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This is a Bill, not an Act. For current law, see the Acts databases.
2002
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Family
and Community Services Legislation Amendment (Australians Working Together and
other 2001 Budget Measures) Bill 2002
No.
, 2002
(Family and Community
Services)
A Bill for an Act to amend the
law relating to social security, and for related purposes
Contents
Part 1—Amendment of the Social Security Act
1991 3
Social Security Act
1991 3
Part 2—Amendment of the Social Security (Administration) Act
1999 23
Social Security (Administration) Act
1999 23
Part 1—Amendment of the Social Security Act
1991 28
Social Security Act
1991 28
Part 2—Amendment of the Social Security (Administration) Act
1999 31
Social Security (Administration) Act
1999 31
Part 3—Amendment of the Income Tax Assessment Act
1997 32
Income Tax Assessment Act
1997 32
Part 1—Amendment of the Social Security Act
1991 35
Social Security Act
1991 35
Part 2—Amendment of the Social Security (Administration) Act
1999 39
Social Security (Administration) Act
1999 39
Part 1—Closure of access to mature age
allowance 40
Social Security Act
1991 40
Part 2—Closure of access to partner
allowance 42
Social Security Act
1991 42
Social Security Act
1991 43
Part 1—Amendment of the A New Tax System (Family Assistance) Act
1999 49
A New Tax System (Family Assistance) Act
1999 49
Part 2—Amendment of the Social Security Act
1991 50
Social Security Act
1991 50
Part 3—Amendment of the Social Security (Administration) Act
1999 77
Social Security (Administration) Act
1999 77
Part 1—Amendment of the Social Security (Administration) Act
1999 92
Social Security (Administration) Act
1999 92
Part 2—Amendment of the A New Tax System (Family Assistance)
(Administration) Act
1999 93
A New Tax System (Family Assistance) (Administration) Act
1999 93
A Bill for an Act to amend the law relating to social
security, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Family and Community Services Legislation
Amendment (Australians Working Together and other 2001 Budget Measures) Act
2002.
(1) Each provision of this Act specified in column 1 of the table
commences, or is taken to have commenced, on the day or at the time specified in
column 2 of the table.
|
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 on which this Act receives the Royal Assent |
|
|
2. Schedule 1 |
1 July 2003 |
|
|
3. Schedule 2 |
20 September 2002 |
|
|
4. Schedule 3 |
1 July 2002 |
|
|
5. Schedules 4 and 5 |
1 July 2003 |
|
|
6. Schedule 6 |
28 April 2003 |
|
|
7. Schedule 7 |
1 July 2002 |
|
Note: This table relates only to the provisions of this Act
as originally passed by the Parliament and assented to. It will not be expanded
to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table is for additional information that is not part
of this Act. This information may be included in any published version of this
Act.
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.
Part 1—Amendment
of the Social Security Act 1991
1 Subsection 23(1)
Insert:
approved program of work for income support payment means a
program of work that is declared by the Employment Secretary, under
section 28, to be an approved program of work for income support
payment.
2 Subsection 23(1) (definition of approved
program of work for unemployment payment)
Repeal the definition.
3 Subsection 23(1) (definition of approved
program of work supplement)
Repeal the definition, substitute:
approved program of work supplement means:
(a) an amount payable under section 503A to a person receiving
parenting payment; or
(b) an amount payable under section 556A to a person receiving youth
allowance; or
(c) an amount payable under section 644AAA to a person receiving
newstart allowance.
4 Subsection 23(1)
Insert:
participation agreement means a participation agreement
entered into in accordance with a requirement under section 501A.
5 Subsection 23(1)
Insert:
participation agreement breach non-payment period, in
relation to a person, means a participation agreement breach non-payment period
applying to a person in accordance with the terms of
section 500ZA.
6 Subsection 23(1)
Insert:
participation agreement breach rate reduction period, in
relation to a person, means a participation agreement breach rate reduction
period applying to the person in accordance with section 503B.
7 Subsections 28(1) and (2)
Omit “for unemployment payment”, substitute “for income
support payment”.
Note: The heading to section 28 is altered by omitting
“for unemployment payment” and substituting “for
income support payment”.
8 After paragraph 500(1)(b)
Insert:
(c) the person satisfies any requirement to enter into a participation
agreement that applies to the person under Division 2; and
9 At the end of
section 500
Add:
(4) If:
(a) a person ceases to be qualified for parenting payment because of a
failure to comply with a requirement to enter into a participation agreement;
and
(b) the Secretary, under section 80 of the Administration Act,
cancels or suspends the person’s parenting payment because of that loss of
qualification; and
(c) within 13 weeks after the date of effect of the action taken by the
Secretary, the person enters into a participation agreement;
the person’s qualification for parenting payment is taken, for the
purposes of paragraph 500(1)(c) of this Act, never to have ceased.
10 Subdivision B of Division 1 of
Part 2.10 (heading)
Repeal the heading, substitute:
11 At the end of Division 1 of
Part 2.10
Add:
(1) Parenting payment is not payable to a person who is qualified for
parenting payment while a participation agreement breach non-payment period
applies to the person.
(2) A participation agreement breach non-payment period applies to a
person if:
(a) the person commits a participation agreement breach (the latest
breach); and
(b) the latest breach is the third or subsequent participation agreement
breach within the 2 years immediately before the day after the latest
breach.
A person has committed a participation agreement breach if the person
fails to take reasonable steps to comply with the terms of a participation
agreement that is in force in respect of the person.
Basic rule
(1) Subject to subsections (2) and (3), the length of a participation
agreement breach non-payment period is 8 weeks.
Pre-existing non-payment period
(2) If, at the time of the commencement of a participation agreement
breach non-payment period, the person is already subject to a participation
agreement breach non-payment period (pre-existing non-payment
period), the pre-existing non-payment period is taken to end immediately
before the commencement of the participation agreement breach non-payment
period.
Effect on non-payment period of complying with terms of agreement within
13 weeks
(3) If:
(a) a participation agreement breach non-payment period applies to a
person (or would apply to a person apart from this subsection); and
(b) not more than 13 weeks after the start of the period, the person takes
reasonable steps to comply, or resume compliance, with the terms of:
(i) a participation agreement that is in force in respect of the person;
or
(ii) if there is no participation agreement in force in respect of the
person—the participation agreement that was in force in respect of the
person immediately before the commencement of the non-payment period;
this Subdivision has effect, for the purpose only of determining the
payability of parenting payment in relation to the person:
(c) as if the non-payment period had never started; and
(d) if a prior breach penalty period had started not more than 13 weeks
before the person took those reasonable steps—as if that prior breach
penalty period had also never started.
(4) In subsection (3):
breach penalty period means a participation agreement breach
rate reduction period or a participation agreement breach non-payment
period.
Notice of start of period
(1) If a participation agreement breach non-payment period applies to a
person, the Secretary must give the person a written notice telling the person
of the start of the period.
(2) A notice under subsection (1) must contain reasons why the
participation agreement breach non-payment period applies to the
person.
General rule
(3) Subject to subsection (4), the participation agreement breach
non-payment period starts on the day on which the notice is given to the
person.
Parenting payment ceasing to be payable
(4) If:
(a) on or before the day on which a person’s participation agreement
breach non-payment period would (apart from this subsection) have started,
parenting payment ceases to be payable to the person; and
(b) it has not ceased to be payable because of the application of a
participation agreement breach non-payment period;
the participation agreement breach non-payment period starts on the day on
which parenting payment ceases to be payable to the person.
Application of section
(1) This section applies if:
(a) a participation agreement breach non-payment period applies to a
person; and
(b) during the whole or a part of that period, the whole or a part of a
participation payment breach rate reduction period (overlap
period) applies to the person.
Overlap period
(2) Subject to subsection (4), the participation agreement breach
non-payment period and the participation agreement breach rate reduction period
are to run concurrently during the overlap period.
Which restriction is to apply
(3) Only the non-payment restriction relating to the participation
agreement breach non-payment period is to apply to the person during the overlap
period.
Pre-existing participation agreement breach rate reduction
period
(4) If, at the time of the commencement of a participation agreement
breach non-payment period under this Act, the person is already subject to a
participation agreement breach rate reduction period (pre-existing
reduction period), the pre-existing reduction period is taken to end
immediately before the commencement of the participation agreement breach
non-payment period under this Part.
12 After Division 1 of
Part 2.10
Insert:
General
(1) The requirements that apply to a person in respect of parenting
payment participation agreements are as follows:
(a) the person must enter into a participation agreement when the person
is required by the Secretary under section 501A to do so;
(b) while the agreement is in force the person must take reasonable steps
to comply with its terms;
(c) at any time while the agreement is in force the person must be
prepared to enter into another such agreement, instead of the existing
agreement, if required to do so by the Secretary.
What are reasonable steps?
(2) For the purposes of paragraph (1)(b), a person is to be regarded
as taking reasonable steps to comply with the terms of a participation agreement
if the Secretary is satisfied:
(a) that the person has attempted in good faith and to the best of his or
her ability to comply with those terms; or
(b) that the terms:
(i) have never been appropriate; or
(ii) because of a change in the person’s circumstances since entry
into the agreement, have become inappropriate;
for compliance by that person.
Appropriate terms
(3) In determining whether the terms of an agreement have always been, or
have become, appropriate for compliance by a person, the Secretary is to have
regard to the person’s capacity to comply with the terms and to the
person’s needs.
Capacity to comply with agreement, and person’s
needs
(4) In having regard to a person’s capacity to comply with the terms
of a participation agreement and the person’s needs, the Secretary is to
take into account:
(a) the person’s education, experience, skills, age and physical
condition; and
(b) the state of the labour market in the area where the person lives;
and
(c) the participation opportunities available to the person; and
(d) the family and caring responsibilities of the person; and
(e) any other matters that the Secretary considers relevant in the
circumstances.
Secretary must contact person before determining failure to comply with
terms
(5) The Secretary must not determine that a person has failed to take
reasonable steps to comply with the terms of a participation agreement unless
the Secretary:
(a) has made reasonable attempts to contact the person in relation to the
requirement to comply with the terms of the agreement; and
(b) has had regard to the reasons, if any, provided by the person for not
complying with the terms.
Requirement to enter into agreement
(1) Subject to this section, if:
(a) a person is claiming or receiving parenting payment; and
(b) the PP child or, if more than one, the youngest PP child, of the
person has turned 13 years; and
(c) the person is not an exempt person within the meaning of
subsection (2);
the Secretary may require the person to enter into a participation
agreement.
Exempt persons
(2) For the purposes of subsection (1), a person is an exempt person
if the person has:
(a) a PP child who is a profoundly disabled child within the meaning of
section 197; or
(b) two or more PP children;
(i) who are disabled children; and
(ii) who, in the Secretary’s opinion, require a level of care at
least equivalent to the level of care required by a profoundly disabled child;
or
(c) a PP child who suffers from a physical, intellectual or psychiatric
disability that is specified in a determination made under subsection 38D(3) to
be a recognised disability for the purposes of section 953.
Requirement to enter into another agreement
(3) The Secretary may require a person who is a party to a participation
agreement that is in force to enter into another such agreement instead of the
existing one.
Reasons for revocation or revocation and replacement
(4) Without limiting the generality of the grounds on which the Secretary
may take action under subsection (3), those grounds include:
(a) the Secretary’s satisfaction that the person has breached the
requirements of the agreement that is in force; or
(b) the Secretary’s satisfaction that a term or terms of the
agreement that is in force are inappropriate, having regard to the
person’s circumstances and needs at the time it was entered into;
or
(c) the Secretary’s satisfaction that the person’s
circumstances or needs have so changed that the agreement that is in force
should no longer continue in force.
Notice of requirement
(5) The Secretary is to give a person who is required to enter into a
participation agreement notice in writing of:
(a) the requirement; and
(b) the places and times, being places and times which are reasonable in
all the circumstances, at which the agreement is to be negotiated; and
(c) the effect of failure by the person to comply with the requirement set
out in the notice.
Form of agreement
(1) A participation agreement is a written agreement between the Secretary
and another person in a form approved by the Secretary under which the person
agrees, during each period of 6 months that the agreement remains in force, to
undertake 150 hours of approved activities or such lesser number of hours of
approved activities as are agreed between them.
Approved activities
(2) For the purposes of a particular participation agreement, approved
activities constitute such particular activities, comprising one or more of the
following activities, as are approved by the Secretary:
(a) job search;
(b) a vocational or pre-vocational training course;
(c) training that would help in searching for work;
(d) paid work;
(e) measures designed to eliminate or reduce any disadvantage the person
has in relation to obtaining work;
(f) subject to subsection (7)—voluntary participation in an
approved program of work for income support payment;
(g) participation in a labour market program;
(h) participation in the PSP;
(i) participation in a rehabilitation program;
(j) a course of education;
(k) another activity that the Secretary regards as suitable for the person
and that is agreed to between the person and the Secretary.
Secretary’s considerations concerning approval of
terms
(3) In considering what terms of a participation agreement with a person
to approve, the Secretary is to have regard to the person’s capacity to
comply with the terms of the proposed agreement and to the person’s
needs.
Capacity to comply with agreement, and person’s
needs
(4) In having regard to a person’s capacity to comply with the terms
of a participation agreement and to the person’s needs, the Secretary is
to take into account:
(a) the person’s education, experience, skills, age and physical
condition; and
(b) the state of the labour market in the area where the person lives;
and
(c) the participation opportunities available to the person; and
(d) the family and caring responsibilities of the person; and
(e) any other matters that the Secretary considers relevant in the
circumstances.
Variation, suspension, cancellation and review
(5) A participation agreement with a person:
(a) may be varied or suspended by the Secretary; and
(b) if another participation agreement is made with the person—may
be cancelled by the Secretary; and
(c) may be reviewed from time to time by the Secretary at the request of
either party to the agreement; and
(d) may be cancelled by the Secretary after a review under
paragraph (c).
Circumstances preventing or affecting compliance
(6) The party to a participation agreement other than the Secretary must
tell the Secretary of any circumstances preventing or affecting the
party’s compliance with the agreement.
Situations in which participation in an approved program of work for
income support payment cannot be required
(7) A participation agreement with a person must not provide for
participation in an approved program of work for income support payment
if:
(a) in the Secretary’s opinion:
(i) it has been established that there is medical evidence that the person
has an illness, disability or injury that would be aggravated by the conditions
in which the work would be performed; or
(ii) performing the work in the conditions in which the work would be
performed would constitute a risk to health or safety or would contravene a law
of the Commonwealth, a State or Territory relating to occupational health and
safety; or
(b) the program of work requires the person to move from a home in one
place to a home in another place.
Effect of participation in an approved program of work for income
support payment
(8) A person is not to be taken, merely by participating in an approved
program of work for income support payment in accordance with the terms of a
participation agreement under this section, to be:
(a) an employee within the meaning of section 9 of the
Occupational Health and Safety (Commonwealth Employment) Act 1991;
or
(b) an employee within the meaning of section 5 of the Safety,
Rehabilitation and Compensation Act 1988; or
(c) an employee for the purposes of the Superannuation Guarantee
(Administration) Act 1992; or
(d) an employee for the purposes of the Workplace Relations Act
1996.
Failure to enter agreement
(1) If:
(a) a person has been given notice under subsection 501A(5) of a
requirement to enter into a participation agreement; and
(b) the Secretary is satisfied, because of the person’s failure
to:
(i) attend the negotiation of the agreement; or
(ii) respond to correspondence about the agreement; or
(iii) agree to terms of the agreement proposed by the Secretary;
or for any other reason, that the person is unreasonably delaying
entering into the agreement;
then:
(c) the Secretary may give the person notice that the person is taken to
have failed to enter the agreement; and
(d) if the notice is given—the person is taken to have so
failed.
Form of notice
(2) A notice under paragraph (1)(c) must:
(a) be in writing; and
(b) set out the reasons for the decision to give the notice; and
(c) include a statement describing the rights of the person to apply for
the review of the decision.
13 After the heading to Division 4 of
Part 2.10
Insert:
14 After section 503
Insert:
If a person:
(a) is receiving a parenting payment; and
(b) is participating in an approved program of work for income support
payment;
the rate of the person’s parenting payment is increased by an amount
of $20.80, to be known as the approved program of work supplement, for each
fortnight during which the person participates in the program.
An approved program of work supplement is not payable to a person in
respect of a fortnight if pensioner education supplement under Part 2.24A
or under ABSTUDY is payable to the person in respect of a day in the
fortnight.
(1) A participation agreement breach rate reduction period applies to a
person if:
(a) the person fails to take reasonable steps to comply with the terms of
the person’s participation agreement (latest breach);
and
(b) the latest breach is only the first or second breach committed by the
person within the 2 years immediately before the day after the latest
breach.
(2) In this section, breach means a failure to take
reasonable steps to comply with the terms of a participation
agreement.
Length of breach rate reduction period
(1) Subject to subsections (2) and (3), the length of a participation
agreement breach rate reduction period is 26 weeks.
Pre-existing breach rate reduction period
(2) If, at the time of the commencement of a participation agreement
breach rate reduction period under this Part (the current breach
period), the person is already subject to a participation agreement
breach rate reduction period (pre-existing rate reduction period),
the pre-existing rate reduction period is taken to end immediately before the
commencement of the current breach period.
Effect on breach rate reduction period of complying with the terms of an
agreement within 13 weeks
(3) If:
(a) a participation agreement breach rate reduction period applies to a
person (or would apply to a person apart from this subsection); and
(b) not more than 13 weeks after the start of the period, the person takes
reasonable steps to comply, or to resume compliance, with the terms of a
participation agreement that is in force in respect of the person;
this Act has effect, for the purpose only of working out the rate of
parenting payment payable to the person:
(c) as if the period had never started; and
(d) if a prior breach penalty period had started not more than 13 weeks
before the person took those reasonable steps—as if that prior breach
penalty period had also never started.
Effect on breach rate reduction period of complying with the terms of
agreement after 13 weeks
(4) If:
(a) a participation agreement breach rate reduction period applies to a
person (or would apply to a person apart from this subsection); and
(b) more than 13 weeks after the start of the period, the person takes
reasonable steps to comply, or to resume compliance, with the terms of a
participation agreement that is in force in respect of the person;
the breach rate reduction period applicable to the person ceases with
effect from the day on which the person took those reasonable steps.
(5) In this section:
breach penalty period means a participation agreement breach
rate reduction period or a participation agreement breach non-payment
period.
Notice of start of period
(1) If a participation agreement breach rate reduction period applies to a
person under this Part, the Secretary must give to the person a written notice
telling the person of the start of the period.
General rule
(2) Subject to subsection (3), the participation agreement breach
rate reduction period starts on the day on which the notice is given to the
person.
Parenting payment ceasing to be payable
(3) If, on or before the day on which the person’s participation
agreement breach rate reduction period would (apart from this subsection) have
started, parenting payment ceases to be payable to the person, the period starts
on the day on which parenting payment ceases to be payable to the
person.
Participation agreement breach reduced rate
(1) If a participation agreement breach rate reduction period applies to a
person under this Part, the person’s rate of parenting payment for the
reduction period is worked out as follows:
Method statement
Step 1. Work out the person’s maximum payment
rate as follows:
(a) if the person is not a member of a couple, the person’s maximum
payment rate will be the sum of the person’s maximum basic rate of
parenting payment as determined under Module B of the Parenting Payment Rate
Calculator in section 1068A and the person’s pension supplement as
determined under Module BA of the Parenting Payment Rate Calculator in
section 1068A;
(b) if the person is a member of a couple, the person’s maximum
payment rate is the rate worked out using Module C of the Parenting Payment Rate
Calculator in section 1068B.
Step 2. Work out the rate reduction amount as follows:
(a) if the participation agreement breach is the person’s first
breach in the 2 year period:
(b) if the participation agreement breach is the person’s second
breach in the 2 year period:
Step 3. Take the rate reduction amount away from the rate of
parenting payment worked out in accordance with the Parenting Payment Rate
Calculator in section 1068A or 1068B, as the case may be. The result is the
participation agreement breach reduced rate.
Meaning of 2 year period
(2) In this section:
2 year period means the 2 years immediately before the day
after the participation agreement breach.
15 Paragraph 541(2)(b)
Omit “for unemployment payment”, substitute “for income
support payment”.
16 Subsection 541(2) (note)
Repeal the note.
17 Paragraph 541A(e)
Omit “for unemployment payment”, substitute “for income
support payment”.
18 Subsection 541E(1)
Omit “for unemployment payment”, substitute “for income
support payment”.
Note: The heading to subsection 541E(1) is altered by
omitting “for unemployment payment” and substituting
“for income support payment”.
19 Subsection 541E(2)
Omit “for unemployment payment”, substitute “for income
support payment”.
20 Subsection 541E(3)
Omit “for unemployment payment”, substitute “for income
support payment”.
Note 1: The heading to subsection 541E(3) is altered by
omitting “for unemployment payment” and substituting
“for income support payment”.
Note 2: The heading to section 541E is altered by
omitting “for unemployment payment” and substituting
“for income support payment”.
21 Paragraph 544B(1)(f)
Omit “for unemployment payment”, substitute “for income
support payment”.
22 Subsection 544B(7)
Omit “for unemployment payment”, substitute “for income
support payment”.
Note: The heading to subsection 544B(7) is altered by
omitting “for unemployment payment” and substituting
“for income support payment”.
23 Subsection 544B(7)
(note)
Repeal the note.
24 Subsection 544B(8)
Omit “for unemployment payment”, substitute “for income
support payment”.
Note: The heading to subsection 544B(8) is altered by
omitting “for unemployment payment” and substituting
“for income support payment”.
25 Paragraph 556A(b)
Omit “for unemployment payment”, substitute “for income
support payment”.
26 Section 556A (note)
Repeal the note.
27 Subparagraph
601(2)(a)(ia)
Omit “for unemployment payment”, substitute “for income
support payment”.
28 Subsections 601(2E) and
(2F)
Omit “for unemployment payment”, substitute “for income
support payment”.
29 Paragraph 601A(3)(a)
Omit “for unemployment payment”, substitute “for income
support payment”.
30 Paragraph 606(1)(ec)
Omit “for unemployment payment”, substitute “for income
support payment”.
31 Subdivision GA of Division 1 of
Part 2.12 (heading)
Repeal the heading, substitute:
32 Paragraph 631B(1)(b)
Omit “for unemployment payment”, substitute “for income
support payment”.
Note: The heading to section 631B is altered by
omitting “for unemployment payment” and substituting
“for income support payment”.
33 Section 631C
Omit “for unemployment payment”, substitute “for income
support payment”.
Note: The heading to section 631C is altered by
omitting “for unemployment payment” and substituting
“for income support payment”.
34 Paragraph 644AAA(b)
Omit “for unemployment payment”, substitute “for income
support payment”.
35 After paragraph
729(2)(bb)
Insert:
(bc) the person is not disqualified from parenting payment for the period
solely because of a failure to meet the requirement of paragraph 500(1)(c)
(requirement to enter into a participation agreement); and
(bd) if the person is qualified for parenting payment but the payment is
not payable to the person for the period—that result is not produced
because of the operation of section 500ZA (person failing to comply with a
participation agreement); and
36 Subparagraph
1223(7)(b)(iv)
Repeal the subparagraph, substitute:
(iv) if the person was receiving parenting payment, youth allowance or
newstart allowance—the rate of the person’s parenting payment, youth
allowance or new start allowance was increased by an approved program of work
supplement when that rate should not have been so increased;
37 Subsection 1223(7)
(note)
Repeal the note.
Part 2—Amendment
of the Social Security (Administration) Act 1999
Social Security
(Administration) Act 1999
38 After subsection 37(1)
Insert:
(1A) The Secretary must determine that a claim for parenting payment is to
be granted if the Secretary is satisfied that:
(a) the claimant is qualified, or is expected to be qualified, for the
payment; and
(b) the payment would be payable apart from:
(i) the application of a participation agreement breach non-payment
period; or
(ii) the application of a participation agreement breach rate reduction
period where the rate reduction reduces the claimant’s rate of parenting
payment to nil.
39 Paragraph 127(2)(b)
Omit “for unemployment payment”, substitute “for income
support payment”.
40 After subparagraph
131(1)(b)(i)
Insert:
(ia) would result in the application of a participation agreement breach
non-payment period; or
41 Subsection 131(7)
Insert:
participation agreement breach non-payment period, in
relation to a person who is the subject of an adverse decision, means a period
that is determined under section 500ZA of the 1991 Act to be a
participation agreement breach non-payment period applicable to that
person.
42 Paragraph 132(1)(a)
After “persons who are subject to”, insert “a
participation agreement breach non-payment period or to”.
43 After section 132
Insert:
(1) This section applies to a decision to give a notice under
section 501C of the 1991 Act because of a person’s failure to agree
to terms of a participation agreement proposed by the Secretary.
(2) If:
(a) a person applies under section 129 for review of a decision to
which this section applies; and
(b) the person makes the application within 14 days after being notified
of the decision;
the following provisions have effect:
(c) payment of parenting payment is to be made, pending the determination
of the review, as if the participation agreement had not been
required;
(d) if payment of the parenting payment had ceased for a period before the
person applied for the review—arrears of parenting payment are payable to
the person for the period in spite of section 118;
(e) the social security law (other than this Division) applies as if the
participation agreement had not been required.
(3) Subsection (2) ceases to have effect if the application for
review is withdrawn.
(4) Subsection (2) ceases to have effect when the review of the
decision is determined.
44 After paragraph
140(1)(a)
Insert:
(aa) a decision under section 501B of the 1991 Act to the extent to
which it relates to the terms of a participation agreement that is in force;
and
45 Before subsection 143(1)
Insert:
(1A) The SSAT may only review a decision under section 501B of the
1991 Act (to the extent to which it relates to the terms of a participation
agreement that is in force) if the application is expressed to be an application
for review of that decision.
46 After subparagraph
145(1)(b)(i)
Insert:
(ia) would result in the application of a participation agreement breach
non-payment period; or
47 Paragraph 146(1)(a)
Repeal the paragraph, substitute:
(a) is to set guidelines for the exercise of the Secretary’s power
to make a declaration under subsection 145(1):
(i) affecting payments to persons who are subject to a participation
agreement breach non-payment period; or
(ii) affecting payments to persons who are subject to an activity test
non-payment period; and
48 After section 146
Insert:
(1) If:
(a) a decision has been made to give a notice under section 501C of
the 1991 Act because of a person’s failure to agree to terms of a
participation agreement proposed by the Secretary; and
(b) the person applies to the Social Security Appeals Tribunal under
section 142 for review of the decision; and
(c) the person makes the application within 14 days after being notified
of the decision;
the following provisions have effect:
(d) payment of parenting payment is to be made, pending the determination
of the review, as if the participation agreement had not been
required;
(e) if payment of parenting payment had ceased for a period before the
person applied for the review—arrears of parenting payment are payable to
the person for the period, in spite of section 118;
(f) the social security law (other than this Division) has effect as if
the participation agreement had not been required.
(2) Subsection (1) ceases to have effect if:
(a) the application for review is withdrawn; or
(b) the review of the decision is determined.
49 Before paragraph
149(5)(a)
Insert:
(aa) a decision under section 501B of the 1991 Act to the extent to
which it relates to the terms of a participation agreement that is in force;
or
50 Before paragraph 150(a)
Insert:
(aa) a decision under section 501B of the 1991 Act to the extent to
which it relates to the terms of a participation agreement that is in force;
or
51 Before paragraph
151(4)(a)
Insert:
(aa) a decision under section 501B of the 1991 Act to the extent to
which it relates to the terms of a participation agreement that is in force;
or
52 Before paragraph
152(6)(a)
Insert:
(aa) a decision under section 501B of the 1991 Act to the extent to
which it relates to the terms of a participation agreement that is in force;
or
53 Before paragraph
153(1)(a)
Insert:
(aa) a decision under section 501B of the 1991 Act to the extent to
which it relates to the terms of a participation agreement that is in force;
and
Part 1—Amendment
of the Social Security Act 1991
1 After Part 2.21
Insert:
In this Part:
designated social security payment means:
(a) disability support pension; or
(b) mature age allowance payable under Part 2.12B; or
(c) newstart allowance; or
(d) parenting payment; or
(e) partner allowance; or
(f) widow allowance; or
(g) youth allowance.
A person is qualified to receive a language, literacy and numeracy
supplement in respect of a fortnight if:
(a) the person is receiving a designated social security payment in
respect of that fortnight; and
(b) the Secretary is satisfied that, on a day during that fortnight, the
person was attending a course included in the language, literacy and numeracy
program administered by the Department of State responsible for education and
training.
(1) Language, literacy and numeracy supplement is not payable to a person
in respect of a fortnight if pensioner education supplement under
Part 2.24A or under ABSTUDY is payable to the person in respect of a day in
the fortnight.
(2) Language, literacy and numeracy supplement is not payable to a person
in respect of a fortnight if an approved program of work supplement or a CDEP
Scheme Participant Supplement is payable to the person in respect of that
fortnight.
(3) Language, literacy and numeracy supplement is not payable to a person
in respect of a fortnight in relation to attendance at a second or subsequent
language, literacy or numeracy course in that fortnight.
(4) For the avoidance of doubt, language, literacy and numeracy supplement
is payable in respect of a person’s attendance at a language, literacy or
numeracy course whether that attendance is voluntary or is required under the
provisions of, or of an agreement made under, any other provision of this
Act.
If a person:
(a) is qualified to receive language, literacy and numeracy supplement in
respect of a fortnight; and
(b) nothing in section 1049 precludes the payability of that
supplement to that person in respect of that fortnight;
the rate of the person’s designated social security payment in
respect of that fortnight, worked out under Chapter 3 and taking account of
any rate reduction provided for in this Act, is increased by $20.80, being the
fortnightly rate of the supplement.
2 After subparagraph
1223(7)(b)(i)
Insert:
(ia) the rate of the person’s social security benefit payment was
increased by an amount of language, literacy and numeracy supplement when that
rate should not have been so increased; or
3 After paragraph
1223(7)(c)
Insert:
(ca) the amount of language, literacy and numeracy
supplement;
Part 2—Amendment
of the Social Security (Administration) Act 1999
Social Security
(Administration) Act 1999
4 After section 12A
Insert:
A claim is not required for language, literacy and numeracy
supplement.
Part 3—Amendment
of the Income Tax Assessment Act 1997
Income Tax Assessment Act
1997
5 Section 52-15
(table)
Repeal the table, substitute:
|
Supplementary amount of a social security payment |
||
|---|---|---|
|
Item |
For this category of social security payment: |
the supplementary amount is the total of: |
|
1 |
Age pension Bereavement allowance Carer payment Disability wage supplement Mature age allowance (paid under Part 2.12A) Mature age partner allowance Sickness allowance Special benefit Special needs age pension Special needs disability support pension Special needs widow B pension Special needs wife pension Widow B pension Wife pension |
(a) so much of the payment as is included by way of rental assistance;
and |
|
2 |
Disability support pension |
(a) so much of the payment as is included by way of rental assistance;
and |
|
3 |
Mature age allowance (paid under Part 2.12B) Newstart allowance Parenting payment (benefit (PP partnered)) Parenting payment (pension (PP single)) Partner allowance Widow allowance Youth allowance |
(a) so much of the payment as is included by way of rental assistance;
and |
|
4 |
Austudy payment |
(a) so much of the payment as is included by way of remote area allowance;
and |
6 Section 52-40 (table item 22A, cell
relating to ordinary payment)
Omit “Part 2.27”, substitute
“Part 2.24A”.
7 Application provision
The amendments made by items 5 and 6 of this Schedule apply in
relation to assessments in respect of income of the first year of income ending
after the commencement of this Schedule and of all later years of
income.
Part 1—Amendment
of the Social Security Act 1991
1 Subsection 23(1) (definition of
CSP)
Omit “Employment Department”, substitute
“Department”.
2 Subsection 23(1)
Insert:
PSP means the program known as the Personal Support Programme
administered by the Department.
3 After subsection 541(1)
Insert:
(1A) A person also satisfies the activity test in respect of the period
if, throughout the period, the person participates in the CSP.
4 Subparagraph 541(2)(c)(v)
Repeal the subparagraph.
5 After paragraph 541(2)(c)
Insert:
(ca) participate in the PSP;
6 Paragraph 544B(1)(ia)
Repeal the paragraph, substitute:
(ia) participation in the PSP;
7 Subparagraph
549A(5)(a)(ia)
Repeal the subparagraph, substitute:
(ia) participation in the PSP; or
8 Subparagraph
553B(2)(a)(ia)
Repeal the subparagraph, substitute:
(ia) participation in the PSP; or
9 After subparagraph
553C(4)(a)(i)
Insert:
(ia) participation in the PSP; or
Note: The heading to subsection 553C(4) is altered by
inserting “, the PSP” after “labour
market”.
10 Paragraphs 598(8)(a) and
(b)
Repeal the paragraphs, substitute:
(a) is undertaking:
(i) formal vocational training in a labour market program approved by the
Employment Secretary; or
(ii) a rehabilitation program approved by the Employment Secretary;
or
(b) is participating in the CSP or the PSP;
and the person has been exempted from the application of that subsection by
the Secretary.
11 Subparagraph
601(2)(a)(iv)
Repeal the subparagraph, substitute:
(iv) should participate in the PSP; and
12 After subsection 601(6)
Insert:
(6A) A person also satisfies the activity test in respect of the period
if, throughout the period, the person participates in the CSP.
13 Paragraph 606(1)(fb)
Repeal the paragraph, substitute:
(fb) participation in the PSP;
14 Paragraphs 620(2)(a) and
(b)
Repeal the paragraphs, substitute:
(a) is undertaking:
(i) formal vocational training in a labour market program approved by the
Employment Secretary; or
(ii) a rehabilitation program approved by the Employment Secretary;
or
(b) is participating in the CSP or the PSP;
and the person has been exempted from the application of that subsection by
the Secretary.
15 Subparagraph
624(2)(a)(ia)
Repeal the subparagraph, substitute:
(ia) participation in the CSP; or
16 At the end of
section 624
Add:
(3) If:
(a) an activity test penalty period applies to a person under
subsection (1) (or would apply to the person apart from this subsection);
and
(b) the person starts to participate in the PSP;
the activity test penalty period stops applying to the person from and
including the day on which the person starts to participate in the PSP (whether
or not the person completes the program).
17 Subparagraph
625(2)(a)(ia)
Repeal the subparagraph, substitute:
(ia) participation in the CSP; or
18 At the end of
section 625
Add:
(3) If:
(a) an activity test penalty period applies to a person under
subsection (1) (or would apply to the person apart from this subsection);
and
(b) the person starts to participate in the PSP;
the activity test penalty period stops applying to the person from and
including the day on which the person starts to participate in the PSP (whether
or not the person completes the program).
19 Subparagraph
626(2)(a)(ia)
Repeal the subparagraph, substitute:
(ia) participation in the CSP; or
20 At the end of
section 626
Add:
(3) If:
(a) an activity test penalty period applies to a person under
subsection (1) (or would apply to the person apart from this subsection);
and
(b) the person starts to participate in the PSP;
the activity test penalty period stops applying to the person from and
including the day on which the person starts to participate in the PSP (whether
or not the person completes the program).
21 After subparagraph
633(4)(a)(i)
Insert:
(ia) participation in the PSP; or
22 Paragraphs 634(2)(a) and
(b)
Repeal the paragraphs, substitute:
(a) is undertaking:
(i) formal vocational training in a labour market program approved by the
Employment Secretary; or
(ii) a rehabilitation program approved by the Employment Secretary;
or
(b) is participating in the CSP or the PSP;
and the person has been exempted from the application of that subsection by
the Secretary.
Part 2—Amendment
of the Social Security (Administration) Act 1999
Social Security
(Administration) Act 1999
23 Paragraph 63(4)(e)
Repeal the paragraph, substitute:
(e) if the person is receiving a youth allowance and is neither:
(i) subject to a requirement by the Secretary to participate in the PSP;
nor
(ii) a party to a youth allowance activity agreement under which the
person is required to participate in the PSP;
the allowance is not payable and if, at a later time, a youth allowance
becomes payable to the person, an administrative breach rate reduction period
applies to the person;
24 Subsection 63(5)
Omit all the words after paragraph (d), substitute:
the following paragraphs have effect:
(e) if the person is receiving newstart allowance and is
neither:
(i) subject to a requirement by the Secretary to participate in the PSP;
nor
(ii) a party to a Newstart Activity Agreement under which the person is
required to participate in the PSP;
the allowance is not payable and if, at a later time, newstart allowance
becomes payable to the person, an administrative breach rate reduction period
applies to the person;
(f) in any other case, the payment that the person has received or has
claimed is not payable.
25 Paragraph 127(2)(a)
Repeal the paragraph.
Part 1—Closure
of access to mature age allowance
1 Division 1 of Part 2.12B
(heading)
Repeal the heading, substitute:
2 After section 660YAA
Insert:
(1) In spite of any other provisions of this Act or of the Administration
Act, a person is not to be granted a mature age allowance under this Part
unless:
(a) the person’s claim for the allowance:
(i) was lodged before 1 July 2003; or
(ii) is taken, because of the operation of section 12, 13 or 15 of
the Administration Act, to have been made before 1 July 2003; and
(b) the person was qualified for the allowance:
(i) in a case to which subparagraph (a)(i) applies—on the date
of lodgment of the claim; and
(ii) in a case to which subparagraph (a)(ii) applies—on the
date the person is taken to have made the claim.
(2) Subsection (1) does not imply that a person making a claim in the
circumstances referred to in subsection 35(1) of the Administration Act before
1 July 2003 will be granted a mature age allowance if the date from which
the allowance would be payable to that person under subsection 37(7) of that Act
would be 1 July 2003 or a later date.
(3) Nothing in this section affects the operation of section 85 of
the Administration Act.
Part 2—Closure
of access to partner allowance
3 Before Division 1 of
Part 2.15A
Insert:
(1) In spite of any other provisions of this Act or of the Administration
Act, a person is not to be granted a partner allowance under this Part
unless:
(a) the person’s claim for the allowance:
(i) was lodged before 1 July 2003; or
(ii) is taken, because of the operation of section 12, 13 or 15 of
the Administration Act, to have been made before 1 July 2003; and
(b) the person was qualified for the allowance:
(i) in a case to which subparagraph (a)(i) applies—on the date
of lodgment of the claim; and
(ii) in a case to which subparagraph (a)(ii) applies—on the
date the person is taken to have made the claim.
(2) Subsection (1) does not imply that a person making a claim in the
circumstances referred to in subsection 35(1) of the Administration Act before
1 July 2003 will be granted a partner allowance if the date from which the
allowance would be payable to that person under subsection 37(7) of that Act
would be 1 July 2003 or a later date.
(3) Nothing in this section affects the operation of section 85 of
the Administration Act.
1 After subsection 595(1)
Insert:
(1A) If a person:
(a) is at least 50 years old; and
(b) either:
(i) has not been required to enter into a Newstart Activity Agreement;
or
(ii) having been required to enter into a Newstart Activity Agreement, is
not, to the satisfaction of the Secretary, unreasonably delaying entering into
that agreement;
the Secretary may, if the Secretary is satisfied that it is appropriate to
do so, treat the person as being unemployed.
(1B) Subsection (1A) does not apply to a person who is undertaking
remunerative work.
2 Subparagraph 598(1)(a)(i)
Repeal the subparagraph, substitute:
(i) the day following the day on which the person ceased work or ceased to
be enrolled in a full time course of education or of vocational training;
or
3 Subsection 598(3)
Omit “on which the person became unemployed”, substitute
“following the day on which the person ceased work or ceased to be
enrolled in a full time course of education or of vocational
training”.
4 Paragraphs 598(3A)(a) and
(b)
Repeal the paragraphs, substitute:
(a) the day following the day on which the person ceased work or ceased to
be enrolled in a full time course of education or of vocational
training;
(b) if, when the claim is made, the person’s partner has ceased
work—the day following the day on which the person’s partner ceased
work;
(ba) if, when the claim is made, the person’s partner has ceased to
be enrolled in a full time course of education or of vocational
training—the day following the day on which the person’s partner so
ceased;
5 Paragraph 598(3B)(d)
Repeal the paragraph, substitute:
(d) if, when the claim is made, the person’s partner has ceased
work—the day following the day on which the person’s partner ceased
work;
(da) if, when the claim is made, the person’s partner has ceased to
be enrolled in a full time course of education or of vocational
training—the day following the day on which the person’s partner so
ceased;
6 Paragraph 598(4A)(a)
Repeal the paragraph, substitute:
(a) the day following the day on which the person ceased work or ceased to
be enrolled in a full time course of education or of vocational training;
or
7 At the end of
section 598
Add:
(9) A reference in this section to the day on which a person ceased work
(whether the person ceases work permanently, temporarily or by reason of being
on unpaid leave) is a reference:
(a) except where the person is on paid leave immediately after last
performing work—to the day on which the person last performed work before
so ceasing; and
(b) if the person is on paid leave—to the last day on which the
person is on that paid leave.
8 Paragraph 600(6)(a)
Repeal the paragraph.
9 At the end of subsection
601(2E)
Add:
; or (c) the person is at least 50 years of age.
10 After subsection 603(1)
Insert:
(1A) If a person:
(a) is at least 50 years of age; and
(b) either:
(i) has not been required to enter into a Newstart Activity Agreement;
or
(ii) having been required to enter into a Newstart Activity Agreement, is
not, to the satisfaction of the Secretary, unreasonably delaying entering into
that agreement;
the person is taken to have satisfied the activity test during the period
starting when the person claimed, or is to be taken to have claimed, a newstart
allowance and ending:
(c) if the person has been required to enter into a Newstart Activity
Agreement but has failed, or is taken to have failed, to enter that
agreement—when the person so failed or is taken to have so failed;
or
(d) in any other case—when the person has entered into such an
agreement.
11 Paragraph 606(1)(g)
Repeal the paragraph, substitute:
(g) another activity that the Secretary regards as suitable for the person
and that is agreed to between the person and the Secretary.
12 At the end of
section 630A
Add:
(2) If:
(a) a newstart allowance becomes not payable to a person because
of:
(i) a failure to enter into a Newstart Activity Agreement; or
(ii) an unreasonable delay in entering into a Newstart Activity Agreement;
or
(iii) a failure to take reasonable steps to comply with the terms of a
Newstart Activity Agreement; and
(b) the person is at least 50 years of age at the time of the activity
test breach referred to in paragraph (a); and
(c) the Secretary is satisfied that, not more than 8 weeks after the start
of the activity test non-payment period applicable to the person by reason of
the breach referred to in paragraph (a), the person:
(i) has entered into such a Newstart Activity Agreement; or
(ii) is no longer unreasonably delaying entry into such a Newstart
Activity Agreement; or
(iii) is taking reasonable steps to comply, or to resume compliance, with
the terms of a Newstart Activity Agreement that is in force in respect of the
person or, if there is no Newstart Activity Agreement in force in respect of the
person, with the terms of the Newstart Activity Agreement that was in force in
respect of the person immediately before the commencement of the non-payment
period;
as the case requires;
this Act has effect, for the purpose only of determining the payability of
newstart allowance during the balance of the non-payment period, as if the
non-payment period had never applied.
(3) A determination that a person has commenced to take reasonable steps
as referred to in paragraph (2)(c) may be expressed to have effect from the
day on which those reasonable steps are taken, whether or not the determination
is made on that day or a later day.
13 At the end of
section 644AA
Add:
(2) If:
(a) a newstart allowance becomes not payable to a person because
of:
(i) a failure to enter into a Newstart Activity Agreement; or
(ii) an unreasonable delay in entering into a Newstart Activity Agreement;
or
(iii) a failure to take reasonable steps to comply with the terms of a
Newstart Activity Agreement; and
(b) the person is at least 50 years of age at the time of the activity
test breach referred to in paragraph (a); and
(c) the Secretary is satisfied that, not more than 26 weeks after the
start of the activity test rate reduction period applicable to the person by
reason of the breach referred to in paragraph (a), the person:
(i) has entered into such a Newstart Activity Agreement; or
(ii) is no longer unreasonably delaying entry into such a Newstart
Activity Agreement; or
(iii) is taking reasonable steps to comply, or to resume compliance, with
the terms of a Newstart Activity Agreement that is in force in respect of the
person or, if there is no Newstart Activity Agreement in force in respect of the
person, with the terms of the Newstart Activity Agreement that was in force in
respect of the person immediately before the commencement of the rate reduction
period;
as the case requires;
this Act has effect, for the purpose only of determining the rate of
newstart allowance during the balance of the rate reduction period, as if the
rate reduction period had never applied.
(3) A determination that a person has commenced to take reasonable steps
as referred to in paragraph (2)(c) may be expressed to have effect from the
day on which those reasonable steps are taken, whether or not the determination
is made on that day or a later day.
14 At the end of
section 644B
Add:
(2) If:
(a) a newstart allowance becomes not payable to a person because of a
failure to comply with a requirement to attend at a particular place for a
particular purpose in accordance with a notice issued under paragraph 63(3)(c);
and
(b) the person is at least 50 years of age at the time of the
administrative breach referred to in paragraph (a); and
(c) not more than 13 weeks after the start of the administrative breach
rate reduction period applicable to the person by reason of the breach referred
to in paragraph (a):
(i) the person attends that place for that purpose; or
(ii) the person complies with an alternative requirement that the
Secretary notifies to the person (whether orally or in writing);
this Act has effect, for the purpose only of determining the rate of
newstart allowance during the balance of the rate reduction period, as if the
rate reduction period had never applied.
15 Subsection 1217 (after table
item 15)
Insert:
|
15A |
Newstart allowance |
Persons of at least 50 years of age who are subject to a Newstart Activity
Agreement other than an agreement requiring the person to undertake an activity
referred to in paragraph 606(1)(a) |
Any temporary absence |
26 weeks |
Part 1—Amendment
of the A New Tax System (Family Assistance) Act 1999
A New Tax System (Family
Assistance) Act 1999
1 Subsection 3(1) (definition of
receiving)
Repeal the definition, substitute:
receiving:
(a) in relation to a social security payment—has the same meaning as
in subsections 23(2) and (4) of the Social Security Act 1991;
and
(b) for the purpose of construing references to a person receiving a
social security pension or a social security benefit in clauses 1 and 17 of
Schedule 1, and in clause 7 of Schedule 2, to this Act—is
taken to include the meaning provided in subsection 23(4A) of the Social
Security Act 1991 as if those clauses were specified provisions of that Act
referred to in subsection 23(4AA) of that Act.
Part 2—Amendment
of the Social Security Act 1991
2 Subsection 8(1)
Insert:
employment income, in relation to a person, means ordinary
income of the person that comprises employment income under subsection (1A)
and includes ordinary income that is characterised as employment income of the
person because of the operation of subsection (1B).
3 Subsection 8(1)
Insert:
student income bank means the student income bank set
out:
(a) in Module J of the Youth Allowance Rate Calculator; or
(b) in Module E of the Austudy Payment Rate Calculator.
4 Subsection 8(1)
Insert:
working credit participant means a person who is a working
credit participant within the meaning of section 1073D.
5 After subsection 8(1)
Insert:
(1A) A reference in this Act to employment income, in
relation to a person, is a reference to ordinary income of the person:
(a) that is earned, derived or received, or that is taken to have been
earned, derived or received, by the person from remunerative work undertaken by
the person as an employee in an employer/employee relationship; and
(b) that includes, but is not limited to, salary, wages, commissions and
employment-related fringe benefits that are so earned, derived or received or
taken to have been so earned, derived or received;
but does not include:
(c) a superannuation payment to the person; or
(d) a payment of compensation, or a payment to the person under an
insurance scheme, in relation to the person’s inability to earn, derive or
receive income from that remunerative work; or
(e) a leave payment to the person; or
(f) a payment to the person by a former employer of the person in relation
to the termination of the person’s employment; or
(g) a comparable foreign payment.
(1B) For the avoidance of doubt, if:
(a) a person is treated, for the purposes of working out the
person’s ordinary income, as having earned, derived or received any
ordinary income that was in fact earned, derived or received, or taken to have
been earned, derived or received, by the partner of the person; and
(b) that ordinary income would be characterised as employment income in
the hands of the partner if the partner were not a member of a couple;
then, for the purposes of this Act, that ordinary income is to be similarly
characterised in the hands of the person.
(1C) For the purposes of paragraph (1A)(e), a leave
payment:
(a) includes a payment in respect of sick leave, annual leave, maternity
leave or long service leave; and
(b) may be made as a lump sum payment, a payment that is one of a series
of regular payments or otherwise; and
(c) is taken to be made to the person if it is made to another
person:
(i) at the direction of the first-mentioned person or of a court;
or
(ii) on behalf of the first-mentioned person; or
(iii) for the benefit of the first-mentioned person; or
(iv) if the first-mentioned person waives or assigns his or her right to
the payment.
6 Subsection 23(1)
Insert:
instalment period, in relation to a person, means a period
that is determined by the Secretary under section 43 of the Social
Security (Administration) Act 1999 to be an instalment period of the
person.
7 After subsection 23(4)
Insert:
(4A) Despite subsection (4), if:
(a) a person is receiving a social security pension or social security
benefit; and
(b) the person’s rate of payment of the pension or benefit is worked
out with regard to the income test module of a rate calculator in
Chapter 3; and
(c) the person has not reached pension age; and
(d) the person or the person’s partner earns, derives or receives,
or is taken to earn, derive or receive, employment income; and
(e) the person would, but for this subsection, cease to be receiving the
pension or benefit on and from a day (the cessation
day):
(i) if paragraph (d) applies to the person—because of the
employment income of the person (either alone or in combination with any other
ordinary income earned, derived or received, or taken to have been earned,
derived or received, by the person) (and after any working credit balance or
student income bank balance of the person is reduced to nil); or
(ii) if paragraph (d) applies to the partner—because of the
employment income of the partner (either alone or in combination with any other
ordinary income earned, derived or received, or taken to have been earned,
derived or received, by the partner) (and after any working credit balance or
student income bank balance of the partner is reduced to nil); and
(f) but for the employment income, or the combined income, referred to in
paragraph (e), the pension or benefit would continue to be payable to the
person on and from the cessation day; and
(g) the person continues to be qualified for the pension or benefit on and
from the cessation day;
then, for the purposes only of the provisions of this Act that are
specified in subsection (4AA), the person is taken to be receiving the
pension or benefit until:
(h) 12 weeks after the end of the instalment period in which the cessation
day occurs; or
(i) the day the person reaches pension age; or
(j) the day the pension or benefit would cease to be payable to the person
for a reason other than the employment income, or the combined income, referred
to in paragraph (e); or
(k) the day the person ceases to be qualified as mentioned in
paragraph (g);
whichever happens first.
(4AA) For the purposes of subsection (4A), the following are the
specified provisions of this Act:
(a) provisions in Chapter 2 that provide for an increase in a
person’s rate of payment by an amount to be known as the approved program
of work supplement;
(b) section 1048;
(c) section 1061PJ;
(d) section 1061Q;
(e) point 1067G-F3;
(f) provisions within the rent assistance module of a rate calculator in
Chapter 3 describing a partner with a rent increased pension;
(g) provisions within the rent assistance module of a rate calculator in
Chapter 3 describing a partner with a rent increased benefit;
(h) provisions within the income test module of a rate calculator in
Chapter 3 prescribing the partner income free area or the partner income
excess for a person.
8 At the end of Part 2.13 of
Chapter 2
Add:
(1) If:
(a) a person is a working credit participant qualified for newstart
allowance; and
(b) either:
(i) the participant commences to earn, derive or receive, or to be taken
to earn, derive or receive, employment income; or
(ii) there is an increase in the employment income that is earned, derived
or received, or taken to be earned, derived or received, by the participant;
and
(c) the participant has a working credit balance greater than nil at the
start of the instalment period of the participant in which the commencement or
increase occurs;
then, for the purpose of determining the participant’s qualification
for employment entry payment, the participant ceases to be qualified for
newstart allowance at the time when the participant would have so ceased if the
participant had not had a working credit balance greater than nil.
(2) If:
(a) a person is a working credit participant to whom widow allowance or a
mature age allowance under Part 2.12B is payable; and
(b) either:
(i) the participant commences to earn, derive or receive, or to be taken
to earn, derive or receive, employment income; or
(ii) there is an increase in the employment income that is earned, derived
or received, or taken to be earned, derived or received, by the participant;
and
(c) the participant has a working credit balance greater than nil at the
start of the instalment period of the participant in which the commencement or
increase occurs;
then, for the purpose of determining the participant’s qualification
for employment entry payment, the allowance referred to in paragraph (a)
ceases to be payable to the participant at the time when it would have so ceased
if the participant had not had a working credit balance greater than
nil.
(3) If:
(a) a person is a working credit participant to whom a partner allowance
is payable; and
(b) either:
(i) the participant commences to earn, derive or receive, or to be taken
to earn, derive or receive, employment income; or
(ii) there is an increase in the employment income that is earned, derived
or received, or taken to be earned, derived or received, by the participant;
and
(c) the participant has a working credit balance greater than nil at the
start of the instalment period of the participant in which the commencement or
increase occurs;
then, for the purpose of determining the participant’s qualification
for employment entry payment, newstart allowance ceases to be payable to the
participant’s partner at the time when it would have so ceased if the
participant had not had a working credit balance greater than nil.
9 After subsection
1061ZB(1)
Insert:
(1A) If:
(a) either:
(i) the person first referred to in subsection (1) commences
employment; or
(ii) there is an increase in the ordinary income from employment of the
person so referred to; and
(b) at the start of the instalment period of the person in which the
commencement or increase occurs, the person’s working credit balance is
greater than nil; and
(c) the balance is subsequently reduced to nil because of the commencement
or increase;
subsection (1) has effect as if the reference to 26 weeks after the
commencement or increase were a reference to 26 weeks after the day on which the
balance is reduced to nil.
(1B) If:
(a) either:
(i) the partner of the person first referred to in subsection (1)
commences employment; or
(ii) there is an increase in the ordinary income from employment of the
partner of the person so referred to; and
(b) at the start of the instalment period of the partner in which the
commencement or increase occurs:
(i) the partner is a working credit participant or a person to whom the
student income bank applies; and
(ii) the partner’s working credit balance or student income bank
balance is greater than nil; and
(c) the balance is subsequently reduced to nil because of the commencement
or increase;
subsection (1) has effect as if the reference to 26 weeks after the
commencement or increase were a reference to 26 weeks after the day on which the
balance is reduced to nil.
10 Section 1061ZB(2)
After “Subsection (1)”, insert “(including that
subsection as modified by subsection (1A) or (1B))”.
11 Subsection 1061ZB(3)
After “subsection (1)”, insert “(including that
subsection as modified by subsection (1A) or (1B))”.
12 After subsection
1061ZC(1)
Insert:
(1A) If:
(a) either:
(i) the person first referred to in subsection (1) commences
employment; or
(ii) there is an increase in the ordinary income from employment of the
person so referred to; and
(b) at the start of the instalment period of the person in which the
commencement or increase occurs:
(i) the person is a working credit participant; and
(ii) the person’s working credit balance is greater than nil;
and
(c) the balance is subsequently reduced to nil because of the commencement
or increase;
subsection (1) has effect as if the reference to 26 weeks after the
commencement or increase were a reference to 26 weeks after the day on which the
balance is reduced to nil.
(1B) If:
(a) either:
(i) the partner of the person first referred to in subsection (1)
commences employment; or
(ii) there is an increase in the ordinary income from employment of the
partner of the person so referred to; and
(b) at the start of the instalment period of the partner in which the
commencement or increase occurs:
(i) the partner is a working credit participant or a person to whom the
student income bank applies; and
(ii) the partner’s working credit balance or student income bank
balance is greater than nil; and
(c) the balance is subsequently reduced to nil because of the commencement
or increase;
subsection (1) has effect as if the reference to 26 weeks after the
commencement or increase were a reference to 26 weeks after the day on which the
balance is reduced to nil.
13 Subsections 1061ZC(2), (3) and
(4)
After “subsection (1)”, insert “(including that
subsection as modified by subsection (1A) or (1B))”.
14 Paragraph 1061ZD(2)(c)
Repeal the paragraph, substitute:
(c) because of the commencement of that employment, the person ceases
(having regard, where appropriate, to the operation of section 1073J) to be
qualified for the disability support pension.
15 Paragraph 1061ZD(3)(b)
Repeal the paragraph, substitute:
(b) because there is an increase in the person’s ordinary income
from employment (and after any working credit balance of the person is reduced
to nil), the disability support pension ceases to be payable to the
person.
16 Paragraph 1061ZE(2)(d)
Repeal the paragraph, substitute:
(d) the person ceases to be qualified for wife pension because the partner
of the person:
(i) commences that employment; and
(ii) as a result, ceases (having regard, where appropriate, to the
operation of section 1073J) to be qualified for the disability support
pension.
17 Paragraph 1061ZE(3)(c)
Repeal the paragraph, substitute:
(c) the wife pension ceases to be payable to the person because there is
an increase in the ordinary income of the person’s partner from employment
(and after any working credit balance of the partner is reduced to
nil).
18 After
section 1061ZE
Insert:
(1) This section does not apply in any case where a person is qualified
for a pensioner concession card under section 1061ZB, 1061ZC, 1061ZD or
1061ZE.
(2) If:
(a) a person is receiving a social security pension or a social security
benefit; and
(b) the person’s rate of payment of the pension or benefit is worked
out with regard to the income test module of a rate calculator in
Chapter 3; and
(c) the person has not reached pension age; and
(d) the person is qualified for a pensioner concession card; and
(e) the person or the person’s partner earns, derives or receives,
or is taken to earn, derive or receive, employment income; and
(f) a payment mentioned in subsection 1061ZA(1) ceases to be payable to
the person or the person ceases to receive a payment mentioned in subsection
1061ZA(2):
(i) if paragraph (e) applies to the person—because of the
employment income of the person (either alone or in combination with any other
ordinary income earned, derived or received, or taken to have been earned,
derived or received, by the person) (and after any working credit balance of the
person is reduced to nil); or
(ii) if paragraph (e) applies to the partner—because of the
employment income of the partner (either alone or in combination with any other
ordinary income earned, derived or received, or taken to have been earned,
derived or received, by the partner) (and after any working credit balance or
student income bank balance of the partner is reduced to nil); and
(g) but for the employment income, or the combined income, referred to in
paragraph (f), the person would have been, or would have continued to be,
qualified for a pensioner concession card:
(i) under subsection 1061ZA(1)—because the payment referred to in
that subsection would have continued to be payable to the person; or
(ii) under subsection 1061ZA(2)—because the person would have
continued to receive the payment referred to in that subsection;
the person is qualified for a pensioner concession card until:
(h) 12 weeks after the end of the instalment period in which the payment
ceases to be payable to the person or the person ceases to receive the payment,
as the case requires; or
(i) the day the person reaches pension age; or
(j) the day the person would cease to be qualified for a pensioner
concession card as mentioned in paragraph (g) for a reason other than the
employment income, or the combined income, referred to in
paragraph (f);
whichever happens first.
(3) Subject to subsection (5), subsection (2) only applies to a
person while the person is in Australia and is an Australian resident.
(4) If, during the period of 12 weeks referred to in subsection (2),
a person receives an instalment of social security pension or a mature age
allowance under Part 2.12B that relates to one or more days within that
period, the person is not qualified under this section for a pensioner
concession card on the day or the days in relation to which the person receives
the instalment.
(5) In spite of subsection (3), subsection (2) applies to a
person when:
(a) the person is in Australia; and
(b) the social security pension or the social security benefit that the
person had been receiving was received solely because of the operation of the
scheduled international agreement between Australia and New Zealand.
19 Paragraphs 1061ZM(1)(b) and
(c)
Repeal the paragraphs, substitute:
(b) because either:
(i) the person or the partner commences employment; or
(ii) there is an increase in the ordinary income of the person or the
partner from employment;
the person ceases to be an employment-affected person; and
(c) the person has been a qualified recipient for a continuous period of
52 weeks immediately before so ceasing;
20 After
section 1061ZM
Insert:
(1) This section does not apply in any case where a person qualifies for a
health care card under section 1061ZM.
(2) If:
(a) a person is receiving a social security pension or a social security
benefit; and
(b) the person’s rate of payment of the pension or benefit is worked
out with regard to the income test module of a rate calculator in
Chapter 3; and
(c) the person has not reached pension age; and
(d) the person is qualified for a health care card; and
(e) the person or the person’s partner earns, derives or receives,
or is taken to earn, derive or receive, employment income; and
(f) the person ceases to receive a payment mentioned in subsection
1061ZK(5):
(i) if paragraph (e) applies to the person—because of the
employment income of the person (either alone or in combination with any other
ordinary income earned, derived or received, or taken to have been earned,
derived or received, by the person) (and after any working credit balance of the
person is reduced to nil); or
(ii) if paragraph (e) applies to the partner—because of the
employment income of the partner (either alone or in combination with any other
ordinary income earned, derived or received, or taken to have been earned,
derived or received, by the partner) (and after any working credit balance or
student income bank balance of the partner is reduced to nil); and
(g) but for the employment income, or the combined income, referred to in
paragraph (f), the person would have been, or would have continued to be,
qualified for a health care card under section 1061ZK because the person
would have continued to receive the payment mentioned in subsection
1061ZK(5);
the person is qualified for a health care card until:
(h) 12 weeks after the end of the instalment period in which the person
ceases to receive the pension or benefit; or
. (i) the day the person reaches pension age; or
(j) the day the person would cease to be qualified for a health care card
as mentioned in paragraph (g) for a reason other than the employment
income, or the combined income, referred to in paragraph (f);
whichever happens first.
(3) If, during the period of 12 weeks referred to in subsection (2),
a person receives a payment of a social security pension or benefit specified in
the definition of employment-affected person in
subsection (4) that relates to one or more days within that period, the
person ceases to be qualified under this section for a health care card on the
day on which the person receives the payment.
(4) In this section:
employment-affected person has the same meaning as it has for
the purposes of section 1061ZM.
(5) This section has effect subject to section 1061ZN.
21 Point 1067G-H1 (step 1 of the method
statement, note)
Repeal the note.
22 Section 1067G (at the end of Module
J)
Add:
Opening balance following cancellation of another social security
pension or benefit
1067G-J7 If:
(a) a person ceases to be a working credit participant because of a
determination to cancel, or an automatic cancellation of, the person’s
social security pension or social security benefit; and
(b) the person had a working credit balance greater than nil immediately
before the date of effect of the determination or cancellation; and
(c) the person makes a claim, or is taken to have made a claim, for a
youth allowance; and
(d) the Secretary determines that the claim is to be granted with effect
from a day within 12 months after the date of effect mentioned in
paragraph (b); and
(e) the person becomes a person to whom this Module applies on a day (the
module application day), being either the day with effect from
which the claim is granted or a day following that day;
the working credit balance mentioned in paragraph (b) becomes the
opening balance of the income bank credit applicable to the person on the module
application day.
Opening balance following suspension of youth allowance
1067G-J8 If:
(a) a person ceases to be a working credit participant because of a
determination to suspend the person’s youth allowance; and
(b) the person had a working credit balance greater than nil immediately
before the date of effect of the determination; and
(c) within 12 months after the date of effect of the
determination:
(i) the person commences to undertake full-time study; and
(ii) the payment of the person’s youth allowance is resumed;
and
(d) the person becomes a person to whom this module applies on the day
with effect from which the person’s youth allowance is resumed;
the working credit balance mentioned in paragraph (b) becomes the
opening balance of the income bank credit applicable to the person on the day
mentioned in paragraph (d).
Opening balance following suspension and subsequent cancellation of
another social security pension or benefit
1067G-J9 If:
(a) a person ceases to be a working credit participant because of a
determination to suspend the person’s social security pension or social
security benefit; and
(b) while the person’s pension or benefit is suspended, there is a
determination to cancel the person’s pension or benefit; and
(c) the person had a working credit balance greater than nil immediately
before the date of effect of the suspension determination; and
(d) the person makes a claim, or is taken to have made a claim, for a
youth allowance; and
(e) the Secretary determines that the claim is to be granted with effect
from a day within 12 months after the date of effect mentioned in
paragraph (c); and
(f) the person becomes a person to whom this Module applies on a day (the
module application day), being either the day with effect from
which the claim is granted or a day following that day;
the working credit balance mentioned in paragraph (c) becomes the
opening balance of the income bank credit applicable to the person on the module
application day.
Opening balance following commencement of full-time study by youth
allowance recipient
1067G-J10 If:
(a) a person is receiving youth allowance and is not undertaking full-time
study; and
(b) the person commences to undertake full-time study; and
(c) either because of a determination made as a result of the commencement
or, if no determination is necessary, because of the commencement itself, the
person, on a day (the module application day):
(i) ceases to be a working credit participant; and
(ii) becomes a person to whom this Module applies; and
(d) the person had a working credit balance greater than nil immediately
before the module application day;
the working credit balance mentioned in paragraph (d) becomes the
opening balance of the income bank credit applicable to the person on the module
application day.
23 Point 1067L-D1 (note to step 1 of the method
statement)
Repeal the note.
24 Section 1067L (at the end of Module
E)
Add:
Opening balance following cancellation of another social security
pension or benefit
1067L-E6 If:
(a) a person ceases to be a working credit participant because of a
determination to cancel, or an automatic cancellation of, the person’s
social security pension or social security benefit; and
(b) the person had a working credit balance greater than nil immediately
before the date of effect of the determination or cancellation; and
(c) the person makes a claim, or is taken to have made a claim, for an
austudy payment; and
(d) the Secretary determines that the claim is to be granted with effect
from a day within 12 months after the date of effect mentioned in
paragraph (b); and
(e) the person becomes a person to whom this Module applies on a day (the
module application day), being either the day with effect from
which the claim is granted or a day following that day; and
(f) the person has not reached pension age before the module application
day;
the working credit balance mentioned in paragraph (b) becomes the
opening balance of the income bank credit applicable to the person on the module
application day.
Opening balance following suspension and subsequent cancellation of
another social security pension or benefit
1067L-E7 If:
(a) a person ceases to be a working credit participant because of a
determination to suspend the person’s social security pension or social
security benefit; and
(b) while the person’s pension or benefit is suspended, there is a
determination to cancel the person’s pension or benefit; and
(c) the person had a working credit balance greater than nil immediately
before the date of effect of the suspension determination; and
(d) the person makes a claim, or is taken to have made a claim, for an
austudy payment; and
(e) the Secretary determines that the claim is to be granted with effect
from a day within 12 months after the date of effect mentioned in
paragraph (c); and
(f) the person becomes a person to whom this Module applies on a day (the
module application day), being either the day with effect from
which the claim is granted or a day following that day; and
(g) the person has not reached pension age before the module application
day;
the working credit balance mentioned in paragraph (c) becomes the
opening balance of the income bank credit applicable to the person on the module
application day.
25 Point 1068B-D19 (examples 1 and
2)
Repeal the examples.
26 After Division 1 of
Part 3.10
Insert:
(1) Employment income:
(a) that is a lump sum amount either:
(i) in respect of a period greater than a fortnight; or
(ii) resulting from remunerative work although not in respect of any
particular period; and
(b) that is earned, derived or received, or is taken to have been earned,
derived or received, by a person:
(i) who is receiving a social security pension; and
(ii) whose rate of payment of that pension is worked out with regard to
the income test module of a rate calculator in this Chapter; and
(iii) who has not reached pension age;
is to be taken to have been earned, derived or received over such period,
not exceeding 52 weeks, as the Secretary determines.
(2) The person’s employment income for the period determined by the
Secretary is to be reduced to a fortnightly rate rounded to the nearest cent
(rounding 0.5 cents downwards).
If:
(a) a person is receiving a social security pension or a social security
benefit; and
(b) the person’s rate of payment of the pension or benefit is worked
out with regard to the income test module of a rate calculator in this Chapter;
and
(c) the person has not reached pension age; and
(d) the person earns, derives or receives, or is taken, either by virtue
of the operation of section 1073A or any other provision of this Act, to
earn, derive or receive, employment income during the whole or a part of a
particular instalment period of the person;
the person is taken to earn, derive or receive, on each day in that
instalment period, an amount of employment income worked out by dividing the
total amount of the employment income referred to in paragraph (d) by the
number of days in the period.
If, in accordance with the operation of section 1073B, a person is
taken to earn, derive or receive a particular amount of employment income on
each day in an instalment period:
(a) the rate of the person’s employment income on a fortnightly
basis for that day may be worked out by multiplying that amount by 14;
and
(b) the rate of the person’s employment income on a yearly basis for
that day may be worked out by multiplying that amount by 364.
The rules in this Division apply to a person (a working credit
participant):
(a) who is receiving a social security pension or a social security
benefit; and
(b) whose rate of payment of the pension or benefit is worked out with
regard to the income test module of a rate calculator in this Chapter;
and
(c) who has not reached pension age; and
(d) to whom the student income bank does not apply.
Basic opening balance rule
(1) Subject to this section, each working credit participant has, on
becoming a working credit participant, a working credit opening balance of
nil.
Opening balance following cancellation of social security pension or
benefit
(2) If:
(a) a person ceases to be a working credit participant or a person to whom
the student income bank applies because of a determination to cancel, or an
automatic cancellation of, the person’s social security pension or social
security benefit; and
(b) the person had a working credit balance or a student income bank
balance greater than nil immediately before the date of effect of the
determination or cancellation; and
(c) the person makes, or is taken to have made, a new claim for a social
security pension or social security benefit; and
(d) the Secretary determines that the new claim is to be granted with
effect from a day within 12 months after the date of effect mentioned in
paragraph (b); and
(e) the person becomes a working credit participant on a day (the
participation day), being either the day with effect from which
the new claim is granted or a day following that day;
the working credit balance mentioned in paragraph (b), or the student
income bank balance mentioned in that paragraph to the extent that it does not
exceed $1,000, becomes the opening balance of the working credit applicable to
the person on the participation day.
Opening balance following suspension of social security pension or
benefit
(3) If:
(a) a person ceases to be a working credit participant because of a
determination to suspend the person’s social security pension or social
security benefit; and
(b) the person had a working credit balance greater than nil immediately
before the date of effect of the determination; and
(c) within 12 months after the date of effect of the determination, the
payment of the person’s pension or benefit is resumed; and
(d) the person becomes a working credit participant on the day with effect
from which the person’s pension or benefit is resumed;
the working credit balance mentioned in paragraph (b) becomes the
opening balance of the working credit applicable to the person on the day
mentioned in paragraph (d).
Opening balance following suspension and subsequent cancellation of
social security pension or benefit
(4) If:
(a) a person ceases to be a working credit participant or a person to whom
the student income bank applies because of a determination to suspend the
person’s social security pension or social security benefit; and
(b) while the person’s pension or benefit is suspended there is a
determination to cancel the person’s pension or benefit; and
(c) the person had a working credit balance or a student income bank
balance greater than nil immediately before the date of effect of the suspension
determination; and
(d) the person makes, or is taken to have made, a new claim for a social
security pension or social security benefit; and
(e) the Secretary determines that the new claim is to be granted with
effect from a day within 12 months after the date of effect mentioned in
paragraph (c); and
(f) the person becomes a working credit participant on a day (the
participation day), being either the day with effect from which
the new claim is granted or a day following that day;
the working credit balance mentioned in paragraph (c), or the student
income bank balance mentioned in that paragraph to the extent that it does not
exceed $1,000, becomes the opening balance of the working credit applicable to
the person on the participation day.
Opening balance following cessation of full-time study by youth
allowance recipient
(5) If:
(a) a person is receiving youth allowance and is undertaking full-time
study; and
(b) the person ceases to undertake full-time study; and
(c) either because of a determination made as a result of that cessation
or, if no determination is necessary, because of the cessation itself, the
person, on a day (the participation day):
(i) ceases to be a person to whom the student income bank set out in
Module J of the Youth Allowance Rate Calculator applies; and
(ii) becomes a working credit participant; and
(d) the person had a student income bank balance greater than nil
immediately before the participation day;
the student income bank balance mentioned in paragraph (d), to the
extent that it does not exceed $1,000, becomes the opening balance of the
working credit applicable to the person on the participation day.
Opening balance following cessation of ABSTUDY payment
(6) If:
(a) a person to whom the income bank under the ABSTUDY scheme applies
stops being such a person; and
(b) the person becomes a working credit participant within 12 months after
so stopping; and
(c) immediately before so stopping, the person had a credit balance
greater than nil under the scheme;
the credit balance, to the extent that it does not exceed $1,000, becomes
the opening balance of the working credit applicable to the person on the day on
which the person becomes a working credit participant.
This section determines, in respect of each working credit participant
who is receiving a social security benefit, whether, for each day in an
instalment period:
(a) there is an accrual to the participant’s working credit balance;
or
(b) the participant’s working credit balance is unaffected;
or
(c) the participant’s working credit balance is depleted;
and, if there is an accrual to, or a depletion from, the
participant’s working credit balance, the amount of that accrual or
depletion.
Method statement
Step 1. Work out the amount of the participant’s employment
income earned, derived or received on the day. This could be a nil amount or it
could be an amount that is taken, under section 1073B, to have been earned,
derived or received on the day.
Step 2. Multiply the amount determined under step 1 by 14. This is
the participant’s rate of employment income on a fortnightly basis for the
day.
Step 3. Add to the participant’s rate of employment income on
a fortnightly basis for the day the participant’s rate of any other
ordinary income on a fortnightly basis for the day. This is the
participant’s fortnightly rate of total ordinary income on a fortnightly
basis for the day.
Step 4. If the participant’s rate of total ordinary income on
a fortnightly basis for the day is less than $48, there is an accrual to the
participant’s working credit balance for the day of an amount equal to one
fourteenth of the amount by which $48 exceeds that rate. The maximum working
credit balance is $1,000.
Step 5. If the participant’s rate of total ordinary income on
a fortnightly basis for the day is at least $48 but does not exceed the ordinary
income free area applicable to the participant for the day under the income test
module of the appropriate rate calculator, the participant’s working
credit balance for the day is neither increased nor reduced.
Step 6. If the participant’s rate of total ordinary income on
a fortnightly basis for the day is at least $48 and exceeds the
participant’s applicable ordinary income free area for the day, the
participant’s working credit balance, if it is greater than nil on the
day, is depleted on that day by the least of:
(a) the amount of employment income determined under step 1; or
(b) one fourteenth of the amount by which the participant’s rate of
total ordinary income on a fortnightly basis exceeds the participant’s
applicable ordinary income free area; or
(c) the participant’s available working credit balance.
If, under section 1073F, the working credit balance of a working
credit participant is depleted on a particular day, the participant’s rate
of ordinary income on a fortnightly basis for that day is reduced by the working
credit depletion amount applicable to that day, determined under step 6 of the
method statement, multiplied by 14.
This section determines, in respect of each working credit participant
who is receiving a social security pension, whether, for each day in an
instalment period:
(a) there is an accrual to the participant’s working credit balance;
or
(b) the participant’s working credit balance is unaffected;
or
(c) the participant’s working credit balance is depleted;
and, if there is an accrual to, or a depletion from, the
participant’s working credit balance, the amount of that accrual or
depletion.
Method statement
Step 1. Work out the amount of the participant’s employment
income earned, derived or received on the day. This could be a nil amount or it
could be an amount that is taken, under section 1073B, to have been earned,
derived or received on the day.
Step 2. Multiply the amount determined under step 1 by 364. This is
the participant’s rate of employment income on a yearly basis for the
day.
Step 3. Add to the participant’s rate of employment income on
a yearly basis for the day the participant’s rate of any other ordinary
income on a yearly basis for the day. This is the participant’s rate of
total ordinary income on a yearly basis for the day.
Step 4. Divide the participant’s rate of total ordinary income
on a yearly basis for the day by 26. This is the participant’s rate of
total ordinary income, expressed on a fortnightly basis, for the day.
Step 5. Divide the yearly ordinary income free area applicable to
the participant for the day under the ordinary income test module of the
appropriate rate calculator by 26. This is the participant’s applicable
ordinary income free area, expressed on a fortnightly basis, for the
day.
Step 6. If the participant’s rate of total ordinary income,
expressed on a fortnightly basis, for the day, is less than $48, there is an
accrual to the participant’s working credit balance, for the day, of an
amount equal to one fourteenth of the amount by which $48 exceeds that rate. The
maximum working credit balance is $1,000.
Step 7. If the participant’s rate of total ordinary income,
expressed on a fortnightly basis, for the day, is at least $48 but does not
exceed the participant’s applicable ordinary income free area, expressed
on a fortnightly basis for the day in accordance with step 5, the
participant’s working credit balance for the day is neither increased nor
reduced.
Step 8. If the participant’s rate of total ordinary income,
expressed on a fortnightly basis, for the day, is at least $48 and exceeds the
participant’s applicable ordinary income free area, expressed on a
fortnightly basis for the day in accordance with step 5, the participant’s
working credit balance, if it is greater than nil on the day, is depleted on
that day by the least of:
(a) the amount of employment income determined under step 1; or
(b) one fourteenth of the amount by which the participant’s rate of
total ordinary income, expressed on a fortnightly basis, exceeds the
participant’s applicable ordinary income free area, expressed on that
basis; or
(c) the participant’s available working credit balance.
If, under section 1073H, the working credit balance of a working
credit participant is depleted on a particular day, the participant’s rate
of ordinary income on a yearly basis for that day is reduced by the working
credit depletion amount applicable to that day, determined under step 8 of the
method statement, multiplied by 364.
If:
(a) a person receiving disability support pension, carer payment, youth
allowance, newstart allowance or sickness allowance is a working credit
participant; and
(b) either:
(i) the participant commences to earn, derive or receive, or to be taken
to earn, derive or receive, employment income; or
(ii) there is an increase in the employment income that is earned, derived
or received, or taken to be earned, derived or received, by the participant;
and
(c) the participant has a working credit balance greater than nil at the
start of the instalment period of the participant in which the commencement or
increase occurs; and
(d) but for the commencement or increase, the participant would have
continued to be qualified for the payment mentioned in paragraph (a) until
the earlier of:
(i) a day determined under Division 8 or 9 of Part 3 of the
Administration Act; or
(ii) the day on which the participant’s working credit balance is
reduced to nil;
the participant is to be treated as if he or she had continued to be so
qualified until the earlier of the days determined as referred to in
subparagraphs (d)(i) and (ii).
Part 3—Amendment
of the Social Security (Administration) Act 1999
Social Security
(Administration) Act 1999
27 Paragraph 68(2)(b)
Omit “a statement”, substitute “one or more
statements”.
28 Paragraph 72(1)(d)
Repeal the paragraph, substitute:
(d) must specify:
(i) in the case of a notice under section 68 that requires the giving
of more than one statement, each relating to the payment of the social security
payment in respect of a period—the date by which the person is to give
each statement to the Department; or
(ii) in any other case—the period within which the person is to give
the information or statement to the Department; and
29 After subsection 72(2)
Insert:
(2A) A date specified for the purposes of subparagraph (1)(d)(i) must
be no earlier than 7 days after:
(i) the day on which the notice under section 68 is given;
or
(ii) the day on which the period specified in the notice in relation to
that first mentioned date begins;
whichever is the later.
30 Subsection 72(3)
Omit “subsections (4), (5), (6) and (7), the period specified
for the purpose of paragraph (1)(d)”, substitute
“subsections (4), (6) and (7), the period specified for the purpose
of subparagraph (1)(d)(ii)”.
31 Subsections 72(4) and
(6)
Omit “paragraph (1)(d)”, substitute
“subparagraph (1)(d)(ii)”.
32 Paragraph 85(1)(a)
Repeal the paragraph, substitute:
(a) a person’s social security payment is cancelled by force of
section 93 or 94 or the Secretary cancels or suspends a person’s
social security payment under section 80, 81 or 82; and
33 Section 93
Omit “If:”, substitute “Subject to subsection (2),
if:”.
34 Paragraphs 93(g) and (h)
Omit “by force of this section”, substitute “by force of
this subsection”.
35 At the end of
section 93
Add:
(2) If:
(a) a person who is receiving a social security payment is given a notice
under subsection 68(2); and
(b) the notice requires the person to inform the Department of the
occurrence of an event or change of circumstances within a specified period (the
notification period); and
(c) the event or change of circumstances occurs; and
(d) the person informs the Department of the occurrence of the event or
change of circumstances within the notification period in accordance with the
notice; and
(e) because of the event or change of circumstances, the person’s
working credit balance or student income bank balance is reduced to nil in an
instalment period (the nil instalment period) of the person that
is the same as, or later than, the instalment period in which the event or
change of circumstances occurs (the event instalment period);
and
(f) either because of the reduction of the balance to nil or because of
the balance having already been reduced to nil—the social security payment
would, but for this subsection, cease to be payable to the person; and
(g) the social security payment is not cancelled before the end of the nil
instalment period;
the social security payment continues to be payable to the person until a
day determined in accordance with subsection (3) and is then cancelled by
force of this subsection.
(3) For the purposes of subsection (2), the day until which the
social security payment continues to be payable to the person is:
(a) if the cancellation is attributable to the reduction of the balance
referred to in paragraph (2)(e) to nil and the payment is so cancelled
during the instalment period (the next instalment period)
following the nil instalment period—the later of:
(i) the day before the day on which the balance was reduced to nil;
or
(ii) the end of the event instalment period; and
(b) if the cancellation is attributable to the balance having already been
reduced to nil and the payment is so cancelled during the next instalment
period—the later of:
(i) the day before the first day on which the opening balance was nil;
or
(ii) the end of the event instalment period; and
(c) if the cancellation is attributable to the reduction of the balance to
nil but the payment is not so cancelled during the next instalment
period—the later of:
(i) the day before the day on which the balance was reduced to nil;
or
(ii) the end of the notification period; and
(d) if the cancellation is attributable to the balance having already been
reduced to nil but the payment is not so cancelled during the next instalment
period—the later of:
(i) the day before the first day on which the opening balance was nil;
or
(ii) the end of the notification period.
36 Section 94
Omit “If:”, substitute “Subject to subsection (2),
if:”.
37 Section 94
Omit “the social security payment ceases to be payable to the
person”, substitute “the social security payment is cancelled, by
force of this subsection,”.
38 At the end of
section 94
Add:
(2) If:
(a) a person who is receiving a social security payment is given a notice
under subsection 68(2); and
(b) the notice requires the person to inform the Department of the
occurrence of an event or change of circumstances within a specified period (the
notification period); and
(c) the event or change of circumstance occurs; and
(d) the person does not inform the Department of the occurrence of the
event or change of circumstances within the notification period in accordance
with the notice; and
(e) because of the event or change of circumstances, the person’s
working credit balance or student income bank balance is reduced to nil in an
instalment period of the person that is the same as, or later than, the
instalment period in which the event or change of circumstances occurs;
and
(f) either because of the reduction of the balance to nil or because of
the balance having already been reduced to nil—the social security payment
ceases to be payable to the person;
the social security payment is cancelled, by force of this subsection,
on:
(g) if the cancellation is attributable to the reduction of the balance to
nil—the day on which the balance was so reduced; and
(h) if the cancellation is attributable to the balance having already been
reduced to nil—the first day on which the opening balance was
nil.
39 Subsection 95(1)
Repeal the subsection, substitute:
(1) If:
(a) a person who is receiving a social security payment is given a notice
under subsection 68(2) requiring the person to give the Department a statement
or a number of statements; and
(b) the notice relates to the payment of the social security payment in
respect of a period or a number of periods specified in the notice;
and
(c) the person does not comply with the notice so far as it relates to a
particular period;
then, subject to subsection (2), the social security payment is
cancelled, by force of this section, on the first day in that period.
40 Section 98
Omit “If:”, substitute “Subject to subsection (2),
if:”.
41 At the end of
section 98
Add:
(2) If:
(a) a person is receiving a social security payment; and
(b) the person’s partner starts to receive:
(i) a social security pension or benefit; or
(ii) a service pension; and
(c) because the partner starts to receive that pension or benefit, the
person’s working credit balance or student income bank balance is reduced
to nil; and
(d) either because of the reduction of the balance to nil or because of
the balance having already been reduced to nil—the person’s social
security payment rate is to be reduced;
the social security payment becomes payable to the person at the reduced
rate on:
(e) if the rate reduction is attributable to the reduction of the balance
to nil—the day on which the balance was so reduced; and
(f) if the rate reduction is attributable to the balance having already
been reduced to nil—the first day on which the opening balance was
nil.
42 Section 99
Omit “If:”, substitute “Subject to subsection (2),
if:”.
43 At the end of
section 99
Add:
(2) If:
(a) a person who is receiving a social security payment is given a notice
under subsection 68(2); and
(b) the notice requires the person to inform the Department of the
occurrence of an event or change of circumstances within a specified period (the
notification period); and
(c) the event or change of circumstances occurs; and
(d) the person informs the Department of the occurrence of the event or
change of circumstances within the notification period in accordance with the
notice; and
(e) because of the event or change of circumstances, the person’s
working credit balance or student income bank balance is reduced to nil in an
instalment period (the nil instalment period) of the person that
is the same as, or later than, the instalment period in which the event or
change of circumstances occurs (the event instalment period);
and
(f) either because of the reduction of the balance to nil or because of
the balance having already been reduced to nil—the rate of the
person’s social security payment is to be reduced; and
(g) the person’s rate of payment is not so reduced before the end of
the nil instalment period;
the social security payment becomes payable to the person at the reduced
rate from the day immediately after the day determined in accordance with
subsection (3).
(3) For the purposes of subsection (2), the day immediately after
which the social security payment becomes payable to the person at the reduced
rate is:
(a) if the rate reduction is attributable to the reduction of the balance
referred to in paragraph (2)(e) to nil and the rate is so reduced during
the instalment period (the next instalment period) following the
nil instalment period—the later of:
(i) the day before the day on which the balance was reduced to nil;
or
(ii) the end of the event instalment period; and
(b) if the rate reduction is attributable to the balance having already
been reduced to nil and the rate is so reduced during the next instalment
period—the later of:
(i) the day before the first day on which the opening balance was nil;
or
` (ii) the end of the event instalment period; and
(c) if the rate reduction is attributable to the reduction of the balance
to nil but the rate is not so reduced during the next instalment
period—the later of:
(i) the day on which the balance was reduced to nil; or
(ii) the end of the notification period; and
(d) if the rate reduction is attributable to the balance having already
been reduced to nil but the rate is not so reduced during the next instalment
period—the later of:
(i) the day before the first day on which the opening balance is nil;
or
(ii) the end of the notification period.
44 Section 100
Omit “If:”, substitute “Subject to subsection (2),
if:”.
45 Paragraph 100(1)(e)
Omit “and”.
46 Paragraph 100(1)(f)
Repeal the paragraph.
47 At the end of
section 100
Add:
(2) If:
(a) a person who is receiving a social security payment is given a notice
under subsection 68(2); and
(b) the notice requires the person to inform the Department of the
occurrence of an event or change of circumstances within a specified period (the
notification period); and
(c) the event or change of circumstances occurs; and
(d) the person does not inform the Department of the occurrence of the
event or change of circumstances within the notification period in accordance
with the notice; and
(e) because of the event or change of circumstances, the person’s
working credit balance or student income bank balance is reduced to nil in an
instalment period of the person that is the same as, or later than, the
instalment period in which the event or change of circumstances occurs;
and
(f) either because of the reduction of the balance to nil or because of
the balance having already been reduced to nil—the rate of the
person’s social security payment is to be reduced;
the social security payment becomes payable to the person at the reduced
rate on:
(g) if the rate reduction is attributable to the reduction of the balance
to nil—the day on which the balance was so reduced; and
(h) if the rate reduction is attributable to the balance having already
been reduced to nil—the first day on which the opening balance was
nil.
48 Subsection 110(1)
Omit “Subject to subsections (2) to (11)”, substitute
“Subject to subsections (1A) to (11)”.
49 After subsection 110(1)
Insert:
(1A) If a favourable determination is made in relation to a person who has
not reached pension age:
(a) following the person’s having informed the Department of the
occurrence of an event or change of circumstances; and
(b) because, in an instalment period of the person:
(i) there is a decrease in the amount of employment income that is earned,
derived or received, or that is taken to have been earned, derived or received,
by the person; or
(ii) the person has ceased to earn, derive or receive, or to be taken to
earn, derive or receive, employment income;
the determination takes effect on the first day of the instalment period,
or on the first day of the instalment period in which the person so informs the
Department, whichever is the later.
50 Subsection 110(2)
Omit “If a favourable determination”, substitute “Subject
to subsection (2A), if a favourable determination”.
51 After subsection 110(2)
Insert:
(2A) If a favourable determination is made in relation to a person who has
not reached pension age:
(a) following the person’s having given the Department a statement
about a matter in accordance with a notice under section 68 that relates to
the payment of the social security payment in respect of an instalment period
specified in the notice; and
(b) because, in the instalment period:
(i) there is a decrease in the amount of employment income that is earned,
derived or received, or that is taken to have been earned, derived or received,
by the person; or
(ii) the person has ceased to earn, derive or receive, or to be taken to
earn, derive or receive, employment income;
the determination takes effect on the first day of the instalment
period.
52 Subsection 110(3)
Omit “If:”, substitute “Subject to subsection (3A),
if:”.
53 After subsection 110(3)
Insert:
(3A) If:
(a) a person and his or her partner (the partner) are each
receiving a social security payment; and
(b) the partner has not reached pension age; and
(c) the partner has been given a notice under section 68 that
requires the partner to give the Department a statement; and
(d) the notice relates to the payment of the partner’s social
security payment in respect of an instalment period specified in the notice;
and
(e) the partner gives the Department a statement, in accordance with the
notice, about a matter that arose during the instalment period; and
(f) following the giving of the statement, a favourable determination is
made in relation to the person’s social security payment; and
(g) the determination is made because, in the instalment period:
(i) there is a decrease in the amount of employment income that is earned,
derived or received, or that is taken to have been earned, derived or received,
by the partner; or
(ii) the partner has ceased to earn, derive or receive, or to be taken to
earn, derive or receive, employment income;
the determination takes effect on the first day of the instalment
period.
54 Section 112
Repeal the section.
55 Subsection 118(2)
Omit “If:”, substitute “Subject to subsections (2A)
and (2B), if:”.
56 After subsection 118(2)
Insert:
(2A) If an adverse determination is made in relation to a person who has
not reached pension age:
(a) following the person’s having informed the Department of the
occurrence of an event or change of circumstances; and
(b) because the person earns, derives or receives, or is taken to earn,
derive or receive, employment income in an instalment period of the
person;
the determination takes effect on:
(c) if the determination is attributable to the reduction, during the
instalment period, of the person’s working credit balance or student
income bank balance to nil—the day on which the balance was so reduced;
and
(d) if the determination is attributable to the person’s having a
working credit balance or a student income bank balance that has already been
reduced to nil during the instalment period—the first day in the
instalment period on which the person’s opening balance was nil;
and
(e) in any other case—the first day of the instalment
period;
so long as the person is not paid an instalment of the social security
payment after the day worked out under paragraph (c), (d) or (e) and before
the determination is made.
(2B) If:
(a) an adverse determination is made in relation to a person following the
person’s having informed the Department of the occurrence of an event or
change of circumstances; and
(b) the determination is made because, in an instalment period of the
person, either:
(i) the person earns, derives or receives, or is taken to earn, derive or
receive, ordinary income other than employment income; or
(ii) the person has reached pension age and earns, derives or receives, or
is taken to earn, derive or receive, employment income; and
(c) the person’s student income bank balance is reduced to nil
during the instalment period;
the determination takes effect on:
(d) if the determination is attributable to the reduction of the student
income bank balance to nil—the day on which the balance was so reduced;
and
(e) if the determination is attributable to the person’s having a
student income bank balance that has already been reduced to nil during the
instalment period—the first day in the instalment period on which the
person’s opening balance was nil;
so long as the person is not paid an instalment of the social security
payment after the day worked out under paragraph (d) or (e) and before the
determination is made.
57 Subsection 118(5)
Omit “If the adverse determination”, substitute “Subject
to subsections (5A) and (5B), if the adverse
determination”.
58 After subsection 118(5)
Insert:
(5A) If an adverse determination is made in relation to a person who has
not reached pension age:
(a) following the person’s having given the Department a statement
about a matter in accordance with a notice under section 68 that relates to
the payment of the social security payment in respect of an instalment period
specified in the notice; and
(b) because the person earns, derives or receives, or is taken to earn,
derive or receive, employment income in the instalment period;
the determination takes effect on:
(c) if the determination is attributable to the reduction, during the
instalment period, of the person’s working credit balance or student
income bank balance to nil—the day on which the balance was so reduced;
and
(d) if the determination is attributable to the person’s having a
working credit balance or a student income bank balance that has already been
reduced to nil during the instalment period—the first day in the
instalment period on which the person’s opening balance was nil;
and
(e) in any other case—the first day of the instalment
period.
(5B) If:
(a) an adverse determination is made in relation to a person following the
person’s having given the Department a statement about a matter in
accordance with a notice under section 68 that relates to the payment of
the social security payment in respect of an instalment period specified in the
notice; and
(b) the determination is made because, in the instalment period,
either:
(i) the person earns, derives or receives, or is taken to earn, derive or
receive, ordinary income other than employment income; or
(ii) the person has reached pension age and earns, derives or receives, or
is taken to earn, derive or receive, employment income; and
(c) the person’s student income bank balance is reduced to nil
during the instalment period;
the determination takes effect on:
(d) if the determination is attributable to the reduction of the student
income bank balance to nil—the day on which the balance was so reduced;
and
(e) if the determination is attributable to the person’s having a
student income bank balance that has already been reduced to nil during the
instalment period—the first day in the instalment period on which the
person’s opening balance was nil.
59 Subsection 118(6)
Omit “If:”, substitute “subject to subsections (6A)
and (6B), if:”.
60 After subsection 118(6)
Insert:
(6A) If:
(a) a person and his or her partner (the partner) are each
receiving a social security payment; and
(b) the partner has not reached pension age; and
(c) the partner is given a notice under section 68 requiring the
partner to give the Department a statement; and
(d) the notice relates to the payment of the partner’s social
security payment in respect of an instalment period specified in the notice;
and
(e) the partner gives the Department a statement, in accordance with the
notice, about a matter that arose during the instalment period; and
(f) following the giving of the statement, an adverse determination is
made in relation to the person’s social security payment; and
(g) the determination is made because the partner earns, derives or
receives, or is taken to earn, derive or receive, employment income in the
instalment period;
the determination takes effect on:
(h) if the adverse determination is attributable to the reduction, during
the instalment period, of the partner’s working credit balance or student
income bank balance to nil—the day on which the balance was so reduced;
and
(i) if the determination is attributable to the partner’s having a
working credit balance or a student income bank balance that has already been
reduced to nil during the instalment period—the first day of the
instalment period on which the opening balance was nil; and
(j) in any other case—the first day of the instalment
period.
(6B) If:
(a) a person and his or her partner (the partner) are each
receiving a social security payment; and
(b) the partner is given a notice under section 68 requiring the
partner to give the Department a statement; and
(c) the notice relates to the payment of the partner’s social
security payment in respect of an instalment period specified in the notice;
and
(d) the partner gives the Department a statement, in accordance with the
notice, about a matter that arose during the instalment period; and
(e) the partner’s student income bank balance is reduced to nil
during the instalment period; and
(f) following the giving of the statement, an adverse determination is
made in relation to the person’s social security payment; and
(g) the determination is made because, in the instalment period,
either:
(i) the partner earns, derives or receives, or is taken to earn, derive or
receive, ordinary income other than employment income; or
(ii) the partner has reached pension age and earns, derives or receives,
or is taken to earn, derive or receive, employment income;
the determination takes effect on:
(h) if the determination is attributable to the reduction of the
partner’s student income bank balance to nil—the day on which the
balance was so reduced; and
(i) if the determination is attributable to the partner’s having a
student income bank balance that has already been reduced to nil during the
instalment period—the first day in the instalment period on which the
partner’s opening balance was nil.
Part 1—Amendment
of the Social Security (Administration) Act 1999
Social Security
(Administration) Act 1999
1 At the end of subsection
202(1)
Add “or the Family Homelessness Prevention and Early Intervention
Pilot”.
2 After paragraph 202(2)(d)
Insert:
(da) for the purposes of the Family Homelessness Prevention and Early
Intervention Pilot; or
3 At the end of
section 202
Add:
(3) The Minister may, by instrument in writing, specify additional
purposes relating to other programs administered by the Department for which
protected information may be obtained under subsection (1), or recorded,
disclosed or otherwise used under subsection (2).
(4) An instrument under subsection (3) is a disallowable instrument
for the purposes of section 46A of the Acts Interpretation Act
1901.
(5) For the purposes of the application of section 48 of the Acts
Interpretation Act 1901, an instrument does not take effect until the end of
the period in which it could be disallowed in either House of the
Parliament.
Part 2—Amendment
of the A New Tax System (Family Assistance) (Administration) Act
1999
A New Tax System (Family
Assistance) (Administration) Act 1999
4 At the end of subsection
162(1)
Add “or of the Family Homelessness Prevention and Early Intervention
Pilot”.
5 After paragraph 162(2)(d)
Insert:
(da) for the purpose of the Family Homelessness Prevention and Early
Intervention Pilot; or
6 At the end of
section 162
Add:
(3) The Minister may, by instrument in writing, specify additional
purposes relating to other programs administered by the Department for which
protected information may be obtained under subsection (1), or recorded,
disclosed or otherwise used under subsection (2).
(4) An instrument under subsection (3) is a disallowable instrument
for the purposes of section 46A of the Acts Interpretation Act
1901.
(5) For the purposes of the application of section 48 of the Acts
Interpretation Act 1901, an instrument does not take effect until the end of
the period in which it could be disallowed in either House of the
Parliament.