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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014-2015
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Social Services Legislation Amendment
(More Generous Means Testing for
Youth Payments) Bill 2015
No. , 2015
(Social Services)
A Bill for an Act to amend the law relating to social
security, and for related purposes
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Amendments
4
Part 1--Parental means testing for youth allowance
4
Social Security Act 1991
4
Part 2--Adding FTB children to the parental pool for youth
allowance
7
Social Security Act 1991
7
Part 3--Maintenance income test for youth allowance
recipients
9
Social Security Act 1991
9
Social Security (Administration) Act 1999
16
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
1
A Bill for an Act to amend the law relating to social
1
security, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Social Services Legislation
5
Amendment (More Generous Means Testing for Youth Payments)
6
Act 2015.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
2
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
1
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,
items 1 to 18
1 January 2016.
1 January 2016
3. Schedule 1,
item 19
The later of:
(a) the start of 1 January 2016; and
(b) immediately after the commencement of
item 2 of Schedule 5 to the Social
Services Legislation Amendment (Youth
Employment and Other Measures) Act
2015.
However, the provisions do not commence
at all if the event mentioned in paragraph (b)
does not occur.
4. Schedule 1,
item 20
1 January 2016.
1 January 2016
5. Schedule 1,
Part 2
1 July 2016.
1 July 2016
6. Schedule 1,
Part 3
1 January 2017.
1 January 2017
Note:
This table relates only to the provisions of this Act as originally
2
enacted. It will not be amended to deal with any later amendments of
3
this Act.
4
(2) Any information in column 3 of the table is not part of this Act.
5
Information may be inserted in this column, or information in it
6
may be edited, in any published version of this Act.
7
3 Schedules
8
Legislation that is specified in a Schedule to this Act is amended or
9
repealed as set out in the applicable items in the Schedule
10
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
3
concerned, and any other item in a Schedule to this Act has effect
1
according to its terms.
2
Schedule 1 Amendments
Part 1 Parental means testing for youth allowance
4
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
Schedule 1
--Amendments
1
Part 1
--Parental means testing for youth allowance
2
Social Security Act 1991
3
1 Section 10B
4
Repeal the section.
5
2 Subsection 547B(2)
6
Repeal the subsection, substitute:
7
(2) A person is excluded from the application of the youth allowance
8
assets test if the person is not independent.
9
3 Paragraph 547C(a)
10
Repeal the paragraph.
11
4 Subparagraphs 547C(b)(i), (c)(i), (d)(i) and (e)(i)
12
Repeal the subparagraphs.
13
5 Section 547C (note 2)
14
Omit "amount in paragraph (a) is indexed annually on 1 January and
15
the".
16
6 Section 547D
17
Repeal the section, substitute:
18
547D Value of person's assets to include value of assets of partner in
19
certain circumstances
20
The value of a person's assets is the sum of the following values:
21
(a) the value of the person's assets (disregarding paragraph (b)
22
and Part 3.18);
23
(b) if the person is a member of a couple (see section 4)--the
24
value of the assets of the person's partner (disregarding
25
Part 3.18).
26
Amendments Schedule 1
Parental means testing for youth allowance Part 1
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
5
Section 547E applies for the purpose of working out the value of
1
the assets of the person and of any other person who is the partner
2
of the person.
3
7 Section 547G
4
Repeal the section.
5
8 Point 1067G-A1 (method statement, step 10)
6
Repeal the step.
7
9 Point 1067G-A1 (method statement, step 13, paragraph (b))
8
Repeal the paragraph.
9
10 Point 1067G-A1 (method statement, step 13)
10
Omit "or (b)" (wherever occurring).
11
11 Paragraph 1067G-F3(d)
12
Omit "1061ZK(5); or", substitute "1061ZK(5)."
13
12 Paragraph 1067G-F3(e)
14
Repeal the paragraph.
15
13 Point 1067G-F10 (note 1)
16
Omit "or received (see points 1067G-F20 and 1067G-F21)", substitute
17
"(see point 1067G-F20)".
18
14 Point 1067G-F21
19
Repeal the point.
20
15 Section 1067G (Module G of the Youth Allowance Rate
21
Calculator)
22
Repeal the Module.
23
16 Section 1067G (table item 11 in Module L of the Youth
24
Allowance Rate Calculator)
25
Repeal the item.
26
Schedule 1 Amendments
Part 1 Parental means testing for youth allowance
6
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
17 Section 1190 (table item 33A)
1
Repeal the item.
2
18 Subsection 1191(1) (table item 24)
3
Repeal the item.
4
19 Subsection 1192(5AAB)
5
Omit ", 15 and 24", substitute "and 15".
6
20 Application provision
7
The amendments made by this Part apply in relation to working out
8
whether youth allowance is payable, or the rate of youth allowance, for
9
days on or after the commencement of this item.
10
Amendments Schedule 1
Adding FTB children to the parental pool for youth allowance Part 2
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
7
Part 2
--Adding FTB children to the parental pool for
1
youth allowance
2
Social Security Act 1991
3
21 Point 1067G-F26 (note)
4
Repeal the note, substitute:
5
Note:
See also points 1067G-F30 and 1067G-F31, which extend the
6
situations in which a person will have parental income in common
7
with other persons.
8
22 Points 1067G-F31 and 1067G-F32
9
Repeal the points, substitute:
10
Extension to FTB children and regular care children
11
1067G-F31 In working out a person's (the recipient's) reduction for parental
12
income for the purposes of this Module:
13
(a) an FTB child, or a regular care child, of someone who is a
14
parent of the recipient is taken to be a person (a relevant
15
sibling) who has parental income in common with the
16
recipient; and
17
(b) in using the formula in point 1067G-F28 for the recipient, the
18
maximum payment rate for relevant siblings is
14
/
365
of the
19
amount worked out under point 1067G-F32.
20
Note:
For FTB child and regular care child, see section 23.
21
1067G-F32 For the purposes of paragraph 1067G-F31(b), the amount worked
22
out under this point is the amount that would, at the time the
23
recipient's rate of youth allowance is worked out, be the parent's
24
maximum rate:
25
(a) under step 1 of the method statement in clause 3 of
26
Schedule 1 to the Family Assistance Act (having regard only
27
to clauses 7 and 11 for the purposes of paragraph (a) of that
28
step); or
29
(b) if the only relevant sibling is a regular care child--under step
30
1 of the method statement in clause 28A of Schedule 1 to the
31
Family Assistance Act.
32
Schedule 1 Amendments
Part 2 Adding FTB children to the parental pool for youth allowance
8
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
1067G-F33 In working out the parent's maximum rate for the purposes of point
1
1067G-F32:
2
(a) assume that the parent has made a claim for payment of
3
family tax benefit by instalment in accordance with the
4
Family Assistance Administration Act; and
5
(b) assume that the parent has not made an election under
6
subsection 58A(1) of the Family Assistance Act; and
7
(c) make any other assumption that the Minister, by legislative
8
instrument, specifies.
9
1067G-F34 Work out the amount under point 1067G-F32 for one parent only.
10
1067G-F35 Count the amount worked out under point 1067G-F32 once only in
11
using the formula in point 1067G-F28 for a recipient, regardless of
12
how many relevant siblings the recipient has.
13
23 Application provision
14
The amendments made by this Part apply in relation to working out
15
rates of youth allowance for days on or after the commencement of this
16
item.
17
Amendments Schedule 1
Maintenance income test for youth allowance recipients Part 3
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
9
Part 3
--Maintenance income test for youth
1
allowance recipients
2
Social Security Act 1991
3
24 Point 1067G-A1 (method statement, step 8)
4
Repeal the step, substitute:
5
Step 8. If the person is not independent, work out the person's
6
reduction for parental income using Module E.
7
25 After Module D of the Youth Allowance Rate Calculator
8
Insert:
9
Module E--Person's reduction for parental income
10
Person's reduction for parental income
11
1067G-E1 This is how to work out the person's reduction for parental
12
income for the purposes of the method statement in point
13
1067G-A1.
14
Method statement
15
Step 1. Work out the MIT reducible amount by subtracting the
16
base FTB child rate in point 1067G-E2 from the
17
maximum FTB child rate in point 1067G-E3.
18
Step 2. Apply the parental income test in Module F to work out
19
the parental income test result for the person.
20
Step 3. If the parental income test result is equal to or more than
21
the MIT reducible amount, the person's reduction for
22
parental income is the parental income test result.
23
Step 4. If the parental income test result is less than the person's
24
MIT reducible amount, apply the maintenance income
25
Schedule 1 Amendments
Part 3 Maintenance income test for youth allowance recipients
10
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
test in Module GA to work out the maintenance income
1
test result for the person.
2
Step 5. Add the parental income test result to the maintenance
3
income test result to get the person's notional reduction.
4
Step 6. If the notional reduction is less than or equal to the MIT
5
reducible amount, the person's reduction for parental
6
income is the notional reduction.
7
Step 7. If the notional reduction is more than the MIT reducible
8
amount, the person's reduction for parental income is
9
the MIT reducible amount.
10
Base FTB child rate
11
1067G-E2 The base FTB child rate is the amount that would be the base FTB
12
child rate within the meaning of the Family Assistance Act, if the
13
person were an FTB child of a parent of the person.
14
Maximum FTB child rate
15
1067G-E3 The maximum FTB child rate is the amount specified for item 2 in
16
column 2 of the table in clause 7 of Schedule 1 to the Family
17
Assistance Act.
18
Note:
The amount is indexed under Schedule 4 of the Family Assistance
19
Act.
20
26 Heading to Submodule 1 of Module F of the Youth
21
Allowance Rate Calculator
22
Repeal the heading, substitute:
23
Submodule 1--Parental income test result
24
27 Point 1067G-F1
25
Repeal the point, substitute:
26
Amendments Schedule 1
Maintenance income test for youth allowance recipients Part 3
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
11
Parental income test result
1
1067G-F1 This is how to work out the parental income test result for a person
2
for the purposes of the method statement in point 1067G-E1.
3
Method statement
4
Step 1. Work out whether the person is exempt from the parental
5
income test using Submodule 2. If the person is exempt,
6
go to step 5.
7
Step 2. If the person is not exempt, identify the appropriate tax
8
year using Submodule 3.
9
Step 3. Work out the person's combined parental income for the
10
appropriate tax year using Submodule 4.
11
Step 4. Work out the person's parental income free area using
12
Submodule 5.
13
Step 5. If:
14
(a)
the person's combined parental income does not
15
exceed the person's parental income free area; or
16
(b)
the person is exempt from the parental income test;
17
then the parental income test result for the person is nil.
18
Step 6. If the person's combined parental income exceeds the
19
person's parental income free area, then the parental
20
income test result for the person is the amount worked
21
out using Submodule 6.
22
28 Heading to Submodule 2 of Module F of the Youth
23
Allowance Rate Calculator
24
Repeal the heading, substitute:
25
Schedule 1 Amendments
Part 3 Maintenance income test for youth allowance recipients
12
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
Submodule 2--Exemption from parental income test
1
29 Point 1067G-F2
2
Repeal the point.
3
30 Point 1067G-F3
4
Omit "The parental income test does not apply to the person", substitute
5
"A person is exempt from the parental income test".
6
31 Point 1067G-F10 (note 1)
7
Repeal the note.
8
32 Heading to Submodule 6 of Module F of the Youth
9
Allowance Rate Calculator
10
Repeal the heading, substitute:
11
Submodule 6--If person's combined parental income exceeds
12
parental income free area
13
33 Point 1067G-F27
14
Omit "reduction for parental income" (wherever occurring), substitute
15
"parental income test result".
16
34 Point 1067G-F28
17
Omit "reduction for parental income", substitute "parental income test
18
result".
19
35 Heading to point 1067G-F29
20
Repeal the heading, substitute:
21
Rounding the parental income test result
22
36 Point 1067G-F31
23
Omit "reduction for parental income", substitute "parental income test
24
result".
25
37 After Module F of the Youth Allowance Rate Calculator
26
Insert:
27
Amendments Schedule 1
Maintenance income test for youth allowance recipients Part 3
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
13
Module GA--Maintenance income test
1
Submodule 1--Maintenance income test result
2
Maintenance income test result
3
1067G-GA1 This is how to work out the maintenance income test result for a
4
person for the purposes of the method statement in point
5
1067G-E1.
6
Method statement
7
Step 1. Work out whether the person is exempt from the
8
maintenance income test using Submodule 2. If the
9
person is exempt, go to step 5.
10
Step 2. If the person is not exempt, work out the annualised
11
amount of maintenance income for a parent of the person
12
(the parent's maintenance income) using Submodule 3.
13
Step 3. Work out the parent's maintenance income free area
14
using Submodule 4.
15
Step 4. Work out whether the parent's maintenance income
16
exceeds the parent's maintenance income free area.
17
Step 5. If:
18
(a)
the parent's maintenance income does not exceed
19
the parent's maintenance income free area; or
20
(b)
the person is exempt from the maintenance income
21
test;
22
then the maintenance income test result for the person is
23
nil.
24
Step 6. If the parent's maintenance income exceeds the parent's
25
maintenance income free area, multiply the excess by 0.5.
26
Schedule 1 Amendments
Part 3 Maintenance income test for youth allowance recipients
14
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
The result, divided by 26, is the maintenance income test
1
result for the person.
2
Submodule 2--Exemption from maintenance income test
3
Parent exempt from FTB maintenance income test
4
1067G-GA2 A person is exempt from the maintenance income test if paragraphs
5
19B(a) and (b) of Schedule 1 to the Family Assistance Act apply to
6
the person's parent or to the parent's partner.
7
Submodule 3--Annualised amount of maintenance income for
8
parent of a person
9
Annualised amount of maintenance income
10
1067G-GA3 Work out the annualised amount of maintenance income for a
11
parent of the person as if step 1 of the method statement in
12
clause 20 of Schedule 1 to the Family Assistance Act applied. In
13
doing so:
14
(a) assume that the person is an FTB child of the parent; and
15
(b) assume that paragraphs (a), (b), (c) and (d) are not in the step;
16
and
17
(c) only take into account maintenance income received in
18
relation to the person; and
19
(d) in working out whether maintenance income is received in
20
relation to the person, have regard to the considerations that
21
would apply under the Family Assistance Act; and
22
(e) have regard to maintenance income for the income year in
23
respect of which the person's rate of youth allowance is
24
being worked out.
25
Submodule 4--Maintenance income free area
26
Main rule
27
1067G-GA4 The maintenance income free area for a parent of a person is:
28
(a) the column 2 amount (see point 1067G-GA7); or
29
(b) if another point in this Submodule applies--the amount
30
worked out in the point.
31
Amendments Schedule 1
Maintenance income test for youth allowance recipients Part 3
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
15
If there are other siblings including an FTB child
1
1067G-GA5 This point applies if the parent of the person is also the parent of:
2
(a) an FTB child in relation to whom the parent receives
3
maintenance income; or
4
(b) both:
5
(i) an FTB child in relation to whom the parent receives
6
maintenance income; and
7
(ii) another person who is receiving youth allowance and in
8
relation to whom the parent receives maintenance
9
income.
10
The maintenance income free area for the parent is the column 3
11
amount (see point 1067G-GA7).
12
If there are other siblings but no FTB child
13
1067G-GA6 This point applies if the parent of the person:
14
(a) is also the parent of another person (an other recipient) who
15
is receiving youth allowance and in relation to whom the
16
parent receives maintenance income; and
17
(b) is not the parent of an FTB child in relation to whom the
18
parent receives maintenance income.
19
The maintenance income free area for the parent is worked out
20
using this formula:
21
Column 2 amount
Column 3 amount for each other recipient
1
Number of other recipients
22
Definitions of column 2 amount and column 3 amount
23
1067G-GA7 In this Submodule:
24
column 2 amount means the amount specified for item 1 in
25
column 2 of the table in clause 22 of Schedule 1 to the Family
26
Assistance Act.
27
column 3 amount means the amount specified for item 1 in
28
column 3 of the table in clause 22 of Schedule 1 to the Family
29
Assistance Act.
30
Schedule 1 Amendments
Part 3 Maintenance income test for youth allowance recipients
16
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
Note:
The amounts are indexed under Schedule 4 of the Family Assistance
1
Act.
2
Receiving maintenance income in relation to a person
3
1067G-GA8 In working out whether a parent of a person receives maintenance
4
income in relation to an FTB child or other person, have regard to
5
the considerations that would apply under the Family Assistance
6
Act.
7
Social Security (Administration) Act 1999
8
38 Subsection 109(6)
9
Omit "section 110A applies", substitute "section 109A or 110A apply".
10
39 After section 109
11
Insert:
12
109A Date of effect of determination under section 78 resulting from
13
review required by section 126A
14
If the Secretary makes a determination under section 78 (rate
15
increase determination) as a result of a review required by
16
section 126A (review of determination of youth allowance rate in
17
relation to maintenance income), the determination takes effect:
18
(a) unless paragraph (b) applies--on the date that would give full
19
effect to the decision on review; or
20
(b) if the date referred to in paragraph (a) is earlier than the first
21
day of the income year before the income year in which the
22
review decision was made--that first day.
23
40 Subsection 110(1)
24
Omit "(11)", substitute "(11A)".
25
41 After subsection 110(11)
26
Insert:
27
(11A) If the Secretary makes a determination under section 78 (rate
28
increase determination) as a result of a revised estimate of
29
maintenance income for a parent of a person as referred to in
30
Amendments Schedule 1
Maintenance income test for youth allowance recipients Part 3
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
17
section 123AA, the determination takes effect on the day the
1
revised estimate was made by, or given to, the Secretary.
2
42 Subsection 114(1)
3
After "109,", insert "109A,".
4
43 Subsection 118(2)
5
Omit "and (2C)", substitute ", (2C), (2D) and (2E)".
6
44 After subsection 118(2C)
7
Insert:
8
(2D) If the Secretary makes a determination under section 79 (rate
9
reduction determination) as a result of a revised estimate of the
10
amount of maintenance income for a parent of a person as referred
11
to in section 123AA, the determination takes effect on the day the
12
revised estimate was made by, or given to, the Secretary.
13
(2E) If the Secretary makes a determination under section 79 (rate
14
reduction determination) as a result of a review required by
15
section 126A (review of determination of youth allowance rate in
16
relation to maintenance income), the determination takes effect on
17
the date that would give full effect to the decision on review.
18
45 At the end of Part 3
19
Add:
20
Division 11--Estimates and verification of maintenance
21
income for Youth Allowance Rate Calculator
22
123AA Estimate of maintenance income for Youth Allowance Rate
23
Calculator
24
(1) In working out the annualised amount of maintenance income for
25
the parent of a person for the purposes of the maintenance income
26
test in Module GA of the Youth Allowance Rate Calculator in
27
section 1067G of the 1991 Act, the Secretary may have regard to
28
an estimate of the amount of maintenance income for a period
29
Schedule 1 Amendments
Part 3 Maintenance income test for youth allowance recipients
18
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
made by, or given to, the Secretary, if the Secretary is satisfied that
1
the estimate is reasonable.
2
(2) If the Secretary has no reason to believe that there is any amount of
3
maintenance income for the parent of the person for the period, the
4
Secretary is taken to have had regard to an estimate of nil.
5
123AB Verification of maintenance income for Youth Allowance
6
Rate Calculator
7
(1) The method statement in this section applies if the Secretary is
8
required by section 126A to review one or more decisions
9
determining a rate of youth allowance for a person for a period or
10
periods in an income year.
11
Method statement
12
Step 1. Work out the amount of maintenance income for a parent
13
of the person for the income year using the information
14
referred to in paragraph 126A(c). In doing so:
15
(a)
assume that the person is an FTB child of the
16
parent for the year; and
17
(b)
only take into account maintenance income
18
received in relation to the person; and
19
(c)
in working out whether maintenance income is
20
received in relation to the person, have regard to
21
the considerations that would apply under the
22
Family Assistance Act.
23
This amount is the parent's actual maintenance income
24
for the income year.
25
Step 2. Work out the annualised maintenance income free area
26
for the parent for the income year under section 123AC.
27
Step 3. Go to:
28
Amendments Schedule 1
Maintenance income test for youth allowance recipients Part 3
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
19
(a)
subsection (2) if the actual maintenance income is
1
equal to or more than the annualised maintenance
2
income free area but no more than 125% of the
3
annualised maintenance income free area; or
4
(b)
subsection (3) if the actual maintenance income is
5
less than the annualised maintenance income free
6
area; or
7
(c)
step 4 if the actual maintenance income is more
8
than 125% of the annualised maintenance income
9
free area.
10
Step 4. If the actual maintenance income is more than 125% of
11
the annualised maintenance income free area, work out
12
the annual amount of estimated maintenance income
13
for the parent under section 123AD.
14
Step 5. Go to:
15
(a)
subsection (2) if the actual maintenance income is
16
equal to or more than the annual amount of
17
estimated maintenance income but no more than
18
125% of the annual amount of estimated
19
maintenance income; or
20
(b)
subsection (3) in any other case.
21
(2) If the method statement says go to this subsection, the Secretary
22
must affirm the decision or decisions under review.
23
(3) If the method statement says go to this subsection, the Secretary
24
must recalculate the person's rate of youth allowance having
25
regard to the parent's actual maintenance income for the income
26
year and vary or substitute the decision or decisions under review
27
accordingly.
28
Schedule 1 Amendments
Part 3 Maintenance income test for youth allowance recipients
20
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
123AC Annualised maintenance income free area
1
For the purposes of the method statement in section 123AB, work
2
out the annualised maintenance income free area for a parent of the
3
person for the income year using this method statement.
4
Method statement
5
Step 1. Using Submodule 4 of Module GA of the Youth
6
Allowance Rate Calculator in section 1067G of the 1991
7
Act, work out whether the maintenance income free area
8
(the MIFA) for the parent was the same on all days in the
9
income year. If it was, then that MIFA is the annualised
10
maintenance income free area for the parent for the
11
income year.
12
Step 2. If the MIFA for the parent was not the same on all days
13
in the income year, work out for how many days in the
14
income year each MIFA applied.
15
Step 3. Work out the MIFA share for each such period by using
16
this formula:
17
Number of days in the period
MIFA
Number of days in the income year
18
Step 4. Add up the MIFA share for each such period in the
19
income year. The result is the annualised maintenance
20
income free area for the parent for the income year.
21
123AD Annual amount of estimated maintenance income
22
For the purposes of the method statement in section 123AB, work
23
out the annual amount of estimated maintenance income for a
24
parent of a person using this method statement.
25
Method statement
26
Amendments Schedule 1
Maintenance income test for youth allowance recipients Part 3
No. , 2015
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
21
Step 1. For each estimate of maintenance income of a parent of a
1
person that applied in relation to a period in the income
2
year, work out the annualised estimate by multiplying
3
the amount of the estimate by:
4
Number of days in income year
Number of days in income year
for which estimate applied
5
Step 2. For each annualised estimate worked out in step 1 for the
6
income year, work out the period estimate by multiplying
7
the annualised estimate by:
8
Number of days in income year
for which estimate applied
Number of days in income year
9
Step 3. Add up all the period estimates for periods that occurred
10
in the income year. This is the annual amount of
11
estimated maintenance income for the parent for the
12
income year.
13
46 After section 126
14
Insert:
15
126A Review of determination of youth allowance rate in relation to
16
maintenance income
17
The Secretary must review a decision under section 126 if:
18
(a) the decision is a determination of the rate of youth allowance
19
payable to a person for a period in an income year; and
20
(b) in making the determination, the Secretary had regard to an
21
estimate of the amount of maintenance income for a parent of
22
the person; and
23
(c) at a time after the end of the income year, the Secretary
24
becomes satisfied that the Secretary has sufficient
25
information to work out the annualised amount of
26
Schedule 1 Amendments
Part 3 Maintenance income test for youth allowance recipients
22
Social Services Legislation Amendment (More Generous Means
Testing for Youth Payments) Bill 2015
No. , 2015
maintenance income for the parent for the income year for
1
the purposes of point 1067G-GA1 of the Youth Allowance
2
Rate Calculator in section 1067G of the 1991 Act, without
3
regard to an estimate.
4
Note:
Section 123AB (verification of maintenance income) applies to the
5
review of the decision.
6
47 Application provision
7
The amendments made by this Part apply in relation to working out
8
rates of youth allowance for days on or after the commencement of this
9
item.
10