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SOCIAL SERVICES AND OTHER LEGISLATION AMENDMENT (2014 BUDGET MEASURES NO. 4) BILL 2014

 

 

 

2013-2014 

 

The Parliament of the 

Commonwealth of Australia 

 

HOUSE OF REPRESENTATIVES 

 

 

 

 

Presented and read a first time 

 

 

 

 

Social Services and Other Legislation 

Amendment (2014 Budget Measures 

No. 4) Bill 2014 

 

No.      , 2014 

 

(Social Services) 

 

 

 

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

security, family assistance, veterans' entitlements 

and farm household support, and for related 

purposes 

   

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

i 

 

Contents 

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

 

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

 

Schedules ........................................................................................... 3

 

Schedule 1--Indexation

 

4

 

A New Tax System (Family Assistance) Act 1999

 

4

 

Social Security Act 1991

 

4

 

Schedule 2--Family tax benefit

 

6

 

Part 1--Amendments commencing on Royal Assent

 

6

 

A New Tax System (Family Assistance) Act 1999

 

6

 

Part 2--Amendments commencing 1 July 2015

 

7

 

A New Tax System (Family Assistance) Act 1999

 

7

 

Schedule 3--Waiting periods

 

12

 

Social Security Act 1991

 

12

 

Schedule 4--Pensioner education supplement

 

23

 

Part 1--Main amendments

 

23

 

Social Security Act 1991

 

23

 

Social Security (Administration) Act 1999

 

25

 

Part 2--Other amendments

 

27

 

A New Tax System (Family Assistance) Act 1999

 

27

 

Farm Household Support Act 2014

 

27

 

Income Tax Assessment Act 1997

 

27

 

Part 3--Application and saving provisions

 

28

 

Schedule 5--Education entry payment

 

30

 

Part 1--Main amendments

 

30

 

Social Security Act 1991

 

30

 

Social Security (Administration) Act 1999

 

31

 

Veterans' Entitlements Act 1986

 

31

 

 

 

ii 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Part 2--Other amendments

 

33

 

Farm Household Support Act 2014

 

33

 

Income Tax Assessment Act 1936

 

33

 

Income Tax Assessment Act 1997

 

33

 

Taxation Administration Act 1953

 

34

 

Part 3--Application and saving provisions

 

35

 

Schedule 6--Age requirements for various Commonwealth 

payments

 

37

 

Part 1--Main amendments

 

37

 

Social Security Act 1991

 

37

 

Part 2--Other amendments

 

43

 

Farm Household Support Act 2014

 

43

 

Schedule 7--Exclusion periods

 

45

 

Part 1--Main amendments

 

45

 

Social Security Act 1991

 

45

 

Part 2--Contingent amendments

 

54

 

Social Security Act 1991

 

54

 

Part 3--Other amendments

 

55

 

Farm Household Support Act 2014

 

55

 

Social Security Act 1991

 

55

 

Social Security (Administration) Act 1999

 

58

 

Part 4--Application and transitional provisions

 

60

 

Schedule 8--Date of effect for veterans' disability pension

 

62

 

Veterans' Entitlements Act 1986

 

62

 

 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

1 

 

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

security, family assistance, veterans' entitlements 

and farm household support, and for related 

purposes 

The Parliament of Australia enacts: 

1  Short title 

 

  This Act may be cited as the Social Services and Other Legislation 

Amendment (2014 Budget Measures No. 4) Act 2014

2  Commencement 

 

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

10 

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

11 

   

   

 

 

2 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

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

according to its terms. 

 

Commencement information 

Column 1 

Column 2 

Column 3 

Provisions 

Commencement 

Date/Details 

1.  Sections 1 to 3 

and anything in 

this Act not 

elsewhere covered 

by this table 

The day this Act receives the Royal Assent. 

 

2.  Schedule 1 

1 January 2015. 

1 January 2015 

3.  Schedule 2, 

Part 1 

The day this Act receives the Royal Assent. 

 

4.  Schedule 2, 

Part 2 

1 July 2015. 

1 July 2015 

5.  Schedules 3 to 

1 January 2015. 

1 January 2015 

6.  Schedule 7, 

Part 1 

1 January 2015. 

1 January 2015 

7.  Schedule 7, 

Part 2 

Immediately after the commencement of the 

provisions covered by table item 6. 

However, if the Social Security Legislation 

Amendment (Increased Employment 

Participation) Act 2014 does not receive the 

Royal Assent, the provisions do not 

commence at all. 

 

8.  Schedule 7, 

Parts 3 and 4 

1 January 2015. 

1 January 2015 

9.  Schedule 8 

1 January 2015. 

1 January 2015 

Note: 

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

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

this Act. 

 

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

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

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

   

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

3 

 

3  Schedules 

 

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

repealed as set out in the applicable items in the Schedule 

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

according to its terms. 

Schedule 1  Indexation 

   

 

 

4 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Schedule 1

--Indexation 

   

A New Tax System (Family Assistance) Act 1999 

1  After subclause 3(7) of Schedule 4 

Insert: 

 

(7A)  The FTB free area (A1 and A3), the FTB free area (B), the FTB 

basic MIFA (A1), the FTB double basic MIFA (A1) and the FTB 

additional MIFA (A1) are not to be indexed on 1 July 2015, 1 July 

2016 and 1 July 2017. 

Social Security Act 1991 

10 

2  Point 1067G-B3A (note to definition of pension PP (Single) 

11 

maximum basic amount

12 

Repeal the note. 

13 

3  Point 1068-B5 (note to definition of pension PP (Single) 

14 

maximum basic amount

15 

Repeal the note. 

16 

4  Subsection 1192(4AB) 

17 

Omit "1 July 2015", substitute "1 July 2018". 

18 

5  After subsection 1192(5) 

19 

Insert: 

20 

 

(5AAA)  The amount under item 14 of the CPI Indexation Table in 

21 

subsection 1191(1), to the extent to which that item relates to the 

22 

amount in column 2 of Table E in point 1068A-E14 of the Pension 

23 

PP (Single) Rate Calculator, is not to be indexed on 1 July 2015, 

24 

1 July 2016 and 1 July 2017. 

25 

 

(5AAB)  Amounts under items 14AA, 14AB, 15 and 24 of the CPI 

26 

Indexation Table in subsection 1191(1) are not to be indexed on 

27 

1 January 2015, 1 January 2016 and 1 January 2017. 

28 

Indexation  Schedule 1 

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

5 

 

6  Subsection 1195(1) 

Repeal the subsection, substitute: 

 

(1)  For the purposes of this section, a category B amount is an amount 

specified as set out below: 

 

(a)  point 1064-B1--Table B--item 2--column 3; 

 

(b)  point 1065-B1--Table B--item 2--column 3. 

7  Subsection 1195(2) 

Repeal the subsection. 

Schedule 2  Family tax benefit 

Part 1  Amendments commencing on Royal Assent 

 

 

6 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Schedule 2

--Family tax benefit 

Part 1

--Amendments commencing on Royal Assent 

A New Tax System (Family Assistance) Act 1999 

1  Subclause 3(3) of Schedule 4 

Repeal the subclause, substitute: 

No indexation of certain FTB rates on 1 July 2015 and 1 July 2016 

 

(3)  The FTB child rate (A1), the FTB child rate (A2), the FTB 

standard rate (B) and the FTB standard ACO rate are not to be 

indexed on 1 July 2015 and 1 July 2016. 

2  Clause 3A of Schedule 4 

10 

Repeal the clause. 

11 

3  Subclause 5(1) of Schedule 4 

12 

Omit "and clauses 10 and 11". 

13 

4  Clauses 10 and 11 of Schedule 4 

14 

Repeal the clauses. 

15 

Family tax benefit  Schedule 2 

Amendments commencing 1 July 2015  Part 2 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

7 

 

Part 2

--Amendments commencing 1 July 2015 

A New Tax System (Family Assistance) Act 1999 

5  Subparagraph 22B(1)(a)(i) 

Omit "29(3) or". 

6  Subsection 62(4) (at the end of the table) 

Add: 

Part 6 

no amount is to be added by 

way of single parent 

supplement 

7  Subsection 63(4) (at the end of the table) 

Add: 

Part 6 

disregard the child 

8  At the end of subclause 1(1) of Schedule 1 

Add: 

10 

 

; and (c)  the individual's single parent supplement calculated under 

11 

Part 6 (clauses 52 to 54). 

12 

9  Subclause 29(3) of Schedule 1 

13 

Omit "16 years of age unless the FTB child is a senior secondary school 

14 

child", substitute "6 years of age". 

15 

10  Clause 30 of Schedule 1 (table item 2) 

16 

Omit "or over". 

17 

11  Subclauses 31A(2) and (3) of Schedule 1 

18 

Repeal the subclauses, substitute: 

19 

 

(2)  For the purposes of subclause (1), the FTB (B) gross supplement 

20 

amount is $302.95. 

21 

Schedule 2  Family tax benefit 

Part 2  Amendments commencing 1 July 2015 

 

 

8 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

12  Subclause 31B(1) of Schedule 1 (table item 2) 

Omit "or over". 

13  Subclauses 38A(3) and (4) of Schedule 1 

Repeal the subclauses, substitute: 

 

(3)  For the purposes of subclause (2), the FTB gross supplement 

amount is $602.25. 

14  At the end of Schedule 1 

Add: 

Part 6--Single parent supplement 

   

10 

52  Single parent supplement 

11 

 

  An amount of single parent supplement is to be added in working 

12 

out an individual's annual rate of family tax benefit if: 

13 

 

(a)  the individual is not a member of a couple; and 

14 

 

(b)  the individual's youngest FTB child is 6 years of age or over 

15 

but under 13 years of age; and 

16 

 

(c)  the individual's Part A rate of family tax benefit, worked out 

17 

under Part 2 of this Schedule but disregarding reductions (if 

18 

any) under clause 5 of this Schedule and disregarding 

19 

section 58A and subclause 38AA(3) of this Schedule, is 

20 

greater than nil; and 

21 

 

(d)  the individual's income excess is nil under Division 2C of 

22 

Part 5 of this Schedule; and 

23 

 

(e)  the individual's maintenance income excess is nil under 

24 

Subdivision A of Division 5 of Part 2 of this Schedule. 

25 

53  Rate of single parent supplement 

26 

 

  Subject to clause 54, the amount of an individual's single parent 

27 

supplement is $751.90 for each FTB child of the individual who is 

28 

6 years of age or over but under 13 years of age. 

29 

Family tax benefit  Schedule 2 

Amendments commencing 1 July 2015  Part 2 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

9 

 

54  Sharing single parent supplement (shared care percentages) 

 

  If an individual has a shared care percentage for an FTB child of 

the individual, the amount of the individual's single parent 

supplement for that child is that percentage of the amount that 

would otherwise be the individual's single parent supplement for 

that child. 

15  Clause 2 of Schedule 4 (table items 8A and 9A) 

Repeal the items. 

16  Clause 2 of Schedule 4 (after table item 17AA) 

Insert: 

10 

 

11 

17AAA 

Amount of single 

parent supplement 

single parent 

supplement amount 

[Schedule 1--

clause 53] 

17  Subclause 3(1) of Schedule 4 (table items 8A and 9A) 

12 

Repeal the items. 

13 

18  Subclause 3(1) of Schedule 4 (after table item 17AA) 

14 

Insert: 

15 

 

16 

17AAA 

single parent 

supplement 

amount

 

1 July 

December 

highest 

December 

quarter before 

reference 

quarter (but 

not earlier 

than 

December 

quarter 2014) 

$3.65 

19  Subclause 3(8) of Schedule 4 

17 

Repeal the subclause, substitute: 

18 

Schedule 2  Family tax benefit 

Part 2  Amendments commencing 1 July 2015 

 

 

10 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

First indexation of single parent supplement amount 

 

(8)  The first indexation of the single parent supplement amount

 

is to 

take place on 1 July 2016. 

20  Application and saving provisions 

(1) 

Subject to subitems (2) to (4), the amendments made by items 5, 9, 10 

and 12 apply in relation to working out the rate of family tax benefit for 

days on or after the commencement of those items. 

(2) 

The amendments made by items 5, 9, 10 and 12 do not apply in relation 

to working out the rate of family tax benefit for the following 

individuals for days on or after the commencement of those items: 

10 

 

(a)  an individual (the saved individual) who was, or becomes, 

11 

entitled to be paid family tax benefit on 30 June 2015 that 

12 

consisted of or included a Part B rate (disregarding 

13 

section 58A of, and subclause 31B(3) of Schedule 1 to, the 

14 

New Tax System (Family Assistance) Act 1999) greater than 

15 

nil, where the individual's youngest FTB child was 6 years of 

16 

age or over on that day; 

17 

 

(b)  an individual who is the partner of the saved individual on 

18 

any day on or after 1 July 2015 when the amendments made 

19 

by items 5, 9, 10 and 12 do not apply in relation to the saved 

20 

individual. 

21 

(3) 

Subitem (2) ceases to apply to the saved individual at the end of the 

22 

earliest of the following days: 

23 

 

(a)  30 June 2017; 

24 

 

(b)  the day before the first day on which neither the saved 

25 

individual, nor the saved individual's partner (if any), is 

26 

entitled to be paid family tax benefit; 

27 

 

(c)  the day before the first day on which the Part B rate for the 

28 

saved individual, or the saved individual's partner (if any), is 

29 

nil; 

30 

 

(d)  the day before the first day on which none of the saved 

31 

individual's FTB children on 30 June 2015 is an FTB child of 

32 

the saved individual or the saved individual's partner (if any); 

33 

 

(e)  the day before the first day on which the saved individual's 

34 

single parent supplement (worked out assuming the 

35 

amendments made by items 6, 7, 8 and 14 applied in relation 

36 

Family tax benefit  Schedule 2 

Amendments commencing 1 July 2015  Part 2 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

11 

 

to the saved individual) would be equal to or more than the 

saved individual's Part B rate. 

(4) 

The amendments made by items 5, 9, 10 and 12 do not apply in relation 

to working out an individual's rate or amount of family tax benefit in 

relation to a period, to the extent that period occurs on or after the 

commencement of those items, in the circumstances prescribed in, and 

for the period prescribed in or worked out in accordance with, a 

legislative instrument made by the Minister under this subitem. 

(5) 

Subject to subitem (6), the amendments made by items 6, 7, 8 and 14 

apply in relation to working out the rate of family tax benefit for days 

10 

on or after the commencement of those items. 

11 

(6) 

The amendments made by items 6, 7, 8 and 14 do not apply to an 

12 

individual while the amendments made by items 5, 9, 10 and 12 do not 

13 

apply in relation to the individual. 

14 

(7) 

The amendments made by items 11 and 13 apply in relation to working 

15 

out the rate of family tax benefit for days on or after the commencement 

16 

of those items. 

17 

Schedule 3  Waiting periods 

   

 

 

12 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Schedule 3

--Waiting periods 

   

Social Security Act 1991 

1  After section 19D 

Insert: 

19DA  Experiencing a personal financial crisis definition 

 

(1)  A person is experiencing a personal financial crisis if and only if 

the person: 

 

(a)  is in severe financial hardship; and 

 

(b)  satisfies the circumstances prescribed in an instrument under 

10 

subsection (3). 

11 

Note 1: 

This definition relates to ordinary waiting periods. 

12 

Note 2: 

For in severe financial hardship, see subsection 19C(2) (person who 

13 

is not a member of a couple) and subsection 19C(3) (person who is a 

14 

member of a couple). 

15 

 

(2)  Without limiting paragraph (1)(b), the person cannot be taken to 

16 

satisfy those circumstances unless he or she produces evidence that 

17 

suggests a reasonable possibility that he or she satisfies those 

18 

circumstances. 

19 

 

(3)  The Secretary may, by legislative instrument, prescribe 

20 

circumstances for the purposes of subsection (1). 

21 

2  Subsection 23(1) 

22 

Insert: 

23 

experiencing a personal financial crisis: see section 19DA. 

24 

3  Subsection 23(1) (before paragraph (a) of the definition of 

25 

ordinary waiting period

26 

Insert: 

27 

 

(aa)  a widow allowance ordinary waiting period under 

28 

sections 408CGA and 408CGB; or 

29 

Waiting periods  Schedule 3 

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

13 

 

 

(ab)  a parenting payment ordinary waiting period under 

sections 500WA and 500WB; or 

 

(ac)  a youth allowance ordinary waiting period under 

sections 549CA and 549CB; or 

4  Subsection 23(1) (after paragraph (ab) of the definition of 

waiting period

Insert: 

 

(ac)  a widow allowance ordinary waiting period under 

sections 408CGA and 408CGB; or 

 

(ad)  a parenting payment ordinary waiting period under 

10 

sections 500WA and 500WB; or 

11 

 

(ae)  a youth allowance ordinary waiting period under 

12 

sections 549CA and 549CB; or 

13 

5  Subsection 23(10) 

14 

Omit "social security benefit under Part 2.12 (newstart allowance) or 

15 

Part 2.14 (sickness allowance)", substitute "social security benefit or 

16 

social security pension". 

17 

6  After section 408CG 

18 

Insert: 

19 

408CGA  Ordinary waiting period 

20 

 

(1)  Subject to subsection (2), a person is subject to an ordinary waiting 

21 

period unless: 

22 

 

(a)  at some time in the 13 weeks immediately before the 

23 

person's start day, the person received an income support 

24 

payment; or 

25 

 

(b)  the Secretary is satisfied that the person is experiencing a 

26 

personal financial crisis. 

27 

Note 1: 

For income support payment, see subsection 23(1). 

28 

Note 2: 

For experiencing a personal financial crisis, see section 19DA. 

29 

 

(2)  Subsection (1) does not apply to a person who: 

30 

 

(a)  is undertaking an activity specified in an instrument made 

31 

under subsection (3); and 

32 

Schedule 3  Waiting periods 

   

 

 

14 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

 

(b)  has been exempted from the application of subsection (1) by 

the Secretary. 

 

(3)  The Secretary may, by legislative instrument, specify activities for 

the purpose of paragraph (2)(a). 

408CGB  Duration of ordinary waiting period 

 

(1)  Subject to subsections (2) and (3), if a person is subject to an 

ordinary waiting period, the ordinary waiting period is the period 

of 7 days that starts on the person's start day (worked out 

disregarding clause 5 of Schedule 2 to the Administration Act). 

 

(2)  Subject to subsection (3), if: 

10 

 

(a)  a person is subject to an ordinary waiting period; and 

11 

 

(b)  apart from this subsection, the ordinary waiting period would 

12 

be the period of 7 days that starts on the person's start day 

13 

(worked out disregarding clause 5 of Schedule 2 to the 

14 

Administration Act); and 

15 

 

(c)  that start day falls within one or more of the following 

16 

periods (each of which is an exclusion period) that the 

17 

person is subject to: 

18 

 

(i)  a seasonal work preclusion period; 

19 

 

(ii)  a lump sum preclusion period under Part 3.14; 

20 

 

(iii)  an income maintenance period; 

21 

then the ordinary waiting period is the period of 7 days that starts 

22 

on the first day after all the exclusion periods have ended. 

23 

 

(3)  If: 

24 

 

(a)  a person qualifies for a social security payment (other than 

25 

widow allowance); and 

26 

 

(b)  because the person is subject to an ordinary waiting period 

27 

relating to the payment, the payment is not payable to the 

28 

person for a period starting on a particular day; and 

29 

 

(c)  during that period the person: 

30 

 

(i)  ceases to be qualified for the payment; and 

31 

 

(ii)  claims widow allowance; 

32 

the person's ordinary waiting period relating to widow allowance 

33 

is the period of 7 days that starts on that particular day. 

34 

Waiting periods  Schedule 3 

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

15 

 

Note: 

Ordinary waiting periods apply to widow allowance, parenting 

payment, youth allowance, newstart allowance and sickness 

allowance. 

7  After section 500W 

Insert: 

500WA  Ordinary waiting period 

 

(1)  Subject to subsection (2), a person is subject to an ordinary waiting 

period unless: 

 

(a)  at some time in the 13 weeks immediately before the 

person's start day, the person received an income support 

10 

payment; or 

11 

 

(b)  the Secretary is satisfied that the person is experiencing a 

12 

personal financial crisis. 

13 

Note 1: 

For income support payment, see subsection 23(1). 

14 

Note 2: 

For experiencing a personal financial crisis, see section 19DA. 

15 

 

(2)  Subsection (1) does not apply to a person who: 

16 

 

(a)  is undertaking an activity specified in an instrument made 

17 

under subsection (3); and 

18 

 

(b)  has been exempted from the application of subsection (1) by 

19 

the Secretary. 

20 

 

(3)  The Secretary may, by legislative instrument, specify activities for 

21 

the purpose of paragraph (2)(a). 

22 

500WB  Duration of ordinary waiting period 

23 

 

(1)  Subject to subsections (2) and (3), if a person is subject to an 

24 

ordinary waiting period, the ordinary waiting period is the period 

25 

of 7 days that starts on the person's start day (worked out 

26 

disregarding clause 5 of Schedule 2 to the Administration Act). 

27 

 

(2)  Subject to subsection (3), if: 

28 

 

(a)  a person is subject to an ordinary waiting period; and 

29 

 

(b)  apart from this subsection, the ordinary waiting period would 

30 

be the period of 7 days that starts on the person's start day 

31 

Schedule 3  Waiting periods 

   

 

 

16 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

(worked out disregarding clause 5 of Schedule 2 to the 

Administration Act); and 

 

(c)  that start day falls within one or more of the following 

periods (each of which is an exclusion period) that the 

person is subject to: 

 

(i)  a seasonal work preclusion period; 

 

(ii)  a lump sum preclusion period under Part 3.14; 

 

(iii)  an income maintenance period; 

then the ordinary waiting period is the period of 7 days that starts 

on the first day after all the exclusion periods have ended. 

10 

 

(3)  If: 

11 

 

(a)  a person qualifies for a social security payment (other than 

12 

parenting payment); and 

13 

 

(b)  because the person is subject to an ordinary waiting period 

14 

relating to the payment, the payment is not payable to the 

15 

person for a period starting on a particular day; and 

16 

 

(c)  during that period the person: 

17 

 

(i)  ceases to be qualified for the payment; and 

18 

 

(ii)  claims parenting payment; 

19 

the person's ordinary waiting period relating to parenting payment 

20 

is the period of 7 days that starts on that particular day. 

21 

Note: 

Ordinary waiting periods apply to widow allowance, parenting 

22 

payment, youth allowance, newstart allowance and sickness 

23 

allowance. 

24 

8  After paragraph 549(2)(a) 

25 

Insert: 

26 

 

(aa)  an ordinary waiting period (see sections 549CA and 549CB); 

27 

9  After section 549C 

28 

Insert: 

29 

549CA  Ordinary waiting period 

30 

 

(1)  This section applies if a person is qualified for youth allowance, 

31 

where neither section 540AA (about new apprentices) nor 

32 

paragraph 541(1)(a) (about full-time study) applies. 

33 

Waiting periods  Schedule 3 

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

17 

 

 

(2)  Subject to subsection (3), the person is subject to an ordinary 

waiting period unless: 

 

(a)  at some time in the 13 weeks immediately before the 

person's start day, the person received an income support 

payment; or 

 

(b)  the Secretary is satisfied that the person is experiencing a 

personal financial crisis. 

Note 1: 

For income support payment, see subsection 23(1). 

Note 2: 

For experiencing a personal financial crisis, see section 19DA. 

 

(3)  Subsection (2) does not apply to a person who: 

10 

 

(a)  is undertaking an activity specified in an instrument made 

11 

under subsection (4); and 

12 

 

(b)  has been exempted from the application of subsection (2) by 

13 

the Secretary. 

14 

 

(4)  The Secretary may, by legislative instrument, specify activities for 

15 

the purpose of paragraph (3)(a). 

16 

549CB  Duration of ordinary waiting period 

17 

 

(1)  Subject to subsections (2) and (3), if a person is subject to an 

18 

ordinary waiting period, the ordinary waiting period is the period 

19 

of 7 days that starts on the person's start day (worked out 

20 

disregarding clause 5 of Schedule 2 to the Administration Act). 

21 

 

(2)  Subject to subsection (3), if: 

22 

 

(a)  a person is subject to an ordinary waiting period; and 

23 

 

(b)  apart from this subsection, the ordinary waiting period would 

24 

be the period of 7 days that starts on the person's start day 

25 

(worked out disregarding clause 5 of Schedule 2 to the 

26 

Administration Act); and 

27 

 

(c)  that start day falls within one or more of the following 

28 

periods (each of which is an exclusion period) that the 

29 

person is subject to: 

30 

 

(i)  a liquid assets test waiting period; 

31 

 

(ii)  a newly arrived resident's waiting period; 

32 

 

(iii)  a seasonal work preclusion period; 

33 

 

(iv)  a lump sum preclusion period under Part 3.14; 

34 

Schedule 3  Waiting periods 

   

 

 

18 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

 

(v)  an income maintenance period; 

then the ordinary waiting period is the period of 7 days that starts 

on the first day after all the exclusion periods have ended. 

 

(3)  If: 

 

(a)  a person qualifies for a social security payment (other than 

youth allowance); and 

 

(b)  because the person is subject to an ordinary waiting period 

relating to the payment, the payment is not payable to the 

person for a period starting on a particular day; and 

 

(c)  during that period the person: 

10 

 

(i)  ceases to be qualified for the payment; and 

11 

 

(ii)  claims youth allowance; 

12 

the person's ordinary waiting period relating to youth allowance is 

13 

the period of 7 days that starts on that particular day. 

14 

Note: 

Ordinary waiting periods apply to widow allowance, parenting 

15 

payment, youth allowance, newstart allowance and sickness 

16 

allowance. 

17 

10  Paragraph 620(1)(a) (note) 

18 

Repeal the note. 

19 

11  Paragraph 620(1)(g) 

20 

Repeal the paragraph, substitute: 

21 

 

(g)  the Secretary is satisfied that the person is experiencing a 

22 

personal financial crisis. 

23 

12  Subsection 620(1) (note) 

24 

Repeal the note, substitute: 

25 

Note 1: 

For income support payment see subsection 23(1). 

26 

Note 2: 

For experiencing a personal financial crisis, see section 19DA. 

27 

13  Section 621 

28 

Repeal the section, substitute: 

29 

621  Duration of ordinary waiting period 

30 

 

(1)  Subject to subsections (3) and (4), if a person: 

31 

Waiting periods  Schedule 3 

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

19 

 

 

(a)  is subject to an ordinary waiting period; and 

 

(b)  is not disqualified for newstart allowance under section 598 

(liquid assets test); 

the ordinary waiting period is the period of 7 days that starts on the 

person's start day (worked out disregarding clause 5 of Schedule 2 

to the Administration Act). 

 

(2)  Subject to subsections (3) and (4), if a person: 

 

(a)  is subject to an ordinary waiting period; and 

 

(b)  is disqualified for newstart allowance under section 598 

(liquid assets test); 

10 

the ordinary waiting period is the period of 7 days that starts on the 

11 

day after the end of the liquid assets test waiting period referred to 

12 

in subsection 598(2). 

13 

 

(3)  Subject to subsection (4), if: 

14 

 

(a)  a person is subject to an ordinary waiting period; and 

15 

 

(b)  apart from this subsection, the ordinary waiting period would 

16 

be the period of 7 days that starts on the person's start day 

17 

(worked out disregarding clause 5 of Schedule 2 to the 

18 

Administration Act); and 

19 

 

(c)  that start day falls within one or more of the following 

20 

periods (each of which is an exclusion period) that the 

21 

person is subject to: 

22 

 

(i)  a newly arrived resident's waiting period; 

23 

 

(ii)  a seasonal work preclusion period; 

24 

 

(iii)  a lump sum preclusion period under Part 3.14; 

25 

 

(iv)  an income maintenance period; 

26 

then the ordinary waiting period is the period of 7 days that starts 

27 

on the first day after all the exclusion periods have ended. 

28 

 

(4)  If: 

29 

 

(a)  a person qualifies for a social security payment (other than 

30 

newstart allowance); and 

31 

 

(b)  because the person is subject to an ordinary waiting period 

32 

relating to the payment, the payment is not payable to the 

33 

person for a period starting on a particular day; and 

34 

 

(c)  during that period the person: 

35 

 

(i)  ceases to be qualified for the payment; and 

36 

Schedule 3  Waiting periods 

   

 

 

20 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

 

(ii)  claims newstart allowance; 

the person's ordinary waiting period relating to newstart allowance 

is the period of 7 days that starts on that particular day. 

Note: 

Ordinary waiting periods apply to widow allowance, parenting 

payment, youth allowance, newstart allowance and sickness 

allowance. 

14  Paragraph 693(a) (note) 

Repeal the note. 

15  Paragraph 693(f) 

Repeal the paragraph, substitute: 

10 

 

(f)  the Secretary is satisfied that the person is experiencing a 

11 

personal financial crisis. 

12 

16  Section 693 (notes 2 to 5) 

13 

Repeal the notes, substitute: 

14 

Note 1: 

For income support payment see subsection 23(1). 

15 

Note 2: 

For experiencing a financial crisis, see section 19DA. 

16 

17  Section 694 

17 

Repeal the section, substitute: 

18 

694  Duration of ordinary waiting period 

19 

 

(1)  Subject to subsections (3) and (4), if a person: 

20 

 

(a)  is subject to an ordinary waiting period; and 

21 

 

(b)  is not disqualified for sickness allowance under section 676 

22 

(liquid assets test); 

23 

the ordinary waiting period is the period of 7 days that starts on the 

24 

person's start day (worked out disregarding clause 5 of Schedule 2 

25 

to the Administration Act). 

26 

 

(2)  Subject to subsections (3) and (4), if a person: 

27 

 

(a)  is subject to an ordinary waiting period; and 

28 

Waiting periods  Schedule 3 

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

21 

 

 

(b)  is disqualified for sickness allowance under section 676 

(liquid assets test); 

the ordinary waiting period is the period of 7 days that starts on the 

day after the end of the period referred to in subsection 676(3). 

 

(3)  Subject to subsection (4), if: 

 

(a)  a person is subject to an ordinary waiting period; and 

 

(b)  apart from this subsection, the ordinary waiting period would 

be the period of 7 days that starts on the person's start day 

(worked out disregarding clause 5 of Schedule 2 to the 

Administration Act); and 

10 

 

(c)  that start day falls within one or more of the following 

11 

periods (each of which is an exclusion period) that the 

12 

person is subject to: 

13 

 

(i)  a newly arrived resident's waiting period; 

14 

 

(ii)  a seasonal work preclusion period; 

15 

 

(iii)  a lump sum preclusion period under Part 3.14; 

16 

 

(iv)  an income maintenance period; 

17 

then the ordinary waiting period is the period of 7 days that starts 

18 

on the first day after all the exclusion periods have ended. 

19 

 

(4)  If: 

20 

 

(a)  a person qualifies for a social security payment (other than 

21 

sickness allowance); and 

22 

 

(b)  because the person is subject to an ordinary waiting period 

23 

relating to the payment, the payment is not payable to the 

24 

person for a period starting on a particular day; and 

25 

 

(c)  during that period the person: 

26 

 

(i)  ceases to be qualified for the payment; and 

27 

 

(ii)  claims sickness allowance; 

28 

the person's ordinary waiting period relating to sickness allowance 

29 

is the period of 7 days that starts on that particular day. 

30 

Note: 

Ordinary waiting periods apply to widow allowance, parenting 

31 

payment, youth allowance, newstart allowance and sickness 

32 

allowance. 

33 

Schedule 3  Waiting periods 

   

 

 

22 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

18  Application provision 

The amendments made by this Schedule apply in relation to a claim for 

a social security payment that is made on or after the commencement of 

this Schedule. 

Pensioner education supplement  Schedule 4 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

23 

 

Schedule 4

--Pensioner education supplement 

Part 1

--Main amendments 

Social Security Act 1991 

1  Subsection 7(6) 

Omit "a pensioner education supplement,". 

2  Subsection 17(1) (subparagraph (l)(v) of the definition of 

compensation affected payment

Repeal the subparagraph. 

3  Subsection 17(1) (paragraph (l) of the definition of 

compensation affected payment

10 

Omit "or supplement,". 

11 

4  Subsection 17(1) (paragraph (m) of the definition of 

12 

compensation affected payment

13 

Repeal the paragraph, substitute: 

14 

 

(m)  a fares allowance, where the allowance or payment (the 

15 

underlying compensation affected payment) mentioned in 

16 

subparagraph 1061ZAAA(1)(b)(i), (ii) or (iii) is a 

17 

compensation affected payment to which any of 

18 

paragraphs (aa) to (k) of this definition applies; or 

19 

5  Subsection 19AB(2) (note at the end of the definition of 

20 

approved course of education or study

21 

Repeal the note. 

22 

6  Subsection 23(1) (definition of independent

23 

Repeal the definition, substitute: 

24 

independent, in Parts 2.11, 2.11B, 3.4A, 3.4B, 3.5 and 3.7, has the 

25 

meaning given by section 1067A. 

26 

Schedule 4  Pensioner education supplement 

Part 1  Main amendments 

 

 

24 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

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

arrived resident's waiting period

Repeal the paragraph. 

8  Subsection 23(1) (paragraph (a) of the definition of payday

Omit ", a double orphan pension or a pensioner education supplement", 

substitute "or a double orphan pension". 

9  Subsection 23(1) (paragraph (a) of the definition of payday

Omit ", supplement". 

10  Paragraph 23(4AA)(c) 

Repeal the paragraph. 

10 

11  Paragraphs 23(10F)(c) and (d) 

11 

Omit "paragraph 1061PB(1)(b)", substitute "subsection 541B(5)". 

12 

12  Section 119 

13 

Repeal the section. 

14 

13  Subsection 503AA(1) 

15 

Repeal the subsection. 

16 

14  Subsection 503AA(2) 

17 

Omit "(2)". 

18 

15  Subparagraph 569H(7)(g)(iii) 

19 

Omit ", 569A(b) or 1061PB(1)(b)", substitute "or 569A(b)". 

20 

16  Subsection 1049(1) 

21 

Repeal the subsection. 

22 

17  Part 2.24A 

23 

Repeal the Part. 

24 

18  At the end of subparagraph 1061ZAAA(1)(b)(iii) 

25 

Add "and". 

26 

Pensioner education supplement  Schedule 4 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

25 

 

19  Subparagraph 1061ZAAA(1)(b)(iv) 

Repeal the subparagraph. 

20  Section 1158 

Omit ", a mobility allowance or a pensioner education supplement", 

substitute "or a mobility allowance". 

Social Security (Administration) Act 1999 

21  Subsection 15(5) (paragraph (i) of the definition of 

supplementary payment

Omit "allowance; or", substitute "allowance.". 

22  Subsection 15(5) (paragraph (j) of the definition of 

10 

supplementary payment

11 

Repeal the paragraph. 

12 

23  Subsection 50(3) 

13 

Repeal the subsection. 

14 

24  Paragraph 52(1)(h) 

15 

Repeal the paragraph. 

16 

25  Paragraphs 55(4A)(a) and (b) 

17 

Omit ", austudy payment or pensioner education supplement" 

18 

(wherever occurring), substitute "or austudy payment". 

19 

26  Section 123TC (paragraphs (i) and (o) of the definition of 

20 

category I welfare payment

21 

Repeal the paragraphs. 

22 

27  Section 123TC (paragraphs (d) and (i) of the definition of 

23 

category Q welfare payment

24 

Repeal the paragraphs. 

25 

Schedule 4  Pensioner education supplement 

Part 1  Main amendments 

 

 

26 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

28  Subclause 1(1) of Schedule 1 (paragraph (i) of the 

definition of social security periodic payment

Repeal the paragraph. 

29  Clauses 30 to 32 of Schedule 2 

Repeal the clauses. 

Pensioner education supplement  Schedule 4 

Other amendments  Part 2 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

27 

 

Part 2

--Other amendments 

A New Tax System (Family Assistance) Act 1999 

30  Subparagraph 14(1A)(b)(i) 

Omit ", 17(1)(c)". 

31  Paragraph 17(1)(c) 

Repeal the paragraph. 

Farm Household Support Act 2014 

32  Paragraph 94(i) 

Repeal the paragraph. 

Income Tax Assessment Act 1997 

10 

33  Section 52-10 (table item 22A.1) 

11 

Repeal the item. 

12 

34  Section 52-40 (table item 22A) 

13 

Repeal the item. 

14 

Schedule 4  Pensioner education supplement 

Part 3  Application and saving provisions 

 

 

28 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Part 3

--Application and saving provisions 

35  Application and saving provisions 

(1) 

Despite the amendments of the definition of compensation affected 

payment in subsection 17(1) of the Social Security Act 1991 made by 

Part 1 of this Schedule, Parts 3.6A and 3.14 of that Act continue to 

apply as if those amendments had not been made. 

(2) 

Despite the amendments made by items 12, 13, 14 and 16, sections 119, 

503AA and 1049 of the Social Security Act 1991, as in force 

immediately before the commencement of this item, continue to apply 

on and after that commencement in relation to working out whether an 

10 

approved program of work supplement, or language, literacy and 

11 

numeracy supplement, is payable in respect of a fortnight beginning 

12 

before that commencement. 

13 

(3) 

Despite the amendment made by item 17, Part 2.24A of the Social 

14 

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

15 

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

16 

to days occurring before that commencement. 

17 

(4) 

Despite the amendments made by items 18 and 19, 

18 

paragraph 1061ZAAA(1)(b) of the Social Security Act 1991, as in force 

19 

immediately before the commencement of this item, continues to apply 

20 

on and after that commencement in relation to a relevant period that 

21 

began before that commencement. 

22 

(5) 

Despite the amendment made by item 20, section 1158 of the Social 

23 

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

24 

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

25 

to days occurring before that commencement. 

26 

(6) 

Despite the amendments made by items 23 and 25, subsections 50(3) 

27 

and 55(4A) of the Social Security (Administration) Act 1999, as in force 

28 

immediately before the commencement of this item, continue to apply 

29 

on and after that commencement in relation to the payment of fares 

30 

allowance on or after that commencement, to the extent that payment is 

31 

being made because of the receipt of pensioner education supplement. 

32 

Pensioner education supplement  Schedule 4 

Application and saving provisions  Part 3 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

29 

 

(7) 

Despite the amendment made by item 24, paragraph 52(1)(h) of the 

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

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

that commencement in relation to the payment of pensioner education 

supplement on or after that commencement. 

(8) 

Despite the amendments of the definitions of category I welfare 

payment and category Q welfare payment in section 123TC of the 

Social Security (Administration) Act 1999 made by Part 1 of this 

Schedule, Part 3B of that Act continues to apply as if those amendments 

had not been made. 

10 

(9) 

Despite the amendments made by items 30 and 31, 

11 

subparagraph 14(1A)(b)(i) and paragraph 17(1)(c) of the A New Tax 

12 

System (Family Assistance) Act 1999, as in force immediately before 

13 

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

14 

commencement in relation to working out whether an individual 

15 

satisfies the work/training/study test, or has recognised study 

16 

commitments, before, on or after that commencement. 

17 

(10) 

Despite the amendment made by item 33, item 22A.1 of the table in 

18 

section 52-10 of the Income Tax Assessment Act 1997, as in force 

19 

immediately before the commencement of this item, continues to apply 

20 

on and after that commencement in relation to a payment of pensioner 

21 

education supplement before, on or after that commencement. 

22 

Schedule 5  Education entry payment 

Part 1  Main amendments 

 

 

30 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Schedule 5

--Education entry payment 

Part 1

--Main amendments 

Social Security Act 1991 

1  Subsection 17(1) (subparagraph (l)(iv) of the definition of 

compensation affected payment

Repeal the subparagraph. 

2  Subsection 17(1) (paragraph (l) of the definition of 

compensation affected payment

Omit "allowance, payment", substitute "allowance,". 

3  Part 2.13A 

10 

Repeal the Part. 

11 

4  Subsection 1222(2) (table item 7) 

12 

Repeal the item. 

13 

5  Paragraph 1223ABAAB(1)(a) 

14 

Omit "or an education entry payment supplement". 

15 

6  Paragraph 1223ABAAB(2)(e) 

16 

Omit "benefit; and", substitute "benefit.". 

17 

7  Paragraph 1223ABAAB(2)(h) 

18 

Repeal the paragraph. 

19 

8  Section 1224B 

20 

Repeal the section. 

21 

Education entry payment  Schedule 5 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

31 

 

Social Security (Administration) Act 1999 

9  Subsection 15(5) (paragraph (c) of the definition of 

supplementary payment

Repeal the paragraph. 

10  Subsection 47(1) (paragraph (d) of the definition of lump 

sum benefit

Repeal the paragraph. 

11  Section 123TC (paragraph (c) of the definition of 

household stimulus payment

Repeal the paragraph. 

10 

Veterans' Entitlements Act 1986 

11 

12  Subsection 5NB(1) (paragraph (c) of the definition of 

12 

compensation affected pension

13 

Omit "age; or", substitute "age.". 

14 

13  Subsection 5NB(1) (paragraph (f) of the definition of 

15 

compensation affected pension

16 

Repeal the paragraph. 

17 

14  Subsection 59M(1) 

18 

Omit "pensions, supplements and payments", substitute "pensions and 

19 

supplements". 

20 

15  Paragraph 59M(1)(f) 

21 

Omit "supplement;", substitute "supplement.". 

22 

16  Paragraph 59M(1)(i) 

23 

Repeal the paragraph. 

24 

17  Subsection 59M(1) (note 2) 

25 

Omit "pensions, supplements, allowances and payments", substitute 

26 

"pensions and supplements". 

27 

Schedule 5  Education entry payment 

Part 1  Main amendments 

 

 

32 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

18  Subsections 59M(2), (3) and (4) 

Omit ", supplement or payment", substitute "or supplement". 

19  Part VIIAA 

Repeal the Part. 

Education entry payment  Schedule 5 

Other amendments  Part 2 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

33 

 

Part 2

--Other amendments 

Farm Household Support Act 2014 

20  Paragraph 94(e) 

Repeal the paragraph. 

Income Tax Assessment Act 1936 

21  Subparagraph 160AAAA(2)(c)(i) 

Omit "or education entry payment". 

22  Subparagraph 160AAAB(2)(c)(i) 

Omit "or education entry payment". 

Income Tax Assessment Act 1997 

10 

23  Section 11-

15 (table item headed "social security or like 

11 

payments") 

12 

Omit: 

13 

education entry payment supplement under the Social 

Security Act 1991 ...........................................................  

 

52-10 

24  Paragraph 51-35(e) 

14 

Omit "purposes;", substitute "purposes.". 

15 

25  Paragraph 51-35(f) 

16 

Repeal the paragraph. 

17 

26  Section 51-40 

18 

Repeal the section, substitute: 

19 

Schedule 5  Education entry payment 

Part 2  Other amendments 

 

 

34 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

51-40  Payments to a secondary student 

 

  A 

*

Commonwealth education or training payment made to or on 

behalf of a student is not exempt from income tax under item 2.1B 

of the table in section 51-10. 

Note: 

The whole or part of a Commonwealth education or training payment 

may be exempt under Subdivision 52-E or 52-F. 

27  Paragraph 52-10(1)(za) 

Repeal the paragraph. 

28  Subsection 52-10(1J) 

Repeal the subsection. 

10 

29  Section 55-10 

11 

Repeal the section. 

12 

Taxation Administration Act 1953 

13 

30  Paragraph 12-110(1)(c) in Schedule 1 

14 

Omit ", 55-5 or 55-10", substitute "or 55-5". 

15 

Education entry payment  Schedule 5 

Application and saving provisions  Part 3 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

35 

 

Part 3

--Application and saving provisions 

31  Application and saving provisions 

(1) 

Despite the amendments of the definition of compensation affected 

payment in subsection 17(1) of the Social Security Act 1991 made by 

Part 1 of this Schedule, Parts 3.6A and 3.14 of that Act continue to 

apply as if those amendments had not been made. 

(2) 

Despite the amendment made by item 3, Part 2.13A of the Social 

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

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

to the 2014 calendar year and earlier calendar years. 

10 

(3) 

Despite the amendments made by items 5 to 8, sections 1223ABAAB 

11 

and 1224B of the Social Security Act 1991, as in force immediately 

12 

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

13 

that commencement in relation to payments of education entry payment 

14 

supplement or education entry payment made before, on or after that 

15 

commencement. 

16 

(4) 

Despite the amendments of the definition of compensation affected 

17 

pension in subsection 5NB(1) of the Veterans' Entitlements Act 1986 

18 

made by Part 1 of this Schedule, Part IIIC of that Act continues to apply 

19 

as if those amendments had not been made. 

20 

(5) 

Despite the amendment made by item 19, Part VIIAA of the Veterans' 

21 

Entitlements Act 1986, as in force immediately before the 

22 

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

23 

commencement in relation to the 2014 calendar year and earlier 

24 

calendar years. 

25 

(6) 

Despite the amendments made by items 21 and 22, 

26 

subparagraphs 160AAAA(2)(c)(i) and 160AAAB(2)(c)(i) of the Income 

27 

Tax Assessment Act 1936, as in force immediately before the 

28 

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

29 

commencement in relation to payments of education entry payment 

30 

made before, on or after that commencement. 

31 

(7) 

Despite the amendments made by items 25, 26 and 29, 

32 

paragraph 51-35(f) and sections 51-40 and 55-10 of the Income Tax 

33 

Schedule 5  Education entry payment 

Part 3  Application and saving provisions 

 

 

36 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Assessment Act 1997, as in force immediately before the 

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

commencement in relation to payments of education entry payment 

made before, on or after that commencement. 

(8) 

Despite the amendment made by item 28, subsection 52-10(1J) of the 

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

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

commencement in relation to payments of education entry payment 

supplement made before that commencement. 

Age requirements for various Commonwealth payments  Schedule 6 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

37 

 

Schedule 6

--Age requirements for various 

Commonwealth payments 

Part 1

--Main amendments 

Social Security Act 1991 

1  Paragraphs 19C(8)(b) and (c) 

Omit "22", substitute "25". 

2  Subsection 543B(1) 

Repeal the subsection, substitute: 

 

(1)  Subject to subsection (2), the person has attained the maximum age 

for youth allowance if the person is at least 25 years old. 

10 

3  Subparagraph 593(1)(g)(i) 

11 

Omit "22", substitute "25". 

12 

4  Subparagraphs 593(1B)(b)(i) and (1D)(b)(i) 

13 

Omit "22", substitute "25". 

14 

5  Paragraph 666(1)(e) 

15 

Omit "22", substitute "25". 

16 

6  Paragraph 1067G-D1(b) 

17 

Omit "22", substitute "25". 

18 

7  Paragraphs 1067G-H26(a) and (b) 

19 

Omit "22", substitute "25". 

20 

8  Paragraphs 1067L-D25(a) and (b) 

21 

Omit "22", substitute "25". 

22 

9  Paragraphs 1068-G9(a) and (b) 

23 

Omit "22", substitute "25". 

24 

Schedule 6  Age requirements for various Commonwealth payments 

Part 1  Main amendments 

 

 

38 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

10  Paragraphs 1068B-D22(a) and (b) 

Omit "22", substitute "25". 

11  Section 1190 (table item 4A, column 2) 

Omit "22", substitute "25". 

12  Application provision

--persons in severe financial 

hardship 

The amendment made by item 1 applies in relation to working out if a 

person is in severe financial hardship for days on or after 1 January 

2015. 

13  Application provision

--youth allowance 

10 

(1) 

Subject to subitems (2) and (3), the amendment made by item 2 applies 

11 

for the purposes of working out a person's qualification for a youth 

12 

allowance in respect of days occurring on or after 1 January 2015. 

13 

(2) 

If: 

14 

 

(a)  a person was aged 22, 23 or 24 on 31 December 2014; and 

15 

 

(b)  the person was receiving a newstart allowance immediately 

16 

before 1 January 2015 or the person's payment of a newstart 

17 

allowance was suspended immediately before 1 January 

18 

2015; 

19 

the amendment made by item 2 does not apply in relation to the person 

20 

during the period: 

21 

 

(c)  beginning on 1 January 2015; and 

22 

 

(d)  ending on the day on which the payment of the newstart 

23 

allowance to the person is cancelled. 

24 

(3) 

If: 

25 

 

(a)  before 1 January 2015, the Secretary granted a person's claim 

26 

for a newstart allowance under the Social Security 

27 

(Administration) Act 1999; and 

28 

 

(b)  the person's start day in relation to that allowance, worked 

29 

out under clause 5 of Schedule 2 to that Act, is on or after 

30 

1 January 2015; 

31 

the amendment made by item 2 does not apply in relation to the person 

32 

during the period: 

33 

Age requirements for various Commonwealth payments  Schedule 6 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

39 

 

 

(c)  beginning on 1 January 2015; and 

 

(d)  ending on the day on which the payment of the newstart 

allowance to the person is cancelled. 

(4) 

The amendment made by item 6 applies in relation to working out the 

rate of youth allowance for days on or after 1 January 2015. 

14  Application provision

--newstart allowance 

(1) 

Subject to this item, the amendments made by items 3 and 4 apply for 

the purposes of working out a person's qualification for a newstart 

allowance in respect of days occurring on or after 1 January 2015. 

(2) 

If: 

10 

 

(a)  a person was aged 22, 23 or 24 on 31 December 2014; and 

11 

 

(b)  the person was receiving a newstart allowance immediately 

12 

before 1 January 2015 or the person's payment of a newstart 

13 

allowance was suspended immediately before 1 January 

14 

2015; 

15 

the amendments made by items 3 and 4 do not apply in relation to the 

16 

person during the period: 

17 

 

(c)  beginning on 1 January 2015; and 

18 

 

(d)  ending on the day on which the payment of the newstart 

19 

allowance to the person is cancelled. 

20 

(3) 

If: 

21 

 

(a)  before 1 January 2015, a person aged 22, 23 or 24 made a 

22 

claim for a newstart allowance under the Social Security 

23 

(Administration) Act 1999; and 

24 

 

(b)  the claim had not been determined by the Secretary 

25 

immediately before 1 January 2015; 

26 

the amendments made by items 3 and 4 do not apply in relation to: 

27 

 

(c)  the claim; and 

28 

 

(d)  if the claim is granted--the payment of that allowance as a 

29 

result of that claim. 

30 

(4) 

If: 

31 

 

(a)  before 1 January 2015, a person aged 22, 23 or 24 made a 

32 

claim for a newstart allowance under the Social Security 

33 

Schedule 6  Age requirements for various Commonwealth payments 

Part 1  Main amendments 

 

 

40 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

(Administration) Act 1999 (disregarding subclause 4(6) of 

Schedule 2 to that Act); and 

 

(b)  on 1 January 2015, the person is serving a liquid assets test 

waiting period in relation to the claim; 

the amendments made by items 3 and 4 do not apply in relation to: 

 

(c)  the claim; and 

 

(d)  if the claim is granted--the payment of that allowance as a 

result of that claim. 

(5) 

If: 

 

(a)  before 1 January 2015, the Secretary granted a person's claim 

10 

for a newstart allowance under the Social Security 

11 

(Administration) Act 1999; and 

12 

 

(b)  on 1 January 2015, an income maintenance period applies to 

13 

the person; 

14 

the amendments made by items 3 and 4 do not apply in relation to the 

15 

person during the period: 

16 

 

(c)  beginning on 1 January 2015; and 

17 

 

(d)  ending on the day on which the payment of the newstart 

18 

allowance to the person is cancelled. 

19 

(6) 

If: 

20 

 

(a)  before 1 January 2015, the Secretary granted a person's claim 

21 

for a newstart allowance under the Social Security 

22 

(Administration) Act 1999; and 

23 

 

(b)  the person's start day in relation to that allowance, worked 

24 

out under clause 5 of Schedule 2 to that Act, is on or after 

25 

1 January 2015; 

26 

the amendments made by items 3 and 4 do not apply in relation to the 

27 

person during the period: 

28 

 

(c)  beginning on 1 January 2015; and 

29 

 

(d)  ending on the day on which the payment of the newstart 

30 

allowance to the person is cancelled. 

31 

15  Application provision

--sickness allowance 

32 

(1) 

Subject to this item, the amendment made by item 5 applies for the 

33 

purposes of working out a person's qualification for sickness allowance 

34 

in respect of days occurring on or after 1 January 2015. 

35 

Age requirements for various Commonwealth payments  Schedule 6 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

41 

 

(2) 

If: 

 

(a)  a person was aged 22, 23 or 24 on 31 December 2014; and 

 

(b)  the person was receiving sickness allowance immediately 

before 1 January 2015 or the person's payment of sickness 

allowance was suspended immediately before 1 January 

2015; 

the amendment made by item 5 does not apply in relation to the person 

during the period: 

 

(c)  beginning on 1 January 2015; and 

 

(d)  ending on the day on which the payment of the sickness 

10 

allowance to the person is cancelled. 

11 

(3) 

If: 

12 

 

(a)  before 1 January 2015, a person aged 22, 23 or 24 made a 

13 

claim for sickness allowance under the Social Security 

14 

(Administration) Act 1999; and 

15 

 

(b)  the claim had not been determined by the Secretary 

16 

immediately before 1 January 2015; 

17 

the amendment made by item 5 does not apply in relation to: 

18 

 

(c)  the claim; and 

19 

 

(d)  if the claim is granted--the payment of that allowance as a 

20 

result of that claim. 

21 

(4) 

If: 

22 

 

(a)  before 1 January 2015, a person aged 22, 23 or 24 made a 

23 

claim for sickness allowance under the Social Security 

24 

(Administration) Act 1999; and 

25 

 

(b)  on 1 January 2015, the person is serving a liquid assets test 

26 

waiting period in relation to the claim; 

27 

the amendment made by item 5 does not apply in relation to: 

28 

 

(c)  the claim; and 

29 

 

(d)  if the claim is granted--the payment of that allowance as a 

30 

result of that claim. 

31 

(5) 

If: 

32 

 

(a)  before 1 January 2015, the Secretary granted a person's claim 

33 

for sickness allowance under the Social Security 

34 

(Administration) Act 1999; and 

35 

Schedule 6  Age requirements for various Commonwealth payments 

Part 1  Main amendments 

 

 

42 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

 

(b)  on 1 January 2015, an income maintenance period applies to 

the person; 

the amendment made by item 5 does not apply in relation to the person 

during the period: 

 

(c)  beginning on 1 January 2015; and 

 

(d)  ending on the day on which the payment of the sickness 

allowance to the person is cancelled. 

(6) 

If: 

 

(a)  before 1 January 2015, the Secretary granted a person's claim 

for sickness allowance under the Social Security 

10 

(Administration) Act 1999; and 

11 

 

(b)  the person's start day in relation to that allowance, worked 

12 

out under clause 5 of Schedule 2 to that Act, is on or after 

13 

1 January 2015; 

14 

the amendment made by item 5 does not apply in relation to the person 

15 

during the period: 

16 

 

(c)  beginning on 1 January 2015; and 

17 

 

(d)  ending on the day on which the payment of the sickness 

18 

allowance to the person is cancelled. 

19 

16  Application provision

--general rates 

20 

The amendments made by items 7 to 10 apply in relation to working out 

21 

the rates of social security payments for days on or after 1 January 

22 

2015. 

23 

Age requirements for various Commonwealth payments  Schedule 6 

Other amendments  Part 2 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

43 

 

Part 2

--Other amendments 

Farm Household Support Act 2014 

17  Section 7 

Omit "turned 22", substitute "turned 25". 

18  Subdivision A of Division 8 of Part 2 (heading) 

Repeal the heading, substitute: 

Subdivision A--Persons who have turned 25 

19  Subsection 55(1) 

Omit "turned 22", substitute "turned 25". 

20  Sections 56, 57, 58 and 59 

10 

Omit "turned 22", substitute "turned 25". 

11 

21  Subdivision B of Division 8 of Part 2 (heading) 

12 

Repeal the heading, substitute: 

13 

Subdivision B--Persons who have not turned 25 

14 

22  Subsection 60(1) 

15 

Omit "not turned 22", substitute "not turned 25". 

16 

23  Sections 61, 62, 63, 64 and 65 

17 

Omit "not turned 22", substitute "not turned 25". 

18 

24  Subsection 93(1) (table items 1, 2, 15 and 16) 

19 

Omit "22", substitute "25". 

20 

25  Application provision

--farm household allowance 

21 

(1) 

Subject to subitems (2) and (3), the amendments made by items 19, 20, 

22 

22 and 23 apply for the purposes of working out the rate of farm 

23 

Schedule 6  Age requirements for various Commonwealth payments 

Part 2  Other amendments 

 

 

44 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

household allowance in respect of days occurring on or after 1 January 

2015. 

(2) 

If: 

 

(a)  a person was aged 22, 23 or 24 on 31 December 2014; and 

 

(b)  the person was receiving farm household allowance 

immediately before 1 January 2015 or the person's payment 

of farm household allowance was suspended immediately 

before 1 January 2015; 

the amendments made by items 19 and 20 do not apply in relation to the 

person during the period: 

10 

 

(c)  beginning on 1 January 2015; and 

11 

 

(d)  ending on the day on which the payment of the farm 

12 

household allowance to the person is cancelled. 

13 

(3) 

If: 

14 

 

(a)  before 1 January 2015, the Secretary granted a person's claim 

15 

for farm household allowance under the Social Security 

16 

(Administration) Act 1999; and 

17 

 

(b)  the person's start day in relation to that allowance, worked 

18 

out under clause 5 of Schedule 2 to that Act, is on or after 

19 

1 January 2015; 

20 

the amendments made by items 19 and 20 do not apply in relation to the 

21 

person during the period: 

22 

 

(c)  beginning on 1 January 2015; and 

23 

 

(d)  ending on the day on which the payment of the farm 

24 

household allowance to the person is cancelled. 

25 

(4) 

The amendment made by item 24, to the extent to which it relates to 

26 

items 1 and 16 of the table in subsection 93(1) of the Farm Household 

27 

Support Act 2014, does not apply in relation to a person while the 

28 

amendments made by items 19 and 20 do not apply in relation to the 

29 

person. 

30 

Exclusion periods  Schedule 7 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

45 

 

Schedule 7

--Exclusion periods 

Part 1

--Main amendments 

Social Security Act 1991 

1  After Part 3.12A 

Insert: 

Part 3.12B--Part 3.12B exclusion periods 

   

1157AA  Relevant social security benefits 

 

(1)  This Part applies to any of the following social security benefits: 

 

(a)  a youth allowance, if the person qualified for the allowance is 

10 

neither undertaking full-time study nor a new apprentice; 

11 

 

(b)  a newstart allowance; 

12 

 

(c)  a special benefit, if the person qualified for the benefit is: 

13 

 

(i)  an Australian resident; or 

14 

 

(ii)  a person who is the holder of a visa in a class 

15 

determined by the Minister under subsection (2). 

16 

 

(2)  The Minister may, by legislative instrument, determine classes of 

17 

visas for the purposes of paragraph (1)(c). 

18 

Special rules for transitioning between youth allowances 

19 

 

(3)  If: 

20 

 

(a)  a person is qualified for a youth allowance to which this Part 

21 

applies (the current allowance); and 

22 

 

(b)  immediately before the day this Part began applying to the 

23 

current allowance (the transition day), the person was 

24 

receiving a youth allowance to which this Part does not 

25 

apply; 

26 

this Part applies as if the person's start day (disregarding clause 5 

27 

of Schedule 2 to the Administration Act) for the current allowance 

28 

were the transition day. 

29 

Schedule 7  Exclusion periods 

Part 1  Main amendments 

 

 

46 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Note: 

Receiving a social security benefit is given an extended meaning by 

subsection 1157AH(4). 

 

(4)  If: 

 

(a)  on a particular day, a person becomes qualified for a youth 

allowance to which this Part does not apply; and 

 

(b)  on the day before (the transition day), the person was subject 

to a Part 3.12B exclusion period for a youth allowance to 

which this Part applies; 

this Part applies as if the Part 3.12B exclusion period ended on the 

transition day. 

10 

1157AB  Part 3.12B waiting period 

11 

 

(1)  A person qualified for a social security benefit to which this Part 

12 

applies becomes subject to a Part 3.12B waiting period if, on the 

13 

person's start day (disregarding clause 5 of Schedule 2 to the 

14 

Administration Act) for the social security benefit: 

15 

 

(a)  the person's age is less than 30 years; and 

16 

 

(b)  section 1157AF (about exemptions) does not apply to the 

17 

person. 

18 

 

(2)  Subsection (1) does not apply to the person if he or she: 

19 

 

(a)  is a transferee to the social security benefit; and 

20 

 

(b)  was not, immediately before the transfer, subject to a 

21 

Part 3.12B exclusion period in relation to the transferee's old 

22 

payment; and 

23 

 

(c)  is covered by an item of the following table: 

24 

 

25 

Transferees who are not subject to a Part 3.12B waiting period 

Item 

If the transferee's old 

payment was: 

subsection (1) will not apply if: 

a social security 

pension, or social 

security benefit, of a 

kind determined under 

subsection (3) 

the Minister determines conditions under 

subsection (3) and those conditions are met 

a youth allowance 

the transferee was neither undertaking full-time 

study nor a new apprentice when the transferee's 

Exclusion periods  Schedule 7 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

47 

 

Transferees who are not subject to a Part 3.12B waiting period 

Item 

If the transferee's old 

payment was: 

subsection (1) will not apply if: 

qualification for the youth allowance ended 

a special benefit 

the transfer is to a youth allowance or a newstart 

allowance 

 

(3)  The Minister may, by legislative instrument, determine: 

 

(a)  kinds of social security pensions and social security benefits 

for the purposes of item 1 of the table in subsection (2); and 

 

(b)  conditions for the purposes of that table item. 

1157AC  Duration of the waiting period 

 

(1)  The person's Part 3.12B waiting period commences on the day (the 

commencement day) that is the later of: 

 

(a)  the person's start day (disregarding clause 5 of Schedule 2 to 

the Administration Act) for the social security benefit; and 

 

(b)  if that start day falls within one or more of the following 

10 

periods (each of which is an exclusion period) that the 

11 

person is subject to: 

12 

 

(i)  a period of non-payment because of section 553B, 634 

13 

or 745N (about moving to an area of lower employment 

14 

prospects); 

15 

 

(ii)  a period of non-payment because of section 553C, 633 

16 

or 745M (about seasonal workers); 

17 

 

(iii)  a liquid assets test waiting period; 

18 

 

(iv)  a newly arrived resident's waiting period; 

19 

 

(v)  a lump sum preclusion period under Part 3.14; 

20 

 

(vi)  an income maintenance period; 

21 

 

  the first day after all the exclusion periods have ended. 

22 

 

(2)  The Part 3.12B waiting period ends on the earliest of: 

23 

 

(a)  the last day of the following period commencing on the 

24 

commencement day: 

25 

 

(i)  unless subparagraph (ii) or (iii) applies--26 weeks; 

26 

Schedule 7  Exclusion periods 

Part 1  Main amendments 

 

 

48 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

 

(ii)  unless subparagraph (iii) applies--any reduced period 

that applies to the person under a determination made 

under subsection (3); 

 

(iii)  if the person's claim for the social security benefit was 

made while the person was serving a Part 3.12B 

exclusion period for another social security benefit--the 

period otherwise applying under this paragraph, less that 

period served for that other benefit; and 

 

(b)  the day before the first day after the commencement day that 

section 1157AF (about exemptions) applies to the person; 

10 

and 

11 

 

(c)  the day before the person turns 30 years of age. 

12 

Note 1: 

Not all of the period may apply if the person is subject to a temporary 

13 

exemption (see section 1157AG). 

14 

Note 2: 

This period may be extended under section 1157AE. 

15 

 

(3)  The Minister may, by legislative instrument, determine: 

16 

 

(a)  that previous periods of gainful work cause a reduced 

17 

Part 3.12B waiting period to apply; and 

18 

 

(b)  that previous periods of particular kinds of gainful work do 

19 

not cause a reduced Part 3.12B waiting period to apply; and 

20 

 

(c)  a method for working out the reduced period. 

21 

A reduced period worked out under the determination must be at 

22 

least 4 weeks. 

23 

 

(4)  For the purposes of this section, gainful work means work for 

24 

financial gain or reward (whether as an employee, a self-employed 

25 

person or otherwise). 

26 

1157AD  Part 3.12B non-payment period 

27 

 

(1)  A person becomes subject to a Part 3.12B non-payment period if, 

28 

on a day (the test day) referred to in a paragraph of subsection (2): 

29 

 

(a)  the person's age is less than 30 years; and 

30 

 

(b)  the person would (apart from this section) be receiving a 

31 

social security benefit to which this Part applies; and 

32 

 

(c)  section 1157AF (about exemptions) does not apply to the 

33 

person; and 

34 

Exclusion periods  Schedule 7 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

49 

 

 

(d)  the person is not already subject to a Part 3.12B non-payment 

period (because of a day referred to in another paragraph of 

subsection (2)); 

and, if the commencement day (see subsection (4)) for the period 

would be the later day referred to in paragraph (4)(b), 

section 1157AF does not apply to the person on that later day. 

Note: 

Receiving a social security benefit is given an extended meaning by 

subsection 1157AH(4). 

 

(2)  The relevant days are as follows: 

 

(a)  if the person has served a reduced Part 3.12B waiting period 

10 

because of subparagraph 1157AC(2)(a)(ii), but not a 

11 

Part 3.12B non-payment period--the day after the total of: 

12 

 

(i)  26 weeks; and 

13 

 

(ii)  the number of weeks the waiting period was reduced; 

14 

 

  following the waiting period; 

15 

 

(b)  the day after the 26 week period following the person's most 

16 

recent Part 3.12B exclusion period (if any), other than: 

17 

 

(i)  any Part 3.12B waiting period, if paragraph (a) applies 

18 

in relation to the waiting period; and 

19 

 

(ii)  any Part 3.12B penalty period; 

20 

 

(c)  the day after the most recent occasion (if any) that 

21 

section 1157AF (about exemptions) applied to the person. 

22 

For the purposes of paragraph (c), disregard occasions happening 

23 

before the person's start day (disregarding clause 5 of Schedule 2 

24 

to the Administration Act) for the social security benefit. 

25 

 

(3)  However, if a day referred to in a paragraph of subsection (2) falls 

26 

within a period of non-payment for the person because of 

27 

section 553B, 634 or 745N, treat the day referred to in that 

28 

paragraph as if it were the day after the end of that period of 

29 

non-payment. 

30 

Duration of the period 

31 

 

(4)  The person's Part 3.12B non-payment period commences on the 

32 

following day (the commencement day): 

33 

 

(a)  unless paragraph (b) applies--the test day; 

34 

Schedule 7  Exclusion periods 

Part 1  Main amendments 

 

 

50 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

 

(b)  if that day is during any Part 3.12B penalty period--the day 

after the end of that Part 3.12B penalty period. 

 

(5)  The Part 3.12B non-payment period ends on the earliest of: 

 

(a)  the last day of the next 26 weeks; and 

 

(b)  the day before the first day after the commencement day that 

section 1157AF (about exemptions) applies to the person; 

and 

 

(c)  the day before the person turns 30 years of age. 

Note 1: 

Not all of the period may apply if the person is subject to a temporary 

exemption (see section 1157AG). 

10 

Note 2: 

This period may be extended under section 1157AE. 

11 

1157AE  Extending Part 3.12B exclusion periods etc. 

12 

Extensions relating to EPPs 

13 

 

(1)  The Secretary may extend a person's Part 3.12B exclusion period 

14 

if, during that period, the person: 

15 

 

(a)  fails to enter into an employment pathway plan (including a 

16 

new plan) as required by the Secretary; or 

17 

 

(b)  fails to comply with a requirement in an employment 

18 

pathway plan. 

19 

 

(2)  However, subsection (1) does not apply if the person: 

20 

 

(a)  satisfies the Secretary that the failure was the result of 

21 

exceptional circumstances beyond the person's control; and 

22 

 

(b)  if the failure related to attendance at an appointment 

23 

(including an appointment relating to entering into an 

24 

employment pathway plan (including a new plan)), an 

25 

interview or activity: 

26 

 

(i)  gave the Secretary advance notice of the failure; or 

27 

 

(ii)  satisfies the Secretary that exceptional circumstances 

28 

beyond the person's control prevented the person from 

29 

giving such notice. 

30 

 

(3)  An extension under subsection (1) is for the period worked out 

31 

under a determination made under subsection (4). 

32 

Exclusion periods  Schedule 7 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

51 

 

 

(4)  The Employment Minister may, by legislative instrument, 

determine the extension periods applying for: 

 

(a)  failures to enter into employment pathway plans (including 

new plans); and 

 

(b)  failures to comply with particular requirements in 

employment pathway plans. 

Extensions must not exceed 4 weeks for each failure. 

Consequences for providing false or misleading information 

 

(5)  If a person provides false or misleading information for the 

purposes of a determination under subsection 1157AC(3) (about 

10 

reducing a Part 3.12B waiting period), the Secretary may: 

11 

 

(a)  if the person is still serving his or her Part 3.12B waiting 

12 

period--extend that period by the number of weeks worked 

13 

out under a determination made under subsection (6); or 

14 

 

(b)  otherwise--determine that the person is subject to a 

15 

Part 3.12B penalty period worked out under a determination 

16 

made under subsection (6). 

17 

 

(6)  The Minister may, by legislative instrument, determine the 

18 

following: 

19 

 

(a)  a method for working out the number of weeks to extend a 

20 

Part 3.12B waiting period under paragraph (5)(a); 

21 

 

(b)  a method for working out the duration and commencement 

22 

day for a Part 3.12B penalty period imposed under 

23 

paragraph (5)(b). 

24 

1157AF  Exemptions from Part 3.12B exclusion periods 

25 

 

(1)  This section applies to a person if one or more of the following 

26 

paragraphs apply: 

27 

 

(a)  the person is the principal carer of a child; 

28 

 

(b)  the person is a parent of a child who is an FTB child (within 

29 

the meaning of Subdivision A of Division 1 of Part 3 of the 

30 

Family Assistance Act) of the person; 

31 

 

(c)  the person has a partial capacity to work; 

32 

 

(d)  the person has a current Commonwealth registration number 

33 

in relation to a part-time apprenticeship, traineeship or trainee 

34 

Schedule 7  Exclusion periods 

Part 1  Main amendments 

 

 

52 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

apprenticeship under the scheme known as New 

Apprenticeships; 

 

(e)  the person is assessed as requiring employment services, or 

disability employment services, of a class determined under 

paragraph (2)(a); 

 

(f)  the person is covered by an exemption determined under 

paragraph (2)(b). 

 

(2)  The Minister may, by legislative instrument, determine: 

 

(a)  classes of employment services, and disability employment 

services, for the purposes of paragraph (1)(e); and 

10 

 

(b)  exemptions for the purposes of paragraph (1)(f). 

11 

 

(3)  Paragraph (1)(d) does not apply to a person whose registration 

12 

number is suspended. 

13 

1157AG  Temporary exemptions from Part 3.12B exclusion periods 

14 

 

(1)  A person is not, or ceases to be, subject to a Part 3.12B exclusion 

15 

period while an exemption under subsection (2) applies to him or 

16 

her. 

17 

 

(2)  The Minister may, by legislative instrument, determine: 

18 

 

(a)  the circumstances in which a person is exempt from a kind of 

19 

Part 3.12B exclusion period; and 

20 

 

(b)  a method for working out the number of weeks, and 

21 

commencement day, for the exemption; and 

22 

 

(c)  that the exemption extends the Part 3.12B exclusion period 

23 

by the duration of the exemption. 

24 

 

(3)  The exemption does not change when the Part 3.12B exclusion 

25 

period ends, unless this has been determined under 

26 

paragraph (2)(c). 

27 

1157AH  Treat as still receiving the benefit for certain purposes etc. 

28 

Disregard effect of Part 3.12B exclusion periods 

29 

 

(1)  For the purposes of the provisions in subsection (3), a person is 

30 

taken to have been receiving, or to be receiving, a social security 

31 

Exclusion periods  Schedule 7 

Main amendments  Part 1 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

53 

 

benefit if the person would have been receiving, or would be 

receiving, the benefit apart from a Part 3.12B exclusion period. 

 

(2)  For the purposes of the provisions in subsection (3), a person is 

taken to have ceased to receive a social security benefit if the 

person would have ceased to receive the benefit if the person: 

 

(a)  had been receiving it; and 

 

(b)  had not been subject to a Part 3.12B exclusion period. 

 

(3)  The provisions are Division 3 of Part 2A.1 (about health care 

cards). 

Disregard effect of certain waiting and compliance periods 

10 

 

(4)  For the purposes of subsection 1157AA(3) or 1157AD(1), a person 

11 

qualified for a social security benefit is taken to be receiving the 

12 

benefit if the person would be receiving the benefit apart from: 

13 

 

(a)  the operation of a provision of this Act or the Administration 

14 

Act, or of a provision of an instrument made under either 

15 

Act; or 

16 

 

(b)  a decision made under a provision of an Act or instrument 

17 

referred to in paragraph (a). 

18 

Schedule 7  Exclusion periods 

Part 2  Contingent amendments 

 

 

54 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Part 2

--Contingent amendments 

Social Security Act 1991 

2  Subsection 861(1) (note) 

Omit "Note", substitute "Note 1". 

3  At the end of subsection 861(1) 

Add: 

Note 2: 

A person is taken to be receiving a newstart allowance or a youth 

allowance while the person is subject to a Part 3.12B exclusion period 

(see section 1157AH). 

4  Subsection 1157AH(3) 

10 

Repeal the subsection, substitute: 

11 

 

(3)  The provisions are as follows: 

12 

 

(a)  Part 2.16A (about Job commitment bonus); 

13 

 

(b)  Division 3 of Part 2A.1 (about health care cards). 

14 

Exclusion periods  Schedule 7 

Other amendments  Part 3 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

55 

 

Part 3

--Other amendments 

Farm Household Support Act 2014 

5  Before paragraph 94(f) 

Insert: 

 

(ea)  Part 3.12B (Part 3.12B exclusion periods); 

Social Security Act 1991 

6  Subsection 23(1) 

Insert: 

Employment Minister means the Minister administering the Fair 

Entitlements Guarantee Act 2012

10 

old payment has the same meaning as in subclause 1(2) of 

11 

Schedule 1 to the Administration Act. 

12 

Part 3.12B exclusion period means: 

13 

 

(a)  a Part 3.12B waiting period; or 

14 

 

(b)  a Part 3.12B non-payment period; or 

15 

 

(c)  a Part 3.12B penalty period. 

16 

Part 3.12B non-payment period has the meaning given by 

17 

section 1157AD. 

18 

Part 3.12B penalty period has the meaning given by 

19 

subsection 1157AE(5)(b). 

20 

Part 3.12B waiting period has the meaning given by 

21 

section 1157AB. 

22 

serious failure period has the same meaning as in the 

23 

Administration Act. 

24 

unemployment non-payment period has the same meaning as in 

25 

the Administration Act. 

26 

Schedule 7  Exclusion periods 

Part 3  Other amendments 

 

 

56 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

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

waiting period

Insert: 

 

(ba)  a Part 3.12B waiting period relating to a claim for newstart 

allowance; or 

8  Subsection 23(1) (after paragraph (k) of the definition of 

waiting period

Insert: 

 

(kaa)  a Part 3.12B waiting period relating to a claim for special 

benefit; or 

10 

9  At the end of subsection 549(2) 

11 

Add: 

12 

 

; (c)  a Part 3.12B waiting period (see sections 1157AB and 

13 

1157AC). 

14 

10  After subsection 553B(4) 

15 

Insert: 

16 

 

(4A)  If the period referred to in subsection (1) would, apart from this 

17 

subsection, begin on a day the person is subject to a Part 3.12B 

18 

exclusion period, then the period referred to in subsection (1) 

19 

begins on the day after the end of that Part 3.12B exclusion period. 

20 

11  At the end of Division 2 of Part 2.11 

21 

Add: 

22 

Subdivision T--Other situations where allowance not payable 

23 

554  Part 3.12B non-payment period etc. 

24 

 

  A youth allowance is not payable to a person who is qualified for 

25 

youth allowance while the person is subject to a Part 3.12B 

26 

non-payment period or a Part 3.12B penalty period (see 

27 

Part 3.12B). 

28 

Exclusion periods  Schedule 7 

Other amendments  Part 3 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

57 

 

12  Subsection 593(1) (note 13) 

Omit "and Part 4.2", substitute ", Part 3.12B and Part 4.2". 

13  At the end of subsection 620(1) 

Add: 

Note 3: 

The person may also be subject to a Part 3.12B waiting period (see 

Part 3.12B). 

14  At the end of section 634 

Add: 

 

(5)  If the period of non-payment imposed by subsection (1) would, 

apart from this subsection, commence on a day the person is 

10 

subject to a Part 3.12B exclusion period, then the period of 

11 

non-payment imposed by subsection (1) commences on the day 

12 

after the end of that Part 3.12B exclusion period. 

13 

15  At the end of Subdivision H of Division 1 of Part 2.12 

14 

Add: 

15 

635  Part 3.12B non-payment period etc. 

16 

 

  A newstart allowance is not payable to a person who is qualified 

17 

for newstart allowance while the person is subject to a Part 3.12B 

18 

non-payment period or a Part 3.12B penalty period (see 

19 

Part 3.12B). 

20 

16  Subsection 729(1) (note) 

21 

Omit "Note", substitute "Note 1". 

22 

17  At the end of subsection 729(1) 

23 

Add: 

24 

Note 2: 

The person may also be subject to a Part 3.12B waiting period (see 

25 

Part 3.12B). 

26 

18  Subparagraph 729(2)(d)(v) 

27 

Omit "and". 

28 

Schedule 7  Exclusion periods 

Part 3  Other amendments 

 

 

58 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

19  At the end of paragraph 729(2)(d) 

Add: 

 

(vi)  Part 3.12B of this Act (Part 3.12B exclusion periods); 

and 

20  After subparagraph 729(2)(dc)(ii) 

Insert: 

 

(iia)  Part 3.12B (Part 3.12B exclusion periods); or 

21  At the end of Subdivision B of Division 1 of Part 2.15 

Add: 

739D  Part 3.12B non-payment period etc. 

10 

 

  Special benefit is not payable to a person who is qualified for 

11 

special benefit while the person is subject to a Part 3.12B 

12 

non-payment period or a Part 3.12B penalty period (see 

13 

Part 3.12B). 

14 

22  At the end of section 745N 

15 

Add: 

16 

 

(6)  If the period of non-payment imposed by subsection (1) would, 

17 

apart from this subsection, commence on a day the person is 

18 

subject to a Part 3.12B exclusion period, then the period of 

19 

non-payment imposed by subsection (1) commences on the day 

20 

after the end of that Part 3.12B exclusion period. 

21 

23  At the end of subsection 1061ZK(5) 

22 

Add: 

23 

Note: 

A person is taken to be receiving a youth allowance, a newstart 

24 

allowance or a special benefit while the person is subject to a 

25 

Part 3.12B exclusion period (see section 1157AH). 

26 

Social Security (Administration) Act 1999 

27 

24  Section 42D (note) 

28 

Omit "Note", substitute "Note 1". 

29 

Exclusion periods  Schedule 7 

Other amendments  Part 3 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

59 

 

25  At the end of section 42D 

Add: 

Note 2: 

If the person becomes subject to a Part 3.12B exclusion period (see 

Part 3.12B), the deduction may not be made until payments resume at 

the end of that period (usually 26 weeks). 

26  Section 42L (note) 

Omit "Note", substitute "Note 1". 

27  At the end of section 42L 

Add: 

Note 2: 

If the person becomes subject to a Part 3.12B exclusion period (see 

10 

Part 3.12B), the deduction may not be made until payments resume at 

11 

the end of that period (usually 26 weeks). 

12 

Schedule 7  Exclusion periods 

Part 4  Application and transitional provisions 

 

 

60 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Part 4

--Application and transitional provisions 

28  Application of amendments

--new claimants 

The amendments made by this Schedule apply to a person in relation to 

a social security benefit if the person makes a claim for that benefit on 

or after 1 January 2015. 

29  Application and transitional provisions

--current 

recipients 

(1) 

Subitem (2) applies to a person who, on 1 January 2015: 

 

(a)  is receiving a social security benefit; or 

 

(b)  has already made a claim for a social security benefit, but 

10 

that claim is yet to be determined; or 

11 

 

(c)  has already been granted his or her claim for a social security 

12 

benefit, and would be receiving the benefit apart from: 

13 

 

(i)  the operation of a provision of the Social Security Act 

14 

1991 or the Administration Act, or of a provision of an 

15 

instrument made under either of those Acts; or 

16 

 

(ii)  a decision made under a provision of an Act or 

17 

instrument referred to in subparagraph (i). 

18 

However, disregard paragraph (b) if the person's claim is later rejected. 

19 

Note: 

Paragraph (c) covers, for example, persons subject to waiting periods (within the 

20 

meaning of section 23 or subsection 549(2) of the Social Security Act 1991), and 

21 

income maintenance periods where the rate payable is nil. 

22 

(2) 

The amendments made by this Schedule apply to the person in relation 

23 

to that benefit as if, for the purposes of section 1157AD of the Social 

24 

Security Act 1991

25 

 

(a)  the person's first Part 3.12B exclusion period ended 26 

26 

weeks before the day after the end of the approved program 

27 

of work for income support that is the first such program 

28 

starting after 1 July 2015 in which the person participates; 

29 

and 

30 

 

(b)  the person's start day (disregarding clause 5 of Schedule 2 to 

31 

the Administration Act) for that benefit were the day after 

32 

that program ends. 

33 

Exclusion periods  Schedule 7 

Application and transitional provisions  Part 4 

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

61 

 

Note: 

This means that, if the person satisfies subsection 1157AD(1) of the Social Security Act 

1991, the person's first real Part 3.12B non-payment period will start on the day after 

that program ends. 

(3) 

Despite subitem (2), if on 1 January 2015: 

 

(a)  a person is serving a serious failure period or an 

unemployment non-payment period; and 

 

(b)  the person would otherwise be receiving a social security 

benefit; 

the amendments made by this Schedule apply to the person in relation 

to that benefit as if, for the purposes of section 1157AD of the Social 

10 

Security Act 1991

11 

 

(c)  the person's first Part 3.12B exclusion period ended 26 

12 

weeks before 1 January 2015; and 

13 

 

(d)  the person's start day (disregarding clause 5 of Schedule 2 to 

14 

the Administration Act) for that benefit were 1 January 2015. 

15 

Note: 

This means that, if the person satisfies subsection 1157AD(1) of the Social Security Act 

16 

1991, the person's first real Part 3.12B non-payment period will start on 1 January 

17 

2015. 

18 

Schedule 8  Date of effect for veterans' disability pension 

   

 

 

62 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

Schedule 8

--Date of effect for veterans' 

disability pension 

   

Veterans' Entitlements Act 1986 

1  Subsections 20(1) and (2) 

Repeal the subsections, substitute: 

 

(1)  If a claim in accordance with section 14 for a pension is granted 

(other than a claim to which subsection (2A) applies), the 

Commission may, subject to this Act, specify as a date that a 

determination under subsection 19(3) takes effect in respect of the 

10 

claim, a date: 

11 

 

(a)  for a pension by way of compensation to a veteran in respect 

12 

of the incapacity of the veteran from a war-caused injury or a 

13 

war-caused disease--not earlier than the date on which the 

14 

claim for the pension, in accordance with a form approved 

15 

for the purposes of paragraph 14(3)(a), was received at an 

16 

office of the Department in Australia; or 

17 

 

(b)  in any other case--not earlier than 3 months before the date 

18 

on which the claim for the pension, in accordance with a 

19 

form approved for the purposes of paragraph 14(3)(a), was 

20 

received at an office of the Department in Australia. 

21 

 

(2)  If: 

22 

 

(a)  a person makes a claim for a pension in writing (other than a 

23 

claim to which subsection (2B) applies), but otherwise than 

24 

in accordance with a form approved for the purposes of 

25 

paragraph 14(3)(a); and 

26 

 

(b)  the person later makes a claim for the pension in accordance 

27 

with a form so approved: 

28 

 

(i)  at a time when the person had not been notified by the 

29 

Department in writing that it would be necessary to 

30 

make the claim in accordance with a form so approved; 

31 

or 

32 

Date of effect for veterans' disability pension  Schedule 8 

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

63 

 

 

(ii)  within 3 months after the person had been so notified; 

and 

 

(c)  a pension is granted to the person upon consideration of that 

claim in accordance with a form so approved; 

the Commission may, subject to this Act, specify as a date that a 

determination under subsection 19(3) takes effect in respect of the 

claim, a date: 

 

(d)  for a pension by way of compensation to a veteran in respect 

of the incapacity of the veteran from a war-caused injury or a 

war-caused disease--not earlier than the date on which the 

10 

claim referred to in paragraph (a) was received at an office of 

11 

the Department in Australia; or 

12 

 

(e)  in any other case--not earlier than 3 months before the date 

13 

on which the claim referred to in paragraph (a) was received 

14 

at an office of the Department in Australia. 

15 

2  Paragraphs 85(1)(a) and (b) 

16 

Repeal the paragraphs, substitute: 

17 

 

(a)  if a pension, or increased pension, is granted to the veteran 

18 

under Part II in respect of his or her incapacity from that 

19 

injury or disease: 

20 

 

(i)  for a pension--the date that is 3 months before the date 

21 

as from which the pension is granted; or 

22 

 

(ii)  for an increased pension--the date as from which the 

23 

increased pension is granted; or 

24 

 

(b)  if the extent of the incapacity of the veteran from the injury 

25 

or disease was not sufficient to justify the grant of, or 

26 

increase of, a pension under Part II: 

27 

 

(i)  if the extent of that incapacity was not sufficient to 

28 

justify the grant of a pension under Part II--the date that 

29 

is 3 months before the date as from which such a 

30 

pension would have been granted if the extent of that 

31 

incapacity had been sufficient to justify the grant of 

32 

such a pension; or 

33 

 

(ii)  if the extent of that incapacity was not sufficient to 

34 

justify the increase of a pension under Part II--the date 

35 

as from which such an increased pension would have 

36 

been granted if the extent of that incapacity had been 

37 

sufficient to justify the increase of such a pension. 

38 

Schedule 8  Date of effect for veterans' disability pension 

   

 

 

64 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

No.      , 2014 

 

3  Subsection 85(3) 

Repeal the subsection, substitute: 

 

(3)  If a veteran: 

 

(a)  is in receipt of a pension, or increased pension, under Part II 

at the general rate or at a higher rate; or 

 

(b)  is in receipt of a pension, or increased pension, under Part II 

in respect of incapacity from a war-caused injury or a 

war-caused disease of a kind described in column 1 of the 

table in subsection 27(1); 

the veteran is eligible to be provided, from and including the 

10 

following date, with treatment under this Part for any injury 

11 

suffered, or disease contracted, by the veteran, whether before or 

12 

after the commencement of this Act: 

13 

 

(c)  if the veteran is in receipt of a pension under Part II--the 

14 

date that is 3 months before the date as from which the 

15 

pension became payable to the veteran; 

16 

 

(d)  if the veteran is in receipt of an increased pension under 

17 

Part II--the date as from which the increased pension 

18 

became payable to the veteran. 

19 

4  Paragraph 85(7)(a) 

20 

Repeal the paragraph, substitute: 

21 

 

(a)  is in receipt of a pension, or increased pension, under Part II 

22 

at a rate not less than 50% of the general rate; and 

23 

5  Paragraph 85(7)(c) 

24 

Repeal the paragraph, substitute: 

25 

 

(c)  the following date: 

26 

 

(i)  if the veteran is in receipt of a pension under Part II--

27 

the date that is 3 months before the date as from which 

28 

the pension became payable to the veteran; 

29 

 

(ii)  if the veteran is in receipt of an increased pension under 

30 

Part II--the date as from which the increased pension 

31 

became payable to the veteran; or 

32 

Date of effect for veterans' disability pension  Schedule 8 

   

 

 

No.      , 2014 

Social Services and Other Legislation Amendment (2014 Budget 

Measures No. 4) Bill 2014 

65 

 

6  Application provisions 

(1) 

Subsection 20(1) of the Veterans' Entitlements Act 1986, as amended 

by this Schedule, applies in relation to a claim made on or after the 

commencement of this item. 

(2) 

Paragraph 20(2)(a) of the Veterans' Entitlements Act 1986, as amended 

by this Schedule, applies in relation to a claim made on or after the 

commencement of this item. 

(3) 

The amendment made by item 2 applies in relation to a determination 

referred to in subsection 85(1) of the Veterans' Entitlements Act 1986 

that is made on or after the commencement of that item, where the 

10 

claim for the pension, or increased pension, was made on or after that 

11 

commencement. 

12 

(4) 

The amendments made by items 3, 4 and 5 apply in relation to a 

13 

pension, or increased pension, that begins to be received on or after the 

14 

commencement of those items, where the claim for the pension, or 

15 

increased pension, is made on or after that commencement. 

16 

 


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