BUDGET SAVINGS (OMNIBUS) BILL 2016

2016

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Budget Savings (Omnibus) Bill 2016

No. , 2016

(Treasury)

A Bill for an Act relating to budget savings, and for

other purposes

No. , 2016

Budget Savings (Omnibus) Bill 2016

Contents

Short title ........................................................................................... 1

Commencement ................................................................................. 1

Schedules ........................................................................................... 4

Schedule 1--Minimum repayment income for HELP debts

Higher Education Support Act 2003

Schedule 2--Indexation of higher education support amounts

Higher Education Support Act 2003

Schedule 3--Removal of HECS-HELP benefit

Higher Education Support Act 2003

Income Tax Assessment Act 1997

Schedule 4--Job commitment bonus

Part 1--Main amendments

Social Security Act 1991

Social Security (Administration) Act 1999

Part 2--Consequential amendments

Farm Household Support Act 2014

Income Tax Assessment Act 1997

Part 3--Saving and transitional provisions

Schedule 5--Australian Renewable Energy Agency's finances

Australian Renewable Energy Agency Act 2011

Schedule 6--Indexation of private health insurance thresholds

Private Health Insurance Act 2007

Schedule 7--Abolishing the National Health Performance

Authority

Part 1--Amendments

National Health Reform Act 2011

Part 2--Application and transitional provisions

Division 1--Interpretation

Budget Savings (Omnibus) Bill 2016

No. , 2016

Division 2--Transfer of assets and liabilities

Division 3--Transfer of other matters

Division 4--Annual reporting obligation

Division 5--Disclosure and use of information

Division 6--Miscellaneous

Schedule 8--Aged care

Part 1--Compliance

Aged Care Act 1997

Part 2--Adviser and administrator panels

Aged Care Act 1997

Part 3--Approved provider obligations

Aged Care Act 1997

Schedule 9--Dental services

Age Discrimination Act 2004

Dental Benefits Act 2008

Human Services (Medicare) Act 1973

Schedule 10--Newly arrived resident's waiting period

Part 1--Social security amendments

Social Security Act 1991

Social Security Legislation Amendment (Newly Arrived Resident's

Waiting Periods and Other Measures) Act 1997

Part 2--Farm household support amendments

Farm Household Support Act 2014

Schedule 11--Student start-up scholarships

Social Security Act 1991

Social Security (Administration) Act 1999

Student Assistance Act 1973

Schedule 12--Interest charge

Part 1--Amendments

A New Tax System (Family Assistance) (Administration) Act 1999

No. , 2016

Budget Savings (Omnibus) Bill 2016

iii

Paid Parental Leave Act 2010

Social Security Act 1991

Student Assistance Act 1973

104

Veterans' Entitlements Act 1986

111

Part 2--Application, saving and transitional provisions

113

Schedule 13--Debt recovery

117

Part 1--Departure prohibition orders

117

A New Tax System (Family Assistance) Act 1999

117

A New Tax System (Family Assistance) (Administration) Act 1999

117

Paid Parental Leave Act 2010

127

Social Security Act 1991

138

Student Assistance Act 1973

149

Part 2--Removal of 6-year limit on debt recovery

160

A New Tax System (Family Assistance) (Administration) Act 1999

160

Paid Parental Leave Act 2010

160

Social Security Act 1991

161

Student Assistance Act 1973

162

Schedule 14--Parental leave payments

164

Part 1--Parental leave pay and dad and partner pay to count as

income

164

Social Security Act 1991

164

Veterans' Entitlements Act 1986

164

Part 2--Parental leave pay and dad and partner pay deductions

to avoid overpayments

165

Paid Parental Leave Act 2010

165

Schedule 15--Fringe benefits

169

A New Tax System (Family Assistance) Act 1999

169

Income Tax Assessment Act 1936

169

Social Security Act 1991

170

Schedule 16--Carer allowance

174

Budget Savings (Omnibus) Bill 2016

No. , 2016

Social Security (Administration) Act 1999

174

Schedule 17--Indexation of family tax benefit and parental

leave thresholds

175

A New Tax System (Family Assistance) Act 1999

175

Paid Parental Leave Act 2010

175

Schedule 18--Pension means testing for aged care residents

176

Social Security Act 1991

176

Veterans' Entitlements Act 1986

177

Schedule 19--Employment income

179

A New Tax System (Family Assistance) Act 1999

179

Social Security Act 1991

179

Schedule 20--Psychiatric confinement

180

Social Security Act 1991

180

Schedule 21--Closing carbon tax compensation to new welfare

recipients

183

Part 1--Energy supplement under the family assistance law

183

A New Tax System (Family Assistance) Act 1999

183

Part 2--Energy supplement under the social security law

190

Social Security Act 1991

190

Part 3--Energy supplement under the Farm Household

Support Act

210

Farm Household Support Act 2014

210

Part 4--Energy supplement under the Veterans' Entitlements

Act

211

Veterans' Entitlements Act 1986

211

Part 5--Energy supplement under the Military Rehabilitation

and Compensation Act

221

Military Rehabilitation and Compensation Act 2004

221

Part 6--Telephone allowance

223

Social Security Act 1991

223

No. , 2016

Budget Savings (Omnibus) Bill 2016

Social Security (Administration) Act 1999

223

Part 7--Single income family supplement

225

A New Tax System (Family Assistance) Act 1999

225

Schedule 22--Rates of R&D tax offset

226

Income Tax Assessment Act 1997

226

Schedule 23--Single touch payroll reporting

227

Part 1--Reporting by employers

227

Division 1--Main amendments

227

Taxation Administration Act 1953

227

Division 2--Other amendments

233

Income Tax Assessment Act 1997

233

Taxation Administration Act 1953

233

Taxation (Interest on Overpayments and Early Payments) Act 1983

239

Division 3--Application

240

Part 2--Choice of fund

242

Superannuation Guarantee (Administration) Act 1992

242

Taxation Administration Act 1953

243

Part 3--TFN declarations

245

Income Tax Assessment Act 1936

245

Superannuation Industry (Supervision) Act 1993

245

Part 4--TFN validation

247

Income Tax Assessment Act 1936

247

Schedule 24--Single appeal path under the Military

Rehabilitation and Compensation Act

249

Military Rehabilitation and Compensation Act 2004

249

No. , 2016

Budget Savings (Omnibus) Bill 2016

A Bill for an Act relating to budget savings, and for

other purposes

The Parliament of Australia enacts:

1 Short title

This Act is the Budget Savings (Omnibus) Act 2016.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

Budget Savings (Omnibus) Bill 2016

No. , 2016

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1

1 July 2018.

1 July 2018

3. Schedule 2

1 January 2018.

1 January 2018

4. Schedule 3

1 July 2017.

1 July 2017

5. Schedule 4

The later of:

(a) 1 January 2017; and

(b) the day after this Act receives the Royal

Assent.

6. Schedules 5

and 6

The day after this Act receives the Royal

Assent.

7. Schedule 7

A single day to be fixed by Proclamation.

However, if the provisions do not commence

within the period of 6 months beginning on

the day this Act receives the Royal Assent,

they commence on the day after the end of

that period.

8. Schedule 8,

Part 1

A day or days to be fixed by Proclamation.

However, if any of the provisions do not

commence within the period of 6 months

beginning on the day this Act receives the

Royal Assent, they commence on the day

after the end of that period.

9. Schedule 8,

Part 2

The day after this Act receives the Royal

Assent.

10. Schedule 8,

Part 3

The 28th day after this Act receives the

Royal Assent.

11. Schedule 9

The day after this Act receives the Royal

Assent.

12. Schedule 10

As follows:

(a) if this Act receives the Royal Assent

before 1 January 2017--1 January 2017;

No. , 2016

Budget Savings (Omnibus) Bill 2016

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

(b) if this Act receives the Royal Assent on

or after 1 January 2017--the first

1 January, 1 April, 1 July or 1 October to

occur after the day this Act receives the

Royal Assent.

13. Schedule 11

As follows:

(a) if this Act receives the Royal Assent

before 1 January 2017--1 July 2017;

(b) if this Act receives the Royal Assent on

or after 1 January 2017--the first

1 January or 1 July to occur after the day

this Act receives the Royal Assent.

14. Schedule 12

As follows:

(a) if this Act receives the Royal Assent

before 1 January 2017--1 January 2017;

(b) if this Act receives the Royal Assent on

or after 1 January 2017--the 28th day

after this Act receives the Royal Assent.

15. Schedule 13

The later of:

(a) 1 January 2017; and

(b) the day after this Act receives the Royal

Assent.

16. Schedule 14

The first 1 January, 1 April, 1 July or

1 October to occur after the day this Act

receives the Royal Assent.

17. Schedule 15

The first 1 January or 1 July to occur after

the day this Act receives the Royal Assent.

18. Schedule 16

The later of:

(a) 1 January 2017; and

(b) the day after this Act receives the Royal

Assent.

19. Schedule 17

The day this Act receives the Royal Assent.

20. Schedule 18

The first 1 January or 1 July to occur after

the day this Act receives the Royal Assent.

21. Schedule 19

1 July 2018.

1 July 2018

Budget Savings (Omnibus) Bill 2016

No. , 2016

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

22. Schedule 20

1 July 2017.

1 July 2017

23. Schedule 21,

Parts 1 to 6

20 March 2017.

20 March 2017

24. Schedule 21,

Part 7

1 July 2017.

1 July 2017

25. Schedules 22

and 23

The first 1 January, 1 April, 1 July or

1 October to occur after the day this Act

receives the Royal Assent.

26. Schedule 24

The later of:

(a) 1 January 2017; and

(b) the day after this Act receives the Royal

Assent.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Minimum repayment income for HELP debts Schedule 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

Schedule 1--Minimum repayment income for

HELP debts

Higher Education Support Act 2003

1 Paragraph 154-10(a)

Repeal the paragraph, substitute:

(a) for the 2018-19 income year--$51,956; or

2 Section 154-20 (table)

Repeal the table, substitute:

Applicable percentages

Item

If the person's repayment income is:

The percentage

applicable is:

More than the

minimum repayment income, but less

than:

(a) for the 2018-19

income year--$57,730; or

(b) for a later income year--that amount indexed under

section 154-25.

More than the amount under item 1, but less than:

(a) for the 2018-19

income year--$64,307; or

(b) for a later income year--that amount indexed under

section 154-25.

More than the amount under item 2, but less than:

(a) for the 2018-19

income year--$70,882; or

(b) for a later income year--that amount indexed under

section 154-25.

4.5%

More than the amount under item 3, but less than:

(a) for the 2018-19

income year--$74,608; or

(b) for a later income year--that amount indexed under

section 154-25.

More than the amount under item 4, but less than:

(a) for the 2018-19

income year--$80,198; or

(b) for a later income year--that amount indexed under

section 154-25.

5.5%

Schedule 1 Minimum repayment income for HELP debts

Budget Savings (Omnibus) Bill 2016

No. , 2016

Applicable percentages

Item

If the person's repayment income is:

The percentage

applicable is:

More than the amount under item 5, but less than:

(a) for the 2018-19

income year--$86,856; or

(b) for a later income year--that amount indexed under

section 154-25.

More than the amount under item 6, but less than:

(a) for the 2018-19

income year--$91,426; or

(b) for a later income year--that amount indexed under

section 154-25.

6.5%

More than the amount under item 7, but less than:

(a) for the 2018-19

income year--$100,614; or

(b) for a later income year--that amount indexed under

section 154-25.

More than the amount under item 8, but less than:

(a) for the 2018-19

income year--$107,214; or

(b) for a later income year--that amount indexed under

section 154-25.

7.5%

More than the amount under item 9.

3 Subsection 154-25(1)

Repeal the subsection, substitute:

(1) The following amounts for the 2019-20

income year, or a later

income year:

(a) the

minimum repayment income;

(b) the amounts referred to in paragraph (a) of the second

column of items 1 to 9 of the table in section 154-20;

are indexed by multiplying the corresponding amounts for the

2018-19 income year by the amount worked out using the formula:

AWE for that income year

AWE for the 2018-19 income year

4 Section 154-30

Omit "2006-07", substitute "2019-20".

Schedule 2 Indexation of higher education support amounts

Budget Savings (Omnibus) Bill 2016

No. , 2016

Schedule 2--Indexation of higher education

support amounts

Higher Education Support Act 2003

1 Subsection 198-10(1)

Repeal the subsection, substitute:

(1) An amount is indexed on 1 January each year, by multiplying it by

the

indexation factor for the year.

2 Subsection 198-15(1) (formula)

Repeal the formula, substitute:

The index number for the December reference quarter

The index number for the December base quarter

where:

December base quarter means the

quarter ending on the

31 December that is 2 years and a day before the relevant

1 January.

December reference quarter means the

quarter ending on the

31 December that is a year and a day before the relevant 1 January.

3 Section 198-20

Repeal the section, substitute:

198-20 Meaning of index number

(1) The index number for a

quarter is the All Groups Consumer Price

Index number (being the weighted average of the 8 capital cities)

published by the

Australian Statistician in respect of that quarter.

(2) Subject to subsection (3), if, at any time before or after the

commencement of this subsection:

(a) the

Australian Statistician has published or publishes an

index number in respect of a

quarter; and

Indexation of higher education support amounts Schedule 2

No. , 2016

Budget Savings (Omnibus) Bill 2016

(b) that index number is in substitution for an index number

previously published by the Australian Statistician in respect

of that quarter;

disregard the publication of the later index number for the purposes

of this section.

(3) If, at any time before or after the commencement of this

subsection, the

Australian Statistician has changed or changes the

index reference period for the Consumer Price Index, then, for the

purposes of applying this section after the change took place or

takes place, have regard only to

index numbers published in terms

of the new index reference period.

4 Subclause 1(1) of Schedule 1 (definition of indexation

period)

Repeal the definition.

Schedule 3 Removal of HECS-HELP benefit

Budget Savings (Omnibus) Bill 2016

No. , 2016

Schedule 3--Removal of HECS-HELP benefit

Higher Education Support Act 2003

1 Paragraphs 140-1(2)(d) and (e)

Repeal the paragraphs, substitute:

(d)

compulsory repayment amounts in respect of the debt.

2 Subsection 140-5(1) (method statement, step 4A)

Repeal the step.

3 Subsection 140-5(1) (example)

Omit "Step 4A: Does not apply because Lorraine does not satisfy the

eligibility requirements for the HECS-HELP benefit.".

4 Subsection 140-5(3)

Repeal the subsection.

5 Section 148-1

Omit:

Repayment amounts may be reduced by the HECS-HELP benefit.

To receive the benefit, a person must satisfy eligibility

requirements and apply for it. The Commissioner determines

whether a person is eligible for the benefit, and if so, the amount of

the benefit.

6 Section 148-5

Repeal the section.

7 Subsection 154-1(1)

Omit "Subject to section 154-3, if", substitute "If".

8 Section 154-3

Repeal the section.

Removal of HECS-HELP benefit Schedule 3

No. , 2016

Budget Savings (Omnibus) Bill 2016

9 Section 154-35 (note)

Repeal the note.

10 Section 154-40

Repeal the section, substitute:

154-40 Notification of notices of assessment of tax

If:

(a) the

Commissioner is required to serve on a person a notice

of assessment in respect of the person's income of an

income year under section 174 of the Income Tax

Assessment Act 1936; and

(b) the Commissioner has made, in respect of the person, an

assessment under section 154-35 of this Act of the amounts

referred to in that section; and

served on the person;

notice of the assessment under that section may be served by

specifying the amounts concerned in the notice referred to in

paragraph (a).

11 Section 154-85

Repeal the section.

12 Division 157

Repeal the Division.

13 Section 206-1 (table item 4A)

Repeal the item.

14 Subsection 238-10(1) (table item 4A)

Repeal the item.

15 Subclause 1(1) of Schedule 1 (definition of HECS-HELP

benefit)

Repeal the definition.

Schedule 3 Removal of HECS-HELP benefit

Budget Savings (Omnibus) Bill 2016

No. , 2016

Income Tax Assessment Act 1997

16 Section 11-

15 (table item headed "education and training")

Omit:

HECS-HELP benefit, recipient of ...................................... 51-10

17 Subsection 51-10 (table item 2.9)

Repeal the item.

18 Subsection 995-1(1) (definition of HECS-HELP benefit)

Repeal the definition.

19 Application and saving provision

(1)

In this item:

Act means the Higher Education Support Act 2003.

commencement means the day this Schedule commences.

earlier income year means an income year commencing before

commencement.

(2)

The amendments made by this Schedule do not apply in relation to

HECS-HELP benefit for an earlier income year.

(3)

Without limiting subitem (2):

(a) a person may, after commencement, make an application in

respect of an earlier income year in accordance with

Subdivision 157-A of Division 157 of the Act as in force

immediately before commencement; and

(b) the Commissioner must make a determination for any

application in respect of an earlier year in accordance with

Subdivision 157-C of Division 157 of the Act as in force

immediately before commencement; and

commencement, continues to apply after commencement in

relation to working out a former accumulated HELP debt of a

person in respect of whom HECS-HELP benefit has been

determined for an earlier income year; and

(d) section 154-3 of the Act, as in force immediately before

commencement, continues to apply after commencement in

relation to working out the amount that a person in respect of

Removal of HECS-HELP benefit Schedule 3

No. , 2016

Budget Savings (Omnibus) Bill 2016

whom a HECS-HELP benefit has been determined for an

earlier income year is liable to pay under section 154-1 of the

Act; and

(e) a person may apply, after commencement, for review of a

decision referred to in item 4A of the table in section 206-1

of the Act as in force immediately before commencement;

and

(f) such a decision may be reviewed and given effect in

accordance with the Act as in force immediately before

commencement; and

(g) a provision of a taxation law (within the meaning of the

Income Tax Assessment Act 1997) has the effect necessary to

give effect to this item.

(4)

The HECS-HELP Benefit Guidelines in force immediately before

commencement continue in force for the purposes of the application of

the Higher Education Support Act 2003 in relation to HECS-HELP

benefit for earlier income years. The Guidelines as continued under this

subitem may be amended or repealed as if they were Guidelines made

under section 238-10 of the Act.

Schedule 4 Job commitment bonus

Part 1 Main amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

Schedule 4--Job commitment bonus

Part 1--Main amendments

Social Security Act 1991

1 Subsection 23(1) (definition of job commitment bonus)

Repeal the definition.

2 Part 2.16A

Repeal the Part.

Social Security (Administration) Act 1999

3 Subsection 13(6)

Repeal the subsection.

4 Subdivision FD of Division 1 of Part 3

Repeal the Subdivision.

5 Subsection 37(6A)

Repeal the subsection.

6 Paragraph 47(1) (paragraph (hsa) of the definition of lump

sum benefit)

Repeal the paragraph.

7 Section 47BA

Repeal the section.

Job commitment bonus Schedule 4

Consequential amendments Part 2

No. , 2016

Budget Savings (Omnibus) Bill 2016

Part 2--Consequential amendments

Farm Household Support Act 2014

8 Section 95 (table item 1A)

Repeal the item.

Income Tax Assessment Act 1997

9 Section 11-

15 (table item headed "social security or like

payments")

Omit:

job commitment bonus under the Social Security Act

1991

52-10

10 Paragraph 52-10(1)(wb)

Repeal the paragraph.

11 Subsection 52-10(1EB)

Repeal the subsection.

12 Section 52-40 (table item 14)

Repeal the item.

Schedule 4 Job commitment bonus

Part 3 Saving and transitional provisions

Budget Savings (Omnibus) Bill 2016

No. , 2016

Part 3--Saving and transitional provisions

13 Saving and transitional provisions

(1)

To avoid doubt, a person cannot become qualified for a job commitment

bonus on or after the commencement of this item.

(2)

Despite the amendments made by this Schedule, Chapter 5 of the Social

Security Act 1991, as in force immediately before the commencement of

this item, continues to apply on and after that commencement in relation

to a payment of a job commitment bonus before, on or after that

commencement.

(3)

Despite the amendments made by this Schedule, section 27D of the

Social Security (Administration) Act 1999, as in force immediately

before the commencement of this item, continues to apply on and after

that commencement in relation to a person making a claim for a job

commitment bonus where the person qualified for the bonus before that

commencement.

(4)

Despite the amendments made by this Schedule, Part 3 of the Social

Security (Administration) Act 1999, as in force immediately before the

commencement of this item, continues to apply on and after that

commencement in relation to:

(a) deciding claims for a job commitment bonus made before, on

or after that commencement; or

(b) determinations made under that Part before, on or after that

commencement in relation to job commitment bonus; or

commencement.

(5)

Despite the amendments made by this Schedule, Parts 4 and 4A of the

Social Security (Administration) Act 1999, as in force immediately

before the commencement of this item, continue to apply on and after

that commencement in relation to a decision under the social security

law in relation to a job commitment bonus made before, on or after that

commencement.

(6)

Despite the amendments made by this Schedule, subsection 52-10(1EB)

of the Income Tax Assessment Act 1997, as in force immediately before

the commencement of this item, continues to apply on and after that

Schedule 5 Australian Renewable Energy Agency's finances

Budget Savings (Omnibus) Bill 2016

No. , 2016

Schedule 5--Australian Renewable Energy

Agency's finances

Australian Renewable Energy Agency Act 2011

1 Subsection 64(1) (table items 5 to 9)

Repeal the items, substitute:

2017-2018

$107,925,000.00

2018-2019

$67,296,000.00

2019-2020

$19,704,000.00

2020-2021

$12,035,000.00

2021-2022

$7,474,000.00

Schedule 7 Abolishing the National Health Performance Authority

Part 1 Amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

Schedule 7--Abolishing the National Health

Performance Authority

Part 1--Amendments

National Health Reform Act 2011

1 Paragraph 3(b)

Repeal the paragraph.

2 Section 4

Omit:

•

This Act sets up:

(a)

the Australian Commission on Safety and Quality in

Health Care; and

(b)

the National Health Performance Authority; and

(c)

the Independent Hospital Pricing Authority; and

(d)

the office of Administrator of the National Health

Funding Pool; and

(e)

the National Health Funding Body.

substitute:

•

This Act sets up:

(a)

the Australian Commission on Safety and Quality in

Health Care; and

(b)

the Independent Hospital Pricing Authority; and

(c)

the office of Administrator of the National Health

Funding Pool; and

(d)

the National Health Funding Body.

3 Section 4

Omit:

Abolishing the National Health Performance Authority Schedule 7

Amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

•

The main function of the National Health Performance

Authority is to monitor, and report on, the performance of the

following:

(a)

local hospital networks;

(b)

public hospitals;

(c)

private hospitals;

(d)

primary health care organisations;

(e)

other bodies or organisations that provide health care

services.

4 Section 5 (definition of local hospital network, first

occurring)

Repeal the definition.

5 Section 5 (definition of local hospital network, second

occurring)

Omit ", in Part 5.2,".

6 Section 5

Repeal the following definitions:

(a) definition of member of the Performance Authority;

(b) definition of official of the Performance Authority;

(d) definition of Performance Authority CEO;

(e) definition of personal information;

(f) definition of primary health care organisation;

(g) definition of protected Performance Authority information;

(h) definition of staff of the Performance Authority.

7 Section 5 (paragraph (b) of the definition of vacancy)

Repeal the paragraph.

8 Subsection 6(2)

Repeal the subsection.

9 Paragraph 54H(1)(a)

Repeal the paragraph.

Schedule 7 Abolishing the National Health Performance Authority

Part 1 Amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

10 Chapter 3

Repeal the Chapter.

11 Paragraph 220(1)(a)

Repeal the paragraph.

12 Paragraph 275(1)(b)

Repeal the paragraph.

13 Paragraph 279(1)(b)

Repeal the paragraph.

Abolishing the National Health Performance Authority Schedule 7

Application and transitional provisions Part 2

No. , 2016

Budget Savings (Omnibus) Bill 2016

Part 2--Application and transitional provisions

Division 1

--Interpretation

14 Interpretation

In this Part:

AIHW means the Australian Institute of Health and Welfare.

asset means:

(a) any legal or equitable estate or interest in real or personal

property, whether actual, contingent or prospective; and

(b) any right, power, privilege or immunity, whether actual,

contingent or prospective.

assets official, in relation to an asset other than land, means the person

or authority who:

(a) under a law of the Commonwealth, a State or a Territory; or

(b) under a trust instrument; or

has responsibility for keeping a register in relation to assets of the kind

concerned.

Director means the Director of the Australian Institute of Health and

Welfare.

Health Department means the Department administered by the Health

Minister.

Health Minister means the Minister responsible for administering the

Australian Institute of Health and Welfare Act 1987.

Health Secretary means the Secretary of the Health Department.

land means any legal or equitable estate or interest in real property,

whether actual, contingent or prospective.

land registration official, in relation to land, means the Registrar of

Titles or other proper officer of the State or Territory in which the land

is situated.

liability means any liability, duty or obligation, whether actual,

contingent or prospective.

NHPA means the National Health Performance Authority.

Schedule 7 Abolishing the National Health Performance Authority

Part 2 Application and transitional provisions

Budget Savings (Omnibus) Bill 2016

No. , 2016

NHPA CEO means the Chief Executive Officer of the National Health

Performance Authority.

transition time means the commencement of this Schedule.

Division 2

--Transfer of assets and liabilities

15 Vesting of assets

(1)

This item applies to the assets of the NHPA immediately before the

transition time.

(2)

At the transition time, the assets cease to be assets of the NHPA and

become assets of the AIHW, without any conveyance, transfer or

assignment. The AIHW becomes the successor in law in relation to the

assets.

16 Vesting of liabilities

(1)

This item applies to the liabilities of the NHPA immediately before the

transition time.

(2)

At the transition time, the liabilities cease to be liabilities of the NHPA

and become liabilities of the AIHW, without any conveyance, transfer

or assignment. The AIHW becomes the successor in law in relation to

the liabilities.

17 Transfers of land may be registered

(1)

This item applies if:

(a) any land vests in the AIHW under this Division; and

(b) there is lodged with a land registration official a certificate

that:

(i) is signed by the Health Minister; and

(ii) identifies the land, whether by reference to a map or

otherwise; and

(iii) states that the land has become vested in the AIHW

under this Division.

(2)

The land registration official may:

(a) register the matter in a way that is the same as, or similar to,

the way in which dealings in land of that kind are registered;

and

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(b) deal with, and give effect to, the certificate.

(3)

A certificate under paragraph (1)(b) is not a legislative instrument.

18 Certificates relating to vesting of assets other than land

(1)

This item applies if:

(a) an asset other than land vests in the AIHW under this

Division; and

(b) there is lodged with an assets official a certificate that:

(i) is signed by the Health Minister; and

(ii) identifies the asset; and

(iii) states that the asset has become vested in the AIHW

under this Division.

(2)

The assets official may:

(a) deal with, and give effect to, the certificate as if it were a

proper and appropriate instrument for transactions in relation

to assets of that kind; and

(b) make such entries in the register in relation to assets of that

kind as are necessary, having regard to the effect of this

Division.

(3)

A certificate under paragraph (1)(b) is not a legislative instrument.

Division 3

--Transfer of other matters

19 Things done by, or in relation to, the NHPA or the NHPA

CEO

(1)

Anything done by, or in relation to, the NHPA before the transition time

has effect at and after that time as if it had been done by the AIHW.

(2)

Anything done by, or in relation to, the NHPA CEO before the

transition time has effect at and after that time as if it had been done by

the Director.

(3)

This item does not limit the operation of items 15 and 16.

20 References in certain instruments to the NHPA or the

NHPA CEO

(1)

This item applies to an instrument that:

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(a) is in force immediately before the transition time; and

(b) contains a reference to the NHPA or the NHPA CEO.

(2)

If the instrument relates to:

(a) an asset or liability of the NHPA that, as a result of the

operation of item 15 or 16, becomes an asset or liability of

the AIHW; or

(b) a thing done by, or in relation to, the NHPA or the NHPA

CEO, that, as a result of the operation of item 19, is taken to

have been done by, or in relation to, the AIHW or the

Director;

then:

after the transition time, as if it were a reference to the

AIHW; and

(d) a reference in the instrument to the NHPA CEO has effect, at

and after the transition time, as if it were a reference to the

Director.

(3)

In this item:

instrument:

(a) includes:

(i) a contract, undertaking, deed or agreement; and

(ii) a notice, authority, order or instruction; and

(iii) an instrument made under an Act or under a legislative

instrument; but

(b) does not include:

(i) an Act; or

(ii) an instrument made under this Act; or

(iii) an instrument specified in rules made under item 34.

21 Transfer of appropriated money

(1)

For the purposes of the operation of an Appropriation Act after the

transition time, references to the National Health Performance

Authority are to be read as references to the Australian Institute of

Health and Welfare.

(2)

In this item:

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Appropriation Act means an Act appropriating money for expenditure

out of the Consolidated Revenue Fund.

22 Legal proceedings of the NHPA

(1)

If any proceedings to which the NHPA was a party were pending in any

court or tribunal immediately before the transition time, the AIHW is

substituted for the NHPA, from the transition time, as a party to those

proceedings.

(2)

If any proceedings to which the NHPA CEO was a party were pending

in any court or tribunal immediately before the transition time, the

Director is substituted for the NHPA CEO, from the transition time, as a

party to those proceedings.

23 Transfer of NHPA's records and documents

(1)

This item applies to any records or documents that were in the

possession of the NHPA immediately before the transition time.

(2)

The records and documents are to be transferred to the AIHW after the

transition time.

(3)

Sections 37 and 41 of the Public Governance, Performance and

Accountability Act 2013 apply in relation to records or documents

transferred to a Commonwealth entity (within the meaning of that Act)

under this item as if the records or documents related to that entity.

Note:

Records and documents transferred under this item are Commonwealth records for the

purposes of the Archives Act 1983.

24 Safety, Rehabilitation and Compensation Act 1988

(1)

This item applies in relation to a person if:

(a) the person was a member of the staff of the NHPA at any

time before the transition time; and

(b) the person was an employee (within the meaning of the

Safety, Rehabilitation and Compensation Act 1988 (the SRC

Act)) of the NHPA when the person was such a member; and

before the transition time.

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(2)

The SRC Act applies, after the transition time, as if the person had been

an employee of the AIHW during the period that the person was a

member of the staff of the NHPA as mentioned in paragraph (1)(a).

(3)

This item does not limit item 19 or 20 of this Schedule.

25 No transfer of appointment, engagement or employment

of staff

Nothing in this Part produces the result that the appointment,

engagement or employment of an official of the Performance Authority

immediately before the transition time has effect, at or after that time, as

if it were an appointment, engagement or employment of the person in

relation to the AIHW.

Division 4

--Annual reporting obligation

26 Final annual report for the NHPA

(1)

The Health Secretary must prepare and give to the Health Minister, for

presentation to the Parliament, a report (the final report) on the

activities of the NHPA during the final reporting period.

(2)

Sections 39, 40, 42, 43 and 46 of the Public Governance, Performance

and Accountability Act 2013, and rules made for the purposes of those

sections, apply subject to this item in relation to the NHPA and the final

reporting period as if:

(a) references in those sections and rules to an annual report for a

Commonwealth entity were references to the final report; and

(b) references in those sections and rules to a reporting period for

a Commonwealth entity were references to the final reporting

period; and

entity were references to the NHPA; and

(d) references in those sections and rules to the accountable

authority for a Commonwealth entity were references to the

Health Secretary; and

(e) references in those sections and rules to the responsible

Minister for a Commonwealth entity were references to the

Health Minister.

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(3)

The Health Secretary must give the final report to the Health Minister

by the 15th day of the fourth month after the end of the final reporting

period. The Health Minister may grant an extension of time in special

circumstances.

(4)

The Health Minister must table the final report in each House of the

Parliament as soon as practicable after receiving the report.

(5)

The Health Secretary must publish the final report on the Health

Department's website as soon as practicable after the report is tabled in

the House of Representatives.

(6)

In this item:

annual report means a report under section 46 of the Public

Governance, Performance and Accountability Act 2013.

final reporting period means the period:

(a) beginning:

(i) if, by the transition time, no annual report for the NHPA

has been given to the Health Minister for the most

recent reporting period for the NHPA that ended before

the transition time--at the start of that reporting period;

(ii) otherwise--at the start of the reporting period for the

NHPA that includes the transition time; and

(b) ending immediately before the transition time.

reporting period for the NHPA means the reporting period for the

NHPA under the Public Governance, Performance and Accountability

Act 2013.

Division 5

--Disclosure and use of information

27 Protected Performance Authority information

(1)

Section 113 (secrecy) of the National Health Reform Act 2011, as in

force immediately before the transition time, continues to apply after

that time in relation to a person who was at any time an official of the

Performance Authority, despite the repeal of that section by Part 1 of

this Schedule.

(2)

Subsection 120(3) (disclosure to agencies, bodies or persons other than

the NHPA) of the National Health Reform Act 2011, as in force

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immediately before the transition time, continues to apply after that

time in relation to an agency, body or person that was given protected

Performance Authority information before that time, despite the repeal

of that subsection by Part 1 of this Schedule.

28 Personal information

--reports

Section 127 (use of personal information in reports) of the National

Health Reform Act 2011, as in force immediately before the transition

time, applies after that time in relation to a report prepared or published

for the purposes of this Part as if:

(a) the report were a report prepared or published by the

Performance Authority in the performance of the

Performance Authority's functions; and

(b) the reference in subsection 127(3) of that Act to an official of

the Performance Authority were a reference to the Health

Secretary or an APS employee in the Health Department.

29 Protection of patient confidentiality

Section 279 (protection of patient confidentiality) of the National

Health Reform Act 2011, as in force immediately before the transition

time, applies after that time in relation to the performance by a person

of a function under this Part of preparing or publishing a report as if that

function were a function of the NHPA.

Division 6

--Miscellaneous

30 Exemption from stamp duty and other State or Territory

taxes

(1)

No stamp duty or other tax is payable under a law of a State or a

Territory in respect of an exempt matter, or anything connected with an

exempt matter.

(2)

For the purposes of this item, an exempt matter is:

(a) the vesting of an asset or liability under this Part; or

(b) the operation of this Part in any other respect.

(3)

The Health Minister may certify in writing:

(a) that a specified matter is an exempt matter; or

(b) that a specified thing was connected with a specified exempt

matter.

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(4)

In all courts, and for all purposes (other than for the purposes of

criminal proceedings), a certificate under subitem (3) is prima facie

evidence of the matters stated in the certificate.

(5)

A certificate under subitem (3) is not a legislative instrument.

31 Certificates taken to be authentic

A document that appears to be a certificate made or issued under a

particular provision of this Part:

(a) is taken to be such a certificate; and

(b) is taken to have been properly given;

unless the contrary is established.

32 Delegation by Health Minister

(1)

The Health Minister may, by writing, delegate all or any of his or her

powers and functions under this Part to:

(a) the Health Secretary; or

(b) an SES employee, or acting SES employee, in the Health

Department.

Note:

The expressions SES employee and acting SES employee are defined in the Acts

Interpretation Act 1901.

(2)

In exercising powers or functions under a delegation, the delegate must

comply with any directions of the Health Minister.

(3)

Subitem (1) does not apply to a power to make, vary or revoke a

legislative instrument.

33 Compensation for acquisition of property

(1)

If the operation of this Part would result in an acquisition of property

(within the meaning of paragraph 51(xxxi) of the Constitution) from a

person otherwise than on just terms (within the meaning of that

paragraph), the Commonwealth is liable to pay a reasonable amount of

compensation to the person.

(2)

If the Commonwealth and the person do not agree on the amount of the

compensation, the person may institute proceedings in the Federal Court

of Australia or the Federal Circuit Court of Australia for the recovery

from the Commonwealth of such reasonable amount of compensation as

the court determines.

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34 Transitional rules

(1)

The Health Minister may, by legislative instrument (and subject to

subitem (3)), make rules prescribing matters of a transitional nature

(including prescribing any saving or application provisions) relating to

the amendments or repeals made by this Schedule.

(2)

Without limiting subitem (1), rules made for the purposes of that

subitem, before the end of the period of 12 months starting at the

transition time, may:

(a) confer functions on the AIHW; and

(b) provide that the following have effect with any modifications

prescribed by the rules:

(i) this Part;

(ii) the Australian Institute of Health and Welfare Act 1987.

(3)

To avoid doubt, the rules may not do the following:

(a) create an offence or civil penalty provision;

(b) provide:

(i) powers of arrest or detention; or

(ii) powers relating to entry, search or seizure;

(d) set an amount to be appropriated from the Consolidated

Revenue Fund under an appropriation in this Act;

(e) directly amend the text of this Act.

(4)

This Schedule (other than subitem (3)) does not limit the rules that may

be made for the purposes of subitem (1).

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Budget Savings (Omnibus) Bill 2016

Schedule 8--Aged care

Part 1--Compliance

Aged Care Act 1997

1 After subsection 25-1(3)

Insert:

(3A) Without limiting paragraph (3)(c), the Classification Principles

may require the Secretary to take into account (including as part of

a method or procedure specified for the purposes of subsection (2))

specified matters relating to care provided, or to be provided, to the

care recipient, including:

(a) the manner in which the care was, is or is to be provided; or

(b) the qualifications of any person involved in providing the

care.

2 Validation of Classification Principles

(1)

This item applies to a thing purportedly done under the Aged Care Act

1997 at any time before the commencement of this item, to the extent

that the thing purportedly done would, apart from this item, be invalid

because the Classifications Principles required the Secretary to take into

account a matter relating to care provided, or to be provided, to a care

recipient, including:

(a) the manner in which the care was, is or is to be provided; or

(b) the qualifications of any person involved in providing the

care.

(2)

The thing purportedly done is as valid and effective, and is taken always

to have been as valid and effective, as it would have been had

subsection 25-1(3A) of that Act, as amended by this Part, been in force.

(3)

All persons are, by force of this subitem, declared to be, and always to

have been, entitled to act on the basis that the thing purportedly done is

valid and effective.

(4)

This item does not affect rights or liabilities of parties to proceedings

for which leave to appeal to the High Court of Australia has been given

on or before the day this item commences, if the fact that the

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No. , 2016

Classification Principles required the Secretary to take into account the

matter is in issue in the proceedings.

(5)

Subject to subitem (4), subitems (1), (2) and (3) have effect in relation

to:

(a) proceedings (whether original or appellate) that begin on or

after the commencement of this item; and

(b) proceedings (whether original or appellate) that began before

that commencement, being proceedings that had not been

finally determined as at that commencement.

(6)

To avoid doubt, a reference in this item to the Classification Principles

includes a reference to a provision of the Classification Principles

applying, adopting or incorporating any matter contained in any other

instrument or writing.

(7)

This item does not apply to the extent (if any) to which its operation

would result in the acquisition of property (within the meaning of

paragraph 51(xxxi) of the Constitution) from a person otherwise than on

just terms (within the meaning of that paragraph).

3 Paragraph 25-4(1)(b)

Omit "29-1; and", substitute "29-1.".

4 Paragraph 25-4(1)(c)

Repeal the paragraph.

5 At the end of subsection 25-4(1)

Add:

Note:

See also section 27-3 (reappraisal required by Secretary) and

Division 29A (civil penalty for incorrect classifications).

6 Before subsection 27-3(1)

Insert:

False, misleading or inaccurate information

7 Paragraph 27-3(1)(b)

Omit "and".

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Budget Savings (Omnibus) Bill 2016

8 Paragraph 27-3(1)(c)

Repeal the paragraph.

9 Application of amendments

The amendments of subsections 25-4(1) and 27-3(1) of the Aged Care

Act 1997 made by this Part apply in relation to a change of

classification mentioned in paragraph 25-4(1)(b) or 27-3(1)(b) that

occurs on or after the commencement of this item, whether the appraisal

or reappraisal mentioned in paragraph 25-4(1)(a) or 27-3(1)(a) occurred

before, on or after that commencement.

10 At the end of subsection 27-3(1)

Add:

Note:

See also section 25-4 (suspending approved providers from making

appraisals and reappraisals) and Division 29A (civil penalty for

incorrect classifications).

11 After subsection 27-3(3)

Insert:

Significant decrease in care needs

(3A) The Secretary may give an approved provider a written notice

requiring a reappraisal to be made of the level of care needed by a

care recipient if:

(a) the approved provider provides care to the care recipient; and

(b) the Secretary reasonably suspects that the care needs of the

care recipient have decreased significantly since the last

appraisal under section 25-3, or reappraisal under

section 27-4, of the level of care needed by the care recipient.

(3B) The Classification Principles may specify the circumstances in

which the care needs of a care recipient are taken to decrease

significantly.

(3C) The notice must specify a period within which the reappraisal is to

be made.

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Varying or revoking notice

12 Subsection 27-3(4)

After "subsection (1)", insert "or (3A)".

13 Before subsection 27-3(5)

Insert:

Authorised reappraisers

14 At the end of subsection 27-3(5)

Add "or (3A)".

15 Section 29-2

Repeal the section, substitute:

29-2 Date of effect of change

A change of a classification under subsection 29-1(1) is taken to

have had effect from the day on which the classification took

effect.

16 Application of amendments

(1)

The amendment of section 29-2 of the Aged Care Act 1997 made by

this Part applies in relation to a change of classification if the Secretary

gives written notice of the change to an approved provider under

subsection 29-1(4) of that Act on or after the commencement of this

item, whether the classification took effect before, on or after that

commencement.

(2)

Subitem (1) has no effect to the extent (if any) to which:

(a) its operation would result in the acquisition of property

(within the meaning of paragraph 51(xxxi) of the

Constitution) from a person otherwise than on just terms

(within the meaning of that paragraph); or

(b) it imposes taxation (within the meaning of section 55 of the

Constitution).

17 At the end of Part 2.4

Add:

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Budget Savings (Omnibus) Bill 2016

Division 29A--Civil penalty for incorrect classifications

29A-1 Warning notices

(1) The Secretary may notify an approved provider in writing if the

Secretary:

(a) reasonably suspects that the approved provider, or a person

acting on the approved provider's behalf, gave false or

misleading information in an appraisal or reappraisal

connected with a classification reviewed under

subsection 29-1(3); and

(b) changes the classification under section 29-1.

Note:

See also sections 25-4 (suspending approved providers from making

appraisals and reappraisals) and 27-3 (reappraisal required by

Secretary).

(2) The Secretary may also notify an approved provider in writing if:

(a) the approved provider makes 2 or more of any of the

following:

(i) an appraisal under section 25-3;

(ii) a reappraisal under section 27-4; and

(b) the Secretary changes 2 or more classifications under

section 29-1 because the Secretary is satisfied that the

appraisals or reappraisals were incorrect or inaccurate; and

significant (see section 29A-3).

(3) A notice under this section must:

(a) specify the classification or classifications the Secretary

changed; and

(b) include a statement that the Secretary suspects the matter

mentioned in paragraph (1)(a), or is satisfied of the matter

mentioned in paragraph (2)(c), and the Secretary's reasons

for this; and

29A-2 Civil penalty

(1) An approved provider is liable to a civil penalty if:

(a) the Secretary changes a classification under section 29-1; and

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(b) the change occurs in the following circumstances:

(i) the change occurs within 2 years (the warning period)

after the Secretary gives a notice to the approved

provider under subsection 29A-1(1) or (2);

(ii) during the warning period, the approved provider, or a

person acting on the approved provider's behalf, gives

false or misleading information in an appraisal under

section 25-3, or reappraisal under section 27-4,

connected with the classification.

Civil penalty:

60 penalty units.

(2) An approved provider is liable to a civil penalty if:

(a) the Secretary changes a classification under section 29-1; and

(b) the change occurs in the following circumstances:

(i) the change occurs within 2 years (the warning period)

after the Secretary gives a notice to the approved

provider under subsection 29A-1(1) or (2);

(ii) during the warning period, the approved provider makes

one or more appraisals under section 25-3 or

reappraisals under section 27-4;

(iii) the Secretary changes the classification as mentioned in

paragraph (a) of this subsection because the Secretary is

satisfied that any of the appraisals or reappraisals

mentioned in subparagraph (ii) of this paragraph was

incorrect or inaccurate;

(iv) the Secretary changes one or more other classifications

under section 29-1 during the warning period because

the Secretary is satisfied that any of the appraisals or

reappraisals mentioned in subsection (ii) of this

paragraph was incorrect or inaccurate;

(v) the changes mentioned in subparagraphs (iii) and (iv),

taken together, are significant (see section 29A-3).

Civil penalty:

60 penalty units.

(3) To avoid doubt, the approved provider may be liable to a separate

civil penalty under subsection (1) or (2) for each classification the

Secretary changes under section 29-1 during the warning period.

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29A-3 When changes are significant

In determining, for the purposes of paragraph 29A-1(2)(c) or

subparagraph 29A-2(2)(b)(v), whether changes, taken together, are

significant, regard must be had to the following matters:

(a) the number of classifications changed, relative to the number

of care recipients to whom the approved provider provides

care;

(b) the significance of each change;

reappraisals that led to the changes;

(d) any other matters specified by the Classification Principles.

18 Before subsection 85-5(1)

Insert:

Request for reconsideration of reviewable decision

19 After subsection 85-5(4)

Insert:

(4A) The person's request must comply with section 85-6 (application

fee) if the

reviewable decision was made under subsection 29-1(1)

(a decision to change the classification of a care recipient).

Reconsideration of reviewable decision

20 After section 85-5

Insert:

85-6 Application fee for reconsideration of decision to change

classification of care recipient

(1) A request made under subsection 85-5(1) for reconsideration of a

reviewable decision made under subsection 29-1(1) (a decision to

change the classification of a care recipient) must be accompanied

by the application fee (if any) specified in, or worked out in

accordance with, the Classification Principles.

(2) The amount of the fee must not be such as to amount to taxation.

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(3) The Classification Principles may deal with other matters in

relation to the fee, including the following:

(a) the circumstances in which the Secretary may waive the fee;

(b) the circumstances in which an approved provider is exempt

from paying the fee;

or in part.

21 Before Division 96

Insert:

Division 95C--Civil penalties

95C-1 Civil penalty provisions

Enforceable civil penalty provisions

(1) Each

civil penalty provision of this Act is enforceable under Part 4

of the

Regulatory Powers Act.

Note:

Part 4 of the Regulatory Powers Act allows a civil penalty provision to

be enforced by obtaining an order for a person to pay a pecuniary

penalty for the contravention of the provision.

Authorised applicant

(2) For the purposes of Part 4 of the

Regulatory Powers Act, the

Secretary is an authorised applicant in relation to the

civil penalty

provisions of this Act.

Relevant court

(3) For the purposes of Part 4 of the

Regulatory Powers Act, each of

the following courts is a relevant court in relation to the

civil

penalty provisions of this Act:

(a) the Federal Court of Australia;

(b) the Federal Circuit Court of Australia;

to the matter.

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Budget Savings (Omnibus) Bill 2016

22 Section 96-1 (at the end of the cell at table item 9, column

headed "Part or provision")

Add "and section 85-6".

23 Clause 1 of Schedule 1

Insert:

civil penalty provision has the same meaning as in the

Regulatory

Powers Act.

Regulatory Powers Act means the Regulatory Powers (Standard

Provisions) Act 2014.

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Part 2--Adviser and administrator panels

Aged Care Act 1997

24 Paragraph 25-4A(1)(b)

Omit ", approved by the Secretary,".

25 Subsection 25-4A(2)

Repeal the subsection.

26 Subsection 25-4A(3)

Repeal the subsection, substitute:

(3) If the agreement requires the approved provider to appoint an

adviser, the approved provider must appoint the adviser within the

period specified in the agreement.

27 At the end of section 25-4A

Add:

(4) The Classification Principles may exclude a class of persons from

being appointed as an adviser.

(5) The Classification Principles may specify matters that the

Secretary must take into account in specifying, in the agreement,

the period within which an approved provider that is required to

appoint an adviser must appoint an adviser.

28 Paragraph 25-4B(1)(a)

Omit "subsection 25-4A(2) or (3)", substitute "subsection 25-4A(3)".

29 Subparagraphs 66-2(1)(a)(iii) and (iv)

Omit "approved by the Commonwealth".

30 Subsections 66-2(2) and (3)

After "Commonwealth", insert ", or a Commonwealth officer or

employee,".

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31 Division 66A (heading)

Repeal the heading, substitute:

Division 66A--Appointing administrators and advisers

32 Sections 66A-1, 66A-2 and 66A-3

Repeal the sections, substitute:

66A-2 Appointment of advisers

(1) The Sanctions Principles may exclude a class of persons from

being appointed as an adviser.

(2) A person is not eligible to be appointed as an adviser in accordance

with this section if the person is within a class of persons that the

Sanctions Principles exclude from being appointed as an adviser.

(3) If an approved provider has agreed to the appointment of an

adviser in accordance with this section, the approved provider must

appoint the adviser within the period specified in the agreement.

(4) The Sanctions Principles may specify matters that the Secretary

must take into account in specifying a period mentioned in

subsection (3).

66A-3 Appointment of administrators

(1) The Sanctions Principles may exclude a class of persons from

being appointed as an administrator.

(2) A person is not eligible to be appointed as an administrator in

accordance with this section if the person is within a class of

persons that the Sanctions Principles exclude from being appointed

as an administrator.

(3) If an approved provider has agreed to the appointment of an

administrator in accordance with this section, the approved

provider must appoint the administrator within the period specified

in the agreement.

(4) The Sanctions Principles may specify matters that the Secretary

must take into account in specifying a period mentioned in

subsection (3).

Schedule 8 Aged care

Part 2 Adviser and administrator panels

Budget Savings (Omnibus) Bill 2016

No. , 2016

33 Application of amendments

(1)

The amendments of sections 25-4A and 25-4B of the Aged Care Act

1997 made by this Part apply in relation to agreements entered into on

or after the commencement of this item.

(2)

The amendments of section 66-2 of the Aged Care Act 1997 made by

this Part apply in relation to sanctions imposed on or after the

commencement of this item.

Aged care Schedule 8

Approved provider obligations Part 3

No. , 2016

Budget Savings (Omnibus) Bill 2016

Part 3--Approved provider obligations

Aged Care Act 1997

34 Subsection 9-1(1)

Repeal the subsection, substitute:

(1) An approved provider must notify the Secretary of a change of

circumstances that materially affects the approved provider's

suitability to be a provider of

aged care (see section 8-3). The

notification must occur within 28 days after the change occurs.

Note:

Approved providers have a responsibility under Part 4.3 to comply

with this obligation. Failure to comply with a responsibility can result

in a sanction being imposed under Part 4.4.

35 Subsection 9-1(3)

Repeal the subsection.

36 Paragraph 9-1(3A)(a)

Omit "there is a change of any of an", substitute "a change of

circumstances that materially affects the approved provider's suitability

to be a provider of

aged care involves a change in any of the".

37 Subsections 9-1(6), (7) and (8)

Repeal the subsections.

38 Application of amendments

The amendments of section 9-1 of the Aged Care Act 1997 made by this

Part do not apply in relation to a change of circumstances, or a change

of key personnel, that occurred before the commencement of this item.

Schedule 9 Dental services

Budget Savings (Omnibus) Bill 2016

No. , 2016

Schedule 9--Dental services

Age Discrimination Act 2004

1 Schedule 2 (table item

3A, column headed "Provision(s)")

Omit "Part", substitute "Parts 1A and".

Dental Benefits Act 2008

2 Title

Repeal the title, substitute:

An Act relating to dental services, and for related

purposes

3 Section 3

Repeal the section, substitute:

3 Simplified outline of this Act

•

The Commonwealth may grant financial assistance to the

States, the Northern Territory and the Australian Capital

Territory in relation to dental services rendered on or after

1 January 2017.

•

Dental benefits are payable for certain dental services

rendered before 1 January 2017.

4 Section 4 (definition of dental service)

Before "means", insert "(except when used in the first sentence in

section 3 or in Part 1A)".

5 After Part 1

Insert:

Dental services Schedule 9

No. , 2016

Budget Savings (Omnibus) Bill 2016

Part 1A--Grants of financial assistance

7B Simplified outline of this Part

•

The Commonwealth may grant financial assistance to the

States in relation to dental services rendered on or after

1 January 2017. For this purpose, State includes the Northern

Territory and the Australian Capital Territory.

•

There is a cap on the total amount of financial assistance that

may be granted in a financial year.

7C Definitions

In this Part:

dental service has its ordinary meaning.

indexation factor, for a financial year, has the meaning given by

section 7H.

index number, in relation to a quarter, means the All Groups

Consumer Price Index number, being the weighted average of the 8

capital cities, published by the Australian Statistician in respect of

that quarter.

population factor, for a financial year, has the meaning given by

section 7J.

State includes the Australian Capital Territory and the Northern

Territory.

7D Grants of financial assistance

(1) The Minister may, by notifiable instrument, determine that a

specified amount is to be paid by the Commonwealth to a specified

State for the purpose of making a grant of financial assistance in

relation to dental services.

Schedule 9 Dental services

Budget Savings (Omnibus) Bill 2016

No. , 2016

(2) The Minister must not make a determination under subsection (1)

of this section in relation to a State unless a subsection 7E(1)

agreement between the Commonwealth and the State is in effect.

(3) In making a determination under subsection (1) of this section in

relation to a State, the Minister must have regard to the

subsection 7E(1) agreement between the Commonwealth and the

State.

Transitional

(4) A determination under subsection (1) does not apply to dental

services rendered before 1 January 2017.

7E Agreements with the States about grants of financial assistance

relating to dental services

(1) The Commonwealth may enter into a written agreement with a

State in relation to grants of financial assistance to the State under

subsection 7D(1).

(2) An agreement under subsection (1) may be entered into by the

Prime Minister on behalf of the Commonwealth.

7F Terms and conditions

Scope

(1) This section applies to a grant of financial assistance to a State

under subsection 7D(1).

Terms and conditions

(2) The terms and conditions on which that financial assistance is

granted are:

(a) the terms and conditions set out in the subsection 7E(1)

agreement between the Commonwealth and the State; and

(b) such other terms and conditions (if any) as are set out in a

determination made under subsection (3).

(3) The Minister may, by legislative instrument, determine one or

more terms or conditions for the purposes of paragraph (2)(b).

Dental services Schedule 9

No. , 2016

Budget Savings (Omnibus) Bill 2016

7G Financial assistance cap

(1) The total amount of financial assistance granted by the

Commonwealth under subsection 7D(1) in relation to dental

services rendered in a financial year must not exceed the financial

assistance cap for that financial year.

Financial assistance cap--2016-17

(2) For the purposes of this section, the financial assistance cap for

the financial year beginning on 1 July 2016 is:

(a) $175,000,000; or

(b) if a lesser amount is determined under subsection (3)--that

lesser amount.

(3) The Minister may, by legislative instrument, determine an amount

for the purposes of paragraph (2)(b).

Financial assistance cap--2017-18

(4) For the purposes of this section, the financial assistance cap for

the financial year beginning on 1 July 2017 is $415,632,000.

Financial assistance cap--2018-19

(5) For the purposes of this section, the financial assistance cap for

the financial year beginning on 1 July 2018 is $420,224,000.

Financial assistance cap--2019-20 and later financial years

(6) For the purposes of this section, the financial assistance cap for:

(a) the financial year beginning on 1 July 2019; or

(b) a later financial year;

is the amount calculated using the formula:

Previous financial assistance cap

Indexation factor

Population factor



where:

indexation factor means the indexation factor for the financial

year.

population factor means the population factor for the financial

year.

Schedule 9 Dental services

Budget Savings (Omnibus) Bill 2016

No. , 2016

previous financial assistance cap means the financial assistance

cap for the previous financial year.

7H Indexation factor

(1) For the purposes of this Part, the indexation factor for a financial

year is the number calculated, to 3 decimal places, using the

formula:

Index number for the reference December quarter

Index number for the base December quarter

where:

base December quarter means the last December quarter before

the reference December quarter.

reference December quarter means the last December quarter

before the financial year.

(2) If the number calculated under subsection (1) for a financial year

would, if it were calculated to 4 decimal places, end with a number

greater than 4, the number so calculated is increased by 0.001.

(3) Subject to subsection (4), if (whether before or after the

commencement of this section) the Australian Statistician has

published or publishes an index number in respect of a quarter in

substitution for an index number previously published in respect of

that quarter, the publication of the later index number must be

disregarded for the purposes of this section.

(4) If (whether before or after the commencement of this section) the

Australian Statistician has changed or changes the index reference

period for the Consumer Price Index, then, for the purposes of the

application of this section after the change took place or takes

place, regard must only be had to the index number published in

terms of the new index reference period.

7J Population factor

(1) For the purposes of this Part, the population factor for a financial

year is the number calculated using the formula:

Dental services Schedule 9

No. , 2016

Budget Savings (Omnibus) Bill 2016

100

Population growth percentage

100



where:

population growth percentage means the population growth

percentage for the financial year.

Population growth percentage

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

(a) before the start of a financial year, the Australian Statistician

publishes the estimated resident population of Australia as at

the 31 December last preceding the financial year; and

(b) the relevant document includes a statement to the effect that

Australia's population grew by a particular percentage during

the year ending on that 31 December;

the number of that percentage is the population growth percentage

for the financial year.

Example: The relevant document includes a statement to the effect that

Australia's population grew by 1.3% during the year ending on that

31 December. The number of that percentage is 1.3.

(3) If (whether before or after the commencement of this section) the

Australian Statistician:

(a) on a particular occasion, publishes the estimated resident

population of Australia as at a 31 December; and

(b) on a later occasion, publishes the estimated resident

population of Australia as at that 31 December;

the publication on the later occasion must be disregarded for the

purposes of this section.

7K Appropriation of the Consolidated Revenue Fund

The Consolidated Revenue Fund is appropriated for the purposes

of making grants of financial assistance under subsection 7D(1).

7L Review of operation of Part

(1) The Minister must cause an independent review of the operation of

this Part to be conducted before the end of 31 December 2020.

Schedule 9 Dental services

Budget Savings (Omnibus) Bill 2016

No. , 2016

(2) The review must be conducted by a panel that comprises not less

than 5 persons, including the following:

(a) a person occupying the position of Commonwealth Chief

Medical Officer;

(b) a person nominated by the Australian Dental Association;

Australia;

(d) 2 other persons nominated by the Minister, at least one of

whom must have qualifications in medicine or dentistry.

(3) The panel must give the Minister a report of the review.

(4) The Minister must cause a copy of the report of the review to be

tabled in each House of the Parliament within 15 sitting days of

that House after the day the report is given to the Minister.

6 Part 2 (heading)

Repeal the heading, substitute:

Part 2--Entitlement to dental benefits for dental

services rendered before 1 January 2017

7 Section 8

Omit:

•

This Part creates a basic entitlement to dental benefit in

respect of a dental service.

substitute:

•

This Part creates a basic entitlement to dental benefit in

respect of a dental service rendered before 1 January 2017.

8 Subsection 9(1)

After "patient", insert "before 1 January 2017".

9 Part 3 (heading)

Repeal the heading, substitute:

Dental services Schedule 9

No. , 2016

Budget Savings (Omnibus) Bill 2016

Part 3--Payment of dental benefits for dental

services rendered before 1 January 2017

10 Section 10

Omit:

•

This Part deals with the payment of dental benefit in respect of

a dental service.

substitute:

•

This Part deals with the payment of dental benefit in respect of

a dental service rendered before 1 January 2017.

11 Subsection 11(1)

After "a dental service", insert "rendered before 1 January 2017".

12 Subsection 20B(1)

After "(the practitioner)", insert "before 1 January 2017".

13 After subsection 20B(3)

Insert:

(3A) A direction under subsection (1) is taken to have been revoked at

the end of 31 December 2016 (even if the direction had not come

into effect by the end of that date).

14 Subsection 20D(1)

After "(the practitioner)", insert "before 1 January 2017".

15 After subsection 20D(4)

Insert:

(4A) A direction under subsection (1) is taken to have been revoked at

the end of 31 December 2016 (even if the direction had not come

into effect by the end of that date).

Schedule 9 Dental services

Budget Savings (Omnibus) Bill 2016

No. , 2016

16 Part 4 (heading)

Repeal the heading, substitute:

Part 4--Dental benefits vouchers issued before

1 January 2017

17 Section 22

After:

•

This Part sets up a framework for the issuing of vouchers in

relation to a dental service to persons who qualify for a

voucher.

insert:

•

A voucher cannot be issued for a calendar year beginning after

31 December 2016.

18 Section 22

Omit:

•

Unless the Dental Benefit Rules provide otherwise:

(a)

only one voucher may be issued in relation to a dental

service in respect of a person for a calendar year; and

(b)

a voucher for a calendar year remains in effect until the

end of the calendar year.

substitute:

•

Unless the Dental Benefit Rules provide otherwise only one

voucher may be issued in relation to a dental service in respect

of a person for a calendar year.

•

A voucher for the calendar year beginning on 1 January 2016

ceases to have effect at the end of 31 December 2016.

Dental services Schedule 9

No. , 2016

Budget Savings (Omnibus) Bill 2016

19 After section 22

Insert:

22A Calendar year

In this Part:

calendar year does not include a calendar year beginning after

31 December 2016.

20 Paragraph 34(3)(a)

After "this Act", insert "(other than Part 1A)".

21 Section 47

Omit:

•

Division 4 of this Part deals with the recovery of amounts paid

under this Act.

substitute:

•

Division 4 of this Part deals with the recovery of amounts paid

under this Act (other than Part 1A).

22 Division 4 of Part 6 (heading)

Repeal the heading, substitute:

Division 4--Recovery of amounts paid under this Act

(other than Part 1A)

23 Section 68

Repeal the section.

Human Services (Medicare) Act 1973

24 Subsection 3A(3) (at the end of the definition of dental

service)

Add "(other than Part 1A)".

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

Schedule 10--Newly arrived resident's waiting

period

Part 1--Social security amendments

Social Security Act 1991

1 Subsection 7(1) (definition of designated temporary entry

permit)

Repeal the definition.

2 Subsection 7(1) (definitions of permanent visa, special

category visa, temporary visa and visa)

Repeal the definitions, substitute:

permanent visa, special category visa and visa have the same

meaning as in the Migration Act 1958.

3 Subsection 7(6)

Repeal the subsection, substitute:

(6) A person has a qualifying residence exemption for a social

security pension (other than carer payment) or a social security

benefit (other than youth allowance, austudy payment, newstart

allowance, sickness allowance, special benefit or partner

allowance) if, and only if, the person:

(a) resides in Australia; and

(b) is either:

(i) a refugee; or

(ii) a former refugee.

4 Paragraph 7(6AA)(b)

Before "was", insert "except in relation to pension PP (single), benefit

PP (partnered), youth allowance, austudy payment, newstart allowance,

sickness allowance, partner allowance, carer payment, mobility

allowance, a seniors health card or a health care card--".

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

5 Paragraph 7(6AA)(f)

Before "holds", insert "in any case--".

6 Subsection 23(1) (definition of designated temporary entry

permit)

Repeal the definition.

7 Subsection 23(1) (paragraph (b) of the definition of newly

arrived resident's waiting period)

Repeal the paragraph.

8 Subsection 23(1) (definition of temporary visa)

Repeal the definition.

9 Subsection 23(1) (paragraph (ab) of the definition of waiting

period)

Repeal the paragraph.

10 Paragraph 201AA(1)(a)

Repeal the paragraph, substitute:

(a) has entered Australia; and

11 At the end of subsection 201AA(2)

Add:

Note:

For qualifying residence exemption in relation to carer payment, see

paragraph 7(6AA)(f).

12 Subsection 201AA(5)

Repeal the subsection, substitute:

(5) Subsection (1) does not apply to a person if, at the time the person

made the claim for a carer payment, the person holds a visa that is

in a class of visas determined in an instrument under

subsection (5B).

(5A) Subsection (1) does not apply to a person if:

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a carer payment; or

(b) the following apply:

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(i) before the person made the claim for a carer payment,

the person was a family member of another person at

the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for a carer payment or,

if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for a carer payment.

(5B) The Minister may, by legislative instrument, determine a class of

visas for the purposes of subsection (5). The class must not be a

class covered by paragraph 7(6AA)(f).

13 Subsection 201AA(6)

Insert:

family member has the meaning given by subsection 7(6D).

former refugee has the meaning given by subsection 7(1).

refugee has the meaning given by subsection 7(6B).

14 Subparagraphs 408BA(2)(d)(i) and (ia)

Repeal the subparagraphs.

15 Subparagraph 408BA(2)(d)(ib)

Omit "if the woman entered Australia on or after the commencement

day--".

16 Subsection 408BA(6)

Repeal the subsection.

17 After subparagraph 500(1)(d)(iii)

Insert:

; (iv) the person satisfies subsection (3).

18 Subsection 500(1) (note 1)

Repeal the note, substitute:

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

Note 1:

For Australian resident, see section 7. For qualifying residence

exemption in relation to parenting payment, see subsection 7(6) and

paragraph 7(6AA)(f).

19 At the end of section 500

Add:

(3) A person satisfies this subsection if the following apply:

(a) before the person made the claim for parenting payment, the

person was a family member of another person at the time the

other person became a refugee;

(b) the person is a family member of that other person at the time

the person made the claim for parenting payment or, if that

other person has died, the person was a family member of

that other person immediately before that other person died.

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D);

and

(b) refugee has the meaning given by subsection 7(6B).

20 Paragraph 549D(1)(a)

Omit "on or after 4 March 1997".

21 Subsection 549D(2) (note)

Repeal the note, substitute:

Note:

For qualifying residence exemption in relation to youth allowance,

see paragraph 7(6AA)(f).

22 Subsections 549D(3) to (5)

Repeal the subsections.

23 At the end of section 549D

Add:

Exception--other

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a youth allowance; or

(b) the following apply:

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(i) before the person made the claim for a youth allowance,

the person was a family member of another person at

the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for a youth allowance

or, if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for a youth allowance.

(8) For the purposes of subsection (7):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

24 Paragraph 549E(a)

Omit "on which the person first entered Australia on or after 4 March

1997", substitute "the person first became an Australian resident".

25 Paragraph 575D(1)(a)

Omit "on or after 4 March 1997".

26 Subsection 575D(2) (note)

Repeal the note, substitute:

Note:

For qualifying residence exemption in relation to austudy payment,

see paragraph 7(6AA)(f).

27 Subsections 575D(3) and (4)

Repeal the subsections, substitute:

Exception--other

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for an austudy payment; or

(b) the following apply:

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

(i) before the person made the claim for an austudy

payment, the person was a family member of another

person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for an austudy payment

or, if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for an austudy payment.

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

28 Paragraph 575E(a)

Omit "on which the person first entered Australia", substitute "the

person first became an Australian resident".

29 Paragraph 623A(1)(a)

Omit "on or after 1 January 1993".

30 Subsection 623A(2) (note)

Repeal the note, substitute:

Note:

For qualifying residence exemption in relation to newstart allowance,

see paragraph 7(6AA)(f).

31 Subsections 623A(3) to (6)

Repeal the subsections.

32 At the end of section 623A

Add:

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a newstart allowance; or

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(b) the following apply:

(i) before the person made the claim for a newstart

allowance, the person was a family member of another

person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for a newstart allowance

or, if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for a newstart allowance.

(9) For the purposes of subsection (8):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

33 Subsection 623B(2)

Repeal the subsection.

34 Subsection 623B(3)

Omit "If subsection (2) does not apply, the", substitute "The".

35 Subsection 623B(3) (note)

Repeal the note.

36 Paragraph 696B(1)(a)

Omit "on or after 1 January 1993".

37 Subsection 696B(2) (note)

Repeal the note, substitute:

Note:

For qualifying residence exemption in relation to sickness allowance,

see paragraph 7(6AA)(f).

38 Subsections 696B(3) to (6)

Repeal the subsections, substitute:

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for sickness allowance; or

(b) the following apply:

(i) before the person made the claim for sickness

allowance, the person was a family member of another

person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for sickness allowance

or, if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for sickness allowance.

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

39 Subsection 696C(2)

Repeal the subsection.

40 Subsection 696C(3)

Omit "If subsection (2) does not apply, the", substitute "The".

41 Subsection 696C(3) (note)

Repeal the note.

42 At the end of subsection 739A(7) (before the note)

Add "after the person first entered Australia".

43 Subsection 739A(8)

Repeal the subsection, substitute:

(8) Neither subsection (1) nor (2) applies to a person if:

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a special benefit; or

(b) the following apply:

(i) before the person made the claim for a special benefit,

the person was a family member of another person at

the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for a special benefit or,

if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for a special benefit.

(9) For the purposes of subsection (8):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

44 Paragraph 771HNA(1)(a)

Omit "on or after 1 January 1993".

45 Subsection 771HNA(2) (note)

Repeal the note, substitute:

Note:

For qualifying residence exemption in relation to partner allowance,

see paragraph 7(6AA)(f).

46 Subsections 771HNA(4) and (5)

Repeal the subsections, substitute:

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a partner allowance; or

(b) the following apply:

(i) before the person made the claim for a partner

allowance, the person was a family member of another

person at the time the other person became a refugee;

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

(ii) the person is a family member of that other person at the

time the person made the claim for a partner allowance

or, if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for a partner allowance.

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

47 Subsection 771HNB(3) (note)

Repeal the note.

48 Subsection 1039AA(1)

Omit "subsections (2), (3) and (4), a person who, on or after the

commencement of this subsection", substitute "this section, a person

who".

49 Subsection 1039AA(2) (note)

Repeal the note, substitute:

Note:

For qualifying residence exemption in relation to mobility allowance,

see paragraph 7(6AA)(f).

50 Subsection 1039AA(3)

Repeal the subsection.

51 Subsection 1039AA(5)

Repeal the subsection, substitute:

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a mobility allowance; or

(b) the following apply:

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(i) before the person made the claim for a mobility

allowance, the person was a family member of another

person at the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for a mobility allowance

or, if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for a mobility allowance.

(6) For the purposes of subsection (5):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

52 Paragraph 1061PU(1)(a)

Omit "on or after 4 March 1997".

53 Subsection 1061PU(2) (note)

Repeal the note, substitute:

Note:

For qualifying residence exemption in relation to austudy payment,

see paragraph 7(6AA)(f).

54 Subsections 1061PU(3) and (4)

Repeal the subsections, substitute:

Exception--other

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a pensioner education supplement;

(b) the following apply:

(i) before the person made the claim for a pensioner

education supplement, the person was a family member

of another person at the time the other person became a

refugee;

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

(ii) the person is a family member of that other person at the

time the person made the claim for a pensioner

education supplement or, if that other person has died,

the person was a family member of that other person

immediately before that other person died; or

made the claim for a pensioner education supplement.

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

55 Paragraph 1061PV(a)

Omit "on which the person first entered Australia", substitute "the

person first became an Australian resident".

56 Subsection 1061ZH(1)

Omit "subsections (2), (3) and (4)", substitute "this section".

57 Paragraph 1061ZH(1)(a)

Omit "on or after 1 February 2000".

58 At the end of subsection 1061ZH(2)

Add:

Note:

For qualifying residence exemption in relation to a seniors health

card, see paragraph 7(6AA)(f).

59 Subsections 1061ZH(3) to (5)

Repeal the subsections, substitute:

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a seniors health card; or

(b) the following apply:

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(i) before the person made the claim for a seniors health

card, the person was a family member of another person

at the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for a seniors health card

or, if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for a seniors health card.

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

60 Subsection 1061ZQ(1)

Omit "subsection (2)", substitute "this section".

61 Subsection 1061ZQ(1)

Omit "on or after 1 February 2000".

62 Paragraph 1061ZQ(2)(b)

Repeal the paragraph.

63 At the end of subsection 1061ZQ(2)

Add:

Note:

For paragraph (a): for qualifying residence exemption in relation to a

health care card, see paragraph 7(6AA)(f).

64 At the end of section 1061ZQ

Add:

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

(a) the person is a refugee, or a former refugee, at the time the

person made the claim for a health care card; or

(b) the following apply:

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

(i) before the person made the claim for a health care card,

the person was a family member of another person at

the time the other person became a refugee;

(ii) the person is a family member of that other person at the

time the person made the claim for a health care card or,

if that other person has died, the person was a family

member of that other person immediately before that

other person died; or

made the claim for a health care card.

(4) For the purposes of subsection (3):

(a) family member has the meaning given by subsection 7(6D);

and

(b) former refugee has the meaning given by subsection 7(1);

and

65 Section 1061ZR

Omit "If", substitute "(1) Subject to subsection (2), if".

66 At the end of section 1061ZR

Add:

(2) If:

(a) a person is subject to a newly arrived resident's waiting

period; and

(b) before, on or after the commencement of this subsection, the

person applied for a visa that is in a class of visas determined

by the Minister for the purposes of paragraph 739A(3)(b);

the waiting period:

and

(d) ends when the person has been in Australia for a period of, or

for periods totalling, 104 weeks after that day.

67 Clause 121 of Schedule 1A

Repeal the clause.

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

68 Application provision

--qualifying residence exemption

The amendments of section 7 of the Social Security Act 1991 made by

this Schedule apply in relation to:

(a) claims for a social security pension or a social security

benefit made on or after the commencement of this item; and

(b) claims for a mobility allowance or a pensioner education

supplement made on or after that commencement; and

commencement; and

(d) claims for a health care card made on or after that

commencement.

69 Application and saving provisions

--carer payment

(1)

Paragraph 201AA(1)(a) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Subsections 201AA(5) to (5B) of the Social Security Act 1991, as

substituted by this Schedule, apply in relation to claims for a carer

payment made on or after the commencement of this item.

(3)

Subsection 201AA(5) of the Social Security Act 1991, as in force

immediately before the commencement of this item, continues to apply

on and after that commencement in relation to claims for a carer

payment made before that commencement.

(4)

A determination in force under paragraph 201AA(5)(d) of the Social

Security Act 1991 immediately before the commencement of this item

has effect on and after that commencement as if it were a determination

in force under subsection 201AA(5B) of that Act.

70 Application provision

--widow allowance

The amendments of section 408BA of the Social Security Act 1991

made by this Schedule apply in relation to claims for widow allowance

made on or after the commencement of this item.

71 Application provision

--parenting payment

The amendments of section 500 of the Social Security Act 1991 made

by this Schedule apply in relation to claims for parenting payment made

on or after the commencement of this item.

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

72 Application and saving provisions

--youth allowance

(1)

Paragraph 549D(1)(a) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Subsections 549D(3) to (5) of the Social Security Act 1991, as in force

immediately before the commencement of this item, continue to apply

on and after that commencement in relation to claims for a youth

allowance made before that commencement.

(3)

Subsections 549D(7) and (8) of the Social Security Act 1991, as added

by this Schedule, apply in relation to claims for a youth allowance made

on or after the commencement of this item.

(4)

The amendment of paragraph 549E(a) of the Social Security Act 1991

made by this Schedule applies in relation to claims for a youth

allowance made on or after the commencement of this item.

73 Application and saving provisions

--austudy payment

(1)

Paragraph 575D(1)(a) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Subsections 575D(3) and (4) of the Social Security Act 1991, as

substituted by this Schedule, apply in relation to claims for an austudy

payment made on or after the commencement of this item.

(3)

Subsections 575D(3) and (4) of the Social Security Act 1991, as in force

immediately before the commencement of this item, continue to apply

on and after that commencement in relation to claims for an austudy

payment made before that commencement.

(4)

The amendment of paragraph 575E(a) of the Social Security Act 1991

made by this Schedule applies in relation to claims for an austudy

payment made on or after the commencement of this item.

74 Application and saving provisions

--newstart allowance

(1)

Paragraph 623A(1)(a) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(2)

Subsections 623A(3) to (6) and 623B(2) of the Social Security Act

1991, as in force immediately before the commencement of this item,

continue to apply on and after that commencement in relation to claims

for a newstart allowance made before that commencement.

(3)

Subsections 623A(8) and (9) of the Social Security Act 1991, as added

by this Schedule, apply in relation to claims for a newstart allowance

made on or after the commencement of this item.

75 Application and saving provisions

--sickness allowance

(1)

Paragraph 696B(1)(a) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Subsections 696B(3) and (4) of the Social Security Act 1991, as

substituted by this Schedule, apply in relation to claims for sickness

allowance made on or after the commencement of this item.

(3)

Subsections 696B(3) to (6) and 696C(2) of the Social Security Act 1991,

as in force immediately before the commencement of this item,

continue to apply on and after that commencement in relation to claims

for sickness allowance made before that commencement.

76 Application provision

--special benefit

The amendments of section 739A of the Social Security Act 1991 made

by this Schedule apply in relation to claims for a special benefit made

on or after the commencement of this item.

77 Application and saving provisions

--partner allowance

(1)

Paragraph 771HNA(1)(a) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Subsections 771HNA(3) and (4) of the Social Security Act 1991, as

substituted by this Schedule, apply in relation to claims for a partner

allowance made on or after the commencement of this item.

(3)

Subsections 771HNA(4) and (5) of the Social Security Act 1991, as in

force immediately before the commencement of this item, continue to

apply on and after that commencement in relation to claims for a partner

allowance made before that commencement.

Schedule 10 Newly arrived resident's waiting period

Part 1 Social security amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

78 Application and saving provisions

--mobility allowance

(1)

Subsection 1039AA(1) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Subsections 1039AA(3) and (5) of the Social Security Act 1991, as in

force immediately before the commencement of this item, continue to

apply on and after that commencement in relation to claims for a

mobility allowance made before that commencement.

(3)

Subsections 1039AA(5) and (6) of the Social Security Act 1991, as

substituted by this Schedule, apply in relation to claims for a mobility

allowance made on or after the commencement of this item.

79 Application and saving provisions

--pensioner education

supplement

(1)

Paragraph 1061PU(1)(a) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Subsections 1061PU(3) and (4) of the Social Security Act 1991, as

substituted by this Schedule, apply in relation to claims for a pensioner

education supplement made on or after the commencement of this item.

(3)

Subsections 1061PU(3) and (4) of the Social Security Act 1991, as in

force immediately before the commencement of this item, continue to

apply on and after that commencement in relation to claims for a

pensioner education supplement made before that commencement.

(4)

The amendment of paragraph 1061PV(a) of the Social Security Act

1991 made by this Schedule applies in relation to claims for a pensioner

education supplement made on or after the commencement of this item.

80 Application and saving provisions

--seniors health card

(1)

Paragraph 1061ZH(1)(a) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Subsections 1061ZH(3) and (4) of the Social Security Act 1991, as

substituted by this Schedule, apply in relation to claims for a seniors

health card made on or after the commencement of this item.

Newly arrived resident's waiting period Schedule 10

Social security amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(3)

Subsections 1061ZH(3) to (5) of the Social Security Act 1991, as in

force immediately before the commencement of this item, continue to

apply on and after that commencement in relation to claims for a seniors

health card made before that commencement.

81 Application and saving provisions

--health care card

(1)

Subsection 1061ZQ(1) of the Social Security Act 1991 applies on and

after the commencement of this item in relation to entries to Australia

occurring before, on or after that commencement.

(2)

Paragraph 1061ZQ(2)(b) of the Social Security Act 1991, as in force

immediately before the commencement of this item, continues to apply

on and after that commencement in relation to claims for a health care

card made before that commencement.

(3)

Subsections 1061ZQ(3) and (4) of the Social Security Act 1991, as

added by this Schedule, apply in relation to claims for a health care card

made on or after the commencement of this item.

(4)

Section 1061ZR of the Social Security Act 1991, as amended by this

Schedule, applies in relation to claims for a health care card made on or

after the commencement of this item.

Social Security Legislation Amendment (Newly Arrived

Resident's Waiting Periods and Other Measures)

Act 1997

82 Section 3

Repeal the section.

83 Saving provision

Despite the repeal of section 3 of the Social Security Legislation

Amendment (Newly Arrived Resident's Waiting Periods and Other

Measures) Act 1997 made by this Schedule, that section, as in force

immediately before the commencement of this item, continues to apply

on and after that commencement in relation to:

(a) claims for a social security payment made before that

commencement; and

(b) claims for a seniors health card made before that

commencement; and

Newly arrived resident's waiting period Schedule 10

Farm household support amendments Part 2

No. , 2016

Budget Savings (Omnibus) Bill 2016

Part 2--Farm household support amendments

Farm Household Support Act 2014

84 Subsection 5(1)

Insert:

eligible family member has the same meaning as family member

has for the purposes of subsection 7(6AA) of the Social Security

Act.

former refugee has the meaning given by subsection 7(1) of the

Social Security Act.

refugee has the meaning given by subsection 7(6B) of the Social

Security Act.

85 Paragraphs 42(2)(a), (b), (d), (e), (f) and (g)

Repeal the paragraphs.

86 At the end of subsection 42(2)

Add:

; (i) a person who is a refugee, or a former refugee, at the time the

person made the claim for farm household allowance;

(j) a person in relation to whom the following apply:

(i) before the person made the claim for farm household

allowance, the person was an eligible family member of

another person at the time the other person became a

refugee;

(ii) the person is an eligible family member of that other

person at the time the person made the claim for farm

household allowance or, if that other person has died,

the person was an eligible family member of that other

person immediately before that other person died;

(k) a person who is an Australian citizen at the time the person

made the claim for farm household allowance.

87 Subsection 43(1)

Omit "(1)".

Schedule 10 Newly arrived resident's waiting period

Part 2 Farm household support amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

88 Paragraph 43(1)(b)

Omit "(subject to subsection (2))".

89 Subsection 43(2)

Repeal the subsection.

90 Application provision

The amendments of sections 42 and 43 of the Farm Household Support

Act 2014 made by this Schedule apply in relation to claims for farm

household allowance made on or after the commencement of this item.

Student start-up scholarships Schedule 11

No. , 2016

Budget Savings (Omnibus) Bill 2016

Schedule 11--Student start-up scholarships

Social Security Act 1991

1 Section 19AA (definition of scholarship-entitled person)

Repeal the definition.

2 Subsection 23(1) (definition of scholarship-entitled person)

Repeal the definition.

3 Division 1 of Part 2.11B

Repeal the Division.

4 Subsection 1061ZVBC(1)

Omit "(1)".

5 Subparagraph 1061ZVBC(1)(a)(iii)

Repeal the subparagraph.

6 Subsection 1061ZVBC(2)

Repeal the subsection.

7 Section 1190 (table item 68)

Repeal the item.

8 Subsection 1191(1) (table item 40)

Repeal the item.

9 Subsection 1192(8A)

Repeal the subsection.

10 Subsection 1222(2) (table item 4D, column 2)

After "of", insert "relocation".

11 Section 1223ABE (heading)

Repeal the heading, substitute:

Schedule 11 Student start-up scholarships

Budget Savings (Omnibus) Bill 2016

No. , 2016

1223ABE Debts in respect of relocation scholarship payments

12 Paragraphs 1223ABE(1)(a), (2)(a) and (3)(a)

Omit "a student start-up scholarship payment or".

Social Security (Administration) Act 1999

13 Section 12H (heading)

Repeal the heading, substitute:

12H Relocation scholarship payment

14 Section 12H

Omit "a student start-up scholarship payment or".

15 Subsection 47(1) (paragraph (ba) of the definition of lump

sum benefit)

Repeal the paragraph.

16 Section 47DA (heading)

Repeal the heading, substitute:

47DA Relocation scholarship payments

17 Paragraph 47DA(a)

Omit "a student start-up scholarship payment, or a relocation

scholarship payment,", substitute "a relocation scholarship payment".

18 Subdivision DC of Division 5 of Part 3B (heading)

Repeal the heading, substitute:

Subdivision DC--Relocation scholarship payments

19 Section 123XPF

Repeal the section.

Student start-up scholarships Schedule 11

No. , 2016

Budget Savings (Omnibus) Bill 2016

Student Assistance Act 1973

20 Subsection 3(1) (definition of scholarship-entitled person)

Repeal the definition.

21 Subsection 7D(1)

Omit "(1)".

22 Subparagraph 7D(1)(a)(iii)

Repeal the subparagraph.

23 Subsection 7D(2)

Repeal the subsection.

24 Application and saving provisions

(1)

Despite the repeal of Division 1 of Part 2.11B of the Social Security Act

1991 made by this Schedule, that Division, as in force immediately

before the commencement of this item, continues to apply on and after

that commencement in relation to a qualification time occurring before

that commencement.

(2)

The amendments of section 1061ZVBC of the Social Security Act 1991

made by this Schedule apply in relation to a qualification period starting

on or after the day this item commences.

(3)

Despite the amendments of section 1223ABE of the Social Security Act

1991 made by this Schedule, that section, as in force immediately

before the commencement of this item, continues to apply on and after

that commencement in relation to a student start-up scholarship

payment made before, on or after that commencement.

(4)

Despite the amendments of section 12H of the Social Security

(Administration) Act 1999 made by this Schedule, that section, as in

force immediately before the commencement of this item, continues to

apply on and after that commencement in relation to a student start-up

scholarship payment for which a person was qualified before that

commencement.

(5)

Despite the amendments of sections 47 and 47DA of the Social Security

(Administration) Act 1999 made by this Schedule, those sections, as in

force immediately before the commencement of this item, continue to

Schedule 11 Student start-up scholarships

Budget Savings (Omnibus) Bill 2016

No. , 2016

apply on and after that commencement in relation to a student start-up

scholarship payment made after that commencement for which a person

was qualified before that commencement.

(6)

Despite the amendments made by this Schedule, Part 3B of the Social

Security (Administration) Act 1999, as in force immediately before the

commencement of this item, continues to apply on and after that

commencement in relation to a student start-up scholarship payment,

whether it is payable before, on or after that commencement.

(7)

The amendments of section 7D of the Student Assistance Act 1973

made by this Schedule apply in relation to a qualification period starting

on or after the day this item commences.

Interest charge Schedule 12

Amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

Schedule 12--Interest charge

Part 1--Amendments

A New Tax System (Family Assistance) (Administration) Act

1999

1 After paragraph 77(1)(e)

Insert:

(ea) the effect of sections 78 and 78A; and

2 Subsections 77(3) and (4)

Repeal the subsections, substitute:

(3) The Secretary may give more than one notice under subsection (1)

in relation to a person and a debt of the person.

3 Sections 78 to 79A

Repeal the sections, substitute:

78 Interest charge--no repayment arrangement in effect

(1) If:

(a) a notice is given to a person under subsection 77(1) in

relation to a debt; and

(b) an amount (the unpaid amount) of the debt remains unpaid

at the end of the day (the due day) on which the debt is due to

be paid; and

under section 91 in relation to the debt;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

Note:

For exemptions, see sections 78D and 78E.

(2) The period starts at the beginning of the day after the due day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

Schedule 12 Interest charge

Part 1 Amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

(i) the unpaid amount;

(ii) interest charge on any of the unpaid amount;

(b) the day before the first day, after the due day, on which the

person makes a payment under an arrangement under

section 91 in relation to the debt.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the unpaid amount;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 78C.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 78B.

78A Interest charge--failure to comply with or termination of

repayment arrangement

(1) If:

(a) an arrangement is in effect under section 91 in relation to a

person and a debt; and

(b) the person fails to make a payment under the arrangement;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

Note:

For exemptions, see sections 78D and 78E.

(2) The period starts at the beginning of the day after the day (the due

day) on which the payment was required to be made under the

arrangement and ends at the end of the earliest of the following

days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

Interest charge Schedule 12

Amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(b) the day before the first day, after the due day, on which the

person has paid all the payments that have so far become due

and payable under the arrangement;

section 91.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 78C.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 78B.

Repayment arrangement is terminated

(4) If:

(a) an arrangement is in effect under section 91 in relation to a

person and a debt; and

(b) the arrangement is then terminated under section 91 on a day

(the termination day);

then:

14th day after the termination day:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt; and

(d) if, at the end of that 14th day, any of those amounts remains

unpaid, the person is liable to pay, by way of penalty, interest

charge, worked out under subsection (6), for each day in the

period described in subsection (5).

Note:

For exemptions, see sections 78D and 78E.

(5) The period starts at the beginning of the day after that 14th day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

Schedule 12 Interest charge

Part 1 Amendments

Budget Savings (Omnibus) Bill 2016

No. , 2016

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after that 14th day, on which the

person makes a payment under another arrangement under

section 91 in relation to the debt.

(6) The interest charge for a day in the period described in

subsection (5) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 78C.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 78B.

78B Other rules for interest charge

When interest charge is due and payable

(1) The interest charge under section 78 or 78A for a day is due and

payable to the Commonwealth at the end of that day.

Interest charge is a debt

(2) The interest charge under section 78 or 78A for a day is a debt due

to the Commonwealth by the person.

Provisions that do not apply to interest charge debt

(3) Subsection 77(1) does not apply in relation to the debt referred to

in subsection (2) of this section.

78C What is the interest charge rate?

(1) For the purposes of sections 78 and 78A, the interest charge rate

for a day is the rate worked out by adding 7 percentage points to

the base interest rate for that day, and dividing that total by the

number of days in the calendar year.

Interest charge Schedule 12

Amendments Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

(2) The base interest rate for a day depends on which quarter of the

year the day is in. For each day in a quarter in column 1 of the

table, it is the monthly average yield of 90-day Bank Accepted

Bills published by the Reserve Bank of Australia for the month in

column 2 of the table.

Base interest rate

Item

Column 1

For days in this quarter:

Column 2

the monthly average yield of 90-day Bank

Accepted Bills for this month applies:

1 January to 31 March

the preceding November

1 April to 30 June

the preceding February

1 July to 30 September

the preceding May

1 October to 31 December

the preceding August

(3) If the monthly average yield of 90-day Bank Accepted Bills for a

particular month in column 2 of the table in subsection (2) is not

published by the Reserve Bank of Australia before the beginning of

the relevant quarter, assume that it is the same as the last monthly

average yield of 90-day Bank Accepted Bills published by the

Reserve Bank of Australia before that month.

(4) The base interest rate must be rounded to the second decimal place

(rounding .005 upwards).

78D Exemption from interest charge--general

(1) A person is not liable to pay interest charge under section 78 or

78A if on the day before the start of the period in respect of which

the person would otherwise have been liable to pay that charge:

(a) the person is receiving instalments of family tax benefit; or

(b) the person is receiving a social security payment; or

under the Veterans' Entitlements Act 1986; or

(d) the person is receiving instalments under the ABSTUDY

scheme (also known as the Aboriginal Study Assistance

Scheme) that includes an amount identified as living

allowance; or

(e) the person is receiving instalments under the Assistance for

Isolated Children Scheme; or

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(f) the circumstances determined in an instrument under

subsection (2) apply in relation to the person.

(2) The Minister may, by legislative instrument, determine

circumstances for the purposes of paragraph (1)(f).

78E Exemption from interest charge--Secretary's determination

(1) The Secretary may determine that interest charge is not payable, or

is not payable in respect of a particular period, by a person on the

outstanding amount of a debt.

(2) The Secretary may make a determination under this section in

circumstances that include (but are not limited to) the Secretary

being satisfied that the person has a reasonable excuse for:

(a) failing to enter into an arrangement under section 91 to pay

the outstanding amount of the debt; or

(b) having entered an arrangement, failing to make a payment in

accordance with that arrangement.

(3) The determination may relate to a period before, or to a period that

includes a period before, the making of the determination.

(4) The determination may be expressed to be subject to the person

complying with one or more specified conditions.

(5) If the determination is expressed to be subject to the person

complying with one or more specified conditions, the Secretary

must give written notice of the determination to the person as soon

as practicable after the determination is made.

(6) If:

(a) the determination is expressed to be subject to the person

complying with one or more specified conditions; and

(b) the person contravenes a condition or conditions without

reasonable excuse;

the determination ceases to have effect from and including the day

on which the contravention or the earliest of the contraventions

occurred.

(7) The Secretary may cancel or vary the determination by written

notice given to the person.

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78F Guidelines on interest charge provisions

The Minister may, by legislative instrument, determine guidelines

relating to the operation of the provisions of this Division dealing

with interest charge.

4 Subsection 82(3) (paragraph (a) of the definition of debt)

Omit "78", substitute "78B".

5 After subsection 91(1A)

Insert:

(1B) If a payment is required to be made under an arrangement entered

into under subsection (1) or (1A) before the end of a particular day,

the payment must be made before the end of that day.

Paid Parental Leave Act 2010

6 Section 6

Repeal the following definitions:

(a) definition of date of the further debt notice;

(b) definition of date of the initial debt notice;

(d) definition of further debt notice.

7 Section 6

Insert:

interest charge rate: see section 177.

8 Section 6 (definition of interest exemption determination)

Repeal the definition.

9 Section 6 (definition of penalty interest rate)

Repeal the definition.

10 Section 164

Omit "An administrative charge of $50 is also payable if interest is

charged.".

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11 Section 165 (paragraph (a) of the note)

Omit "section 177", substitute "section 176".

12 Section 165 (paragraph (b) of the note)

Repeal the paragraph.

13 Section 173 (heading)

Repeal the heading, substitute:

173 Notices in respect of debt

14 Subsection 173(1) (heading)

Repeal the heading.

15 Paragraph 173(1)(a)

Omit "(the date of the initial debt notice)", substitute "(the date of the

notice)".

16 Paragraph 173(1)(e)

Omit "initial debt notice", substitute "notice".

17 After paragraph 173(1)(f)

Insert:

(fa) the effect of sections 174 and 175;

18 Subsection 173(2)

Omit "initial debt notice", substitute "notice".

19 Subsection 173(3)

Repeal the subsection, substitute:

Multiple notices

(3) The Secretary may give more than one notice under subsection (1)

in relation to a person and a debt of the person.

20 Sections 174 to 180

Repeal the sections, substitute:

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174 Interest charge--no debt payment arrangement in effect

(1) If:

(a) a notice is given to a person under subsection 173(1) in

relation to a debt; and

(b) an amount (the unpaid amount) of the debt remains unpaid

at the end of the day (the due day) on which the debt is due to

be paid; and

arrangement in effect in relation to the debt;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

Note:

For exemptions, see sections 178 and 179.

(2) The period starts at the beginning of the day after the due day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the unpaid amount;

(ii) interest charge on any of the unpaid amount;

(b) the day before the first day, after the due day, on which the

person makes a payment under a debt payment arrangement

in relation to the debt.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the unpaid amount;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 177.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 176.

175 Interest charge--failure to comply with or termination of debt

payment arrangement

(1) If:

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(a) a debt payment arrangement is in effect in relation to a

person and a debt; and

(b) the person fails to make a payment under the arrangement;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

Note:

For exemptions, see sections 178 and 179.

(2) The period starts at the beginning of the day after the day (the due

day) on which the payment was required to be made under the

arrangement and ends at the end of the earliest of the following

days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after the due day, on which the

person has paid all the payments that have so far become due

and payable under the arrangement;

section 190.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 177.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 176.

Debt payment arrangement is terminated

(4) If:

(a) a debt payment arrangement is in effect in relation to a

person and a debt; and

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(b) the arrangement is then terminated under section 190 on a

day (the termination day);

then:

14th day after the termination day:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt; and

(d) if, at the end of that 14th day, any of those amounts remains

unpaid, the person is liable to pay, by way of penalty, interest

charge, worked out under subsection (6), for each day in the

period described in subsection (5).

Note:

For exemptions, see sections 178 and 179.

(5) The period starts at the beginning of the day after that 14th day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after that 14th day, on which the

person makes a payment under another debt payment

arrangement in relation to the debt.

(6) The interest charge for a day in the period described in

subsection (5) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 177.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 176.

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176 Other rules for interest charge

When interest charge is due and payable

(1) The interest charge under section 174 or 175 for a day is due and

payable to the Commonwealth at the end of that day.

Interest charge is a debt

(2) The interest charge under section 174 or 175 for a day is a debt due

to the Commonwealth by the person.

Provisions that do not apply to interest charge debt

(3) Subsection 173(1) does not apply in relation to the debt referred to

in subsection (2) of this section.

177 What is the interest charge rate?

(1) The interest charge rate for a day is the rate worked out by adding

7 percentage points to the base interest rate for that day, and

dividing that total by the number of days in the calendar year.

(2) The base interest rate for a day depends on which quarter of the

year the day is in. For each day in a quarter in column 1 of the

table, it is the monthly average yield of 90-day Bank Accepted

Bills published by the Reserve Bank of Australia for the month in

column 2 of the table.

Base interest rate

Item

Column 1

For days in this quarter:

Column 2

the monthly average yield of 90-day Bank

Accepted Bills for this month applies:

1 January to 31 March

the preceding November

1 April to 30 June

the preceding February

1 July to 30 September

the preceding May

1 October to 31 December

the preceding August

(3) If the monthly average yield of 90-day Bank Accepted Bills for a

particular month in column 2 of the table in subsection (2) is not

published by the Reserve Bank of Australia before the beginning of

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the relevant quarter, assume that it is the same as the last monthly

average yield of 90-day Bank Accepted Bills published by the

Reserve Bank of Australia before that month.

(4) The base interest rate must be rounded to the second decimal place

(rounding .005 upwards).

178 Exemption from interest charge--general

A person is not liable to pay interest charge under section 174 or

175 if on the day before the start of the period in respect of which

the person would otherwise have been liable to pay that charge:

(a) the person is receiving instalments of family tax benefit

(within the meaning of the A New Tax System (Family

Assistance) Act 1999); or

(b) the person is receiving a social security payment (within the

meaning of the Social Security Act 1991); or

under the Veterans' Entitlements Act 1986; or

(d) the person is receiving instalments under the ABSTUDY

scheme (also known as the Aboriginal Study Assistance

Scheme) that includes an amount identified as living

allowance; or

(e) the person is receiving instalments under the Assistance for

Isolated Children Scheme; or

(f) the circumstances prescribed by the PPL rules apply in

relation to the person.

179 Exemption from interest charge--Secretary's determination

(1) The Secretary may determine that interest charge is not payable, or

is not payable in respect of a particular period, by a person on the

outstanding amount of a debt.

(2) The Secretary may make a determination under this section in

circumstances that include (but are not limited to) the Secretary

being satisfied that the person has a reasonable excuse for:

(a) failing to enter into a debt payment arrangement to pay the

outstanding amount of the debt; or

(b) having entered an arrangement, failing to make a payment in

accordance with that arrangement.

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(3) The determination may relate to a period before, or to a period that

includes a period before, the making of the determination.

(4) The determination may be expressed to be subject to the person

complying with one or more specified conditions.

(5) If the determination is expressed to be subject to the person

complying with one or more specified conditions, the Secretary

must give written notice of the determination to the person as soon

as practicable after the determination is made.

(6) If:

(a) the determination is expressed to be subject to the person

complying with one or more specified conditions; and

(b) the person contravenes a condition or conditions without

reasonable excuse;

the determination ceases to have effect from and including the day

on which the contravention or the earliest of the contraventions

occurred.

(7) The Secretary may cancel or vary the determination by written

notice given to the person.

180 Guidelines on interest charge provisions

The PPL rules may prescribe guidelines for the operation of the

provisions of this Division dealing with interest charge.

21 Section 181 (paragraph (b) of the note)

Omit "sections 177, 179", substitute "sections 176".

22 After subsection 190(1)

Insert:

(1A) If a person is required to make a payment under a debt payment

arrangement before the end of a particular day, the person must

make that payment before the end of that day.

23 Subsection 193(1) (paragraph (b) of the note)

Omit "sections 177, 179", substitute "sections 176".

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24 Subsection 194(1) (paragraph (b) of the note)

Omit "sections 177, 179", substitute "sections 176".

Social Security Act 1991

25 Subsection 1222(2) (table item 16)

Omit "1229A", substitute "1229C".

26 Subsection 1222(2) (table item 17)

Repeal the item.

27 Subsection 1223AA(1) (note)

Repeal the note.

28 Subsection 1224B(1) (note)

Repeal the note.

29 Section 1224C (note)

Repeal the note.

30 Subsection 1224D(1) (note)

Repeal the note.

31 After subsection 1228B(2)

Insert:

(2A) To avoid doubt, the amount added by way of penalty is part of the

debt.

32 Subsection 1228B(5)

Omit "section 1229A or 1229AB", substitute "section 1229C".

33 After paragraph 1229(1)(e)

Insert:

(ea) the effect of sections 1229A and 1229B; and

34 Subsections 1229(3) and (4)

Repeal the subsections, substitute:

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(3) The Secretary may give more than one notice under subsection (1)

in relation to a person and a debt of the person.

35 Sections 1229A to 1229C

Repeal the sections, substitute:

1229A Interest charge--no repayment arrangement in effect

(1) If:

(a) a notice is given to a person under subsection 1229(1) in

relation to a debt; and

(b) an amount (the unpaid amount) of the debt remains unpaid

at the end of the day (the due day) on which the debt is due to

be paid; and

under section 1234 in relation to the debt;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

Note:

For exemptions, see sections 1229E and 1229F.

(2) The period starts at the beginning of the day after the due day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the unpaid amount;

(ii) interest charge on any of the unpaid amount;

(b) the day before the first day, after the due day, on which the

person makes a payment under an arrangement under

section 1234 in relation to the debt.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the unpaid amount;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 1229D.

Interest charge Schedule 12

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Budget Savings (Omnibus) Bill 2016

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 1229C.

1229B Interest charge--failure to comply with or termination of

repayment arrangement

(1) If:

(a) an arrangement is in effect under section 1234 in relation to a

person and a debt; and

(b) the person fails to make a payment under the arrangement;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

Note:

For exemptions, see sections 1229E and 1229F.

(2) The period starts at the beginning of the day after the day (the due

day) on which the payment was required to be made under the

arrangement and ends at the end of the earliest of the following

days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after the due day, on which the

person has paid all the payments that have so far become due

and payable under the arrangement;

section 1234.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 1229D.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 1229C.

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Repayment arrangement is terminated

(4) If:

(a) an arrangement is in effect under section 1234 in relation to a

person and a debt; and

(b) the arrangement is then terminated under section 1234 on a

day (the termination day);

then:

14th day after the termination day:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt; and

(d) if, at the end of that 14th day, any of those amounts remains

unpaid, the person is liable to pay, by way of penalty, interest

charge, worked out under subsection (6), for each day in the

period described in subsection (5).

Note:

For exemptions, see sections 1229E and 1229F.

(5) The period starts at the beginning of the day after that 14th day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after that 14th day, on which the

person makes a payment under another arrangement under

section 1234 in relation to the debt.

(6) The interest charge for a day in the period described in

subsection (5) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 1229D.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day and is a debt due to the Commonwealth: see

section 1229C.

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101

1229C Other rules for interest charge

When interest charge is due and payable

(1) The interest charge under section 1229A or 1229B for a day is due

and payable to the Commonwealth at the end of that day.

Interest charge is a debt

(2) The interest charge under section 1229A or 1229B for a day is a

debt due to the Commonwealth by the person.

Provisions that do not apply to interest charge debt

(3) Subsection 1229(1) does not apply in relation to the debt referred

to in subsection (2) of this section.

1229D What is the interest charge rate?

(1) For the purposes of sections 1229A and 1229B, the interest charge

rate for a day is the rate worked out by adding 7 percentage points

to the base interest rate for that day, and dividing that total by the

number of days in the calendar year.

(2) The base interest rate for a day depends on which quarter of the

year the day is in. For each day in a quarter in column 1 of the

table, it is the monthly average yield of 90-day Bank Accepted

Bills published by the Reserve Bank of Australia for the month in

column 2 of the table.

Base interest rate

Item

Column 1

For days in this quarter:

Column 2

the monthly average yield of 90-day Bank

Accepted Bills for this month applies:

1 January to 31 March

the preceding November

1 April to 30 June

the preceding February

1 July to 30 September

the preceding May

1 October to 31 December

the preceding August

(3) If the monthly average yield of 90-day Bank Accepted Bills for a

particular month in column 2 of the table in subsection (2) is not

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published by the Reserve Bank of Australia before the beginning of

the relevant quarter, assume that it is the same as the last monthly

average yield of 90-day Bank Accepted Bills published by the

Reserve Bank of Australia before that month.

(4) The base interest rate must be rounded to the second decimal place

(rounding .005 upwards).

1229E Exemption from interest charge--general

(1) A person is not liable to pay interest charge under section 1229A or

1229B if on the day before the start of the period in respect of

which the person would otherwise have been liable to pay that

charge:

(a) the person is receiving a social security payment; or

(b) the person is receiving a payment of pension or allowance

under the Veterans' Entitlements Act; or

(d) the person is receiving instalments under the ABSTUDY

scheme (also known as the Aboriginal Study Assistance

Scheme) that includes an amount identified as living

allowance; or

(e) the person is receiving instalments under the Assistance for

Isolated Children Scheme; or

(f) the circumstances determined in an instrument under

subsection (2) apply in relation to the person.

(2) The Minister may, by legislative instrument, determine

circumstances for the purposes of paragraph (1)(f).

1229F Exemption from interest charge--Secretary's determination

(1) The Secretary may determine that interest charge is not payable, or

is not payable in respect of a particular period, by a person on the

outstanding amount of a debt.

(2) The Secretary may make a determination under this section in

circumstances that include (but are not limited to) the Secretary

being satisfied that the person has a reasonable excuse for:

(a) failing to enter into an arrangement under section 1234 to pay

the outstanding amount of the debt; or

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103

(b) having entered an arrangement, failing to make a payment in

accordance with that arrangement.

(3) The determination may relate to a period before, or to a period that

includes a period before, the making of the determination.

(4) The determination may be expressed to be subject to the person

complying with one or more specified conditions.

(5) If the determination is expressed to be subject to the person

complying with one or more specified conditions, the Secretary

must give written notice of the determination to the person as soon

as practicable after the determination is made.

(6) If:

(a) the determination is expressed to be subject to the person

complying with one or more specified conditions; and

(b) the person contravenes a condition or conditions without

reasonable excuse;

the determination ceases to have effect from and including the day

on which the contravention or the earliest of the contraventions

occurred.

(7) The Secretary may cancel or vary the determination by written

notice given to the person.

1229G Guidelines on interest charge provisions

The Minister may, by legislative instrument, determine guidelines

relating to the operation of the provisions of this Part dealing with

interest charge.

36 Subsection 1230(1) (note 3)

Repeal the note.

37 Subsection 1230A(1) (note 3)

Repeal the note.

38 After subsection 1234(1)

Insert:

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(1A) If a person is required to make a payment under an arrangement

entered into under subsection (1) before the end of a particular day,

the person must make that payment before the end of that day.

Student Assistance Act 1973

39 Subsection 3(1) (definition of late payment charge)

Repeal the definition.

40 Section 38 (heading)

Repeal the heading, substitute:

38 Definitions

41 Section 38 (paragraph (c) of the definition of debt)

Omit "section 40", substitute "section 41B".

42 Section 38

Insert:

relevant debt means:

(a) an amount paid under the ABSTUDY Scheme (also known

as the Aboriginal Study Assistance Scheme) that should not

have been paid; or

(b) an amount paid under the Assistance for Isolated Children

Scheme that should not have been paid; or

Note:

The amount in paragraph (a) or (b) is a debt under paragraph (a) of the

definition of debt in this section. The amount in paragraph (c) is a debt

under paragraph (aa) of the definition of debt in this section.

43 Sections 39A, 40 and 41

Repeal the sections, substitute:

40 Notice in respect of relevant debt

(1) If a relevant debt owed by a person to the Commonwealth has not

been wholly paid, the Secretary must give the person a notice

specifying:

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105

(a) the date on which it was issued (the date of the notice); and

(b) the reason the debt was incurred, including a brief

explanation of the circumstances that led to the debt being

incurred; and

(d) the outstanding amount of the debt at the date of the notice;

and

(e) the day on which the outstanding amount is due and payable;

and

(f) the effect of sections 41 and 41A; and

(g) that a range of options is available for repayment of the debt;

and

(h) the contact details for inquiries concerning the debt.

(2) The outstanding amount of the debt is due and payable on the 28th

day after the date of the notice.

(3) The Secretary may give more than one notice under subsection (1)

in relation to a person and a relevant debt of the person.

41 Interest charge--no repayment arrangement in effect

(1) If:

(a) a notice is given to a person under subsection 40(1) in

relation to a relevant debt; and

(b) an amount (the unpaid amount) of the debt remains unpaid

at the end of the day (the due day) on which the debt is due to

be paid; and

under section 41F in relation to the debt;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

Note:

For exemptions, see sections 41D and 41E.

(2) The period starts at the beginning of the day after the due day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the unpaid amount;

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(ii) interest charge on any of the unpaid amount;

(b) the day before the first day, after the due day, on which the

person makes a payment under an arrangement under

section 41F in relation to the debt.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the unpaid amount;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 41C.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day: see section 41B.

41A Interest charge--failure to comply with or termination of

repayment arrangement

(1) If:

(a) an arrangement is in effect under section 41F in relation to a

person and a relevant debt; and

(b) the person fails to make a payment under the arrangement;

then the person is liable to pay, by way of penalty, interest charge,

worked out under subsection (3), for each day in the period

described in subsection (2).

Note:

For exemptions, see sections 41D and 41E.

(2) The period starts at the beginning of the day after the day (the due

day) on which the payment was required to be made under the

arrangement and ends at the end of the earliest of the following

days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

(b) the day before the first day, after the due day, on which the

person has paid all the payments that have so far become due

and payable under the arrangement;

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section 41F.

(3) The interest charge for a day in the period described in

subsection (2) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 41C.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day: see section 41B.

Repayment arrangement is terminated

(4) If:

(a) an arrangement is in effect under section 41F in relation to a

person and a relevant debt; and

(b) the arrangement is then terminated under section 41F on a

day (the termination day);

then:

14th day after the termination day:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt; and

(d) if, at the end of that 14th day, any of those amounts remains

unpaid, the person is liable to pay, by way of penalty, interest

charge, worked out under subsection (6), for each day in the

period described in subsection (5).

Note:

For exemptions, see sections 41D and 41E.

(5) The period starts at the beginning of the day after that 14th day and

ends at the end of the earlier of the following days:

(a) the last day at the end of which any of the following remains

unpaid:

(i) the outstanding amount of the debt;

(ii) interest charge on any of the outstanding amount of the

debt;

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(b) the day before the first day, after that 14th day, on which the

person makes a payment under another arrangement under

section 41F in relation to the debt.

(6) The interest charge for a day in the period described in

subsection (5) is worked out by multiplying the interest charge rate

for that day by the sum of so much of the following amounts as

remains unpaid:

(a) the outstanding amount of the debt;

(b) the interest charge from previous days.

Note 1:

For interest charge rate see section 41C.

Note 2:

The interest charge for a day is due and payable to the Commonwealth

at the end of that day: see section 41B.

41B When interest charge becomes due and payable

The interest charge under section 41 or 41A for a day is due and

payable to the Commonwealth at the end of that day.

Note:

The interest charge for a day is a debt owed to the Commonwealth:

see section 39.

41C What is the interest charge rate?

(1) For the purposes of sections 41 and 41A, the interest charge rate

for a day is the rate worked out by adding 7 percentage points to

the base interest rate for that day, and dividing that total by the

number of days in the calendar year.

(2) The base interest rate for a day depends on which quarter of the

year the day is in. For each day in a quarter in column 1 of the

table, it is the monthly average yield of 90-day Bank Accepted

Bills published by the Reserve Bank of Australia for the month in

column 2 of the table.

Base interest rate

Item

Column 1

For days in this quarter:

Column 2

the monthly average yield of 90-day Bank

Accepted Bills for this month applies:

1 January to 31 March

the preceding November

1 April to 30 June

the preceding February

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Base interest rate

Item

Column 1

For days in this quarter:

Column 2

the monthly average yield of 90-day Bank

Accepted Bills for this month applies:

1 July to 30 September

the preceding May

1 October to 31 December

the preceding August

(3) If the monthly average yield of 90-day Bank Accepted Bills for a

particular month in column 2 of the table in subsection (2) is not

published by the Reserve Bank of Australia before the beginning of

the relevant quarter, assume that it is the same as the last monthly

average yield of 90-day Bank Accepted Bills published by the

Reserve Bank of Australia before that month.

(4) The base interest rate must be rounded to the second decimal place

(rounding .005 upwards).

41D Exemption from interest charge--general

(1) A person is not liable to pay interest charge under section 41 or

41A if on the day before the start of the period in respect of which

the person would otherwise have been liable to pay that charge:

(a) the person is receiving instalments under the ABSTUDY

scheme (also known as the Aboriginal Study Assistance

Scheme) that includes an amount identified as living

allowance; or

(b) the person is receiving instalments under the Assistance for

Isolated Children Scheme; or

(within the meaning of the A New Tax System (Family

Assistance) Act 1999); or

(d) the person is receiving a social security payment (within the

meaning of the Social Security Act 1991); or

(e) the person is receiving a payment of pension or allowance

under the Veterans' Entitlements Act 1986; or

(f) the circumstances determined in an instrument under

subsection (2) apply in relation to the person.

(2) The Minister may, by legislative instrument, determine

circumstances for the purposes of paragraph (1)(f).

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41E Exemption from interest charge--Secretary's determination

(1) The Secretary may determine that interest charge is not payable, or

is not payable in respect of a particular period, by a person on the

outstanding amount of a relevant debt.

(2) The Secretary may make a determination under this section in

circumstances that include (but are not limited to) the Secretary

being satisfied that the person has a reasonable excuse for:

(a) failing to enter into an arrangement under section 41F to pay

the outstanding amount of the debt; or

(b) having entered an arrangement, failing to make a payment in

accordance with that arrangement.

(3) The determination may relate to a period before, or to a period that

includes a period before, the making of the determination.

(4) The determination may be expressed to be subject to the person

complying with one or more specified conditions.

(5) If the determination is expressed to be subject to the person

complying with one or more specified conditions, the Secretary

must give written notice of the determination to the person as soon

as practicable after the determination is made.

(6) If:

(a) the determination is expressed to be subject to the person

complying with one or more specified conditions; and

(b) the person contravenes a condition or conditions without

reasonable excuse;

the determination ceases to have effect from and including the day

on which the contravention or the earliest of the contraventions

occurred.

(7) The Secretary may cancel or vary the determination by written

notice given to the person.

41F Arrangement for payment of relevant debt

(1) The Secretary may, on behalf of the Commonwealth, enter into an

arrangement with a person under which the person is to pay a

relevant debt, owed by the person to the Commonwealth, or the

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outstanding amount of such a debt, in a way set out in the

arrangement.

(2) If a person is required to make a payment under an arrangement

entered into under subsection (1) before the end of a particular day,

the person must make that payment before the end of that day.

(3) An arrangement entered into under subsection (1) has effect, or is

taken to have had effect, on and after the day specified in the

arrangement as the day on which the arrangement commences

(whether that day is the day on which the arrangement is entered

into or an earlier or later day).

(4) If an arrangement entered into under subsection (1) does not

specify a day as mentioned in subsection (3), it has effect on and

after the day on which it is entered into.

(5) The Secretary may terminate or alter an arrangement entered into

under subsection (1):

(a) at the debtor's request; or

(b) after giving 28 days' notice to the debtor of the proposed

termination or alteration; or

failed to disclose material information about his or her true

capacity to repay the debt.

41G Guidelines on interest charge provisions

The Minister may, by legislative instrument, determine guidelines

relating to the operation of the provisions of this Division dealing

with interest charge.

44 Paragraph 51(1)(b)

Omit "subsection 40(1A)", substitute "subsection 40(1)".

Veterans' Entitlements Act 1986

45 Section 205AAE

Repeal the section, substitute:

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205AAE Penalty interest rate

(1) The penalty interest rate is:

(a) 3% per year; or

(b) if another percentage is determined in an instrument under

subsection (2)--that percentage per year.

(2) The Minister may, by legislative instrument, determine a

percentage for the purposes of paragraph (1)(b).

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Part 2--Application, saving and transitional

provisions

46 Application and transitional provisions

--family assistance

amendments

(1)

Paragraph 78(1)(a) of the A New Tax System (Family Assistance)

(Administration) Act 1999, as amended by this Act, applies in relation

to a notice given on or after the commencement of this item (whether

the debt arose before, on or after that commencement).

(2)

If:

(a) before the commencement of this item, the Secretary gave a

person a notice under subsection 77(1) of the A New Tax

System (Family Assistance) (Administration) Act 1999 in

relation to a debt; and

(b) the whole or a part of that debt is outstanding immediately

before that commencement;

then, on or after the commencement of this item, the Secretary must

give the person another notice under subsection 77(1) of that Act, as

amended by this Act, in relation to the debt.

(3)

Paragraph 78A(1)(b) of the A New Tax System (Family Assistance)

(Administration) Act 1999, as amended by this Act, applies in relation

to a failure that occurs on or after the commencement of this item

(whether the arrangement was entered into before, on or after that

commencement).

(4)

Paragraph 78A(4)(b) of the A New Tax System (Family Assistance)

(Administration) Act 1999, as amended by this Act, applies in relation

to a termination that occurs on or after the commencement of this item

(whether the arrangement was entered into before, on or after that

commencement).

(5)

Subsection 91(1B) of the A New Tax System (Family Assistance)

(Administration) Act 1999, as amended by this Act, applies in relation

to a requirement to make a payment on or after the commencement of

this item (whether the arrangement was entered into before, on or after

that commencement).

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47 Application and transitional provisions

--paid parental

leave amendments

(1)

Paragraph 174(1)(a) of the Paid Parental Leave Act 2010, as amended

by this Act, applies in relation to a notice given on or after the

commencement of this item (whether the debt arose before, on or after

that commencement).

(2)

If:

(a) before the commencement of this item, the Secretary gave a

person a notice under subsection 173(1) of the Paid Parental

Leave Act 2010 in relation to a debt; and

(b) the whole or a part of that debt is outstanding immediately

before that commencement;

then, on or after the commencement of this item, the Secretary must

give the person another notice under subsection 173(1) of that Act, as

amended by this Act, in relation to the debt.

(3)

Paragraph 175(1)(b) of the Paid Parental Leave Act 2010, as amended

by this Act, applies in relation to a failure that occurs on or after the

commencement of this item (whether the arrangement was entered into

before, on or after that commencement).

(4)

Paragraph 175(4)(b) of the Paid Parental Leave Act 2010, as amended

by this Act, applies in relation to a termination that occurs on or after

the commencement of this item (whether the arrangement was entered

into before, on or after that commencement).

(5)

Subsection 190(1A) of the Paid Parental Leave Act 2010, as amended

by this Act, applies in relation to a requirement to make a payment on

or after the commencement of this item (whether the arrangement was

entered into before, on or after that commencement).

48 Application and transitional provisions

--social security

amendments

(1)

Paragraph 1229A(1)(a) of the Social Security Act 1991, as amended by

this Act, applies in relation to a notice given on or after the

commencement of this item (whether the debt arose before, on or after

that commencement).

(2)

If:

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(a) before the commencement of this item, the Secretary gave a

person a notice under subsection 1229(1) of the Social

Security Act 1991 in relation to a debt; and

(b) the whole or a part of that debt is outstanding immediately

before that commencement;

then, on or after the commencement of this item, the Secretary must

give the person another notice under subsection 1229(1) of that Act, as

amended by this Act, in relation to the debt.

(3)

Paragraph 1229B(1)(b) of the Social Security Act 1991, as amended by

this Act, applies in relation to a failure that occurs on or after the

commencement of this item (whether the arrangement was entered into

before, on or after that commencement).

(4)

Paragraph 1229B(4)(b) of the Social Security Act 1991, as amended by

this Act, applies in relation to a termination that occurs on or after the

commencement of this item (whether the arrangement was entered into

before, on or after that commencement).

(5)

Subsection 1234(1A) of the Social Security Act 1991, as amended by

this Act, applies in relation to a requirement to make a payment on or

after the commencement of this item (whether the arrangement was

entered into before, on or after that commencement).

49 Application, saving and transitional provisions

--student

assistance amendments

(1)

Sections 40 to 41G of the Student Assistance Act 1973, as amended by

this Act, apply in relation to:

(a) a relevant debt that arises on or after the commencement of

this item; and

(b) a relevant debt that arose before the commencement of this

item, to the extent that the debt was outstanding immediately

before that commencement.

(2)

The repeal of section 39A of the Student Assistance Act 1973 made by

this Schedule does not affect the validity of a decision under

subsection 39A(1) of that Act before the commencement of this item.

(3)

A decision made under subsection 39A(1) of the Student Assistance Act

1973 before the commencement of this item in relation to a person and

a debt does not prevent the application of the provisions of Division 2

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Schedule 13--Debt recovery

Part 1--Departure prohibition orders

A New Tax System (Family Assistance) Act 1999

1 Subsection 3(1) (at the end of the definition of Australia)

Add:

Note:

In Division 5 of Part 4 of the Family Assistance Administration Act

(about departure prohibition orders), Australia has an extended

meaning.

A New Tax System (Family Assistance) (Administration) Act

1999

2 Subsection 3(1)

Insert:

departure authorisation certificate means a certificate under

Subdivision D of Division 5 of Part 4.

departure prohibition order means an order under Subdivision A

of Division 5 of Part 4 (including such an order varied under

Subdivision C of that Division).

3 At the end of Part 4

Add:

Division 5--Departure prohibition orders

Subdivision A--Secretary may make departure prohibition

orders

102A Secretary may make departure prohibition orders

(1) The Secretary may make an order (a departure prohibition order)

prohibiting a person from departing from Australia for a foreign

country if:

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(a) the person has one or more debts to the Commonwealth

under this Part; and

(b) there are not arrangements satisfactory to the Secretary for

the one or more debts to be wholly paid; and

desirable to make the order for the purpose of ensuring that

the person does not depart from Australia for a foreign

country without:

(i) having wholly paid the one or more debts; or

(ii) there being arrangements satisfactory to the Secretary

for the one or more debts to be wholly paid.

Matters to be taken into account in making order

(2) Before making an order under this section, the Secretary must have

regard to the following matters:

(a) the capacity of the person to pay the one or more debts;

(b) whether any action has been taken to recover any such debt,

and the outcome of the recovery action;

unpaid after the day on which it became due and payable;

(d) such other matters as the Secretary considers appropriate.

Form of order

(3) A departure prohibition order must be in a form approved by the

Secretary.

Subdivision B--Departure from Australia of debtors

prohibited

102B Departure from Australia of debtors prohibited

A person must not depart from Australia for a foreign country if:

(a) a departure prohibition order in respect of the person is in

force, and the person knows that the order is in force, or is

reckless as to whether the order is in force; and

(b) the person's departure is not authorised by a departure

authorisation certificate, and the person knows that the

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departure is not authorised by such a certificate, or is reckless

as to whether the departure is authorised by such a certificate.

Penalty: Imprisonment for 12 months.

Subdivision C--Other rules for departure prohibition orders

102C Notification requirements for departure prohibition orders

(1) This section applies if the Secretary makes a departure prohibition

order in respect of a person.

Notifying person of order

(2) The Secretary must notify the person that the order has been made.

(3) The notice must be in a form approved by the Secretary and must

be given as soon as practicable after making the order.

Notifying other persons of order

(4) Unless the Secretary is satisfied that the person is an Australian

citizen, the Secretary must give the Secretary of the Department

administered by the Minister administering the Migration Act 1958

a copy of the order, and information likely to facilitate

identification of the person, for the purposes of administering that

Act.

(5) The Secretary must also give a copy of the order, and information

likely to facilitate identification of the person for the purposes of

this Division, to such other persons as the Secretary considers

appropriate in the circumstances, being persons declared in an

instrument under subsection (6).

(6) The Secretary may, by legislative instrument, declare persons for

the purposes of subsection (5).

(7) The Secretary must give a copy of the order or information under

subsection (4) or (5) as soon as practicable after making the order.

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102D Operation of departure prohibition order

(1) A departure prohibition order comes into force when it is made,

and continues in force until it is revoked, or until it is set aside by a

court.

Note:

Subdivision E deals with appeals to the Federal Court of Australia or

the Federal Circuit Court of Australia against the making of departure

prohibition orders.

(2) However, a departure prohibition order in respect of a person is not

in force during any period when a deportation order in respect of

the person is in force under the Migration Act 1958.

102E Revocation and variation of departure prohibition orders

(1) The Secretary must revoke a departure prohibition order in respect

of a person if:

(a) the person no longer has any debts to the Commonwealth

under this Part; or

(b) there are arrangements satisfactory to the Secretary for the

one or more debts the person has to the Commonwealth

under this Part to be wholly paid; or

person has to the Commonwealth under this Part are

completely irrecoverable.

(2) The Secretary may revoke or vary a departure prohibition order in

respect of a person if the Secretary considers it desirable to do so.

(3) A revocation or variation, under this section, of a departure

prohibition order may be:

(a) on application by the person in a form approved by the

Secretary; or

(b) on the Secretary's own initiative.

102F Notification requirements for revocations and variations

(1) If the Secretary revokes or varies a departure prohibition order in

respect of a person, the Secretary must give notice of the

revocation or variation to:

(a) the person; and

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(b) each person to whom a copy of the departure prohibition

order was given under subsection 102C(4) or (5).

(2) If:

(a) a person makes an application under paragraph 102E(3)(a)

for the revocation or variation of a departure prohibition

order; and

(b) the Secretary refuses to revoke or vary the order;

the Secretary must give notice of the refusal to the person.

(3) A notice under this section must be in a form approved by the

Secretary and must be given as soon as practicable after the

decision concerned is made.

Subdivision D--Departure authorisation certificates

102G Application for departure authorisation certificate

(1) A person in respect of whom a departure prohibition order is in

force may apply for a certificate (a departure authorisation

certificate) authorising the person to depart from Australia for a

foreign country.

(2) The application must be in a form approved by the Secretary.

102H When Secretary must issue departure authorisation certificate

(1) This section applies if a person makes an application under

section 102G for a departure authorisation certificate.

(2) The Secretary must issue the departure authorisation certificate if

the Secretary is satisfied:

(a) that, if the certificate is issued:

(i) it is likely that the person will depart from Australia and

return to Australia within a period that the Secretary

considers appropriate; and

(ii) it is likely that, within a period that the Secretary

considers appropriate, the Secretary will be required by

subsection 102E(1) to revoke the departure prohibition

order in respect of the person; and

(b) that it is not necessary for the person to give security under

section 102J for the person's return to Australia.

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(3) If the Secretary is not satisfied as mentioned in subsection (2), the

Secretary must issue the departure authorisation certificate if:

(a) the person has given security under section 102J for the

person's return to Australia; or

(b) if the person is unable to give such security, the Secretary is

satisfied:

(i) that the certificate should be issued on humanitarian

grounds; or

(ii) that refusing to issue the certificate will be detrimental

to Australia's interests.

102J Security for person's return to Australia

(1) A person may give such security as the Secretary considers

appropriate by bond, deposit or any other means, for the person's

return to Australia by such day as is agreed by the person and the

Secretary and is specified in the departure authorisation certificate.

(2) The Secretary may substitute a later day for the day mentioned in

subsection (1):

(a) on application by the person in a form approved by the

Secretary; or

(b) on the Secretary's own initiative.

(3) The Secretary may refuse an application by a person to substitute a

later day if:

(a) the person refuses to increase the value of the security

already given to a level that the Secretary considers

appropriate; or

(b) the person refuses to give such further security as the

Secretary considers appropriate; or

substitute the later day.

102K What departure authorisation certificate must authorise

(1) A departure authorisation certificate in respect of a person must

authorise the departure of the person on or before the seventh day

after a day specified in the certificate.

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(2) The day specified in the certificate must be a day that is after the

day on which the certificate is issued, but not more than 7 days

after that day.

102L Notification requirements for departure authorisation

certificates

(1) If the Secretary issues a departure authorisation certificate in

respect of a person, the Secretary must, as soon as practicable, give

a copy of the certificate to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order in respect of the person was given under

subsection 102C(4) or (5).

(2) If:

(a) a person makes an application under section 102G for a

departure authorisation certificate; and

(b) the Secretary refuses to issue the certificate;

the Secretary must give notice of the refusal to the person.

(3) The notice must be in a form approved by the Secretary and must

be given as soon as practicable after the refusal.

102M Notification requirements for substituted days

(1) If, under section 102J, the Secretary substitutes a later day for a

person's return to Australia, the Secretary must give notice of that

decision to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order in respect of the person was given under

subsection 102C(4) or (5).

(2) If:

(a) a person makes an application under paragraph 102J(2)(a) to

substitute a later day for the person's return to Australia; and

(b) the Secretary refuses the application;

the Secretary must give notice of the refusal to the person.

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(3) A notice under this section must be in a form approved by the

Secretary and must be given as soon as practicable after the

decision concerned is made.

Subdivision E--Appeals and review in relation to departure

prohibition orders and departure authorisation

certificates

102N Appeals to courts against making of departure prohibition

orders

(1) A person aggrieved by the making of a departure prohibition order

may appeal to the Federal Court of Australia or the Federal Circuit

Court of Australia against the making of the order.

(2) This section has effect subject to Chapter III of the Constitution.

102P Jurisdiction of courts

The jurisdiction of a court under section 102N must be exercised

by a single Judge.

102Q Orders of court on appeal

A court hearing an appeal under section 102N against the making

of a departure prohibition order may, in its discretion:

(a) make an order setting aside the order; or

(b) dismiss the appeal.

102R Review of decisions

(1) Applications may be made to the Administrative Appeals Tribunal

for review of a decision of the Secretary under section 102E, 102H

or 102J.

(2) Despite any provision of Part 5, that Part does not apply in relation

to any decision of the Secretary under this Division.

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Subdivision F--Enforcement

102S Powers of officers of Customs and members of the Australian

Federal Police

(1) This section applies if an officer (within the meaning of the

Customs Act 1901), or a member of the Australian Federal Police,

believes on reasonable grounds that:

(a) a person is about to depart from Australia for a foreign

country; and

(b) a departure prohibition order in respect of the person is in

force; and

authorisation certificate.

(2) The officer or member may:

(a) take such steps as are reasonably necessary to prevent the

person's departure, including, but not limited to, steps to

prevent the person going on board, or to remove the person

from, a vessel or aircraft in which the officer or member

believes on reasonable grounds the departure will take place;

and

(b) require the person to answer questions or produce documents

to the officer or member for the purposes of working out

whether:

(i) a departure prohibition order in respect of the person is

in force; and

(ii) if such an order in respect of the person is in force--

whether the person's departure is authorised by a

departure authorisation certificate.

(3) A person commits an offence if:

(a) the person is subject to a requirement under paragraph (2)(b);

and

(b) the person refuses or fails to comply with the requirement.

Penalty: 30 penalty units.

(4) Subsection (3) does not apply if the person answers the question or

produces the document to the extent that the person is capable of

answering the question or producing the document.

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Note:

A defendant bears an evidential burden in relation to the matters

mentioned in subsection (4): see subsection 13.3(3) of the Criminal

Code.

102T Privilege against self-incrimination

(1) An individual is not excused from answering a question, or

producing a document, under paragraph 102S(2)(b) on the ground

that the answer to the question or the production of the document

might tend to incriminate the individual or expose the individual to

a penalty.

(2) However:

(a) the answer given or document produced; and

(b) answering the question or producing the document; and

indirect consequence of the answering of the question or

producing the document;

are not admissible in evidence against the individual in any

criminal proceedings, other than proceedings under section 137.1

or 137.2 of the Criminal Code in relation to answering the question

or producing the document.

102U Production of authority to depart

(1) If:

(a) a departure prohibition order in respect of a person is in

force; and

(b) the person is about to depart from Australia for a foreign

country; and

authorisation certificate;

an officer (within the meaning of the Customs Act 1901), or a

member of the Australian Federal Police, may request the person to

give a copy of the certificate to the officer or member for

inspection.

(2) A person commits an offence of strict liability if:

(a) an officer (within the meaning of the Customs Act 1901), or a

member of the Australian Federal Police, has made a request

of the person under subsection (1); and

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(b) the person refuses or fails to comply with the request.

Penalty for contravention of this subsection: 5 penalty units.

Subdivision G--Interpretation

102V Interpretation--departure from Australia for foreign country

A reference in this Division to the departure of a person from

Australia for a foreign country is a reference to the departure of the

person from Australia for a foreign country, whether or not the

person intends to return to Australia.

102W Meaning of Australia

For the purposes of this Division, Australia, when used in a

geographical sense, includes the external Territories.

4 Part 5 (after the heading)

Insert:

Note:

This Part does not apply in relation to any decision of the Secretary under Division 5 of

Part 4 (about departure prohibition orders).

Paid Parental Leave Act 2010

5 Section 6 (at the end of the definition of Australia)

Add:

Note:

In Division 7A of Part 4-3 (about departure prohibition orders),

Australia has an extended meaning.

6 Section 6

Insert:

departure authorisation certificate means a certificate under

Subdivision D of Division 7A of Part 4-3.

departure prohibition order means an order under Subdivision A

of Division 7A of Part 4-3 (including such an order varied under

Subdivision C of that Division).

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7 Section 164

After:

Division 7 allows the Secretary to waive debts in various

circumstances.

insert:

Division 7A deals with when a departure prohibition order,

prohibiting a person from departing from Australia for a foreign

country, can be made if the person has a debt due to the

Commonwealth under this Act.

8 After Division 7 of Part 4-3

Insert:

Division 7A--Departure prohibition orders

Subdivision A--Secretary may make departure prohibition

orders

200A Secretary may make departure prohibition orders

(1) The Secretary may make an order (a departure prohibition order)

prohibiting a person from departing from Australia for a foreign

country if:

(a) the person has one or more debts to the Commonwealth

under this Act; and

(b) there are not arrangements satisfactory to the Secretary for

the one or more debts to be wholly paid; and

desirable to make the order for the purpose of ensuring that

the person does not depart from Australia for a foreign

country without:

(i) having wholly paid the one or more debts; or

(ii) there being arrangements satisfactory to the Secretary

for the one or more debts to be wholly paid.

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Matters to be taken into account in making order

(2) Before making an order under this section, the Secretary must have

regard to the following matters:

(a) the capacity of the person to pay the one or more debts;

(b) whether any action has been taken to recover any such debt,

and the outcome of the recovery action;

unpaid after the day on which it became due and payable;

(d) such other matters as the Secretary considers appropriate.

Form of order

(3) A departure prohibition order must be in a form approved by the

Secretary.

Debts under section 168 disregarded

(4) A debt that a person has under section 168 is to be disregarded for

the purposes of this section.

Subdivision B--Departure from Australia of debtors

prohibited

200B Departure from Australia of debtors prohibited

A person must not depart from Australia for a foreign country if:

(a) a departure prohibition order in respect of the person is in

force, and the person knows that the order is in force, or is

reckless as to whether the order is in force; and

(b) the person's departure is not authorised by a departure

authorisation certificate, and the person knows that the

departure is not authorised by such a certificate, or is reckless

as to whether the departure is authorised by such a certificate.

Penalty: Imprisonment for 12 months.

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Subdivision C--Other rules for departure prohibition orders

200C Notification requirements for departure prohibition orders

(1) This section applies if the Secretary makes a departure prohibition

order in respect of a person.

Notifying person of order

(2) The Secretary must notify the person that the order has been made.

(3) The notice must be in a form approved by the Secretary and must

be given as soon as practicable after making the order.

Notifying other persons of order

(4) Unless the Secretary is satisfied that the person is an Australian

citizen, the Secretary must give the Secretary of the Department

administered by the Immigration Minister a copy of the order, and

information likely to facilitate identification of the person, for the

purposes of administering the Migration Act 1958.

(5) The Secretary must also give a copy of the order, and information

likely to facilitate identification of the person for the purposes of

this Division, to such other persons as the Secretary considers

appropriate in the circumstances, being persons prescribed by the

PPL rules.

(6) The Secretary must give a copy of the order or information under

subsection (4) or (5) as soon as practicable after making the order.

200D Operation of departure prohibition order

(1) A departure prohibition order comes into force when it is made,

and continues in force until it is revoked, or until it is set aside by a

court.

Note:

Subdivision E deals with appeals to the Federal Court or the Federal

Circuit Court against the making of departure prohibition orders.

(2) However, a departure prohibition order in respect of a person is not

in force during any period when a deportation order in respect of

the person is in force under the Migration Act 1958.

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200E Revocation and variation of departure prohibition orders

(1) The Secretary must revoke a departure prohibition order in respect

of a person if:

(a) the person no longer has any debts to the Commonwealth

under this Act; or

(b) there are arrangements satisfactory to the Secretary for the

one or more debts the person has to the Commonwealth

under this Act to be wholly paid; or

person has to the Commonwealth under this Act are

completely irrecoverable.

(2) The Secretary may revoke or vary a departure prohibition order in

respect of a person if the Secretary considers it desirable to do so.

(3) A revocation or variation, under this section, of a departure

prohibition order may be:

(a) on application by the person in a form approved by the

Secretary; or

(b) on the Secretary's own initiative.

Debts under section 168 disregarded

(4) A debt that a person has under section 168 is to be disregarded for

the purposes of this section.

200F Notification requirements for revocations and variations

(1) If the Secretary revokes or varies a departure prohibition order in

respect of a person, the Secretary must give notice of the

revocation or variation to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order was given under subsection 200C(4) or (5).

(2) If:

(a) a person makes an application under paragraph 200E(3)(a)

for the revocation or variation of a departure prohibition

order; and

(b) the Secretary refuses to revoke or vary the order;

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the Secretary must give notice of the refusal to the person.

(3) A notice under this section must be in a form approved by the

Secretary and must be given as soon as practicable after the

decision concerned is made.

Subdivision D--Departure authorisation certificates

200G Application for departure authorisation certificate

(1) A person in respect of whom a departure prohibition order is in

force may apply for a certificate (a departure authorisation

certificate) authorising the person to depart from Australia for a

foreign country.

(2) The application must be in a form approved by the Secretary.

200H When Secretary must issue departure authorisation certificate

(1) This section applies if a person makes an application under

section 200G for a departure authorisation certificate.

(2) The Secretary must issue the departure authorisation certificate if

the Secretary is satisfied:

(a) that, if the certificate is issued:

(i) it is likely that the person will depart from Australia and

return to Australia within a period that the Secretary

considers appropriate; and

(ii) it is likely that, within a period that the Secretary

considers appropriate, the Secretary will be required by

subsection 200E(1) to revoke the departure prohibition

order in respect of the person; and

(b) that it is not necessary for the person to give security under

section 200J for the person's return to Australia.

(3) If the Secretary is not satisfied as mentioned in subsection (2), the

Secretary must issue the departure authorisation certificate if:

(a) the person has given security under section 200J for the

person's return to Australia; or

(b) if the person is unable to give such security, the Secretary is

satisfied:

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(i) that the certificate should be issued on humanitarian

grounds; or

(ii) that refusing to issue the certificate will be detrimental

to Australia's interests.

200J Security for person's return to Australia

(1) A person may give such security as the Secretary considers

appropriate by bond, deposit or any other means, for the person's

return to Australia by such day as is agreed by the person and the

Secretary and is specified in the departure authorisation certificate.

(2) The Secretary may substitute a later day for the day mentioned in

subsection (1):

(a) on application by the person in a form approved by the

Secretary; or

(b) on the Secretary's own initiative.

(3) The Secretary may refuse an application by a person to substitute a

later day if:

(a) the person refuses to increase the value of the security

already given to a level that the Secretary considers

appropriate; or

(b) the person refuses to give such further security as the

Secretary considers appropriate; or

substitute the later day.

200K What departure authorisation certificate must authorise

(1) A departure authorisation certificate in respect of a person must

authorise the departure of the person on or before the seventh day

after a day specified in the certificate.

(2) The day specified in the certificate must be a day that is after the

day on which the certificate is issued, but not more than 7 days

after that day.

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200L Notification requirements for departure authorisation

certificates

(1) If the Secretary issues a departure authorisation certificate in

respect of a person, the Secretary must, as soon as practicable, give

a copy of the certificate to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order in respect of the person was given under

subsection 200C(4) or (5).

(2) If:

(a) a person makes an application under section 200G for a

departure authorisation certificate; and

(b) the Secretary refuses to issue the certificate;

the Secretary must give notice of the refusal to the person.

(3) The notice must be in a form approved by the Secretary and must

be given as soon as practicable after the refusal.

200M Notification requirements for substituted days

(1) If, under section 200J, the Secretary substitutes a later day for a

person's return to Australia, the Secretary must give notice of that

decision to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order in respect of the person was given under

subsection 200C(4) or (5).

(2) If:

(a) a person makes an application under paragraph 200J(2)(a) to

substitute a later day for the person's return to Australia; and

(b) the Secretary refuses the application;

the Secretary must give notice of the refusal to the person.

(3) A notice under this section must be in a form approved by the

Secretary and must be given as soon as practicable after the

decision concerned is made.

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Subdivision E--Appeals and review in relation to departure

prohibition orders and departure authorisation

certificates

200N Appeals to courts against making of departure prohibition

orders

(1) A person aggrieved by the making of a departure prohibition order

may appeal to the Federal Court or the Federal Circuit Court

against the making of the order.

(2) This section has effect subject to Chapter III of the Constitution.

200P Jurisdiction of courts

The jurisdiction of a court under section 200N must be exercised

by a single Judge.

200Q Orders of court on appeal

A court hearing an appeal under section 200N against the making

of a departure prohibition order may, in its discretion:

(a) make an order setting aside the order; or

(b) dismiss the appeal.

200R Review of decisions

(1) Applications may be made to the Administrative Appeals Tribunal

for review of a decision of the Secretary under section 200E, 200H

or 200J.

(2) Despite any provision of Chapter 5, that Chapter does not apply in

relation to any decision of the Secretary under this Division.

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Subdivision F--Enforcement

200S Powers of officers of Customs and members of the Australian

Federal Police

(1) This section applies if an officer (within the meaning of the

Customs Act 1901), or a member of the Australian Federal Police,

believes on reasonable grounds that:

(a) a person is about to depart from Australia for a foreign

country; and

(b) a departure prohibition order in respect of the person is in

force; and

authorisation certificate.

(2) The officer or member may:

(a) take such steps as are reasonably necessary to prevent the

person's departure, including, but not limited to, steps to

prevent the person going on board, or to remove the person

from, a vessel or aircraft in which the officer or member

believes on reasonable grounds the departure will take place;

and

(b) require the person to answer questions or produce documents

to the officer or member for the purposes of working out

whether:

(i) a departure prohibition order in respect of the person is

in force; and

(ii) if such an order in respect of the person is in force--

whether the person's departure is authorised by a

departure authorisation certificate.

(3) A person commits an offence if:

(a) the person is subject to a requirement under paragraph (2)(b);

and

(b) the person refuses or fails to comply with the requirement.

Penalty: 30 penalty units.

(4) Subsection (3) does not apply if the person answers the question or

produces the document to the extent that the person is capable of

answering the question or producing the document.

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Note:

A defendant bears an evidential burden in relation to the matters

mentioned in subsection (4): see subsection 13.3(3) of the Criminal

Code.

200T Privilege against self-incrimination

(1) An individual is not excused from answering a question, or

producing a document, under paragraph 200S(2)(b) on the ground

that the answer to the question or the production of the document

might tend to incriminate the individual or expose the individual to

a penalty.

(2) However:

(a) the answer given or document produced; and

(b) answering the question or producing the document; and

indirect consequence of the answering of the question or

producing the document;

are not admissible in evidence against the individual in any

criminal proceedings, other than proceedings under section 137.1

or 137.2 of the Criminal Code in relation to answering the question

or producing the document.

200U Production of authority to depart

(1) If:

(a) a departure prohibition order in respect of a person is in

force; and

(b) the person is about to depart from Australia for a foreign

country; and

authorisation certificate;

an officer (within the meaning of the Customs Act 1901), or a

member of the Australian Federal Police, may request the person to

give a copy of the certificate to the officer or member for

inspection.

(2) A person commits an offence of strict liability if:

(a) an officer (within the meaning of the Customs Act 1901), or a

member of the Australian Federal Police, has made a request

of the person under subsection (1); and

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(b) the person refuses or fails to comply with the request.

Penalty for contravention of this subsection: 5 penalty units.

Subdivision G--Interpretation

200V Interpretation--departure from Australia for foreign country

A reference in this Division to the departure of a person from

Australia for a foreign country is a reference to the departure of the

person from Australia for a foreign country, whether or not the

person intends to return to Australia.

200W Meaning of Australia

For the purposes of this Division, Australia, when used in a

geographical sense, includes the external Territories.

9 Chapter 5 (after the heading)

Insert:

Note:

This Chapter does not apply in relation to any decision of the Secretary under

Division 7A of Part 4-3 (about departure prohibition orders).

Social Security Act 1991

10 Subsection 23(1) (definition of Australia, before the note)

Insert:

Note 1:

In Part 5.5 of Chapter 5 (about departure prohibition orders),

Australia has an extended meaning.

11 Subsection 23(1) (note at the end of the definition of

Australia)

Omit "Note", substitute "Note 2".

12 Subsection 23(1)

Insert:

departure authorisation certificate means a certificate under

Division 4 of Part 5.5.

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departure prohibition order means an order under Division 1 of

Part 5.5 (including such an order varied under Division 3 of that

Part).

13 At the end of Chapter 5

Add:

Part 5.5--Departure prohibition orders

Division 1--Secretary may make departure prohibition

orders

1240 Secretary may make departure prohibition orders

(1) The Secretary may make an order (a departure prohibition order)

prohibiting a person from departing from Australia for a foreign

country if:

(a) the person has one or more debts to the Commonwealth

under the social security law; and

(b) there are not arrangements satisfactory to the Secretary for

the one or more debts to be wholly paid; and

desirable to make the order for the purpose of ensuring that

the person does not depart from Australia for a foreign

country without:

(i) having wholly paid the one or more debts; or

(ii) there being arrangements satisfactory to the Secretary

for the one or more debts to be wholly paid.

Matters to be taken into account in making order

(2) Before making an order under this section, the Secretary must have

regard to the following matters:

(a) the capacity of the person to pay the one or more debts;

(b) whether any action has been taken to recover any such debt,

and the outcome of the recovery action;

unpaid after the day on which it became due and payable;

(d) such other matters as the Secretary considers appropriate.

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Form of order

(3) A departure prohibition order must be in a form approved by the

Secretary.

Division 2--Departure from Australia of debtors

prohibited

1241 Departure from Australia of debtors prohibited

A person must not depart from Australia for a foreign country if:

(a) a departure prohibition order in respect of the person is in

force, and the person knows that the order is in force, or is

reckless as to whether the order is in force; and

(b) the person's departure is not authorised by a departure

authorisation certificate, and the person knows that the

departure is not authorised by such a certificate, or is reckless

as to whether the departure is authorised by such a certificate.

Penalty: Imprisonment for 12 months.

Division 3--Other rules for departure prohibition orders

1242 Notification requirements for departure prohibition orders

(1) This section applies if the Secretary makes a departure prohibition

order in respect of a person.

Notifying person of order

(2) The Secretary must notify the person that the order has been made.

(3) The notice must be in a form approved by the Secretary and must

be given as soon as practicable after making the order.

Notifying other persons of order

(4) Unless the Secretary is satisfied that the person is an Australian

citizen, the Secretary must give the Secretary of the Department

administered by the Minister administering the Migration Act 1958

a copy of the order, and information likely to facilitate

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identification of the person, for the purposes of administering that

Act.

(5) The Secretary must also give a copy of the order, and information

likely to facilitate identification of the person for the purposes of

this Part, to such other persons as the Secretary considers

appropriate in the circumstances, being persons declared in an

instrument under subsection (6).

(6) The Secretary may, by legislative instrument, declare persons for

the purposes of subsection (5).

(7) The Secretary must give a copy of the order or information under

subsection (4) or (5) as soon as practicable after making the order.

1243 Operation of departure prohibition order

(1) A departure prohibition order comes into force when it is made,

and continues in force until it is revoked, or until it is set aside by a

court.

Note:

Division 5 deals with appeals to the Federal Court of Australia or the

Federal Circuit Court of Australia against the making of departure

prohibition orders.

(2) However, a departure prohibition order in respect of a person is not

in force during any period when a deportation order in respect of

the person is in force under the Migration Act 1958.

1244 Revocation and variation of departure prohibition orders

(1) The Secretary must revoke a departure prohibition order in respect

of a person if:

(a) the person no longer has any debts to the Commonwealth

under the social security law; or

(b) there are arrangements satisfactory to the Secretary for the

one or more debts the person has to the Commonwealth

under the social security law to be wholly paid; or

person has to the Commonwealth under the social security

law are completely irrecoverable.

(2) The Secretary may revoke or vary a departure prohibition order in

respect of a person if the Secretary considers it desirable to do so.

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(3) A revocation or variation, under this section, of a departure

prohibition order may be:

(a) on application by the person in a form approved by the

Secretary; or

(b) on the Secretary's own initiative.

1245 Notification requirements for revocations and variations

(1) If the Secretary revokes or varies a departure prohibition order in

respect of a person, the Secretary must give notice of the

revocation or variation to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order was given under subsection 1242(4) or (5).

(2) If:

(a) a person makes an application under paragraph 1244(3)(a)

for the revocation or variation of a departure prohibition

order; and

(b) the Secretary refuses to revoke or vary the order;

the Secretary must give notice of the refusal to the person.

(3) A notice under this section must be in a form approved by the

Secretary and must be given as soon as practicable after the

decision concerned is made.

Division 4--Departure authorisation certificates

1246 Application for departure authorisation certificate

(1) A person in respect of whom a departure prohibition order is in

force may apply for a certificate (a departure authorisation

certificate) authorising the person to depart from Australia for a

foreign country.

(2) The application must be in a form approved by the Secretary.

1247 When Secretary must issue departure authorisation certificate

(1) This section applies if a person makes an application under

section 1246 for a departure authorisation certificate.

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(2) The Secretary must issue the departure authorisation certificate if

the Secretary is satisfied:

(a) that, if the certificate is issued:

(i) it is likely that the person will depart from Australia and

return to Australia within a period that the Secretary

considers appropriate; and

(ii) it is likely that, within a period that the Secretary

considers appropriate, the Secretary will be required by

subsection 1244(1) to revoke the departure prohibition

order in respect of the person; and

(b) that it is not necessary for the person to give security under

section 1248 for the person's return to Australia.

(3) If the Secretary is not satisfied as mentioned in subsection (2), the

Secretary must issue the departure authorisation certificate if:

(a) the person has given security under section 1248 for the

person's return to Australia; or

(b) if the person is unable to give such security, the Secretary is

satisfied:

(i) that the certificate should be issued on humanitarian

grounds; or

(ii) that refusing to issue the certificate will be detrimental

to Australia's interests.

1248 Security for person's return to Australia

(1) A person may give such security as the Secretary considers

appropriate by bond, deposit or any other means, for the person's

return to Australia by such day as is agreed by the person and the

Secretary and is specified in the departure authorisation certificate.

(2) The Secretary may substitute a later day for the day mentioned in

subsection (1):

(a) on application by the person in a form approved by the

Secretary; or

(b) on the Secretary's own initiative.

(3) The Secretary may refuse an application by a person to substitute a

later day if:

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(a) the person refuses to increase the value of the security

already given to a level that the Secretary considers

appropriate; or

(b) the person refuses to give such further security as the

Secretary considers appropriate; or

substitute the later day.

1249 What departure authorisation certificate must authorise

(1) A departure authorisation certificate in respect of a person must

authorise the departure of the person on or before the seventh day

after a day specified in the certificate.

(2) The day specified in the certificate must be a day that is after the

day on which the certificate is issued, but not more than 7 days

after that day.

1250 Notification requirements for departure authorisation

certificates

(1) If the Secretary issues a departure authorisation certificate in

respect of a person, the Secretary must, as soon as practicable, give

a copy of the certificate to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order in respect of the person was given under

subsection 1242(4) or (5).

(2) If:

(a) a person makes an application under section 1246 for a

departure authorisation certificate; and

(b) the Secretary refuses to issue the certificate;

the Secretary must give notice of the refusal to the person.

(3) The notice must be in a form approved by the Secretary and must

be given as soon as practicable after the refusal.

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1251 Notification requirements for substituted days

(1) If, under section 1248, the Secretary substitutes a later day for a

person's return to Australia, the Secretary must give notice of that

decision to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order in respect of the person was given under

subsection 1242(4) or (5).

(2) If:

(a) a person makes an application under paragraph 1248(2)(a) to

substitute a later day for the person's return to Australia; and

(b) the Secretary refuses the application;

the Secretary must give notice of the refusal to the person.

(3) A notice under this section must be in a form approved by the

Secretary and must be given as soon as practicable after the

decision concerned is made.

Division 5--Appeals and review in relation to departure

prohibition orders and departure authorisation

certificates

1252 Appeals to courts against making of departure prohibition

orders

(1) A person aggrieved by the making of a departure prohibition order

may appeal to the Federal Court of Australia or the Federal Circuit

Court of Australia against the making of the order.

(2) This section has effect subject to Chapter III of the Constitution.

1253 Jurisdiction of courts

The jurisdiction of a court under section 1252 must be exercised by

a single Judge.

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1254 Orders of court on appeal

A court hearing an appeal under section 1252 against the making

of a departure prohibition order may, in its discretion:

(a) make an order setting aside the order; or

(b) dismiss the appeal.

1255 Review of decisions

(1) Applications may be made to the Administrative Appeals Tribunal

for review of a decision of the Secretary under section 1244, 1247

or 1248.

(2) Despite any provision of Parts 4 and 4A of the Administration Act,

those Parts do not apply in relation to any decision of the Secretary

under this Part.

Division 6--Enforcement

1256 Powers of officers of Customs and members of the Australian

Federal Police

(1) This section applies if an officer (within the meaning of the

Customs Act 1901), or a member of the Australian Federal Police,

believes on reasonable grounds that:

(a) a person is about to depart from Australia for a foreign

country; and

(b) a departure prohibition order in respect of the person is in

force; and

authorisation certificate.

(2) The officer or member may:

(a) take such steps as are reasonably necessary to prevent the

person's departure, including, but not limited to, steps to

prevent the person going on board, or to remove the person

from, a vessel or aircraft in which the officer or member

believes on reasonable grounds the departure will take place;

and

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(b) require the person to answer questions or produce documents

to the officer or member for the purposes of working out

whether:

(i) a departure prohibition order in respect of the person is

in force; and

(ii) if such an order in respect of the person is in force--

whether the person's departure is authorised by a

departure authorisation certificate.

(3) A person commits an offence if:

(a) the person is subject to a requirement under paragraph (2)(b);

and

(b) the person refuses or fails to comply with the requirement.

Penalty: 30 penalty units.

(4) Subsection (3) does not apply if the person answers the question or

produces the document to the extent that the person is capable of

answering the question or producing the document.

Note:

A defendant bears an evidential burden in relation to the matters

mentioned in subsection (4): see subsection 13.3(3) of the Criminal

Code.

1257 Privilege against self-incrimination

(1) An individual is not excused from answering a question, or

producing a document, under paragraph 1256(2)(b) on the ground

that the answer to the question or the production of the document

might tend to incriminate the individual or expose the individual to

a penalty.

(2) However:

(a) the answer given or document produced; and

(b) answering the question or producing the document; and

indirect consequence of the answering of the question or

producing the document;

are not admissible in evidence against the individual in any

criminal proceedings, other than proceedings under section 137.1

or 137.2 of the Criminal Code in relation to answering the question

or producing the document.

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1258 Production of authority to depart

(1) If:

(a) a departure prohibition order in respect of a person is in

force; and

(b) the person is about to depart from Australia for a foreign

country; and

authorisation certificate;

an officer (within the meaning of the Customs Act 1901), or a

member of the Australian Federal Police, may request the person to

give a copy of the certificate to the officer or member for

inspection.

(2) A person commits an offence of strict liability if:

(a) an officer (within the meaning of the Customs Act 1901), or a

member of the Australian Federal Police, has made a request

of the person under subsection (1); and

(b) the person refuses or fails to comply with the request.

Penalty for contravention of this subsection: 5 penalty units.

Division 7--Interpretation

1259 Interpretation--departure from Australia for foreign country

A reference in this Part to the departure of a person from Australia

for a foreign country is a reference to the departure of the person

from Australia for a foreign country, whether or not the person

intends to return to Australia.

1260 Meaning of Australia

(1) For the purposes of this Part, Australia, when used in a

geographical sense, includes the external Territories.

(2) For the purposes of this section:

(a) the definition of external Territory in subsection 23(1) does

not apply; and

(b) external Territory has the meaning given by section 2B of

the Acts Interpretation Act 1901.

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Student Assistance Act 1973

14 Subsection 3(1) (at the end of the definition of Australia)

Add:

Note:

In Division 4 of Part 6 (about departure prohibition orders), Australia

has an extended meaning.

15 Subsection 3(1)

Insert:

departure authorisation certificate means a certificate under

Subdivision D of Division 4 of Part 6.

departure prohibition order means an order under Subdivision A

of Division 4 of Part 6 (including such an order varied under

Subdivision C of that Division).

16 At the end of Part 6

Add:

Division 4--Departure prohibition orders

Subdivision A--Secretary may make departure prohibition

orders

43G Secretary may make departure prohibition orders

(1) The Secretary may make an order (a departure prohibition order)

prohibiting a person from departing from Australia for a foreign

country if:

(a) the person has one or more debts to the Commonwealth

under this Part; and

(b) there are not arrangements satisfactory to the Secretary for

the one or more debts to be wholly paid; and

desirable to make the order for the purpose of ensuring that

the person does not depart from Australia for a foreign

country without:

(i) having wholly paid the one or more debts; or

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(ii) there being arrangements satisfactory to the Secretary

for the one or more debts to be wholly paid.

Matters to be taken into account in making order

(2) Before making an order under this section, the Secretary must have

regard to the following matters:

(a) the capacity of the person to pay the one or more debts;

(b) whether any action has been taken to recover any such debt,

and the outcome of the recovery action;

unpaid after the day on which it became due and payable;

(d) such other matters as the Secretary considers appropriate.

Form of order

(3) A departure prohibition order must be in a form approved by the

Secretary.

Subdivision B--Departure from Australia of debtors

prohibited

43H Departure from Australia of debtors prohibited

A person must not depart from Australia for a foreign country if:

(a) a departure prohibition order in respect of the person is in

force, and the person knows that the order is in force, or is

reckless as to whether the order is in force; and

(b) the person's departure is not authorised by a departure

authorisation certificate, and the person knows that the

departure is not authorised by such a certificate, or is reckless

as to whether the departure is authorised by such a certificate.

Penalty: Imprisonment for 12 months.

Subdivision C--Other rules for departure prohibition orders

43J Notification requirements for departure prohibition orders

(1) This section applies if the Secretary makes a departure prohibition

order in respect of a person.

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Notifying person of order

(2) The Secretary must notify the person that the order has been made.

(3) The notice must be in a form approved by the Secretary and must

be given as soon as practicable after making the order.

Notifying other persons of order

(4) Unless the Secretary is satisfied that the person is an Australian

citizen, the Secretary must give the Secretary of the Department

administered by the Minister administering the Migration Act 1958

a copy of the order, and information likely to facilitate

identification of the person, for the purposes of administering that

Act.

(5) The Secretary must also give a copy of the order, and information

likely to facilitate identification of the person for the purposes of

this Division, to such other persons as the Secretary considers

appropriate in the circumstances, being persons declared in an

instrument under subsection (6).

(6) The Secretary may, by legislative instrument, declare persons for

the purposes of subsection (5).

(7) The Secretary must give a copy of the order or information under

subsection (4) or (5) as soon as practicable after making the order.

43K Operation of departure prohibition order

(1) A departure prohibition order comes into force when it is made,

and continues in force until it is revoked, or until it is set aside by a

court.

Note:

Subdivision E deals with appeals to the Federal Court of Australia or

the Federal Circuit Court of Australia against the making of departure

prohibition orders.

(2) However, a departure prohibition order in respect of a person is not

in force during any period when a deportation order in respect of

the person is in force under the Migration Act 1958.

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43L Revocation and variation of departure prohibition orders

(1) The Secretary must revoke a departure prohibition order in respect

of a person if:

(a) the person no longer has any debts to the Commonwealth

under this Part; or

(b) there are arrangements satisfactory to the Secretary for the

one or more debts the person has to the Commonwealth

under this Part to be wholly paid; or

person has to the Commonwealth under this Part are

completely irrecoverable.

(2) The Secretary may revoke or vary a departure prohibition order in

respect of a person if the Secretary considers it desirable to do so.

(3) A revocation or variation, under this section, of a departure

prohibition order may be:

(a) on application by the person in a form approved by the

Secretary; or

(b) on the Secretary's own initiative.

43M Notification requirements for revocations and variations

(1) If the Secretary revokes or varies a departure prohibition order in

respect of a person, the Secretary must give notice of the

revocation or variation to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order was given under subsection 43J(4) or (5).

(2) If:

(a) a person makes an application under paragraph 43L(3)(a) for

the revocation or variation of a departure prohibition order;

and

(b) the Secretary refuses to revoke or vary the order;

the Secretary must give notice of the refusal to the person.

(3) A notice under this section must be in a form approved by the

Secretary and must be given as soon as practicable after the

decision concerned is made.

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Subdivision D--Departure authorisation certificates

43N Application for departure authorisation certificate

(1) A person in respect of whom a departure prohibition order is in

force may apply for a certificate (a departure authorisation

certificate) authorising the person to depart from Australia for a

foreign country.

(2) The application must be in a form approved by the Secretary.

43P When Secretary must issue departure authorisation certificate

(1) This section applies if a person makes an application under

section 43N for a departure authorisation certificate.

(2) The Secretary must issue the departure authorisation certificate if

the Secretary is satisfied:

(a) that, if the certificate is issued:

(i) it is likely that the person will depart from Australia and

return to Australia within a period that the Secretary

considers appropriate; and

(ii) it is likely that, within a period that the Secretary

considers appropriate, the Secretary will be required by

subsection 43L(1) to revoke the departure prohibition

order in respect of the person; and

(b) that it is not necessary for the person to give security under

section 43Q for the person's return to Australia.

(3) If the Secretary is not satisfied as mentioned in subsection (2), the

Secretary must issue the departure authorisation certificate if:

(a) the person has given security under section 43Q for the

person's return to Australia; or

(b) if the person is unable to give such security, the Secretary is

satisfied:

(i) that the certificate should be issued on humanitarian

grounds; or

(ii) that refusing to issue the certificate will be detrimental

to Australia's interests.

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43Q Security for person's return to Australia

(1) A person may give such security as the Secretary considers

appropriate by bond, deposit or any other means, for the person's

return to Australia by such day as is agreed by the person and the

Secretary and is specified in the departure authorisation certificate.

(2) The Secretary may substitute a later day for the day mentioned in

subsection (1):

(a) on application by the person in a form approved by the

Secretary; or

(b) on the Secretary's own initiative.

(3) The Secretary may refuse an application by a person to substitute a

later day if:

(a) the person refuses to increase the value of the security

already given to a level that the Secretary considers

appropriate; or

(b) the person refuses to give such further security as the

Secretary considers appropriate; or

substitute the later day.

43R What departure authorisation certificate must authorise

(1) A departure authorisation certificate in respect of a person must

authorise the departure of the person on or before the seventh day

after a day specified in the certificate.

(2) The day specified in the certificate must be a day that is after the

day on which the certificate is issued, but not more than 7 days

after that day.

43S Notification requirements for departure authorisation

certificates

(1) If the Secretary issues a departure authorisation certificate in

respect of a person, the Secretary must, as soon as practicable, give

a copy of the certificate to:

(a) the person; and

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(b) each person to whom a copy of the departure prohibition

order in respect of the person was given under

subsection 43J(4) or (5).

(2) If:

(a) a person makes an application under section 43N for a

departure authorisation certificate; and

(b) the Secretary refuses to issue the certificate;

the Secretary must give notice of the refusal to the person.

(3) The notice must be in a form approved by the Secretary and must

be given as soon as practicable after the refusal.

43T Notification requirements for substituted days

(1) If, under section 43Q, the Secretary substitutes a later day for a

person's return to Australia, the Secretary must give notice of that

decision to:

(a) the person; and

(b) each person to whom a copy of the departure prohibition

order in respect of the person was given under

subsection 43J(4) or (5).

(2) If:

(a) a person makes an application under paragraph 43Q(2)(a) to

substitute a later day for the person's return to Australia; and

(b) the Secretary refuses the application;

the Secretary must give notice of the refusal to the person.

(3) A notice under this section must be in a form approved by the

Secretary and must be given as soon as practicable after the

decision concerned is made.

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Subdivision E--Appeals and review in relation to departure

prohibition orders and departure authorisation

certificates

43U Appeals to courts against making of departure prohibition

orders

(1) A person aggrieved by the making of a departure prohibition order

may appeal to the Federal Court of Australia or the Federal Circuit

Court of Australia against the making of the order.

(2) This section has effect subject to Chapter III of the Constitution.

43V Jurisdiction of courts

The jurisdiction of a court under section 43U must be exercised by

a single Judge.

43W Orders of court on appeal

A court hearing an appeal under section 43U against the making of

a departure prohibition order may, in its discretion:

(a) make an order setting aside the order; or

(b) dismiss the appeal.

43X Review of decisions

(1) Applications may be made to the Administrative Appeals Tribunal

for review of a decision of the Secretary under section 43L, 43P or

43Q.

(2) Despite any provision of Part 9, that Part does not apply in relation

to any decision of the Secretary under this Division.

(3) In this section:

decision has the same meaning as in the Administrative Appeals

Tribunal Act 1975.

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Subdivision F--Enforcement

43Y Powers of officers of Customs and members of the Australian

Federal Police

(1) This section applies if an officer (within the meaning of the

Customs Act 1901), or a member of the Australian Federal Police,

believes on reasonable grounds that:

(a) a person is about to depart from Australia for a foreign

country; and

(b) a departure prohibition order in respect of the person is in

force; and

authorisation certificate.

(2) The officer or member may:

(a) take such steps as are reasonably necessary to prevent the

person's departure, including, but not limited to, steps to

prevent the person going on board, or to remove the person

from, a vessel or aircraft in which the officer or member

believes on reasonable grounds the departure will take place;

and

(b) require the person to answer questions or produce documents

to the officer or member for the purposes of working out

whether:

(i) a departure prohibition order in respect of the person is

in force; and

(ii) if such an order in respect of the person is in force--

whether the person's departure is authorised by a

departure authorisation certificate.

(3) A person commits an offence if:

(a) the person is subject to a requirement under paragraph (2)(b);

and

(b) the person refuses or fails to comply with the requirement.

Penalty: 30 penalty units.

(4) Subsection (3) does not apply if the person answers the question or

produces the document to the extent that the person is capable of

answering the question or producing the document.

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Note:

A defendant bears an evidential burden in relation to the matters

mentioned in subsection (4): see subsection 13.3(3) of the Criminal

Code.

43Z Privilege against self-incrimination

(1) An individual is not excused from answering a question, or

producing a document, under paragraph 43Y(2)(b) on the ground

that the answer to the question or the production of the document

might tend to incriminate the individual or expose the individual to

a penalty.

(2) However:

(a) the answer given or document produced; and

(b) answering the question or producing the document; and

indirect consequence of the answering of the question or

producing the document;

are not admissible in evidence against the individual in any

criminal proceedings, other than proceedings under section 137.1

or 137.2 of the Criminal Code in relation to answering the question

or producing the document.

43ZA Production of authority to depart

(1) If:

(a) a departure prohibition order in respect of a person is in

force; and

(b) the person is about to depart from Australia for a foreign

country; and

authorisation certificate;

an officer (within the meaning of the Customs Act 1901), or a

member of the Australian Federal Police, may request the person to

give a copy of the certificate to the officer or member for

inspection.

(2) A person commits an offence of strict liability if:

(a) an officer (within the meaning of the Customs Act 1901), or a

member of the Australian Federal Police, has made a request

of the person under subsection (1); and

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(b) the person refuses or fails to comply with the request.

Penalty for contravention of this subsection: 5 penalty units.

Subdivision G--Interpretation

43ZB Interpretation--departure from Australia for foreign country

A reference in this Division to the departure of a person from

Australia for a foreign country is a reference to the departure of the

person from Australia for a foreign country, whether or not the

person intends to return to Australia.

43ZC Meaning of Australia

For the purposes of this Division, Australia, when used in a

geographical sense, includes the external Territories.

17 Application provision

The amendments made by this Part apply in relation to:

(a) a debt that arises on or after the commencement of this item;

and

(b) a debt that arose before the commencement of this item, to

the extent that the debt was outstanding immediately before

that commencement.

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Part 2--Removal of 6-year limit on debt recovery

A New Tax System (Family Assistance) (Administration) Act

1999

18 Section 86

Repeal the section.

19 Subsections 87(3) and (4)

Repeal the subsections.

20 Subsection 88(1)

Omit "(1)".

21 Subsections 88(2) to (6)

Repeal the subsections.

22 Section 90

Repeal the section.

23 At the end of Division 3 of Part 4

Add:

93B No time limit on debt recovery action

For the purposes of this Part, legal proceedings, or any action

under a provision of this Part, for the recovery of a debt may be

commenced or taken at any time.

24 Paragraph 95(3)(a)

Repeal the paragraph.

Paid Parental Leave Act 2010

25 Section 183 (note)

Repeal the note.

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26 Subsection 184(1) (note 1)

Omit "Note 1", substitute "Note".

27 Subsection 184(1) (note 2)

Repeal the note.

28 Section 189

Repeal the section.

29 At the end of Division 5 of Part 4-3

Add:

192A No time limit on debt recovery action

For the purposes of this Part, legal proceedings, or any action

under a provision of this Part, for the recovery of a debt may be

commenced or taken at any time.

30 Paragraph 193(3)(a)

Omit ", for example because a time limit for recovery action under that

Division has elapsed".

Social Security Act 1991

31 Subsection 1231(2)

Omit "Subject to subsections (2A) to (2E), the", substitute "The".

32 Subsections 1231(2A) to (2E)

Repeal the subsections.

33 Subsection 1232(1)

Omit "(1)".

34 Subsections 1232(2) to (6)

Repeal the subsections.

35 Subsections 1233(7A) to (7E)

Repeal the subsections.

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36 At the end of Part 5.3

Add:

1234B No time limit on debt recovery action

For the purposes of this Chapter, legal proceedings, or any action

under a provision of this Chapter, for the recovery of a debt or

overpayment may be commenced or taken at any time.

37 Paragraphs 1236(1B)(a) and (aa)

Repeal the paragraphs.

Student Assistance Act 1973

38 At the end of Division 2 of Part 6

Add:

42B No time limit on debt recovery action

For the purposes of this Part, any action under a provision of this

Part for the recovery of a debt may be taken at any time.

39 Application provisions

--family assistance amendments

(1)

The amendments of the A New Tax System (Family Assistance)

(Administration) Act 1999 made by this Part apply in relation to:

(a) a debt that arises on or after the commencement of this item;

and

(b) a debt that arose before the commencement of this item, to

the extent that the debt was outstanding immediately before

that commencement.

(2)

Paragraph (1)(b) applies in relation to a debt only if, immediately before

the commencement of this item, action under section 84, 84A, 87, 87A

or 89, or legal proceedings under section 88, of the A New Tax System

(Family Assistance) (Administration) Act 1999 could be commenced or

taken for the recovery of the debt.

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40 Application provisions

--paid parental leave amendments

(1)

The amendments of the Paid Parental Leave Act 2010 made by this Part

apply in relation to:

(a) a debt that arises on or after the commencement of this item;

and

(b) a debt that arose before the commencement of this item, to

the extent that the debt was outstanding immediately before

that commencement.

(2)

Paragraph (1)(b) applies in relation to a debt only if, immediately before

the commencement of this item, legal proceedings under section 183, or

action under section 184, of the Paid Parental Leave Act 2010 could be

started or commenced for the recovery of the debt.

41 Application provisions

--social security amendments

(1)

The amendments of the Social Security Act 1991 made by this Part

apply in relation to:

(a) a debt or overpayment that arises on or after the

commencement of this item; and

(b) a debt or overpayment that arose before the commencement

of this item, to the extent that the debt or overpayment was

outstanding immediately before that commencement.

(2)

Paragraph (1)(b) applies in relation to a debt or overpayment only if,

immediately before the commencement of this item, action under

section 1231 or 1233, or legal proceedings under section 1232, of the

Social Security Act 1991 could be commenced for the recovery of the

debt or overpayment.

42 Application provision

--student assistance amendments

The amendment of the Student Assistance Act 1973 made by this Part

applies in relation to:

(a) a debt that arises on or after the commencement of this item;

and

(b) a debt that arose before the commencement of this item, to

the extent that the debt was outstanding immediately before

that commencement.

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Schedule 14--Parental leave payments

Part 1--Parental leave pay and dad and partner pay

to count as income

Social Security Act 1991

1 At the end of subsection 8(1A)

Add:

; or (h) an instalment of parental leave pay; or

(i) dad and partner pay.

2 Paragraphs 8(8)(d) and (da)

Repeal the paragraphs.

Veterans' Entitlements Act 1986

3 Paragraphs 5H(8)(d) and (da)

Repeal the paragraphs.

4 Application provision

The amendments made by this Part apply in relation to an instalment of

parental leave pay, or to dad and partner pay, that is paid on or after the

commencement of this item in respect of a claim for a child:

(a) who is born on or after that commencement; or

(b) who becomes entrusted to the care of a person (as mentioned

in subsection 275(2) of the Paid Parental Leave Act 2010) on

or after that commencement;

whether the claim was made before, on or after that commencement.

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Part 2--Parental leave pay and dad and partner pay

deductions to avoid overpayments

Paid Parental Leave Act 2010

5 Section 6

Insert:

income support payment has the same meaning as in section 23 of

the Social Security Act.

6 Subsection 66(2)

Omit "and 69", substitute ", 69 and 69A".

7 After section 69

Insert:

69A Deductions to avoid overpayment of income support payment

If:

(a) a payability determination that parental leave pay is payable

to a person is made; and

(b) an instalment for an instalment period becomes payable to

the person by the Secretary on a particular day; and

support payment under the social security law or Veterans'

Entitlements Act 1986 for a period (the income support

period) that falls within, or overlaps with, the instalment

period; and

(d) the Secretary is satisfied that the amount of income support

payment so paid exceeds the amount of income support

payment that would have been payable to the person for the

income support period under that law or Act had the

instalment been taken into account when working out the

amount of income support payment payable to the person for

that period under that law or Act;

then the Secretary may deduct from the instalment an amount equal

to the excess.

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Note:

A person's income is taken into account when working out the amount

of income support payment that is payable to the person under the

social security law or the Veterans' Entitlements Act 1986. An

instalment is income so payment of an instalment may reduce the

amount of income support payment that is payable to the person.

8 Subsection 70(1)

Omit "or 69", substitute ", 69 or 69A".

9 After subsection 101(3)

Insert:

When employer determination must not be made

(3A) The Secretary must not make an employer determination for a

person and the person's employer if the person is receiving an

income support payment.

10 Subsection 108(1) (after table item 2)

Insert:

The person is receiving an income

support payment.

The day of the revocation.

11 Subsection 115EG(2)

Omit "section 115EH", substitute "sections 115EH and 115EI".

12 After section 115EH

Insert:

115EI Deductions to avoid overpayment of income support payment

If:

(a) a payability determination that dad and partner pay is payable

to a person is made; and

(b) an amount of dad and partner pay relating to the person's

DAPP period becomes payable to the person by the Secretary

on a particular day; and

support payment under the social security law or Veterans'

Entitlements Act 1986 for a period (the income support

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period) that falls within, or overlaps with, the person's DAPP

period; and

(d) the Secretary is satisfied that the amount of income support

payment so paid exceeds the amount of income support

payment that would have been payable to the person for the

income support period under that law or Act had the amount

of dad and partner pay been taken into account when working

out the amount of income support payment payable to the

person for that period under that law or Act;

then the Secretary may deduct from the amount of dad and partner

pay an amount equal to the excess.

Note:

A person's income is taken into account when working out the amount

of income support payment that is payable to the person under the

social security law or the Veterans' Entitlements Act 1986. An amount

of dad and partner pay is income so payment of such an amount may

reduce the amount of income support payment that is payable to the

person.

13 Section 115EJ

After "section 115EH", insert "or 115EI".

14 Application provisions

Deductions from instalments of parental leave pay

(1)

Paragraph 69A(a) of the Paid Parental Leave Act 2010, as inserted by

this Part, applies in relation to a payability determination that is made

on or after the commencement of this item.

(2)

Paragraph 69A(b) of the Paid Parental Leave Act 2010, as inserted by

this Part, applies in relation to an instalment of parental leave pay that is

payable on or after the commencement of this item in respect of a claim

for a child:

(a) who is born on or after that commencement; or

(b) who becomes entrusted to the care of a person (as mentioned

in subsection 275(2) of the Paid Parental Leave Act 2010) on

or after that commencement;

whether the claim was made before, on or after that commencement.

Schedule 14 Parental leave payments

Part 2 Parental leave pay and dad and partner pay deductions to avoid overpayments

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Employer determinations

(3)

The amendment of section 101 of the Paid Parental Leave Act 2010

made by this Part applies in relation to claims made on or after the

commencement of this item.

(4)

The amendment of section 108 of the Paid Parental Leave Act 2010

made by this Part applies in relation to an employer determination made

before, on or after the commencement of this item, where the claim was

for a child:

(a) who was born on or after that commencement; or

(b) who became entrusted to the care of a person (as mentioned

in subsection 275(2) of the Paid Parental Leave Act 2010) on

or after that commencement;

whether the claim was made before, on or after that commencement.

Deductions from dad and partner pay

(5)

Paragraph 115EI(a) of the Paid Parental Leave Act 2010, as inserted by

this Part, applies in relation to a payability determination that is made

on or after the commencement of this item.

(6)

Paragraph 115EI(b) of the Paid Parental Leave Act 2010, as inserted by

this Part, applies in relation to an amount of dad and partner pay that is

to be paid on or after the commencement of this item in respect of a

claim for a child:

(a) who is born on or after that commencement; or

(b) who becomes entrusted to the care of a person (as mentioned

in subsection 275(2) of the Paid Parental Leave Act 2010) on

or after that commencement;

whether the claim was made before, on or after that commencement.

Fringe benefits Schedule 15

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Schedule 15--Fringe benefits

A New Tax System (Family Assistance) Act 1999

1 Clause 4 of Schedule 3

Repeal the clause, substitute:

4 Adjusted fringe benefits total

An individual's adjusted fringe benefits total for an income year is

the amount worked out using the formula:

Section 57A employer

Other employer

fringe benefits total



where:

other employer fringe benefits total is the amount that is the sum

of the following:

(a) each of the individual's reportable fringe benefits amounts

for the income year under section 135P of the Fringe Benefits

Tax Assessment Act 1986;

(b) each of the individual's reportable fringe benefits amounts

for the income year under section 135Q of the Fringe

Benefits Tax Assessment Act 1986, to the extent that section

relates to the individual's employment by an employer

described in section 58 of that Act.

section 57A employer fringe benefits total is the amount that is the

sum of each of the individual's individual quasi-fringe benefits

amounts for the income year under section 135Q of the Fringe

Benefits Tax Assessment Act 1986, to the extent that section relates

to the individual's employment by an employer described in

section 57A of that Act.

Income Tax Assessment Act 1936

2 Subsection 6(1) (definition of adjusted fringe benefits total)

Repeal the definition, substitute:

Schedule 15 Fringe benefits

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adjusted fringe benefits total, of a taxpayer for a year of income,

has the meaning given by clause 4 of Schedule 3 to the A New Tax

System (Family Assistance) Act 1999.

3 Subsection 6(1) (definition of reportable fringe benefits

total)

Repeal the definition.

Social Security Act 1991

4 Subpoint 1067G-F11(2)

Repeal the subpoint, substitute:

1067G-F11(2) A parent's adjusted fringe benefits total for a tax year is the

amount worked out using the formula:

Section 57A employer

Other employer

fringe benefits total



where:

other employer fringe benefits total is the amount that is the sum

of the following:

(a) each of the parent's reportable fringe benefits amounts for the

tax year under section 135P of the Fringe Benefits Tax

Assessment Act 1986;

(b) each of the parent's reportable fringe benefits amounts for the

tax year under section 135Q of the Fringe Benefits Tax

Assessment Act 1986, to the extent that section relates to the

parent's employment by an employer described in section 58

of that Act.

section 57A employer fringe benefits total is the amount that is the

sum of each of the parent's individual quasi-fringe benefits

amounts for the tax year under section 135Q of the Fringe Benefits

Tax Assessment Act 1986, to the extent that section relates to the

parent's employment by an employer described in section 57A of

that Act.

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5 Application provisions

Family tax benefit

(1)

The amendments made by this Schedule apply in relation to working

out the rate of family tax benefit under the A New Tax System (Family

Assistance) Act 1999 for days on or after the commencement of this

item.

Child care benefit

(2)

The amendments made by this Schedule apply in relation to working

out the rate of child care benefit under the A New Tax System (Family

Assistance) Act 1999 for days on or after the first Monday occurring on

or after the commencement of this item.

Stillborn baby payment

(3)

The amendments made by this Schedule apply in relation to working

out an individual's eligibility for stillborn baby payment under the A

New Tax System (Family Assistance) Act 1999 for a child delivered on

or after the commencement of this item.

Parental leave pay and dad and partner pay

(4)

The amendments made by this Schedule apply in relation to a claim for

parental leave pay, or dad and partner pay, under the Paid Parental

Leave Act 2010 for a child:

(a) who is born on or after the commencement of this item; or

(b) who becomes entrusted to the care of a person (as mentioned

in subsection 275(2) of the Paid Parental Leave Act 2010) on

or after the commencement of this item;

whether the claim was made before, on or after that commencement.

Youth allowance

(5)

The amendments made by this Schedule apply in relation to working

out the rate of youth allowance under the Social Security Act 1991 for

days on or after the commencement of this item.

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Low income supplement

(6)

The amendments made by this Schedule do not apply in relation to

working out a person's qualification for a low income supplement under

Division 3 of Part 2.18A of the Social Security Act 1991 for the 2016-17

income year or an earlier income year.

Low income superannuation contribution

(7)

The amendments made by this Schedule do not apply in relation to

working out whether a low income superannuation contribution in

respect of a person is payable under Part 2A of the Superannuation

(Government Co-contribution for Low Income Earners) Act 2003 for

the 2016-17 income year or an earlier income year.

Rebate for medical expenses

(8)

The amendments made by this Schedule apply in relation to working

out whether a taxpayer is entitled to a rebate of tax, and the amount of

the rebate, under section 159P of the Income Tax Assessment Act 1936

in respect of a year of income beginning on or after the commencement

of this item.

Rebate for low income aged persons and pensioners

(9)

The amendments made by this Schedule apply in relation to working

out whether a taxpayer is entitled to a rebate of tax under

section 160AAAA of the Income Tax Assessment Act 1936 in respect of

a year of income beginning on or after the commencement of this item.

(10)

The amendments made by this Schedule apply in relation to working

out whether a trustee is entitled to a rebate of tax under

section 160AAAB of the Income Tax Assessment Act 1936 in respect of

a year of income beginning on or after the commencement of this item.

Dependant (invalid and carer) tax offset

(11)

The amendments made by this Schedule apply in relation to working

out whether an individual is entitled to a tax offset, and the amount of

the offset, under section 61-10 of the Income Tax Assessment Act 1997

for an income year beginning on or after the commencement of this

item.

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Dependant (non-student child under 21 or student) notional tax

offset

(12)

The amendments made by this Schedule apply in relation to working

out the amount of an individual's notional tax offset under

Subdivision 961-A of the Income Tax Assessment Act 1997 for an

income year beginning on or after the commencement of this item.

Schedule 16 Carer allowance

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Schedule 16--Carer allowance

Social Security (Administration) Act 1999

1 Clauses 16 and 17 of Schedule 2

Repeal the clauses.

2 Application provision

The amendment made by this Schedule applies in relation to claims for

carer allowance that are made on or after the commencement of this

Schedule.

Indexation of family tax benefit and parental leave thresholds Schedule 17

No. , 2016

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175

Schedule 17--Indexation of family tax benefit

and parental leave thresholds

A New Tax System (Family Assistance) Act 1999

1 Subclause 3(7) of Schedule 4

Omit "and 1 July 2016", substitute ", 1 July 2016, 1 July 2017, 1 July

2018 and 1 July 2019".

Paid Parental Leave Act 2010

2 Section 30

Omit "30 June 2017", substitute "30 June 2020".

3 Paragraph 41(a)

Omit "1 July 2017", substitute "1 July 2020".

4 Subsection 42(1)

Omit "1 July 2017", substitute "1 July 2020".

5 Section 115CA

Omit "30 June 2017", substitute "30 June 2020".

Schedule 18 Pension means testing for aged care residents

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Schedule 18--Pension means testing for aged

care residents

Social Security Act 1991

1 At the end of paragraphs 8(8)(zn), (zna) and (znaa)

Add:

Note 3:

See subsections (10A) and (10B) for the circumstances in which this

paragraph does not apply in relation to a person who enters a

residential care service or a flexible care service on or after the

commencement of those subsections.

2 After subsection 8(10)

Insert:

(10A) Paragraphs (8)(zn), (zna) and (znaa) do not apply in relation to a

person who first enters a residential care service or a flexible care

service on or after the commencement of this subsection.

(10B) Paragraphs (8)(zn), (zna) and (znaa) do not apply, and never again

apply, in relation to a person if:

(a) the person enters a residential care service or a flexible care

service on or after the commencement of this subsection; and

(b) that entry occurs more than 28 days after the day the person

last ceased being provided with residential care or flexible

care through a residential care service or a flexible care

service (other than because the person was on leave).

(10C) An expression used in subsection (10A) or (10B) and in the Aged

Care Act 1997 has the same meaning in that subsection as in that

Act.

3 After subsection 11A(8)

Insert:

(8A) Subsection (8) does not apply in relation to a person who first

enters a residential care service or a flexible care service on or after

the commencement of this subsection.

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(8B) Subsection (8) does not apply, and never again applies, in relation

to a person if:

(a) the person enters a residential care service or a flexible care

service on or after the commencement of this subsection; and

(b) that entry occurs more than 28 days after the day the person

last ceased being provided with residential care or flexible

care through a residential care service or a flexible care

service (other than because the person was on leave).

(8C) An expression used in subsection (8A) or (8B) and in the Aged

Care Act 1997 has the same meaning in that subsection as in that

Act.

Veterans' Entitlements Act 1986

4 At the end of paragraph 5H(8)(nc)

Add:

Note 4:

See subsections (11A) and (11B) for the circumstances in which this

paragraph does not apply in relation to a person who enters a

residential care service or a flexible care service on or after the

commencement of those subsections.

5 At the end of paragraph 5H(8)(nd)

Add:

Note 1:

For rent, see subsection 5N(2).

Note 2:

Under subsections 5LA(8) and (9), the principal home of a person in a

care situation may be a place other than the place where the person

receives care.

Note 3:

See subsections (11A) and (11B) for the circumstances in which this

paragraph does not apply in relation to a person who enters a

residential care service or a flexible care service on or after the

commencement of those subsections.

6 At the end of paragraph 5H(8)(nf)

Add:

Note 3:

See subsections (11A) and (11B) for the circumstances in which this

paragraph does not apply in relation to a person who enters a

residential care service or a flexible care service on or after the

commencement of those subsections.

Schedule 18 Pension means testing for aged care residents

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7 After subsection 5H(11)

Insert:

(11A) Paragraphs (8)(nc), (nd) and (nf) do not apply in relation to a

person who first enters a residential care service or a flexible care

service on or after the commencement of this subsection.

(11B) Paragraphs (8)(nc), (nd) and (nf) do not apply, and never again

apply, in relation to a person if:

(a) the person enters a residential care service or a flexible care

service on or after the commencement of this subsection; and

(b) that entry occurs more than 28 days after the day the person

last ceased being provided with residential care or flexible

care through a residential care service or a flexible care

service (other than because the person was on leave).

(11C) An expression used in subsection (11A) or (11B) and in the Aged

Care Act 1997 has the same meaning in that subsection as in that

Act.

8 After subsection 5LA(8)

Insert:

(8A) Subsection (8) does not apply in relation to a person who first

enters a residential care service or a flexible care service on or after

the commencement of this subsection.

(8B) Subsection (8) does not apply, and never again applies, in relation

to a person if:

(a) the person enters a residential care service or a flexible care

service on or after the commencement of this subsection; and

(b) that entry occurs more than 28 days after the day the person

last ceased being provided with residential care or flexible

care through a residential care service or a flexible care

service (other than because the person was on leave).

(8C) An expression used in subsection (8A) or (8B) and in the Aged

Care Act 1997 has the same meaning in that subsection as in that

Act.

Employment income Schedule 19

No. , 2016

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Schedule 19--Employment income

A New Tax System (Family Assistance) Act 1999

1 Subsection 3(1) (subparagraph (b)(i) of the definition of

receiving)

Before "is taken", insert "except in relation to clause 38L of Schedule 1

to this Act--".

Social Security Act 1991

2 Paragraph 23(4AA)(e)

Repeal the paragraph, substitute:

(e) subsection 1061ZK(5);

3 Paragraph 1067G-F3(c)

Omit "Scheme; or", substitute "Scheme.".

4 Paragraph 1067G-F3(d)

Repeal the paragraph.

5 Application provisions

(1)

The amendment made by item 1 applies in relation to working out the

rate of family tax benefit for days on or after the commencement of that

item.

(2)

The amendments made by items 2 to 4 apply in relation to working out

the rate of youth allowance for days on or after the commencement of

those items.

Schedule 20 Psychiatric confinement

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Schedule 20--Psychiatric confinement

Social Security Act 1991

1 Subsection 4(11) (note 3)

Omit "and (9)", substitute "to (9D)".

2 Subsection 23(1) (definition of psychiatric confinement)

Omit "and (9)", substitute "to (9D)".

3 Subsection 23(1)

Insert:

serious offence: see subsections (9E) and (9F).

4 Subsection 23(8)

Omit "subsection (9)", substitute "subsections (9) and (9B)".

5 Subsection 23(9)

Omit "The", substitute "Subject to subsection (9A), the".

6 After subsection 23(9)

Insert:

(9A) Subsection (9) does not apply in relation to a person whose

confinement in a psychiatric institution is because the person has

been charged with a serious offence.

Note:

For serious offence see subsections (9E) and (9F).

(9B) The confinement of a person in a psychiatric institution, because

the person has been charged with a serious offence, during a period

that is a period of integration back into the community for the

person is not to be taken to be psychiatric confinement.

(9C) For the purposes of subsection (9B), the question whether a period

is a period of integration back into the community for a person is to

be worked out in accordance with a legislative instrument made by

the Minister for the purposes of this subsection.

(9D) If:

Psychiatric confinement Schedule 20

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(a) on one or more days, but not all days, in what the Secretary is

satisfied would be an instalment period of a person if the

person were receiving a social security periodic payment, the

person is undergoing psychiatric confinement because the

person has been charged with a serious offence; and

(b) the remaining days in that period would, apart from this

subsection, not be days on which the person is undergoing

psychiatric confinement;

then the remaining days in that period are taken to be days on

which the person is undergoing psychiatric confinement because

the person has been charged with a serious offence.

Serious offence

(9E) An offence is a serious offence if it is:

(a) murder or attempted murder; or

(b) manslaughter; or

(9F) An offence is also a serious offence if:

(a) it is an offence against a law of the Commonwealth, or a

State or Territory, punishable by imprisonment for life or for

a period, or maximum period, of at least 7 years; and

(b) the particular conduct constituting the offence involves:

(i) loss of a person's life or serious risk of loss of a

person's life; or

(ii) serious personal injury or serious risk of serious

personal injury; or

(iii) serious damage to property in circumstances

endangering the safety of a person.

7 Paragraph 92Q(2)(c)

Omit "and (9)", substitute "to (9D)".

8 Section 1158 (note 2)

Omit "and (9)", substitute "to (9D)".

9 Subsection 1159A(1) (note 2)

Omit "and (9)", substitute "to (9D)".

Schedule 20 Psychiatric confinement

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10 Application provisions

(1)

Subsections 23(9A) to (9C) of the Social Security Act 1991, as inserted

by this Schedule, apply on and after the commencement of this item in

relation to a person's confinement in a psychiatric institution on or after

that commencement (whether that confinement began, and whether the

person was charged with a serious offence, before, on or after that

commencement).

(2)

Subsection 23(9D) of the Social Security Act 1991, as inserted by this

Schedule, applies in relation to a period beginning on or after the

commencement of this item (whether the person's psychiatric

confinement began, and whether the person was charged with a serious

offence, before, on or after that commencement).

Closing carbon tax compensation to new welfare recipients Schedule 21

Energy supplement under the family assistance law Part 1

No. , 2016

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183

Schedule 21--Closing carbon tax

compensation to new welfare

recipients

Part 1--Energy supplement under the family

assistance law

A New Tax System (Family Assistance) Act 1999

1 At the end of subsection 58(2)

Add:

Note:

Paragraph (b) does not apply to certain approved care organisations:

see subsections (2C) and (2D).

2 After subsection 58(2B)

Insert:

(2C) Paragraph (2)(b) does not apply in relation to an approved care

organisation on or after the commencement of this subsection

unless the organisation was entitled to be paid family tax benefit in

respect of 19 September 2016.

(2D) If:

(a) the approved care organisation was entitled to be paid family

tax benefit in respect of 19 September 2016; and

(b) the organisation ceases to be entitled to be paid family tax

benefit in respect of a day on or after 20 September 2016;

then paragraph (2)(b) does not apply, and never again applies, to

the organisation from:

subsection--the start of the day this subsection commences;

(d) if the cessation occurred on or after the commencement of

this subsection--the start of the day of that cessation.

3 After subsection 58A(1)

Insert:

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(1A) An individual cannot make an election under subsection (1) on a

day on or after the commencement of this subsection unless energy

supplement (Part A) or energy supplement (Part B) is used to work

out the rate of the individual's family tax benefit in respect of that

day.

4 After subsection 58A(3)

Insert:

(3AA) An election ceases to be in force if, disregarding the election,

neither energy supplement (Part A) nor energy supplement (Part B)

would be used to work out the rate of the individual's family tax

benefit.

5 Application provision

Subsection 58A(3AA) of the A New Tax System (Family Assistance) Act

1999, as inserted by this Part, applies on and after the commencement

of this item in relation to elections made before, on or after that

commencement.

6 Clause 3 of Schedule 1

After "operation of clauses 5,", insert "6A,".

7 Clause 3 of Schedule 1 (at the end of step 1 of the method

statement)

Add:

Note:

Paragraph (cb) does not apply to certain individuals: see

clause 6A.

8 At the end of Division 1 of Part 2 of Schedule 1

Add:

6A Energy supplement

(1) Paragraph (cb) of step 1 of the method statement in clause 3 does

not apply to an individual on or after the commencement of this

clause unless:

(a) the individual was entitled to be paid family tax benefit in

respect of 19 September 2016; and

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(b) the individual's Part A rate of family tax benefit in respect of

19 September 2016 was not worked out under Part 3A of this

Schedule.

(2) However, if:

(a) the individual ceases to be entitled to be paid family tax

benefit in respect of a day (the applicable day) on or after

20 September 2016; or

(b) the individual's Part A rate of family tax benefit is worked

out under Part 3A of this Schedule in respect of a day (the

applicable day) on or after 20 September 2016;

then paragraph (cb) of step 1 of the method statement in clause 3

does not apply, and never again applies, to the individual from:

clause--the start of the day this clause commences; or

(d) if the applicable day is on or after the commencement of this

clause--the start of the applicable day.

9 Clause 24HA of Schedule 1

Before "The", insert "(1)".

10 At the end of clause 24HA of Schedule 1

Add:

(2) However, the individual's above base energy supplement amount

for the maintenance income is nil if paragraph (cb) of step 1 of the

method statement in clause 3 does not apply to the individual

because of clause 6A.

11 Clause 24RA of Schedule 1

Before "The", insert "(1)".

12 At the end of clause 24RA of Schedule 1

Add:

(2) However, the individual's energy supplement amount for the

maintenance income is nil if paragraph (e) of step 1 of the method

statement in clause 25 does not apply to the individual because of

clause 25C.

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13 Clause 25 of Schedule 1

Omit "operation of clause 25A", substitute "operation of clauses 25A

and 25C".

14 Clause 25 of Schedule 1 (at the end of step 1 of the

method statement)

Add:

Note:

Paragraph (e) does not apply to certain individuals: see

clause 25C.

15 At the end of Division 1 of Part 3 of Schedule 1

Add:

25C Energy supplement

(1) Paragraph (e) of step 1 of the method statement in clause 25 does

not apply to an individual on or after the commencement of this

clause unless:

(a) the individual was entitled to be paid family tax benefit in

respect of 19 September 2016; and

(b) the individual's Part A rate of family tax benefit in respect of

19 September 2016 was not worked out under Part 3A of this

Schedule.

(2) However, if:

(a) the individual ceases to be entitled to be paid family tax

benefit in respect of a day (the applicable day) on or after

20 September 2016; or

(b) the individual's Part A rate of family tax benefit is worked

out under Part 3A of this Schedule in respect of a day (the

applicable day) on or after 20 September 2016;

then paragraph (e) of step 1 of the method statement in clause 25

does not apply, and never again applies, to the individual from:

clause--the start of the day this clause commences; or

(d) if the applicable day is on or after the commencement of this

clause--the start of the applicable day.

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16 Subclause 29(1) of Schedule 1

Omit "The individual's Part B rate", substitute "Subject to

clause 29AA, the individual's Part B rate".

17 At the end of subclause 29(1) of Schedule 1

Add:

Note:

Paragraph (c) does not apply to certain individuals: see clause 29AA.

18 Subclause 29(2) of Schedule 1 (at the end of step 1 of the

method statement)

Add:

Note:

Paragraph (c) does not apply to certain individuals: see

clause 29AA.

19 At the end of Subdivision A of Division 1 of Part 4 of

Schedule 1

Add:

29AA Energy supplement

(1) Paragraph 29(1)(c) of this Schedule, or paragraph (c) of step 1 of

the method statement in subclause 29(2) of this Schedule, does not

apply to an individual on or after the commencement of this clause

unless:

(a) the individual was entitled to be paid family tax benefit in

respect of 19 September 2016; and

(b) the individual's Part A rate of family tax benefit in respect of

19 September 2016 was not worked out under Part 3A of this

Schedule.

(2) However, if:

(a) the individual ceases to be entitled to be paid family tax

benefit in respect of a day (the applicable day) on or after

20 September 2016; or

(b) the individual's Part A rate of family tax benefit is worked

out under Part 3A of this Schedule in respect of a day (the

applicable day) on or after 20 September 2016;

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then paragraph 29(1)(c) of this Schedule, or paragraph (c) of step 1

of the method statement in subclause 29(2) of this Schedule, does

not apply, and never again applies, to the individual from:

clause--the start of the day this clause commences; or

(d) if the applicable day is on or after the commencement of this

clause--the start of the applicable day.

20 Subclause 29A(2) of Schedule 1

Omit "The Part B rate", substitute "Subject to clause 29D, the Part B

rate".

21 At the end of subclause 29A(2) of Schedule 1

Add:

Note:

Paragraph (c) does not apply to certain individuals: see clause 29D.

22 At the end of Subdivision B of Division 1 of Part 4 of

Schedule 1

Add:

29D Energy supplement

(1) Paragraph 29A(2)(c) of this Schedule does not apply to an

individual on or after the commencement of this clause unless:

(a) the individual was entitled to be paid family tax benefit in

respect of 19 September 2016; and

(b) the individual's Part A rate of family tax benefit in respect of

19 September 2016 was not worked out under Part 3A of this

Schedule.

(2) However, if:

(a) the individual ceases to be entitled to be paid family tax

benefit in respect of a day (the applicable day) on or after

20 September 2016; or

(b) the individual's Part A rate of family tax benefit is worked

out under Part 3A of this Schedule in respect of a day (the

applicable day) on or after 20 September 2016;

then paragraph 29A(2)(c) of this Schedule does not apply, and

never again applies, to the individual from:

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clause--the start of the day this clause commences; or

(d) if the applicable day is on or after the commencement of this

clause--the start of the applicable day.

23 At the end of subclause 31B(1) of Schedule 1

Add:

Note:

For certain individuals, energy supplement (Part B) is not to be added

in working out the Part B rate: see clauses 29AA and 29D.

24 At the end of subclause 38AA(1) of Schedule 1

Add:

Note:

For certain individuals, energy supplement (Part A) is not to be added

in working out the Part A rate: see clause 6A.

25 At the end of subclause 38AF(1) of Schedule 1

Add:

Note:

For certain individuals, energy supplement (Part A) is not to be added

in working out the Part A rate: see clause 25C.

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Part 2--Energy supplement under the social security

law

Social Security Act 1991

26 Subsection 17(8) (formula)

Repeal the formula, substitute:

Pension

Ordinary

Maximum

supplement

free area

basic rate

component

limit

























27 Subsection 17(8) (definition of energy supplement

component)

Repeal the definition.

28 Application provision

The amendments of subsection 17(8) of the Social Security Act 1991

made by this Part apply in relation to lump sum preclusion periods

beginning on or after the commencement of this item.

29 After section 21

Insert:

22 Transitional energy supplement person

(1) A person becomes a transitional energy supplement person on

19 September 2016 if on that day:

(a) the person was receiving an income support payment where

energy supplement was used to work out the rate of that

payment; or

(b) energy supplement was payable to the person under

section 1061UA; or

in relation to the person; or

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(d) energy supplement was payable to the person under

section 118PA of the Veterans' Entitlements Act; or

(e) under the scheme referred to in section 117 of the Veterans'

Entitlements Act, the Commonwealth was liable to pay the

person energy supplement for the person's clean energy

underlying payment; or

(f) subsection 238A(1) of the Military Rehabilitation and

Compensation Act applied in relation to the person; or

(g) under the scheme referred to in section 258 of the Military

Rehabilitation and Compensation Act, the Commonwealth

was liable to pay the person energy supplement for the

person's clean energy underlying payment; or

(h) the person was receiving a payment under the ABSTUDY

scheme (also known as the Aboriginal Study Assistance

Scheme) that included an amount identified as living

allowance and the person qualified for an energy supplement

under that scheme.

(2) A person ceases to be a transitional energy supplement person on

a day on or after 20 September 2016 (and can never again become

a transitional energy supplement person) if none of

paragraphs (1)(a) to (h) apply to the person on that day.

Note:

Subsections (3) to (6) set out certain situations in which a person will

be taken to be receiving a payment on a day and therefore this

subsection will not apply to the person on that day.

Nil rate of social security payment

(3) If:

(a) before 19 September 2016 a person was receiving a social

security payment at a rate greater than nil and energy

supplement was used to work out that rate; and

(b) on a day (the nil rate day) on or after 19 September 2016 the

rate of that social security payment is nil and energy

supplement is used to work out that rate; and

receiving that social security payment at a rate greater than

nil and energy supplement was used to work out that rate;

and

(d) the person is qualified for that social security payment on the

nil rate day; and

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(e) the person's social security payment is not cancelled on the

nil rate day;

then, for the purposes of this section, paragraph (1)(a) is taken to

apply to the person on the nil rate day.

Suspension of social security payment

(4) If:

(a) before 19 September 2016 a person was receiving a social

security payment at a rate greater than nil and energy

supplement was used to work out that rate; and

(b) on a day (the suspension day) on or after 19 September 2016

that social security payment is suspended; and

receiving that social security payment at a rate greater than

nil and energy supplement was used to work out that rate;

and

(d) the person is qualified for that social security payment on the

suspension day;

then, for the purposes of this section, paragraph (1)(a) is taken to

apply to the person on the suspension day.

Portability

(5) If:

(a) on 19 September 2016 a person was receiving an income

support payment at a rate greater than nil and energy

supplement was used to work out that rate; and

(b) either:

(i) the person is absent from Australia on 19 September

2016 and has been so for a continuous period not

exceeding 6 weeks; or

(ii) the person leaves Australia on a day on or after

20 September 2016 and, on the day before so leaving,

the person was receiving the income support payment at

a rate greater than nil and energy supplement was used

to work out that rate; and

absence has exceeded 6 weeks; and

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(d) the person's income support payment is payable to the person

on the day before the person returned to Australia;

then, for the purposes of this section, paragraph (1)(a) is taken to

apply to the person on each day that occurs in the period beginning

on the day after the end of that 6-week period of absence and

ending at the end of the day before the person returned to

Australia.

Seniors health card

(6) If:

(a) a person makes a claim for a seniors health card under the

Administration Act or the Veterans' Entitlements Act on or

after the commencement of this section:

(i) within the 6-week period mentioned in

subsection 1061U(4) or (8) of this Act, in circumstances

where paragraphs 1061U(4)(a) to (d) or (8)(a) to (d) of

this Act apply; or

(ii) within the 6-week period mentioned in

subsection 118P(1C) or (1G) of the Veterans'

Entitlements Act, in circumstances where paragraphs

118P(1C)(a) to (d) or (1G)(a) to (d) of that Act apply;

and

(b) the person's claim is granted and the person becomes the

holder of a seniors health card;

then, for the purposes of this section, paragraph (1)(a) is taken to

apply to the person on each day that occurs in the period:

paragraph 1061U(4)(c) or (8)(c) of this Act or

paragraph 118P(1C)(c) or (1G)(c) of the Veterans'

Entitlements Act; and

(d) ending at the end of the day before the person becomes the

holder of the seniors health card.

30 Subsection 23(1)

Insert:

transitional energy supplement person: see section 22.

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31 Section 915

Repeal the section, substitute:

915 When quarterly energy supplement is payable

(1) Quarterly energy supplement is payable to a person for each day

for which an election by the person under subsection 915A(1) is in

force in relation to a social security payment the person is

receiving.

Note:

Section 918 may affect the person's qualification for quarterly energy

supplement.

(2) Quarterly energy supplement is payable to a person for each day

for which an election by the person under subsection 1061VA(1) is

in force in relation to a social security payment the person is

receiving, but only if energy supplement is used to work out the

rate of that social security payment on that day.

Note:

Section 918 may affect the person's qualification for quarterly energy

supplement.

32 Paragraph 915A(1)(a)

After "a social security payment", insert "(the main payment)".

33 Subsection 915A(1) (note)

Omit "would", substitute "may".

34 Subsection 915A(3)

Repeal the subsection, substitute:

(3) An election ceases to be in force if, disregarding the election,

energy supplement would cease to be used to work out the rate of a

social security payment of the person.

35 Application and saving provisions

(1)

The repeal and substitution of section 915 of the Social Security Act

1991 made by this Part applies in relation to working out whether

quarterly energy supplement is payable to a person for a day on or after

the commencement of this item.

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(2)

The repeal and substitution of section 915 of the Social Security Act

1991 made by this Part does not affect the validity of an election made

under subsection 915A(1) or 1061VA(1) of that Act before the

commencement of this item.

(3)

Subsection 915A(3) of the Social Security Act 1991, as substituted by

this Part, applies on and after the commencement of this item in relation

to elections made before, on or after that commencement.

36 Section 1061U

Before "A", insert "(1)".

37 At the end of section 1061U

Add:

Exceptions

(2) Subject to subsections (4), (6) and (8), subsection (1) applies to a

person on or after the commencement of this subsection only if on

19 September 2016:

(a) energy supplement was payable to the person under

section 1061UA; or

(b) energy supplement was payable to the person under

section 118PA of the Veterans' Entitlements Act.

Note:

For subsection (1) to apply to the person on a day on or after that

commencement, the person needs to be the holder of a seniors health

card on that day.

(3) Subject to subsection (8), if:

(a) energy supplement was payable to a person under

section 1061UA, or under section 118PA of the Veterans'

Entitlements Act, on 19 September 2016; and

(b) energy supplement ceases to be payable to the person under

either of those sections on or after 20 September 2016;

then subsection (1) of this section does not apply, and never again

applies, to the person from:

subsection--the start of the day this subsection commences;

(d) if the cessation occurred on or after the commencement of

this subsection--the start of the day of that cessation.

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(4) If:

(a) a person was not qualified for energy supplement under

subsection (1) on 19 September 2016; and

(b) on 19 September 2016 the person was receiving an income

support payment where energy supplement was used to work

out the rate of that payment; and

of this subsection the person ceases to be in receipt of any

income support payment; and

(d) on the day before the cessation day the person was receiving

an income support payment where energy supplement was

used to work out the rate of that payment; and

(e) the person is required to make a claim for a seniors health

card in order for such a card to be granted to the person;

the person can become qualified for energy supplement under

subsection (1) only if the person makes a claim for a seniors health

card within the period of 6 weeks beginning on the cessation day.

(5) Subject to subsection (8), if:

(a) as a result of a claim mentioned in subsection (4), a seniors

health card is issued to a person on a day; and

(b) energy supplement ceases to be payable to the person under

section 1061UA on or after that day;

then subsection (1) of this section does not apply, and never again

applies, to the person from the start of the day of that cessation.

(6) If:

(a) a person was not qualified for energy supplement under

subsection (1) on 31 December 2016; and

(b) on that day, the person was receiving a social security

pension and an amount of energy supplement was added to

the rate of that pension; and

seniors health card to the person;

the person can become qualified for energy supplement under

subsection (1) of this section because of holding that card.

(7) Subject to subsection (8), if:

(a) as mentioned in paragraph (6)(c), a seniors health card is

issued to a person on a day; and

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(b) energy supplement ceases to be payable to the person under

section 1061UA on or after that day;

then subsection (1) of this section does not apply, and never again

applies, to the person from:

subsection--the start of the day this subsection commences;

(d) if the cessation occurred on or after the commencement of

this subsection--the start of the day of that cessation.

(8) If:

(a) on a day on or after 20 September 2016 the person ceases to

hold a seniors health card under the Administration Act or

the Veterans' Entitlements Act; and

(b) on that day the person receives an income support payment

where energy supplement is used to work out the rate of that

payment; and

of this subsection, the person ceases to be in receipt of any

income support payment; and

(d) on the day before the cessation day the person was receiving

an income support payment where energy supplement was

used to work out the rate of that payment; and

(e) the person is required to make a claim for a seniors health

card in order for such a card to be granted to the person;

the person can become qualified for energy supplement under

subsection (1) only if the person makes a claim for a seniors health

card within the period of 6 weeks beginning on the cessation day.

38 Transitional provision

If:

(a) before 19 September 2016 a person was receiving an income

support payment where energy supplement was used to work

out the rate of that payment; and

(b) on a day (the cessation day) in the period of 6 weeks ending

at the end of 19 September 2016, the person ceased to receive

that payment; and

used to work out the rate of that payment; and

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(d) the person made a claim under the Social Security

(Administration) Act 1999 for a seniors health card within the

period of 6 weeks beginning on the cessation day; and

(e) the person's claim was granted and the person became the

holder of a seniors health card on a day on or after

20 September 2016; and

(f) the person held that card immediately before the

commencement of this item;

then:

(g) the person can become qualified for energy supplement under

subsection 1061U(1) of the Social Security Act 1991 (despite

subsection 1061U(2) of that Act); and

(h) paragraph 1061U(5)(a) of the Social Security Act 1991

applies as if a reference to a claim mentioned in

subsection (4) included a reference to a claim mentioned in

this item; and

(i) for the purposes of section 22 of the Social Security Act

1991, paragraph 22(1)(a) of that Act is taken to apply to the

person on each day that occurs in the period beginning on

19 September 2016 and ending at the end of the day before

the person became the holder of the seniors health card.

39 Point 1064-A1 (at the end of step 1B of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1064-A3.

40 Section 1064 (at the end of Module A of the Pension Rate

Calculator A)

Add:

Energy supplement

1064-A3 Step 1B of the method statement in point 1064-A1 does not apply

in relation to a person on a day on or after the commencement of

this point unless the person is a transitional energy supplement

person on that day.

Note:

For transitional energy supplement person see section 22.

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1064-A4 Point 1064-A3 does not limit section 918.

41 Point 1064-C1 (note)

Omit "Note", substitute "Note 1".

42 At the end of point 1064-C1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1064-A3.

43 Point 1065-A1 (at the end of step 3 of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1065-A2.

44 Section 1065 (at the end of Module A of the Pension Rate

Calculator B)

Add:

Energy supplement

1065-A2 Step 3 of the method statement in point 1065-A1 does not apply in

relation to a person on a day on or after the commencement of this

point unless the person is a transitional energy supplement person

on that day.

Note:

For transitional energy supplement person see section 22.

1065-A3 Point 1065-A2 does not limit section 918.

45 Point 1065-C1 (note)

Omit "Note", substitute "Note 1".

46 At the end of point 1065-C1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1065-A2.

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47 Point 1066-A1 (at the end of step 2 of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1066-A3.

48 Section 1066 (at the end of Module A of the Pension Rate

Calculator C)

Add:

Energy supplement

1066-A3 Step 2 of the method statement in point 1066-A1 does not apply in

relation to a person on a day on or after the commencement of this

point unless the person is a transitional energy supplement person

on that day.

Note:

For transitional energy supplement person see section 22.

1066-A4 Point 1066-A3 does not limit section 918.

49 Point 1066-C1 (note)

Omit "Note", substitute "Note 1".

50 At the end of point 1066-C1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1066-A3.

51 Point 1066A-A1 (at the end of step 1A of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1066A-A3.

52 Section 1066A (at the end of Module A of the Pension Rate

Calculator D)

Add:

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Energy supplement

1066A-A3 Step 1A of the method statement in point 1066A-A1 does not

apply in relation to a person on a day on or after the

commencement of this point unless the person is a transitional

energy supplement person on that day.

Note:

For transitional energy supplement person see section 22.

1066A-A4 Point 1066A-A3 does not limit section 918.

53 Point 1066A-BA1 (note)

Omit "Note", substitute "Note 1".

54 At the end of point 1066A-BA1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1066A-A3.

55 Point 1066B-A1 (at the end of step 2A of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1066B-A2.

56 Section 1066B (at the end of Module A of the Pension Rate

Calculator E)

Add:

Energy supplement

1066B-A2 Step 2A of the method statement in point 1066B-A1 does not apply

in relation to a person on a day on or after the commencement of

this point unless the person is a transitional energy supplement

person on that day.

Note:

For transitional energy supplement person see section 22.

1066B-A3 Point 1066B-A2 does not limit section 918.

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57 Point 1066B-BA1 (note)

Omit "Note", substitute "Note 1".

58 At the end of point 1066B-BA1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1066B-A2.

59 Point 1067G-A1 (at the end of step 1A of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1067G-A2.

60 Section 1067G (at the end of Module A of the Youth

Allowance Rate Calculator)

Add:

Energy supplement

1067G-A2 Step 1A of the method statement in point 1067G-A1 does not

apply in relation to a person on a day on or after the

commencement of this point unless the person is a transitional

energy supplement person on that day.

Note:

For transitional energy supplement person see section 22.

1067G-A3 Point 1067G-A2 does not limit section 918.

61 Point 1067G-BA1 (note)

Omit "Note", substitute "Note 1".

62 At the end of point 1067G-BA1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1067G-A2.

63 After point 1067G-H26B

Insert:

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1067G-H26C If step 1A of the method statement in point 1067G-A1 does not

apply in relation to the person:

(a) if paragraph 1067G-H26(a) applies to the person's partner--

for the purposes of that paragraph, disregard step 1A of the

method statement in point 1067G-A1; or

(b) if paragraph 1067G-H26(b) applies to the person's partner--

for the purposes of that paragraph, disregard step 1B of the

method statement in point 1068-A1.

1067G-H26D If step 1A of the method statement in point 1067G-A1 applies

in relation to the person:

(a) if paragraph 1067G-H26(a) applies to the person's partner--

for the purposes of that paragraph, assume step 1A of the

method statement in point 1067G-A1 applies; or

(b) if paragraph 1067G-H26(b) applies to the person's partner--

for the purposes of that paragraph, assume step 1B of the

method statement in point 1068-A1 applies; or

and, apart from this point, the energy supplement Module of

the Rate Calculator used to calculate the partner's social

security benefit would not apply--for the purposes of that

paragraph, assume that Module applies.

64 Point 1067L-A1 (at the end of step 1B of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1067L-A2.

65 Section 1067L (at the end of Module A of the Austudy

Payment Rate Calculator)

Add:

Energy supplement

1067L-A2 Step 1B of the method statement in point 1067L-A1 does not apply

in relation to a person on a day on or after the commencement of

this point unless the person is a transitional energy supplement

person on that day.

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Note:

For transitional energy supplement person see section 22.

1067L-A3 Point 1067L-A2 does not limit section 918.

66 Point 1067L-BB1 (note)

Omit "Note", substitute "Note 1".

67 At the end of point 1067L-BB1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1067L-A2.

68 After point 1067L-D25B

Insert:

1067L-D25C

If step 1B of the method statement in point 1067L-A1 does not

apply in relation to the person:

(a) if paragraph 1067L-D25(a) applies to the person's partner--

for the purposes of that paragraph, disregard step 1A of the

method statement in point 1067G-A1; or

(b) if paragraph 1067L-D25(b) applies to the person's partner--

for the purposes of that paragraph, disregard step 1B of the

method statement in point 1068-A1.

1067L-D25D

If step 1B of the method statement in point 1067L-A1 applies

in relation to the person:

(a) if paragraph 1067L-D25(a) applies to the person's partner--

for the purposes of that paragraph, assume step 1A of the

method statement in point 1067G-A1 applies; or

(b) if paragraph 1067L-D25(b) applies to the person's partner--

for the purposes of that paragraph, assume step 1B of the

method statement in point 1068-A1 applies; or

and, apart from this point, the energy supplement Module of

the Rate Calculator used to calculate the partner's social

security benefit would not apply--for the purposes of that

paragraph, assume that Module applies.

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69 Point 1068-A1 (at the end of step 1B of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1068-A2.

70 Section 1068 (at the end of Module A of the Benefit Rate

Calculator B)

Add:

Energy supplement

1068-A2 Step 1B of the method statement in point 1068-A1 does not apply

in relation to a person on a day on or after the commencement of

this point unless the person is a transitional energy supplement

person on that day.

Note:

For transitional energy supplement person see section 22.

1068-A3 Point 1068-A2 does not limit section 918.

71 Point 1068-C1 (note)

Omit "Note", substitute "Note 1".

72 At the end of point 1068-C1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1068-A2.

73 After point 1068-G9B

Insert:

1068-G9C If step 1B of the method statement in point 1068-A1 does not apply

in relation to the person:

(a) if paragraph 1068-G9(a) applies to the person's partner--for

the purposes of that paragraph, disregard step 1A of the

method statement in point 1067G-A1; or

(b) if paragraph 1068-G9(b) applies to the person's partner--for

the purposes of that paragraph, disregard step 1B of the

method statement in point 1068-A1.

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1068-G9D If step 1B of the method statement in point 1068-A1 applies in

relation to the person:

(a) if paragraph 1068-G9(a) applies to the person's partner--for

the purposes of that paragraph, assume step 1A of the method

statement in point 1067G-A1 applies; or

(b) if paragraph 1068-G9(b) applies to the person's partner--for

the purposes of that paragraph, assume step 1B of the method

statement in point 1068-A1 applies; or

apart from this point, the energy supplement Module of the

Rate Calculator used to calculate the partner's social security

benefit would not apply--for the purposes of that paragraph,

assume that Module applies.

74 Point 1068A-A1 (at the end of step 1B of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1068A-A2.

75 Section 1068A (at the end of Module A of the Pension PP

(Single) Rate Calculator)

Add:

Energy supplement

1068A-A2 Step 1B of the method statement in point 1068A-A1 does not apply

in relation to a person on a day on or after the commencement of

this point unless the person is a transitional energy supplement

person on that day.

Note:

For transitional energy supplement person see section 22.

1068A-A3 Point 1068A-A2 does not limit section 918.

76 Point 1068A-BB1 (note)

Omit "Note", substitute "Note 1".

77 At the end of point 1068A-BB1

Add:

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Note 2:

For certain persons, energy supplement is not to be so added: see point

1068A-A2.

78 Point 1068B-A2 (at the end of step 2B of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1068B-A4.

79 Point 1068B-A3 (at the end of step 2B of the method

statement)

Add:

Note:

This step does not apply to certain persons: see point

1068B-A4.

80 Section 1068B (at the end of Module A of the Benefit PP

(Partnered) Rate Calculator)

Add:

Energy supplement

1068B-A4 Step 2B of the method statement in point 1068B-A2 or 1068B-A3

does not apply in relation to a person on a day on or after the

commencement of this point unless the person is a transitional

energy supplement person on that day.

Note:

For transitional energy supplement person see section 22.

1068B-A5 Point 1068B-A4 does not limit section 918.

81 After point 1068B-D22B

Insert:

1068B-D22C

If step 2B of the method statement in point 1068B-A2 or

1068B-A3 does not apply in relation to the person:

(a) if paragraph 1068B-D22(a) applies to the person's partner--

for the purposes of that paragraph, disregard step 1A of the

method statement in point 1067G-A1; or

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(b) if paragraph 1068B-D22(b) applies to the person's partner--

for the purposes of that paragraph, disregard step 1B of the

method statement in point 1068-A1.

1068B-D22D If step 2B of the method statement in point 1068B-A2 or

1068B-A3 applies in relation to the person:

(a) if paragraph 1068B-D22(a) applies to the person's partner--

for the purposes of that paragraph, assume step 1A of the

method statement in point 1067G-A1 applies; or

(b) if paragraph 1068B-D22(b) applies to the person's partner--

for the purposes of that paragraph, assume step 1B of the

method statement in point 1068-A1 applies; or

and, apart from this point, the energy supplement Module of

the Rate Calculator used to calculate the partner's social

security benefit would not apply--for the purposes of that

paragraph, assume that Module applies.

82 Point 1068B-DB1 (note)

Omit "Note", substitute "Note 1".

83 At the end of point 1068B-DB1

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

1068B-A4.

84 Point 1071A-2A

Repeal the point, substitute:

Working out allowable income

1071A-2A For the purposes of step 2 of the method statement in point

1071A-1 or 1071A-2, disregard steps 1A, 1B, 2 and 3 of the

method statement in point 1068-A1.

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85 Application provision

The repeal and substitution of point 1071A-2A of the Social Security

Act 1991 made by this Part applies in relation to working out if a person

is qualified for a health care card on a day on or after the

commencement of this item (whether or not the person held such a card

immediately before that commencement).

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Part 3--Energy supplement under the Farm

Household Support Act

Farm Household Support Act 2014

86 At the end of section 58 (before the note)

Add:

Note 1:

Energy supplement does not apply to certain persons: see point

1068-A2 of the Social Security Act.

87 Section 58 (note)

Omit "Note", substitute "Note 2".

88 At the end of section 62 (before the note)

Add:

Note 1:

Energy supplement does not apply to certain persons: see point

1067G-A2 of the Social Security Act.

89 Section 62 (note)

Omit "Note", substitute "Note 2".

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Part 4--Energy supplement under the Veterans'

Entitlements Act

Veterans' Entitlements Act 1986

90 Paragraph 59Q(7)(b) (formula)

Repeal the formula, substitute:

Compensation part of lump sum

Ordinary

Maximum

Point SCH6-BA3

free area

basic rate

amount

limit























91 Paragraph 59Q(7)(b) (definition of point SCH6-BB3

amount)

Repeal the definition.

92 Application provision

The amendments of paragraph 59Q(7)(b) of the Veterans' Entitlements

Act 1986 made by this Part apply in relation to lump sum preclusion

periods beginning on or after the commencement of this item.

93 Subsection 62A(1) (note)

Omit "Note", substitute "Note 1".

94 At the end of subsection 62A(1)

Add:

Note 2:

Subsection (4) sets out a limitation on subsection (1) applying.

95 At the end of section 62A

Add:

Limitation

(4) Subsection (1) applies to a person on a day on or after the

commencement of this subsection only if the person is a

transitional energy supplement person on that day.

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Note:

For subsection (1) to apply to the person on a day, the person needs to

satisfy paragraphs (1)(a) to (d) on that day.

(5) For the purposes of this section, a person becomes a transitional

energy supplement person on 19 September 2016 if on that day:

(a) paragraphs (1)(a) to (d) applied in relation to the person; or

(b) subsection 83A(1) of the Military Rehabilitation and

Compensation Act 2004 applied in relation to the person; or

Compensation Act 2004 applied in relation to the person.

(6) For the purposes of this section, a person ceases to be a

transitional energy supplement person on a day on or after

20 September 2016 (and can never again become a transitional

energy supplement person) if none of paragraphs (5)(a) to (c) apply

to the person on that day.

96 Subsection 62B(1) (note)

Omit "Note", substitute "Note 1".

97 At the end of subsection 62B(1)

Add:

Note 2:

Subsection (4) sets out a limitation on subsection (1) applying.

98 At the end of section 62B

Add:

Limitation

(4) Subsection (1) applies to a person on a day on or after the

commencement of this subsection only if the person is a

transitional energy supplement person (within the meaning of the

Social Security Act 1991) on that day.

Note:

For subsection (1) to apply to the person on a day, the person needs to

satisfy paragraphs (1)(a) to (d) on that day.

99 At the end of subsection 62D(1)

Add:

Note 3:

Sections 62A and 62B do not apply to certain persons: see

subsections 62A(4) and 62B(4).

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100 At the end of subsection 62E(1) (before the note)

Add ", but only if energy supplement is used to work out the rate of that

service pension on that day".

101 Paragraph 62E(6)(a)

Repeal the paragraph, substitute:

(a) quarterly energy supplement for service pension that a person

is receiving is payable to the person for a day; and

102 Paragraph 62E(6)(c)

After "paragraph 4(5)(a)", insert "of Schedule 6".

103 Application provision

The amendments of section 62E of the Veterans' Entitlements Act 1986

made by this Part apply in relation to working out whether quarterly

energy supplement is payable to a person for a day on or after the

commencement of this item.

104 After subsection 118P(1)

Insert:

(1A) Subject to subsections (1C), (1E) and (1G), subsection (1) applies

to a person on or after the commencement of this subsection only if

on 19 September 2016:

(a) energy supplement was payable to the person under

section 118PA; or

(b) energy supplement was payable to the person under

section 1061UA of the Social Security Act 1991.

Note:

For subsection (1) to apply to the person on a day on or after that

commencement, the person needs to satisfy paragraphs (1)(a) to (b) on

that day.

(1B) Subject to subsection (1G), if:

(a) energy supplement was payable to a person under

section 118PA, or section 1061UA of the Social Security Act

1991, on 19 September 2016; and

(b) energy supplement ceases to be payable to the person under

either of those sections on or after 20 September 2016;

then subsection (1) of this section does not apply, and never again

applies, to the person from:

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subsection--the start of the day this subsection commences;

(d) if the cessation occurred on or after the commencement of

this subsection--the start of the day of that cessation.

(1C) If:

(a) a person was not eligible for energy supplement under

subsection (1) on 19 September 2016; and

(b) on 19 September 2016 the person was receiving an income

support payment (within the meaning of the Social Security

Act 1991), where energy supplement was used to work out

the rate of that payment; and

of this subsection the person ceases to be in receipt of any

income support payment (within the meaning of the Social

Security Act 1991); and

(d) on the day before the cessation day the person was receiving

an income support payment (within the meaning of the Social

Security Act 1991) where energy supplement was used to

work out the rate of that payment; and

(e) the person is required to make a claim for a seniors health

card in order for such a card to be granted to the person;

the person can become eligible for energy supplement under

subsection (1) only if the person makes a claim for a seniors health

card within the period of 6 weeks beginning on the cessation day.

(1D) Subject to subsection (1G), if:

(a) as a result of a claim mentioned in subsection (1C), a person

becomes the holder of a seniors health card on a day; and

(b) energy supplement ceases to be payable to the person under

section 118PA on or after that day;

then subsection (1) of this section does not apply, and never again

applies, to the person from the start of the day of that cessation.

(1E) If:

(a) a person was not eligible for energy supplement under

subsection (1) on 31 December 2016; and

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(b) on that day, the person was receiving a service pension and

an amount of energy supplement was added to the rate of that

pension; and

determination under section 118ZG that the person is entitled

to a seniors health card;

the person can become eligible for energy supplement under

subsection (1) of this section because of being the holder of that

card.

(1F) Subject to subsection (1G), if:

(a) as mentioned in paragraph (1E)(c), a person becomes the

holder of a seniors health card on a day; and

(b) energy supplement ceases to be payable to the person under

section 118PA on or after that day;

then subsection (1) of this section does not apply, and never again

applies, to the person from:

subsection--the start of the day this subsection commences;

(d) if the cessation occurred on or after the commencement of

this subsection--the start of the day of that cessation.

(1G) If:

(a) on a day on or after 20 September 2016 the person ceases to

hold a seniors health card under this Act or the Social

Security (Administration) Act 1999; and

(b) on that day the person receives an income support payment

(within the meaning of the Social Security Act 1991) where

energy supplement was used to work out the rate of that

payment; and

of this subsection the person ceases to be in receipt of any

income support payment (within the meaning of the Social

Security Act 1991); and

(d) on the day before the cessation day the person was receiving

an income support payment (within the meaning of the Social

Security Act 1991) where energy supplement was used to

work out the rate of that payment; and

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(e) the person is required to make a claim for a seniors health

card in order for such a card to be granted to the person;

the person can become eligible for energy supplement under

subsection (1) only if the person makes a claim for a seniors health

card within the period of 6 weeks beginning on the cessation day.

105 After subsection 118P(2)

Insert:

(2A) Subject to subsection (2C), subsection (2) applies to a person on or

after the commencement of this subsection only if, on

19 September 2016, energy supplement was payable to the person

under section 118PA.

Note:

For subsection (2) to apply to the person on a day on or after that

commencement, the person needs to satisfy paragraphs (2)(a) to (d) on

that day.

(2B) Subject to subsection (2C), if:

(a) energy supplement was payable to a person under

section 118PA on 19 September 2016; and

(b) energy supplement ceases to be payable to the person under

that section on or after 20 September 2016;

then subsection (2) of this section does not apply, and never again

applies, to the person from:

subsection--the start of the day this subsection commences;

(d) if the cessation occurred on or after the commencement of

this subsection--the start of the day of that cessation.

(2C) If:

(a) on 19 September 2016 a person was receiving an income

support payment (within the meaning of the Social Security

Act 1991) where energy supplement was used to work out the

rate of that payment; and

(b) on a day (the cessation day) on or after the commencement

of this subsection the person ceases to be in receipt of any

income support payment (within the meaning of the Social

Security Act 1991); and

an income support payment (within the meaning of the Social

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Security Act 1991) where energy supplement was used to

work out the rate of that payment; and

(d) the person is the holder of a gold card on the cessation day;

the person can become eligible for energy supplement under

subsection (2) because of being the holder of that card.

106 At the end of section 118P

Add:

Portability

(4) If:

(a) on 19 September 2016 energy supplement was payable to a

person under section 118PA; and

(b) either:

(i) the person is absent from Australia on 19 September

2016 and has been so for a continuous period not

exceeding 6 weeks; or

(ii) the person leaves Australia on a day on or after

20 September 2016 and, on the day before so leaving,

energy supplement was payable to the person under

section 118PA; and

absence has exceeded 6 weeks but not exceeded 19 weeks;

and

(d) the person is the holder of a seniors health card or a gold card

on the day before the person returns to Australia;

then the person is taken to have been eligible for energy

supplement under this section on each day that occurs in the period

beginning on the day after the end of that 6-week period of absence

and ending at the end of the day before the person returned to

Australia.

(5) Subsection (4) does not limit section 118PB.

Note:

After the person's period of absence exceeds 6 weeks, there will be no

daily rate of energy supplement for the person: see

subsection 118PB(2).

107 Transitional provision

If:

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(a) before 19 September 2016 a person was receiving an income

support payment (within the meaning of the Social Security

Act 1991) where energy supplement was used to work out the

rate of that payment; and

(b) on a day (the cessation day) in the period of 6 weeks ending

at the end of 19 September 2016, the person ceased to receive

that payment; and

used to work out the rate of that payment; and

(d) the person made a claim under the Veterans' Entitlements Act

1986 for a seniors health card within the period of 6 weeks

beginning on the cessation day; and

(e) the person's claim was granted and the person became the

holder of a seniors health card on a day on or after

20 September 2016; and

(f) the person held that card immediately before the

commencement of this item;

then:

(g) the person can become eligible for energy supplement under

subsection 118P(1) of the Veterans' Entitlements Act 1986 if

the person satisfies paragraphs 118P(1)(a) to (b) of that Act

(despite subsection 118P(1A) of that Act); and

(h) paragraph 118P(1D)(a) of the Veterans' Entitlements Act

1986 applies as if a reference to a claim mentioned in

subsection (1C) included a reference to a claim mentioned in

this item; and

(i) for the purposes of section 22 of the Social Security Act

1991, paragraph 22(1)(a) of that Act is taken to apply to the

person on each day that occurs in the period beginning on

19 September 2016 and ending at the end of the day before

the person became the holder of the seniors health card.

108 Subclause 4(1) of Schedule 6 (note 1)

Omit "an election by the person under subsection 60A(1) is in force",

substitute "quarterly energy supplement for service pension is payable

to the person".

109 Paragraph 4(5)(b) of Schedule 6

Repeal the paragraph, substitute:

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(b) quarterly energy supplement for service pension is payable to

the person;

110 Subclause 4(5) of Schedule 6

Omit "were the election not in force", substitute "were quarterly energy

supplement for service pension not payable to the person".

111 Subclause 4(5) of Schedule 6 (note)

Repeal the note, substitute:

Note:

Subsection 62E(6) sets out when a reduction in the instalment of the

person's quarterly energy supplement is not to occur.

112 Subpoint SCH6-A1(2) of Schedule 6 (at the end of step

1B of the method statement)

Add:

Note:

This step does not apply to certain persons: see point

SCH6-A10. Section 65A may also affect whether the

amount obtained in step 1B is added.

113 Subpoint SCH6-A1(2) of Schedule 6 (note at the end of

step 4 of the method statement)

Repeal the note.

114 Subpoint SCH6-A1(3) of Schedule 6 (at the end of step

2B of the method statement)

Add:

Note:

This step does not apply to certain persons: see point

SCH6-A10. Section 65A may also affect whether the

amount obtained in step 2B is added.

115 Subpoint SCH6-A1(3) of Schedule 6 (note at the end of

step 4 of the method statement)

Repeal the note.

116 Part 2 of Schedule 6 (at the end of Module A of the Rate

Calculator)

Add:

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Energy supplement

SCH6-A10 Step 1B of the method statement in subpoint SCH6-A1(2), or step

2B of the method statement in subpoint SCH6-A1(3), does not

apply in relation to a person on a day on or after the

commencement of this point unless the person is a transitional

energy supplement person (within the meaning of the Social

Security Act 1991) on that day.

SCH6-A11 Point SCH6-A10 does not limit section 65A.

117 Point SCH6-BB1 of Schedule 6 (note)

Omit "Note", substitute "Note 1".

118 At the end of point SCH6-BB1 of Schedule 6

Add:

Note 2:

For certain persons, energy supplement is not to be so added: see point

SCH6-A10.

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Energy supplement under the Military Rehabilitation and Compensation Act Part 5

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221

Part 5--Energy supplement under the Military

Rehabilitation and Compensation Act

Military Rehabilitation and Compensation Act 2004

119 Subsection 83A(1) (note)

Omit "Section 424L may affect", substitute "Subsection (4) sets out a

limitation on subsection (1) applying. Section 424L may also affect".

120 At the end of section 83A

Add:

Limitation

(4) Subsection (1) applies to a person on a day on or after the

commencement of this subsection only if the person is a

transitional energy supplement person on that day.

Note:

For subsection (1) to apply to the person on a day, the person needs to

satisfy paragraphs (1)(a), (b) and (c) on that day.

(5) For the purposes of this section, a person becomes a transitional

energy supplement person on 19 September 2016 if on that day:

(a) paragraphs (1)(a), (b) and (c) applied in relation to the

person; or

(b) subsection 209A(1) applied in relation to the person; or

applied in relation to the person.

(6) For the purposes of this section, a person ceases to be a

transitional energy supplement person on a day on or after

20 September 2016 (and can never again become a transitional

energy supplement person) if none of paragraphs (5)(a) to (c) apply

to the person on that day.

121 Subsection 209A(1) (note)

Omit "Section 424L may affect", substitute "Subsection (3) sets out a

limitation on subsection (1) applying. Section 424L may also affect".

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122 At the end of section 209A

Add:

Limitation

(3) Subsection (1) applies to a person on a day on or after the

commencement of this subsection only if the person is a

transitional energy supplement person on that day.

Note:

For subsection (1) to apply to the person on a day, the person needs to

satisfy paragraphs (1)(a), (b) and (c) on that day.

(4) For the purposes of this section, a person becomes a transitional

energy supplement person on 19 September 2016 if on that day:

(a) paragraphs (1)(a), (b) and (c) applied in relation to the

person; or

(b) subsection 83A(1) applied in relation to the person; or

applied in relation to the person.

(5) For the purposes of this section, a person ceases to be a

transitional energy supplement person on a day on or after

20 September 2016 (and can never again become a transitional

energy supplement person) if none of paragraphs (4)(a) to (c) apply

to the person on that day.

123 Subsection 238A(1) (note)

Omit "Section 424L may affect", substitute "Subsection (4) sets out a

limitation on subsection (1) applying. Section 424L may also affect".

124 At the end of section 238A

Add:

Limitation

(4) Subsection (1) applies to a person on a day on or after the

commencement of this subsection only if the person is a

transitional energy supplement person (within the meaning of the

Social Security Act 1991) on that day.

Note:

For subsection (1) to apply to the person on a day, the person needs to

satisfy paragraphs (1)(a), (b) and (c) on that day.

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223

Part 6--Telephone allowance

Social Security Act 1991

125 Subsection 17(1) (subparagraph (l)(ii) of the definition of

compensation affected payment)

Omit ", other than a telephone allowance payable to the holder of a

seniors health card".

126 Subsection 1061Q(4A)

Repeal the subsection.

127 Subsection 1061SA(1) (cell at table item 10, column 2)

Repeal the cell, substitute:

Partnered (partner getting pension or benefit) and

partner getting telephone allowance at the standard

rate

128 Paragraphs 1061SB(2)(a) and (b)

Repeal the paragraphs.

Social Security (Administration) Act 1999

129 Subsection 48(4) (definition of telephone allowance

payday)

Repeal the definition, substitute:

telephone allowance payday means the first day on which an

instalment of a social security periodic payment would normally be

paid to the person on or after any of the following:

(a) 1 January;

(b) 20 March;

(d) 20 September.

130 Subsection 48(4) (definition of working day)

Repeal the definition.

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131 Application provisions

(1)

The repeal of subsection 1061Q(4A) of the Social Security Act 1991

made by this Part applies in relation to working out if a person is

qualified for a telephone allowance on a telephone allowance payday

occurring on or after the commencement of this item.

(2)

The amendments of sections 1061SA and 1061SB of the Social Security

Act 1991 made by this Part apply in relation to working out the rate of

telephone allowance for a telephone allowance payday occurring on or

after the commencement of this item.

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Single income family supplement Part 7

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225

Part 7--Single income family supplement

A New Tax System (Family Assistance) Act 1999

132 At the end of subsection 57G(1)

Add:

Note:

This section does not apply to certain individuals: see section 57GDA.

133 At the end of Subdivision A of Division 6 of Part 3

Add:

57GDA Cessation of eligibility

(1) Section 57G does not apply to an individual on or after the

commencement of this section unless the individual was eligible

for single income family supplement in respect of the day before

that commencement.

(2) Section 57G does not apply, and never again applies, to the

individual from the start of the first day on or after the

commencement of this section on which the individual ceases to be

eligible for single income family supplement.

(3) If:

(a) an individual is eligible for single income family supplement

in respect of a period falling within the income year (the

relevant income year) ending on the day before the

commencement of this section or within a later income year

(also the relevant income year); and

(b) in order to become entitled to be paid single income family

supplement in respect of that period, the individual is

required to make a claim for payment of single income

family supplement for a past period; and

section 65KD of the Family Assistance Administration Act;

then section 57G of this Act does not apply, and never again

applies, to the individual from the start of the first income year

after the relevant income year.

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Schedule 22--Rates of R&D tax offset

Income Tax Assessment Act 1997

1 Subsection 355-100(1) (cell at table item 1, column headed

"The percentage is:")

Repeal the cell, substitute:

43.5%

2 Subsection 355-100(1) (cell at table item 2, column headed

"The percentage is:")

Repeal the cell, substitute:

38.5%

3 Subsection 355-100(1) (cell at table item 3, column headed

"The percentage is:")

Repeal the cell, substitute:

38.5%

4 Subsection 355-100(1) (note)

Omit "45%", substitute "43.5%".

5 Application of amendments

The amendments made by this Schedule apply in relation to

assessments for income years commencing on or after 1 July 2016.

Single touch payroll reporting Schedule 23

Reporting by employers Part 1

No. , 2016

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227

Schedule 23--Single touch payroll reporting

Part 1--Reporting by employers

Division 1

--Main amendments

Taxation Administration Act 1953

1 After Division 388 in Schedule 1

Insert:

Division 389--Reporting by employers

Guide to Division 389

389-1 What this Division is about

Employers may notify to the Commissioner certain amounts that

are the subject of notification or reporting obligations under other

provisions of the taxation law. Substantial employers must (unless

they are exempted) notify most of those amounts to the

Commissioner under this Division.

In many cases this Division has the effect of bringing forward the

due dates for notification or reporting under the other provisions,

but notifying under this Division may reduce an employer's

obligations to notify or report under the other provisions.

Table of sections

389-5

Required reporting by substantial employers

389-10

Exemptions

389-15

Voluntary reporting by employers

389-20

Effect on reporting requirements under Subdivision 16-C

389-25

Grace periods for correcting false or misleading notifications

389-5 Required reporting by substantial employers

(1) If:

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(a) there is an amount of a kind referred to in column 1 of an

item in the following table that arises as a result of conduct of

an entity (such as payment of an amount or provision of a

benefit); and

(b) the entity has been a

substantial employer at any time on or

after 1 April 2018 (whether or not the entity is currently a

substantial employer);

the entity must notify the Commissioner of the amount on or

before the day referred to in column 2 of that item.

Amounts to be notified to the Commissioner

Item

Column 1

The following must be notified ...

Column 2

... on or before this day

The following amounts:

(a) an amount the entity must withhold

under Subdivision 12-B (other than

section 12-55 or 12-60),

paragraph 12-85(b), section 12-90,

paragraph 12-110(1)(ca) or (cb) or

section 12-319A;

(b) the

withholding payment from which

the amount referred to in paragraph (a) is

required to be withheld

the day by which the amount

is required to be withheld

(regardless of whether it is

withheld) (see section 16-5).

An amount (other than an amount covered

by item 1) paid by the entity that constitutes:

(a) the salary or wages (within the meaning

of the Superannuation Guarantee

(Administration) Act 1992) of a person

who is the entity's employee (within the

meaning of that Act but disregarding

subsection 12(3) of that Act); or

(b) the ordinary time earnings (within the

meaning of that Act) of such an

employee

the day on which the amount

is paid.

An amount paid by the entity that:

(a) is a contribution to a

complying

superannuation fund or an

RSA, in

respect of an individual's employment

(within the meaning of the

Superannuation Guarantee

the day on which the

contribution is paid.

Single touch payroll reporting Schedule 23

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229

Amounts to be notified to the Commissioner

Item

Column 1

The following must be notified ...

Column 2

... on or before this day

(Administration) Act 1992) by the entity,

that:

(i) is made by the entity; or

(ii) is taken, under section 79A of that

Act to have been made on behalf

of the entity; and

(b) has the effect of reducing the charge

percentage for the entity (as specified in

subsection 19(2) of that Act) for a

quarter

Note:

Section 286-75 provides an administrative penalty for breach of this

section.

(2) The notification must be in the

approved form. However, the

approved form must not require information about an amount

unless it is:

(a) the amount to be notified under subsection (1); or

(b) an amount of a kind determined by the Commissioner under

subsection (3).

(3) The Commissioner may, by legislative instrument, determine kinds

of amounts for the purposes of paragraph (2)(b).

(4) In applying item 1 of the table in subsection (1), a requirement to

withhold a nil amount is to be treated as a requirement to withhold

an amount.

(5) This section does not apply to an entity to the extent (if any) that

the entity is covered by an exemption under section 389-10 for the

income year in which the entity's conduct occurs.

(6) An entity is a substantial employer at a particular time if, on the

most recent 1 April occurring before that time:

(a) 20 or more individuals were employees of the entity; or

(b) if the entity was a member of a

wholly-owned group on that

1 April--the total number of employees of all of the

members of the group was 20 or more.

Schedule 23 Single touch payroll reporting

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389-10 Exemptions

Exempting classes of entities

(1) The Commissioner may, by legislative instrument, exempt a class

of entities from section 389-5 for one or more income years.

(2) The exemption may be limited to the extent specified in the

instrument.

Exempting particular entities

(3) The Commissioner may, on application by an entity (an exemption

application) or on the Commissioner's own initiative, exempt the

entity from section 389-5 for one or more income years.

(4) The exemption may be limited to the extent specified in the notice

under paragraph (5)(a).

(5) The Commissioner must notify the entity in writing if:

(a) the Commissioner exempts the entity under subsection (3); or

(b) refuses an exemption application by the entity.

(6) The Commissioner is taken to have refused an exemption

application if the Commissioner fails to notify the entity in writing

of the Commissioner's decision on the application within 60 days

after the application is made.

(7) The entity may object, in the manner set out in Part IVC, against:

(a) a decision of the Commissioner to refuse an exemption

application; or

(b) a decision of the Commissioner to limit the extent of an

exemption under subsection (4).

389-15 Voluntary reporting by employers

Section 389-5 amounts

(1) An entity that is not, and has not at any time on or after 1 April

2018 been, a

substantial employer may notify the Commissioner

of an amount that it would be required to notify under

section 389-5 if it were a substantial employer.

Single touch payroll reporting Schedule 23

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231

(2) The notification:

(a) must be given on or before the day on or before which the

entity would be required to notify under section 389-5 if it

were a

substantial employer; and

(b) must be in the form approved for the purposes of

subsection (2) of that section.

Other amounts

(3) If:

(a) an amount arises as a result of conduct of an entity (such as

payment of an amount or provision of a benefit); and

(b) the amount is an amount of a kind referred to in column 1 of

an item in the following table;

the entity may notify the Commissioner of the amount on or before

the day referred to in column 2 of that item.

Amounts to be notified to the Commissioner

Item

Column 1

This amount may be notified ...

Column 2

... on or before this day

reportable employer superannuation

contribution made by the entity in respect of

financial year for the benefit of an

employee of the entity

14 July in the next

financial

year.

reportable fringe benefits amount that an

employee of the entity has for an income

year in respect of the employee's

employment with the entity

14 July in the

financial year

most closely corresponding

to the next income year.

(4) The notification must be in the

approved form.

Note:

The approved form may require information about other amounts, in

addition to the amount to be notified: see paragraph 388-50(1)(c).

389-20 Effect on reporting requirements under Subdivision 16-C

(1) An entity is not required to comply with a requirement of:

(a) section 16-150 (Commissioner must be notified of amounts);

(b) section 16-153 (annual reports--other payments); or

Schedule 23 Single touch payroll reporting

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Budget Savings (Omnibus) Bill 2016

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(d) section 16-160 (part-year payment summary); or

(e) section 16-165 (payment summaries for superannuation lump

sums and payments for termination of employment); or

(f) section 16-175 in relation to compliance with any

requirements under section 16-155, 16-160 or 16-165;

to give a notice, report or statement to the extent that it would

relate to an amount that the entity has notified under section 389-5

or 389-15.

(2) However, paragraphs (1)(b), (c) and (e) do not apply, in relation to

requirement to give a notice, report or statement relating to

payments made in a

financial year, unless, within 14 days after the

end of the financial year, the entity makes a declaration to the

Commissioner that:

(a) states that the entity has notified under section 389-5 or

389-15 all the information that the entity would otherwise be

required to give under sections 16-153, 16-155 and 16-165

relating to payments made in the financial year; and

(b) is in the

approved form.

389-25 Grace periods for correcting false or misleading notifications

When notifications can be corrected

(1) An entity that has made a statement (a withholding statement)

under section 389-5 notifying an amount under item 1 or 2 of the

table in subsection 389-5(1) (and no other item in that table) may

correct the statement:

(a) within the period determined by the Commissioner under

subsection (2); or

(b) if paragraph (a) does not apply but the entity is covered by a

determination under subsection (5)--within the period

specified in that determination.

Note:

Correcting the statement can protect the person from liability for a

false or misleading withholding statement: see subsections 8K(2A),

8N(2) and 284-75(8).

Single touch payroll reporting Schedule 23

Reporting by employers Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

233

Determinations for particular entities

(2) The Commissioner may determine the period within which the

entity may correct a withholding statement.

(3) The Commissioner must give the entity written notice of the

determination.

(4) The entity may object, in the manner set out in Part IVC, against a

decision of the Commissioner determining a period under

subsection (2) relating to the entity.

Determinations for classes of entities

(5) The Commissioner may, by legislative instrument, determine the

period within which entities included in a class of entities specified

in the determination may correct a withholding statement.

Division 2

--Other amendments

Income Tax Assessment Act 1997

2 Subsection 995-1(1) (at the end of the definition of BAS

provisions)

Add:

; and (d) Division 389 in Schedule 1 to the Taxation Administration

Act 1953.

3 Subsection 995-1(1)

Insert:

substantial employer has the meaning given by

subsection 389-5(6) in Schedule 1 to the Taxation Administration

Act 1953.

Taxation Administration Act 1953

4 After section 8AAZLGA

Insert:

Schedule 23 Single touch payroll reporting

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Budget Savings (Omnibus) Bill 2016

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8AAZLGB Retaining refunds until notification under Division 389

or ascertainment of liability

Commissioner may retain an amount

(1) The Commissioner may retain an amount that he or she otherwise

would have to refund to an entity under section 8AAZLF, if:

(a) the Commissioner reasonably believes that the entity has

made a payment as a result of which the entity:

(i) is, or will be, required to notify the Commissioner under

section 389-5 in Schedule 1; or

(ii) may notify the Commissioner under section 389-15 in

that Schedule; and

(b) the entity has not notified the Commissioner of the amount

under that section; and

Commissioner refunds to the entity.

(2) The Commissioner must inform the entity that he or she has

retained the amount under this section. He or she must do so within

14 days after the day on which the relevant RBA surplus or credit

arose.

How long the amount may be retained

(3) The Commissioner may retain the amount until:

(a) the entity has given the Commissioner that notification

(including notification of a nil amount); or

(b) if subparagraph (1)(a)(i) applied--the Commissioner

becomes reasonably satisfied that the entity is not required to

give that notification; or

entity does not have a liability (a PAYGW liability) to pay to

the Commissioner an amount of a kind referred to in item 1

of the table in subsection 389-5(1) in Schedule 1; or

(d) the Commissioner ascertains (including as a result of making

an estimate) the total amount of the entity's outstanding

PAYGW liabilities;

whichever happens first.

Single touch payroll reporting Schedule 23

Reporting by employers Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

235

Note:

Interest is payable under the Taxation (Interest on Overpayments and

Early Payments) Act 1983 if the Commissioner is late in making the

payment under subsection (3).

Objecting to the decision to retain the amount

(4) The entity may object to a decision of the Commissioner to retain

the amount under this section in the manner set out in Part IVC, if

the entity is dissatisfied with the decision.

Note:

For the start of the period for objecting to the decision, see

paragraph 14ZW(1)(aae) and subsection 14ZW(4).

(5) Before the end of the 7 days after the start of the period during

which, under section 14ZW, the entity may object to the decision,

the Commissioner must notify the entity, in writing, that the entity

may object to the decision.

(6) A failure to comply with subsection (5) does not affect the validity

of the decision.

5 After subsection 8K(2)

Insert:

(2A) Subsection (1) or (1B) does not apply if:

(a) the statement (the original statement) was made under

section 389-5 in Schedule 1 notifying an amount under

item 1 or 2 of the table in subsection 389-5(1) in that

Schedule (and no other item in that table); and

(b) the original statement related to the financial year in which it

was made; and

statement to a taxation officer that corrects the original

statement in each of the respects in which it is false or

misleading in a material particular; and

(d) the further statement:

(i) is in the approved form; and

(ii) if subsection 389-25(1) in that Schedule provides for a

period for correcting the original statement--is made

within that period; and

(iii) without limiting subparagraph (ii), is made within 14

days after the end of the financial year in which the

original statement was made.

Schedule 23 Single touch payroll reporting

Part 1 Reporting by employers

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Budget Savings (Omnibus) Bill 2016

No. , 2016

Note:

A defendant bears an evidential burden in relation to the matters in

subsection (2A), see subsection 13.3(3) of the Criminal Code.

6 Section 8N

Before "A person", insert "(1)".

7 At the end of section 8N

Add:

(2) This section does not apply if:

(a) the statement (the original statement) was made under

section 389-5 in Schedule 1 notifying an amount under

item 1 or 2 of the table in subsection 389-5(1) in that

Schedule (and no other item in that table); and

(b) the original statement related to the financial year in which it

was made; and

statement to a taxation officer that corrects the original

statement in each of the respects in which it is false or

misleading in a material particular; and

(d) the further statement:

(i) is in the approved form; and

(ii) if subsection 389-25(1) in that Schedule provides for a

period for correcting the original statement--is made

within that period; and

(iii) without limiting subparagraph (ii), is made within 14

days after the end of the financial year in which the

original statement was made.

Note:

A defendant bears an evidential burden in relation to the matters in

subsection (2), see subsection 13.3(3) of the Criminal Code.

8 After paragraph 14ZW(1)(aad)

Insert:

(aae) if the taxation objection is made under

subsection 8AAZLGB(4) of this Act (retaining refunds until

notification under Division 389 or ascertainment of

liability)--the period:

(i) starting at the end of the 60 day period after the end of

the day before which, under subsection 8AAZLGB(2),

the Commissioner is required to inform the entity

Single touch payroll reporting Schedule 23

Reporting by employers Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

237

mentioned in section 8AAZLGB that the Commissioner

has retained an amount under that section; and

(ii) ending on the day (if any) on which, under

subsection 8AAZLGB(3), the Commissioner ceases to

be entitled to retain the amount; or

9 At the end of section 16-150 in Schedule 1

Add:

Note:

This section does not apply to amounts that an employer notifies to the

Commissioner under Division 389: see section 389-20.

10 At the end of subsection 16-153(1) in Schedule 1

Add:

Note:

A report under this subsection will not cover amounts that an

employer notifies to the Commissioner under Division 389: see

section 389-20.

11 At the end of subsection 16-153(2) in Schedule 1

Add:

Note:

A report under this subsection will not cover amounts that an

employer notifies to the Commissioner under Division 389: see

section 389-20.

12 At the end of subsection 16-155(2) in Schedule 1

Add:

Note:

A payment summary under this section will not cover amounts that an

employer notifies to the Commissioner under Division 389: see

section 389-20.

13 At the end of subsection 16-160(1) in Schedule 1

Add:

Note:

A payment summary under this section will not cover amounts that an

employer notifies to the Commissioner under Division 389: see

section 389-20.

14 Paragraph 16-160(1)(c) in Schedule 1

Omit "or" (last occurring).

15 Paragraph 16-160(1)(d) in Schedule 1

Repeal the paragraph.

Schedule 23 Single touch payroll reporting

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Budget Savings (Omnibus) Bill 2016

No. , 2016

16 Subsection 16-160(2) in Schedule 1

Repeal the subsection, substitute:

(2) The payer must comply with the request within 14 days after

receiving it, unless:

(a) the recipient is an individual and has a

reportable fringe

benefits amount, for the income year ending at the end of that

financial year, in respect of his or her employment (within

the meaning of the Fringe Benefits Tax Assessment Act 1986)

by the payer; or

(b) the payer has made

reportable employer superannuation

contributions, in respect of the recipient's employment,

during the financial year.

17 At the end of section 16-165 in Schedule 1

Add:

Note:

A payment summary under this section will not cover amounts that an

employer notifies to the Commissioner under Division 389: see

section 389-20.

18 Subsection 269-30(2) in Schedule 1 (cell at table item 1,

column 3)

Repeal the cell, substitute:

to the extent the

company does not, on

or before the last day

mentioned in column

2, notify the

Commissioner:

(a) under

section 16-150 of

the amount the

company is

obliged to pay; or

(b) under

section 389-5 of

the amount the

company is

obliged to

withhold.

Single touch payroll reporting Schedule 23

Reporting by employers Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

239

19 At the end of section 284-75 in Schedule 1

Add:

Further exception to subsection (1)

(8) You are not liable to an administrative penalty under subsection (1)

if:

(a) you made the statement (the original statement) under

section 389-5 notifying an amount under item 1 or 2 of the

table in subsection 389-5(1) (and no other item in that table);

and

(b) the original statement related to the

financial year in which

you made it; and

corrects the original statement in each of the respects in

which it is false or misleading in a material particular; and

(d) the further statement:

(i) is in the

approved form; and

(ii) if subsection 389-25(1) in that Schedule provides for a

period for correcting the original statement--is made

within that period; and

(iii) without limiting subparagraph (ii), is made within 14

days after the end of the financial year in which the

original statement was made.

20 At the end of subsection 286-75(1) in Schedule 1

Add:

Note:

You may not be liable to a penalty in relation to a failure to notify an

amount referred to in item 1 or 2 of the table in section 389-5 during

the period provided for by subitem 22(2) of Schedule 23 to the Budget

Savings (Omnibus) Act 2016.

Taxation (Interest on Overpayments and Early Payments)

Act 1983

21 Section 12AF (paragraph (b) of the definition of RBA

interest day)

Repeal the paragraph, substitute:

Schedule 23 Single touch payroll reporting

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240

Budget Savings (Omnibus) Bill 2016

No. , 2016

(b) if, by the day applicable under paragraph (a), the person has

not given the Commissioner a notification that:

(i) is required for the refund under section 8AAZLG or

8AAZLGB (as the case requires) of the Taxation

Administration Act 1953; and

(ii) that is accurate so far as it relates to the refund;

the day on which that notification is given to the

Commissioner;

Division 3

--Application

22 Application

--required reporting

(1)

The amendments made by this Part apply in relation to an amount that

an entity is required to notify to the Commissioner if the requirement to

notify arises on or after the following day (the application day):

(a) the day determined under item 24;

(b) if no such day is determined:

(i) if the entity was a substantial employer immediately

before 1 July 2018--1 July 2018; or

(ii) otherwise--the first 1 July after which the entity first

becomes a substantial employer after 1 July 2018.

(2)

Despite subitem (1), the entity is not liable to a penalty under

subsection 286-75(1) in Schedule 1 to the Taxation Administration Act

1953 in relation to a failure to notify the Commissioner under

section 389-5 in that Schedule if:

(a) the failure relates to an amount referred to in item 1 or 2 of

the table in section 389-5 in that Schedule; and

(b) the failure occurs during the 12 month period following the

entity's application day; and

failure, given to the entity a written notice that:

(i) related to an earlier failure by the entity to notify the

Commissioner under section 389-5 in that Schedule;

and

(ii) advised the entity that a further failure to comply with

that section may result in the entity being liable to an

administrative penalty.

Single touch payroll reporting Schedule 23

Reporting by employers Part 1

No. , 2016

Budget Savings (Omnibus) Bill 2016

241

23 Application

--voluntary reporting

The amendments made by this Part apply in relation to an amount that

an entity may notify to the Commissioner if the entitlement to notify

arises on or after the following day (the application day):

(a) the day determined under item 24;

(b) if no such day is determined--1 July 2018.

24 Determining the application day

The Commissioner may, by legislative instrument, determine a day that

is later than 1 July 2018 to be the application day.

Schedule 23 Single touch payroll reporting

Part 2 Choice of fund

242

Budget Savings (Omnibus) Bill 2016

No. , 2016

Part 2--Choice of fund

Superannuation Guarantee (Administration) Act 1992

25 Paragraph 32C(2B)(b)

Omit "gives the employer written notice", substitute "or the

Commissioner gives the employer notice".

26 Paragraph 32C(2B)(c)

Omit "that the employee included in the written notice", substitute

"included in the notice".

27 Subparagraph 32C(2B)(c)(i)

Repeal the subparagraph, substitute:

(i) within 21 days after the employer is given the notice;

and

28 Subsection 32F(1)

Repeal the subsection, substitute:

(1) If an employee wants a fund to be a chosen fund for the employee,

the employee must:

(a) give the employer written notice to that effect; or

(b) give the Commissioner a notice to that effect in the approved

form.

Note:

A fund can only be a chosen fund if the employer is able to make

contributions to the fund for the benefit of the employee (see

subsection 32G(2)).

29 Subsection 32F(2)

Omit "gives the notice to the employer", substitute "or the

Commissioner gives the notice to the employer,".

30 Paragraph 32F(3)(a)

After "the employer", insert "or the Commissioner".

Single touch payroll reporting Schedule 23

Choice of fund Part 2

No. , 2016

Budget Savings (Omnibus) Bill 2016

243

31 Subsection 32FA(1)

Omit "if the employee does not provide, together with the notice under

that section", substitute "and notified under paragraph 32F(1)(a) if the

employee does not provide, together with the notice".

32 Paragraph 32H(1)(b)

Omit "the employee has not given", substitute "neither the employee

nor the Commissioner has given".

33 After subsection 32H(1)

Insert:

(1A) The employee may give the employer a written notice, or give the

Commissioner a notice in the approved form, stating that the old

fund continues to be a chosen fund for the employee.

34 Before section 32X

Insert:

32W Disclosing tax file numbers provided in standard choice forms

A taxation officer (within the meaning of the Income Tax

Assessment Act 1997) may disclose another person's tax file

number (within the meaning of that Act) if:

(a) the other person provided the number to the Commissioner in

a notice given to the Commissioner under

paragraph 32F(1)(b); and

(b) the disclosure is to the other person's employer.

Taxation Administration Act 1953

35 Subsection 355-50(2) in Schedule 1 (at the end of the

table)

Add:

any employer (within the

meaning of the Superannuation

Guarantee (Administration) Act

1992)

is for the purpose of disclosing to that

employer information included in a notice

given to the Commissioner under

subsection 32F(1) or 32H(1A) of that Act

by an employee (within the meaning of

that Act) of that employer.

Schedule 23 Single touch payroll reporting

Part 2 Choice of fund

244

Budget Savings (Omnibus) Bill 2016

No. , 2016

36 Application

(1)

The amendments made by items 34 and 35 apply in relation to

disclosures of information on or after 1 January 2017 (whether the

information was acquired before, on or after that day).

(2)

The other amendments made to the Superannuation Guarantee

(Administration) Act 1992 by this Part apply in relation to notices given

on or after 1 January 2017.

Single touch payroll reporting Schedule 23

TFN declarations Part 3

No. , 2016

Budget Savings (Omnibus) Bill 2016

245

Part 3--TFN declarations

Income Tax Assessment Act 1936

37 Subsection 202C(2)

After "the declaration", insert "must be made to the payer or the

Commissioner, and".

38 After subsection 202CF(1)

Insert:

(1A) However, subsection (1) does not apply if the recipient's tax file

number has been disclosed to the payer under section 202CG

before the end of that 14 day period.

39 At the end of Division 3 of Part VA

Add:

202CG Disclosing recipients' tax file numbers to payers

A taxation officer (within the meaning of the Income Tax

Assessment Act 1997) may disclose a recipient's tax file number to

a payer of the recipient if the recipient provided the number to the

Commissioner in a TFN declaration.

Superannuation Industry (Supervision) Act 1993

40 At the end of section 299C

Add:

(4) A disclosure of the employee's tax file number to the employer

under section 202CG of the Income Tax Assessment Act 1936 is

taken, for the purposes of this section, to be a quotation of the

number by the employee to his or her employer in connection with

the operation of Division 3 of Part VA of that Act.

Schedule 23 Single touch payroll reporting

Part 3 TFN declarations

246

Budget Savings (Omnibus) Bill 2016

No. , 2016

41 Application

(1)

The amendment made by item 37 applies in relation to declarations

made on or after 1 January 2017.

(2)

The amendment made by item 38 applies in relation to relationships (of

a kind referred to in subsection 202CF(1) of the Income Tax Assessment

Act 1936) commenced on or after 1 January 2017.

(3)

The amendments made by items 39 and 40 apply in relation to

disclosures of tax file numbers on or after 1 January 2017 (whether the

information was acquired before, on or after that day).

Single touch payroll reporting Schedule 23

TFN validation Part 4

No. , 2016

Budget Savings (Omnibus) Bill 2016

247

Part 4--TFN validation

Income Tax Assessment Act 1936

42 After section 202CE

Insert:

202CEA Validation notices

(1) The Commissioner may give a payer a notice under subsection (2)

if:

(a) the payer gives the Commissioner information that the payer

believes to be:

(i) the full name, tax file number and date of birth of a

person; or

(ii) the full name, tax file number, date of birth and address

of a person; and

(b) the Commissioner is satisfied that:

(i) the person is a recipient of the payer; and

(ii) the recipient has made a TFN declaration in relation to

the payer; and

information (if any) that the Commissioner has recorded for

the tax file number given, that it is reasonable to give the

notice.

(2) The notice must state whether or not the Commissioner is able to

validate the information given.

(3) To avoid doubt, a notice that the Commissioner is not able to

validate the information is not a notice under subsection 202CE(3).

(4) If a person states his or her tax file number in a TFN declaration in

relation to the payer, the payer may use the tax file number in a

manner connecting it with the person's identity for the purpose of

asking the Commissioner to validate information about the person

under this section.

Single appeal path under the Military Rehabilitation and Compensation Act Schedule

No. , 2016

Budget Savings (Omnibus) Bill 2016

249

Schedule 24--Single appeal path under the

Military Rehabilitation and

Compensation Act

Military Rehabilitation and Compensation Act 2004

1 Section 344

Omit "claimant's rights to apply for reconsideration or review",

substitute "claimant's right to apply for review".

2 Section 344

Omit:

There are 2 possible paths in the reconsideration and review

process depending on the type of reconsideration sought by the

claimant.

3 Section 344

Omit "ask the Commission to reconsider it or".

4 Section 344

Omit "If dissatisfied with the determination on reconsideration or

review", substitute "If dissatisfied with the determination on review".

5 Paragraph 345A(2)(c)

Repeal the paragraph.

6 Subsection 346(5)

Omit "request a reconsideration of the determination under section 349

or".

7 Section 349 (heading)

Repeal the heading, substitute:

Schedule 24 Single appeal path under the Military Rehabilitation and Compensation

Act

250

Budget Savings (Omnibus) Bill 2016

No. , 2016

349 Chief of the Defence Force initiating reconsideration of

determinations

8 Subsections 349(1) to (3)

Repeal the subsections.

9 Subsection 352(2)

Repeal the subsection.

10 After subsection 354(1A)

Insert:

(1B) If:

(a) a person applies to the Tribunal for review of a decision (the

reviewable decision) that is a reviewable determination made

by the Board; and

(b) that reviewable determination is a determination affirming an

original determination made by the Commission; and

provides to the Tribunal a document relevant to the review;

and

(d) the Tribunal is satisfied that, at the time when the Board

made the reviewable determination, the Board did not have

the document and the person could have provided the

document to the Board without unreasonable expense or

inconvenience; and

(e) the Tribunal is satisfied that, if the Board had the document

at the time when the Board made the reviewable

determination, the Board would have made a determination

more favourable to the claimant than the reviewable

determination;

then section 42D of the Administrative Appeals Tribunal Act 1975

applies in relation to the review by the Tribunal of the reviewable

decision as if references in that section to the person who made the

decision were instead references to the Commission.

(1C) If, under subsection 42D(1) of the Administrative Appeals Tribunal

Act 1975 (as modified by subsection (1B) of this section), the

Tribunal remits the reviewable decision to the Commission for

reconsideration of that decision by the Commission:

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(a) subsections 42D(2), (5), (6) and (7) of that Act do not apply

in relation to that remittal; and

(b) the Commission must reconsider that decision, and do one of

the following things, within the period of 28 days beginning

on the day on which that decision was remitted to the

Commission:

(i) affirm that decision;

(ii) vary that decision;

(iii) set aside that decision and make a new decision in

substitution for the decision set aside; and

done one of those things, within that 28-day period, the

Commission is taken to have affirmed that decision; and

(d) subsections 42D(3), (4) and (8) of that Act apply in relation

to that remittal.

Note:

Section 42D of the Administrative Appeals Tribunal Act 1975 applies

normally in respect of other kinds of reviewable determinations.

11 After subsection 357(6)

Insert:

(6A) If, in any proceedings, the Tribunal varies or sets aside a

reviewable determination made by the Board, the Tribunal must

not make an order under subsection (2) or (4) in favour of a

claimant in relation to the costs of those proceedings if:

(a) in the course of the review by the Tribunal, the claimant

provided to the Tribunal a document relevant to the review;

and

(b) the Tribunal is satisfied that, at the time when the Board

made the reviewable determination, the Board did not have

the document and the claimant could have provided the

document to the Board without unreasonable expense or

inconvenience; and

at the time when the Board made the reviewable

determination, the Board would have made a determination

more favourable to the claimant than the reviewable

determination.

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(6B) If, in any proceedings, the Tribunal varies or sets aside a

reviewable determination made by the Board, the Tribunal must

not make an order under subsection (2) or (4) in favour of a

claimant in relation to the costs of those proceedings if the

Tribunal is satisfied that:

(a) in connection with the review by the Tribunal or Board, the

claimant was granted legal aid under a Commonwealth, State

or Territory legal aid scheme or service; or

(b) the claimant failed, without reasonable excuse, to appear at

the hearing of the review by the Board; or

failed to comply with a direction under subsection 148(4B) of

the Veterans' Entitlements Act 1986; or

(d) the claimant failed to comply with a notice under section 330

before the Commission made the original determination in

relation to which the reviewable determination was made.

(6C) If, in any proceedings, the Tribunal remits a reviewable

determination made by the Board to the Commission as mentioned

in subsection 354(1C), the Tribunal must not make an order under

subsection (2) or (4) in favour of a claimant in relation to the costs

of those proceedings.

12 Section 359

Omit "Sections 356, 357 and 358 do", substitute "Section 356 does".

13 Application provision

The amendments made by this Schedule apply in relation to original

determinations made on or after the commencement of this item.

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