CLEAN ENERGY (HOUSEHOLD ASSISTANCE AMENDMENTS) BILL 2011

i Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--Clean energy payments under the social security

law

Part 1--Clean energy advances

Division 1--Main amendment

Social Security Act 1991

Division 2--Other amendments

Social Security Act 1991

Social Security (Administration) Act 1999

Part 2--Clean energy supplement

Division 1--Supplement payable from 20 March 2013

Social Security Act 1991

Social Security (Administration) Act 1999

Division 2--Supplement payable from 1 January 2014

Social Security Act 1991

Part 3--Quarterly clean energy supplement

Division 1--Main amendments

Social Security Act 1991

Social Security (Administration) Act 1999

Division 2--Other amendments

Social Security Act 1991

Social Security (Administration) Act 1999

Part 4--Indexation

Social Security Act 1991

Part 5--Other amendments

Social Security Act 1991

Social Security (Administration) Act 1999

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 ii

Schedule 2--Clean energy payments under the family

assistance law

Part 1--Clean energy advances for individuals

A New Tax System (Family Assistance) Act 1999

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

Part 2--Clean energy supplement for individuals

A New Tax System (Family Assistance) Act 1999

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

Part 3--Clean energy advances for approved care

organisations

Part 4--Clean energy supplement for approved care

organisations

A New Tax System (Family Assistance) Act 1999

Part 5--Other amendments

A New Tax System (Family Assistance) Act 1999

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

Schedule 3--Clean energy payments under the Veterans'

Entitlements Act

Part 1--Clean energy advances

Veterans' Entitlements Act 1986

Part 2--Clean energy supplements and quarterly clean energy

supplement

Veterans' Entitlements Act 1986

Part 3--Indexation

109

Veterans' Entitlements Act 1986

109

Schedule 4--Clean energy payments under the Military

Rehabilitation and Compensation Act

117

Part 1--Clean energy advances

117

Military Rehabilitation and Compensation Act 2004

117

Part 2--Clean energy supplements

128

iii Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Division 1--Amendments commencing on 20 March 2013

128

Military Rehabilitation and Compensation Act 2004

128

Division 2--Amendments commencing on 1 July 2013

130

Military Rehabilitation and Compensation Act 2004

130

Part 3--Indexation

132

Military Rehabilitation and Compensation Act 2004

132

Schedule 5--Clean energy payments under the Farm

Household Support Act

133

Farm Household Support Act 1992

133

Social Security Act 1991

144

Schedule 6--Low income supplement

146

Part 1--Amendment of the social security law

146

Social Security Act 1991

146

Social Security (Administration) Act 1999

154

Part 2--Application and transitional provisions

156

Part 3--Other amendments

157

Income Tax Assessment Act 1936

157

Taxation Administration Act 1953

157

Schedule 7--Essential medical equipment payment

158

Part 1--Amendment of the social security law

158

Social Security Act 1991

158

Social Security (Administration) Act 1999

165

Part 2--Amendment of the Veterans' Entitlements Act

166

Veterans' Entitlements Act 1986

166

Part 3--Application and transitional provisions

183

Schedule 8--Single income family supplement

184

A New Tax System (Family Assistance) Act 1999

184

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

194

Schedule 9--Aged care amendments

212

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 1

A Bill for an Act to amend the law relating to social

security, family assistance, veterans' entitlements,

military rehabilitation and compensation, farm

household support and aged care, and for related

purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Clean Energy (Household Assistance

Amendments) Act 2011.

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

2 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

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

according to its terms.

Commencement information

Column 1

Column 2

Column 3

Provision(s)

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,

Part 1

14 May 2012.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

3. Schedule 1,

Part 2, Division 1

20 March 2013.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

4. Schedule 1,

Part 2, Division 2

1 January 2014.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

5. Schedule 1,

Parts 3, 4 and 5

20 March 2013.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

6. Schedule 2

14 May 2012.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 3

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

7. Schedule 3,

Part 1

14 May 2012.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

8. Schedule 3,

Parts 2 and 3

20 March 2013.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

9. Schedule 4,

Part 1

14 May 2012.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

10. Schedule 4,

Part 2, Division 1

20 March 2013.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

11. Schedule 4,

Part 2, Division 2

1 July 2013.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

12. Schedule 4,

Part 3

1 July 2013.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

13. Schedule 5

14 May 2012.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

4 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

14. Schedule 6

Immediately after the commencement of the

provision(s) covered by table item 2.

15. Schedule 7

Immediately after the commencement of the

provision(s) covered by table item 14.

16. Schedule 8

Immediately after the commencement of the

provision(s) covered by table item 6.

17. Schedule 9

1 July 2012.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

18. Schedule 10

14 May 2012.

However, if section 3 of the Clean Energy

Act 2011 does not commence before 14 May

2012, the provision(s) do not commence at

all.

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 Schedule(s)

Each Act 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.

Clean energy payments under the social security law Schedule 1

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 5

Schedule 1--Clean energy payments under

the social security law

Part 1--Clean energy advances

Division 1--Main amendment

Social Security Act 1991

1 After Part 2.18

Insert:

Part 2.18A--Clean energy payments

Division 1--Clean energy advances

Subdivision A--Qualifying for clean energy advances

914 Recipients of certain social security payments

Qualification for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May

2012 and ending on 30 June 2012, determine that a person is

qualified for a clean energy advance if, on that day:

(a) the person receives one of the social security payments set

out in subsection (4); and

(b) the person's rate of payment is greater than nil; and

Qualification for days 1 July 2012 to 19 March 2013

(2) The Secretary may determine that a person is qualified for a clean

energy advance if, on a day during the period starting on 1 July

2012 and ending on 19 March 2013:

(a) the person receives one of the social security payments set

out in subsection (4); and

(b) the person's rate of payment is greater than nil; and

Schedule 1 Clean energy payments under the social security law

Part 1 Clean energy advances

6 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(3) A determination under subsection (2) must specify the first day

during the period set out in that subsection for which the person:

(a) satisfies paragraphs (2)(a) and (b); and

(b) is in Australia, disregarding any temporary absence from

Australia for a continuous period not exceeding 13 weeks.

Clean energy qualifying payments

(4) The social security payments (the clean energy qualifying

payments) are as follows:

(a)

age

pension;

(b) benefit PP (partnered);

(c)

bereavement

allowance;

(d)

carer

payment;

(e) disability support pension (other than for a person who is

under 21 with no dependent children);

(f)

newstart

allowance;

(g) pension PP (single);

(h)

partner

allowance;

(i)

seniors

supplement;

(j)

sickness

allowance;

(k) special benefit, whose rate is worked out as if the person

were qualified for newstart allowance;

(l)

widow

allowance;

(m) widow B pension;

(n)

wife

pension.

914A Recipients of austudy, youth allowance, some disability

support pensions and some special benefits

Qualification for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May

2012 and ending on 30 June 2012, determine that a person is

qualified for a clean energy advance if, on that day:

(a) the person receives one of the social security payments set

out in subsection (5); and

(b) the person's rate of payment is greater than nil; and

Clean energy payments under the social security law Schedule 1

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 7

Qualification for days 1 July 2012 to 30 June 2013

(2) The Secretary may determine that a person is qualified for a clean

energy advance if, on a day during the period starting on 1 July

2012 and ending on 30 June 2013:

(a) the person receives one of the social security payments set

out in subsection (5); and

(b) the person's rate of payment is greater than nil; and

Qualification for days 1 July 2013 to 31 December 2013

(3) The Secretary may determine that a person is qualified for a clean

energy advance if, on a day during the period starting on 1 July

2013 and ending on 31 December 2013:

(a) the person receives one of the social security payments set

out in subsection (5); and

(b) the person's rate of payment is greater than nil; and

First day of qualification under subsection (2) or (3)

(4) A determination under subsection (2) or (3) must specify the first

day during the period set out in that subsection for which the

person:

(a) satisfies paragraphs (a) and (b) of that subsection; and

(b) is in Australia, disregarding any temporary absence from

Australia for a continuous period not exceeding 13 weeks.

Clean energy qualifying payments

(5) The social security payments (the clean energy qualifying

payments) are as follows:

(a)

austudy

payment;

(b) disability support pension for a person who is under 21 with

no dependent children;

were qualified for austudy payment or youth allowance;

(d)

youth

allowance.

Schedule 1 Clean energy payments under the social security law

Part 1 Clean energy advances

8 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

914B Disregard nil rate in certain circumstances

(1) For the purposes of section 914 or 914A, a person is taken to

receive a social security payment at a rate greater than nil even if

the person's rate would be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law.

(2) For the purposes of section 914 or 914A, if a social security

payment is payable to a person because of subsection 23(1D), the

person is taken to receive that payment at a rate greater than nil.

914C Limits on qualifying for multiple advances

(1) A person cannot qualify for more than one clean energy advance

under section 914.

(2) A person can qualify for at most 2 clean energy advances under

section 914A:

(a) one under either subsection 914A(1) or (2); and

(b) one under subsection 914A(3).

(3) A person who has qualified for a clean energy advance under

subsection 914(1) or 914A(1) cannot qualify for a clean energy

advance under the other of those subsections.

Note 1:

Further limits may be determined under section 918.

Note 2:

Top-up payments of clean energy advance may be payable under

Subdivision C if the person's circumstances change during the

person's clean energy advance period.

Subdivision B--Amount of a clean energy advance

914D Amount of a clean energy advance

(1) On the day (the decision day) that the Secretary determines that a

person (the recipient) is qualified for a clean energy advance, the

Secretary must work out the amount of the advance.

Note:

The advance will be paid in a lump sum as soon as is reasonably

practicable (see section 47D of the Administration Act).

Clean energy payments under the social security law Schedule 1

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 9

(2) The amount of the advance is the result of the following formula

rounded up to the nearest multiple of $10:

Clean energy advance daily rate

Number of advance days

�

914E Clean energy advance daily rate

(1)

The

recipient's

clean energy advance daily rate is worked out as

follows:

Working out the recipient's clean energy advance daily rate

If the recipient's clean energy qualifying payment is:

Use this

provision:

(a) age pension; or

(b) bereavement allowance; or

1066A(1) nor 1066B(1) applies; or

(d) wife pension; or

(e) carer payment; or

(f) seniors supplement; or

(g) widow B pension; or

(h) another payment, and the recipient reached pension age

on or before the decision day

subsection (2)

one of the following payments, and the recipient is under

pension age on the decision day:

(a) newstart allowance, if the recipient's maximum basic

rate is worked out under point 1068-B5;

(b) pension PP (single);

is worked out under point 1067G-B3A

subsection (3)

one of the following payments, and the recipient is under

pension age on the decision day:

(a) newstart allowance, if the recipient's maximum basic

rate is not worked out under point 1068-B5;

(b) sickness allowance;

(d) widow allowance;

(e) benefit PP (partnered);

(f) special benefit, whose rate is worked out as if the

subsection (4)

Schedule 1 Clean energy payments under the social security law

Part 1 Clean energy advances

10 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Working out the recipient's clean energy advance daily rate

If the recipient's clean energy qualifying payment is:

Use this

provision:

recipient were qualified for newstart allowance

disability support pension to which subsection 1066A(1)

or 1066B(1) applies

subsection (5)

one of the following payments, and the recipient is under

pension age on the decision day:

(a) austudy payment;

(b) youth allowance, if:

(i) the recipient's maximum basic rate is not worked

out under point 1067G-B3A; and

(ii) the recipient's rate of youth allowance is not

worked out by adding a youth disability

supplement;

recipient were qualified for austudy payment or youth

allowance

subsection (6)

youth allowance, whose rate is worked out by adding a

youth disability supplement

subsection (7)

Note: For

recipient and decision day, see subsection 914D(1).

Rate for payments set out in item 1 of the table

(2)

The

recipient's

clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of:

(i) double the maximum basic rate under Pension Rate

Calculator A, worked out for 1 July 2012 for a person

who is partnered; and

(ii) the combined couple rate of pension supplement for

1 July 2012; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $5.20 (rounding up if that result is not a multiple

of $5.20 but is a multiple of $2.60); and

(d) applying the applicable percentage in the following table to

the result of paragraph (c); and

(e) rounding the result of paragraph (d) up or down to the nearest

multiple of $2.60 (rounding up if that rate is not a multiple of

$2.60 but is a multiple of $1.30); and

Clean energy payments under the social security law Schedule 1

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 11

(f) dividing the result of paragraph (e) by 364.

Percentage to be applied

Item

Recipient's family situation on the

advance qualification day

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

This subsection covers payments covered by Pension Rate Calculator

A, B or C, seniors supplement, recipients of other payments who have

reached pension age and recipients of pensions covered by clause 146

of Schedule 1A.

Rate for payments set out in item 2 of the table

(3)

The

recipient's

clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and

the pension supplement basic amount, for the clean energy

qualifying payment, worked out:

(i) for 1 July 2012; and

(ii) for a person in circumstances the same as the recipient's

on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that result is not a multiple

of $2.60 but is a multiple of $1.30); and

(d) dividing the result of paragraph (c) by 364.

Rate for payments set out in item 3 of the table

(4)

The

recipient's

clean energy advance daily rate is worked out by:

(a) working out 1.7% of the maximum basic rate for the clean

energy qualifying payment, worked out:

(i) for 1 July 2012; and

(ii) for a person in circumstances the same as the recipient's

on the advance qualification day; and

Schedule 1 Clean energy payments under the social security law

Part 1 Clean energy advances

12 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Rate for payments set out in item 4 of the table

(5)

The

recipient's

clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and

the youth disability supplement, for the clean energy

qualifying payment, worked out:

(i) for the first day of the recipient's clean energy advance

period; and

(ii) for a person in circumstances the same as the recipient's

on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that result is not a multiple

of $2.60 but is a multiple of $1.30); and

(d) dividing the result of paragraph (c) by 364.

Rate for payments set out in item 5 of the table

(6)

The

recipient's

clean energy advance daily rate is worked out by:

(a) working out 1.7% of the maximum basic rate for the clean

energy qualifying payment, worked out:

(i) for the first day of the recipient's clean energy advance

period; and

(ii) for a person in circumstances the same as the recipient's

on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Clean energy payments under the social security law Schedule 1

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 13

Rate for payments set out in item 6 of the table

(7)

The

recipient's

clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and

the youth disability supplement, for the clean energy

qualifying payment, worked out:

(i) for the first day of the recipient's clean energy advance

period; and

(ii) for a person in circumstances the same as the recipient's

on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

914F Number of advance days

The

recipient's

number of advance days is the number of days in

the recipient's clean energy advance period that are on or after:

(a) if the recipient qualifies for the clean energy advance before

1 July 2012--1 July 2012; or

(b) otherwise--the advance qualification day.

Subdivision C--Top-up payments of clean energy advance

914G Top-up payments of clean energy advance

(1) The Minister may by legislative instrument determine that persons:

(a) who have been paid the amount (the original payment) of a

specified clean energy advance worked out under

Subdivision B in relation to a clean energy qualifying

payment (the original qualifying payment); and

(b) whose circumstances change, within a period specified in the

instrument, in a way that is specified in the instrument and is

covered by subsection (2) or (3);

qualify for a further payment, of the amount worked out in

accordance with the instrument, of clean energy advance.

(2) This subsection covers a person's circumstances changing in a way

such that:

Schedule 1 Clean energy payments under the social security law

Part 1 Clean energy advances

14 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(a) on the day (the change day) the change happens, the person

was still receiving the original qualifying payment; and

(b) had the amount of the original payment been worked out by

reference to the person's circumstances on the change day

(rather than those on the advance qualification day), a greater

clean energy advance daily rate would have been used for

working out that amount than the rate actually used for

working out that amount.

(3) This subsection covers a change in a person's circumstances that,

apart from a multiple qualification exclusion, would (if any

necessary administrative decisions were made) qualify the person

for a clean energy bonus, under an Act or a scheme, relating to a

payment other than the original qualifying payment.

(4) For the purposes of subsection (3), a multiple qualification

exclusion is an instrument that:

(a) provides a person is not qualified for a clean energy bonus

under an Act or a scheme because of the person's

qualification for or receipt of the original payment or the

original qualifying payment; and

(b) is made under:

(i) section 918; or

(ii) section 424L of the MRCA; or

(iii) section 65A of the Veterans' Entitlements Act;

or is an instrument establishing qualifications for a clean

energy bonus under a scheme.

(5) An instrument under subsection (1) may provide for:

(a) different periods for changes in circumstances depending on

different changes in circumstances; and

(b) different ways of working out further amounts of the original

payment depending on different changes in circumstances.

Division 5--Multiple qualification exclusions

918 Multiple qualification exclusions

(1) The Minister may by legislative instrument determine that persons

in circumstances specified in the instrument cannot qualify for a

Clean energy payments under the social security law Schedule 1

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 15

clean energy bonus under this Act that is specified in the

instrument.

(2) Those circumstances must relate to persons' qualification for or

receipt of one or more of the following:

(a) a clean energy bonus under this Act;

(b) a clean energy bonus under the MRCA;

(d) a clean energy bonus under a scheme (however described),

whether or not the scheme is provided for, by or under an

Act.

(3) An instrument under subsection (1) has effect according to its

terms, despite any other provision of this Act.

Division 2--Other amendments

Social Security Act 1991

2 Subsection 23(1)

Insert:

advance qualification day means:

(a) for a person qualifying for a clean energy advance because of

a determination made under subsection 914(1) or 914A(1)--

the day that determination is made; or

(b) for a person qualifying for a clean energy advance because of

a determination made under subsection 914(2)--the day

specified in that determination because of subsection 914(3);

a determination made under subsection 914A(2) or (3)--the

day specified in that determination because of subsection

914A(4).

Note:

The day specified in the determination because of subsection 914(3)

or 914A(4) is the first day during the clean energy advance period for

which the person satisfies the qualification requirements, disregarding

any short temporary absence from Australia.

3 Subsection 23(1)

Insert:

Schedule 1 Clean energy payments under the social security law

Part 1 Clean energy advances

16 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

clean energy advance means an advance described in Subdivision

A or C of Division 1 of Part 2.18A.

4 Subsection 23(1)

Insert:

clean energy advance daily rate has the meaning given by

section 914E.

5 Subsection 23(1)

Insert:

clean energy advance period means:

(a) for a person qualifying under section 914 for a clean energy

advance--the period starting on 1 July 2012 and ending on

19 March 2013; or

(b) for a person qualifying under subsection 914A(1) or (2) for a

clean energy advance--the period starting on 1 July 2012 and

ending on 30 June 2013; or

energy advance--the period starting on 1 July 2013 and

ending on 31 December 2013.

6 Subsection 23(1)

Insert:

clean energy bonus under an Act or scheme means any of the

following that is provided for by the Act or scheme:

(a) a payment known as a clean energy advance;

and affects the rate of another payment that is provided for by

the Act or scheme.

7 Subsection 23(1)

Insert:

clean energy payment means:

(a) clean energy advance; or

8 Subsection 23(1)

Insert:

Clean energy payments under the social security law Schedule 1

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 17

clean energy qualifying payment, for a person, means:

(a) for a person qualifying under section 914 for a clean energy

advance--the social security payment set out in subsection

914(4) that the person is receiving on the advance

qualification day; or

(b) for a person qualifying under section 914A for a clean energy

advance--the social security payment set out in subsection

914A(5) that the person is receiving on the advance

qualification day.

9 Subsection 23(1)

Insert:

number of advance days has the meaning given by section 914F.

10 After section 1223ABE

Insert:

1224 Debts relating to clean energy advances

(1) This section applies if:

(a) an individual is paid a clean energy advance; and

(b) after the advance is paid, one of the following events happens

to a determination that directly or indirectly affects the

payability or amount of the advance paid to the individual:

(i) the determination is changed, revoked or set aside;

(ii) the determination is superseded by another

determination; and

knowingly made a false or misleading statement or

knowingly provided false information; and

(d) had the event happened on or before the day the advance was

paid:

(i) the advance would not have been paid; or

(ii) the advance would have been reduced.

Note 1:

Examples of determinations directly affecting the payability or

amount of the clean energy advance are as follows:

(a) a determination relating to the person's qualification for the clean

energy qualifying payment to which the advance related;

(b) the determination of the person's qualification for the clean

energy advance.

Schedule 1 Clean energy payments under the social security law

Part 1 Clean energy advances

18 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Note 2:

An example of a determination indirectly affecting the amount of the

advance is a determination relating to a change in circumstances that

results in the person qualifying for a further payment of the advance

under an instrument made under section 914G.

Creation and amount of debt

(2) The advance is a debt due to the Commonwealth by the individual

if subparagraph (1)(d)(i) applies.

(3) The amount by which the advance would have been reduced is a

debt due to the Commonwealth by the individual if

subparagraph (1)(d)(ii) applies.

Relationship with other sections

(4) Apart from section 1224AA, the other provisions of this Part under

which debts arise do not apply in relation to clean energy advances.

Social Security (Administration) Act 1999

11 After section 12J

Insert:

12K Clean energy advance

A claim is not required for a clean energy advance.

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 19

Part 2--Clean energy supplement

Division 1--Supplement payable from 20 March 2013

Social Security Act 1991

12 After section 20A

Insert:

20B Clean energy pension rate

The

clean energy pension rate is the rate worked out by:

(a) working out 1.7% of the total of:

(i) double the maximum basic rate under Pension Rate

Calculator A, worked out for 20 March 2013 for a

person who is partnered; and

(ii) the combined couple rate of pension supplement for

20 March 2013; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $5.20 (rounding up if that result is not a multiple

of $5.20 but is a multiple of $2.60).

Note 1:

This rate is indexed 6 monthly in line with CPI increases (see

sections 1191 to 1194).

Note 2:

This is an annual rate.

13 Subsection 23(1)

Insert:

clean energy pension rate has the meaning given by section 20B.

14 Subsection 23(1)

Insert:

clean energy supplement, for a person, means the addition under

the clean energy supplement Module (if any) of the relevant Rate

Calculator when working out the rate of the person's social

security payment.

15 Subsection 23(1)

Insert:

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

20 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

clean energy (under pension age) rate, for a person, means the

person's clean energy (under pension age) rate worked out under

the clean energy supplement Module (if any) of the Rate Calculator

for the person's social security payment.

16 Subsection 23(1)

Insert:

clean energy (youth disability) rate has the meaning given by

point 1067G-BA6.

17 Section 1061UB

Repeal the section, substitute:

1061UB Rate of seniors supplement

The person's daily rate of seniors supplement, for a particular day,

364

of the amount worked out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of minimum pension supplement;

and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that result is not a multiple

of $2.60 but is a multiple of $1.30); and

the clean energy pension rate if, on that day, the person is

residing in Australia and:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for

a continuous period not exceeding 13 weeks; and

(d) rounding the result of paragraph (c), if any, up or down to the

nearest multiple of $2.60 (rounding up if that result is not a

multiple of $2.60 but is a multiple of $1.30); and

(e) totalling the results of paragraphs (b) and (d).

Percentage to be applied

Item

Person's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 21

Percentage to be applied

Item

Person's family situation

Use this %

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note 1:

For combined couple rate of minimum pension supplement, see

subsection 20A(2).

Note 2:

For clean energy pension rate, see section 20B.

Note 3:

Section 918 may affect the person's qualification for the increase in

rate of seniors supplement as a result of paragraphs (c) and (d).

18 Point 1064-A1 (method statement, after step 1A)

Insert:

Step 1B. Work out the clean energy supplement (if any) using

Module C below.

19 Point 1064-A1 (method statement, step 4)

After "1A", insert ", 1B".

20 Section 1064 (after Module BA)

Insert:

Module C--Clean energy supplement

1064-C1 A clean energy supplement is to be added to the person's

maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

Note:

Section 918 may affect the addition of the clean energy supplement.

1064-C2 However, this Module does not apply if quarterly clean energy

supplement is payable to the person.

1064-C3 The person's clean energy supplement is the amount worked out

by:

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

22 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(a) applying the applicable percentage in the following table to

the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that rate is not a multiple of

$2.60 but is a multiple of $1.30).

Percentage to be applied

Item

Person's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note: For

clean energy pension rate, see section 20B.

21 Point 1065-A1 (method statement, after step 2A)

Insert:

Step 3. Work out the clean energy supplement (if any) using

Module C below.

22 Point 1065-A1 (method statement, step 4)

Omit "and 2A", substitute ", 2A and 3".

23 Section 1065 (after Module BA)

Insert:

Module C--Clean energy supplement

1065-C1 A clean energy supplement is to be added to the person's

maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

Note:

Section 918 may affect the addition of the clean energy supplement.

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 23

1065-C2 However, this Module does not apply if quarterly clean energy

supplement is payable to the person.

1065-C3 The person's clean energy supplement is the amount worked out

by:

(a) applying the applicable percentage in the following table to

the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that rate is not a multiple of

$2.60 but is a multiple of $1.30).

Percentage to be applied

Item

Person's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note: For

clean energy pension rate, see section 20B.

24 Point 1066-A1 (method statement, after step 1A)

Insert:

Step 2. Work out the clean energy supplement (if any) using

Module C below.

25 Point 1066-A1 (method statement, step 4)

After "1A", insert ", 2".

26 Section 1066 (after Module BA)

Insert:

Module C--Clean energy supplement

1066-C1 A clean energy supplement is to be added to the person's

maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

24 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

However, this Module does not apply if quarterly clean energy

supplement is payable to the person.

Note:

Section 918 may affect the addition of the clean energy supplement.

1066-C2 The person's clean energy supplement is the amount worked out

by:

(a) applying the applicable percentage in the following table to

the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that rate is not a multiple of

$2.60 but is a multiple of $1.30).

Percentage to be applied

Item

Person's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note: For

clean energy pension rate, see section 20B.

27 Point 1068-A1 (method statement, after step 1A)

Insert:

Step 1B. Work out the clean energy supplement (if any) using

Module C below.

28 Section 1068 (after Module BA)

Insert:

Module C--Clean energy supplement

1068-C1 A clean energy supplement is to be added to the person's (the

recipient's) maximum basic rate if the recipient is residing in

Australia and:

(a) is in Australia; or

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 25

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

However, this Module does not apply if quarterly clean energy

supplement is payable to the recipient.

Note:

Section 918 may affect the addition of the clean energy supplement.

Recipient has reached pension age

1068-C2 If the recipient has reached pension age and is not covered by point

1068-B5, the recipient's clean energy supplement is

of the

amount worked out by:

(a) applying the applicable percentage in the following table to

the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that rate is not a multiple of

$2.60 but is a multiple of $1.30).

Percentage to be applied

Item

Recipient's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note: For

clean energy pension rate, see section 20B.

Recipient has not reached pension age

1068-C3 If the recipient has not reached pension age and is not covered by

point 1068-B5, the recipient's clean energy supplement is the

recipient's clean energy (under pension age) rate.

1068-C4

The

recipient's

clean energy (under pension age) rate is worked

out by:

(a) working out 1.7% of the maximum basic rate, worked out:

(i) for 20 March 2013; and

(ii) for a person whose circumstances on that day were the

same as the recipient's current circumstances; and

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

26 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

This rate for those circumstances, and the rates for persons with

different circumstances, are indexed 6 monthly in line with CPI

increases (see sections 1191 to 1194).

Recipient covered by point 1068-B5

1068-C5 If the recipient is covered by point 1068-B5, the recipient's clean

energy supplement is the rate worked out under Module BB of the

Pension PP (Single) Rate Calculator as if the recipient were

receiving parenting payment.

29 Point 1068A-A1 (method statement, after step 1A)

Insert:

Step 1B. Work out the clean energy supplement (if any) using

Module BB below.

30 Point 1068A-A1 (method statement, step 4)

After "1A,", insert "1B,".

31 Section 1068A (after Module BA)

Insert:

Module BB--Clean energy supplement

1068A-BB1 A clean energy supplement is to be added to the person's (the

recipient's) maximum basic rate if the recipient is residing in

Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

However, this Module does not apply if quarterly clean energy

supplement is payable to the recipient.

Note:

Section 918 may affect the addition of the clean energy supplement.

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 27

Recipient has reached pension age

1068A-BB2 If the recipient has reached pension age, the recipient's clean

energy supplement is the amount worked out by:

(a) applying the applicable percentage in the following table to

the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that rate is not a multiple of

$2.60 but is a multiple of $1.30).

Percentage to be applied

Item

Recipient's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note: For

clean energy pension rate, see section 20B.

Recipient has not reached pension age

1068A-BB3 If the recipient has not reached pension age, the recipient's clean

energy supplement is the recipient's clean energy (under pension

age) rate.

1068A-BB4 The recipient's clean energy (under pension age) rate is worked

out by:

(a) working out 1.7% of the total of the maximum basic rate, and

the pension supplement basic amount, worked out:

(i) for 20 March 2013; and

(ii) for a person whose circumstances on that day were the

same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that result is not a multiple

of $2.60 but is a multiple of $1.30).

Note:

This rate for those circumstances, and the rates for persons with

different circumstances, are indexed 6 monthly in line with CPI

increases (see sections 1191 to 1194).

32 Point 1068B-A2 (method statement, after step 2A)

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

28 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Insert:

Step 2B. Work out the clean energy supplement (if any) using

Module DB below.

33 Point 1068B-A3 (method statement, after step 2A)

Insert:

Step 2B. Work out the clean energy supplement (if any) using

Module DB below.

34 Section 1068B (after Module DA)

Insert:

Module DB--Clean energy supplement

1068B-DB1 A clean energy supplement is to be added to the person's (the

recipient's) maximum basic rate if the recipient is residing in

Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

However, this Module does not apply if quarterly clean energy

supplement is payable to the recipient.

Note:

Section 918 may affect the addition of the clean energy supplement.

Recipient has reached pension age

1068B-DB2 If the recipient has reached pension age, the recipient's clean

energy supplement is

of the amount worked out by:

(a) applying the applicable percentage in the following table to

the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that rate is not a multiple of

$2.60 but is a multiple of $1.30).

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 29

Percentage to be applied

Item

Recipient's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note: For

clean energy pension rate, see section 20B.

Recipient has not reached pension age

1068B-DB3 If the recipient has not reached pension age, the recipient's clean

energy supplement is the recipient's clean energy (under pension

age) rate.

1068B-DB4 The recipient's clean energy (under pension age) rate is worked

out by:

(a) working out 1.7% of the maximum basic rate, worked out:

(i) for 20 March 2013; and

(ii) for a person whose circumstances on that day were the

same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

This rate for those circumstances, and the rates for persons with

different circumstances, are indexed 6 monthly in line with CPI

increases (see sections 1191 to 1194).

35 After subparagraph 146(4)(a)(i) of Schedule 1A

Insert:

(ia) the person's clean energy supplement (if any) (see

subclause 149(5)); and

36 At the end of clause 149 of Schedule 1A

Add:

Clean energy supplement

(5) If subclause 147(1) or (2) is relevant to the person, the social

security law applies in relation to the person's pension as if:

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

30 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(a) the clean energy supplement Module of the relevant Pension

Rate Calculator were the same as Module C of Pension Rate

Calculator A; and

(b) the person's clean energy supplement (if any) resulting from

that Module were used to work out the rate of the person's

pension.

Note 1:

This clean energy supplement is included in the total worked out

under paragraph 146(4)(a) (see subparagraph 146(4)(a)(ia)).

Note 2:

This subclause causes Division 2 of Part 2.18A (Quarterly clean

energy supplement) of this Act to apply. If quarterly clean energy

supplement is payable, then no clean energy supplement will be

available to be included in the total worked out under paragraph

146(4)(a) (see point 1064-C1 of this Act).

Note 3:

Other effects of this subclause include:

(a) the possibility of the minimum amount of fortnightly instalments

of the pension being affected under section 43 of the

Administration Act; and

(b) that section 1210 will affect the operation of reductions of the

maximum payment rate because of the income test and assets

test.

Social Security (Administration) Act 1999

37 Subsection 48B(3)

Repeal the subsection, substitute:

(3) The amount of the instalment is worked out by:

(a) working out the amount of the person's seniors supplement

for each day during the test period on which the person was

qualified for seniors supplement; and

(b) adding up the amounts resulting from paragraph (a).

Division 2--Supplement payable from 1 January 2014

Social Security Act 1991

38 Point 1066A-A1 (method statement, after step 1)

Insert:

Step 1A. Work out the clean energy supplement (if any) using

Module BA below.

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 31

39 Point 1066A-A1 (method statement, step 5)

After "1, ", insert "1A,".

40 Section 1066A (after Module B)

Insert:

Module BA--Clean energy supplement

1066A-BA1 A clean energy supplement is to be added to the person's

maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

However, this Module does not apply if quarterly clean energy

supplement is payable to the person.

Note:

Section 918 may affect the addition of the clean energy supplement.

1066A-BA2 The person's (the recipient's) clean energy supplement is the

recipient's clean energy (under pension age) rate.

1066A-BA3 For the purposes of point 1066A-BA2, the recipient's clean energy

(under pension age) rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and

the youth disability supplement, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the

same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that result is not a multiple

of $2.60 but is a multiple of $1.30).

Note:

This rate for those circumstances, and the rates for persons with

different circumstances, are indexed 12 monthly in line with CPI

increases (see sections 1191 to 1194).

41 Point 1066B-A1 (method statement, after step 2)

Insert:

Step 2A. Work out the clean energy supplement (if any) using

Module BA below.

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

32 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

42 Point 1066B-A1 (method statement, step 5)

After "2,", insert "2A,".

43 Section 1066B (after Module B)

Insert:

Module BA--Clean energy supplement

1066B-BA1 A clean energy supplement is to be added to the person's

maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

However, this Module does not apply if quarterly clean energy

supplement is payable to the person.

Note:

Section 918 may affect the addition of the clean energy supplement.

1066B-BA2 The person's (the recipient's) clean energy supplement is the

recipient's clean energy (under pension age) rate.

1066B-BA3 For the purposes of point 1066B-BA2, the recipient's clean energy

(under pension age) rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and

the youth disability supplement, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the

same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that result is not a multiple

of $2.60 but is a multiple of $1.30).

Note:

This rate for those circumstances, and the rates for persons with

different circumstances, are indexed 12 monthly in line with CPI

increases (see sections 1191 to 1194).

44 Point 1067G-A1 (method statement, after step 1)

Insert:

Step 1A. Work out the clean energy supplement (if any) using

Module BA below.

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 33

45 Section 1067G (after Module B)

Insert:

Module BA--Clean energy supplement

1067G-BA1 A clean energy supplement is to be added to the person's (the

recipient's) maximum basic rate if the recipient is residing in

Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

However, this Module does not apply if quarterly clean energy

supplement is payable to the recipient.

Note:

Section 918 may affect the addition of the clean energy supplement.

General case--recipient not covered by point 1067G-B3A and

youth disability supplement not added

1067G-BA2 The recipient's clean energy supplement is the recipient's clean

energy (under pension age) rate if:

(a) the recipient is not covered by point 1067G-B3A; and

(b) an amount of youth disability supplement is not added under

Module D to the recipient's rate.

1067G-BA3 For the purposes of point 1067G-BA2, the recipient's clean energy

(under pension age) rate is worked out by:

(a) working out 1.7% of the maximum basic rate, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the

same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

This rate for those circumstances, and the rates for persons with

different circumstances, are indexed 12 monthly in line with CPI

increases (see sections 1191 to 1194).

Recipient covered by point 1067G-B3A

1067G-BA4 If the recipient is covered by point 1067G-B3A, the recipient's

clean energy supplement is the rate worked out under Module BB

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

34 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

of the Pension PP (Single) Rate Calculator as if the recipient were

receiving parenting payment.

Youth disability supplement added to the recipient's rate

1067G-BA5 If an amount of youth disability supplement is added under Module

D to the recipient's rate, the recipient's clean energy supplement is

the recipient's clean energy (youth disability) rate.

1067G-BA6 The recipient's clean energy (youth disability) rate is worked out

by:

(a) working out 1.7% of the total of the maximum basic rate, and

the youth disability supplement, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the

same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

This rate for those circumstances, and the rates for persons with

different circumstances, are indexed 12 monthly in line with CPI

increases (see sections 1191 to 1194).

46 Point 1067L-A1 (method statement, after step 1A)

Insert:

Step 1B. Work out the clean energy supplement (if any) using

Module BB below.

47 Point 1067L-A1 (method statement, step 3)

After "1A,", insert "1B,".

48 Section 1067L (after Module BA)

Insert:

Module BB--Clean energy supplement

1067L-BB1 A clean energy supplement is to be added to the person's (the

recipient's) maximum basic rate if the recipient is residing in

Australia and:

Clean energy payments under the social security law Schedule 1

Clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 35

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

However, this Module does not apply if quarterly clean energy

supplement is payable to the recipient.

Note:

Section 918 may affect the addition of the clean energy supplement.

Recipient has reached pension age

1067L-BB2 If the recipient has reached pension age, the recipient's clean

energy supplement is

of the amount worked out by:

(a) applying the applicable percentage in the following table to

the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that rate is not a multiple of

$2.60 but is a multiple of $1.30).

Percentage to be applied

Item

Recipient's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note: For

clean energy pension rate, see section 20B.

Recipient has not reached pension age

1067L-BB3 If the recipient has not reached pension age, the recipient's clean

energy supplement is the recipient's clean energy (under pension

age) rate.

1067L-BB4 The recipient's clean energy (under pension age) rate is worked

out by:

(a) working out 1.7% of the maximum basic rate, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the

same as the recipient's current circumstances; and

Schedule 1 Clean energy payments under the social security law

Part 2 Clean energy supplement

36 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

This rate for those circumstances, and the rates for persons with

different circumstances, are indexed 12 monthly in line with CPI

increases (see sections 1191 to 1194).

Clean energy payments under the social security law Schedule 1

Quarterly clean energy supplement Part 3

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 37

Part 3--Quarterly clean energy supplement

Division 1--Main amendments

Social Security Act 1991

49 After Division 1 of Part 2.18A

Insert:

Division 2--Quarterly clean energy supplement

915 When quarterly clean energy supplement is payable

Quarterly clean energy supplement is payable to a person for each

day for which an election by the person under subsection 915A(1)

or 1061VA(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 clean

energy supplement.

915A Electing to receive quarterly clean energy supplement

(1)

If:

(a) Part 2.25C (about quarterly pension supplement) does not

apply to a person in relation to a social security payment the

person is receiving; and

(b) clean energy supplement is used to work out the rate of that

social security payment;

the person may, in a manner or way approved by the Secretary,

make an election to receive the person's clean energy supplement

under this Division as a separate social security payment.

Note:

The person could make an election under subsection 1061VA(1) if

Part 2.25C applies to the person in relation to the social security

payment. That election would cause quarterly clean energy

supplement to be payable (see section 915).

(2) An election comes into force as soon as practicable after it is made.

(3) An election ceases to be in force if the person ceases to receive a

social security payment (a main payment) calculated using a Rate

Calculator that has a clean energy supplement Module.

Schedule 1 Clean energy payments under the social security law

Part 3 Quarterly clean energy supplement

38 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(4) The person may, in a manner or way approved by the Secretary,

revoke an election. A revocation takes effect as soon as practicable

after it happens.

915B Rate of quarterly clean energy supplement

(1) The person's daily rate of quarterly clean energy supplement, for a

particular day, is:

(a) if the Rate Calculator for the main payment received on that

day produces an annual rate--

364

of the amount that, apart

from this Division, would be the person's clean energy

supplement for that day; or

(b) if the Rate Calculator for the main payment received on that

day produces a fortnightly rate--

of the amount that, apart

from this Division, would be the person's clean energy

supplement for that day.

(2) This section has effect subject to subsection 1210(3A).

Social Security (Administration) Act 1999

50 After section 48C

Insert:

48D Payment of quarterly clean energy supplement

(1) Quarterly clean energy supplement is to be paid by instalments.

(2) An instalment of quarterly clean energy supplement is to be paid to

a person as soon as is reasonably practicable on or after the first

supplement test day (the current test day) that follows a day for

which quarterly clean energy supplement is payable to the person.

Note:

For when quarterly clean energy supplement is payable to the person,

see section 915 of the 1991 Act.

(3) The amount of the instalment is worked out by:

(a) working out the amount of the person's quarterly clean

energy supplement for each day during the test period for

which quarterly clean energy supplement is payable to the

person; and

(b) adding up the amounts resulting from paragraph (a).

Clean energy payments under the social security law Schedule 1

Quarterly clean energy supplement Part 3

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 39

(4) In this section:

supplement test day means:

(a) 20 March; or

(b) 20 June; or

(d)

December.

test period means the period:

(a) starting on the most recent supplement test day before the

current test day; and

(b) ending on the day immediately before the current test day.

Division 2--Other amendments

Social Security Act 1991

51 Subsection 23(1) (after paragraph (a) of the definition of

clean energy bonus)

Insert:

(b) a payment known as a clean energy supplement or a quarterly

clean energy supplement;

52 Subsection 23(1) (after paragraph (a) of the definition of

clean energy payment)

Insert:

(b) quarterly clean energy supplement; or

53 Subsection 23(1)

Insert:

quarterly clean energy supplement means the separate social

security payment described in Division 2 of Part 2.18A.

54 Subsections 44(2), 98(2), 148(2), 199(2), 316(2) and 364(2)

Omit "subsection 1061VA(1)", substitute "subsection 915A(1) (about

quarterly clean energy supplement) or 1061VA(1) (about quarterly

pension supplement)".

55 Paragraphs 408CA(2)(a) and 500I(2)(a)

Schedule 1 Clean energy payments under the social security law

Part 3 Quarterly clean energy supplement

40 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Omit "subsection 1061VA(1)", substitute "subsection 915A(1) (about

quarterly clean energy supplement) or 1061VA(1) (about quarterly

pension supplement)".

56 Subsection 547(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 915A(1) (about

quarterly clean energy supplement) is in force; or

(b) an advance pharmaceutical allowance has been paid to the

person under the social security law.

57 Paragraphs 572(2)(a), 608(2)(a), 677(2)(a), 732(2)(a) and

771HC(2)(a)

Omit "subsection 1061VA(1)", substitute "subsection 915A(1) (about

quarterly clean energy supplement) or 1061VA(1) (about quarterly

pension supplement)".

Social Security (Administration) Act 1999

58 After section 12DA

Insert:

12DB Quarterly clean energy supplement

A claim is not required for quarterly clean energy supplement.

59 Subsection 55(1)

After "48C", insert ", 48D".

Clean energy payments under the social security law Schedule 1

Indexation Part 4

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 41

Part 4--Indexation

Social Security Act 1991

60 Section 1190 (after table item 1AC)

Insert:

1AD Clean

energy

pension rate

CEP rate

Section 20B

1AE Clean

energy

(under pension age)

rate 1

CEUPA rate1

Each rate worked out under point

1068-C4 or 1068B-DB4

1AF Clean

energy

(under pension age)

rate 2

CEUPA rate2

Each rate worked out under point

1068A-BB4

1AG Clean

energy

(under pension age)

rate 3

CEUPA rate3

Each rate worked out under point

1067G-BA3 or 1067L-BB4

1AH Clean

energy

(under pension age)

rate 4

CEUPA rate4

Each rate worked out under point

1066A-BA3 or 1066B-BA3

1AI Clean

energy

(youth disability)

rate

CEYD rate

Each rate worked out under point

1067G-BA6

61 Section 1190 (note)

Omit "Note", substitute "Note 1".

62 At the end of section 1190

Add:

Note 2:

Indexing the CEP rate, CEUPA rate1, CEUPA rate2, CEUPA rate3,

CEUPA rate4 and CEYD rate will result in the indexation of the rate

of quarterly clean energy supplement (see Division 2 of Part 2.18A).

Indexing the CEP rate will result in the indexation of the rate of

seniors supplement (see section 1061UB).

63 Subsection 1191(1) (after table item 1C)

Insert:

CEP rate

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June

December

$5.20

Schedule 1 Clean energy payments under the social security law

Part 4 Indexation

42 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

quarter

before

reference

quarter (but

not earlier

than June

quarter

2011)

CEUPA rate1

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June

December

quarter

before

reference

quarter (but

not earlier

than June

quarter

2011)

$0.10

CEUPA rate2

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June

December

quarter

before

reference

quarter (but

not earlier

than June

quarter

2011)

$2.60

CEUPA rate3

1 January

June

highest June

quarter

before

reference

quarter (but

not earlier

than June

quarter

2011)

$0.10

CEUPA rate4

1 January

June

highest June

quarter

before

reference

$2.60

Clean energy payments under the social security law Schedule 1

Indexation Part 4

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 43

quarter (but

not earlier

than June

quarter

2011)

CEYD rate

1 January

June

highest June

quarter

before

reference

quarter (but

not earlier

than June

quarter

2011)

$0.10

64 At the end of subsection 1192(2)

Add:

Note 3:

On and after 20 March 2013, the indexation of certain amounts may

be affected by Division 8.

65 After subsection 1192(3C)

Insert:

(3D) The first indexation of amounts under item 1D, 1E or 1F of the CPI

Indexation Table in subsection 1191(1) is to take place on

20 September 2013.

(3E) The first indexation of amounts under item 1G, 1H or 1J of the CPI

Indexation Table in subsection 1191(1) is to take place on

1 January 2015.

66 Subsection 1196(2) (note)

Omit "Note", substitute "Note 1".

67 At the end of subsection 1196(2)

Add:

Note 2:

On and after 20 March 2013, the indexation of certain amounts may

be affected by Division 8.

68 At the end of Part 3.16

Add:

Schedule 1 Clean energy payments under the social security law

Part 4 Indexation

44 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Division 8--Adjustments relating to clean energy

household assistance

1206GF Special rules for indexation of certain rates on or after

20 March 2013

(1) The indexation factor for an amount set out in subsection (2) on an

indexation day on or after 20 March 2013 is to be reduced by the

brought forward CPI indexation amount, but not below 1.

Note:

Once the brought forward CPI indexation amount becomes 0, there

will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on

20 March 2013 is 1.003. The brought forward CPI indexation amount

in relation to 20 March 2013 is 0.007 (as there has been no previous

reduction). That indexation factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the indexation factor is

1.010. The brought forward CPI indexation amount in relation to

20 September 2013 is 0.004. That indexation factor is reduced to

1.006 on 20 September 2013.

The brought forward CPI indexation amount in relation to later

indexation days is now 0 so there is no further reduction of the

indexation factor.

(2) For the purposes of subsection (1), the amounts are as follows:

(a)

pension

MBR;

(b)

rate;

(d) PS basic rate;

(e) benefit MBR (ordinary);

(f) pension supplement component for pension bonus;

(g) maximum transitional pension rates.

(3) The living cost indexation factor worked out under section 1197:

(a) for pension MBR, except to the extent that pension MBR

covers the maximum basic rate for pension PP (single); and

(b) for each indexation day on or after 20 March 2013;

is to be reduced by the brought forward PBLCI indexation amount,

but not below 1.

Note:

Once the brought forward PBLCI indexation amount becomes 0, there

will be no further reduction of the factor.

Clean energy payments under the social security law Schedule 1

Indexation Part 4

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 45

Example: Assume that the living cost indexation factor worked out under

section 1197 on 20 March 2013 is 1.003. The brought forward PBLCI

indexation amount in relation to 20 March 2013 is 0.007 (as there has

been no previous reduction). That indexation factor is reduced to 1 on

20 March 2013.

Further assume that on 20 September 2013 the living cost indexation

factor is 1.010. The brought forward PBLCI indexation amount in

relation to 20 September 2013 is 0.004. That indexation factor is

reduced to 1.006 on 20 September 2013.

The brought forward PBLCI indexation amount in relation to later

indexation days is now 0 so there is no further reduction of the living

cost indexation factor.

(4) Neither paragraph (2)(a), nor subsection (3), affect:

(a) the rate of a payment worked out under clause 146 of

Schedule 1A; or

(b) an amount worked out in relation to a pension because of

clause 149 of that Schedule.

(5) In this section:

brought forward CPI indexation amount, in relation to a day,

means:

(a) if subsection (3) applies for the amount, and the brought

forward PBLCI indexation amount in relation to the day is

0--0; and

(b) otherwise--0.007 less any reduction made under

subsection (1) for a previous day.

brought forward PBLCI indexation amount, in relation to a day,

means:

(a) if the brought forward CPI indexation amount in relation to

the day is 0--0; and

(b) otherwise--0.007 less any reduction made under

subsection (3) for a previous day.

1206GG Special rules for indexation of certain rates on or after

1 January 2014

(1) The indexation factor for AP MBR or YA MBR on an indexation

day on or after 1 January 2014 is to be reduced by the brought

forward indexation amount, but not below 1.

(2) In this section:

Schedule 1 Clean energy payments under the social security law

Part 4 Indexation

46 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

brought forward indexation amount, in relation to a day, means

0.007 less any reduction made under this section for a previous

day.

Note:

Once the brought forward indexation amount becomes 0, there will be

no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on

1 January 2014 is 1.003. The brought forward indexation amount in

relation to 1 January 2014 is 0.007 (as there has been no previous

reduction). That indexation factor is reduced to 1 on 1 January 2014.

Further assume that on 1 January 2015 the indexation factor is 1.010.

The brought forward indexation amount in relation to 1 January 2015

is 0.004. That indexation factor is reduced to 1.006 on 1 January 2015.

The brought forward indexation amount in relation to later indexation

days is now 0 so there is no further reduction of the indexation factor.

Clean energy payments under the social security law Schedule 1

Other amendments Part 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 47

Part 5--Other amendments

Social Security Act 1991

69 Subsection 17(8)

Repeal the subsection, substitute:

(8) For the purposes of the definition of income cut-out amount in

subsection (1), the formula is as follows:

Pension

Clean energy

Ordinary

Maximum

supplement

free area

basic rate

component

limit

�

where:

clean energy supplement component means the clean energy

supplement worked out under point 1064-C3 for a person who is

not a member of a couple:

(a) whether or not the person for whom the income cut-out

amount is being worked out is a member of a couple; and

(b) whether or not that Module applies to the person for whom

the income cut-out amount is being worked out.

maximum basic rate means the amount specified in column 3 of

item 1 of the table in point 1064-B1.

ordinary free area limit means the amount specified in column 3

of item 1 in Table E-1 in point 1064-E4.

pension supplement component means the pension supplement

amount worked out under point 1064-BA3 for a person who is not

a member of a couple:

(a) whether or not the person for whom the income cut-out

amount is being worked out is a member of a couple; and

(b) whether or not that point applies to the person for whom the

income cut-out amount is being worked out.

70 Subsection 1061ECA(2) (method statement, at the end of

step 2)

Add:

Schedule 1 Clean energy payments under the social security law

Part 5 Other amendments

48 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

; and (c)

the person's clean energy supplement (if any).

71 Point 1067L-A1 (method statement, step 5) (note)

Omit "(maximum basic rate first, then pharmaceutical allowance)".

72 Point 1068-A1 (note 1)

Omit "(maximum basic rate first, then rent assistance)".

73 Point 1068A-A1 (note 1)

Omit "(maximum basic rate first, then rent assistance, then

pharmaceutical allowance)".

74 Section 1190 (table item 49C)

Omit "[Pension Rate Calculator A--point 1064-C8--Table--column

3--item 6] [Pension Rate Calculator B--point 1065-C8--Table--

column 3--item 6]".

Note:

This item omits references to table items that have been repealed.

75 Paragraph 1210(1)(a)

Omit "either", substitute "one or more".

76 After subparagraph 1210(1)(a)(i)

Insert:

(ia) the clean energy supplement Module (the CE Module);

77 Subsection 1210(1) (after table item 4)

Insert:

the amount of any increase under the CE Module

78 Subsection 1210(1) (note)

Repeal the note, substitute:

Note 1:

For table item 4A, the amount will be nil if quarterly clean energy

supplement is payable to the person (for example, see point 1064-C2).

Note 2:

Table item 5 will not apply if an election by the person under

subsection 1061VA(1) is in force, as the rate would have already been

reduced to nil.

79 After subsection 1210(3)

Clean energy payments under the social security law Schedule 1

Other amendments Part 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 49

Insert:

(3A)

If:

(a) quarterly clean energy supplement is payable to a person; and

(b) if quarterly clean energy supplement were not payable to the

person:

(i) the rate (the main rate) of the person's social security

payment would be increased under the CE Module of

the Rate Calculator; and

(ii) the main rate would be reduced as described in

paragraph (1)(b);

the person's quarterly clean energy supplement is reduced to the

same extent (if any) that the component of the main rate that would

correspond to the person's clean energy supplement would be

reduced under subsection (1) were quarterly clean energy

supplement not payable to the person.

Note:

The reduction may be disregarded unless the person's quarterly clean

energy supplement is reduced to nil (see subsection 43(5B) of the

Administration Act).

80 Subsection 1210(4)

Repeal the subsection, substitute:

(4) The following table sets out details of the Modules relevant to

subsection (1):

Relevant Modules

Pension

Rate

Calculator

Module

Income

test

Module

Assets

test

Module

1 Pension

Rate

Calculator A,

section 1064

BA none

C E G

2 Pension

Rate

Calculator C,

section 1066

BA none

C E G

3 Pension

Rate

Calculator D,

section 1066A

none D

BA F

4 Youth

none C

none

Schedule 1 Clean energy payments under the social security law

Part 5 Other amendments

50 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Relevant Modules

Pension

Rate

Calculator

Module

Income

test

Module

Assets

test

Module

Allowance Rate

Calculator,

section 1067G

5 Austudy

Payment Rate

Calculator,

section 1067L

BA C BB D none

6 Benefit

Rate

Calculator B,

section 1068

BA D C G none

7 Pension

(Single) Rate

Calculator,

section 1068A

BA C BB E none

8 Benefit

(partnered) Rate

Calculator,

section 1068B

DA E DB D none

Social Security (Administration) Act 1999

81 Paragraph 43(4)(a)

After "social security payment", insert "(other than a social security

pension)".

82 Subsection 43(5)

Omit "In this section", substitute "In subsection (4)".

83 After subsection 43(5)

Insert:

(5AA)

If:

(a) either or both of the following amounts (the added amounts)

are added to a person's maximum basic rate for a particular

day in working out the amount of an instalment of a social

security pension:

Clean energy payments under the social security law Schedule 1

Other amendments Part 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 51

(i) a pension supplement amount;

(ii) clean energy supplement; and

(b) if one of the added amounts is a pension supplement amount

used by the Rate Calculator to produce an annual rate--the

pension supplement amount is more than the person's

pension supplement basic amount; and

or 1061VA(1) of the 1991 Act in force on that day; and

(d) apart from this subsection, the portion of the instalment

corresponding to that day would be less than the person's

minimum daily rate, but more than a nil amount;

the amount of that portion of the instalment is to be increased to

the person's minimum daily rate.

(5AB) For the purposes of subsection (5AA), a person's minimum daily

rate is

364

of the total of:

(a) the person's minimum pension supplement amount, if a

pension supplement amount is an added amount; and

(b) the person's clean energy supplement, if clean energy

supplement is an added amount.

84 After subsection 43(5A)

Insert:

No reduction of portion of quarterly clean energy supplement

relating to a day

(5B)

If:

(a) quarterly clean energy supplement is payable to a person for

a particular day; and

(b) the social security payment to which the quarterly clean

energy supplement relates is a social security pension; and

person's quarterly clean energy supplement that corresponds

to that day would be reduced under subsection 1210(3A) of

the 1991 Act, but not reduced to a nil amount;

the amount of that portion of the instalment is not to be reduced

under subsection 1210(3A) of the 1991 Act.

Schedule 2 Clean energy payments under the family assistance law

Part 1 Clean energy advances for individuals

52 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Schedule 2--Clean energy payments under

the family assistance law

Part 1--Clean energy advances for individuals

A New Tax System (Family Assistance) Act 1999

1 Subsection 3(1)

Insert:

absent overseas FTB child has the meaning given by section 63.

2 Subsection 3(1)

Insert:

clean energy advance means an advance to which an individual is

entitled under Division 1 or 3 of Part 8.

3 After Part 7

Insert:

Part 8--Clean energy advances

Division 1--Entitlement to clean energy advances

103 Entitlement in normal circumstances

Entitlement for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May

2012 and ending on 30 June 2012, determine that an individual is

entitled to a clean energy advance if:

(a) in relation to that day:

(i) a determination under section 16 of the Family

Assistance Administration Act is in force in respect of

the individual as a claimant; or

(ii) a determination under section 18 of the Family

Assistance Administration Act is in force in respect of

the individual because the Secretary is satisfied that the

Clean energy payments under the family assistance law Schedule 2

Clean energy advances for individuals Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 53

individual is eligible for family tax benefit under

section 32 of this Act; and

(b) the individual is in Australia on that day; and

out under Division 1 of Part 4 but disregarding reductions (if

any) under clause 5 or 25A of Schedule 1, is greater than nil;

and

(d) that rate was worked out taking into account at least one FTB

child of the individual who is in Australia on that day; and

(e) on that day, neither section 32AA nor 32AD of the Family

Assistance Administration Act prevents the Secretary from

making a payment of family tax benefit to the individual, or

the individual's partner, worked out on the basis referred to

in subsection 20(1), (2A) or (3) of that Act.

Note:

The amount of the advance is worked out under sections 105 and 106.

Entitlement for days 1 July 2012 to 30 June 2013

(2) The Secretary may determine that an individual is entitled to a

clean energy advance if:

(a) in relation to any day during the period starting on 1 July

2012 and ending on 30 June 2013:

(i) a determination under section 16 or 17 of the Family

Assistance Administration Act is in force in respect of

the individual as a claimant; or

(ii) a determination under section 18 of the Family

Assistance Administration Act is in force in respect of

the individual because the Secretary is satisfied that the

individual is eligible for family tax benefit under

section 32 of this Act; and

(b) the individual is not an absent overseas recipient on that day

(disregarding section 63A); and

out under Division 1 of Part 4 but disregarding reductions (if

any) under clause 5 or 25A of Schedule 1, is greater than nil;

and

(d) that rate was worked out taking into account at least one FTB

child of the individual who is not an absent overseas FTB

child on that day (disregarding section 63A).

Note:

The amount of the advance is worked out under sections 105 and 106.

Schedule 2 Clean energy payments under the family assistance law

Part 1 Clean energy advances for individuals

54 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(3) However, the Secretary must not make a determination under

subsection (2) on a day before 1 July 2013 if:

(a) on that day:

(i) the individual is outside Australia and the individual left

Australia before 1 April 2013; and

(ii) the individual is not an absent overseas recipient

(disregarding section 63A); or

(b) on that day:

(i) each FTB child of the individual is outside Australia

and each FTB child of the individual left Australia

before 1 April 2013; and

(ii) each FTB child of the individual is not an absent

overseas FTB child (disregarding section 63A).

Operation of section 32

(4) For the purposes of paragraphs (1)(c) and (d) and (2)(c) and (d),

disregard section 32.

One clean energy advance only

(5) An individual is not entitled to more than one clean energy

advance under this section.

104 Entitlement where death occurs

(1) The Secretary may determine that an individual is entitled to a

clean energy advance if:

(a) in relation to any day during the period starting on 1 July

2012 and ending on 30 June 2013, a determination under

section 18 of the Family Assistance Administration Act is in

force in respect of the individual because the Secretary is

satisfied that the individual is eligible for family tax benefit

under section 33 of this Act because of the death of another

individual; and

(b)

either:

(i) the Secretary has determined that the other individual

was entitled to an amount of a clean energy advance, but

the other individual died before the amount was paid; or

Clean energy payments under the family assistance law Schedule 2

Clean energy advances for individuals Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 55

(ii) the Secretary is satisfied that the other individual would

have become entitled to an amount of a clean energy

advance if the other individual had not died.

Note:

The amount of the advance is worked out under section 107.

(2) If the Secretary makes a determination under subsection (1),

no-one else is, or can become, entitled to a clean energy advance

because of the death of the other individual.

Division 2--Amount of clean energy advance

105 Amount of advance where entitlement under section 103

(1) On the day (the decision day) that the Secretary determines that an

individual is entitled to a clean energy advance under section 103,

the Secretary must work out the amount of the advance.

Secretary determines entitlement before 1 July 2012

(2) If the decision day is before 1 July 2012, the amount of the

individual's clean energy advance is, subject to subsections (5) and

(6), worked out as follows:

Method statement

Step 1. Work out the individual's clean energy daily rate (see

section 106) on the decision day (assuming that any rate

or amount that is to be indexed on 1 July 2012 had

already been indexed on the decision day).

Step 2. Multiply the amount at step 1 by 365: the result is the

amount of the individual's clean energy advance.

Secretary determines entitlement in the 2012-13 income year

(3) If the decision day is on or after 1 July 2012 and before 1 July

2013, the amount of the individual's clean energy advance is,

subject to subsections (5) and (6), worked out as follows:

Method statement

Schedule 2 Clean energy payments under the family assistance law

Part 1 Clean energy advances for individuals

56 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Step 1. Work out the sum of the individual's clean energy daily

rates (see section 106) for each day in the period

beginning on 1 July 2012 and ending on the decision day.

Step 2. Multiply the individual's clean energy daily rate on the

decision day by the number of days in the 2012-13

income year that are after the decision day.

Step 3. Work out the sum of the amounts at steps 1 and 2: the

result is the amount of the individual's clean energy

advance.

Secretary determines entitlement on or after 1 July 2013

(4) If the decision day is on or after 1 July 2013, the amount of the

individual's clean energy advance is, subject to subsections (5) and

(6), the sum of the individual's clean energy daily rates (see

section 106) for each day in the 2012-13 income year.

Reduced amount if rate took account of a section 28 or 29

percentage determination

(5) If, in relation to any of the following days:

(a) if the decision day is before 1 July 2012--the decision day;

(b) if the decision day is on or after 1 July 2012 and before

1 July 2013--a day in the period beginning on 1 July 2012

and ending on the decision day;

2012-13 income year;

a determination under section 28 or 29 of a particular percentage in

relation to one or more FTB children of the individual is in effect,

the clean energy daily rate for that day is that percentage of the

clean energy daily rate that would otherwise apply.

Legislative instrument

(6)

If:

(a) an individual is entitled to a clean energy advance under

section 103 in relation to an FTB child; and

(b) before the decision day in relation to the individual, a former

partner of the individual was entitled to a clean energy

Clean energy payments under the family assistance law Schedule 2

Clean energy advances for individuals Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 57

advance under section 103 or 108 in relation to that FTB

child; and

individual and the former partner were members of the same

couple;

then:

(d) subsections (2) to (5) do not apply in relation to working out

the amount of the individual's clean energy advance; and

(e) the amount of the individual's clean energy advance is

worked out in accordance with an instrument made under

subsection (7) (which may be nil).

(7) The Minister may, by legislative instrument, specify a method for

working out the amount of clean energy advances for the purposes

of subsection (6).

106 Clean energy daily rate

(1)

individual's

clean energy daily rate for a day is worked out as

follows:

Method statement

Step 1. If the individual's rate of family tax benefit on that day

(disregarding reductions (if any) under clause 5 or 25A of

Schedule 1) consisted of or included a Part A rate greater

than nil:

(a)

if the Part A rate is worked out under clause 3 of

Schedule 1 and the individual's income and

maintenance tested rate exceeds the individual's

base rate--work out the sum of the amounts at

paragraphs (a) and (ca) of step 1 of the method

statement in that clause; or

(b)

if the Part A rate is worked out under clause 3 of

Schedule 1 and the individual's income and

maintenance tested rate is less than or equal to the

individual's base rate--work out the sum of the

amounts at paragraphs (a) and (d) of step 1 of the

method statement in clause 25 of that Schedule; or

Schedule 2 Clean energy payments under the family assistance law

Part 1 Clean energy advances for individuals

58 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(c)

if the Part A rate is worked out under clause 25 of

Schedule 1 and the individual's Method 2 income

and maintenance tested rate is less than or equal to

the individual's provisional Part A rate--work out

the sum of the amounts at paragraphs (a) and (d) of

step 1 of the method statement in that clause; or

(d)

if the Part A rate is worked out under clause 25 of

Schedule 1 and the individual's Method 2 income

and maintenance tested rate exceeds the

individual's provisional Part A rate--work out the

sum of the amounts at paragraphs (a) and (ca) of

step 1 of the method statement in clause 3 of that

Schedule.

Step 2. If the individual's rate of family tax benefit on that day

consisted of or included a Part B rate greater than nil,

work out whichever of the following amounts is

appropriate:

(a)

the sum of the amounts under paragraphs 29(1)(a)

and (b) of Schedule 1;

(b)

the sum of the amounts at paragraphs (a) and (b) of

step 1 of the method statement in subclause 29(2)

of Schedule 1;

(c)

the sum of the amounts under paragraphs

29A(2)(a) and (b) of Schedule 1.

Step 3. Work out the sum of the amounts at steps 1 and 2.

Step 4. Multiply the amount at step 3 by 0.017.

Step 5. Divide the amount at step 4 by 365 (rounded to the

nearest cent (rounding 0.5 cents upwards)): the result is

the individual's clean energy daily rate for that day.

(2) If steps 1 and 2 of the method statement in subsection (1) do not

apply in relation to an individual on a day, the individual's clean

energy daily rate for that day is nil.

Clean energy payments under the family assistance law Schedule 2

Clean energy advances for individuals Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 59

(3)

individual's

clean energy daily rate for a day is nil if the

individual is an absent overseas recipient on that day (disregarding

section 63A).

(4) The calculation under subsection (1) for a day is to be done

disregarding any FTB child of the individual who is an absent

overseas FTB child (disregarding section 63A) on that day.

(5) The calculation under subsection (1) is to be done disregarding

section 32.

(6)

If:

(a) the decision day (see subsection 105(1)) is before 1 July

2013; and

(b) on the decision day:

(i) an FTB child of the individual is outside Australia and

the FTB child left Australia before 1 April 2013; and

(ii) that FTB child is not an absent overseas FTB child

(disregarding section 63A);

then the calculation under subsection (1) of this section on the

decision day is to be done disregarding that FTB child.

(7) If the child referred to in subsection (6) returns to Australia before

1 July 2013, then, for the purposes of section 108, there is taken to

be a change in the individual's circumstances on the day of the

child's return.

(8) If the child referred to in subsection (6) does not return to Australia

before 1 July 2013, then, for the purposes of section 108, there is

taken to be a trigger day of 30 June 2013 in relation to the

individual.

107 Amount of advance where entitlement under section 104

If the Secretary makes a determination under subsection 104(1)

that an individual is entitled to a clean energy advance, the amount

of the advance is the amount referred to in subparagraph

104(1)(b)(i) or (ii) (as the case requires).

Schedule 2 Clean energy payments under the family assistance law

Part 1 Clean energy advances for individuals

60 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Division 3--Top-up payments of clean energy advance

108 Top-up payments of clean energy advance

General case

(1)

If:

(a) the Secretary pays a clean energy advance (the original

payment) to an individual in circumstances where the

Secretary determined the individual is entitled to the advance

under section 103 and where the amount of the advance is not

worked out under subsection 105(6); and

(b) the decision day (see subsection 105(1)) is before 1 July

2013; and

1 July 2013, the individual's circumstances change so that:

(i) if the individual has not previously become entitled to a

payment under this section--the amount of the original

payment is less than the amount of the clean energy

advance that would have been paid to the individual if

the decision day had been the trigger day; or

(ii) if the individual has previously become entitled to one

or more payments under this section--the sum of those

payments and the original payment is less than the

amount of the clean energy advance that would have

been paid to the individual if the decision day had been

the trigger day;

then the individual is entitled to a further payment of clean energy

advance equal to the amount of the shortfall.

Case involving former partner

(2)

If:

(a) the Secretary pays a clean energy advance (the original

payment) to an individual in circumstances where the

Secretary determined the individual is entitled to the advance

under section 103 and where the amount of the advance is

worked out under subsection 105(6); and

(b) the decision day (see subsection 105(1)) is before 1 July

2013; and

Clean energy payments under the family assistance law Schedule 2

Clean energy advances for individuals Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 61

individual's circumstances change; and

(d) the individual is entitled to a further payment of clean energy

advance in accordance with an instrument made under

subsection (3);

then the amount of the individual's further clean energy advance is

worked out in accordance with an instrument made under

subsection (3) (which may be nil).

(3) The Minister may, by legislative instrument:

(a) specify the circumstances in which individuals are entitled to

further payments of clean energy advances for the purposes

of subsection (2); and

(b) specify a method for working out the amount of further clean

energy advances for the purposes of subsection (2).

Interpretation

(4) For the purposes of this section, there is taken not to be a change in

the individual's circumstances merely because a determination

under section 28 in relation to the individual is varied or ceases to

be in force.

Division 4--General rules

109 General rules

If:

(a) an individual is entitled to a clean energy advance under

section 103 or 108 in relation to an FTB child; and

(b) the amount of the advance was not worked out by applying

subsection 105(5);

then, while the individual is a member of a couple, the other

member of the couple is not entitled to a clean energy advance

under section 103 or 108 in relation to that child.

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

1999

4 After Division 4C of Part 3

Schedule 2 Clean energy payments under the family assistance law

Part 1 Clean energy advances for individuals

62 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Insert:

Division 4D--Clean energy advance

65J Payment of clean energy advance

(1) Subject to this section, if an individual is entitled to a clean energy

advance, the Secretary must pay the advance to the individual in a

single lump sum:

(a) on the day that the Secretary considers to be the earliest day

on which it is reasonably practicable for the advance to be

paid; and

(b) in such manner as the Secretary considers appropriate.

Note:

The individual does not have to make a claim for the advance.

(2)

If:

(a) the decision day (see subsection 105(1) of the Family

Assistance Act) or the trigger day (see subsection 108(1) or

(2) of that Act), as the case may be, is on or after 1 July 2012

and before 1 July 2013; and

(b) on that day, section 32AA or 32AD of this Act prevents the

Secretary from making a payment of family tax benefit to the

individual, or the individual's partner, worked out on the

basis referred to in subsection 20(1), (2A) or (3) of this Act;

then the Secretary must not pay the clean energy advance to the

individual at a time that is earlier than the time family tax benefit is

paid to the individual, or the individual's partner, in relation to that

day.

(3)

If:

(a) the decision day (see subsection 105(1) of the Family

Assistance Act) is on or after 1 July 2013; and

(b) in relation to one or more days in the 2012-13 income year,

section 32AA or 32AD of this Act prevents the Secretary

from making a payment of family tax benefit to the

individual, or the individual's partner, worked out on the

basis referred to in subsection 20(1), (2A) or (3) of this Act;

then the Secretary must not pay the clean energy advance to the

individual at a time that is earlier than the time family tax benefit is

paid to the individual, or the individual's partner, in relation to

those days.

Clean energy payments under the family assistance law Schedule 2

Clean energy advances for individuals Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 63

5 At the end of subsection 66(1)

Add:

; (j) clean energy advance.

6 Section 70

Omit "or single income family bonus", substitute ", single income

family bonus or a clean energy advance".

7 After section 71K

Insert:

71L Debts arising in respect of clean energy advance

(1) This section applies in relation to an individual who has been paid

a clean energy advance.

(2) For the purposes of this section, the relevant determination in

relation to the individual is the determination referred to in

paragraph 103(1)(a) or (2)(a) or 104(1)(a) of the Family Assistance

Act.

Situation in which whole amount is a debt

(3)

If:

(a) after the advance was paid to the individual, the relevant

determination in relation to the individual, at least so far as it

relates to a day in the period starting on 1 July 2012 and

ending on 30 June 2013, is or was (however described)

changed, revoked, set aside or superseded by another

determination; and

(b) the decision to change, revoke, set aside or supersede the

relevant determination is or was made for the reason, or for

reasons including the reason, that the individual knowingly

made a false or misleading statement, or knowingly provided

false information; and

occurred on or before the day the advance was paid, the

advance would not have been paid;

the amount of the advance is a debt due to the Commonwealth by

the individual.

Schedule 2 Clean energy payments under the family assistance law

Part 1 Clean energy advances for individuals

64 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Situation in which part of amount is a debt

(4)

If:

(a) after the advance was paid to the individual, the relevant

determination in relation to the individual, at least so far as it

relates to a day in the period starting on 1 July 2012 and

ending on 30 June 2013, is or was (however described)

changed, revoked, set aside or superseded by another

determination; and

(b) the decision to change, revoke, set aside or supersede the

relevant determination is or was made for the reason, or for

reasons including the reason, that the individual knowingly

made a false or misleading statement, or knowingly provided

false information; and

occurred on or before the day the advance was paid, the

amount of the advance would have been reduced;

the amount by which the advance would have been reduced is a

debt due to the Commonwealth by the individual.

8 Paragraph 74(a)

Omit "or single income family bonus", substitute ", single income

family bonus or clean energy advance".

9 Subsection 82(3) (paragraph (a) of the definition of debt)

After "71K,", insert "71L,".

10 Subsection 93A(6) (at the end of the definition of family

assistance payment)

Add:

; or (f) a payment of clean energy advance.

11 Subsection 106(3)

Omit "or single income family bonus", substitute ", single income

family bonus or clean energy advance".

12 Subsection 109D(4)

Omit "or single income family bonus", substitute ", single income

family bonus or clean energy advance".

Schedule 2 Clean energy payments under the family assistance law

Part 2 Clean energy supplement for individuals

66 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Part 2--Clean energy supplement for individuals

A New Tax System (Family Assistance) Act 1999

15 After section 58

Insert:

58A Election to receive clean energy supplements quarterly

(1) If a determination under section 16 of the Family Assistance

Administration Act is in force in a quarter under which an

individual is entitled to be paid family tax benefit by instalment,

the individual may, in a manner or way approved by the Secretary,

make an election to have Division 2B of Part 4 of Schedule 1 to

this Act and Division 2AA of Part 5 of that Schedule disregarded.

Note 1:

Those Divisions deal with clean energy supplement (Part A) and clean

energy supplement (Part B).

Note 2:

If those Divisions are disregarded, they will be taken into account

when the determination is reviewed under section 105 of the Family

Assistance Administration Act after the end of a quarter--see

section 105B of that Act.

(2) An election comes into force as soon as practicable after it is made.

(3) An election ceases to be in force if the individual ceases to be

entitled to be paid family tax benefit under the determination.

Revoking an election

(4) The individual may, in a manner or way approved by the Secretary,

revoke an election. A revocation takes effect as soon as practicable

after it is made.

Definition

(5) In this section:

quarter means a period of 3 months beginning on 1 July,

1 October, 1 January or 1 April.

Note:

This section applies in relation to the quarter beginning on 1 July 2013

and all later quarters: see item 34 of Schedule 2 to the Clean Energy

(Household Assistance Amendments) Act 2011.

Clean energy payments under the family assistance law Schedule 2

Clean energy supplement for individuals Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 67

16 Clause 3 of Schedule 1 (after paragraph (ca) of step 1 of

the method statement)

Insert:

(cb)

the individual's clean energy supplement (Part A)

under Subdivision A of Division 2AA of Part 5

(clause 38AA);

17 At the end of Division 1 of Part 2 of Schedule 1

Add:

6 Components of Part A rates under this Part

The Minister may, by legislative instrument, determine a method

for working out the extent to which Part A rates under this Part are

attributable to the amounts referred to in step 1 of the method

statement in clause 3.

18 Clause 25 of Schedule 1 (paragraph (d) of step 1 of the

method statement)

Omit "(clause 38A).", substitute "(clause 38A);".

19 Clause 25 of Schedule 1 (after paragraph (d) of step 1 of

the method statement)

Insert:

(e)

the individual's clean energy supplement (Part A)

under Subdivision B of Division 2AA of Part 5

(clause 38AF).

20 At the end of Division 1 of Part 3 of Schedule 1

Add:

25B Components of Part A rates under this Part

The Minister may, by legislative instrument, determine a method

for working out the extent to which Part A rates under this Part are

attributable to the amounts referred to in step 1 of the method

statement in clause 25.

Schedule 2 Clean energy payments under the family assistance law

Part 2 Clean energy supplement for individuals

68 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

21 At the end of subclause 29(1) of Schedule 1

Add:

; (c) the individual's clean energy supplement (Part B) under

Division 2B (clause 31B).

22 Subclause 29(2) of Schedule 1 (paragraph (b) of step 1 of

the method statement)

Omit "(clause 31A).", substitute "(clause 31A);".

23 Subclause 29(2) of Schedule 1 (after paragraph (b) of step

1 of the method statement)

Insert:

(c)

the individual's clean energy supplement (Part B)

under Division 2B (clause 31B).

24 Subclause 29(2) of Schedule 1 (method statement, step 3)

Omit "(taking away so much of the individual's standard rate, and then

so much (if any) of the individual's FTB Part B supplement, as equals

the reduction)".

25 After subclause 29(2) of Schedule 1

Insert:

(2A) The Minister may, by legislative instrument, determine a method

for working out the extent to which Part B rates under

subclause (2) are attributable to the amounts referred to in step 1 of

the method statement in subclause (2).

26 At the end of subclause 29A(2) of Schedule 1

Add:

; (c) the individual's clean energy supplement (Part B) under

Division 2B in respect of the day (clause 31B).

27 After Division 2A of Part 4 of Schedule 1

Insert:

Clean energy payments under the family assistance law Schedule 2

Clean energy supplement for individuals Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 69

Division 2B--Clean energy supplement (Part B)

31B Clean energy supplement (Part B)

(1) The amount of the clean energy supplement (Part B) to be added in

working out an individual's Part B rate under clause 29 or 29A is

worked out using the following table. Work out which family

situation applies to the individual. Subject to clause 31C, the clean

energy supplement (Part B) is the amount worked out under

subclause (2).

Clean energy supplement (Part B)

Item Family

situation

Youngest FTB child is under 5 years of age

Youngest FTB child is 5 years of age or over

(2) For the purposes of subclause (1), the clean energy supplement

(Part B), in relation to an item in the table in subclause (1), is

worked out as follows:

Method statement

Step 1. Work out the amount applicable on 1 July 2013 under the

corresponding item of the table in clause 30.

Step 2. Work out the FTB (B) gross supplement amount on

1 July 2013 under subclause 31A(2).

Step 3. Work out the sum of the amounts at steps 1 and 2.

Step 4. Multiply the amount at step 3 by 0.017.

Step 5. Round the amount at step 4 to the nearest multiple of

$3.65 (rounding up if necessary): the result is the clean

energy supplement (Part B).

(3) This clause does not apply in relation to a day if an election made

by the individual under subsection 58A(1) is in force on that day.

Note:

If that election is in force on one or more days in a quarter, then after

the end of the quarter the Secretary must review the instalment

Schedule 2 Clean energy payments under the family assistance law

Part 2 Clean energy supplement for individuals

70 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

determination taking into account this Division: see section 105B of

the Family Assistance Administration Act.

31C Sharing family tax benefit (shared care percentages)

(1)

If:

(a) an individual has a shared care percentage for an FTB child

of the individual; and

(b) the child is the individual's only FTB child;

the individual's clean energy supplement (Part B) is the

individual's shared care percentage of the clean energy supplement

(Part B) that would otherwise apply.

(2)

If:

(a) an individual has a shared care percentage for an FTB child

of the individual; and

(b) the child is not the individual's only FTB child;

the individual's clean energy supplement (Part B) is to be worked

out as follows:

individual does not have a shared care percentage, work out

the amount that would be the individual's clean energy

supplement (Part B) under clause 31B if that child were the

individual's only FTB child;

(d) for each of the individual's FTB children for whom the

individual has a shared care percentage, work out the amount

that would be the individual's clean energy supplement (Part

B) under clause 31B if:

(i) that child were the individual's only FTB child; and

(ii) subclause (1) of this clause applied to the child;

(e) the individual's clean energy supplement (Part B) is the

highest of the amounts obtained under paragraphs (c) and (d).

28 After Division 2A of Part 5 of Schedule 1

Insert:

Clean energy payments under the family assistance law Schedule 2

Clean energy supplement for individuals Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 71

Division 2AA--Clean energy supplement (Part A)

Subdivision A--Clean energy supplement (Part A--Method 1)

38AA Clean energy supplement (Part A--Method 1)

(1) The amount of the clean energy supplement (Part A) to be added in

working out an individual's maximum rate under clause 3 is

worked out using the following table. Work out which category

applies to each FTB child of the individual. Subject to

clauses 38AB to 38AE, the FTB clean energy child amount is

worked out under subclause (2). The clean energy supplement (Part

A) is the sum of the FTB clean energy child amounts.

Clean energy supplement (Part A--Method 1)

Item

Category of FTB child

FTB child who is under 13 years of age

FTB child who has reached 13, but is under 16,

years of age

FTB child who has reached 16 years of age and

who is a senior secondary school child

FTB child who has reached 16, but is under 18,

years of age and who is not a senior secondary

school child

FTB child who has reached 18, but is under 22,

years of age and who is not a senior secondary

school child

(2) For the purposes of subclause (1), the FTB clean energy child

amount, in relation to an item in the table in subclause (1), is

worked out as follows:

Method statement

Step 1. Work out the amount applicable on 1 July 2013 under the

corresponding item of the table in clause 7.

Step 2. Work out the FTB gross supplement amount on 1 July

2013 under subclause 38A(3).

Schedule 2 Clean energy payments under the family assistance law

Part 2 Clean energy supplement for individuals

72 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Step 3. Work out the sum of the amounts at steps 1 and 2.

Step 4. Multiply the amount at step 3 by 0.017.

Step 5. Round the amount at step 4 to the nearest multiple of

$3.65 (rounding up if necessary): the result is the FTB

clean energy child amount.

(3) This clause does not apply in relation to a day if an election made

by the individual under subsection 58A(1) is in force on that day.

Note:

If that election is in force on one or more days in a quarter, then after

the end of the quarter the Secretary must review the instalment

determination taking into account this Subdivision: see section 105B

of the Family Assistance Administration Act.

38AB Base FTB clean energy child amount

For the purposes of this Division, the base FTB clean energy child

amount for an FTB child of an individual is the amount that would

be the FTB clean energy child amount under subclause 38AF(2) if

the individual's clean energy supplement (Part A) were being

worked out under Subdivision B and clause 38AG did not apply.

38AC FTB clean energy child amount--recipient of other periodic

payments

The FTB clean energy child amount for an FTB child of an

individual is the base FTB clean energy child amount (see

clause 38AB) if:

(a) the individual or the individual's partner is receiving a

periodic payment under a law of the Commonwealth and the

law provides for an increase in the rate of payment by

reference to an FTB child of the individual; or

(b) the individual or the individual's partner is receiving a

periodic payment under a scheme administered by the

Commonwealth and the scheme provides for an increase in

the rate of payment by reference to an FTB child of the

individual.

Clean energy payments under the family assistance law Schedule 2

Clean energy supplement for individuals Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 73

38AD Effect of maintenance rights

The FTB clean energy child amount for an FTB child of an

individual is the base FTB clean energy child amount (see

clause 38AB) if:

(a) the individual or the individual's partner is entitled to claim

or apply for maintenance for the child; and

(b) the Secretary considers that it is reasonable for the individual

or partner to take action to obtain maintenance; and

Secretary considers reasonable to obtain maintenance.

38AE Sharing family tax benefit (shared care percentages)

If an individual has a shared care percentage for an FTB child of

the individual, the FTB clean energy child amount for the child, in

working out the individual's clean energy supplement (Part A), is

the individual's shared care percentage of the FTB clean energy

child amount that would otherwise apply to the child.

Subdivision B--Clean energy supplement (Part A--Method 2)

38AF Clean energy supplement (Part A--Method 2)

(1) The amount of the clean energy supplement (Part A) to be added in

working out an individual's Method 2 base rate under clause 25 is

worked out using the following table. Work out which category

applies to each FTB child of the individual. Subject to

clause 38AG, the FTB clean energy child amount is the amount

worked out under subclause (2). The clean energy supplement (Part

A) is the sum of the FTB clean energy child amounts.

Clean energy supplement (Part A--Method 2)

Item

Category of FTB child

FTB child who has not turned 18, or who has

turned 18 and who is a senior secondary school

child

FTB child who has turned 18 and who is not a

senior secondary school child

Schedule 2 Clean energy payments under the family assistance law

Part 2 Clean energy supplement for individuals

74 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(2) For the purposes of subclause (1), the FTB clean energy child

amount, in relation to an item in the table in subclause (1), is

worked out as follows:

Method statement

Step 1. Work out the amount applicable on 1 July 2013 under:

(a)

for item 1 of that table--paragraph 26(2)(a); or

(b)

for item 2 of that table--paragraph 26(2)(b).

Step 2. Work out the FTB gross supplement amount on 1 July

2013 under subclause 38A(3).

Step 3. Work out the sum of the amounts at steps 1 and 2.

Step 4. Multiply the amount at step 3 by 0.017.

Step 5. Round the amount at step 4 to the nearest multiple of

$3.65 (rounding up if necessary): the result is the FTB

clean energy child amount.

(3) This clause does not apply in relation to a day if an election made

by the individual under subsection 58A(1) is in force on that day.

Note:

If that election is in force on one or more days in a quarter, then after

the end of the quarter the Secretary must review the instalment

determination taking into account this Subdivision: see section 105B

of the Family Assistance Administration Act.

38AG Sharing family tax benefit (shared care percentages)

If an individual has a shared care percentage for an FTB child of

the individual, the FTB clean energy child amount for the child, in

working out the individual's clean energy supplement (Part A), is

the individual's shared care percentage of the FTB clean energy

child amount that would otherwise apply to the child.

29 Clause 2 of Schedule 4 (after table item 8A)

Insert:

Clean energy payments under the family assistance law Schedule 2

Clean energy supplement for individuals Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 75

FTB clean energy child

amount for family tax

benefit (Part A)

FTB clean energy child

amount

[Schedule 1--

subclause 38AA(2)--

all FTB clean energy

child amounts]

[Schedule 1--

subclause 38AF(2)--

all FTB clean energy

child amounts]

30 Clause 2 of Schedule 4 (after table item 9A)

Insert:

9B Clean

energy

supplement

(Part B) for family tax

benefit (Part B)

Clean energy

supplement (Part B)

[Schedule 1--

subclause 31B(2)--all

clean energy

supplement (Part B)

amounts]

31 Subclause 3(1) of Schedule 4 (after table item 8A)

Insert:

8B FTB

clean

energy child

amount

1 July

December

highest

December

quarter

before

reference

quarter (but

not earlier

than

December

quarter

2012)

$3.65

32 Subclause 3(1) of Schedule 4 (after table item 9A)

Insert:

Schedule 2 Clean energy payments under the family assistance law

Part 2 Clean energy supplement for individuals

76 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

9B Clean

energy

supplement

(Part B)

1 July

December

highest

December

quarter

before

reference

quarter (but

not earlier

than

December

quarter

2012)

$3.65

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

1999

33 After section 105A

Insert:

105B Review of instalment determination--taking account of clean

energy supplements

(1) This section applies if:

(a) a determination under section 16 is in force in a quarter under

which an individual is entitled to be paid family tax benefit

by instalment; and

(b) disregarding subsection (2) of this section, an election made

by the individual under subsection 58A(1) of the Family

Assistance Act is in force on one or more days in that quarter.

(2) After the end of that quarter:

(a) for the purposes of subsection 105(1), the Secretary is taken

to be satisfied that there is sufficient reason to review the

determination; and

(b) the Secretary must exercise the power conferred by

subsection 105(1) to review the determination; and

(i) Division 2B of Part 4 of Schedule 1 to the Family

Assistance Act and Division 2AA of Part 5 of that

Schedule applied in relation to those days; and

(ii) the election was not in force on those days.

Clean energy payments under the family assistance law Schedule 2

Clean energy supplement for individuals Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 77

Note:

Those Divisions deal with clean energy supplement (Part A) and clean

energy supplement (Part B).

Definition

(3) In this section:

quarter means a period of 3 months beginning on 1 July,

1 October, 1 January or 1 April.

Note:

This section applies in relation to the quarter beginning on 1 July 2013

and all later quarters: see item 34 of Schedule 2 to the Clean Energy

(Household Assistance Amendments) Act 2011.

34 Application of amendments

(1)

The amendments made by items 15 and 33 apply in relation to the

quarter beginning on 1 July 2013 and all later quarters.

(2)

The amendments made by items 16 to 28 apply in relation to the

2013-14 income year and later income years.

(3)

The amendments made by items 29 to 32 apply in relation to the

indexation day that is 1 July 2014 and all later indexation days.

35 Saving

(1)

This item applies if:

(a) under subitem 6(2) of Schedule 1 to the Family Assistance

and Other Legislation Amendment Act 2011, the amendments

made by that Schedule do not affect the payability to an

individual (the adult) of family tax benefit for another

individual (the child) for a day in the period (the transitional

period) described in subitem 6(4) of that Schedule; and

(b) immediately before 1 July 2013, that period had not ended.

(2)

For the purposes of working out if item 5 of the table in subclause

38AA(1) of Schedule 1 to the A New Tax System (Family Assistance)

Act 1999 applies in relation to the adult and the child on or after 1 July

2013 and before the end of the transitional period, the reference in that

item to 22 is taken to be a reference to 25.

Schedule 2 Clean energy payments under the family assistance law

Part 3 Clean energy advances for approved care organisations

78 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Part 3--Clean energy advances for approved care

organisations

36 Administrative scheme for paying clean energy advances

to approved care organisations

(1)

A Minister administering the A New Tax System (Family Assistance)

Act 1999 may, by legislative instrument, determine a scheme under

which payments of clean energy advances may be made to approved

care organisations (within the meaning of that Act) in particular

circumstances. The Minister may, by legislative instrument, vary or

revoke the scheme.

(2)

The circumstances in which the scheme provides for payments must be

circumstances occurring in relation to the period starting on 14 May

2012 and ending on 30 June 2013.

(3)

Without limiting subitem (1), the scheme may deal with the following:

(a) the circumstances in which payments are to be made;

(b) the amount of the payments;

payment;

(d)

debt

recovery;

(e) administrative matters, such as determination of entitlement

and how and when payments will be made;

(f) the review of decisions made under the scheme (including

internal review, review by the Social Security Appeals

Tribunal or review by the Administrative Appeals Tribunal).

(4)

For the purposes of subsection 12(1) of the Legislative Instruments Act

2003, an instrument made under subitem (1) (except an instrument of

revocation) does not take effect until the end of the period in which it

could be disallowed in either House of the Parliament.

(5)

Payments under the scheme are to be made out of the Consolidated

Revenue Fund, which is appropriated accordingly.

Clean energy payments under the family assistance law Schedule 2

Clean energy supplement for approved care organisations Part 4

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 79

Part 4--Clean energy supplement for approved care

organisations

A New Tax System (Family Assistance) Act 1999

37 Subsection 58(2)

Repeal the subsection, substitute:

Annual rate of family tax benefit to approved care organisation

(2) An approved care organisation's annual rate of family tax benefit

for an individual is the sum of:

(a) the organisation's standard rate under subsection (2A); and

(b) the organisation's clean energy supplement under

subsection (2B).

(2A) An approved care organisation's standard rate for an individual is

$1,372.40.

(2B) An approved care organisation's clean energy supplement for an

individual is worked out as follows:

Method statement

Step 1. Work out the amount applicable under subsection (2A)

on 1 July 2013.

Step 2. Multiply the amount at step 1 by 0.017.

Step 3. Round the amount at step 2 to the nearest multiple of

$3.65 (rounding up if necessary): the result is the clean

energy supplement.

38 Clause 2 of Schedule 4 (table item 10)

Repeal the item, substitute:

Standard rate of family tax

benefit payable to an

approved care organisation

FTB standard ACO

rate

[subsection 58(2A)]

Schedule 2 Clean energy payments under the family assistance law

Part 4 Clean energy supplement for approved care organisations

80 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

39 Clause 2 of Schedule 4 (before table item 11)

Insert:

10A Clean

energy

supplement

payable to an approved

care organisation

ACO clean energy

supplement

[subsection 58(2B)]

40 Subclause 3(1) of Schedule 4 (table item 10)

Omit "FTB ACO rate", substitute "FTB standard ACO rate".

41 Subclause 3(1) of Schedule 4 (before table item 11)

Insert:

10A ACO

clean

energy

supplement

1 July

December

highest

December

quarter

before

reference

quarter (but

not earlier

than

December

quarter

2012)

$3.65

42 Application

(1)

Paragraph 58(2)(b) and subsection 58(2B) of the A New Tax System

(Family Assistance) Act 1999, as inserted by this Act, apply in relation

to the 2013-14 income year and later income years.

(2)

The amendments made by items 39 and 41 apply in relation to the

indexation day that is 1 July 2014 and all later indexation days.

Clean energy payments under the family assistance law Schedule 2

Other amendments Part 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 81

Part 5--Other amendments

A New Tax System (Family Assistance) Act 1999

43 Paragraph 21(1)(c)

After "Schedule 1", insert "and disregarding section 58A and

subclauses 31B(3), 38AA(3) and 38AF(3) of Schedule 1".

44 Subclause 5(1) of Schedule 4

After "subclauses (2) and (3)", insert "and clauses 10 and 11".

45 Part 4 of Schedule 4 (heading)

Repeal the heading, substitute:

Part 4--Transitional indexation provisions

46 At the end of Part 4 of Schedule 4

Add:

10 Adjustment of indexation factor for certain amounts on and after

1 July 2013

(1) This clause applies to the following amounts:

(a) FTB child rate (A1);

(b) FTB child rate (A2);

(d) FTB standard ACO rate.

(2) For each amount to which this clause applies, the indexation factor,

worked out under clause 5 for each indexation day that is on or

after 1 July 2013, is to be reduced by the brought forward

indexation amount, but not below 1.

(3) In this clause:

brought forward indexation amount, in relation to an indexation

day, means 0.007 less any reduction made under this clause for a

previous indexation day.

Note:

Once the brought forward indexation amount becomes zero, there will

be no further reduction of the indexation factor.

Schedule 2 Clean energy payments under the family assistance law

Part 5 Other amendments

82 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Example: Assume that the indexation factor worked out under clause 5 on 1 July

2013 is 1.004. The brought forward indexation amount in relation to

1 July 2013 is 0.007 (as there has been no previous reduction). That

indexation factor is reduced to 1 on 1 July 2013.

Further assume that on 1 July 2014 the indexation factor is 1.010. The

brought forward indexation amount in relation to 1 July 2014 is 0.003.

That indexation factor is reduced to 1.007 on 1 July 2014.

The brought forward indexation amount in relation to later indexation

days is now zero so there is no further reduction of the indexation

factor.

11 Adjustment of indexation factor for certain amounts on and after

1 July 2014

(1) This clause applies to the following amounts:

(a) FTB gross supplement amount (A);

(b) FTB gross supplement amount (B).

(2) For each amount to which this clause applies, the indexation factor,

worked out under clause 5 for each indexation day (a reduction

day) that is on or after 1 July 2014, is to be reduced by the brought

forward indexation amount, but not below 1.

(3) In this clause:

brought forward indexation amount, in relation to a reduction

day, means 0.007 less:

(a) any reduction made under subclause 10(2) on 1 July 2013;

and

(b) any reduction made under this clause for a previous reduction

day.

Note:

Once the brought forward indexation amount becomes zero, there will

be no further reduction of the indexation factor.

Example: Assume that the indexation factor worked out under clause 5 on 1 July

2014 is 1.010 and that there was a reduction of 0.004 under subclause

10(2) on 1 July 2013.

The brought forward indexation amount in relation to 1 July 2014 is

0.003. The indexation factor worked out under clause 5 on 1 July 2014

is reduced to 1.007.

The brought forward indexation amount in relation to later reduction

days is now zero so there is no further reduction of the indexation

factor.

Clean energy payments under the family assistance law Schedule 2

Other amendments Part 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 83

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

1999

47 At the end of section 32A

Add:

(3) Subsection (2) does not apply for the purposes of working out the

following:

(a) the amount of a clean energy advance;

(b) the amount of the clean energy supplement (Part A) under

Subdivision A or B of Division 2AA of Part 5 of Schedule 1

to the Family Assistance Act;

Division 2B of Part 4 of that Schedule.

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 1 Clean energy advances

84 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Schedule 3--Clean energy payments under

the Veterans' Entitlements Act

Part 1--Clean energy advances

Veterans' Entitlements Act 1986

1 Section 5 (index of definitions)

Insert:

clean energy advance

5Q(1)

clean energy bonus

5Q(1)

clean energy payment

5Q(1)

clean energy underlying payment

5Q(1)

2 Subsection 5Q(1)

Insert:

clean energy advance means an advance described in Subdivision

A or C of Division 1 of Part IIIE.

3 Subsection 5Q(1)

Insert:

clean energy bonus under an Act or scheme means any of the

following that is provided for by the Act or scheme:

(a) a payment known as a clean energy advance;

and affects the rate of another payment that is provided for by

the Act or scheme.

4 Subsection 5Q(1)

Insert:

clean energy payment means:

(a) clean energy advance; or

5 Subsection 5Q(1)

Insert:

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 85

clean energy underlying payment means:

(a) a pension under Part II or IV at a rate determined under or by

reference to Division 4 of Part II; or

(b) a pension under Part II or IV at a rate determined under or by

reference to subsection 30(1); or

(d)

seniors

supplement.

6 After Part IIID

Insert:

Part IIIE--Clean energy payments

Division 1--Clean energy advances

Subdivision A--Eligibility for clean energy advances

61A Persons receiving clean energy underlying payments

Eligibility for days before 1 July 2012

(1) The Commission may, on a day during the period starting on

14 May 2012 and ending on 30 June 2012, determine that a person

is eligible for a clean energy advance for a clean energy underlying

payment if, on that day:

(a) the person receives the payment; and

(b) the person's rate of the payment is greater than nil; and

Note: For

clean energy underlying payment see subsection 5Q(1).

Eligibility for days in period 1 July 2012-19 March 2013

(2) The Commission may determine that a person is eligible for a

clean energy advance for a clean energy underlying payment if, on

a day in the period starting on 1 July 2012 and ending on 19 March

2013:

(a) the person receives the payment; and

(b) the person's rate of the payment is greater than nil; and

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 1 Clean energy advances

86 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Note: For

clean energy underlying payment see subsection 5Q(1).

(3) A determination under subsection (2) must specify the first day

during the period set out in that subsection for which the person:

(a) satisfies paragraphs (2)(a) and (b); and

(b) is in Australia, disregarding any temporary absence from

Australia for a continuous period not exceeding 13 weeks.

Disregard nil rate in certain circumstances

(4) For the purposes of subsections (1) and (2), a person is taken to

receive a clean energy underlying payment at a rate greater than nil

even if the person's rate would be nil, or pension would not be

payable, merely because:

(a) the rate is reduced, or pension is not payable, under

Division 4, 5 or 5A of Part II or section 74; or

(b) an election by the person under subsection 60A(1) (Quarterly

pension supplement) is in force.

Only one determination for a particular person and clean energy

underlying payment

(5) The Commission must not make a determination under

subsection (2) relating to a person and a clean energy underlying

payment if the Commission has made a determination under

subsection (1) or (2) relating to the same person and clean energy

underlying payment.

61B One advance for each clean energy underlying payment

A separate clean energy advance is payable to a person for each

clean energy underlying payment for which the Commission has

determined that the person is eligible for a clean energy advance.

Note:

This section is subject to section 65A (multiple entitlement

exclusions).

Subdivision B--Amount of a clean energy advance

61C Amount of a clean energy advance

(1) On the day (the decision day) that the Commission determines that

a person is eligible for a clean energy advance for a clean energy

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 87

underlying payment, the Commission must work out the amount of

the advance.

Note:

The advance will be paid in a lump sum as soon as is reasonably

practicable: see section 61G.

(2) The amount of the advance is the result of the following formula

rounded up to the nearest multiple of $10:

Clean energy advance daily rate

Number of advance days

�

where:

clean energy advance daily rate is worked out under section 61D.

number of advance days is worked out under section 61E.

61D Clean energy advance daily rate

For pension at rate affected by Division 4 of Part II

(1)

The

clean energy advance daily rate for a person's pension under

Part II or IV at a rate determined under or by reference to

subsection 22(3), 22(4), 23(4) or 24(4), but not under or by

reference to section 27, is worked out by:

(a) working out 1.7% of the rate for 1 July 2012 specified in

whichever one of those subsections is relevant; and

(b) adding 20 cents to the result of paragraph (a); and

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

(2)

The

clean energy advance daily rate for a person's pension under

Part II or IV at a rate determined under or by reference to

section 27, is worked out by:

(a) working out 1.7% of the rate for 1 July 2012 specified in the

subsection mentioned in column 2 of whichever item of the

following table is relevant; and

(b) adding 20 cents to the result of paragraph (a); and

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 1 Clean energy advances

88 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Relevant subsection for working out clean energy advance daily rate

Column

Rate of the person's pension under section 27 on 1 July 2012

(assuming the person received the pension then):

Column 2

Subsection

Not more than the rate then specified in subsection 22(3)

22(3)

2 Both:

(a) more than the rate then specified in subsection 22(3); and

(b) not more than the rate then specified in subsection 22(4)

22(4)

3 Both:

(a) more than the rate then specified in subsection 22(4); and

(b) not more than the rate then specified in subsection 23(4)

23(4)

More than the rate then specified in subsection 23(4)

24(4)

(3) Ignore subsections 23(5) and (6), sections 25A and 26, Division 5A

of Part II and section 74 for the purposes of working out the rate of

the person's pension under section 27 for use in the table in

subsection (2) of this section.

For pension at rate affected by subsection 30(1)

(4)

The

clean energy advance daily rate for a person's pension under

Part II or IV at a rate determined under or by reference to

subsection 30(1) is worked out by:

(a) working out 1.7% of the rate for 1 July 2012 specified in that

subsection; and

(b) adding 20 cents to the result of paragraph (a); and

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

For service pension and seniors supplement

(5)

The

clean energy advance daily rate for a person's service pension

or seniors supplement is worked out by:

(a) working out 1.7% of the total of:

(i) double the maximum basic rate under point SCH6-B1 of

the Rate Calculator, worked out for 1 July 2012 for a

person who is partnered; and

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 89

(ii) the combined couple rate of pension supplement for

1 July 2012; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $5.20 (rounding up if that result is not a multiple

of $5.20 but is a multiple of $2.60); and

(d) applying the applicable percentage in the following table to

the result of paragraph (c); and

(e) rounding the result of paragraph (d) up or down to the nearest

multiple of $2.60 (rounding up if that result is not a multiple

of $2.60 but is a multiple of $1.30); and

(f) dividing the result of paragraph (e) by 364.

Percentage to be applied

Item

Person's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Note: For

member of a couple, partnered, illness separated couple and

respite care couple see subsections 5E(1) and (5) and 5R(5) and (6)

respectively.

(6) For the purposes of the table in subsection (5) (and of

paragraph (5)(d)), a person's family situation is to be determined as

at whichever of the following days is relevant:

(a) the day the Commission determines under subsection 61A(1)

that the person is eligible for the clean energy advance for

service pension or seniors supplement;

(b) the day specified under subsection 61A(3) in a determination

under subsection 61A(2) that the person is eligible for the

clean energy advance for service pension or seniors

supplement.

61E Number of advance days

The

person's

number of advance days is the number of days in the

period:

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 1 Clean energy advances

90 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(a) starting on 1 July 2012 or, if the person is eligible for the

clean energy advance because of a determination under

subsection 61A(2), the day specified under subsection

61A(3) in the determination; and

(b) ending on 19 March 2013.

Subdivision C--Top-up payments of clean energy advance

61F Top-up payments of clean energy advance

(1) The Commission may by legislative instrument determine that

persons:

(a) who have been paid the amount (the original payment) of a

specified clean energy advance for a clean energy underlying

payment (the original underlying payment) worked out

under Subdivision B; and

(b) whose circumstances change, within a period specified in the

instrument, in a way that is specified in the instrument and is

covered by subsection (2) or (3);

are eligible for a further payment, of the amount worked out in

accordance with the instrument, of the clean energy advance.

(2) This subsection covers a person's circumstances changing in a way

such that:

(a) immediately after the change the Commission could still

have determined that the person would have been eligible for

a clean energy advance for the original underlying payment,

had the Commission not already made such a determination;

and

(b) had the amount of the original payment been worked out by

reference to the person's circumstances immediately after the

change, the clean energy advance daily rate that would have

been used for working out that amount would have been

greater than the rate actually used for working out that

amount.

(3) This subsection covers a change in a person's circumstances that,

apart from a multiple entitlement exclusion, would (if any

necessary administrative decisions were made) entitle the person to

a clean energy bonus, under an Act or a scheme, relating to a

payment other than the original underlying payment.

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 91

(4) For the purposes of subsection (3), a multiple entitlement

exclusion is an instrument that:

(a) provides a person is not entitled to a clean energy bonus

under an Act or a scheme because of the person's entitlement

to or receipt of the original payment or the original

underlying payment; and

(b) is made under:

(i) section 65A; or

(ii) section 424L of the MRCA; or

(iii) section 918 of the Social Security Act;

or is an instrument establishing entitlements to a clean energy

bonus under a scheme.

(5) An instrument under subsection (1) may provide for:

(a) different periods for changes in circumstances depending on

different changes in circumstances; and

(b) different ways of working out further amounts of the original

payment depending on different changes in circumstances.

Subdivision D--Payment of clean energy advance

61G Payment of clean energy advance

(1) An amount of clean energy advance for which a person is eligible

is payable in a single lump sum on the day that the Commission

considers to be the earliest day on which it is reasonably

practicable for the amount to be paid.

(2) However, the clean energy advance is not payable if the

Commission is aware that the person has died.

Subdivision E--Debts

61H Debts relating to clean energy advances

(1) This section applies if:

(a) a person has been paid a clean energy advance for a clean

energy underlying payment; and

(b) after the advance was paid, one of the following events

happens to a determination that directly or indirectly affected

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 1 Clean energy advances

92 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

the payability or amount of the clean energy advance paid to

the person:

(i) the determination is changed, revoked or set aside;

(ii) the determination is superseded by another

determination; and

knowingly made a false or misleading statement or

knowingly provided false information; and

(d) had the event happened on or before the day the advance was

paid:

(i) the advance would not have been paid; or

(ii) the advance would have been reduced.

Note 1:

Examples of determinations directly affecting the payability or

amount of the clean energy advance include:

(a) a determination relating to the person's eligibility for the clean

energy underlying payment to which the advance related; and

(b) the determination of the person's eligibility for the clean energy

advance.

Note 2:

An example of a determination indirectly affecting the amount of the

advance is a determination relating to a change in circumstances that

results in the person becoming eligible for a further payment of the

advance under an instrument made under section 61F.

Creation and amount of debt

(2) The advance is a debt due to the Commonwealth by the person if

subparagraph (1)(d)(i) applies.

(3) The amount by which the advance would have been reduced is a

debt due to the Commonwealth by the person if

subparagraph (1)(d)(ii) applies.

Relationship with other sections

(4) The other provisions of this Act under which debts arise do not

apply in relation to clean energy advances to which this section

applies.

(5) A debt that arises under this section is a recoverable amount within

the meaning of subsection 205(8).

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 93

Division 5--Multiple entitlement exclusions

65A Multiple entitlement exclusions

(1) The Commission may by legislative instrument determine that

persons in circumstances specified in the instrument are not

entitled to a clean energy bonus under this Act that is specified in

the instrument.

Note: For

clean energy bonus see subsection 5Q(1).

(2) Those circumstances must relate to persons' entitlement to or

receipt of one or more of the following:

(a) another clean energy bonus under this Act;

(b) a clean energy bonus under the MRCA;

(d) a clean energy bonus under a scheme (however described),

whether or not the scheme is provided for by or under an Act.

(3) An instrument under subsection (1) has effect according to its

terms, despite any other provision of this Act.

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 2 Clean energy supplements and quarterly clean energy supplement

94 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Part 2--Clean energy supplements and quarterly

clean energy supplement

Veterans' Entitlements Act 1986

7 Section 5 (index of definitions)

Insert:

CES 22(3) rate

5GB(1)

CES 22(4) rate

5GB(2)

CES 23(4) rate

5GB(3)

CES 24(4) rate

5GB(4)

CES 30(1) rate

5GB(5)

8 Section 5 (index of definitions)

Insert:

clean energy pension rate

5GB(6)

clean energy supplement

5Q(1)

9 Section 5 (index of definitions)

Insert:

quarterly clean energy supplement

5Q(1)

10 After section 5GA

Insert:

5GB Clean energy supplement rate definitions

(1)

The

CES 22(3) rate is, subject to section 198, the rate worked out

by:

(a) working out 1.7% of the rate specified in subsection 22(3) on

20 March 2013 (taking account of any indexation on that

day); and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

Section 198 provides for indexation.

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy supplements and quarterly clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 95

(2)

The

CES 22(4) rate is, subject to section 198, the rate worked out

by:

(a) working out 1.7% of the rate specified in subsection 22(4) on

20 March 2013 (taking account of any indexation on that

day); and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

Section 198 provides for indexation.

(3)

The

CES 23(4) rate is, subject to section 198, the rate worked out

by:

(a) working out 1.7% of the rate specified in subsection 23(4) on

20 March 2013 (taking account of any indexation on that

day); and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

Section 198 provides for indexation.

(4)

The

CES 24(4) rate is, subject to section 198, the rate worked out

by:

(a) working out 1.7% of the rate specified in subsection 24(4) on

20 March 2013 (taking account of any indexation on that

day); and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

Section 198 provides for indexation.

(5)

The

CES 30(1) rate is, subject to section 198, the rate worked out

by:

(a) working out 1.7% of the rate specified in subsection 30(1) on

20 March 2013 (taking account of any indexation on that

day); and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents).

Note:

Section 198 provides for indexation.

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 2 Clean energy supplements and quarterly clean energy supplement

96 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(6)

The

clean energy pension rate for a person is, subject to

sections 59B, 59C, 59D and 59E, the rate worked out by:

(a) working out 1.7% of the total of:

(i) double the maximum basic rate under the Rate

Calculator, worked out for 20 March 2013 (taking

account of any indexation on that day) for a person who

is partnered; and

(ii) the combined couple rate of pension supplement for

20 March 2013 (taking account of any indexation on

that day); and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $5.20 (rounding up if that result is not a multiple

of $5.20 but is a multiple of $2.60).

Note:

Sections 59B, 59C, 59D and 59E provide for indexation.

11 Subsection 5Q(1) (after paragraph (a) of the definition of

clean energy bonus)

Insert:

(b) a payment known as a clean energy supplement or a quarterly

clean energy supplement;

12 Subsection 5Q(1) (after paragraph (a) of the definition of

clean energy payment)

Insert:

(b) any of the following:

(i) clean energy supplement under section 62A (for pension

under Part II or IV at a rate determined under or by

reference to Division 4 of Part II);

(ii) clean energy supplement under section 62B (for pension

under Part II or IV at a rate determined under or by

reference to subsection 30(1));

(iii) quarterly clean energy supplement for service pension;

13 Subsection 5Q(1)

Insert:

clean energy supplement means:

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy supplements and quarterly clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 97

(a) clean energy supplement payable under section 62A (for

pension under Part II or IV at a rate determined under or by

reference to Division 4 of Part II); or

(b) clean energy supplement payable under section 62B (for

pension under Part II or IV at a rate determined under or by

reference to subsection 30(1)); or

rate of service pension under the Rate Calculator.

14 Subsection 5Q(1)

Insert:

quarterly clean energy supplement for service pension means the

separate payment described in section 62E.

15 After subsection 58A(5)

Insert:

(6)

If:

(a) either or both of the following amounts are added to a

person's maximum basic rate for a particular day in working

out the amount of an instalment of a service pension:

(i) a pension supplement amount more than the person's

pension supplement basic amount;

(ii) clean energy supplement; and

(b) there is no election by the person under subsection 60A(1) in

force on that day; and

corresponding to that day would be less than

364

of the total

of the amounts added to the person's maximum basic rate for

the day as described in paragraph (a), but more than a nil

amount;

the amount of that portion of the instalment is to be increased to

364

of that total.

16 Paragraph 58A(7)(a)

Omit "service pension or".

17 Subsection 58A(7)

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 2 Clean energy supplements and quarterly clean energy supplement

98 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Omit "the person's minimum daily rate" (wherever occurring),

substitute "

364

of the person's minimum pension supplement amount".

18 Subsection 58A(8)

Repeal the subsection.

19 Paragraph 59Q(7)(b) (formula)

Repeal the formula, substitute:

Compensation part of lump sum

Point

Ordinary

Maximum

SCH6-BA3

SCH6-BB3

free area

basic rate

amount

limit

�

20 Paragraph 59Q(7)(b)

Insert:

point SCH6-BB3 amount means the clean energy

supplement worked out under point SCH6-BB3 of

Schedule 6 for a person who is not a member of a couple

(whether or not the person for whom the lump sum

preclusion period is being worked out is a member of a

couple and whether or not that point applies to the person for

whom the lump sum preclusion period is being worked out).

21 After Division 1 of Part IIIE

Insert:

Division 2--Clean energy supplements

Subdivision A--Clean energy supplements for pensions under

Parts II and IV

62A Clean energy supplement for disability pension

(1) This section applies to a person for a day if:

(a) the person receives for the day a pension under Part II or IV

at a rate determined under or by reference to section 22, 23,

24 or 27; and

(b) the person's rate of the pension is greater than nil; and

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy supplements and quarterly clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 99

(d) on the day the person either:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for

a continuous period not exceeding 13 weeks.

Note:

Section 62C may affect whether a person meets the conditions in

paragraphs (1)(a) and (b) of this section.

Clean energy supplement payable

(2) The Commonwealth is liable to pay the person for the day clean

energy supplement for the person's pension.

Note 1:

The supplement is a payment separate from the pension.

Note 2:

Section 65A may affect the person's entitlement to the clean energy

supplement.

Rate of clean energy supplement

(3) The fortnightly rate of clean energy supplement for the pension is

the rate worked out using the table. For this purpose, ignore

subsections 23(5) and (6), sections 25A and 26, Division 5A of

Part II and section 74 in working out the rate of the person's

pension under section 27 if that section is relevant.

Fortnightly rate of clean energy supplement

Column

If the rate of the person's pension:

Column 2

Rate of clean

energy supplement

Is worked out under or by reference to subsection 22(3)

but not section 27

CES 22(3) rate

Is worked out under or by reference to subsection 22(4)

but not section 27

CES 22(4) rate

Is worked out under or by reference to subsection 23(4)

but not section 27

CES 23(4) rate

Is worked out under or by reference to subsection 24(4)

but not section 27

CES 24(4) rate

Is worked out under or by reference to section 27 and is

not more than the rate specified in subsection 22(3)

CES 22(3) rate

Is worked out under or by reference to section 27 and is:

(a) more than the rate specified in subsection 22(3); and

(b) not more than the rate specified in subsection 22(4)

CES 22(4) rate

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 2 Clean energy supplements and quarterly clean energy supplement

100 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Fortnightly rate of clean energy supplement

Column

If the rate of the person's pension:

Column 2

Rate of clean

energy supplement

Is worked out under or by reference to section 27 and is:

(a) more than the rate specified in subsection 22(4); and

(b) not more than the rate specified in subsection 23(4)

CES 23(4) rate

Is worked out under or by reference to section 27 and is

more than the rate specified in subsection 23(4)

CES 24(4) rate

Note: For

CES 22(3) rate, CES 22(4) rate, CES 23(4) rate and CES 24(4)

rate see section 5GB.

62B Clean energy supplement for war widow/war widower pension

(1) This section applies to a person for a day if:

(a) the person receives for the day a pension under Part II or IV

at a rate determined under or by reference to subsection

30(1); and

(b) the person's rate of the pension is greater than nil; and

(d) on the day the person either:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for

a continuous period not exceeding 13 weeks.

Note:

Section 62C may affect whether a person meets the conditions in

paragraphs (1)(a) and (b) of this section.

Clean energy supplement payable

(2) The Commonwealth is liable to pay the person for the day clean

energy supplement for the person's pension.

Note 1:

The supplement is a payment separate from the pension.

Note 2:

Section 65A may affect the person's entitlement to the clean energy

supplement.

Rate of clean energy supplement

(3) The fortnightly rate of clean energy supplement for the pension is

the CES 30(1) rate.

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy supplements and quarterly clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 101

62C Disregard nil rate in certain circumstances

For the purposes of sections 62A and 62B, a person is taken to

receive a pension under Part II or IV at a rate greater than nil even

if the person's rate would be nil, or pension would not be payable,

merely because the rate is reduced, or pension is not payable, under

Division 4, 5 or 5A of Part II or section 74.

62D Electing for quarterly payment of clean energy supplement for

pension under Part II or IV

Election

(1) A person may, in a manner or way approved by the Commission,

make an election to be paid quarterly instalments of:

(a) the person's clean energy supplement under section 62A; or

(b) the person's clean energy supplement under section 62B.

Note 1:

If the person is receiving both kinds of pension under Part II or IV, he

or she may make an election relating to one kind but not the other or

make separate elections for each kind.

Note 2:

If a person does not make an election to be paid quarterly instalments

of the clean energy supplement for one of those kinds of pensions, the

supplement for that kind of pension will be paid in instalments under

section 121.

(2)

The

election:

(a) comes into force as soon as practicable after it is made; and

(b) ceases to be in force if the pension ceases to be payable to the

person; and

by the Commission, with effect as soon as practicable after

the revocation is made.

Quarterly payment

(3) If the election is in force on a day in the 3 months starting on

20 March, 20 June, 20 September or 20 December, an instalment

of the clean energy supplement is to be paid to the person on, or as

soon as reasonably practicable after, the day after the end of that

period.

(4) The amount of the instalment is the total amount of the clean

energy supplement payable to the person for the days in that period

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 2 Clean energy supplements and quarterly clean energy supplement

102 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

on which the election was in force. For this purpose, the rate of the

clean energy supplement payable for a day is

of the fortnightly

rate of the supplement that applied on that day.

Subdivision B--Quarterly clean energy supplement for service

pension

62E Quarterly clean energy supplement for service pension

(1) Quarterly clean energy supplement for service pension that a

person is receiving is payable, as a separate payment, to the person

for each day for which an election by the person is in force under

subsection 60A(1).

Note 1:

There is no provision for quarterly clear energy supplement for seniors

supplement, because seniors supplement is always paid quarterly (see

section 118PC).

Note 2:

Section 65A may affect the person's entitlement to quarterly clean

energy supplement.

(2) If the election is in force on a day in the 3 months starting on

20 March, 20 June, 20 September or 20 December, an instalment

of quarterly clean energy supplement is to be paid to the person on,

or as soon as reasonably practicable after, the day after the end of

that period.

(3) The amount of the instalment is the total amount of the quarterly

clean energy supplement payable to the person for the days in that

period on which the election was in force.

(4) For the purposes of subsection (3), the rate of quarterly clean

energy supplement payable for a day is

364

of what would be the

person's clean energy supplement under the Rate Calculator for the

day apart from this section.

Reductions

(5) This section is subject to subclause 4(5) of Schedule 6.

(6)

If:

(a) an election by the person under subsection 60A(1) is in force

on a particular day; and

(b) apart from this subsection, the portion of the instalment of the

person's quarterly clean energy supplement that corresponds

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy supplements and quarterly clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 103

to that day would be reduced under subclause 4(5) of

Schedule 6, but not reduced to a nil amount;

the amount of that portion of the instalment is not to be reduced

under subclause 4(5) of Schedule 6.

22 Section 64A

After "clean energy payment", insert ", except quarterly clean energy

supplement,".

23 Subsections 64C(3) and 64D(1) and (2)

After "clean energy payment", insert "(except quarterly clean energy

supplement)".

24 Section 118PB

Repeal the section, substitute:

118PB Rate of seniors supplement

(1) The person's daily rate of seniors supplement, for a particular day,

364

of the total of:

(a) the amount worked out by:

(i) applying the applicable percentage in the following

table to the combined couple rate of minimum pension

supplement; and

(ii) rounding the result of subparagraph (i) up or down to

the nearest multiple of $2.60 (rounding up if that result

is not a multiple of $2.60 but is a multiple of $1.30); and

(b) if subsection (2) applies to the person on the day--the

amount worked out by:

(i) applying the applicable percentage in the following

table to the clean energy pension rate; and

(ii) rounding the result of subparagraph (i) up or down to

the nearest multiple of $2.60 (rounding up if that result

is not a multiple of $2.60 but is a multiple of $1.30).

Percentage to be applied

Item

Person's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 2 Clean energy supplements and quarterly clean energy supplement

104 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Percentage to be applied

Item

Person's family situation

Use this %

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Note 1:

For combined couple rate of minimum pension supplement see

subsection 5GA(2).

Note 2:

For clean energy pension rate see subsection 5GB(6).

Note 3:

For member of a couple, partnered, illness separated couple and

respite care couple see subsections 5E(1) and (5) and 5R(5) and (6)

respectively.

Note 4:

Section 65A may affect the person's entitlement to the increase in rate

of seniors supplement as a result of paragraph (1)(b).

When clean energy pension rate affects seniors supplement rate

(2) This subsection applies to a person on a day if on that day the

person is residing in Australia and either:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks; and

25 Subsection 118PC(3)

Repeal the subsection, substitute:

(3) The amount of the instalment is worked out by:

(a) working out the person's amount of seniors supplement for

each day during the test period on which the person was

qualified for seniors supplement (using the daily rate of the

supplement for that day); and

(b) adding up the amounts resulting from paragraph (a).

26 After subsection 121(6A)

Insert:

Special rules for clean energy supplement payable under

section 62A or 62B

(6B) For clean energy supplement payable under section 62A or 62B:

(a) this section has effect subject to section 62D (which is about

quarterly payment of clean energy supplement); and

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy supplements and quarterly clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 105

(b) subsection (2) of this section has effect as if clean energy

supplement covered by an election in force under

section 62D by a person on a day were not payable to the

person for the day.

27 Subsection 121(7) (definition of pension)

After "includes", insert "clean energy supplement payable under

section 62A or 62B,".

28 After subparagraph 30(4)(a)(i) of Schedule 5

Insert:

(ia) the person's clean energy supplement (if any) worked

out using Module BB of the Rate Calculator; and

29 At the end of subclause 30(4) of Schedule 5

Add:

Note 7:

Section 65A may affect the inclusion of the clean energy supplement

described in subparagraph (4)(a)(ia).

30 At the end of clause 34 of Schedule 5

Add:

Clean energy supplement

(5) If subclause 31(1) or (2) is relevant to the person, this Act applies

in relation to the person's service pension as if the person's clean

energy supplement (if any) resulting from Module BB of the Rate

Calculator were used to work out the rate of the person's service

pension.

Note 1:

This clean energy supplement is included in the total worked out

under paragraph 30(4)(a) (see subparagraph 30(4)(a)(ia)).

Note 2:

Subclause (5) causes section 62E to apply. If quarterly clean energy

supplement is payable, then no clean energy supplement will be

available to be included in the total worked out under paragraph

30(4)(a) (see point SCH6-BB2 of the Rate Calculator).

Note 3:

Other effects of subclause (5) include:

(a) the possibility of the minimum amount of fortnightly instalments

of the pension being affected under section 58A; and

(b) clause 4 of Schedule 6 affecting the operation of reductions of

the maximum payment rate because of the ordinary/adjusted

income test and assets test.

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 2 Clean energy supplements and quarterly clean energy supplement

106 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

31 Subclause 1(1) of Schedule 6 (note 1)

After "pension supplement", insert ", clean energy supplement".

32 Subclause 4(1) of Schedule 6 (after table item 4)

Insert:

the amount of any increase under Module BB

33 Subclause 4(1) of Schedule 6 (note)

Repeal the note, substitute:

Note 1:

Table item 4A will not apply if an election by the person under

subsection 60A(1) is in force, as there will not be any increase under

Module BB (see point SCH6-BB2 of the Rate Calculator).

Note 2:

Table item 5 will not apply if an election by the person under

subsection 60A(1) is in force, as the rate would have already been

reduced to nil.

34 At the end of clause 4 of Schedule 6

Add:

Quarterly clean energy supplement for service pension

(5)

If:

(a) the rate (the main rate) of a person's service pension is to be

reduced as described in subclause (1) (applying of its own

force or as affected by subclause (2)); and

(b) an election by the person under subsection 60A(1) is in force;

the person's quarterly clean energy supplement is reduced to the

same extent (if any) that the component of the main rate that would

correspond to the person's clean energy supplement would be

reduced under subclause (1) were the election not in force.

Note:

The reduction will be disregarded unless the person's quarterly clean

energy supplement is reduced to nil (see subsection 62E(6)).

35 Subpoint SCH6-A1(2) of Schedule 6 (method statement,

after step 1A)

Insert:

Step 1B. Work out the amount of clean energy supplement (if any)

using Module BB below.

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Clean energy supplements and quarterly clean energy supplement Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 107

36 Subpoint SCH6-A1(2) of Schedule 6 (method statement,

step 4)

After "1A", insert ", 1B".

37 Subpoint SCH6-A1(2) of Schedule 6 (method statement, at

the end of step 4)

Add:

Note:

Section 65A may affect whether the amount obtained in

step 1B is added.

38 Subpoint SCH6-A1(3) of Schedule 6 (method statement,

after step 2A)

Insert:

Step 2B. Work out the amount of clean energy supplement (if any)

using Module BB below.

39 Subpoint SCH6-A1(3) of Schedule 6 (method statement,

step 4)

Omit "and 2A", substitute ", 2A and 2B".

40 Subpoint SCH6-A1(3) of Schedule 6 (method statement, at

the end of step 4)

Add:

Note:

Section 65A may affect whether the amount obtained in

step 2B is added.

41 Subpoint SCH6-A1(4) of Schedule 6 (method statement,

step 1)

After "Method statement 1", insert ", except step 1B of that method

statement,".

42 Schedule 6 (after Module BA)

Insert:

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 2 Clean energy supplements and quarterly clean energy supplement

108 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Module BB--Clean energy supplement

When clean energy supplement is to be added

SCH6-BB1 A clean energy supplement is to be added to the person's

maximum basic rate (of service pension) if the person is residing in

Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

Note:

Section 65A may affect the addition of the clean energy supplement.

SCH6-BB2 However, this Module does not apply if quarterly clean energy

supplement for service pension is payable to the person.

Amount of clean energy supplement

SCH6-BB3 The person's clean energy supplement is worked out by:

(a) applying the applicable percentage in the following table to

the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $2.60 (rounding up if that result is not a multiple

of $2.60 but is a multiple of $1.30).

Percentage to be applied

Item

Person's family situation

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Note 1:

For clean energy pension rate see subsection 5GB(6).

Note 2:

For member of a couple, partnered, illness separated couple and

respite care couple see subsections 5E(1) and (5) and 5R(5) and (6)

respectively.

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Indexation Part 3

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 109

Part 3--Indexation

Veterans' Entitlements Act 1986

43 Section 59A (after table item 2B)

Insert:

Clean energy

pension rate

2C. clean

energy

pension rate

clean energy

pension rate

subsection 5GB(6)

44 Section 59A (note)

After "Note", insert "1".

45 At the end of section 59A

Add:

Note 2:

Indexing clean energy pension rate will also result in the indexation of

seniors supplement (see section 118PB).

46 Subsection 59B(1) (after table item 1C)

Insert:

Clean energy

pension rate

clean energy

pension rate

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June

December

quarter

before

reference

quarter (but

not earlier

than June

quarter

2011)

$5.20

47 After subsection 59C(2AB)

Insert:

(2AC) The first indexation of the rate under item 2 of the CPI Indexation

Table in subsection 59B(1) is to take place on 20 September 2013.

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 3 Indexation

110 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

48 Subsection 59D(1)

After "(3)", insert "and section 198MA".

49 Subsection 59EAB(1)

After "(6)", insert "and section 198MB".

50 Section 198 (heading)

Repeal the heading, substitute:

198 Variation of rates of certain pensions and clean energy

supplements

51 Subsection 198(1)

Insert:

brought-forward CPI indexation amount for a relevant period

means 0.007 less any reduction made under paragraph (5)(c) in

relation to an earlier relevant period.

52 At the end of subsection 198(5)

Add:

; or (c) if the relevant period starts on or after 20 March 2013 and the

brought-forward CPI indexation amount for the period is

more than 0--is the number worked out under paragraph (a)

or (b) of this subsection reduced by that amount, but not

below 1.

53 After subsection 198(8A)

Insert:

Indexation of rates relating to clean energy supplements

(9) This Act has effect as if, on each adjustment day on or after

20 September 2013, there were substituted, for each of the

following rates:

(a) CES 22(3) rate;

(b) CES 22(4) rate;

(d) CES 24(4) rate;

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Indexation Part 3

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 111

(e) CES 30(1) rate;

the rate worked out by multiplying the appropriate rate

immediately before that day by the factor (the CES indexation

factor) worked out under subsection (9A) and rounding the product

to the nearest $0.10 a fortnight (rounding up if the product is not a

multiple of $0.10 but is a multiple of $0.05).

(9A) The CES indexation factor is:

(a) the result of the following formula, rounded to 3 decimal

places (rounding up if the number in the fourth decimal place

is greater than 4); or

(b) 1 if the result of paragraph (a) is less than 1.

Index number for most recent reference quarter before adjustment day

Index number for base quarter

where:

base quarter means the June quarter or December quarter that:

(a) occurs before the most recent reference quarter before the

adjustment day but not before the June quarter of 2011; and

(b) has the highest index number of all the June quarters and

December quarters covered by paragraph (a).

reference quarter means June quarter or December quarter.

54 At the end of section 198

Add:

(11) If this Act has effect as if another rate were substituted on an

adjustment day for a rate mentioned in paragraph (9)(a), (b), (c),

(d) or (e), the substitution affects each instalment of clean energy

supplement due on or after that day, except an instalment that:

(a) is payable because of the grant of a pension after that day

with effect before that day; and

(b) is for a period starting before that day.

55 Subsection 198D(1)

Insert:

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 3 Indexation

112 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

brought-forward CPI indexation amount for a year commencing

on or after 20 September 2013 means 0.007 less any reduction

made under paragraph (5)(d) for an earlier year.

56 At the end of subsection 198D(5)

Add:

; or (d) if:

(i) the year commences on or after 20 September 2013; and

(ii) the factor is for multiplying a rate specified in item 7, 8,

9, 10, 11, 12, 13, 14 or 15 in the table in subsection

27(1); and

(iii) the brought-forward CPI indexation amount for the year

is more than 0;

the number worked out under paragraph (b) or (c) of this

subsection reduced by that amount, but not below 1.

57 After section 198M

Insert:

198MA Adjustment of indexation factor under section 59D for

limited time on and after 20 March 2013 for certain

purposes

Application

(1) This section applies for purposes connected with the following

payments on or after 20 March 2013:

(a) a service pension;

(b)

seniors

supplement;

reference to Division 4 of Part II or subsection 30(1);

(d) Special Rate Disability Pension under the MRCA;

(e) compensation under Division 2 (Compensation for member's

death for wholly dependent partners) of Part 2 of Chapter 5

of the MRCA.

Note 1:

Section 198 of the MRCA sets Special Rate Disability Pension by

reference to the rate of pension under section 24 of this Act (so

indexation of amounts affecting that rate also affects that pension).

Note 2:

Division 2 of Part 2 of Chapter 5 of the MRCA sets compensation

under that Division by reference to the rate of pension under

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Indexation Part 3

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 113

subsection 30(1) of this Act (so indexation of amounts affecting that

rate also affects the compensation).

Adjustment of indexation factor

(2) An indexation factor that:

(a) is worked out under section 59D on a day that is on or after

20 March 2013; and

(b) is directly or indirectly relevant to the indexation of an

amount provided for by:

(i) subsection 5GA(1) (which provides for the PS rate

mentioned in table item 2 of section 59A); or

(ii) subsection 5GA(2) (which provides for the PS

minimum rate mentioned in table item 2A of

section 59A); or

(iii) subsection 5GA(4) (which provides for the PS basic rate

mentioned in table item 2B of section 59A); or

(iv) subsection 22(3) or (4), 23(4) or 24(4); or

(v) paragraph 30(1)(a) or (b); or

(vi) table item 2 of point SCH6-B1 of the Rate Calculator

(which provides for the pension MBR mentioned in

table item 1 of section 59A);

is, for the purposes of the indexation of such an amount on that

day, to be reduced by the brought-forward CPI indexation amount,

but not below 1.

Note 1:

An indexation factor worked out under section 59D is indirectly

relevant to the indexation of an amount provided for by subsection

22(3) or (4), 23(4) or 24(4) or paragraph 30(1)(b). This is because:

(a) section 198 provides for indexation of such an amount by

reference to the pension MBR factor worked out under

section 59LA; and

(b) the pension MBR factor depends on the increase in the single

pension rate MBR amount, which in turn depends (under

section 59G) on indexation of the pension MBR amount under

section 59C, which involves the indexation factor worked out

under section 59D.

Note 2:

An indexation factor worked out under section 59D is indirectly

relevant to the indexation of an amount provided for by paragraph

30(1)(a). This is because that amount is affected by indexation under

section 59G, which in turn depends on indexation under section 59C.

Note 3:

Once the brought-forward CPI indexation amount becomes 0, there

will be no further reduction of the indexation factor.

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 3 Indexation

114 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Example: Assume that the indexation factor worked out under section 59D on

20 March 2013 is 1.005. The brought-forward CPI indexation amount

in relation to 20 March 2013 is 0.007 (as there has been no previous

reduction). That indexation factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the indexation factor is

1.010. The brought-forward CPI indexation amount in relation to

20 September 2013 is 0.002. That indexation factor is reduced to

1.008 on 20 September 2013.

The brought-forward CPI indexation amount in relation to later

indexation days is now 0 so there is no further reduction of the

indexation factor.

Definition of brought-forward CPI indexation amount

(3) In this section:

brought-forward CPI indexation amount for a day means:

(a) 0.007 less any reduction made under subsection (2) for an

earlier day; or

(b) 0 if the brought-forward PBLCI indexation amount for the

day under section 198MB is 0.

198MB Adjustment of living cost indexation factor for limited time

on and after 20 March 2013 for certain purposes

Application

(1) This section applies for purposes connected with the following

payments on or after 20 March 2013:

(a) a service pension;

(b) a pension under Part II or IV at a rate determined under or by

reference to section 22, 23 or 24 or subsection 30(1);

(d) compensation under Division 2 (Compensation for member's

death for wholly dependent partners) of Part 2 of Chapter 5

of the MRCA.

Note 1:

Section 198 of the MRCA sets Special Rate Disability Pension by

reference to the rate of pension under section 24 of this Act (so

indexation of amounts affecting that rate also affects that pension).

Note 2:

Division 2 of Part 2 of Chapter 5 of the MRCA sets compensation

under that Division by reference to the rate of pension under

subsection 30(1) of this Act (so indexation of amounts affecting that

rate also affects the compensation).

Clean energy payments under the Veterans' Entitlements Act Schedule 3

Indexation Part 3

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 115

Adjustment of living cost indexation factor

(2) A living cost indexation factor that:

(a) is worked out under section 59EAB on a day that is on or

after 20 March 2013; and

(b) is directly or indirectly relevant to the indexation of an

amount provided for by:

(i) subsection 22(3) or (4), 23(4) or 24(4); or

(ii) paragraph 30(1)(a) or (b); or

(iii) table item 2 of point SCH6-B1 of the Rate Calculator

(which provides for the pension MBR mentioned in

table item 1 of section 59A);

is, for the purposes of the indexation of such an amount on that

day, to be reduced by the brought-forward PBLCI indexation

amount, but not below 1.

Note 1:

A living cost indexation factor worked out under section 59EAB is

indirectly relevant to the indexation of an amount provided for by

subsection 22(3) or (4), 23(4) or 24(4) or paragraph 30(1)(b). This is

because:

(a) section 198 provides for indexation of such an amount by

reference to the pension MBR factor worked out under

section 59LA; and

(b) the pension MBR factor depends on the increase in the single

pension rate MBR amount, which in turn depends (under

section 59G) on indexation of the pension MBR amount under

section 59C, which may involve the living cost indexation factor

worked out under section 59EAB.

Note 2:

A living cost indexation factor worked out under section 59EAB is

indirectly relevant to the indexation of an amount provided for by

paragraph 30(1)(a). This is because that amount is affected by

indexation under section 59G, which in turn depends on indexation

under section 59C.

Note 3:

Once the brought-forward PBLCI indexation amount becomes 0, there

will be no further reduction of the living cost indexation factor.

Example: Assume that the living cost indexation factor worked out under

section 59EAB on 20 March 2013 is 1.005. The brought-forward

PBLCI indexation amount in relation to 20 March 2013 is 0.007 (as

there has been no previous reduction). That living cost indexation

factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the living cost indexation

factor is 1.010. The brought-forward PBLCI indexation amount in

relation to 20 September 2013 is 0.002. That living cost indexation

factor is reduced to 1.008 on 20 September 2013.

Schedule 3 Clean energy payments under the Veterans' Entitlements Act

Part 3 Indexation

116 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

The brought-forward PBLCI indexation amount in relation to later

indexation days is now 0 so there is no further reduction of the

indexation factor.

Definition of brought-forward PBLCI indexation amount

(3) In this section:

brought-forward PBLCI indexation amount for a day means:

(a) 0.007 less any reduction made under subsection (2) for an

earlier day; or

(b) 0 if the brought-forward CPI indexation amount for the day

under section 198MA is 0.

58 At the end of Part 5 of Schedule 5

Add:

35 Special rules for indexation of rates payable under clause 30

(1) This clause applies if clause 30 affects the rate at which service

pension is payable to a person for a day on or after 20 March 2013.

(2) Subsection 198MA(2), and the definition of brought forward CPI

indexation amount (except paragraph (b) of that definition) in

subsection 198MA(3), apply in relation to the amount described in

subparagraph 30(4)(a)(i) of this Schedule for the person in the

same way as they apply in relation to the person's PS minimum

rate.

(3) The following provisions do not affect the rate of the person's

service pension worked out under clause 30 or an amount worked

out in relation to the person's pension because of clause 34:

(a)

subparagraph

198MA(2)(b)(vi);

(b)

section

198MB.

Clean energy payments under the Military Rehabilitation and Compensation Act

Schedule 4

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 117

Schedule 4--Clean energy payments under

the Military Rehabilitation and

Compensation Act

Part 1--Clean energy advances

Military Rehabilitation and Compensation Act 2004

1 Subsection 5(1)

Insert:

clean energy advance means an advance described in Division 1 or

3 of Part 5A of Chapter 11.

2 Subsection 5(1)

Insert:

clean energy bonus under an Act or scheme means any of the

following that is provided for by the Act or scheme:

(a) a payment known as a clean energy advance;

and affects the rate of another payment that is provided for by

the Act or scheme.

3 Subsection 5(1)

Insert:

clean energy payment means clean energy advance.

4 Subsection 5(1)

Insert:

clean energy underlying payment means:

(a) compensation under Part 2 of Chapter 4 (whether weekly

compensation or a lump sum); or

(b) Special Rate Disability Pension; or

(whether weekly compensation or a lump sum).

Schedule 4 Clean energy payments under the Military Rehabilitation and

Compensation Act

Part 1 Clean energy advances

118 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

5 Subsection 5(1) (at the end of the definition of

compensation)

Add:

; (f) clean energy payments.

6 At the end of Part 1 of Chapter 8

Add:

345A Application of this Chapter to decisions about clean energy

payments

(1) This section modifies the way this Chapter applies in relation to a

decision by the Commission that is only about a person's

entitlement to a clean energy payment.

(2) This Chapter applies to the person in the same way as it applies to

a claimant. However, this does not affect the following provisions:

(a)

subsection

346(3);

(b)

section

348;

(d)

Part

(e) subsections 356(2) and (3);

(f)

subsection

357(6);

(g) subsections 358(2) and (3).

7 Subsection 415(2)

Omit "and 317 apply", substitute ", 317 and 424K apply".

8 Subsection 415(2) (note)

Repeal the note, substitute:

Note:

Chapter 6 and Part 5A have their own recovery provisions (see

sections 315, 316, 317 and 424K).

9 After Part 5 of Chapter 11

Insert:

Clean energy payments under the Military Rehabilitation and Compensation Act

Schedule 4

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 119

Part 5A--Clean energy payments

Division 1--Eligibility for clean energy advances

424A Recipient of compensation for permanent impairment

Eligibility for days before 1 July 2012

(1) The Commission may, on a day (the test day) on or after 14 May

2012 and before 1 July 2012, determine that a person is eligible for

a clean energy advance for compensation under Part 2 of Chapter 4

if:

(a) the condition in subsection (3) is met for the test day; and

(b) the person is in Australia on the test day.

Eligibility for days in 2012-13 financial year

(2) The Commission may determine that a person is eligible for a

clean energy advance for compensation under Part 2 of Chapter 4

if:

(a) the condition in subsection (3) is met for a day (the test day)

in the financial year starting on 1 July 2012; and

(b) the person is in Australia on the test day.

The determination must specify the first day, in the financial year,

for which the condition in subsection (3) is met and the person is in

Australia, disregarding any temporary absence from Australia for a

continuous period not exceeding 13 weeks.

Receipt of compensation

(3) A condition for determination of eligibility is that either or both of

the following apply:

(a) on the test day the person either:

(i) is receiving weekly compensation under Part 2 of

Chapter 4; or

(ii) would be receiving weekly compensation under that

Part apart from paragraph 398(3)(b) (of this Act) and

offsetting described in subsection 13(4) of the Military

Rehabilitation and Compensation (Consequential and

Transitional Provisions) Act 2004;

Schedule 4 Clean energy payments under the Military Rehabilitation and

Compensation Act

Part 1 Clean energy advances

120 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) before the test day the person received lump sum

compensation under Part 2 of Chapter 4.

Only one determination of a person's eligibility

(4) The Commission may make only one determination of a particular

person's eligibility under this section.

424B Recipient of Special Rate Disability Pension

Eligibility for days before 1 July 2012

(1) The Commission may, on a day (the test day) on or after 14 May

2012 and before 1 July 2012, determine that a person is eligible for

a clean energy advance for Special Rate Disability Pension if:

(a) the condition in subsection (3) is met for the test day; and

(b) the person is in Australia on the test day.

Eligibility for days in period 1 July 2012-19 March 2013

(2) The Commission may determine that a person is eligible for a

clean energy advance for Special Rate Disability Pension if:

(a) the condition in subsection (3) is met for a day (the test day)

in the period starting on 1 July 2012 and ending on 19 March

2013; and

(b) the person is in Australia on the test day.

The determination must specify the first day, in the period, for

which the condition in subsection (3) is met and the person is in

Australia, disregarding any temporary absence from Australia for a

continuous period not exceeding 13 weeks.

Receipt of Special Rate Disability Pension

(3) A condition for determination of eligibility is that either:

(a) the person is receiving Special Rate Disability Pension on the

test day; or

(b) the person would receive Special Rate Disability Pension on

the test day apart from section 204 and paragraph 398(3)(b).

Clean energy payments under the Military Rehabilitation and Compensation Act

Schedule 4

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 121

Only one determination of a person's eligibility

(4) The Commission may make only one determination of a particular

person's eligibility under this section.

424C Recipient of compensation for wholly dependent partner of

deceased member

Eligibility for days before 1 July 2012

(1) The Commission may, on a day (the test day) on or after 14 May

2012 and before 1 July 2012, determine that a person is eligible for

a clean energy advance for compensation under Division 2 of

Part 2 of Chapter 5 if:

(a) the condition in subsection (3) is met for the test day; and

(b) the person is in Australia on the test day.

Eligibility for days in period 1 July 2012-19 March 2013

(2) The Commission may determine that a person is eligible a for

clean energy advance for compensation under Division 2 of Part 2

of Chapter 5 if:

(a) the condition in subsection (3) is met for a day (the test day)

in the period starting on 1 July 2012 and ending on 19 March

2013; and

(b) the person is in Australia on the test day.

The determination must specify the first day, in the period, for

which the condition in subsection (3) is met and the person is in

Australia, disregarding any temporary absence from Australia for a

continuous period not exceeding 13 weeks.

Receipt of compensation

(3) A condition for determination of eligibility is that either or both of

the following apply:

(a) on the test day the person either:

(i) is receiving weekly compensation under Division 2 of

Part 2 of Chapter 5; or

(ii) would be receiving weekly compensation under that

Division apart from paragraph 398(3)(b);

Schedule 4 Clean energy payments under the Military Rehabilitation and

Compensation Act

Part 1 Clean energy advances

122 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) before the test day the person received lump sum

compensation under Division 2 of Part 2 of Chapter 5 and

subsection 388(6) has not applied to the person before the

test day.

Only one determination of a person's eligibility

(4) The Commission may make only one determination of a particular

person's eligibility under this section.

424D One advance for each clean energy underlying payment

A separate clean energy advance is payable to a person for each

clean energy underlying payment for which the Commission has

determined that the person is eligible for a clean energy advance.

Note:

This section is subject to section 424L (multiple entitlement

exclusions).

Division 2--Amount of a clean energy advance

424E Amount of a clean energy advance

(1) On the day (the decision day) that the Commission determines that

a person is eligible for a clean energy advance for a clean energy

underlying payment, the Commission must work out the amount of

the advance.

Note:

The advance will be paid in a lump sum as soon as is reasonably

practicable: see section 424J.

(2) The amount of the advance is the result of the following formula

rounded up to the nearest multiple of $10:

Clean energy advance daily rate

Number of advance days

�

where:

clean energy advance daily rate is worked out under section 424F.

number of advance days is worked out under section 424G.

Clean energy payments under the Military Rehabilitation and Compensation Act

Schedule 4

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 123

424F Clean energy advance daily rate

For compensation under Part 2 of Chapter 4

(1)

The

clean energy advance daily rate for compensation under

Part 2 of Chapter 4 is the same as that rate worked out under

subsection 61D(1) of the Veterans' Entitlements Act 1986 for a

pension at a rate determined under subsection 22(3) of that Act.

For Special Rate Disability Pension

(2)

The

clean energy advance daily rate for Special Rate Disability

Pension is the same as that rate worked out under subsection

61D(1) of the Veterans' Entitlements Act 1986 for a pension at a

rate determined under subsection 24(4) of that Act.

For compensation under Division 2 of Part 2 of Chapter 5

(3)

The

clean energy advance daily rate for compensation under

Division 2 of Part 2 of Chapter 5 is the same as that rate worked

out under subsection 61D(4) of the Veterans' Entitlements Act

1986 for a pension at a rate determined under subsection 30(1) of

that Act.

424G Number of advance days

The

person's

number of advance days is the number of days in the

period:

(a) starting on 1 July 2012 or, if the person is eligible for the

clean energy advance because of a determination under

subsection 424A(2), 424B(2) or 424C(2), the day specified

under that subsection in the determination; and

(b)

ending

on:

(i) 19 March 2013, if the clean energy underlying payment

is Special Rate Disability Pension or compensation

under Division 2 of Part 2 of Chapter 5; or

(ii) 30 June 2013, if the clean energy underlying payment is

compensation under Part 2 of Chapter 4.

Schedule 4 Clean energy payments under the Military Rehabilitation and

Compensation Act

Part 1 Clean energy advances

124 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Division 3--Top-up payments of clean energy advance

424H Top-up payments of clean energy advance

(1) The Commission may by legislative instrument determine that

persons:

(a) who have been paid the amount (the original payment) of a

specified clean energy advance for a clean energy underlying

payment (the original underlying payment) worked out

under Division 2; and

(b) whose circumstances change, within a period specified in the

instrument, in a way that is specified in the instrument and is

covered by subsection (2) or (3);

are eligible for a further payment, of the amount worked out in

accordance with the instrument, of the clean energy advance.

(2) This subsection covers a person's circumstances changing in a way

such that:

(a) immediately after the change the Commission could still

have determined that the person would have been eligible for

a clean energy advance for the original underlying payment,

had the Commission not already made such a determination;

and

(b) had the amount of the original payment been worked out by

reference to the person's circumstances immediately after the

change, the clean energy advance daily rate that would have

been used for working out that amount would have been

greater than the rate actually used for working out that

amount.

(3) This subsection covers a change in a person's circumstances that,

apart from a multiple entitlement exclusion, would (if any

necessary administrative decisions were made) entitle the person to

a clean energy bonus, under an Act or a scheme, relating to a

payment other than the original underlying payment.

(4) For the purposes of subsection (3), a multiple entitlement

exclusion is an instrument that:

(a) provides a person is not entitled to a clean energy bonus

under an Act or a scheme because of the person's entitlement

to or receipt of the original payment or the original

underlying payment; and

Clean energy payments under the Military Rehabilitation and Compensation Act

Schedule 4

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 125

(b) is made under:

(i) section 424L; or

(ii) section 65A of the Veterans' Entitlements Act 1986; or

(iii) section 918 of the Social Security Act 1991;

or is an instrument establishing entitlements to a clean energy

bonus under a scheme.

(5) An instrument under subsection (1) may provide for:

(a) different periods for changes of circumstances depending on

different changes in circumstances; and

(b) different ways of working out further amounts of the original

payment depending on different changes in circumstances.

Division 4--Payment of clean energy advance

424J Payment of clean energy advance

(1) An amount of clean energy advance for which a person is eligible

is payable in a single lump sum on the day that the Commission

considers to be the earliest day on which it is reasonably

practicable for the advance to be made.

(2) However, the clean energy advance is not payable if the

Commission is aware that the person has died.

Division 5--Debts

424K Debts relating to clean energy advances

(1) This section applies if:

(a) a person has been paid a clean energy advance for a clean

energy underlying payment; and

(b) after the advance was paid, one of the following events

happens to a determination that directly or indirectly affected

the payability or amount of the clean energy advance paid to

the person:

(i) the determination is changed, revoked or set aside;

(ii) the determination is superseded by another

determination; and

Schedule 4 Clean energy payments under the Military Rehabilitation and

Compensation Act

Part 1 Clean energy advances

126 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

knowingly made a false or misleading statement or

knowingly provided false information; and

(d) had the event happened on or before the day the advance was

paid:

(i) the advance would not have been paid; or

(ii) the advance would have been reduced.

Note 1:

Examples of determinations directly affecting the payability or

amount of the clean energy advance include:

(a) a determination relating to the person's eligibility for the clean

energy underlying payment to which the advance related; and

(b) the determination of the person's eligibility for the clean energy

advance.

Note 2:

An example of a determination indirectly affecting the amount of the

advance is a determination relating to a change in circumstances that

results in the person becoming eligible for a further payment of the

advance under an instrument made under section 424H.

Creation and amount of debt

(2) The advance is a debt due to the Commonwealth by the person if

subparagraph (1)(d)(i) applies.

(3) The amount by which the advance would have been reduced is a

debt due to the Commonwealth by the person if

subparagraph (1)(d)(ii) applies.

Recovery of debt

(4) A debt under this section is recoverable by the Commission from

the person in a court of competent jurisdiction.

(5) The recoverable amount may be deducted from an amount that is

payable to or for the benefit of the person under this Act.

Division 6--Multiple entitlement exclusions

424L Multiple entitlement exclusions

(1) The Commission may by legislative instrument determine that

persons in circumstances specified in the instrument are not

entitled to a clean energy bonus under this Act that is specified in

the instrument.

Clean energy payments under the Military Rehabilitation and Compensation Act

Schedule 4

Clean energy advances Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 127

Note: For

clean energy bonus see subsection 5(1).

(2) Those circumstances must relate to persons' entitlement to or

receipt of one or more of the following:

(a) another clean energy bonus under this Act;

(b) a clean energy bonus under the Veterans' Entitlements Act

1986;

(d) a clean energy bonus under a scheme (however described),

whether or not the scheme is provided for by or under an Act.

(3) An instrument under subsection (1) has effect according to its

terms, despite any other provision of this Act.

Schedule 4 Clean energy payments under the Military Rehabilitation and

Compensation Act

Part 2 Clean energy supplements

128 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Part 2--Clean energy supplements

Division 1--Amendments commencing on 20 March 2013

Military Rehabilitation and Compensation Act 2004

10 Subsection 5(1) (after paragraph (a) of the definition of

clean energy bonus)

Insert:

(b) a payment known as a clean energy supplement or a quarterly

clean energy supplement;

11 Subsection 5(1) (at the end of the definition of clean

energy payment)

Add "or clean energy supplement".

12 Subsection 5(1)

Insert:

clean energy supplement means clean energy supplement payable

under section 209A or 238A.

13 Subsection 204(2)

Omit "or for financial advice", substitute ", financial advice or clean

energy supplement".

14 After section 209

Insert:

209A Clean energy supplement for Special Rate Disability Pension

(1) The Commonwealth is liable to pay a clean energy supplement to a

person for a day if:

(a) Special Rate Disability Pension:

(i) is payable to the person for the day; or

(ii) would be payable to the person for the day apart from

section 204 and paragraph 398(3)(b); and

(b) the person resides in Australia on the day; and

Clean energy payments under the Military Rehabilitation and Compensation Act

Schedule 4

Clean energy supplements Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 129

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for

a continuous period not exceeding 13 weeks.

Note:

Section 424L may affect the person's entitlement to the clean energy

supplement.

(2) The daily rate of the supplement is

of the CES 24(4) rate under

the Veterans' Entitlements Act 1986 on the day.

15 At the end of Division 2 of Part 2 of Chapter 5

Add:

238A Clean energy supplement for compensation for wholly

dependent partners of deceased members

(1) The Commonwealth is liable to pay a clean energy supplement to a

person for a day if:

(a) the condition in subsection (2) is met for the day; and

(b) the person is residing in Australia on the day; and

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for

a continuous period not exceeding 13 weeks.

Note:

Section 424L may affect the person's entitlement to the clean energy

supplement.

Condition--receipt of compensation under this Division

(2) The condition is that either or both of the following apply:

(a) weekly compensation under this Division (except this

section) either:

(i) is payable to the person for the day; or

(ii) would be payable to the person for the day apart from

paragraph 398(3)(b);

(b) before the day the person received lump sum compensation

under this Division and subsection 388(6) has not applied to

the person before the day.

Schedule 4 Clean energy payments under the Military Rehabilitation and

Compensation Act

Part 2 Clean energy supplements

130 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Rate of clean energy supplement

(3) The daily rate of the supplement is

of the CES 30(1) rate under

the Veterans' Entitlements Act 1986 on the day.

16 After subsection 430(3)

Insert:

(3AA) In specifying intervals in a direction under subsection (1), the

Commission may take account of a person's choice, notified to the

Commission, to be paid clean energy supplement quarterly. This

does not limit the Commission's powers under that subsection.

Division 2--Amendments commencing on 1 July 2013

Military Rehabilitation and Compensation Act 2004

17 Subsection 5(1) (definition of clean energy supplement)

After "section", insert "83A,".

18 At the end of Part 2 of Chapter 4

Add:

83A Clean energy supplement for compensation under this Part

(1) The Commonwealth is liable to pay a clean energy supplement to a

person for a day if:

(a) the condition in subsection (2) is met for the day; and

(b) the person is residing in Australia on the day; and

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for

a continuous period not exceeding 13 weeks.

Note:

Section 424L may affect the person's entitlement to the clean energy

supplement.

Condition--receipt of compensation under this Part

(2) The condition is that either or both of the following apply:

(a) weekly compensation under this Part (except this section):

Clean energy payments under the Military Rehabilitation and Compensation Act

Schedule 4

Clean energy supplements Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 131

(i) is payable to the person for the day; or

(ii) would be payable to the person for the day apart from

paragraph 398(3)(b) (of this Act) and offsetting

described in subsection 13(4) of the Military

Rehabilitation and Compensation (Consequential and

Transitional Provisions) Act 2004;

(b) before the day the person received lump sum compensation

under this Part.

Rate of clean energy supplement

(3) The daily rate of the supplement is, subject to section 404,

the CES 22(3) rate under the Veterans' Entitlements Act 1986 on

the day.

Note:

Section 404 provides for indexation of the daily rate for each

indexation year starting on or after 1 July 2014.

19 Section 404 (heading)

Repeal the heading, substitute:

404 Indexation of amounts and rates

20 Subsection 404(2)

Repeal the subsection, substitute:

(1A) This section also applies, for indexation years commencing on and

after 1 July 2014, to the daily rate mentioned in subsection 83A(3).

(2) The dollar amount or rate mentioned in the provision, for an

indexation year in which the indexation factor is greater than 1, is

replaced by the amount or rate worked out using the formula:

Dollar amount or rate for the provision

Indexation factor for

for the previous financial year

the indexation year

�

Schedule 4 Clean energy payments under the Military Rehabilitation and

Compensation Act

Part 3 Indexation

132 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Part 3--Indexation

Military Rehabilitation and Compensation Act 2004

21 After subsection 404(5)

Insert:

(5A) For the purposes of replacing the dollar amount mentioned in

subsection 74(1) for an indexation year starting on or after 1 July

2013, the indexation factor is reduced by the brought-forward CPI

indexation amount for the year, but not below 1.

22 Subsection 404(6)

Insert:

brought-forward CPI indexation amount for an indexation year

starting on or after 1 July 2013 means 0.007 less any reduction

made under subsection (5A) for an earlier indexation year.

Clean energy payments under the Farm Household Support Act Schedule 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 133

Schedule 5--Clean energy payments under

the Farm Household Support Act

Farm Household Support Act 1992

1 Subsection 3(1)

Insert:

combined couple rate of pension supplement

2 Subsection 3(1)

Insert:

illness separated couple

3 Subsection 3(1)

Insert:

maximum basic rate

4 Subsection 3(1)

Insert:

partial capacity to work

5 Subsection 3(1)

Insert:

partnered

6 Subsection 3(1)

Insert:

partnered (partner in gaol)

7 Subsection 3(1)

Insert:

Pension Rate Calculator A

Schedule 5 Clean energy payments under the Farm Household Support Act

134 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

8 Subsection 3(1)

Insert:

respite care couple

9 Subsection 3(2)

Insert:

advance qualification day means:

(a) for a person qualifying for a clean energy advance because of

a determination made under subsection 8G(1) or 8H(1)--the

day that determination is made; or

(b) for a person qualifying for a clean energy advance because of

a determination made under subsection 8G(2)--the day

specified in that determination because of subsection 8G(3);

a determination made under subsection 8H(2) or (3)--the day

specified in that determination because of subsection 8H(4).

10 Subsection 3(2)

Insert:

clean energy advance means an advance described in section 8G,

8H or 24F.

11 Subsection 3(2)

Insert:

clean energy advance daily rate has the meaning given by

section 24D.

12 Subsection 3(2)

Insert:

clean energy advance period means:

(a) for a person qualifying under section 8G for a clean energy

advance--the period starting on 1 July 2012 and ending on

19 March 2013; or

Clean energy payments under the Farm Household Support Act Schedule 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 135

(b) for a person qualifying under subsection 8H(1) or (2) for a

clean energy advance--the period starting on 1 July 2012 and

ending on 30 June 2013; or

energy advance--the period starting on 1 July 2013 and

ending on 31 December 2013.

13 Subsection 3(2)

Insert:

number of advance days has the meaning given by section 24E.

14 Subsection 3(2)

Insert:

pension age has the same meaning as in the Social Security Act

1991 (otherwise than when used in Part 3.14A or 3.14B of that Act

in relation to a person who is a veteran (within the meaning of the

Veterans' Entitlements Act 1986)).

15 Subsection 3(2)

Insert:

youth allowance age has the same meaning as in Part 2.11 of the

Social Security Act 1991.

16 Subsection 3(2)

Insert:

youth disability supplement has the same meaning as in Module D

of the Youth Allowance Rate Calculator in the Social Security Act

1991.

17 Part 2 (heading)

Repeal the heading, substitute:

Part 2--Qualification for and payability of certain

support and payments

18 After Division 1B of Part 2

Schedule 5 Clean energy payments under the Farm Household Support Act

136 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Insert:

Division 1C--Qualification for clean energy advances

8G Person not of youth allowance age

Qualification for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May

2012 and ending on 30 June 2012, determine, in writing, that a

person is qualified for a clean energy advance if, on that day:

(a) the person is not of youth allowance age; and

(b) the person receives exceptional circumstances relief

payment; and

(d) the person is in Australia.

Qualification for days 1 July 2012 to 19 March 2013

(2) The Secretary may determine, in writing, that a person is qualified

for a clean energy advance if, on a day during the period starting

on 1 July 2012 and ending on 19 March 2013:

(a) the person is not of youth allowance age; and

(b) the person receives exceptional circumstances relief

payment; and

(d) the person is in Australia.

(3) A determination under subsection (2) must specify the first day

during the period set out in that subsection for which the person:

(a) satisfies paragraphs (2)(a), (b) and (c); and

(b) is in Australia, disregarding any temporary absence from

Australia for a continuous period not exceeding 13 weeks.

8H Person of youth allowance age

Qualification for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May

2012 and ending on 30 June 2012, determine, in writing, that a

person is qualified for a clean energy advance if, on that day:

Clean energy payments under the Farm Household Support Act Schedule 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 137

(a) the person is of youth allowance age; and

(b) the person receives exceptional circumstances relief

payment; and

(d) the person is in Australia.

Qualification for days 1 July 2012 to 30 June 2013

(2) The Secretary may determine, in writing, that a person is qualified

for a clean energy advance if, on a day during the period starting

on 1 July 2012 and ending on 30 June 2013:

(a) the person is of youth allowance age; and

(b) the person receives exceptional circumstances relief

payment; and

(d) the person is in Australia.

Qualification for days 1 July 2013 to 31 December 2013

(3) The Secretary may determine, in writing, that a person is qualified

for a clean energy advance if, on a day during the period starting

on 1 July 2013 and ending on 31 December 2013:

(a) the person is of youth allowance age; and

(b) the person receives exceptional circumstances relief

payment; and

(d) the person is in Australia.

First day of qualification under subsection (2) or (3)

(4) A determination under subsection (2) or (3) must specify the first

day during the period set out in that subsection for which the

person:

(a) satisfies paragraphs (a), (b) and (c) of that subsection; and

(b) is in Australia, disregarding any temporary absence from

Australia for a continuous period not exceeding 13 weeks.

8J Limits on qualifying for multiple advances

(1) A person cannot qualify for more than one clean energy advance

under section 8G.

Schedule 5 Clean energy payments under the Farm Household Support Act

138 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(2) A person can qualify for at most 2 clean energy advances under

section 8H:

(a) one under either subsection 8H(1) or (2); and

(b) one under subsection 8H(3).

(3) A person who has qualified for a clean energy advance under

subsection 8H(1) cannot qualify for a clean energy advance under

subsection 8G(1).

Note 1:

Top-up payments of clean energy advance may be payable under

section 24F if the person's circumstances change during the person's

clean energy advance period.

Note 2:

A person who has qualified for a clean energy advance under

subsection 8H(1) or (2) can qualify for a clean energy advance under

subsection 8G(2).

Note 3:

However, a second qualification mentioned in note 2 will only result

in a further payment if it satisfies the criteria for a top-up payment (see

subsection 24C(3) and section 24D).

19 At the end of subsection 14(1)

Add:

Note:

A claim is not required for a clean energy advance.

20 After Part 4

Insert:

Part 4A--Amount of a clean energy advance

24C Amount of a clean energy advance

(1) On the day (the decision day) that the Secretary determines that a

person (the recipient) is qualified for a clean energy advance, the

Secretary must work out the amount of the advance.

Note:

The advance will be paid in a lump sum as soon as is reasonably

practicable (see subsection 25(4) and section 26C).

(2) The amount of the advance is the result of the following formula

rounded up to the nearest multiple of $10:

Clean energy advance daily rate

Number of advance days

�

Clean energy payments under the Farm Household Support Act Schedule 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 139

(3) However, no amount is payable under this section for the

qualification if:

(a) the qualification is under section 8G; and

(b) a clean energy advance has already been paid to the recipient

for a qualification under section 8H.

Note:

The qualification under section 8G may result in a top-up payment

under section 24F.

24D Clean energy advance daily rate

Recipient has reached pension age

(1) If the recipient reaches pension age on or before the decision day,

the recipient's clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of:

(i) double the maximum basic rate under Pension Rate

Calculator A, worked out for 1 July 2012 for a person

who is partnered; and

(ii) the combined couple rate of pension supplement for

1 July 2012; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of $5.20 (rounding up if that result is not a multiple

of $5.20 but is a multiple of $2.60); and

(d) applying the applicable percentage in the following table to

the result of paragraph (c); and

(e) dividing the result of paragraph (d) by 364.

Percentage to be applied

Item

Recipient's family situation on the

advance qualification day

Use this %

Not a member of a couple

66.33%

2 Partnered

50%

Member of an illness separated couple

66.33%

Member of a respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Schedule 5 Clean energy payments under the Farm Household Support Act

140 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Recipient under pension age but not of youth allowance age

(2) If the recipient is not covered by subsection (1) and is not of youth

allowance age on the advance qualification day, the recipient's

clean energy advance daily rate is worked out by:

(a) working out 1.7% of the maximum basic rate for newstart

allowance, worked out:

(i) for 1 July 2012; and

(ii) for a person in circumstances the same as the recipient's

on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Recipient under 21 with a partial capacity to work

(3) If, on the advance qualification day, the recipient is under 21 and

has a partial capacity to work, the recipient's clean energy

advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and

the youth disability supplement, for youth allowance, worked

out:

(i) for the first day of the recipient's clean energy advance

period; and

(ii) for a person in circumstances the same as the recipient's

on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Other recipients of youth allowance age

(4) If, on the advance qualification day, the recipient is of youth

allowance age and not covered by subsection (3), the recipient's

clean energy advance daily rate is worked out by:

(a) working out 1.7% of the maximum basic rate for youth

allowance, worked out:

Clean energy payments under the Farm Household Support Act Schedule 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 141

(i) for the first day of the recipient's clean energy advance

period; and

(ii) for a person in circumstances the same as the recipient's

on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest

multiple of 10 cents (rounding up if that result is not a

multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

24E Number of advance days

The

recipient's

number of advance days is the number of days in

the recipient's clean energy advance period that are on or after:

(a) if the recipient qualifies for the clean energy advance before

1 July 2012--1 July 2012; or

(b) otherwise--the advance qualification day.

24F Top-up payments of clean energy advance

Work out adjusted amount if circumstances change

(1)

If:

(a) the Secretary pays a clean energy advance (the original

payment) to the recipient; and

(b) the recipient's circumstances change on a day (the change

day) before the end of the recipient's clean energy advance

period;

work out an amount under subsection (3). However, if this section

has previously applied to the recipient, work out an amount under

subsection (4).

When a top-up is payable

(2) If the total of:

(a) the original payment; and

(b) any previous payments under this subsection;

falls short of the amount worked out under subsection (3) or (4) (as

applicable), the recipient is qualified for a further payment of clean

energy advance equal to the amount of the shortfall.

Schedule 5 Clean energy payments under the Farm Household Support Act

142 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Note:

The advance will be paid in a lump sum as soon as is reasonably

practicable (see subsection 25(4) and section 26C).

Adjusted amount for the earliest change day

(3) For the purposes of subsection (1), round up to the nearest multiple

of $10 the result of the formula:

Original pro-rata amount

First pro-rata amount

where:

first pro-rata amount means the amount that would be the result of

the formula set out in subsection 24C(2) if:

(a) the advance qualification day were the change day; and

(b) if the change day is specified in a determination, for the

recipient, under subsection 8G(2) because of subsection

8G(3):

(i) the recipient's clean energy advance period were

worked out by reference to the qualification resulting

from that determination; and

(ii) the reference in subsection 24D(1) to the decision day

were a reference to the change day.

Note:

Paragraph (b) only applies if the recipient qualifies a second time for a

clean energy advance, this time under section 8G (whereas the

recipient qualified for the original payment under section 8H).

original pro-rata amount means the amount that would be the

result of the formula set out in subsection 24C(2) if the recipient's

number of advance days did not include days on or after the change

day.

Note:

The formula set out in subsection 24C(2) does not include the

rounding mentioned in that subsection.

Adjusted amount for later change days

(4) For the purposes of subsection (1), round up to the nearest multiple

of $10 the sum of the following:

(a) the original pro-rata amount worked out under subsection (3)

for the earliest change day;

(b) the first pro-rata amount worked out under subsection (3) for

the earliest change day but as if the number of advance days

did not include days on or after the next change day;

Clean energy payments under the Farm Household Support Act Schedule 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 143

out in a way corresponding to the way the first pro-rata

amount was worked out under paragraph (b) for the earliest

change day.

21 Part 5 (heading)

Repeal the heading, substitute:

Part 5--Payment of certain support and payments

22 At the end of section 25

Add:

(4) Clean energy advance becomes payable to a person qualified for

the advance on the day the Secretary considers to be the earliest

day on which it is reasonably practicable for the advance to be

made. However, the Secretary must not pay the advance if the

Secretary is aware that the person has died.

Note:

This subsection applies to a qualification under section 8G, 8H or 24F.

23 After section 26B

Insert:

26C Clean energy advance to be by way of a single lump sum

Clean energy advance is paid to a person in a single lump sum in

such manner as the Secretary considers appropriate.

Note:

An amount of clean energy advance may be reduced for the purpose

of recovering a debt under section 56 of this Act (see section 1231A of

the Social Security Act 1991).

24 Paragraph 54(1)(c)

Omit "or farm help income support", substitute ", farm help income

support or clean energy advance".

25 Section 55 (heading)

Repeal the heading, substitute:

Schedule 5 Clean energy payments under the Farm Household Support Act

144 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

55 Certain support and payments to be inalienable

26 Section 55

Omit "and farm help scheme payments are", substitute ", farm help

scheme payments and clean energy advances are".

27 At the end of section 56 (before the note)

Add:

(4)

If:

(a) an amount purporting to be an amount of clean energy

advance has been paid to a person; and

(b) some or all of the amount was not payable to the person;

the amount that was not payable may be recovered by the

Commonwealth as a debt due to the Commonwealth.

28 Section 56 (note)

Omit "or farm help income support", substitute ", farm help income

support or clean energy advance".

29 Subsection 57(3)

Omit "Exceptional circumstances relief payment is", substitute

"Exceptional circumstances relief payment and clean energy advance

are".

Social Security Act 1991

30 Section 1227A (heading)

Repeal the heading, substitute:

1227A Certain debts arising under Farm Household Support Act

31 Subsection 1227A(1A)

After "re-establishment grant", insert ", or an amount of clean energy

advance (within the meaning of that Act),".

32 After paragraph 1227A(2)(a)

Insert:

Clean energy payments under the Farm Household Support Act Schedule 5

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 145

(aa) if a clean energy advance (within the meaning of the Farm

Household Support Act 1992) is payable to the person liable

to pay the debt--a deduction from that advance; or

33 Subsection 1227A(3)

After "re-establishment grant", insert ", or an amount of clean energy

advance (within the meaning of the Farm Household Support Act

1992),".

34 Section 1231A (heading)

Repeal the heading, substitute:

1231A Deductions from debtor's farm household payments or

support

35 Paragraph 1231A(1)(b)

Omit "drought relief payment", substitute "a payment or support".

36 Subsection 1231A(2)

Omit "or the farm help income support", substitute ", the farm help

income support or the clean energy advance (within the meaning of the

Farm Household Support Act 1992)".

37 At the end of section 1231A

Add:

(5) For the purposes of this section, treat the payment of a clean

energy advance (within the meaning of the Farm Household

Support Act 1992) as the payment of an instalment of that advance.

Note:

This will be a single instalment.

Schedule 6 Low income supplement

Part 1 Amendment of the social security law

146 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Schedule 6--Low income supplement

Part 1--Amendment of the social security law

Social Security Act 1991

1 Subsection 23(1) (at the end of the definition of clean

energy payment)

Add:

2 Subsection 23(1)

Insert:

low income supplement means low income supplement under

Division 3 of Part 2.18A.

3 After Division 1 of Part 2.18A

Insert:

Division 3--Low income supplement

916A Definitions

In this Division:

income tax return has the same meaning as in the Income Tax

Assessment Act 1997.

tax-free threshold has the same meaning as in the Income Tax

Rates Act 1986.

916B Qualification for low income supplement

A person is qualified for a low income supplement for an income

year if:

(a) the person satisfies each of the following for the previous

income year:

(i) the income requirement in section 916C;

(ii) the excluded payment requirement in section 916D;

Low income supplement Schedule 6

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 147

(iii) the tax requirement in section 916E;

(iv) the remaining requirements in section 916F; and

(b) the person makes a claim for the supplement; and

person is not in gaol or a psychiatric institution.

Note:

Generally a person must make a claim for low income supplement for

an income year in that income year (see section 27C of the

Administration Act).

916C The income requirement

(1) A person satisfies the income requirement for an income year if the

person's qualifying income for the year is less than:

(a) $30,000 if the person is not a member of a couple, and does

not have a dependent child, at the claim time; or

(b)

$45,000

if:

(i) the person is a member of a couple at the claim time;

and

(ii) neither the person, nor the person's partner at that time,

has a dependent child at that time; or

(d) $60,000 if the person is a member of a couple at the claim

time, and the person's partner at that time has a dependent

child at that time.

Qualifying income

(2)

person's

qualifying income for an income year is:

(a) if the person is a member of a couple at the claim time--the

sum of:

(i) the person's accepted adjusted taxable income for the

income year; and

(ii) the accepted adjusted taxable income for the income

year of the person's partner; or

(b) otherwise--the person's accepted adjusted taxable income

for the income year.

Schedule 6 Low income supplement

Part 1 Amendment of the social security law

148 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Adjusted taxable income

(3)

person's

adjusted taxable income for an income year is the sum

of:

(a) the person's adjusted taxable income (within the meaning of

Schedule 3 to the Family Assistance Act, disregarding

clauses 3 and 3A of that Schedule) for the income year; and

(b) any superannuation income stream benefits (within the

meaning of the Income Tax Assessment Act 1997) received

by the person in relation to the income year, to the extent that

those benefits are non-assessable non-exempt income (within

the meaning of that Act).

Note:

A person's adjusted taxable income (within the meaning of the Family

Assistance Act) has several income components (see Schedule 3 to

that Act).

Accepted adjusted taxable income

(4) A person has an accepted adjusted taxable income if:

(a) the Commissioner of Taxation has made an assessment of the

person's taxable income for the income year and, for each of

the other components of the person's adjusted taxable income

for the income year, either or both of the following apply:

(i) the Commissioner holds information about the

component;

(ii) to the extent that the Commissioner does not hold

information about the component--the Secretary

accepts under subsection (5) an estimate of the

component; or

(b) the Secretary accepts under subsection (6) an estimate of the

person's adjusted taxable income for the income year.

Note:

For paragraph (a), a person's taxable income is a component of the

person's adjusted taxable income (see Schedule 3 to the Family

Assistance Act).

When the Secretary may accept estimates

(5) The Secretary may, for the purposes of subparagraph (4)(a)(ii),

accept an estimate of a component of a person's adjusted taxable

income for an income year if the Secretary is satisfied that the

estimate is reasonable.

Low income supplement Schedule 6

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 149

(6) The Secretary may, for the purposes of paragraph (4)(b), accept an

estimate of a person's adjusted taxable income for an income year

if:

(a) the person's estimated taxable income for the income year is

not more than the tax-free threshold for the income year; and

(b) the Secretary is satisfied that:

(i) the estimate of each of the components of the person's

adjusted taxable income is reasonable; and

(ii) the Commissioner of Taxation has not made an

assessment of the person's taxable income for the

income year; and

(iii) the person has not lodged, and is not required under the

Income Tax Assessment Act to lodge, an income tax

return for the income year.

Definition

(7) In this section:

claim time means the time a person makes a claim for low income

supplement for an income year.

916D The excluded payment requirement

(1) A person satisfies the excluded payment requirement for an income

year if:

(a) there were at least 92 days during the year in respect of

which relevant clean energy payments were not paid to the

person; and

(b) the person satisfies subsection (2) for the income year; and

person did not receive any of the payments set out in

subsection (3).

Note: For

relevant clean energy payment, see subsection (5).

(2) A person satisfies this subsection for an income year if either:

(a) there were at least 13 weeks during the income year for

which the person did not have an FTB child; or

(b) if paragraph (a) does not apply--all of the following apply:

(i) the Secretary determined under paragraph 19(b) of the

Family Assistance Administration Act that the person

Schedule 6 Low income supplement

Part 1 Amendment of the social security law

150 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

was not entitled to be paid family tax benefit for a past

period;

(ii) because of that determination, there were at least 13

weeks during the income year for which the person was

not entitled to be paid family tax benefit;

(iii) the determination was not made because of section 26

of the Family Assistance Act.

Excluded payments

(3) The payments are the following:

(a) a social security pension (other than a sole parent pension or

special needs pension);

(b) a social security benefit;

Part VIIAD of the Veterans' Entitlements Act;

(d) a payment under the ABSTUDY Scheme that included an

amount identified as living allowance;

(e) a payment under Part 5 or 6 of the Farm Household Support

Act 1992;

(f) a pension under Part II, III or IV of the Veterans'

Entitlements Act (other than a pension that is payable at a

rate specified in subsection 30(2) of that Act);

(g) compensation under Part 2 of Chapter 4, or Division 2 of

Part 2 of Chapter 5, of the Military Rehabilitation and

Compensation Act;

(h) a Special Rate Disability Pension (within the meaning of

section 198 of the Military Rehabilitation and Compensation

Act);

(i) a payment under the Military Rehabilitation and

Compensation Act Education and Training Scheme worked

out by reference to the maximum basic rate of youth

allowance;

(j) a payment under the Veterans' Children Education Scheme

worked out by reference to the maximum basic rate of youth

allowance.

(4) For the purposes of paragraph (3)(g), if a person has received

compensation mentioned in that paragraph as a lump sum (whether

paid before, on or after the commencement of this Division), the

person is taken to be receiving the weekly amount that would have

Low income supplement Schedule 6

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 151

been payable had the person not chosen to receive that

compensation as a lump sum.

Meaning of relevant clean energy payment

(5) In this section, relevant clean energy payment means:

(a) a clean energy payment (other than a low income supplement

and an essential medical equipment payment); or

(b) a clean energy advance (within the meaning of the Family

Assistance Act); or

tax benefit worked out under Schedule 1 to the Family

Assistance Act includes either or both an amount of clean

energy supplement (Part A) or clean energy supplement (Part

B); or

(d) single income family supplement (within the meaning of the

Family Assistance Act); or

(e) a clean energy advance (within the meaning of the Farm

Household Support Act 1992); or

(f) a clean energy payment (within the meaning of the Military

Rehabilitation and Compensation Act); or

(g) a clean energy payment (within the meaning of the Veterans'

Entitlements Act), other than an essential medical equipment

payment (within the meaning of that Act).

916E The tax requirement

(1) A person satisfies the tax requirement for an income year if the

person's accepted taxable income for the income year is:

(a) less than $18,000; or

(b) $18,000 or more, but less than the person's LIS threshold

amount for the income year.

Accepted taxable income

(2) A person has an accepted taxable income for an income year if:

(a) the Commissioner of Taxation has made an assessment of the

person's taxable income for the income year; or

(b) the Secretary accepts an estimate of the person's taxable

income for the income year under subsection (3).

Schedule 6 Low income supplement

Part 1 Amendment of the social security law

152 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(3) The Secretary may accept an estimate of a person's taxable income

for an income year if:

(a) the estimate is not more than the tax-free threshold for the

income year; and

(b) the Secretary is satisfied that:

(i) the estimate is reasonable; and

(ii) the Commissioner of Taxation has not made an

assessment of the person's taxable income for the

income year; and

(iii) the person has not lodged, and is not required under the

Income Tax Assessment Act to lodge, an income tax

return for the income year; and

(i) the person has provided the Secretary with an estimate

of the person's eligible tax offsets (within the meaning

of subsection (4)) for the income year; and

(ii) the Secretary is satisfied that that estimate is reasonable.

LIS threshold amount

(4)

The

LIS threshold amount for a person for an income year is

worked out as follows:

Amount of the person's eligible tax offsets

for the income year

$18, 000

0.15

where:

eligible tax offsets, for a person for an income year, means the

person's tax offsets (if any) for the income year, disregarding any

tax offset under section 159N of the Income Tax Assessment Act

1936 (tax offset for certain low income earners).

tax offset has the same meaning as in the Income Tax Assessment

Act 1997.

916F The remaining requirements

A person (the claimant) satisfies the remaining requirements for an

income year if:

Low income supplement Schedule 6

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 153

(a) the claimant was, at all times during the year, an Australian

resident or a special category visa holder residing in

Australia; and

(b) the claimant was in Australia for at least 39 weeks of the

year; and

waiting period at any time during the year; and

(d) the claimant was not a dependent child of another person for

more than 25 weeks of the year; and

(e) the claimant was not in gaol and/or psychiatric institutions

for more than 25 weeks of the year; and

(f) no person was eligible for family tax benefit in respect of the

claimant in relation to more than 25 weeks of the year.

916G Availability of supplement

A person cannot receive more than one low income supplement for

an income year.

916H Non-receipt of social security payment

(1) This section applies for the purposes of a provision of this or

another Act if:

(a) the provision provides a benefit (whether the benefit is a

pension, benefit, payment, supplement or any other sort of

benefit) if a person meets specified criteria; and

(b) one of the specified criteria is that the person is receiving a

social security payment, or is a recipient of a social security

payment.

(2) For the purposes of the provision, a person is not taken to be

receiving a social security payment, or to be a recipient of a social

security payment, merely because the person receives low income

supplement.

916J Amount of supplement

The amount of a low income supplement for an income year is

$300.

Schedule 6 Low income supplement

Part 1 Amendment of the social security law

154 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Social Security (Administration) Act 1999

4 Subsection 16(3)

After "person may", insert ", subject to subsection (3A),".

5 After subsection 16(3)

Insert:

(3A) A claim by a person for low income supplement for an income year

must not be combined with any other claim.

6 Before Subdivision G of Division 1 of Part 3

Insert:

Subdivision FC--Time limit for claims for low income

supplement

27C Time limit for claim

(1) A claim for low income supplement for an income year must be

made during that income year.

(2) However, the claim may be made after the end of that income year

if the Secretary is satisfied that:

(a) there are special circumstances applying to the person's

claim that justify making a late claim; and

(b) the claim is made within a reasonable period having regard to

those circumstances.

7 After section 204A

Insert:

204B Secretary may require Commissioner to provide information

in relation to claimants for low income supplement

(1) The Secretary may, in relation to claims for low income

supplement, require the Commissioner of Taxation to provide the

Secretary with information about people, including tax file

numbers, being information:

(a) that is in the possession of the Commissioner; and

Low income supplement Schedule 6

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 155

(b) that relates to any of the following for an income year:

(i) taxable income;

(ii) tax offsets (within the meaning of the Income Tax

Assessment Act 1997);

(iii) adjusted taxable income (within the meaning of the

Family Assistance Act);

(iv) income tax (within the meaning of the Income Tax

Assessment Act 1997); and

Commissioner to provide under section 204A.

(2) Information provided to the Secretary under a requirement made

under subsection (1) may be used only for the purposes of

ascertaining whether a person is or was qualified for low income

supplement for an income year.

Schedule 6 Low income supplement

Part 2 Application and transitional provisions

156 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Part 2--Application and transitional provisions

8 Application--claims from 1 July 2012

The amendments to the Social Security Act 1991 and the Social Security

(Administration) Act 1999 made by Part 1 of this Schedule apply in

relation to claims for low income supplement made on or after 1 July

2012.

9 Transitional--tax-free threshold for the 2011-12 income

year

For the purposes of applying subsections 916C(6) and 916E(3) of the

Social Security Act 1991 (as inserted by this Schedule) in relation to the

2011-12 income year:

(a) the definition of tax-free threshold in section 916A does not

apply; and

(b)

tax-free threshold means $6,000.

10 Transitional--tax requirement for claims made in the

2012-13 income year

(1)

For a person who makes a claim for low income supplement for the

2012-13 income year:

(a) subsection 916E(1) of the Social Security Act 1991, as

inserted by this Schedule, does not apply in relation to the

claim; and

(b) the person is taken to satisfy the tax requirement referred to

in subparagraph 916B(a)(iii) of that Act (as inserted by this

Schedule) for the 2011-12 income year if the person satisfies

the requirement in subitem (2).

(2)

A person satisfies this subitem if:

(a) the person has an accepted taxable income (within the

meaning of subsection 916E(2) of the Social Security Act

1991, as inserted by this Schedule) for the 2011-12 income

year; and

(b) the amount of income tax owed by the person for that year, as

worked out under subsection 4-10(3) of the Income Tax

Assessment Act 1997 by reference to the person's accepted

taxable income, is less than $300.

Low income supplement Schedule 6

Other amendments Part 3

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 157

Part 3--Other amendments

Income Tax Assessment Act 1936

11 After paragraph 202(h)

Insert:

(haa) to facilitate the administration of Division 3 of Part 2.18A of

the Social Security Act 1991 (which deals with payment of

low income supplement); and

Taxation Administration Act 1953

12 Paragraph 8WA(1AA)(b)

After "(h),", insert "(haa),".

13 Paragraphs 8WB(1A)(a) and (b)

After "(h),", insert "(haa),".

Schedule 7 Essential medical equipment payment

Part 1 Amendment of the social security law

158 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Schedule 7--Essential medical equipment

payment

Part 1--Amendment of the social security law

Social Security Act 1991

1 Subsection 23(1) (at the end of the definition of clean

energy payment)

Add:

(d) an essential medical equipment payment.

2 Subsection 23(1)

Insert:

EMEP residence has the meaning given by section 917A.

3 Subsection 23(1)

Insert:

essential medical equipment payment has the meaning given by

section 917A.

4 Subsection 23(1)

Insert:

medical equipment has the meaning given by section 917A.

5 Subsection 23(1)

Insert:

person with medical needs has the meaning given by

section 917A.

6 After Division 3 of Part 2.18A

Insert:

Essential medical equipment payment Schedule 7

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 159

Division 4--Essential medical equipment payment

917A Definitions

In this Division:

EMEP residence has the meaning given by subsection 917C(1).

essential medical equipment payment:

(a) means an essential medical equipment payment under this

Division (except in section 917F); and

(b) in section 917F--has the meaning given by that section.

medical equipment, in relation to a person who satisfies the

medical needs requirement under paragraph 917C(1)(b), means the

heating or cooling system (as the case requires) of the residence

described in that paragraph.

person with medical needs has the meaning given by paragraph

917C(2)(b).

917B Qualification for essential medical equipment payment

(1) A person (the claimant) is qualified for an essential medical

equipment payment for an income year if:

(a) the Secretary is satisfied that the claimant satisfies each of

the following on the EMEP test day:

(i) the medical needs requirement in section 917C;

(ii) the concession card requirement in section 917D;

(iii) the energy account requirement in section 917E; and

(b) a medical practitioner has (subject to subsection (2)) certified

that:

(i) the claimant meets the medical needs requirement under

subsection 917C(1) on a day; or

(ii) another specified person meets the medical needs

requirement under subsection 917C(1) on a day;

(as the case requires); and

medical equipment payment by section 917F; and

(d) the claimant is not a dependent child of another person on the

EMEP test day; and

Schedule 7 Essential medical equipment payment

Part 1 Amendment of the social security law

160 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(e) the claimant is in Australia on the EMEP test day.

(2) Paragraph (1)(b) does not apply if the Secretary is otherwise

satisfied that the claimant or another specified person meets the

medical needs requirement in section 917C.

Meaning of EMEP test day

(3) For the purposes of subsection (1), the EMEP test day is either:

(a) the day in the income year referred to in subsection (1) on

which the claimant makes the claim for the payment; or

(b) an anniversary (in the income year referred to in

subsection (1)) of the day on which the claimant made a

claim for the payment if:

(i) the claimant made the claim in a previous income year;

and

(ii) since the claimant made the claim, the Secretary has not

determined that the claimant has ceased to be qualified

for the payment.

Note 1:

Under section 11 of the Administration Act, a person is required to

make a claim for a social security payment.

Note 2:

For additional rules relating to the claim, see section 19 of the

Administration Act.

Determining qualification for later income years

(4) In determining whether a person is qualified for an essential

medical equipment payment for an income year after the income

year in which the claim for the payment is made, the Secretary:

(a) may act on the basis of the documents and information in his

or her possession; and

(b) is not required to conduct any inquiries or investigations into

the matter or to require (whether under this Act or otherwise)

the giving of any information or the production of any

document.

(5) Despite subsection (4), the Secretary may require a further

certification for the purposes of paragraph (1)(b), or further

information or a further document for the purposes of

subsection (2), in an income year after the income year in which

the claim is made.

Essential medical equipment payment Schedule 7

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 161

917C The medical needs requirement

Person who has medical needs

(1) A person satisfies the medical needs requirement on a day if:

(a) the person has a medical condition on that day, and as a

result:

(i) the person requires the use of specified essential

medical equipment in a residence (the EMEP

residence) that is the person's home and is either a

private residence or a specified residence; and

(ii) the person uses that equipment in that residence; or

(b) the person has a specified medical condition on that day, and

as a result:

(i) the person is unable to regulate his or her body

temperature; and

(ii) additional heating or cooling is required, in a residence

(the EMEP residence) that is the person's home and is

either a private residence or a specified residence, to

manage the person's condition; and

(iii) the person uses additional heating or cooling in that

residence.

Caring for a person who has medical needs

(2) A person (the carer) also satisfies the medical needs requirement

on a day if:

(a) the carer provides care and attention on a regular and

ongoing basis for a person; and

(b) the person (the person with medical needs) satisfies the

medical needs requirement under subsection (1) on the day;

and

under subparagraph 917B(1)(b)(ii) or is the person specified

for the purposes of subsection 917B(2) (as the case requires);

and

(d) the carer's home is the EMEP residence that is the home of

the person with medical needs.

Schedule 7 Essential medical equipment payment

Part 1 Amendment of the social security law

162 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Legislative instrument

(3) The Minister may, by legislative instrument, specify:

(a) essential medical equipment for the purposes of

paragraph (1)(a); and

(b) medical conditions for the purposes of paragraph (1)(b); and

917D The concession card requirement

A person satisfies the concession card requirement on a day if:

(a) the person is a holder of a concession card, or the person's

name is included on a concession card, on that day; or

(b) both of the following apply:

(i) the person satisfies the medical needs requirement under

subsection 917C(2) (caring for a person) on that day in

relation to a person with medical needs;

(ii) the person with medical needs is a holder of a

concession card, or the name of the person with medical

needs is included on a concession card, on that day.

917E The energy account requirement

(1) A person satisfies the energy account requirement on a day if:

(a) on that day, the energy account for the relevant EMEP

residence is in the name of that person; or

(b) on that day, the energy account for the relevant EMEP

residence is in the name of that person's partner; or

the energy account for the relevant EMEP residence; or

(d) if the person is not the person with medical needs--the

person with medical needs contributes (whether wholly or

partly) to paying the energy account for the relevant EMEP

residence.

(2) For the purposes of subsection (1), an energy account for a

residence means any account for:

(a)

electricity;

(b) any other specified form of energy;

that is supplied to the residence.

Essential medical equipment payment Schedule 7

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 163

(3) The Minister may, by legislative instrument, specify forms of

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

917F Availability of payments

(1) No essential medical equipment payment may be made for an

income year in relation to medical equipment that is used in an

EMEP residence if an essential medical equipment payment has

already been made for that income year in relation to the same

equipment and the same residence.

(2) No more than 2 essential medical equipment payments may be

made in relation to the same medical equipment for an income year

(subject to subsection (1)).

(3) Essential medical equipment payments for an income year may not

be made, in relation to a person with medical needs, in relation to

more than 2 EMEP residences.

Meaning of essential medical equipment payment

(4) In this section, an essential medical equipment payment means an

essential medical equipment payment under this Division or

Division 3 of Part IIIE of the Veterans' Entitlements Act.

917G Amount of payment

The amount of an essential medical equipment payment for an

income year is $140.

Note:

The amount specified is indexed on each 1 July (see sections 1190 and

1191).

917H Non-receipt of social security payment

(1) This section applies for the purposes of a provision of this or

another Act if:

(a) the provision provides a benefit (whether the benefit is a

pension, benefit, payment, supplement or any other sort of

benefit) if a person meets specified criteria; and

(b) one of the specified criteria is that the person is receiving a

social security payment, or is a recipient of a social security

payment.

Schedule 7 Essential medical equipment payment

Part 1 Amendment of the social security law

164 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(2) For the purposes of the provision, a person is not taken to be

receiving a social security payment, or to be a recipient of a social

security payment, merely because the person receives an essential

medical equipment payment.

7 Section 1190 (at the end of the table)

Add:

Essential medical

equipment

payment

70. essential

medical

equipment payment

EMEP section

917G

8 Subsection 1191(1) (at the end of the table)

Add:

Essential

medical

equipment

payment

42. EMEP

1 July

December

highest

December

quarter

before

reference

quarter (but

not earlier

than the

December

quarter of

2011)

$1.00

9 At the end of section 1192

Add:

(9) The first indexation of amounts under item 42 of the CPI

Indexation Table in subsection 1191(1) is to take place on 1 July

2013.

Essential medical equipment payment Schedule 7

Amendment of the social security law Part 1

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 165

Social Security (Administration) Act 1999

10 After section 18

Insert:

19 Special requirements regarding claims for essential medical

equipment payment

(1) A claim for an essential medical equipment payment must include

a statement by the person making the claim that the medical

equipment to which the claim relates is used in the relevant EMEP

residence.

(2)

If:

(a) a person who provides care and attention for a person with

medical needs makes a claim for an essential medical

equipment payment; and

(b) the person with medical needs is not a dependent child of that

or any other person;

the claim must be signed by the person with medical needs.

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

166 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Part 2--Amendment of the Veterans' Entitlements

Act

Veterans' Entitlements Act 1986

11 Section 5 (index of definitions)

Insert:

EMEP residence

5Q(1)

12 Section 5 (index of definitions)

Insert:

essential medical equipment payment

5Q(1)

13 Section 5 (index of definitions)

Insert:

income year

5Q(1)

14 Section 5 (index of definitions)

Insert:

medical equipment

5Q(1)

15 Section 5 (index of definitions)

Insert:

person with medical needs

5Q(1)

16 Subsection 5Q(1) (at the end of the definition of clean

energy payment)

Add:

17 Subsection 5Q(1)

Insert:

Essential medical equipment payment Schedule 7

Amendment of the Veterans' Entitlements Act Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 167

EMEP residence has the meaning given by section 63A.

18 Subsection 5Q(1)

Insert:

essential medical equipment payment has the meaning given by

section 63A.

19 Subsection 5Q(1)

Insert:

income year has the meaning given by the Income Tax Assessment

Act 1997.

20 Subsection 5Q(1)

Insert:

medical equipment has the meaning given by section 63A.

21 Subsection 5Q(1)

Insert:

person with medical needs has the meaning given by section 63A.

22 Subsection 5Q(1) (paragraph (b) of the definition of tax

year)

Omit "(within the meaning of the Income Tax Assessment Act 1997)".

23 After Division 1 of Part IIIE

Insert:

Division 3--Essential medical equipment payment

Subdivision A--Definitions

63A Definitions

In this Division:

EMEP residence has the meaning given by subsection 63C(1).

essential medical equipment payment:

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

168 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(a) means an essential medical equipment payment under this

Division (except in section 63F); and

(b) in section 63F--has the meaning given by that section.

medical equipment, in relation to a person who satisfies the

medical needs requirement under paragraph 63C(1)(b), means the

heating or cooling system (as the case requires) of the residence

described in that paragraph.

person with medical needs has the meaning given by paragraph

63C(2)(b).

Subdivision B--Eligibility for essential medical equipment

payment

63B Eligibility for essential medical equipment payment

(1) A person (the claimant) is eligible for an essential medical

equipment payment for an income year if:

(a) the Commission is satisfied that the claimant satisfies each of

the following on the EMEP test day:

(i) the medical needs requirement in section 63C;

(ii) the concession card requirement in section 63D;

(iii) the energy account requirement in section 63E; and

(b) a medical practitioner has (subject to subsection (2)) certified

that:

(i) the claimant meets the medical needs requirement under

subsection 63C(1) on a day; or

(ii) another specified person meets the medical needs

requirement under subsection 63C(1) on a day;

(as the case requires); and

medical equipment payment by section 63F; and

(d) the claimant is not a dependent child of another person on the

EMEP test day; and

(e) the claimant is in Australia on the EMEP test day.

(2) Paragraph (1)(b) does not apply if the Commission is otherwise

satisfied that the claimant or another specified person meets the

medical needs requirement in section 63C.

Essential medical equipment payment Schedule 7

Amendment of the Veterans' Entitlements Act Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 169

Meaning of EMEP test day

(3) For the purposes of subsection (1), the EMEP test day is either:

(a) the day in the income year referred to in subsection (1) on

which the claimant makes the claim for the payment; or

(b) an anniversary (in the income year referred to in

subsection (1)) of the day on which the claimant made a

claim for the payment if:

(i) the claimant made the claim in a previous income year;

and

(ii) since the claimant made the claim, the Commission has

not determined that the claimant has ceased to be

eligible for the payment.

Note:

For claims, see Subdivision C.

Determining eligibility for later income years

(4) In determining whether a person is eligible for an essential medical

equipment payment for an income year after the income year in

which the claim for the payment is made, the Commission:

(a) may act on the basis of the documents and information in its

possession; and

(b) is not required to conduct any inquiries or investigations into

the matter or to require (whether under this Act or otherwise)

the giving of any information or the production of any

document.

(5) Despite subsection (4), the Commission may require a further

certification for the purposes of paragraph (1)(b), or further

information or a further document for the purposes of

subsection (2), in an income year after the income year in which

the claim is made.

63C The medical needs requirement

Person who has medical needs

(1) A person satisfies the medical needs requirement on a day if:

(a) the person has a medical condition on that day, and as a

result:

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

170 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(i) the person requires the use of specified essential

medical equipment in a residence (the EMEP

residence) that is the person's home and is either a

private residence or a specified residence; and

(ii) the person uses that equipment in that residence; or

(b) the person has a specified medical condition on that day, and

as a result:

(i) the person is unable to regulate his or her body

temperature; and

(ii) additional heating or cooling is required, in a residence

(the EMEP residence) that is the person's home and is

either a private residence or a specified residence, to

manage the person's condition; and

(iii) the person uses additional heating or cooling in that

residence.

Caring for a person who has medical needs

(2) A person (the carer) also satisfies the medical needs requirement

on a day if:

(a) the carer provides care and attention on a regular and

ongoing basis for a person; and

(b) the person (the person with medical needs) satisfies the

medical needs requirement under subsection (1) on the day;

and

under subparagraph 63B(1)(b)(ii) or is the person specified

for the purposes of subsection 63B(2) (as the case requires);

and

(d) the carer's home is the EMEP residence that is the home of

the person with medical needs.

Meaning of specified essential medical equipment, specified

medical condition and specified residence

(3) In this section:

specified essential medical equipment means any medical

equipment that is specified under subsection 917C(3) of the Social

Security Act.

Essential medical equipment payment Schedule 7

Amendment of the Veterans' Entitlements Act Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 171

specified medical condition means any medical condition that is

specified under subsection 917C(3) of the Social Security Act.

specified residence means any residence that is specified under

subsection 917C(3) of the Social Security Act.

63D The concession card requirement

(1) A person satisfies the concession card requirement on a day if:

(a) the person is a holder of a concession card, or the person's

name is included on a concession card, on that day; or

(b) both of the following apply:

(i) the person satisfies the medical needs requirement under

subsection 63C(2) (caring for a person) on that day in

relation to a person with medical needs;

(ii) the person with medical needs is a holder of a

concession card, or the name of the person with medical

needs is included on a concession card, on that day.

(2) For the purposes of subsection (1), a concession card means any of

the following cards:

(a) a pensioner concession card issued under section 53;

(b) a seniors health card issued under section 118ZG;

Conditions, that evidences a person's eligibility, under this

Act or the Military Rehabilitation and Compensation Act

2004, to be provided with treatment for all injuries or

diseases;

(d) a card known as the Repatriation Health Card--For Specific

Conditions, that evidences a person's eligibility, under this

Act or the Military Rehabilitation and Compensation Act

2004, to be provided with treatment for specific injuries or

diseases.

63E The energy account requirement

(1) A person satisfies the energy account requirement on a day if:

(a) on that day, the energy account for the relevant EMEP

residence is in the name of that person; or

(b) on that day, the energy account for the relevant EMEP

residence is in the name of that person's partner; or

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

172 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

the energy account for the relevant EMEP residence; or

(d) if the person is not the person with medical needs--the

person with medical needs contributes (whether wholly or

partly) to paying the energy account for the relevant EMEP

residence.

(2) For the purposes of subsection (1), an energy account for a

residence means any account for:

(a)

electricity;

(b) any other specified form of energy;

that is supplied to the residence.

(3) In this section:

specified form of energy means any form of energy that is

specified under subsection 917E(3) of the Social Security Act.

63F Availability of payments

(1) No essential medical equipment payment may be made for an

income year in relation to medical equipment that is used in an

EMEP residence if an essential medical equipment payment has

already been made for that income year in relation to the same

equipment and the same residence.

(2) No more than 2 essential medical equipment payments may be

made in relation to the same medical equipment for an income year

(subject to subsection (1)).

(3) Essential medical equipment payments may not be made, in

relation to a person with medical needs, in relation to more than 2

EMEP residences.

Meaning of essential medical equipment payment

(4) In this section, an essential medical equipment payment means an

essential medical equipment payment under this Division or

Division 4 of Part 2.18A of the Social Security Act.

Essential medical equipment payment Schedule 7

Amendment of the Veterans' Entitlements Act Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 173

63G Amount of payment

The amount of an essential medical equipment payment for an

income year is $140.

Note:

The amount specified is indexed on each 1 July (see section 198E).

63H Debts arising in respect of essential medical equipment

payments

(1)

If:

(a) an individual has been paid an essential medical equipment

payment because of a determination made under this

Division; and

(b) after the payment was made to the individual, the

determination is or was (however described) changed,

revoked, set aside, or superseded by another determination;

and

determination is or was made for the reason, or for reasons

including the reason, that the individual knowingly made a

false or misleading statement, or knowingly provided false

information; and

(d) apart from that statement or information, the payment would

not have been paid to the individual;

the amount of the payment is a debt due to the Commonwealth by

the individual.

(2) The other provisions of this Act under which debts arise do not

apply in relation to essential medical equipment payments.

Subdivision C--Claim for essential medical equipment

payment

63J Need for a claim

A person who wants to be paid an essential medical equipment

payment must make a proper claim.

Note: For

proper claim see section 63M (form) and section 63N (residence

in Australia).

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

174 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

63K Special requirements regarding claims for essential medical

equipment payment

(1) A claim for an essential medical equipment payment must include

a statement by the person making the claim that the medical

equipment to which the claim relates is used in the relevant EMEP

residence.

(2)

If:

(a) a person who provides care and attention for a person with

medical needs makes a claim for an essential medical

equipment payment; and

(b) the person with medical needs is not a dependent child of that

or any other person;

the claim must be signed by the person with medical needs.

63L Who can claim?

(1) Subject to subsection (2), a claim must be made by:

(a) the person who wants to be paid an essential medical

equipment payment; or

(b) with the approval of the person--another person on the

person's behalf.

(2) If the person is unable, because of physical or mental incapacity, to

approve another person to make the claim on his or her behalf, the

Commission may approve another person to make the claim.

63M Making a claim

(1) To be a proper claim, the claim must be:

(a) made in writing; and

(b) in accordance with a form approved by the Commission; and

the claimant considers may be relevant to the claim; and

(d) lodged at an office of the Department in Australia in

accordance with section 5T.

(2) A claim lodged in accordance with section 5T is taken to have been

made on a day determined under that section.

Essential medical equipment payment Schedule 7

Amendment of the Veterans' Entitlements Act Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 175

63N Claimant must be an Australian resident

A claim is not a proper claim unless the person making the claim,

or on whose behalf the claim is being made, is an Australian

resident on the day on which the claim is lodged.

Note: For

Australian resident see section 5G.

63P Claim may be withdrawn

(1) A claimant for an essential medical equipment payment or a person

on behalf of a claimant may withdraw a claim that has not been

determined.

(2) A claim that is withdrawn is taken to have not been made.

(3) A withdrawal may be made either orally or by document lodged at

an office of the Department in Australia in accordance with

section 5T.

Oral withdrawal of a claim

(4) An oral withdrawal of a claim must be made to a person in an

office of the Department in Australia.

Acknowledgement of oral withdrawal of a claim

(5) As soon as practicable after receiving an oral withdrawal of a

claim, the Secretary must give the claimant an acknowledgement

notice in writing stating that:

(a) an oral withdrawal of the claim was made; and

(b) the claimant, or a person on behalf of the claimant, may,

within 28 days from the day the acknowledgement notice is

given, request the Secretary to treat the withdrawal as if it

had not been made.

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

176 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Reactivating the withdrawn claim

(6) If, within 28 days from the day on which the Secretary gave the

acknowledgement notice, a claimant, or a person on behalf of a

claimant, requests the Secretary to treat the oral withdrawal of the

claim as if it had not been made, the oral withdrawal is taken not to

have been made.

Note:

A request made under paragraph (5)(b) has the effect of reactivating

the claim. In particular, the commencement day of the claim stays the

same.

Subdivision D--Investigation of claim

63Q Secretary to investigate claim and submit it to Commission

(1) If a person makes a proper claim for an essential medical

equipment payment, the Secretary must investigate the matters to

which the claim relates.

(2) When the investigation is completed, the Secretary must submit the

claim to the Commission for consideration and determination.

(3) When the claim is submitted to the Commission it must be

accompanied by:

(a) any evidence supplied by the claimant in support of the

claim; and

(b) any documents or other evidence obtained by the Department

in the course of the investigation that are relevant to the

claim; and

the Department that are relevant to the claim.

Subdivision E--Consideration and determination of claim

63R Duties of Commission in relation to claim

(1) When the claim is submitted to the Commission, the Commission

must consider all matters that are, in the Commission's opinion,

relevant to the claim and must then determine the claim.

(2) In considering the claim, the Commission must:

(a) satisfy itself with respect to; or

Essential medical equipment payment Schedule 7

Amendment of the Veterans' Entitlements Act Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 177

(b)

determine;

(as the case requires) all matters relevant to the determination of

the claim.

(3) Without limiting subsection (1), the Commission, in considering

the claim, must consider:

(a) the evidence submitted with the claim under section 63Q; and

(b) any further evidence subsequently submitted to the

Commission in relation to the claim.

Note:

A claimant may apply to the Commission for review of a

determination made under this section (see section 64A).

63S Entitlement determination

The Commission must determine that a person is entitled to an

essential medical equipment payment if the Commission is

satisfied that the person is eligible for the payment.

63T Date of effect of determination

A determination under section 63S takes effect, on the day that the

determination is made or on such later day or earlier day as is

specified in the determination.

Division 4--Review of decisions

64A Review of certain decisions

A person who is dissatisfied with a decision of the Commission in

relation to a clean energy payment may request the Commission to

review the decision.

64B Application for review

(1) A request for review of a decision under section 64A must:

(a) be made within 3 months after the person seeking review was

notified of the decision; and

(b) set out the grounds on which the request is made; and

(d) be lodged at an office of the Department in Australia in

accordance with section 5T.

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

178 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(2) A request lodged in accordance with section 5T is taken to have

been made on a day determined under that section.

(3) If a request for review of a decision is made in accordance with

subsection (1), the Commission must review the decision.

(4) If the Commission has delegated its powers under this section to

the person who made the decision under review, that person must

not review the decision.

64C Commission's powers where request for review

(1) If the Commission reviews a decision under this Part, the

Commission must affirm the decision or set it aside.

(2) If the Commission sets the decision aside it must, subject to

subsection (3), substitute a new decision in accordance with this

Act.

(3) If the decision set aside is a decision that a person ceases to be

entitled to a clean energy payment, the Commission need not

substitute another decision.

Note:

For the Commission's evidence gathering powers, see section 64G.

64D Date of effect of certain review decisions

(1) If the Commission sets aside a decision and substitutes for it a

decision that a person is entitled to a clean energy payment, the

substituted decision takes effect from a date specified by the

Commission.

(2) The date specified by the Commission must not be earlier than the

date from which, had the Commission determined that the person

is entitled to a clean energy payment, such a determination could

have taken effect.

64E Commission must make written record of review decision and

reasons

(1) When the Commission reviews a decision under this Part it must

make a written record of its decision upon review.

(2) The written record must include a statement that:

Essential medical equipment payment Schedule 7

Amendment of the Veterans' Entitlements Act Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 179

(a) sets out the Commission's findings on material questions of

fact; and

(b) refers to the evidence or other material on which those

findings are based; and

64F Person who requested review to be notified of decision

(1) When the Commission affirms or sets aside a decision under this

Part it must give the person who requested the review of the

decision:

(a) a copy of the Commission's decision; and

(b) subject to subsection (2), a copy of the statement about the

decision referred to in subsection 64E(2); and

Appeals Tribunal for review of the Commission's decision--

a statement giving the person particulars of that right.

(2) If the statement referred to in paragraph (1)(b) contains any matter

that, in the opinion of the Commission:

(a) is of a confidential nature; or

(b) might, if communicated to the person who requested review,

be prejudicial to his or her physical or mental health or

well-being;

the copy given to the person is not to contain that matter.

64G Powers of Commission to gather evidence

(1) The Commission or the Commission's delegate may, in reviewing

a decision under this Part:

(a) take evidence on oath or affirmation for the purposes of the

review; and

(b) adjourn a hearing of the review from time to time.

(2) The presiding member of the Commission or the Commission's

delegate may, for the purposes of the review:

(a) summon a person to appear at a hearing of the review to give

evidence and to produce such documents (if any) as are

referred to in the summons; and

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

180 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) require a person appearing at a hearing of the review for the

purpose of giving evidence either to take an oath or to make

an affirmation; and

(3) The person who applied for the review under this Division is a

competent and compellable witness upon the hearing of the review.

(4) The oath or affirmation to be taken or made by a person for the

purposes of this section is an oath or affirmation that the evidence

that the person will give will be true.

(5) The Commission's power under paragraph (1)(a) to take evidence

on oath or affirmation:

(a) may be exercised on behalf of the Commission by:

(i) the presiding member or the Commission's delegate; or

(ii) another person (whether a member or not) authorised by

the presiding member or the Commission's delegate;

and

(b) may be exercised within or outside Australia; and

Commission.

(6) Where a person is authorised under subparagraph (5)(a)(ii) to take

evidence for the purposes of a review, the person has:

(a) all the powers of the Commission under subsection (1); and

(b) all the powers of the presiding member under subsection (2);

for the purposes of taking that evidence.

(7) In this section:

Commission's delegate means a person to whom the Commission

has delegated its powers under section 64B and who is conducting

the review in question.

64H Withdrawal of request for review

(1) A person who requests a review under section 64A may withdraw

the request at any time before it is determined by the Commission.

(2) To withdraw the request, the person must give written notice of

withdrawal to the Secretary and the notice must be lodged at an

Essential medical equipment payment Schedule 7

Amendment of the Veterans' Entitlements Act Part 2

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 181

office of the Department in Australia in accordance with

section 5T.

(3) Subject to section 64B, a person who withdraws a request for

review may subsequently make another request for review of the

same decision.

Note:

Section 64B provides that a person who wants to request a review of a

decision must do so within 3 months after the person has received

notice of the decision.

24 Paragraph 127(1)(b)

Omit "or recreation transport allowance", substitute ", recreation

transport allowance or essential medical equipment payment".

25 After subsection 175(2)

Insert:

(2A) If the Commission, under section 64C, affirms a decision of the

Commission referred to in that section or sets it aside and

substitutes another decision, a person may apply to the

Administrative Appeals Tribunal for review of the decision so

affirmed or substituted.

26 Subsection 175(2AAA)

Omit "(2AAA)", substitute "(2B)".

27 Subsection 175(2AAAA)

Omit "(2AAAA)", substitute "(2C)".

28 Subsection 175(2AA)

Omit "(2AA)", substitute "(2D)".

29 Subsection 175(2A)

Omit "(2A)", substitute "(2E)".

30 Subsection 175(2A)

Omit "subsection (1A), (2), (2AAAA), (2AAA) or (2AA)", substitute

"any of subsections (1A) to (2D)".

31 Paragraph 176(3)(a)

Schedule 7 Essential medical equipment payment

Part 2 Amendment of the Veterans' Entitlements Act

182 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Omit "(2AA)", substitute "(2A), (2D)".

32 Paragraph 176(3)(a)

After "57E,", insert "64F,".

33 Subsections 177(5A) and (5C)

Omit "175(2AA)", substitute "175(2D)".

34 After section 198D

Insert:

198E Variation of amount of essential medical equipment payment

(1) This section applies to the dollar amount mentioned in section 63G

(essential medical equipment payment).

(2) That dollar amount, for an indexation day on which the indexation

factor is greater than 1, is replaced by the amount that is worked

out using the following formula:

Dollar amount on the day

Indexation factor

before the indexation day

for the indexation day

�

(3)

The

indexation factor for an indexation day is the number worked

out using the following formula:

Indexation number for the most recent December quarter

before the indexation day

Highest index number for an earlier December quarter

(but not before December 2011)

(4) The indexation factor is to be calculated to 3 decimal places, but

increased by 0.001 if the fourth decimal place is more than 4.

(5) If an amount worked out under subsection (2) is not a multiple of a

dollar, the amount is to be rounded to the nearest multiple of a

dollar (rounding up in the case of 50 cents).

(6) In this section:

indexation day means 1 July 2013 and each later 1 July.

Essential medical equipment payment Schedule 7

Application and transitional provisions Part 3

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 183

Part 3--Application and transitional provisions

35 Application

The amendments made by this Schedule apply in relation to the

2012-13 and later income years.

36 Transitional

(1)

A person may make a claim for an essential medical equipment

payment under the Social Security Act 1991 or the Veterans'

Entitlements Act 1986 for the 2012-13 income year on or after 18 June

2012.

Note:

A claim for an essential medical equipment payment for the 2012-13 income year must

be made before 1 July 2013 (see paragraph 917B(3)(a) of the Social Security Act 1991

and paragraph 63B(3)(a) of the Veterans' Entitlements Act 1986).

(2)

For the purposes of the Social Security Act 1991, the Social Security

(Administration) Act 1999 and the Veterans' Entitlements Act 1986, a

person who makes a claim for the 2012-13 income year before 1 July

2012 is taken to have made the claim on 1 July 2012.

Schedule 8 Single income family supplement

184 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Schedule 8--Single income family supplement

A New Tax System (Family Assistance) Act 1999

1 Subsection 3(1) (at the end of the definition of family

assistance)

Add:

; or (f) single income family supplement.

2 Subsection 3(1) (at the end of the definition of FTB child)

Add:

; and (e) in relation to single income family supplement--has the

meaning given in Subdivision A of Division 1 of Part 3 but,

in applying Subdivision D of that Division to that supplement

in a case where a claim for that supplement is required for

there to be an entitlement to be paid that supplement, a

reference in Subdivision D of that Division to a claim for

payment of family tax benefit is to be read as a reference to a

claim for payment of that supplement.

3 Subsection 3(1)

Insert:

single income family supplement means the supplement for which

an individual is eligible under Division 6 of Part 3.

4 At the end of Part 3

Add:

Division 6--Eligibility for single income family supplement

Subdivision A--Eligibility of individuals for single income

family supplement in normal circumstances

57G When an individual is eligible for single income family

supplement in normal circumstances

(1) An individual is eligible for single income family supplement if:

(a) the individual has at least one qualifying child; and

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 185

(b)

the

individual:

(i) is an Australian resident; or

(ii) is a special category visa holder residing in Australia; or

(iii) satisfies subsection (2); and

(disregarding section 63A); and

(d) the individual's rate of single income family supplement,

worked out under Division 4B of Part 4, is greater than nil.

When individual satisfies this subsection

(2) An individual satisfies this subsection if:

(a) the individual is the holder of a visa determined by the

Minister for the purposes of subparagraph 729(2)(f)(v) of the

Social Security Act 1991; and

(b)

either:

(i) the individual is in Australia; or

(ii) the individual is temporarily absent from Australia for a

period not exceeding 13 weeks and the absence is an

allowable absence in relation to special benefit within

the meaning of Part 4.2 of that Act.

Qualifying child

(3) For the purposes of this Division, an individual is a qualifying

child of another individual (the adult) if:

(a) the individual is an FTB child of the adult and the individual

is not an absent overseas FTB child (disregarding

section 63A); or

(b) the following apply:

(i) the individual is receiving disability support pension

under Part 2.3 of the Social Security Act 1991 and the

individual's maximum basic rate is worked out under

item 1 or 3 of Table B in point 1066A-B1 or item 1 or 3

of Table B in point 1066B-B1 of that Act;

(ii) apart from subparagraph (i), the individual would be an

FTB child of the adult and would not be an absent

overseas FTB child (disregarding section 63A); or

Schedule 8 Single income family supplement

186 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(i) the individual is receiving youth allowance and the

individual's maximum basic rate is worked out under

item 1 or 2 of Table BA in point 1067G-B2 or item 1 of

Table BC in point 1067G-B4 of the Social Security Act

1991;

(ii) apart from subparagraph (i), the individual would be an

FTB child of the adult and would not be an absent

overseas FTB child (disregarding section 63A); or

(d) the following apply:

(i) the individual is receiving special benefit under

Part 2.15 of the Social Security Act 1991;

(ii) if youth allowance were payable to the individual, the

individual's maximum basic rate would be worked out

under item 1 or 2 of Table BA in point 1067G-B2 or

item 1 of Table BC in point 1067G-B4 of that Act;

(iii) apart from subparagraph (i), the individual would be an

FTB child of the adult and would not be an absent

overseas FTB child (disregarding section 63A); or

(e) the following apply:

(i) the individual, or someone on behalf of the individual,

is receiving instalments under the scheme known as the

ABSTUDY scheme that include an amount identified as

living allowance that is being paid at the standard (at

home) rate;

(ii) the individual is a dependent student under the scheme

and is aged 16 or more and under 21;

(iii) apart from subparagraph (i), the individual would be an

FTB child of the adult and would not be an absent

overseas FTB child (disregarding section 63A); or

(f) the following apply:

(i) the individual, or someone on behalf of the individual,

is receiving education allowance under section 3.3 of

the Veterans' Children Education Scheme;

(ii) the individual is aged 16 or more;

(iii) apart from subparagraph (i), the individual would be an

FTB child of the adult and would not be an absent

overseas FTB child (disregarding section 63A); or

(g) the following apply:

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 187

(i) the individual, or someone on behalf of the individual,

is receiving education allowance under section 3.3 of

the Military Rehabilitation and Compensation Act

Education and Training Scheme;

(ii) the individual is aged 16 or more;

(iii) apart from subparagraph (i), the individual would be an

FTB child of the adult and would not be an absent

overseas FTB child (disregarding section 63A).

57GA Only one member of a couple eligible for single income family

supplement

(1) Subject to this Division, for any period when 2 individuals who are

members of a couple would otherwise be eligible at the same time

for single income family supplement in respect of one or more

qualifying children, only one member is eligible.

(2) The member who is eligible is the one determined by the Secretary

to be eligible.

57GB Extension of meaning of qualifying child in a blended family

case

(1) This section applies if:

(a) 2 individuals are members of the same couple; and

(b) either or both of the individuals have a child from another

relationship (whether before or after the 2 individuals became

members of that couple).

(2) While the 2 individuals are members of that couple, each child who

is a qualifying child of one member of the couple is taken also to

be a qualifying child of the other member of the couple.

57GC Eligibility for single income family supplement of members of

a couple in a blended family

(1) If the Secretary is satisfied that:

(a) 2 individuals who are members of the same couple (person A

and person B) would each be eligible for single income

family supplement in respect of 2 or more qualifying children

during a period but for subsection 57GA(1); and

Schedule 8 Single income family supplement

188 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) at least one of the children is a child of a previous

relationship of person A; and

(i) a child of the relationship between person A and person

B; or

(ii) a child of a previous relationship of person B;

the Secretary may:

(d) determine that person A and person B are both eligible for

single income family supplement for the children for the

period; and

(e) determine person A's and person B's percentage of the single

income family supplement for the children.

(2) The Secretary cannot make a determination under subsection (1)

for a past period if person A or person B has been paid single

income family supplement for the period.

(3) For the purposes of this section:

(a) a qualifying child of an individual is a child of a previous

relationship of an individual who is a member of a couple if

the child is an immediate child of that individual but not of

the individual's partner; and

(b) a child is a child of the relationship of 2 individuals who are

members of a couple if the child is an immediate child of

both members of the couple; and

the individual if:

(i) the child is the natural child, adopted child or

relationship child of the individual; or

(ii) the individual is legally responsible for the child.

57GD Eligibility for single income family supplement of separated

members of a couple for period before separation

If the Secretary is satisfied that:

(a) 2 individuals are not members of the same couple (person A

and person B); and

(b) during a period in the past when person A and person B were

members of the same couple, they had a qualifying child or

children; and

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 189

both be eligible for single income family supplement for the

qualifying child or children for that period;

the Secretary may:

(d) determine that person A and person B are both eligible for

single income family supplement for the child or children for

that period; and

(e) determine person A's and person B's percentage of the single

income family supplement for the child or children for that

period.

Subdivision B--Eligibility of individuals for single income

family supplement where death occurs

57GE Continued eligibility for single income family supplement if a

qualifying child dies

(1) This section applies if:

(a) an individual is eligible for single income family supplement

(except under section 57GG) in respect of one qualifying

child; and

(b) that child dies.

Individual remains eligible for single income family supplement for

14 weeks after the death of the child

(2) The individual is eligible for single income family supplement, at a

rate worked out under Division 4B of Part 4, for each day in the

period of 14 weeks beginning on the day the child died. This

subsection has effect subject to subsection (3) of this section and to

section 57GF.

14 weeks reduced in certain circumstances

(3) The period for which the individual is eligible for single income

family supplement under subsection (2) does not include:

(a) if the child was aged 21 and undertaking full-time study or

studying overseas full-time when the child died--any day on

which the child would have been aged 22 if the child had not

died; or

Schedule 8 Single income family supplement

190 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) in any other case--any day on which the child would have

been aged 21 if the child had not died.

57GF Eligibility for a single amount of single income family

supplement if a qualifying child dies

If, apart from this section, the period for which an individual is

eligible for single income family supplement under subsection

57GE(2) extends over 2 income years:

(a) the individual is eligible for a single amount of single income

family supplement for the period falling in the second of

those income years worked out under Division 4B of Part 4

on the assumption that:

(i) the individual's taxable income for the period falling in

the second of those income years is the same as the

individual's taxable income for the first of those income

years; and

(ii) the individual's partner's taxable income for the period

falling in the second of those income years is the same

as the individual's partner's taxable income for the first

of those income years; and

(b) the period for which the individual is eligible for single

income family supplement under subsection 57GE(2) does

not include the period falling in the second of those income

years.

57GG Eligibility for single income family supplement if an eligible

individual dies

Eligibility other than because of the death of a qualifying child

(1)

If:

(a) an individual is eligible for an amount (the subject amount)

of single income family supplement (except because of

section 57GE or 57GF applying in relation to the death of a

qualifying child); and

(b) the individual dies; and

paid to the individual (whether or not a claim under Part 3 of

the Family Assistance Administration Act had been made);

and

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 191

(d) another individual makes a claim under that Part for payment

of single income family supplement because of the death of a

person, stating that he or she wishes to become eligible for so

much of the subject amount as does not relate to any period

before the beginning of the income year preceding the

income year in which the individual died; and

(e) the Secretary considers that the other individual ought to be

eligible for that much of the subject amount;

the other individual is eligible for that much of the subject amount

and no-one else is, or can become, eligible for or entitled to be paid

any of the subject amount.

Eligibility because of the death of a qualifying child

(2)

If:

(a) an individual dies; and

(b)

either:

(i) before the individual's death, the individual was eligible

for an amount (the subject amount) of single income

family supplement under section 57GE or 57GF in

relation to the death of a qualifying child, and the

subject amount had not been paid to the individual

(whether or not a claim under Part 3 of the Family

Assistance Administration Act had been made); or

(ii) the individual died at the same time as the qualifying

child, and would have been so eligible for the subject

amount if the individual had not died; and

of single income family supplement because of the death of a

person, stating that he or she wishes to become eligible for so

much of the subject amount as does not relate to any period

before the beginning of the income year preceding the

income year in which the individual died; and

(d) the Secretary considers that the other individual ought to be

eligible for that much of the subject amount;

the other individual is eligible for that much of the subject amount

and no-one else is, or can become, eligible for or entitled to be paid

any of the subject amount.

5 After Division 4A of Part 4

Schedule 8 Single income family supplement

192 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Insert:

Division 4B--Rate of single income family supplement

84G Rate of single income family supplement

(1) An individual's rate of single income family supplement is worked

out in accordance with this section.

(2) For the purposes of this section:

(a)

the

main income earner is:

(i) if the individual is not a member of a couple--the

individual; or

(ii) if the individual is a member of a couple--the member

of the couple whose taxable income for the income year

is the highest (or the individual if those taxable incomes

are equal); and

(b) if the individual is a member of a couple--the low income

earner is the member of the couple whose taxable income for

the income year is the lowest (or the individual's partner if

those taxable incomes are equal).

Annual rate

(3) An individual's annual rate of single income family supplement is

nil if the main income earner's taxable income for the income year

(rounded down to the nearest dollar) is:

(a) $68,000 or less; or

(b) $150,000 or more.

(4) An individual's annual rate of single income family supplement is

worked out as follows if the main income earner's taxable income

for the income year (rounded down to the nearest dollar) is more

than $68,000 and less than $150,000:

Method statement

Step 1. Work out the main income earner's taxable income

(rounded down to the nearest dollar).

Step 2. Reduce the amount at step 1 by $68,000.

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 193

Step 3. Multiply the amount worked out at step 2 by 0.025.

Step 4. If the amount at step 3 is less than or equal to $300, the

provisional component is the amount at step 3.

Step 5. If the amount at step 3 is more than $300, the provisional

component is:

(a)

if the main income earner's taxable income

exceeds $80,000 and is less than or equal to

$120,000--$300; or

(b)

if the main income earner's taxable income

exceeds $120,000--$300 less $0.01 for each dollar

of the excess.

Step 6. If the individual is not a member of a couple--the

individual's annual rate of single income family

supplement is the provisional component.

Step 7. If the individual is a member of a couple--the

individual's annual rate of single income family

supplement is the provisional component less any

reduction under step 8.

Step 8. If the low income earner's taxable income for the income

year (rounded down to the nearest dollar) exceeds

$16,000, the provisional component is reduced (but not

below nil) by $0.15 for each dollar of the excess.

Daily rate

(5) The daily rate of single income family supplement is the annual

rate divided by 365 and rounded to the nearest cent (rounding 0.5

cents upwards). If the daily rate before rounding is above nil and

below half a cent, round up to 1 cent.

84GA Sharing single income family supplement between members

of a couple in a blended family

If the Secretary determines under section 57GC an individual's

percentage of the single income family supplement for qualifying

Schedule 8 Single income family supplement

194 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

children of the individual, the individual's annual rate of single

income family supplement is that percentage of the rate that would

otherwise apply.

84GB Sharing single income family supplement between separated

members of a couple for period before separation

If the Secretary determines under section 57GD an individual's

percentage of the single income family supplement for a qualifying

child or children of the individual for a period, the individual's

annual rate of single income family supplement for that period is

that percentage of the rate that would otherwise apply for the

period.

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

1999

6 Subsection 3(1) (at the end of the definition of TFN claim

person)

Add:

; or (d) in relation to a claim for single income family supplement

under Division 4E of Part 3, means:

(i) the claimant; and

(ii) if the claim is for payment of single income family

supplement for a past period--any partner of the

claimant during the past period.

7 Subsection 3(1) (at the end of the definition of TFN

determination person)

Add:

; or (c) in relation to single income family supplement and a

determination under which the claimant is entitled to be paid

single income family supplement for a past period--the

claimant or any partner of the claimant during the past

period.

8 Subsection 3(1) (at the end of paragraph (c) of the

definition of TFN substitution person)

Add "or".

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 195

9 Subsection 3(1) (after paragraph (c) of the definition of TFN

substitution person)

Insert:

(d) by an individual for payment of single income family

supplement by single payment/in substitution because of the

death of another individual based on eligibility for an amount

of single income family supplement under section 57GG of

the Family Assistance Act;

10 After Division 4D of Part 3

Insert:

Division 4E--Single income family supplement

Subdivision A--Making claims

65K Need for a claim

(1) Subject to subsection (2), the only way that an individual can

become entitled to be paid single income family supplement is to

make a claim in accordance with this Division.

(2)

If:

(a) in relation to a period in an income year:

(i) a determination under section 16 or 17 is in force in

respect of an individual as a claimant; or

(ii) a determination under section 18 is in force in respect of

an individual because the Secretary is satisfied that the

individual is eligible for family tax benefit under

section 32 of the Family Assistance Act; and

(b) the individual's rate of family tax benefit payable under the

determination in relation to that period takes into account one

or more FTB children of the individual;

the individual is not required to make a claim for single income

family supplement in relation to that period.

65KA How to claim

(1) An individual (a claimant) may make a claim:

Schedule 8 Single income family supplement

196 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(a) for payment of single income family supplement for a past

period; or

(b) for payment of single income family supplement by single

payment/in substitution because of the death of another

individual.

Form etc. of claim

(2) To be effective:

(a) a claim must:

(i) be made in a form and manner; and

(ii) contain any information; and

(iii) be accompanied by any documents;

required by the Secretary; and

(b) in the case of a claim for payment of single income family

supplement for a past period--the tax file number

requirement in section 65KB must be satisfied in relation to

the claim; and

supplement in substitution because of the death of another

individual--the tax file number requirement in section 65KC

must be satisfied in relation to the claim.

65KB Tax file number requirement to be satisfied for claims for a

past period

(1) This section sets out the tax file number requirement that must be

satisfied in relation to a claim for the purposes of paragraph

65KA(2)(b) (which states what is required for certain claims to be

effective).

(2) Subject to subsection (7), the requirement is that a statement of one

of the kinds set out in subsections (3), (4) and (5) must be made in

relation to each TFN claim person.

Statement of tax file number

(3) The first kind of statement that can be made is a statement of the

TFN claim person's tax file number. Regardless of who the TFN

claim person is, this kind of statement can be made by the claimant

only.

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 197

Statement that TFN claim person does not know what his or her tax

file number is etc.

(4) The second kind of statement that can be made is a statement by

the TFN claim person that the person:

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

(b) has asked the Commissioner of Taxation to inform the person

of his or her tax file number; and

Secretary:

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

(ii) if the person has a tax file number--that number.

Statement that an application for a tax file number is pending

(5) The third kind of statement that can be made is a statement by the

TFN claim person that the person:

(a) has an application for a tax file number pending; and

(b) authorises the Commissioner of Taxation to tell the

Secretary:

(i) if a tax file number is issued to the person--that

number; or

(ii) if the application is refused--that the application has

been refused; or

(iii) if the application is withdrawn--that the application has

been withdrawn.

How statement to be given

(6) A statement made by the claimant must be in the claim. A

statement made by any other TFN claim person must be in a

document, in a form approved by the Secretary, that the claimant

gives the Secretary together with the claim.

Exemption from tax file number requirement

(7) The Secretary may determine that the requirement in subsection (2)

does not apply to a TFN claim person if:

(a) the person is, or was, the claimant's partner; and

(b) the claimant cannot obtain from the person:

(i) the person's tax file number; or

Schedule 8 Single income family supplement

198 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(ii) a statement by the person under subsection (4) or (5).

65KC Tax file number requirement to be satisfied for claim in

substitution because of the death of another individual

(1) This section sets out the tax file number requirement that must be

satisfied in relation to a claim for the purposes of paragraph

65KA(2)(c) (which states what is required for claims in

substitution because of the death of another individual to be

effective).

(2) Subject to subsections (7) and (8), the requirement is that a

statement of one of the kinds set out in subsections (3), (4) and (5)

must be made in relation to each TFN substitution person.

Statement of tax file number

(3) The first kind of statement that can be made is a statement of a

TFN substitution person's tax file number. Regardless of who the

TFN substitution person is, this kind of statement can be made by

the claimant only.

Statement that TFN substitution person does not know what his or

her tax file number is etc.

(4) The second kind of statement that can be made is a statement by a

TFN substitution person who was the deceased individual's partner

during the period in respect of which the payment is claimed to the

effect that the TFN substitution person:

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

(b) has asked the Commissioner of Taxation to inform the person

of his or her tax file number; and

Secretary:

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

(ii) if the person has a tax file number--that number.

Statement that an application for a tax file number is pending

(5) The third kind of statement that can be made is a statement by a

TFN substitution person who was the deceased individual's partner

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 199

during the period in respect of which the payment is claimed to the

effect that the TFN substitution person:

(a) has an application for a tax file number pending; and

(b) authorises the Commissioner of Taxation to tell the

Secretary:

(i) if a tax file number is issued to the person--that

number; or

(ii) if the application is refused--that the application has

been refused; or

(iii) if the application is withdrawn--that the application has

been withdrawn.

How statement to be given

(6) A statement made by the claimant must be made in the claim. A

statement made by a TFN substitution person must be in a

document, in a form approved by the Secretary, that the claimant

gives the Secretary together with the claim.

Exemption from tax file number requirement

(7) The Secretary may determine that the requirement in subsection (2)

does not apply in relation to a TFN substitution person if the

claimant does not know the person's tax file number.

(8) The Secretary may determine that the requirement in subsection (2)

does not apply in relation to a TFN substitution person if the

claimant cannot obtain a statement referred to in subsection (4) or

(5) in respect of the person.

65KD Restrictions on claims for payment for a past period

Restriction where previous claim

(1) A claim for payment of single income family supplement for a past

period is not effective if the claimant has previously made a claim

for payment of single income family supplement for any of the past

period (whether or not the claim has yet been determined).

Other restrictions

(2) A claim for payment of single income family supplement for a past

period is not effective if:

Schedule 8 Single income family supplement

200 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(a) the period does not fall wholly within one income year; or

(b) the period does fall wholly within one income year but the

claim is made after the end of the 2 income years

immediately following that income year.

(3) A claim for payment of single income family supplement for a past

period is not effective if the period occurs in the income year in

which the claim is made.

65KE Restrictions on bereavement claims

Restriction where previous claim

(1) A claim for payment of single income family supplement by single

payment/in substitution because of the death of another individual

is not effective if the claimant has previously made a claim for

payment of single income family supplement because of the death

of that individual (whether or not the claim has yet been

determined).

Other restrictions

(2) If a claim for payment of single income family supplement by

single payment/in substitution because of the death of another

individual is based on eligibility for an amount of single income

family supplement under section 57GF or 57GG of the Family

Assistance Act, the claim is not effective if it is made after the end

of the income year following the one in which the death occurred.

65KF Claim may be withdrawn or varied

(1) A claimant may withdraw or vary a claim before the claim is

determined.

(2) The claimant may only do so in a manner determined by the

Secretary.

(3) If a claim is withdrawn, it is taken never to have been made.

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 201

Subdivision B--Determination of claims and payment of single

income family supplement

65KG Secretary must determine claim

If an effective claim is made, the Secretary must determine the

claim in accordance with this Subdivision. If a claim is not

effective, it is taken not to have been made.

65KH Restriction on determining claim where income tax

assessment not made

(1) If, in relation to a claim for payment of single income family

supplement made by an individual:

(a) the claim is for payment of that supplement for a past period;

and

(b) the past period falls in an income year (the past period

income year) that is one of the 2 income years before the one

in which the claim is made; and

the Secretary can only determine the claim if each assessment

concerned has been made.

(2) This subsection applies if:

(a) the claimant is required to lodge an income tax return for the

past period income year; and

(b) at the time the claim is made, an assessment has not been

made under the Income Tax Assessment Act 1936 of the tax

payable on the claimant's taxable income for the past period

income year.

(3) This subsection applies if:

(a) a person is the claimant's partner at any time during the past

period; and

(b) that person is required to lodge an income tax return for the

past period income year; and

made under the Income Tax Assessment Act 1936 of the tax

payable on that person's taxable income for the past period

income year.

Schedule 8 Single income family supplement

202 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

65KI Restriction on determining claim where income tax return not

lodged

(1) If, in relation to a claim for payment of single income family

supplement made by an individual:

(a) the claim is for payment of that supplement for a past period;

and

(b) the past period falls in an income year (the past period

income year) that is one of the 2 income years before the one

in which the claim is made; and

then the claim is taken never to have been made.

(2) This subsection applies if:

(a) the claimant is required to lodge an income tax return for the

past period income year; and

(b) the claimant has not lodged the return before the end of the 2

income years immediately following the past period income

year.

(3) This subsection applies if:

(a) a person is the claimant's partner at any time during the past

period; and

(b) that person is required to lodge an income tax return for the

past period income year; and

income years immediately following the past period income

year.

65KJ Restriction on determining claim where tax file number not

provided etc.

Statement that TFN claim person or TFN substitution person does

not know what his or her tax file number is etc.

(1)

If:

(a) a TFN claim person makes a statement of the kind set out in

subsection 65KB(4); or

(b) a TFN substitution person makes a statement of the kind set

out in subsection 65KC(4);

the Secretary can only determine the claim concerned if:

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 203

Taxation tells the Secretary the person's tax file number; or

(d) 28 days pass after the claim is made without the

Commissioner of Taxation telling the Secretary that the

person has no tax file number.

Statement that an application for a tax file number is pending

(2)

If:

(a) a TFN claim person makes a statement of the kind set out in

subsection 65KB(5); or

(b) a TFN substitution person makes a statement of the kind set

out in subsection 65KC(5);

the Secretary can only determine the claim concerned if:

Taxation tells the Secretary the person's tax file number; or

(d) 28 days pass after the claim is made without the

Commissioner of Taxation telling the Secretary that:

(i) the person has not applied for a tax file number; or

(ii) an application by the person for a tax file number has

been refused; or

(iii) the person has withdrawn an application for a tax file

number.

(3) If, after the 28 days mentioned in subsection (1) or (2) have passed,

the Secretary cannot, because of that subsection, determine the

claim, the claim is taken never to have been made.

65KK Determination of past period entitlement claim

If:

(a) the claim is one for payment of single income family

supplement for a past period; and

(b) the Secretary is satisfied that the claimant was eligible for

single income family supplement:

(i) for the whole of the period in accordance with

Subdivision A of Division 6 of Part 3 of the Family

Assistance Act; or

(ii) for part of the period in accordance with that

Subdivision and for the remainder of the period in

accordance with section 57GE of that Act;

Schedule 8 Single income family supplement

204 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

the Secretary must determine that the claimant is entitled to be paid

single income family supplement for the past period.

65KL Determination of bereavement entitlement claim

If:

(a) the claim is one for payment of single income family

supplement by single payment/in substitution because of the

death of another individual; and

(b) the Secretary is satisfied that the claimant is eligible for

single income family supplement under section 57GF or

57GG of the Family Assistance Act;

the Secretary must determine that the claimant is entitled to be paid

the single income family supplement.

65KM Determination that no entitlement

If the Secretary is not satisfied as mentioned in section 65KK or

65KL, the Secretary must determine that the claimant is not

entitled to be paid single income family supplement for the past

period or because of the death of the other individual, as the case

requires.

65KN When determination is in force

A determination under this Division comes into force when it is

made and remains in force at all times afterwards.

65KO Notice of determination

(1) The Secretary must give notice of a determination under this

Subdivision to the claimant, stating:

(a) whether the claimant is entitled to be paid single income

family supplement under the determination; and

(b) if the claimant is so entitled--the amount of the supplement

and how it is to be paid; and

in the manner set out in Part 5.

(2) The determination is not ineffective by reason only that the

requirements of subsection (1) are not complied with.

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 205

65KP Payment of single income family supplement--no claim

required

(1) Subject to this section, if an individual is not required to make a

claim for single income family supplement in relation to a period

(the past period) in an income year (the past period income year),

the Secretary must pay any amount of single income family

supplement the individual is eligible for in relation to that past

period:

(a) on the day that the Secretary considers to be the earliest day

on which it is reasonably practicable for the amount to be

paid; and

(b) in such manner as the Secretary considers appropriate.

Note:

Subsection 65K(2) sets out when a claim for single income family

supplement is not required.

(2) If either or both of the following apply:

(a) the individual is required to lodge an income tax return for

the past period income year;

(b) the following apply:

(i) a person is the individual's partner at any time during

the past period;

(ii) that person is required to lodge an income tax return for

the past period income year;

then the amount of single income family supplement cannot be

paid to the individual unless, in relation to each person who is

required to lodge an income tax return for that income year, an

assessment has been made under the Income Tax Assessment Act

1936 of the tax payable on that person's taxable income for that

income year.

(3) If either or both of the following apply:

(a) the individual is required to lodge an income tax return for

the past period income year, but the individual has not lodged

the return before the end of the 2 income years immediately

following the past period income year;

(b) the following apply:

(i) a person is the individual's partner at any time during

the past period;

(ii) that person is required to lodge an income tax return for

the past period income year;

Schedule 8 Single income family supplement

206 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(iii) that person has not lodged the return before the end of

the 2 income years immediately following the past

period income year;

then the amount of single income family supplement is not to be

paid to the individual.

(4) This section is subject to Part 4, Division 3 of Part 8B and

sections 225 and 226.

65KQ Payment of single income family supplement--claim required

(1) If an individual is entitled to be paid an amount of single income

family supplement under a determination on a claim for payment

of single income family supplement:

(a) for a past period; or

(b) by single payment/in substitution because of the death of

another individual;

the Secretary must pay the amount to the individual at such time

and in such manner as the Secretary considers appropriate.

(2) This section is subject to Part 4, Division 3 of Part 8B and

sections 225 and 226.

65KR Secretary's power to request tax file numbers

(1) If a determination is in force under which the claimant is entitled to

be paid single income family supplement for a past period, the

Secretary may request the claimant to give the Secretary, within 28

days of the request being made, a written statement, in relation to a

specified TFN determination person, of whichever of the kinds set

out in subsections (2), (3) and (4) the claimant chooses.

Statement of tax file number

(2) The first kind of statement that can be made is a statement of the

TFN determination person's tax file number. Regardless of who

the TFN determination person is, this kind of statement can be

made by the claimant only.

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 207

Statement that TFN person does not know what his or her tax file

number is etc.

(3) The second kind of statement that can be made is a statement by

the TFN determination person that the person:

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

(b) has asked the Commissioner of Taxation to inform the person

of his or her tax file number; and

Secretary:

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

(ii) if the person has a tax file number--that number.

Statement that an application for a tax file number is pending

(4) The third kind of statement that can be made is a statement by the

TFN determination person that the person:

(a) has an application for a tax file number pending; and

(b) authorises the Commissioner of Taxation to tell the

Secretary:

(i) if a tax file number is issued to the person--that

number; or

(ii) if the application is refused--that the application has

been refused; or

(iii) if the application is withdrawn--that the application has

been withdrawn.

65KS Variation of past period determinations where failure to

provide tax file number

Non-compliance with request

(1)

If:

(a) the Secretary makes a request under subsection 65KR(1); and

(b) the claimant does not comply with the request within 28 days

of the request being made;

then, subject to subsection (2), the consequence in subsection (7)

applies.

Schedule 8 Single income family supplement

208 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Exemption from request under subsection 65KR(1)

(2) The Secretary may determine that the consequence in

subsection (7) does not apply if:

(a) the TFN determination person concerned is or was the

claimant's partner; and

(b) the claimant cannot obtain from the person:

(i) the person's tax file number; or

(ii) a statement by the person under subsection 65KR(3) or

(4).

Statement made by TFN determination person under subsection

65KR(3)

(3)

If:

(a) the Secretary makes a request under subsection 65KR(1); and

(b) by the end of 28 days after the request is made, the claimant

gives the Secretary a statement by the TFN determination

person of the kind set out in subsection 65KR(3); and

Secretary that the TFN determination person has no tax file

number;

the consequence in subsection (7) applies.

Statement made by TFN determination person under subsection

65KR(4)

(4)

If:

(a) the Secretary makes a request under subsection 65KR(1); and

(b) by the end of 28 days after the request is made, the claimant

gives the Secretary a statement by the TFN determination

person of the kind set out in subsection 65KR(4); and

Secretary that the TFN determination person has not applied

for a tax file number, that an application by the person for a

tax file number has been refused or that the person has

withdrawn an application for a tax file number;

the consequence in subsection (7) applies.

Single income family supplement Schedule 8

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 209

Statement made by TFN claim person under subsection 65KB(4)

(5)

If:

(a) a TFN claim person has made a statement of the kind set out

in subsection 65KB(4); and

(b) a determination is in force under which the claimant is

entitled to be paid single income family supplement for a past

period; and

Secretary that the TFN claim person has no tax file number;

the consequence in subsection (7) applies.

Statement made by TFN claim person under subsection 65KB(5)

(6)

If:

(a) a TFN claim person has made a statement of the kind set out

in subsection 65KB(5); and

(b) a determination is in force under which the claimant is

entitled to be paid single income family supplement for a past

period; and

Secretary that the TFN claim person has not applied for a tax

file number, that an application by the person for a tax file

number has been refused or that the person has withdrawn an

application for a tax file number;

the consequence in subsection (7) applies.

Consequence--variation of determination

(7) For the purposes of subsection (1), (3), (4), (5) or (6), the

consequence is that the Secretary may, if the determination is one

under which the claimant is entitled to be paid single income

family supplement for a past period, vary the determination so that

it has the effect that the claimant is not entitled to be paid single

income family supplement for any day in the past period.

Consequence of Secretary later becoming aware of tax file number

(8)

If:

(a) under subsection (7), the Secretary varies the determination;

and

Schedule 8 Single income family supplement

210 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(b) the Secretary finds out the tax file number of the TFN

determination person or TFN claim person, as the case

requires, at any time after the variation takes place;

the Secretary must vary the determination to undo the effect

mentioned in subsection (7).

65KT Notice of variation of determination

(1) The Secretary must give notice of any variation of a determination

under this Subdivision to the claimant, stating the effect of the

variation and that the claimant may apply for review of the

decision involved in the manner set out in Part 5.

(2) The variation is not ineffective by reason only that the

requirements of subsection (1) are not complied with.

11 After paragraph 66(1)(ea)

Insert:

(eb) single income family supplement;

12 Paragraph 71(1)(a)

Omit "or maternity immunisation allowance", substitute ", maternity

immunisation allowance or single income family supplement".

13 Subsection 93A(6) (after paragraph (a) of the definition of

family assistance payment)

Insert:

(aa) a payment of single income family supplement; or

14 After subparagraph 111(2)(a)(ixb)

Insert:

(ixc)

subsection

65KA(2);

15 At the end of section 154A

Add:

(8) If the tax file number of an individual, or of the partner of an

individual, is provided to the Secretary under Division 4E of

Part 3, this section applies as if a reference to the amounts included

in the individual's adjusted taxable income were a reference to the

Schedule 9 Aged care amendments

212 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Schedule 9--Aged care amendments

Aged Care Act 1997

1 Subsection 58-3(1)

Omit "84%", substitute "85%".

2 Subsection 58-3B(3)

Repeal the subsection, substitute:

Standard resident contribution

(3)

The standard resident contribution for a care recipient who is a

protected resident is the amount obtained by rounding down to the

nearest cent an amount equal to 77.5% of the

basic age pension

amount (worked out on a per day basis).

3 Subsection 58-3C(3)

Repeal the subsection, substitute:

Standard resident contribution

(3)

The standard resident contribution for a care recipient to whom

this section applies is the amount obtained by rounding down to the

nearest cent an amount equal to 96.5% of the

basic age pension

amount (worked out on a per day basis).

4 Subsection 58-4(5) (table items 5 and 6)

Repeal the items, substitute:

20 March 2012 to 30 June 2012 (inclusive)

1 July 2012 to 19 September 2012 (inclusive)

20 September 2012 to 19 March 2013 (inclusive)

5 Application

The amendments made by this Schedule apply in relation to the

calculation of the standard resident contribution for a care recipient

under Division 58 of the Aged Care Act 1997 in respect of a day that is

on or after 1 July 2012.

Other amendments Schedule 10

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 213

Schedule 10--Other amendments

A New Tax System (Family Assistance) Act 1999

1 Paragraph 7(j) of Schedule 3

Omit "or remote area allowance", substitute ", remote area allowance or

clean energy supplement".

Income Tax Assessment Act 1997

2 Section 11-15 (at the end of the table item headed "family

assistance")

Add:

clean energy advance ........................................................... 52-150

single income family supplement ....................................... 52-150

3 Section 11-15 (table item headed "social security or like

payments")

After:

child disability assistance .................................................... Subdivision 52-A

insert:

clean energy advance under the Farm Household

Support Act 1992 ............................................................

53-10

clean energy payment under the Social Security Act

1991 ................................................................................

52-10

clean energy payment under the Veterans' Entitlements

Act 1986 .........................................................................

52-65

clean energy payment under the Military Rehabilitation

and Compensation Act 2004 ..........................................

52-114

4 At the end of subsection 52-10(1) (before the note)

Add:

; or (zb) clean energy payments under the Social Security Act 1991.

5 Before subsection 52-10(2)

Insert:

Schedule 10 Other amendments

214 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

(1L) Clean energy payments under the Social Security Act 1991 are

exempt from income tax.

6 Section 52-15 (at the end of the cell at table item 1, column

headed "the supplementary amount is the total of:")

Add:

; and (e) so much of the

payment as is included

by way of clean energy

supplement

7 Section 52-15 (at the end of the cell at table item 2, column

headed "the supplementary amount is the total of:")

Add:

; and (g) so much of the

payment as is included

by way of clean energy

supplement

8 Section 52-15 (at the end of the cell at table item 3, column

headed "the supplementary amount is the total of:")

Add:

; and (f) so much of the

payment as is included

by way of clean energy

supplement

9 Section 52-15 (at the end of the cell at table item 4, column

headed "the supplementary amount is the total of:")

Add:

; and (e) so much of the

payment as is included

by way of clean energy

supplement

10 Section 52-40 (after table item 4)

Insert:

Clean energy payment

Part 2.18A

Not applicable

11 After paragraph 52-65(1)(a)

Other amendments Schedule 10

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 215

Insert:

(b) clean energy payments; or

12 Before subsection 52-65(2)

Insert:

(1G) Clean energy payments under the Veterans' Entitlements Act 1986

are exempt from income tax.

13 At the end of section 52-70

Add:

; and (e) so much of the payment as is included by way of clean

energy supplement.

14 Section 52-75 (after table item 3)

Insert:

Clean energy payment

Part IIIE

Not applicable

15 Section 52-114 (at the end of the table)

Add:

22 Clean

energy

payment

(sections 83A, 209A and

238A and Part 5A of

Chapter 11)

Exempt Not

applicable

16 Subsection 52-150(1)

Omit "or single income family bonus", substitute ", single income

family bonus, clean energy advance or single income family

supplement".

17 Section 53-10 (after table item 1)

Insert:

Clean energy advance The

Farm

Household Support

Act 1992

None

Social Security Act 1991

18 Paragraph 8(8)(jaa)

Schedule 10 Other amendments

216 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

Omit "or single income family bonus", substitute ", single income

family bonus or clean energy advance".

19 After paragraph 8(8)(yh)

Insert:

(yha) a clean energy payment under the Veterans' Entitlements

Act;

20 After paragraph 8(8)(zna)

Insert:

(znb) a clean energy payment under the Military Rehabilitation and

Compensation Act;

21 Before section 1224AA

Insert:

1224A Debts relating to low income supplements or essential

medical equipment payments

(1) This section applies if:

(a) an individual has been paid:

(i) a low income supplement; or

(ii) an essential medical equipment payment;

because of a determination made under Part 3 of the

Administration Act; and

(b) after the payment was made to the individual, the

determination is or was (however described) changed,

revoked, set aside, or superseded by another determination;

and

determination is or was made wholly or partly because the

individual knowingly made a false or misleading statement,

or knowingly provided false information; and

(d) apart from that statement or information, the payment would

not have been paid.

(2) An amount equal to the payment is a debt due to the

Commonwealth by the individual.

Other amendments Schedule 10

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 217

(3) Apart from section 1224AA, the other provisions of this Part under

which debts arise do not apply in relation to payments to which this

section applies.

22 Paragraph 1231(1AA)(b)

After "economic security strategy payment,", insert "low income

supplement, essential medical equipment payment,".

23 Paragraph 1231(1AA)(b)

Omit "or bonus" (wherever occurring), substitute ", supplement or

bonus".

Social Security (Administration) Act 1999

24 Subsection 47(1) (at the end of the definition of lump sum

benefit)

Add:

; or (k) clean energy advance; or

(l) low income supplement or essential medical equipment

payment.

25 After section 47C

Insert:

47D Payment of clean energy advance

(1) If an individual is qualified for a clean energy advance, the

Secretary must pay the advance to the individual in a single lump

sum:

(a) on the day that the Secretary considers to be the earliest day

on which it is reasonably practicable for the advance to be

made; and

(b) in such manner as the Secretary considers appropriate.

Note:

This section applies to a qualification under Subdivision A or C of

Division 1 of Part 2.18A of the 1991 Act.

(2) However, the Secretary must not pay the advance if the Secretary

is aware that the individual has died.

Schedule 10 Other amendments

218 Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011

47DAA Payment of low income supplement or essential medical

equipment payment

If an individual is qualified for a low income supplement or

essential medical equipment payment, the Secretary must pay the

supplement or payment (as the case requires) to the individual in a

single lump sum in such manner as the Secretary considers

appropriate.

26 Section 123A (after paragraph (c) of the definition of

relevant payment)

Insert:

(ca) a clean energy payment; or

27 Section 123TC

Insert:

clean energy income-managed payment means:

(a) a clean energy advance under the 1991 Act; or

(b) a clean energy advance under the Veterans' Entitlements Act

for service pension; or

(d) quarterly clean energy supplement under the 1991 Act; or

(e) quarterly clean energy supplement under the Veterans'

Entitlements Act for service pension.

28 After Subdivision DD of Division 5 of Part 3B

Insert:

Subdivision DE--Clean energy income-managed payments

123XPJ Deductions from clean energy income-managed payments

Scope

(1) This section applies if:

(a) a person is subject to the income management regime; and

(b) a clean energy income-managed payment is payable to the

person.

Other amendments Schedule 10

Clean Energy (Household Assistance Amendments) Bill 2011 No. , 2011 219

Deductions from clean energy income-managed payments

(2) The following provisions have effect:

(a) the Secretary must deduct from the payment the deductible

portion of the payment;

(b) an amount equal to the deductible portion of the payment is

credited to the Income Management Record;

credited to the person's income management account.

(3) For the purposes of subsection (2), the deductible portion of a

clean energy income-managed payment is 100% of the amount of

the payment.

29 Paragraph 129(3)(a)

After "pension bonus", insert ", low income supplement or essential

medical equipment payment".

30 After subsection 238(1)

Insert:

(1A) Subsection (1) does not apply to a social security payment that is a

payment of low income supplement or an essential medical

equipment payment.

Veterans' Entitlements Act 1986

31 Paragraph 5H(8)(paa)

Omit "or single income family bonus", substitute ", single income

family bonus or clean energy advance".

32 After paragraph 5H(8)(zza)

Insert:

(zzaaaa) a clean energy payment under the MRCA;

33 After paragraph 5H(8)(zzag)

Insert:

(zzah) a clean energy payment under Part IIIE;

Commonwealth of Australia Bills

CLEAN ENERGY (HOUSEHOLD ASSISTANCE AMENDMENTS) BILL 2011