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This is a Bill, not an Act. For current law, see the Acts databases.
1996-97
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Social Security
Legislation Amendment (Activity Test Penalty Periods) Bill
1997
No. ,
1997
(Social
Security)
A Bill for an Act to amend the
law relating to social security, and for related purposes
9705520 3,025/25.3.1997 (55/97) Cat. No. 96 7497 7 ISBN 0644 500263
Contents
Social Security Act
1991 7sslaah1.html
Student and Youth Assistance Act
1973 7sslaah1.html
Part 1—Amendment of the Social Security Act
1991 7sslaah1.html
Part 2—Amendment of the Student and Youth Assistance Act
1973 7sslaah1.html
Part 3—Amendment of the Social Security Legislation Amendment (Budget
and Other Measures) Act 1996 7sslaah1.html
A Bill for an Act to amend the law relating to social
security, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Social Security Legislation Amendment
(Activity Test Penalty Periods) Act 1997.
(1) Subject to subsections (2), (3), (4), (5), (6), (7), (8) and (9), this
Act commences on the day on which it receives the Royal Assent.
(2) Subject to subsection (3), Schedule 1 commences on a day to be fixed
by Proclamation.
(3) If Schedule 1 does not commence under subsection (2) within the period
of 6 months beginning on the day on which this Act receives the Royal Assent, it
commences on the first day after the end of that period.
(4) Items 1 and 2 of Schedule 2 are taken to have commenced on 20 March
1997, immediately after the commencement of Parts 3 and 4 of Schedule 5 to the
Social Security Legislation Amendment (Budget and Other Measures) Act
1996.
(5) Item 3 of Schedule 2 is taken to have commenced on 1 January 1997,
immediately after the commencement of Part 2 of Schedule 5 to the Social
Security Legislation Amendment (Budget and Other Measures) Act
1996.
(6) Items 4, 5, 6 and 7 of Schedule 2 are taken to have commenced on 20
March 1997, immediately after the commencement of Part 3 of Schedule 5 to the
Social Security Legislation Amendment (Budget and Other Measures) Act
1996.
(7) Item 8 of Schedule 2 is taken to have commenced on 20 March 1997,
immediately after the commencement of Schedule 12 to the Social Security
Legislation Amendment (Budget and Other Measures) Act 1996.
(8) Item 9 of Schedule 2 commences, or is taken to have commenced, on 1
July 1997, immediately after the commencement of Schedule 14 to the Social
Security Legislation Amendment (Budget and Other Measures) Act
1996.
(9) Item 10 of Schedule 2 commences, or is taken to have commenced, on 1
October 1997, immediately after the commencement of Schedule 18 to the Social
Security Legislation Amendment (Budget and Other Measures) Act
1996.
Subject to section 2, each Act that is specified in a Schedule to this
Act is amended or repealed as set out in the applicable items in the Schedule
concerned, and any other item in a Schedule to this Act has effect according to
its terms.
1 Section 3 (index)
Omit:
|
activity test deferment period |
23(1) |
2 Section 3 (index)
Insert the following entries in their appropriate alphabetical position,
determined on a letter-by-letter basis:
|
activity test breach |
23(1) |
|
activity test breach rate reduction period |
23(1) |
|
activity test non-payment period |
23(1) |
|
activity test penalty period |
23(1) |
|
administrative breach rate reduction period |
23(1) |
3 Subsection 23(1) (definition of activity test
deferment period)
Repeal the definition, substitute:
activity test non-payment period means:
(a) a period worked out under section 630A; or
(b) a period worked out under section 109 of the Student and Youth
Assistance Act 1973.
4 Subsection 23(1)
Insert:
activity test breach means a failure, misconduct or any other
act to which any of the following provisions, as in force on or after the
commencement of this definition, apply:
(a) subsection 624(1), 625(1), 626(1), 630(1) or 630AA(1), or section 628
or 629;
(b) subsection 103(1), 104(1), 105(1), 108(1) or 108A(1) or section 106 or
107 of the Student and Youth Assistance Act 1973.
5 Subsection 23(1)
Insert:
activity test breach rate reduction period means:
(a) a period that applies under section 644AA; or
(b) a period that applies under section 136AA of the Student and Youth
Assistance Act 1973.
6 Subsection 23(1)
Insert:
activity test penalty period means:
(a) an activity test non-payment period; or
(b) an activity test breach rate reduction period.
7 Subsection 615(3A)
Omit “If”, substitute “Subject to subsection (2B),
if”.
8 Paragraph 615(3A)(e)
After “newstart allowance”, insert “more than 14 days
after that allowance ceases to be payable to the person but”.
9 Subdivision F of Division 1 of Part 2.12
(heading)
Repeal the heading, substitute:
10 Subsection 624(1)
Repeal the subsection, substitute:
(1) Subject to subsection (2), if a person fails to satisfy the activity
test (the failure), a newstart allowance is not payable to the
person.
(1A) If a newstart allowance becomes payable to the person after the time
it ceases to be payable under subsection (1), then:
(a) if the failure is the person’s first or second activity test
breach in the 2 years immediately before the day after the failure—an
activity test breach rate reduction period applies to the person; or
(b) if the failure is the person’s third or subsequent activity test
breach in the 2 years immediately before the day after the failure—an
activity test non-payment period applies to the person.
Note: The heading to section 624 is replaced by the heading
“Activity test penalties for failure to satisfy activity
test”.
11 Subsection 624(2)
Omit “activity test deferment
period”, substitute “activity test penalty period”.
12 Section 624 (notes 1 and
2)
Repeal the notes, substitute:
Note: For “Employment Secretary”
see section 23.
13 Subsection 625(1)
Repeal the subsection, substitute:
(1) Subject to subsection (2), if:
(a) a person is required to enter into a Newstart Activity Agreement in
order to qualify, or to continue to qualify, for a newstart allowance;
and
(b) the person fails to enter into a Newstart Activity Agreement (the
failure);
a newstart allowance is not payable to the person because of the
failure.
(1A) If a newstart allowance becomes payable to the person after the time
it ceases to be payable under subsection (1), then:
(a) if the failure is the person’s first or second activity test
breach in the 2 years immediately before the day after the failure—an
activity test breach rate reduction period applies to the person; or
(b) if the failure is the person’s third or subsequent activity test
breach in the 2 years immediately before the day after the failure—an
activity test non-payment period applies to the person.
Note: The heading to section 625 is replaced by the heading
“Activity test penalties for failure to enter Newstart Activity
Agreement”.
14 Subsection 625(2)
Omit “activity test deferment period”, substitute
“activity test penalty period”.
15 Section 625 (note 2)
Repeal the note.
16 Subsection 626(1)
Repeal the subsection and note, substitute:
(1) Subject to subsection (2), if:
(a) a person is required to take reasonable steps to comply with the terms
of a Newstart Activity Agreement in order to qualify, or to continue to qualify,
for a newstart allowance; and
(b) the person fails to take reasonable steps to comply with the terms of
the Newstart Activity Agreement (the failure);
a newstart allowance is not payable to the person because of the
failure.
(1A) If a newstart allowance becomes payable to the person after the time
it ceases to be payable under subsection (1), then:
(a) if the failure is the person’s first or second activity test
breach in the 2 years immediately before the day after the failure—an
activity test breach rate reduction period applies to the person; or
(b) if the failure is the person’s third or subsequent activity test
breach in the 2 years immediately before the day after the failure—an
activity test non-payment period applies to the person.
Note: The operation of this section is modified for
participants in the case management system by section 45 of the Employment
Services Act 1994.
Note: The heading to section 626 is replaced by the heading
“Activity test penalties for failure to comply with Newstart
Activity Agreement”.
17 Subsection 626(2)
Omit “activity test deferment period”, substitute
“activity test penalty period”.
18 Section 626 (note 2)
Repeal the note.
19 Sections 628, 629, 630, 630AA and
630A
Repeal the sections, substitute:
If:
(a) a person’s unemployment is due, either directly or indirectly,
to a voluntary act of the person (the voluntary act);
and
(b) the Secretary is not satisfied that the person’s voluntary act
was reasonable;
then:
(c) if the voluntary act is the person’s first or second activity
test breach in the 2 years immediately before the day after the voluntary
act—an activity test breach rate reduction period applies to the person;
or
(d) if the voluntary act is the person’s third or subsequent
activity test breach in the 2 years immediately before the day after the
voluntary act—an activity test non-payment period applies to the
person.
If a person’s unemployment is due to the person’s misconduct
as a worker (the misconduct), then:
(a) if the misconduct is the person’s first or second activity test
breach in the 2 years immediately before the day after the misconduct—an
activity test breach rate reduction period applies to the person; or
(b) if the misconduct is the person’s third or subsequent activity
test breach in the 2 years immediately before the day after the
misconduct—an activity test non-payment period applies to the
person.
(1) If a person has refused or failed, without reasonable excuse, to
accept a suitable offer of employment (the failure), a newstart
allowance is not payable to the person.
(2) If a newstart allowance becomes payable to the person after the time
it ceases to be payable under subsection (1), then:
(a) if the failure is the person’s first or second activity test
breach in the 2 years immediately before the day after the failure—an
activity test breach rate reduction period applies to the person; or
(b) if the failure is the person’s third or subsequent activity test
breach in the 2 years immediately before the day after the failure—an
activity test non-payment period applies to the person.
(1) If a person:
(a) refuses or fails, without reasonable excuse, to provide information in
relation to a person’s income from remunerative work (the
failure); or
(b) knowingly or recklessly provides false or misleading information in
relation to the person’s income from remunerative work (the
provision of information);
when required to do so under a provision of this Act, a newstart allowance
is not payable to the person.
(2) If a newstart allowance becomes payable to the person after the time
it ceases to be payable under subsection (1), then:
(a) if the failure or the provision of information is the person’s
first or second activity test breach in the 2 years immediately before the day
after the failure or the provision of information—an activity test breach
rate reduction period applies to the person; or
(b) if the failure or the provision of information is the person’s
third or subsequent activity test breach in the 2 years immediately before the
day after the failure or the provision of information—an activity test
non-payment period applies to the person.
If an activity test non-payment period applies to a person under this
Part, the period applicable to the person is 13 weeks.
20 Subsections 630B(1) and
(2)
Omit “deferment” (wherever occurring), substitute
“non-payment”.
Note: The heading to section 630B is altered by omitting
“deferment” and substituting
“non-payment”.
21 Subsection 630B(2)
Omit “Subject to sections 630BA and 630BB”, substitute
“Subject to section 630BA”.
22 Subsections 630B(3), (4) and
(5)
Repeal the subsections, substitute:
(3) If, at the time of the commencement of an activity test non-payment
period under this Part, the person is already subject to an activity test
non-payment period (the pre-existing non-payment period), the
pre-existing non-payment period is taken to end immediately before the
commencement of the activity test non-payment period under this Part.
23 Subsection 630B(6)
Omit “deferment”, substitute
“non-payment”.
24 Subsection 630BA(1)
Omit “deferment” (wherever occurring), substitute
“non-payment”.
Note: The heading to section 630BA is altered by omitting
“deferment” and substituting
“non-payment”.
25 Subsection 630BA(2)
Repeal the subsection.
26 Subsection 630BA(3)
Omit “deferment” (wherever occurring), substitute
“non-payment”.
27 Section 630BB
Repeal the section, substitute:
(1) This section applies if, under this Part:
(a) an activity test non-payment period applies to a person; and
(b) during the whole or part of that period, the whole or part of an
activity test breach rate reduction period also applies to the person (the
overlap period).
Note: Other periods such as an administrative breach rate
reduction period may also apply—see section 644D.
(2) Subject to subsection (4), if this section applies, the activity test
non-payment period and the activity test breach rate reduction period are to run
concurrently during the overlap period.
(3) If this section applies, then, subject to section 630BB, only the
non-payment restriction relating to the activity test non-payment period is to
apply to the person during the overlap period.
(4) If, at the time of the commencement of an activity test non-payment
period under this Part, the person is already subject to an activity test breach
rate reduction period (the pre-existing reduction period), the
pre-existing reduction period is taken to end immediately before the
commencement of the activity test non-payment period under this Part.
(1) This section applies if, under this Part:
(a) an activity test non-payment period applies to a person; and
(b) during the whole or part of that period, the whole or part of a
waiting period also applies to the person (the overlap
period).
Note: Other periods such as an administrative breach rate
reduction period may also apply—see section 644D.
(2) If this section applies, the activity test non-payment period and the
waiting period are to operate concurrently during the overlap period.
(3) If this section applies, then, despite any other provision of this
Act, only the restriction on payment relating to the waiting period is to apply
to the person during the overlap period.
(4) A reference in this section to a waiting period includes a reference
to a liquid assets test waiting period under section 598.
Note: For waiting period see subsection
23(1).
28 Section 630BC
Omit “deferment”, substitute
“non-payment”.
29 Section 630BD
Repeal the section, substitute:
If, but for this section, an event would result in an activity test
penalty period and an administrative breach rate reduction period both applying
to a person under this Act, only the provision imposing the activity test
penalty period is to apply to the person.
30 Subparagraph
641(2)(b)(ii)
Omit “deferment”, substitute
“non-payment”.
31 After subparagraph
641(2)(b)(ii)
Insert:
(iia) the application of an activity test breach rate reduction period
where the activity test breach rate reduction reduces the rate of newstart
allowance payable to the person to nil; or
32 After Subdivision A of Division 4 of Part
2.12
Insert:
If an activity test breach rate reduction period applies to a person
under this Part, the period applicable to the person is 26 weeks.
(1) Subject to section 644AC, if an activity test breach rate reduction
period applies to a person under this Part, the Secretary must give to the
person a written notice informing the person of the commencement of the activity
test breach rate reduction period applicable to the person.
(2) Subject to section 644AC, the activity test breach rate reduction
period commences on the day on which the notice is given to the
person.
(3) If, at the time of the commencement of an activity test breach rate
reduction period under this Part, the person is already subject to an activity
test breach rate reduction period (the pre-existing reduction
period), the pre-existing reduction period is taken to end immediately
before the commencement of the activity test breach rate reduction period under
this Part.
(4) Subject to section 644AC, if, on or before the day on which the period
referred to in subsection (1) would (apart from this subsection) have commenced,
newstart allowance ceases to be payable to the person, the period commences on
the day on which newstart allowance ceases to be payable to the
person.
Note: For activity test breach rate reduction
period see subsection 23(1).
(1) Subject to subsection (2), if:
(a) at a time when the person was not qualified for a newstart allowance,
an event occurred that would have resulted in an activity test breach rate
reduction period applying to the person under this Part had the person made a
claim for a newstart allowance; and
(b) before the end of that period (assuming that the period had commenced
on the day on which the event occurred), the person made a claim for a newstart
allowance;
the activity test breach rate reduction period is taken to have commenced
on the day after the day on which the event occurred.
(2) If:
(a) at a time when the person was not qualified for a newstart allowance,
an event occurred that would have resulted in an activity test breach rate
reduction period applying to the person under this Part had the person made a
claim for a newstart allowance; and
(b) the person makes a claim for a newstart allowance after the end of
that period (assuming that the period had commenced on the day on which the
event occurred);
then:
(c) the activity test breach rate reduction period is taken to have
commenced and to have ended before the claim was made; and
(d) the Secretary is not obliged to give the person a written notice under
subsection 644AB(1).
(1) This section applies if, under this Part:
(a) an activity test breach rate reduction period applies to a person;
and
(b) during the whole or part of that period, the whole or part of a
waiting period also applies to the person (the overlap
period).
Note: Other periods such as an administrative breach rate
reduction period may also apply—see section 644E.
(2) If this section applies, the activity test breach rate reduction
period and the waiting period are to run concurrently during the overlap
period.
(3) If this section applies, then despite any other provision of this Act,
only the restriction on payment relating to the waiting period is to apply to
the person during the overlap period.
Note: For activity test breach rate reduction
period see subsection 23(1).
(4) A reference in this section to a waiting period includes a reference
to a liquid assets test waiting period under section 598.
Note: For waiting period see subsection
23(1).
(1) If:
(a) an activity test breach rate reduction period applies to a person
under this Part; and
(b) the person qualifies for a newstart allowance; and
(c) a newstart allowance is payable to the person;
the person’s rate of newstart allowance for the activity test breach
rate reduction period is worked out as follows:
Newstart allowance rate calculator for activity test breach rate
reduction period
This is how to work out a person’s rate of newstart allowance for an
activity test breach rate reduction period that applies to the person.
Method statement
Step 1. Work out the person’s maximum basic rate of newstart
allowance specified in:
(a) Table B of Module B of Part 3.5 (Benefit Rate Calculator A);
or
(b) Table B of Module B of Part 3.6 (Benefit Rate Calculator B):
the result is called the maximum payment rate.
Step 2. Work out the rate reduction amount in
accordance with subsection (2).
Step 3. Take the rate reduction amount away from the rate of benefit
worked out in accordance with Benefit Rate Calculator A in section 1067 or
Benefit Rate Calculator B in section 1068, as the case requires:
the result is called the activity test breach reduced
rate.
Note: An activity test breach reduced rate may be a nil
rate.
(2) A person’s rate reduction amount is worked out as
follows:
(a) if the activity test breach is the person’s first breach in the
2 year period:
(b) if the activity test breach is the person’s second breach in the
2 year period:
(3) In this section:
2 year period means the 2 years immediately before the day
after the activity test breach.
33 Subsection 644C(2)
Omit “Subject to subsections (3), (4) and (6) and sections 644D and
644E”, substitute “Subject to subsections (3) and
(6)”.
34 Subsections 644C(3), (4) and
(5)
Repeal the subsections, substitute:
(3) If, at the time of the commencement of an administrative breach rate
reduction period under this Part, the person is already subject to an
administrative breach rate reduction period (the pre-existing reduction
period), the pre-existing reduction period is taken to end immediately
before the commencement of the administrative breach rate reduction period under
this Part.
35 Subsection 644C(6)
Omit “Subject to sections 644D and 644E, if”, substitute
“If”.
36 Sections 644D and 644E
Repeal the sections, substitute:
(1) This section applies if, under this Part:
(a) an administrative breach rate reduction period applies to a person;
and
(b) during the whole or part of that period, the whole or part of an
activity test non-payment period also applies to the person (the overlap
period).
Note: Other periods such as a waiting period may also
apply—see section 644EA.
(2) If this section applies, the activity test non-payment period and the
administrative breach rate reduction period are to run concurrently during the
overlap period.
(3) If this section applies, then, subject to section 630BB, the
non-payment penalty relating to the activity test non-payment period is to apply
to the person during the overlap period.
(1) This section applies if, under this Part:
(a) an administrative breach rate reduction period applies to a person;
and
(b) during the whole or part of that period, the whole or part of an
activity test breach rate reduction period also applies to the person (the
overlap period).
Note: Other periods such as a waiting period may also
apply—see section 644EA.
(2) If this section applies, the administrative breach rate reduction
period and the activity test breach rate reduction period are to run
concurrently during the overlap period.
(3) If this section applies, then, subject to sections 630BBA, 630BB,
644AD and 644AE, only the higher of the percentage rate reduction amounts that
relate to the activity test breach rate reduction period and the administrative
breach rate reduction period respectively is the only percentage rate reduction
amount that is to apply to the person during the overlap period.
Note 1: For rate reduction amount in relation to an activity
test breach rate reduction period see subsection 644AC(1).
Note 2:` For rate reduction amount in relation to an
administrative breach rate reduction period see subsection
644H(1).
(1) This section applies if, under this Part:
(a) an administrative breach rate reduction period applies to a person;
and
(b) during the whole or part of that period, the whole or part of a
waiting period also applies to the person (the overlap
period).
Note: Other periods such as activity test breach rate
reduction period may also apply—see section 644E.
(2) If this section applies, the administrative breach rate reduction
period and the waiting period are to run concurrently during the overlap
period.
(3) If this section applies, then, despite any other provision of this
Act, only the restrictions on payments relating to the waiting period are to
apply to the person during the overlap period.
(4) A reference in this section to a waiting
period includes a reference to a liquid assets test waiting period under section
598.
Note: For waiting period see subsection
23(1).
37 Subparagraph
729(2)(d)(i)
Repeal the subparagraph, substitute:
(i) section 625 (person failing to enter into a Newstart Activity
Agreement);
(ia) section 626 (person failing to comply with a Newstart Activity
Agreement);
38 Subparagraph
729(2)(db)(i)
Repeal the subparagraph, substitute:
(i) section 104 of that Act (person failing to enter into a Youth Training
Activity Agreement);
(ia) section 105 of that Act (person failing to comply with a Youth
Training Activity Agreement);
39 Subsection 771HA(4) (first
occurring)
Repeal the subsection, substitute:
Person subject to an activity test breach rate reduction
period
(3A) If an activity test breach rate reduction period applies to a person
under Part 2.12 or Part 8 of the Student and Youth Assistance Act 1973,
the person is not qualified for partner allowance throughout the
period.
Person subject to an administrative breach rate reduction
period
(3B) If an administrative breach rate reduction period applies to a person
under Part 2.12 or Part 8 of the Student and Youth Assistance Act 1973,
the person is not qualified for partner allowance throughout the
period.
40 Subparagraph
1241(1)(b)(ii)
Omit “deferment”, substitute “activity test
non-payment”.
41 Subparagraph
1251(1)(b)(ii)
Omit “deferment”, substitute “activity test
non-payment”.
42 At the end of Schedule
1A
Add:
(1) Subject to subclauses (2), (3), (4) and (5), this Act, as amended by
Schedule 1 to the amending Act, applies to events occurring on or after the
commencement.
(2) If, immediately before the commencement, a person was subject to an
activity test deferment period that would end on or after the commencement,
then, despite the amendments made by Schedule 1 to the amending Act, this Act,
as in force immediately before the commencement, continues to apply to the
person in relation to that period.
(3) If:
(a) an event occurs before the commencement that would, apart from this
subclause, result in a person being subject to an activity test deferment period
or an administrative breach rate reduction period; and
(b) the period referred to in paragraph (a) has not commenced before the
commencement; and
(c) an action has occurred or a decision has been taken under this Act in
relation to the application of the activity test deferment period or the
administrative breach rate reduction period to the person;
then:
(d) this Act, as amended by Schedule 1 to the amending Act, applies to the
event referred to in paragraph (a) from the commencement; and
(e) despite the fact that the event occurred before the commencement, the
period or periods are to begin on the commencement.
(4) If subclauses (2) and (3) both apply, then, despite any other
provision of this Act, only the restrictions on payments relating to the
activity test deferment period are to apply to the person during the period of
overlap.
(5) If:
(a) an event occurs before the commencement that would, apart from this
subclause, result in a person being subject to an activity test deferment period
or an administrative breach rate reduction period; and
(b) the period referred to in paragraph (a) has not commenced before the
commencement; and
(c) before the commencement, neither an action has occurred, nor a
decision been taken, under this Act relating to the application of the activity
test deferment period to the person;
this Act, as amended by Schedule 1 to the amending Act, applies to the
event referred to in paragraph (a) as if the event occurred on the
commencement.
(6) In this clause:
amending Act means the Social Security Legislation
Amendment (Activity Test Penalty Periods) Act 1997.
commencement means the commencement of this clause.
Student
and Youth Assistance Act 1973
43 Subsection 58(1) (definition of activity
test deferment period)
Repeal the definition
44 Subsection 91(3A)
Omit “If”, substitute “Subject to subsection (2B),
if”.
45 Paragraph 91(3A)(e)
After “youth training allowance”, insert “more than 14
days after that allowance ceases to be payable to the person
but”.
46 Subdivision F of Division 2 of Part 8
(heading)
Repeal the heading, substitute:
47 Subsection 103(1)
Repeal the subsection, substitute:
(1) Subject to subsection (2), if a person fails to satisfy the activity
test (the failure), a youth training allowance is not payable to
the person.
(1A) If a youth training allowance becomes payable to the person after the
time it ceases to be payable under subsection (1), then:
(a) if the failure is the person’s first or second activity test
breach in the 2 years immediately before the day after the failure—an
activity test breach rate reduction period applies to the person; or
(b) if the failure is the person’s third or subsequent activity test
breach in the 2 years immediately before the day after the failure—an
activity test non-payment period applies to the person.
Note: The heading to section 103 is replaced by the heading
“Activity test penalties for failure to satisfy activity
test”.
48 Section 103 (note)
Repeal the note.
49 Subsection 104(1)
Repeal the subsection, substitute:
(1) Subject to subsection (2), if:
(a) a person is required to enter into a Youth Training Activity Agreement
in order to qualify, or to continue to qualify, for a youth training allowance;
and
(b) the person fails to enter into a Youth Training Activity Agreement
(the failure);
a youth training allowance is not payable to the person because of the
failure.
(1A) If a youth training allowance becomes payable to the person after the
time it ceases to be payable under subsection (1), then:
(a) if the failure is the person’s first or second activity test
breach in the 2 years immediately before the day after the failure—an
activity test breach rate reduction period applies to the person; or
(b) if the failure is the person’s third or subsequent activity test
breach in the 2 years immediately before the day after the failure—an
activity test non-payment period applies to the person.
Note: The heading to section 104 is replaced by the heading
“Activity test penalties for failure to enter Youth Training
Activity Agreement”.
50 Section 104 (note)
Repeal the note.
51 Subsection 105(1)
Repeal the subsection and note, substitute:
(1) Subject to subsection (2), if:
(a) a person is required to take reasonable steps to comply with the terms
of a Youth Training Activity Agreement in order to qualify, or to continue to
qualify, for a youth training allowance; and
(b) the person fails to take reasonable steps to comply with the terms of
the Youth Training Activity Agreement (the failure);
a youth training allowance is not payable to the person because of the
failure.
(1A) If a youth training allowance becomes payable to the person after the
time it ceases to be payable under subsection (1), then:
(a) if the failure is the person’s first or second activity test
breach in the 2 years immediately before the day after the failure—an
activity test breach rate reduction period applies to the person; or
(b) if the failure is the person’s third or subsequent activity test
breach in the 2 years immediately before the day after the failure—an
activity test non-payment period applies to the person.
Note: The operation of this section is modified for
participants in the case management system by section 45 of the Employment
Services Act 1994.
Note: The heading to section 105 is replaced by the heading
“Activity test penalties for failure to comply with Youth Training
Activity Agreement”.
52 Section 105 (note)
Repeal the note.
53 Sections 106, 107,108, 108A and
109
Repeal the sections, substitute:
If:
(a) a person’s unemployment is due, either directly or indirectly,
to a voluntary act of the person (the voluntary act);
and
(b) the Secretary is not satisfied that the person’s voluntary act
was reasonable;
then:
(c) if the voluntary act is the person’s first or second activity
test breach in the 2 years immediately before the day after the voluntary
act—an activity test breach rate reduction period applies to the person;
or
(d) if the voluntary act is the person’s third or subsequent
activity test breach in the 2 years immediately before the day after the
voluntary act—an activity test non-payment period applies to the
person.
If a person’s unemployment is due to the person’s misconduct
as a worker (the misconduct), then:
(a) if the misconduct is the person’s first or second activity test
breach in the 2 years immediately before the day after the misconduct—an
activity test breach rate reduction period applies to the person; or
(b) if the misconduct is the person’s third or subsequent activity
test breach in the 2 years immediately before the day after the
misconduct—an activity test non-payment period applies to the
person.
(1) If a person has refused or failed, without reasonable excuse, to
accept a suitable offer of employment (the failure), a youth
training allowance is not payable to the person.
(2) If a youth training allowance becomes payable to the person after the
time it ceases to be payable under subsection (1), then:
(a) if the failure is the person’s first or second activity test
breach in the 2 years immediately before the day after the failure—an
activity test breach rate reduction period applies to the person; or
(b) if the failure is the person’s third or subsequent activity test
breach in the 2 years immediately before the day after the failure—an
activity test non-payment period applies to the person.
(1) If a person:
(a) refuses or fails, without reasonable excuse, to provide information in
relation to a person’s income from remunerative work (the
failure); or
(b) knowingly or recklessly provides false or misleading information in
relation to the person’s income from remunerative work (the
provision of information);
when required to do so under a provision of this Act, a youth training
allowance is not payable to the person.
(2) If a youth training allowance becomes payable to the person after the
time it ceases to be payable under subsection (1), then:
(a) if the failure or the provision of information is the person’s
first or second activity test breach in the 2 years immediately before the day
after the failure or the provision of information—an activity test breach
rate reduction period applies to the person; or
(b) if the failure or provision of information is the person’s third
or subsequent activity test breach in the 2 years immediately before the day
after the failure or the provision of information—an activity test
non-payment period applies to the person.
If an activity test non-payment period applies to a person under this
Part, the period applicable to the person is 13 weeks.
54 Subsections 110(1) and
(2)
Omit “deferment” (wherever occurring), substitute
“non-payment”.
Note: The heading to section 110 is altered by omitting
“deferment” and substituting
“non-payment”.
55 Subsection 110(2)
Omit “sections 111 and 112”, substitute “section
111”.
56 Subsections 110(3), (4) and
(5)
Repeal the subsections, substitute:
(3) If, at the time of the commencement of an activity test non-payment
period under this Part, the person is already subject to an activity test
non-payment period (the pre-existing non-payment period), the
pre-existing non-payment period is taken to end immediately before the
commencement of the activity test non-payment period under this Part.
57 Subsection 110(6)
Omit “deferment”, substitute
“non-payment”.
58 Subsection 111(1)
Omit “deferment” (wherever occurring), substitute
“non-payment”.
Note: The heading to section 111 is altered by omitting
“deferment” and substituting
“non-payment”.
59 Subsection 111(2)
Repeal the subsection.
60 Subsection 111(3)
Omit “deferment” (wherever occurring), substitute
“non-payment”.
61 Section 112
Repeal the section, substitute:
(1) This section applies if, under this Part:
(a) an activity test non-payment period applies to a person; and
(b) during the whole or part of that period, the whole or part of an
activity test breach rate reduction period also applies to the person (the
overlap period).
Note: Other periods such as an administrative breach rate
reduction period may also apply—see section 136C.
(2) Subject to subsection (4), if this section applies, the activity test
non-payment period and the activity test breach rate reduction period are to run
concurrently during the overlap period.
(3) If this section applies, then, subject to section 112, only the
non-payment restriction relating to the activity test non-payment period is to
apply to the person during the overlap period.
(4) If, at the time of the commencement of an activity test non-payment
period under this Part, the person is already subject to an activity test breach
rate reduction period (the pre-existing reduction period), the
pre-existing reduction period is taken to end immediately before the
commencement of the activity test non-payment period under this Part.
(1) This section applies if, under this Part:
(a) an activity test non-payment period applies to a person; and
(b) during the whole or part of that period, the whole or part of a
waiting period also applies to the person (the overlap
period).
Note: Other periods such as an administrative breach rate
reduction period may also apply—see section 136C.
(2) If this section applies, the non-payment period and the waiting period
are to run concurrently during the overlap period.
(3) If this section applies, then, despite any other provision of this
Act, only the restriction on payment relating to the waiting period is to apply
to the person during the overlap period.
(4) A reference in this section to a waiting period includes a reference
to a liquid assets test waiting period under section 72.
62 Section 113
Omit “deferment”, substitute
“non-payment”.
63 Section 113A
Repeal the section, substitute:
If, but for this section, an event would result in an activity test
penalty period and an administrative breach rate reduction period applying to a
person under the provisions of this Act, only the provision imposing the
activity test penalty period is to apply to the person.
64 Subparagraph
133(2)(b)(ii)
Omit “deferment”, substitute
“non-payment”.
65 After subparagraph
132(2)(b)(ii)
Insert:
(iia) the application of an activity test breach rate reduction period
where the activity test breach rate reduction reduces the rate of youth training
allowance payable to the person to nil; or
66 After Subdivision A of Division 5 of Part
8
Insert:
If an activity test breach rate reduction period applies to a person
under this Part, the period applicable to the person is 26 weeks.
(1) Subject to section 136AC, if an activity test breach rate reduction
period applies to a person under this Part, the Secretary must give to the
person a written notice informing the person of the commencement of the activity
test breach rate reduction period applicable to the person.
(2) Subject to section 136AC, the activity test breach rate reduction
period commences on the day on which the notice is given to the
person.
(3) If, at the time of the commencement of an activity test breach rate
reduction period under this Part, the person is already subject to an activity
test breach rate reduction period (the pre-existing reduction
period), the pre-existing reduction period is taken to end immediately
before the commencement of the activity test breach rate reduction period under
this Part.
(4) Subject to section 136AC, if, on or before the day on which the period
referred to in subsection (1) would (apart from this subsection) have commenced,
youth training allowance ceases to be payable to the person, the period
commences on the day on which youth training allowance ceases to be payable to
the person.
(1) Subject to subsection (2), if:
(a) at a time when the person was not qualified for a youth training
allowance, an event occurred that would have resulted in an activity test breach
rate reduction period applying to the person under this Part had the person made
a claim for a youth training allowance; and
(b) before the end of that period (assuming that the period had commenced
on the day on which the event occurred), the person made a claim for a youth
training allowance;
the activity test breach rate reduction period is taken to have commenced
on the day after the day on which the event occurred.
(2) If:
(a) at a time when the person was not qualified for a youth training
allowance, an event occurred that would have resulted in an activity test breach
rate reduction period applying to the person under this Part had the person made
a claim for a youth training allowance; and
(b) the person makes a claim for a youth training allowance after the end
of that period (assuming that the period had commenced on the day on which the
event occurred);
then:
(c) the activity test breach rate reduction period is taken to have
commenced and to have ended before the claim was made; and
(d) the Secretary is not obliged to give the person a written notice under
subsection 136AB(1).
(1) This section applies if, under this Part:
(a) an activity test breach rate reduction period applies to a person;
and
(b) during the whole or part of that period the whole or part of a waiting
period also applies to the person (the overlap period).
Note: Other periods such as an administrative breach rate
reduction period may also apply—see section 136D.
(2) If this section applies, the activity test breach rate reduction
period and the waiting period are to run concurrently during the overlap
period.
(3) If this section applies, then despite any other provision of this Act,
only the restriction on payment relating to the waiting period is to apply to
the person during the overlap period.
(4) A reference in this section to a waiting period includes a reference
to a liquid assets test waiting period under section 72.
(1) If:
(a) an activity test breach rate reduction period applies to a person
under this Part; and
(b) the person qualifies for a youth training allowance; and
(c) a youth training allowance is payable to the person;
the person’s rate of youth training allowance for the activity test
breach rate reduction period is worked out as follows:
Youth training allowance rate calculator for activity test breach rate
reduction period
This is how to work out a person’s rate of youth training allowance
for an activity test breach rate reduction period that applies to the
person.
Method statement
Step 1. Work out the person’s maximum basic rate of youth
training allowance specified in Table B of Module B of Schedule 1:
the result is called the maximum payment rate.
Step 2. Work out the rate reduction amount in
accordance with subsection (2).
Step 3. Take the rate reduction amount away from the rate of benefit
worked out in accordance with Schedule 1:
the result is called the activity test breach reduced
rate.
Note: An activity test breach reduced rate may be a nil
rate.
(2) A person’s rate reduction amount is worked out as
follows:
(a) if the activity test breach is the person’s first breach in the
2 year period:
(b) if the activity test breach is the person’s second breach in the
2 year period:
(3) In this section:
2 year period means the 2 years immediately before the day
after the activity test breach.
67 Subsection 136B(2)
Omit “Subject to subsections (3), (4) and (6) and sections 136C and
136D”, substitute “Subject to subsection (6)”.
68 Subsections 136B(3), (4) and
(5)
Repeal the subsections, substitute:
(3) If, at the time of the commencement of an administrative breach rate
reduction period under subsection (1), the person is already subject to an
administrative breach rate reduction period (the pre-existing reduction
period), the pre-existing reduction period is taken to end immediately
before the commencement of the administrative breach rate reduction period under
subsection (1).
69 Subsection 136B(6)
Omit “Subject to sections 136C and 136D, if”, substitute
“If”.
70 Sections 136C and 136D
Repeal the sections, substitute:
(1) This section applies if, under this Part:
(a) an administrative breach rate reduction period applies to a person;
and
(b) during the whole or part of that period, the whole or part of an
activity test non-payment period also applies to the person (the overlap
period).
Note: Other periods such as a waiting period may also
apply—see section 136DA.
(2) If this section applies, the activity test non-payment period and the
administrative breach rate reduction period are to run concurrently during the
overlap period.
(3) If this section applies, then, subject to section 112, the non-payment
penalty relating to the activity test non-payment period is to apply to the
person during the overlap period.
(1) This section applies if, under this Part:
(a) an administrative breach rate reduction period applies to a person;
and
(b) during the whole or part of that period, the whole or part of an
activity test breach rate reduction period also applies to the person (the
overlap period).
Note: Other periods such as a waiting period may also
apply—see section 136DA.
(2) Subject to subsection (3), if this section applies, the administrative
breach rate reduction period and the whole or part of the activity test breach
rate reduction period are to run concurrently during the overlap
period.
(3) If this section applies, then, subject to sections 111A, 112, 136AD
and 136AE, the higher of the percentage rate reduction amounts that relate to
the activity test breach rate reduction period and the administrative breach
rate reduction period respectively is the only percentage rate reduction amount
that is to apply to the person during the overlap period.
Note 1: For rate reduction amount in relation to an activity
test breach rate reduction period see subsection 136AC(1).
Note 2:` For rate reduction amount in relation to an
administrative breach rate reduction period see subsection
136G(1).
(1) This section applies if, under this Part:
(a) an administrative breach rate reduction period applies to a person;
and
(b) during the whole or part of that period the whole or part of a waiting
period also applies to the person (the overlap period).
Note: Other periods such as an activity test breach rate
reduction period may also apply—see section 136E.
(2) If this section applies, the whole or part of the administrative
breach rate reduction period and the whole or part of the waiting period are to
run concurrently during the overlap period.
(3) If this section applies, then despite any other provision of this Act,
only the restrictions on payments relating to the waiting period are to apply to
the person during the overlap period.
(4) A reference in this section to a waiting period includes a reference
to a liquid assets test waiting period under section 72.
71 At the end of Schedule 5
Add:
(1) Subject to subclauses (2), (3), (4) and (5), this Act, as amended by
Schedule 1 to the amending Act, applies to events occurring on or after the
commencement.
(2) If, immediately before the commencement, a person was subject to an
activity test deferment period that would end on or after the commencement,
then, despite the amendments made by Schedule 1 to the amending Act, this Act,
as in force immediately before the commencement, continues to apply to the
person in relation to that period.
(3) If:
(a) an event occurs before the commencement that would, apart from this
subclause, result in a person being subject to an activity test deferment period
or an administrative breach rate reduction period; and
(b) the period referred to in paragraph (a) has not commenced before the
commencement; and
(c) an action has occurred or a decision has been taken under this Act in
relation to the application of the activity test deferment period or the
administrative breach rate reduction period to the person;
then:
(d) this Act, as amended by Schedule 1 to the amending Act, applies to the
event referred to in paragraph (a) from the commencement; and
(e) despite the fact that the event occurred before the commencement, the
period or periods referred to in paragraph (a) are to begin on the
commencement.
(4) If subclauses (2) and (3) both apply, then, despite any other
provision of this Act, only the restrictions on payments relating to the
activity test deferment period are to apply to the person during the period of
overlap.
(5) If:
(a) an event occurs before the commencement that would, apart from this
subclause, result in a person being subject to an activity test deferment period
or an administrative breach rate reduction period; and
(b) the period referred to in paragraph (a) has not commenced before the
commencement; and
(c) before the commencement, neither an action has occurred, nor a
decision been taken, under this Act relating to the application of the activity
test deferment period to the person;
this Act, as amended by Schedule 1 to the amending Act, applies to the
event referred to in paragraph (a) as if the event occurred on the
commencement.
(6) In this clause:
amending Act means the Social Security Legislation
Amendment (Activity Test Penalty Periods) Act 1997.
commencement means the commencement of this
clause.
Part
1—Amendment of the Social Security Act 1991
1 Clause 98 of Schedule 1A
Repeal the clause, substitute:
(1) Subject to subclauses (2), (3) and (4), this Act, as amended by Parts
3 and 4 of Schedule 5 to the amending Act, applies to events occurring on or
after 20 March 1997.
(2) Subject to subclause (4), if, immediately before 20 March 1997, a
person was subject to an activity test deferment period or an administrative
breach deferment period that would end on or after 20 March 1997, then, despite
the amendments made by Parts 3 and 4 of Schedule 5 to the amending Act, this
Act, as in force immediately before 20 March 1997 continues to apply to the
person in relation to that period.
(3) If:
(a) immediately before 20 March 1997, a person was subject to an
administrative breach deferment period that would end on or after 20 March 1997;
and
(b) an activity test deferment period or an administrative breach rate
reduction period applies to the person on or after 20 March 1997;
then, despite the amendments made by Part 3 of Schedule 5 to the amending
Act, the activity test deferment period or administrative breach rate reduction
period commences the day after the end of the administrative breach deferment
period.
(4) If:
(a) an event occurs before 20 March 1997 that results in a person being
subject to an activity test deferment period or an administrative breach
deferment period; and
(b) the period referred to in paragraph (a) has not commenced before 20
March 1997;
this Act applies as if the amendments made by Parts 3 and 4 of Schedule 5
had commenced the day before the event referred to in paragraph (a)
occurred.
(5) In this clause:
amending Act means the Social Security Legislation
Amendment (Budget and Other Measures) Act 1996.
Part
2—Amendment of the Student and Youth Assistance Act
1973
2 Clause 2 of Schedule 5
Repeal the clause, substitute:
(1) Subject to subclauses (2), (3) and (4), this Act, as amended by Parts
3 and 4 of Schedule 5 to the amending Act, applies to events occurring on or
after 20 March 1997.
(2) Subject to subclause (4), if, immediately before 20 March 1997, a
person was subject to an activity test deferment period or an administrative
breach deferment period that would end on or after 20 March 1997, then, despite
the amendments made by Parts 3 and 4 of Schedule 5 to the amending Act, this
Act, as in force immediately before 20 March 1997 continues to apply to the
person in relation to that period.
(3) If:
(a) immediately before 20 March 1997, a person was subject to an
administrative breach deferment period that would end on or after 20 March 1997;
and
(b) an activity test deferment period or an administrative breach rate
reduction period applies to the person on or after 20 March 1997;
then, despite the amendments made by Part 3 of Schedule 5 to the amending
Act, the activity test deferment period or administrative breach rate reduction
period commences the day after the end of the administrative breach deferment
period.
(4) If:
(a) an event occurs before 20 March 1997 that results in a person being
subject to an activity test deferment period or an administrative breach
deferment period; and
(b) the period referred to in paragraph (a) has not commenced before 20
March 1997;
then, this Act applies as if the amendments made by Parts 3 and 4 of
Schedule 5 had commenced the day before the event referred to in paragraph (a)
occurred.
(5) In this clause:
amending Act means the Social Security Legislation
Amendment (Budget and Other Measures) Act 1996.
Part
3—Amendment of the Social Security Legislation Amendment (Budget and Other
Measures) Act 1996
3 Item 11 of Schedule 5
(heading)
Omit “84”, substitute “75”.
4 Item 79 of Schedule 5
(heading)
Omit “period”, substitute
“provision”.
5 Item 98 of Schedule 5
Repeal the item, substitute:
98 Subsection 110(1)
Omit “a youth training allowance automatic deferment provision of
this Subdivision applies to a person”, substitute “an activity test
deferment period applies to a person under this Part”.
6 Item 99 of Schedule 5
Repeal the item, substitute:
99 Subsection 110(3)
Omit “automatic deferment provision”, substitute
“activity test deferment period”.
7 Item 117 of Schedule 5
Omit “Insert in Division 4”, substitute “Insert in
Division 5”.
8 Item 48 of Schedule 12
Repeal the item, substitute:
48 After subsection 228(2)
Insert:
Person member of a couple—payment received on or after 20 March
1997
(2A) If:
(a) a person receives or claims a youth training allowance; and
(b) the person is a member of a couple; and
(c) the person receives a lump sum compensation payment (whether before or
after the person receives or claims the youth training allowance) on or after 20
March 1997;
no youth training allowance is payable to the person for the lump sum
preclusion period.
9 Item 2 of Schedule 14
Repeal the item, substitute:
2 After paragraph 4D(1)(c)
Insert:
(c) sickness allowance; or
10 Item 107 (heading) of Schedule
18
Omit “287(2)”, substitute
“287(3)”.