, the following provisions have effect:

                     (a)  the provisions of Part 3.10 other than Division 1B apply to the person and so apply as if:

                              (i)  any reference in subsection 1074(1) to a tax year were a reference to that financial year; and

                             (ii)  subsection 1074(2) and section 1075 were omitted;

                     (b)  any return on a financial asset that the person has actually received during the financial year and that relates to a farm or a relevant farm asset is taken to be ordinary income of the person from farming;

                     (c)  if, at the end of the financial year, the value of all trading stock on hand that relates to a farm is less than the value of all such trading stock on hand at the beginning of that financial year—the amount of the difference is to be deducted from that part of the person’s ordinary income from farming for that financial year that is income in the form of profits;

                     (d)  there is also to be deducted from the person’s ordinary income from farming:

                              (i)  losses and outgoings that relate to a farm and are allowable deductions for the purposes of section 51 of the Income Tax Assessment Act 1936 or section 8-1 of the Income Tax Assessment Act 1997, as appropriate; and

                             (ii)  depreciation that relates to a relevant farm asset and is an allowable deduction for the purposes of subsection 54(1) of the Income Tax Assessment Act 1936 or Division 42 of the Income Tax Assessment Act 1997; and

                           (iia)  amounts that relate to a relevant farm asset and can be deducted for the decline in value of the asset under Subdivision 40-B of the Income Tax Assessment Act 1997; and

                            (iii)  amounts that relate to a farm or a relevant farm asset and are allowable deductions under subsection 82AAC(1) of the Income Tax Assessment Act 1936;

                     (e)  if a negative result is obtained after applying paragraphs (c) and (d)—the person’s ordinary income from farming for the financial year is a negative income;

                      (f)  if paragraph (e) does not apply—the person’s ordinary income from farming for the financial year is a positive income.

Person’s maximum basic rate for age pension

   1185K(4)  For the purposes of Step 4 in the Method statement in subsection (1), the maximum basic rate for age pension applicable to the person is:

                     (a)  if the person was a member of a couple at any time during the 3 years immediately before the operative day—an amount equal to twice the sum of:

                              (i)  the amount that was, on the operative day, the maximum basic rate for a partnered person under Module B of Pension Rate Calculator A in section 1064; and

                             (ii)  the amount that was, on the operative day, the person’s pension supplement worked out under point 1064-BA2; or

                     (b)  if paragraph (a) does not apply—an amount equal to the sum of:

                              (i)  the amount that was, on the operative day, the maximum basic rate for a person who is not a member of a couple under Module B of Pension Rate Calculator A in section 1064; and

                             (ii)  the amount that was, on the operative day, the person’s pension supplement worked out under point 1064-BA2.

Definitions

   1185K(5)  In this section:

applicable completion day, in relation to a transfer, means the earlier of:

                     (a)  the day on which the transfer was completed; and

                     (b)  30 June 2001.

income, in relation to a person, has the same meaning as in subsection 8(1), except that, in addition to any amount that is not income of the person because of subsection 8(4), (5), (7A) or (8), any payment to the person under:

                     (a)  the AUSTUDY scheme; or

                     (b)  the Veterans’ Entitlements Act; or

                     (c)  the Farm Household Support Act 1992;

is not income of the person for the purposes of this section.

operative day means:

                     (a)  if the transfer of the person’s qualifying interest in the farm or farms was completed before 15 September 1997—that day; or

                     (b)  otherwise—the applicable completion day in relation to the transfer of the person’s qualifying interest in the farm or farms.

ordinary income from farming, in relation to a person who has a qualifying interest in a farm or farms, means the ordinary income of the person from the farm or farms and any relevant farm assets.


 

Division 6Transitional: ex gratia payments

1185L  Ex gratia payments

    1185L(1)  If:

                     (a)  apart from this subsection, an amount would have become payable under this Act to a person in respect of a period; and

                     (b)  the amount would not have become payable if Divisions 1 to 5 of this Part had not been amended by the Social Security and Veterans’ Entitlements Legislation Amendment (Retirement Assistance for Farmers) Act 2001; and

                     (c)  the person has been paid an ex gratia payment from the Commonwealth in respect of that period;

the amount mentioned in paragraph (a) is not payable to the person.

    1185L(2)  If:

                     (a)  apart from this subsection, an amount would have become payable under this Act to a person in respect of a period; and

                     (b)  the amount exceeds the amount that would have been payable if Divisions 1 to 5 of this Part had not been amended by the Social Security and Veterans’ Entitlements Legislation Amendment (Retirement Assistance for Farmers) Act 2001; and

                     (c)  the person has been paid an ex gratia payment from the Commonwealth in respect of that period;

the amount mentioned in paragraph (a) is reduced by the amount of the excess.


 

Part 3.14BRetirement assistance for sugarcane farmers

Division 1General

1185M  Purpose of Part

                   This Part deals with the transfer of sugarcane farming interests to family members of a younger generation. The purpose of the Part is to provide that, if the conditions set out in the Part are met, the value of any such interests transferred by a qualifying sugarcane farmer, his or her partner, or an eligible former partner of a qualifying sugarcane farmer, will be disregarded in determining:

                     (a)  whether a social security payment is payable; or

                     (b)  at what rate a social security payment is payable.

1185N  RASF commencement and closing days

   1185N(1)  For the purposes of this Part:

                     (a)  the RASF commencement day is the day on which this Part commences; and

                     (b)  the RASF closing day is (subject to any determination under subsection (2)) the day that is 3 years after the RASF commencement day.

   1185N(2)  The Minister may, by written determination, specify a day that is later than the day mentioned in paragraph (1)(b) as the RASF closing day.

   1185N(3)  A determination under subsection (2) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

1185P  Applicable cut-off date

                   In this Part:

applicable cut-off date means:

                     (a)  in relation to a transfer, where:

                              (i)  the transfer was not completed before the RASF closing day; and

                             (ii)  a pre-assessment request in relation to the transfer was lodged with the Department or the Agency within the period of 28 days immediately after the RASF closing day; and

                            (iii)  the Department or Agency responded affirmatively to the request;

                            the first day after the end of the period of 13 weeks beginning on the day on which the Department or Agency responded to the request; and

                     (b)  in relation to any other transfer—the RASF closing day.

1185Q  Pre-assessment request

Pre-assessment request

   1185Q(1)  For the purposes of this Part, a pre-assessment request is a written request by a person:

                     (a)  for advice about whether this Part would apply to the person, or to the person’s partner, in the event that a proposed transfer were to take place; and

                     (b)  that sets out sufficient information to enable the advice to be given.

   1185Q(2)  For the purposes of subsection (1), a written request does not include a request made by e-mail.

Contact by telephone etc.—timing of request

   1185Q(3)  For the purposes of this Part, if:

                     (a)  a person contacted the Department or the Agency:

                              (i)  by telephone; or

                             (ii)  by fax; or

                            (iii)  by e-mail; or

                            (iv)  in person;

                            for advice about whether this Part would apply to the person, or to the person’s partner, in the event that a proposed transfer were to take place; and

                     (b)  the person followed up that contact by lodging a pre-assessment request with the Department or Agency within 21 days after the day on which the person contacted the Department or Agency;

the person is taken to have lodged the pre-assessment request on the day on which the person contacted the Department or Agency.

Affirmative response to pre-assessment request

   1185Q(4)  For the purposes of this Part, if a person lodges a pre-assessment request, the Department or the Agency is taken to have responded affirmatively to that request if, and only if, the Secretary, or an officer of the Agency, gives the person a written notice:

                     (a)  that contains advice to the effect that this Part would apply to the person, or to the person’s partner, in the event that the proposed transfer were to take place; and

                     (b)  that specifies the date on which the notice was issued.

Timing of response

   1185Q(5)  The Department or the Agency is taken to have responded to a pre-assessment request on the date specified in the notice as the date on which the notice was issued.

1185R  Part to apply to certain transfers of estates in sugarcane farms etc.

   1185R(1)  Subject to subsections (3) and (4), this Part applies to a person if:

                     (a)  at any time after the RASF commencement day but before the applicable cut-off date, the person, being then a qualifying sugarcane farmer, transferred by way of gift to one, or more than one, eligible descendant (either solely to the eligible descendant or jointly to him or her and his or her partner):

                              (i)  his or her eligible interest in the sugarcane farm or sugarcane farms in which he or she had such an interest; and

                             (ii)  all the eligible interests that he or she had in relevant sugarcane farm assets; and

                     (b)  the person, or (if the person is a member of a couple) the person or his or her partner:

                              (i)  has reached pension age; or

                             (ii)  will reach pension age before the RASF closing day; and

                     (c)  the total net value (calculated in accordance with section 1185S) of the sugarcane farm or sugarcane farms, and the relevant sugarcane farm assets, in which the person had eligible interests does not exceed $500,000; and

                     (d)  during the last 3 years before the transfer was completed, the eligible descendant or each of the eligible descendants:

                              (i)  had been actively involved with the sugarcane farm or any of the sugarcane farms; or

                             (ii)  would, in the opinion of the Secretary, have been so involved but for exceptional circumstances beyond his or her control; and

                     (e)  if the person is a member of a couple—the person’s partner does not have an eligible interest in any sugarcane farm or relevant sugarcane farm asset; and

                      (f)  the person satisfies the sugarcane farmers’ income test for the purposes of this Part.

Note 1:       For eligible descendant see subsection 17A(1).

Note 2:       For eligible interest, qualifying sugarcane farmer, relevant sugarcane farm asset, sugarcane farm and transfer, see subsection 17B(1).

Note 3:       For pension age see subsection 23(1).

Note 4:       For actively involved with a sugarcane farm see subsection (5).

Note 5:       For the total net value of a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets see section 1185S.

Note 6:       For the sugarcane farmers’ income test see section 1185Y.

   1185R(2)  Subject to subsections (3) and (4), this Part also applies to a person if:

                     (a)  at any time after the RASF commencement day but before the applicable cut-off date, the person, being then an eligible former partner of a qualifying sugarcane farmer, transferred by way of gift to one, or more than one, eligible descendant of the farmer (either solely to the eligible descendant or jointly to him or her and his or her partner):

                              (i)  his or her eligible interest in the sugarcane farm or sugarcane farms in which he or she had such an interest; and

                             (ii)  all the eligible interests that he or she had in relevant sugarcane farm assets; and

                     (b)  the person has reached pension age or will reach pension age before the RASF closing day; and

                     (c)  the total net value (calculated in accordance with section 1185S) of the sugarcane farm or sugarcane farms, and the relevant sugarcane farm assets, in which the person had eligible interests does not exceed $500,000; and

                     (d)  during the last 3 years before the transfer was completed, the eligible descendant or each of the eligible descendants:

                              (i)  had been actively involved with the sugarcane farm or any of the sugarcane farms; or

                             (ii)  would, in the opinion of the Secretary, have been so involved but for exceptional circumstances beyond his or her control; and

                     (e)  the person satisfies the sugarcane farmers’ income test for the purposes of this Part.

Note 1:       For eligible descendant see subsection 17A(1).

Note 2:       For eligible former partner of a qualifying sugarcane farmer, eligible interest, relevant sugarcane farm asset, sugarcane farm and transfer see subsection 17B(1).

Note 3:       For pension age see subsection 23(1).

Note 4:       For actively involved with a sugarcane farm see subsection (5).

Note 5:       For the total net value of a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets see section 1185S.

Note 6:       For the sugarcane farmers’ income test see section 1185Y.

   1185R(3)  This Part does not apply to the person if:

                     (a)  immediately before the transfer, the eligible descendant, or one of the eligible descendants, referred to in paragraph (1)(a) or (2)(a) (as the case may be) had an eligible interest in:

                              (i)  the sugarcane farm or one of the sugarcane farms referred to in subparagraph (1)(a)(i) or (2)(a)(i); or

                             (ii)  any relevant sugarcane farm asset; and

                     (b)  the eligible descendant had acquired the eligible interest in the farm, or in the relevant farm asset, after 29 April 2004; and

                     (c)  the consideration, or part of the consideration, for the interest so acquired was the wages forgone by the eligible descendant while he or she was working as an employee on the farm or any of the farms.

Note 1:       For eligible descendant see subsection 17A(1).

Note 2:       For eligible interest, relevant sugarcane farm asset, sugarcane farm and transfer see subsection 17B(1).

   1185R(4)  This Part does not apply to the person (the transferor) if:

                     (a)  the eligible interest, or any part of the eligible interest, that was transferred is an interest that the transferor had in a sugarcane farm, or sugarcane farms, or any relevant sugarcane farm asset because the value of the transferor’s assets included an amount calculated by reference to the value of the farm, or farms, or relevant farm asset (see paragraphs 17B(5)(e) and (6)(c)); and

                     (b)  immediately after the transfer to the eligible descendant, or eligible descendants, referred to in paragraph (1)(a) or (2)(a) (as the case may be), the eligible interest, or any part of the eligible interest, transferred was held by a trust that was a concessional primary production trust in relation to the transferor.

Note 1:       For eligible descendant see subsection 17A(1).

Note 2:       For eligible interest, relevant sugarcane farm asset and sugarcane farm see subsection 17B(1).

Note 3:       For the transfer of eligible interests that are such interests because of paragraphs 17B(5)(e) and (6)(c) see subsection 17B(12).

Note 4:       For concessional primary production trust see section 1208U.

   1185R(5)  For the purposes of paragraphs (1)(d) and (2)(d), a person is taken to have been actively involved with a sugarcane farm during a particular period if, during that period, the person:

                     (a)  has contributed a significant part of his or her labour to the development of the sugarcane farm; or

                     (b)  has undertaken educational studies or training in a field that, in the opinion of the Secretary, is relevant to the development or management of the sugarcane farm enterprise.

1185S  How to assess the total net value of sugarcane farms etc. subject to a transfer

Meaning of total net value

    1185S(1)  For the purposes of subsections 1185R(1) and (2), the total net value of a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets, the eligible interests in which have been transferred, is to be calculated as follows:

where:

market value of sugarcane farm assets means the total of the market values of the sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets immediately before the transfer of the eligible interests.

sugarcane farm debts means the total of any amounts of money that:

                     (a)  had been borrowed for the purposes of undertaking one or more sugarcane farm enterprises on the sugarcane farm or sugarcane farms; and

                     (b)  had not been repaid before the transfer of the eligible interests.

Note:          The total net value of a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets is not affected by the number of persons who have interests in them.

    1185S(2)  Subsection (1) has effect subject to subsections (3), (4) and (5).

Value of farm reduced by value of transferee’s interest

    1185S(3)  If:

                     (a)  a person transfers eligible interests that the person has in a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets; and

                     (b)  immediately before the transfer by the person of his or her eligible interests in the farm, or farms, and relevant farm assets, the transferee had an eligible interest in the farm, or one of those farms, or a relevant farm asset;

then, the total net value of the farm, or farms, and relevant farm assets is the amount worked out under subsection (1) reduced by the value of the transferee’s eligible interest in the farm or relevant farm asset at that time.

Value of farm affected by previous transaction

    1185S(4)  If:

                     (a)  a person transfers his or her eligible interests in a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets; and

                     (b)  at any time after 29 April 2004 the person making the transfer entered into a transaction or transactions; and

                     (c)  the result of the transaction or transactions was that the total net value (worked out in accordance with subsection (1)) of the farm, or farms, and relevant farm assets immediately before the transfer is less than the total net value that that farm, or those farms, and relevant farm assets would have had immediately before the transfer if the person had not entered into the transaction or transactions (the unreduced value);

then, the total net value of the farm, or farms, and relevant farm assets is taken to be an amount equal to the unreduced value.

Life interest retained in principal home on farm

    1185S(5)  If:

                     (a)  a person transfers eligible interests that the person has in a farm by way of gift; and

                     (b)  the person retains a freehold estate, a leasehold interest or a life interest in the dwelling-house on the farm, and the adjacent private land, that constitute the person’s principal home;

then:

                     (c)  for the purposes of subsections 1185R(1) and (2), the person is taken to have transferred the whole of his or her eligible interest in the farm by way of gift; and

                     (d)  in assessing the market value of the farm for the purposes of subsection (1), the value of the dwelling-house and the adjacent private land is not to be included.

Note:          For eligible interest, relevant sugarcane farm asset, sugarcane farm and transfer see subsection 17B(1).


 

Division 2Modification of provisions relating to assets test

1185T  Transfer of estate in sugarcane farm etc. not disposal of an asset

    1185T(1)  If this Part applies to a person because of subsection 1185R(1), then, subject to subsections (4) and (6):

                     (a)  the transfer by the person of his or her eligible interest in a sugarcane farm or in a relevant sugarcane farm asset is taken not to be a disposal of an asset (within the meaning of section 1123); and

                     (b)  if the person’s partner has also transferred by way of gift to an eligible descendant of the person any eligible interest in a sugarcane farm or in a relevant sugarcane farm asset, that transfer is taken not to be a disposal of an asset (within the meaning of section 1123).

    1185T(2)  If this Part applies to a person because of subsection 1185R(2), then, subject to subsections (5) and (6), the transfer by the person of his or her eligible interest in a sugarcane farm or in a relevant sugarcane farm asset is taken not to be a disposal of an asset (within the meaning of section 1123).

    1185T(3)  To avoid doubt, subsections (1) and (2) have effect despite sections 1208L and 1208M.

    1185T(4)  If:

                     (a)  the applicable cut-off date in relation to the transfer referred to in paragraph (1)(a) was the RASF closing day; and

                     (b)  when the transfer was completed neither the person making the transfer nor his or her partner had reached pension age;

subsection (1) only applies after one of them reaches that age.

    1185T(5)  If:

                     (a)  the applicable cut-off date in relation to the transfer referred to in subsection (2) was the RASF closing day; and

                     (b)  when the transfer was completed the person making the transfer had not reached pension age;

subsection (2) only applies after the person reaches that age.

Note 1:       For eligible descendant see subsection 17A(1).

Note 2:       For eligible interest, RASF closing day, relevant sugarcane farm asset, sugarcane farm and transfer see subsection 17B(1).

Note 3:       For pension age see subsection 23(1).

    1185T(6)  Disregard subsections (1) and (2) when working out a rate for the purposes of Division 6 of Part 2.2A.

Note:          Part 2.2A provides for the payment of a pension bonus to a person who qualifies for an age pension if the person has deferred claiming that pension for a period of at least one year and the person, or the person’s partner, has worked gainfully during that period.


 

Division 3Requests for increase in rate of social security payment

1185U  Application

                   This Division applies if:

                     (a)  a person, or a person’s partner, has reached pension age; and

                     (b)  this Part applies because of a transfer of eligible interests by the person or the person’s partner; and

                     (c)  the person is receiving a social security payment under this Act; and

                     (d)  the value of the eligible interests has been included in the value of the person’s assets, or the partner’s assets, when calculating the rate of the person’s social security payment.

1185V  Request for increase

                   If:

                     (a)  the rate at which a social security payment is being, or has been, paid to a person is less than the rate (the increased rate) at which it would be, or would have been, paid if the value of the eligible interests transferred by the person or the person’s partner had not been included in the value of the person’s assets, or of the partner’s assets, in calculating the rate of the person’s social security payment; and

                     (b)  the person wants the social security payment to be paid at the increased rate;

the person must make a request to that effect.

1185W  Form of request

                   A request under section 1185V must be made in writing and must be in accordance with a form approved by the Secretary.

1185X  Determination of request

   1185X(1)  If:

                     (a)  a person makes a request under section 1185V in respect of a social security payment; and

                     (b)  the Secretary is satisfied that the rate at which the social security payment is being, or has been, paid to the person is less than the rate at which it would be, or would have been, paid if the value of the eligible interests transferred by the person or the person’s partner had not been included in the value of the person’s assets, or the partner’s assets, when calculating the rate of the person’s social security payment;

the Secretary must determine that the request is to be granted.

   1185X(2)  The determination takes effect:

                     (a)  if the person makes the request during the period of 13 weeks that starts on the day on which the transfer was completed—on the day on which the transfer was completed; or

                     (b)  in any other case—on the day on which the request is made.


 

Division 4Sugarcane farmers’ income test

1185Y  Does a person satisfy the sugarcane farmers’ income test?

How to work out whether the sugarcane farmers’ income test is satisfied

   1185Y(1)  This is how to work out whether a person who has transferred his or her eligible interest in a sugarcane farm or sugarcane farms satisfies the sugarcane farmers’ income test for the purposes of this Part:

Method statement

Step 1.   Work out under subsection (2) the amount of the person’s ordinary income (other than ordinary income from farming) for each of the last 3 financial years before the applicable completion day (the income test years).

              If the person was a member of a couple on the applicable completion day, work out also under subsection (2) the amount of his or her partner’s ordinary income (other than ordinary income from farming) for the 3 income test years.

              Add up all the amounts so obtained. The result is called the person’s total non-farm income.

Step 2.   Work out under subsection (3) the amount of the person’s ordinary income from farming for each of the 3 income test years.

              If the person was a member of a couple on the applicable completion day, work out also under subsection (3) the amount of his or her partner’s ordinary income from farming for the 3 income test years.

              Add up all the amounts of positive income for both the person and the person’s partner and deduct from that total the amounts of negative income (if any) for both the person and the person’s partner. The result is called the person’s total farm income (which may be either positive or negative).

Step 3.   Work out the person’s total income for the 3 income test years:

               (a)     if the person’s total farm income is a positive amount—by adding that amount to the amount of the person’s total non-farm income; or

               (b)     if the person’s total farm income is a negative amount—by deducting that amount from the amount of the person’s total non-farm income.

Step 4.   Work out under subsection (4) the maximum basic rate for age pension applicable to the person. Multiply that rate by 3. The result is called the person’s maximum basic entitlement.

Step 5.   If the person’s total income for the 3 income test years is less than the person’s maximum basic entitlement, the person satisfies the sugarcane farmers’ income test for the purposes of this Part.

              If the person’s total income for the 3 income test years equals or exceeds the person’s maximum basic entitlement, the person does not satisfy the sugarcane farmers’ income test for the purposes of this Part.

Person’s ordinary income from all sources other than farming

   1185Y(2)  For the purpose of working out a person’s ordinary income from all sources other than farming during a financial year, the following provisions have effect:

                     (a)  the provisions of Part 3.10 other than Division 1B apply to the person and so apply as if any reference in Division 1A to a tax year were a reference to that financial year;

                     (b)  any return on a financial asset that the person has actually received during the financial year is taken to be ordinary income of the person.

Person’s ordinary income from farming

   1185Y(3)  For the purpose of working out a person’s ordinary income from farming during a financial year, the following provisions have effect:

                     (a)  the provisions of Part 3.10 other than Division 1B apply to the person and so apply as if:

                              (i)  any reference in subsection 1074(1) to a tax year were a reference to that financial year; and

                             (ii)  subsection 1074(2) and section 1075 were omitted;

                     (b)  any return on a financial asset that the person has actually received during the financial year and that relates to a farm or a relevant farm asset is taken to be ordinary income of the person from farming;

                     (c)  if, at the end of the financial year, the value of all trading stock on hand that relates to a farm is less than the value of all such trading stock on hand at the beginning of that financial year—the amount of the difference is to be deducted from that part of the person’s ordinary income from farming for that financial year that is income in the form of profits;

                     (d)  there is also to be deducted from the person’s ordinary income from farming:

                              (i)  losses and outgoings that relate to a business of primary production and are allowable deductions under section 8-1 of the Income Tax Assessment Act 1997; and

                             (ii)  deductions for the cost of depreciating assets that are used in a business of primary production and are allowable deductions under Subdivisions 40-A to 40-E (inclusive), or Division 328, of the Income Tax Assessment Act 1997; and

                            (iii)  contributions that are allowable deductions under sections 82AAC, 82AAD, 82AADA and 82AAF of the Income Tax Assessment Act 1936;

                     (e)  if a negative result is obtained after applying paragraphs (c) and (d)—the person’s ordinary income from farming for the financial year is a negative income;

                      (f)  if paragraph (e) does not apply—the person’s ordinary income from farming for the financial year is a positive income.

Person’s maximum basic rate for age pension

   1185Y(4)  For the purposes of Step 4 in the Method statement in subsection (1), the maximum basic rate for age pension applicable to the person is:

                     (a)  if the person was a member of a couple at any time during the 3 years immediately before the applicable completion day—an amount equal to twice the sum of:

                              (i)  the amount that was, on the applicable completion day, the maximum basic rate for a partnered person under Module B of Pension Rate Calculator A in section 1064; and

                             (ii)  the amount that was, on the applicable completion day, the person’s pension supplement worked out under point 1064-BA2; or

                     (b)  if paragraph (a) does not apply—an amount equal to the sum of:

                              (i)  the amount that was, on the applicable completion day, the maximum basic rate for a person who is not a member of a couple under Module B of Pension Rate Calculator A in section 1064; and

                             (ii)  the amount that was, on the applicable completion day, the person’s pension supplement worked out under point 1064-BA2.

Definitions

   1185Y(5)  In this section:

applicable completion day, in relation to a transfer, means the earlier of:

                     (a)  the day on which the transfer was completed; and

                     (b)  the RASF closing day.

income, in relation to a person, has the same meaning as in subsection 8(1), except that, in addition to any amount that is not income of the person because of subsection 8(4), (5), (7A) or (8), any payment to the person under:

                     (a)  the Veterans’ Entitlements Act; or

                     (b)  the Farm Household Support Act 1992;

is not income of the person for the purposes of this section.

ordinary income from farming, in relation to a person who has an eligible interest in a sugarcane farm or sugarcane farms, means the ordinary income of the person from:

                     (a)  the sugarcane farm, or sugarcane farms, and any relevant sugarcane farm assets; and

                     (b)  any other farm, or farms, or relevant farm assets in which the person has an interest.


 

Part 3.15New Enterprise Incentive Scheme

 

1186  General effect of Part

                   This Part adjusts the social security pension or benefit rate of a person who is receiving or whose partner is receiving, payments under the scheme known as the New Enterprise Incentive Scheme (NEIS).

1187  Reduction in rate of payments under this Act if recipient or partner also receiving payments under New Enterprise Incentive Scheme (NEIS)

      1187(1)  If:

                     (a)  an instalment of:

                            (ia)  age pension; or

                              (i)  disability support pension; or

                             (ii)  wife pension; or

                            (iii)  carer payment; or

                            (iv)  parenting payment; or

                             (v)  bereavement allowance; or

                           (va)  widow B pension; or

                            (vi)  special needs pension; or

                           (vii)  mature age allowance under Part 2.12A; or

                           (viii)  mature age partner allowance;

                            is payable to a person during a pension period; and

                     (b)  NEIS is payable to the person during that pension period;

the rate of the payment referred to in paragraph (a) is to be reduced under this Part.

   1187(1A)  If:

                     (a)  a payment of:

                            (ia)  widow allowance; or

                             (ii)  newstart allowance; or

                            (iii)  sickness allowance; or

                            (iv)  special benefit; or

                          (iva)  partner allowance; or

                           (va)  mature age allowance under Part 2.12B; or

                            (vi)  rehabilitation allowance;

                            is payable to a person during a pension period; and

                     (b)  NEIS is payable to the person, or in respect of the person, during that pension period;

the rate of the payment referred to in paragraph (a) is to be reduced under this Part.

      1187(2)  If:

                     (a)  an instalment of:

                            (ia)  age pension; or

                              (i)  disability support pension; or

                             (ii)  rehabilitation allowance; or

                            (iii)  mature age allowance under Part 2.12A;

                            is payable to a person during a pension period; and

                     (b)  NEIS or AEIS is payable to the person during that pension period; and

                     (c)  an instalment of:

                              (i)  wife pension in respect of the person; or

                             (ii)  carer payment in respect of the person; or

                            (iii)  mature age partner allowance in respect of the person;

                            is payable to the person’s partner during a pension period;

the rate of the partner’s payment is to be reduced under this Part.

      1187(3)  If:

                     (a)  NEIS is payable to a person during a pension period; and

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

                     (c)  a payment of rehabilitation allowance is payable to the person’s partner during that pension period; and

                     (d)  the amount of the partner’s payment includes an additional payment for partner for the person;

the rate of the partner’s payment referred to in paragraph (c) is to be reduced under this Part.

1188  Rate reduction under this Part

      1188(1)  Subject to subsection (2), if a person’s rate of payment under this Act is to be reduced under this Part because of a NEIS payment, the amount of rate reduction is to be equal to the amount of the NEIS payment.

      1188(2)  If:

                     (a)  a person’s rate of payment under this Act is to be reduced under this Part because of a NEIS payment; and

                     (b)  the person’s partner’s rate of payment under this Act is also to be reduced under this Part (see subsection 1187(2)) because of the NEIS payment;

the amount of rate reduction for both the person and the person’s partner is to be equal to 50% of the amount of the NEIS payment.

      1188(3)  A person’s rate of payment under this Act is not to be reduced below nil under subsection (1) or (2).


 

Part 3.15ACommunity Development Employment Projects Scheme

Division 1Preliminary

1188A  General effect of Part

   1188A(1)  This Part has the effect, in certain circumstances, of reducing a person’s social security entitlement in respect of a period in respect of which the person is a CDEP Scheme participant.

   1188A(2)  This Part also provides, in certain circumstances, a supplement for a person for a period in respect of which the person is a CDEP Scheme participant.

1188B  CDEP Scheme participants

   1188B(1)  A person is, or is taken to have been, a CDEP Scheme participant in respect of a particular day (the relevant day) on or after 20 March 1999 if:

                     (a)  the person’s name appeared on the latest CDEP Scheme Participant Schedule, approved on or before the relevant day, and there is no certificate in force, given, after the approval of that Schedule, by an authorised officer stating that the person ceased on or before the relevant day to be a person participating in the CDEP Scheme; or

                     (b)  the person’s name did not appear on that Schedule but a certificate is in force, given, after the approval of that Schedule, by an authorised officer stating that the person began to participate in the CDEP Scheme on or before the relevant day and there is no certificate in force, given, after the issue of the first-mentioned certificate, by an authorised officer stating that the person ceased on or before the relevant day to participate in the CDEP Scheme.

   1188B(2)  Subsection (1) does not apply in relation to a person in respect of a particular day if the Secretary believes, on reasonable grounds, that, on that day:

                     (a)  the person was no longer participating in the program constituted by the CDEP Scheme; or

                     (b)  the person was sick or incapacitated and was not receiving sickness benefits under the CDEP Scheme.

   1188B(3)  In this section:

authorised officer, in relation to a certificate, means a person authorised by the Secretary of the Department whose Minister is responsible for administration of the CDEP Scheme to give such a certificate.

CDEP Scheme Participant Schedule means a schedule of the names of people participating in the CDEP Scheme that has been approved by the Secretary of the Department whose Minister is responsible for administration of the CDEP Scheme for the purposes of that Scheme.

relevant day has the meaning given by subsection (1).


 

Division 2Reduction in rate of pension or allowance

1188C  Reductions in rate of payments under this Act if recipient or partner also receiving payments under CDEP Scheme

   1188C(1)  If:

                     (a)  an instalment of any of the following:

                              (i)  age pension;

                             (ii)  disability support pension;

                            (iii)  wife pension;

                            (iv)  carer payment;

                             (v)  parenting payment at the rate applicable for a person who is not a member of a couple;

                            (vi)  bereavement allowance;

                           (vii)  widow B pension;

                            (ix)  special needs pension;

                             (x)  mature age allowance under Part 2.12A;

                            (xi)  mature age partner allowance;

                            is payable to a person in respect of a payment period or in respect of a pension payday; and

                     (b)  a CDEP Scheme payment is payable to the person or the person’s partner in respect of the whole or a part of that payment period or in respect of that pension payday, as the case may be;

the following provisions have effect:

                     (c)  if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person exceeds the person’s threshold:

                              (i)  the amount of the instalment is reduced by the part of the CDEP Scheme payment that does not exceed the person’s threshold; and

                             (ii)  the ordinary income of the person includes the part of the CDEP Scheme payment that exceeds the person’s threshold;

                     (d)  if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person does not exceed the person’s threshold:

                              (i)  the amount of the instalment is reduced by the amount of the CDEP Scheme payment; and

                             (ii)  the CDEP Scheme payment is not ordinary income of the person;

                     (e)  if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person’s partner exceeds the partner’s threshold:

                              (i)  the part of the CDEP Scheme payment that does not exceed the partner’s threshold is not ordinary income of the person or of the person’s partner; and

                             (ii)  the ordinary income of the person’s partner includes the part of the CDEP Scheme payment that exceeds the partner’s threshold;

                      (f)  if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person’s partner does not exceed the partner’s threshold, the CDEP Scheme payment is not ordinary income of the person or of the person’s partner.

   1188C(2)  If a person who had been receiving instalments of a pension payment, allowance or benefit referred to in paragraph (1)(a) dies, then, in calculating any bereavement payment in respect of the person, any deductions made from the amounts of the instalments under subparagraph (1)(c)(i), (d)(i) or (e)(i) are to be disregarded.

   1188C(3)  If:

                     (a)  a payment of any of the following:

                              (i)  widow allowance;

                             (ii)  newstart allowance;

                            (iii)  youth allowance;

                            (iv)  parenting payment at the rate applicable for a person who is a member of a couple;

                             (v)  partner allowance;

                            (vi)  mature age allowance under Part 2.12B;

                           (vii)  special benefit;

                            is payable to a person in respect of a payment period; and

                     (b)  a CDEP Scheme payment is payable to the person in respect of the whole or a part of that period;

the following provisions have effect:

                     (c)  if the CDEP Scheme payment referred to in paragraph (b) exceeds the person’s threshold, the ordinary income of the person includes the part of the CDEP Scheme payment that exceeds the person’s threshold;

                     (d)  if the CDEP Scheme payment referred to in paragraph (b) does not exceed the person’s threshold, the CDEP Scheme payment is not ordinary income of the person;

                     (e)  if a payment of a social security benefit referred to in paragraph (a) is payable to the person’s partner in respect of the payment period, the ordinary income of the partner includes an amount equal to the CDEP payment.

   1188C(4)  This section applies in respect of payment periods beginning on or after 20 March 2000.

   1188C(5)  In this section:

threshold:

                     (a)  in relation to a person, means the amount referred to in column 4 of Table A in this subsection that is applicable in relation to the person having regard to the type of pension, allowance, benefit or payment referred to in column 2 of that table that would be payable to the person if the person were not a CDEP Scheme participant and the situation (if any) referred to in column 3 of that table that is applicable to the person; or

                     (b)  in relation to the partner of a person, means:

                              (i)  if the partner is not receiving any pension, allowance, benefit or other payment under this Act—the amount specified in item 7 of column 3B of Table B in point 1068-B1; or

                             (ii)  if the partner is receiving a pension, allowance, benefit or other payment under this Act—the amount that would be applicable under the appropriate item in Table A in this subsection if that table applied to the partner, having regard to the type of pension, allowance, benefit or other payment referred to in column 2 of that table that is payable to the partner and the situation (if any) referred to in column 3 of that table that is applicable to the partner.

 

Table A—Threshold amounts

Column 1

Item

Column 2

Type of pension, allowance, benefit or payment

Column 3

Situation

Column 4

Person’s threshold

1

Age pension

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

2

Age pension

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

3

Disability support pension

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the amount specified in column 4B of the item of Table B in point 1066A-B1 (including any amount required to be added by point 1066A-C1) that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

4

Disability support pension

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the amount specified in column 4B of the item in Table B in point 1066A-B1 (including any amount required to be added by point 1066A-C1) that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

5

Wife pension

 

The amount specified in column 3B of item 7 of Table B in point 1068-B1

6

Carer payment

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

7

Carer payment

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

8

Bereavement allowance

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

9

Bereavement allowance

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

10

Widow B pension

 

The amount specified in column 3B of item 4A of Table B in point 1068-B1

11

Special needs pension

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

12

Special needs pension

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

13

Mature age allowance under Part 2.12A

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

14

Mature age allowance under Part 2.12A

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

15

Mature age partner allowance

 

The amount specified in column 3B of item 7 of Table B in point 1068-B1

16

Newstart allowance

Not member of a couple and is under the age of 60

The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

17

Newstart allowance

Not member of a couple, is over the age of 60, and has been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit, a service pension or income support supplement

The amount specified in column 3B of item 5 of Table B in point 1068-B1

18

Newstart allowance

Not member of a couple, is over the age of 60, and has not been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit, a service pension or income support supplement

The amount specified in column 3B of item 4B of Table B in point 1068-B1

19

Newstart allowance

Not member of a couple and has a dependent child

The amount specified in column 3A of item 4A of Table B in point 1068-B1

20

Newstart allowance

Member of illness separated couple, whether or not the person has a dependent child

The amount specified in column 3B of item 9 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

21

Newstart allowance

Member of a couple whether or not the person has a dependent child

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

22

Newstart allowance

Member of a couple but partner in gaol

The amount specified in column 3B of item 11 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

23

Widow allowance

Under the age of 60

The amount specified in column 3B of item 4A of Table B in point 1068-B1

24

Widow allowance

Over the age of 60 and has been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit, a service pension or income support supplement

The amount specified in column 3B of item 5 of Table B in point 1068-B1

25

Widow allowance

Over the age of 60 and has not been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit, a service pension or income support supplement

The amount specified in column 3B of item 4B of Table B in point 1068-B1

26

Special benefit

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

27

Special benefit

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

28

Partner allowance

 

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

29

Mature age allowance under Part 2.12B

Not member of a couple

The amount specified in column 3B of item 5A of Table B in point 1068-B1

30

Mature age allowance under Part 2.12B

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

31

Parenting payment

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

32

Parenting payment

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

33

Youth allowance

Not independent

The amount specified in column 3 of the item of Table BA in point 1067G-B2 that would apply to the person if the person were not a CDEP Scheme participant

34

Youth allowance

Independent

The amount specified in column 3 of the item of Table BB in point 1067G-B3 that would apply to the person if the person were not a CDEP Scheme participant

Note:          For CDEP Scheme payment see subsection 23(1).

   1188C(6)  In items 26 and 27 of Table A in subsection (5), a reference to the maximum basic rate that would apply to a person is a reference to the amount that would be the person’s maximum basic rate if the person were receiving the appropriate payment.

   1188C(7)  For the purpose of subsection (6), the appropriate payment is the social security payment, other than special benefit, that, in the opinion of the Secretary, is the social security payment that it is equitable to take into account for the purposes of subsection (6), having regard to the circumstances of the person concerned.


 

Division 3CDEP Scheme Participant Supplement

1188D  Entitlement to Supplement: people receiving pension-type payments on or after 20 March 1999

   1188D(1)  This section applies in respect of:

                     (a)  payment periods beginning on or after 20 March 1999; and

                     (b)  pension paydays occurring on or after that date.

   1188D(2)  This section applies to a person in respect of a payment period (the relevant payment period) or in respect of a pension payday (the relevant pension payday) if:

                     (a)  an instalment of any of the following:

                              (i)  age pension;

                             (ii)  disability support pension;

                            (iii)  wife pension;

                            (iv)  carer payment;

                             (v)  parenting payment at the rate applicable for a person who is not a member of a couple;

                            (vi)  bereavement allowance;

                           (vii)  widow B pension;

                           (viii)  special needs pension;

                            (ix)  mature age allowance under Part 2.12A;

                             (x)  mature age partner allowance;

                            is payable to a person in respect of the relevant payment period or the relevant pension payday; and

                     (b)  the person meets the requirements of subsection (3) or (4).

   1188D(3)  The requirements of this subsection are:

                     (a)  that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday; and

                     (b)  that a CDEP Scheme payment is payable to the person in respect of the relevant payment period or the relevant pension payday.

   1188D(4)  The requirements of this subsection are:

                     (a)  that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday; and

                     (b)  that a CDEP Scheme payment was payable to the person:

                              (i)  in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period; or

                             (ii)  in respect of the 3 pension paydays immediately before the relevant pension payday.

   1188D(5)  If this section applies to the person in respect of the relevant payment period or the relevant pension payday, then, subject to subsection (6), a CDEP Scheme Participant Supplement of $20.80 is payable to the person in respect of that period or payday.

Note:          For CDEP Scheme payment see subsection 23(1).

   1188D(6)  A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.

1188E  Entitlement to Supplement between 20 March 1999 and 19 March 2000: people not covered by section 1188D

    1188E(1)  This section applies in respect of:

                     (a)  payment periods beginning on or after 20 March 1999 and not later than 19 March 2000; or

                     (b)  pension paydays occurring on or after 20 March 1999 and not later than 19 March 2000.

    1188E(2)  This section applies to a person in respect of a payment period (the relevant payment period) or in respect of a pension payday (the relevant pension payday) if the person meets the requirements of subsections (3) and (4).

    1188E(3)  The requirements of this subsection are:

                     (a)  that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday; and

                     (b)  that a CDEP Scheme payment was payable to the person:

                              (i)  in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period; or

                             (ii)  in respect of the 3 pension paydays immediately before the relevant pension payday.

    1188E(4)  The requirement of this subsection is that the person satisfies the CDEP Scheme Participant Supplement income test in respect of the relevant payment period, or in respect of the payment period in which the relevant pension payday occurs, as mentioned in subsection (5) or (6), as the case requires.

    1188E(5)  This is how to work out whether a person who is not a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement

Step 1.   If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2.   Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3.   Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4.   Assume that the person’s maximum basic rate is the sum of:

               (a)     the amount specified in column 3B of item 4A of Table B in point 1068-B1; and

               (b)     the amount specified in column 4 of item 1 of Table F in point 1068-F15.

Step 5.   Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3 and 4.

Step 6.   The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 5 is greater than zero.

    1188E(6)  This is how to work out whether a person who is a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement

Step 1.   If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2.   Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3.   Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4.   Work out the total amount of any CDEP Scheme payments payable to the person’s partner in respect of the period.

Step 5.   Assume that the person’s partner’s ordinary income worked out on a fortnightly basis is increased by the total amount worked out under Step 4.

Step 6.   Assume that the person’s maximum basic rate is the sum of:

               (a)     the amount specified in column 3B of item 7 of Table B in point 1068-B1; and

               (b)     the amount specified in column 4 of item 2 of Table F in point 1068-F15.

Step 7.   Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3, 5 and 6.

Step 8.   The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 7 is greater than zero.

    1188E(7)  If this section applies to the person in respect of the relevant payment period or the relevant pension payday then, subject to subsections (8) and (9), a CDEP Scheme Participant Supplement of $20 is payable to the person in respect of that period or payday.

    1188E(8)  A CDEP Scheme Participant Supplement is not payable to a person under subsection (7) if:

                     (a)  the Secretary has made a request of the person in respect of the tax file number of the person or of his or her partner; and

                     (b)  the person has failed to satisfy the request; and

                     (c)  the Secretary has not exempted the person from having to satisfy the request.

Note 1:       CDEP Scheme participant see subsection 23(1).

Note 2:       For CDEP Scheme payment see subsection 23(1).

    1188E(9)  A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.

1188F  Entitlement to Supplement on or after 20 March 2000: people not covered by section 1188D

    1188F(1)  This section applies in respect of payment periods beginning on or after 20 March 2000.

    1188F(2)  Subject to subsection (3), this section applies to a person:

                     (a)  in respect of a payment period (the relevant payment period) if the person is qualified in respect of that period for any of the following:

                              (i)  widow allowance;

                             (ii)  newstart allowance;

                            (iii)  youth allowance;

                            (iv)  special benefit;

                             (v)  parenting payment at the rate applicable for a person who is a member of a couple;

                            (vi)  partner allowance;

                           (vii)  mature age allowance under Part 2.12B; or

                     (b)  in respect of a payment period (also the relevant payment period) if the person is qualified in respect of that period for any of the following:

                              (i)  age pension;

                             (ii)  disability support pension;

                            (iii)  wife pension;

                            (iv)  carer payment;

                             (v)  parenting payment at the rate applicable for a person who is not a member of a couple;

                            (vi)  bereavement allowance;

                           (vii)  widow B pension;

                           (viii)  special needs pension;

                            (ix)  mature age allowance under Part 2.12A;

                             (x)  mature age partner allowance;

                            but the pension, payment or allowance for which the person is qualified under this paragraph is not payable to the person in respect of that period.

    1188F(3)  This section does not apply to a person in respect of the relevant payment period unless the person meets the requirements of subsections (4), (5), (6) and (7) in respect of the relevant payment period.

    1188F(4)  The requirements of this subsection are:

                     (a)  that the person is a CDEP Scheme participant in respect of the relevant payment period; and

                     (b)  that a CDEP Scheme payment was payable to the person in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period.

    1188F(5)  The requirement of this subsection is that the person satisfies the CDEP Scheme Participant Supplement income test in respect of the relevant payment period as mentioned in subsection (8) or (9), as the case requires.

    1188F(6)  The requirement of this subsection is that the relevant payment period does not fall within:

                     (a)  a waiting period; or

                     (b)  a liquid assets test waiting period; or

                     (c)  a lump sum preclusion period; or

                     (d)  a compensation preclusion period (see Part 3.14).

    1188F(7)  The requirement of this subsection is that the relevant payment period occurs within a period in respect of which the relevant allowance, benefit or payment referred to in paragraph (2)(a) or the relevant pension, payment or allowance referred to in paragraph (2)(b) is not payable to the person because of the operation of a provision of this Act relating to:

                     (a)  seasonal or intermittent workers; or

                     (b)  the value of the assets of the person or of his or her partner.

    1188F(8)  This is how to work out whether a person who is not a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement

Step 1.   If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2.   Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3.   Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4.   Assume that the person’s maximum basic rate is the sum of:

               (a)     the amount specified in column 3B of item 4A of Table B in point 1068-B1; and

               (b)     the amount specified in column 4 of item 1 of the table in section 1070Q.

Step 5.   Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3 and 4.

Step 6.   The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 5 is greater than zero.

    1188F(9)  This is how to work out whether a person who is a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement

Step 1.   If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2.   Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3.   Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4.   Work out the total amount of any CDEP Scheme payments payable to the person’s partner in respect of the period.

Step 5.   Assume that the person’s partner’s ordinary income worked out on a fortnightly basis is increased by the total amount worked out under Step 4.

Step 6.   Assume that the person’s maximum basic rate is the sum of:

               (a)     the amount specified in column 3B of item 7 of Table B in point 1068-B1; and

               (b)     the amount specified in column 4 of item 2 of the table in section 1070Q.

Step 7.   Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3, 5 and 6.

Step 8.   The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 7 is greater than zero.

  1188F(10)  If this section applies to the person in respect of the relevant payment period, then, subject to subsections (11) and (12), a CDEP Scheme Participant Supplement of $20.80 is payable to the person in respect of that period.

  1188F(11)  A CDEP Scheme Participant Supplement is not payable to a person under subsection (10) if:

                     (a)  the Secretary has made a request of the person in respect of the tax file number of the person or of his or her partner; and

                     (b)  the person has failed to satisfy the request; and

                     (c)  the Secretary has not exempted the person from having to satisfy the request.

Note 1:       CDEP Scheme participant see subsection 23(1).

Note 2:       For CDEP Scheme payment see subsection 23(1).

  1188F(12)  A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.

1188G  Notification of periods in respect of which a CDEP Scheme payment is not payable

                   If:

                     (a)  section 1188F applies to a person; and

                     (b)  a CDEP Scheme payment is payable to the person in respect of a payment period beginning on or after 20 March 2000; and

                     (c)  a CDEP Scheme payment is not payable to the person in respect of the next following payment period;

the person must notify the Secretary, as soon as practicable after section 1188F ceases to apply to the person, that a CDEP Scheme payment is not payable to the person in respect of that following payment period.

1188H  Person receiving CDEP Scheme Participant Supplement to be taken to be in receipt of social security benefit or pension

                   A person who receives a CDEP Scheme Participant Supplement in respect of a payment period beginning on or after 20 March 2000 is taken, for the purposes of this Act, to be in receipt of the social security benefit or social security pension for which the person is qualified in respect of that period.

1188J  CDEP Scheme participant may accumulate supplement

    1188J(1)  A person who is a CDEP Scheme participant, and is not in receipt of a social security pension, in respect of the whole or a part of a quarter beginning on or after 20 March 2000 may, by written notice given to the Secretary, choose to accumulate the amounts of any supplement that:

                     (a)  became or become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant and is not in receipt of a social security pension; and

                     (b)  have not already been paid.

    1188J(2)  A person who is or was a CDEP Scheme participant in respect of the whole or a part of a quarter ending before 20 March 2000 is taken to have chosen under this subsection to accumulate the amounts of any supplement that became payable to the person in respect of that quarter.

    1188J(3)  If a person makes a choice under subsection (1), the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after:

                     (a)  unless paragraph (b) applies—the last day of the quarter or 19 March 2000, whichever is the later; or

                     (b)  if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases or 19 March 2000, whichever is the later.

    1188J(4)  Any accumulated amounts payable to a person to whom subsection (2) applies are to be paid at such times (not later than 19 March 2000) as the Secretary determines.

    1188J(5)  In this section:

quarter means a CDEP Scheme quarter.

Note 1:       For CDEP Scheme participant see section 1188B.

Note 2:       For CDEP Scheme quarter see subsection 23(1).

1188K  Need for a claim

   1188K(1)  A person who wants to be granted a CDEP Scheme Participant Supplement must make a proper claim for the supplement.

   1188K(2)  To be a proper claim, a claim must be made in such manner, and within such period, as the Secretary determines.


 

Division 4Transitional

1188L  Existing CDEP Scheme participants to be treated as long-term social security recipients

                   A person who, if this Part had been in force on 19 March 2000, would have been a CDEP Scheme participant in respect of that day for the purposes of this Part is taken, for the purposes of the definition of long-term social security recipient in subsection 23(1), to have had social security recipient status continuously for the period of 52 weeks ending on that day.

1188M  Certain people receiving CDEP Scheme Participant Supplement to be taken to have been receiving social security benefit for 9 months

                   A person who receives CDEP Scheme Participant Supplement:

                     (a)  in respect of both 19 March 2000 (the first qualifying day) and the following day (the second qualifying day); or

                     (b)  in respect of both the payment period in which the first qualifying day occurs and the payment period in which the second qualifying day occurs;

is taken, for the purposes of the definition of pensioner in subsection 4(1) of the National Health Act 1953, to have been receiving the social security benefit on the first qualifying day for a continuous period of 9 months.


 

Part 3.16Indexation and adjustment of amounts

Division 1Preliminary

1189  Analysis of Part

                   This Part 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 1191; and

                     (c)  the adjustment of other amounts in line with the increases in the amounts indexed; and

                     (d)  one-off adjustments of certain amounts.

1190  Indexed and adjusted amounts [see Notes 2 and 4]

                   The following table sets out:

                     (a)  each amount that is to be indexed or adjusted under this Part; and

                     (b)  the abbreviation used in this Part for referring to that amount; and

                     (c)  the provision or provisions in which that amount is to be found.

 

Indexed and adjusted amounts table

Column 1

Item

Column 2

Description of amount

Column 3

Abbreviation

Column 4

Provisions in which amount specified

 

Maximum basic rates

 

 

1.

Maximum basic rates for a social security pension (except disability support pension payable to a person who is under 21)

pension MBR

[Pension Rate Calculator A—point 1064-B1—Table B—column 3—all amounts]
[Pension Rate Calculator B—point 1065-B1—Table B—column 3—all amounts]
[Pension Rate Calculator C—point 1066-B1—the annual rate]
[Pension PP (Single) Rate Calculator—point 1068A-B1]

1AA.

Pension supplement

pension supplement

[Pension Rate Calculator A—point 1064-BA2—all amounts]

[Pension Rate Calculator B—point 1065-BA2—all amounts]

[Pension Rate Calculator C—point 1066-BA2]

[Parenting Payment Rate Calculator—point 1068A-BA2]

1A.

Maximum basic rates for disability support pension payable to person who is under 21 and has one or more dependent children

DSP (under 21 and child) MBR

[Pension Rate Calculator D—point 1066A-B1—Table B—column 3A—all amounts]
[Pension Rate Calculator E—point 1066B-B1—Table B—column 3A—all amounts]

1B.

Maximum basic rates for disability support pension payable to person who is under 21 and has no dependent children

DSP (under 21 and no child) MBR

[Pension Rate Calculator D—point 1066A-B1—Table B—column 3B—all amounts]
[Pension Rate Calculator E—point 1066B-B1—Table B—column 3B—all amounts]

2.

Maximum basic rates for a social security benefit payable to a person who is over 21, is a member of a couple or has a dependent child

benefit MBR (ordinary)

[Benefit Rate Calculator B—point 1068-B1—Table B—column 3A—all amounts]
[Benefit Rate Calculator B—point 1068-B1—Table B—column 3B—items 3, 4, 4A, 4B, 5, 5A, 7 and 9]
[Benefit PP (Partnered) Rate Calculator—point 1068B-C2—Table C—column 3—all amounts]

3.

Maximum basic rates for a social security benefit payable to a person who is under 21 and does not have a dependent child

benefit MBR (junior or intermediate)

[Benefit Rate Calculator B—point 1068-B1—Table B—column 3B—items 1, 2, 6 and 8]

3A.

Maximum basic rate for youth allowance

YA MBR

[Youth Allowance Rate Calculator—point 1067G-B2—Table BA—column 3—all amounts]

 

 

 

[Youth Allowance Rate Calculator—point 1067G-B3—Table BB—column 3—all amounts]

 

 

 

[Youth Allowance Rate Calculator—point 1067G-B4—Table BC—column 3—all amounts]

3B.

Maximum basic rate for austudy payment

AP MBR

[Austudy Payment Rate Calculator—point 1067L-B2—Table BA—column 3—all amounts]

 

 

 

[Austudy Payment Rate Calculator—point 1067L-B3]

4

Additional child amounts (for dependent children for calculating a person’s international agreement portability rate)

additional child amounts

Section 14A of the Social Security (International Agreements) Act 1999

 

Youth disability supplement

 

 

4A.

Youth disability supplement payable to a disability support pensioner who is under 21

youth disability supplement

[Pension Rate Calculator D—point 1066A-C1—the annual rate]
[Pension Rate Calculator E—point 1066B-C1—the annual rate]

 

Child amounts

 

 

15.

Rate of carer allowance

CA rate

[subsection 974(2)]

16.

Rate of double orphan pension calculated under subsection 1010(1)

DOP rate

[section 1010]

17

Rent assistance

Maximum rent assistance for social security payments

MRA

[Part 3.7—sections 1070L and 1070N to 1070R—Table—column 4—all amounts]

[Part 3.7—section 1070M—Table—column 3—amount]

18

Rent threshold amount

RTA

[Part 3.7—sections 1070L and 1070N to 1070R—Table—formulas in column 3—all amounts deducted from fortnightly rent]

[Part 3.7—section 1070M—Table—formula in column 2—amount deducted from fortnightly rent]

[Part 3.7—subsection 1070T(1)—amount]

 

Income f