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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
Veterans’
Affairs Legislation Amendment (Budget and Simplification Measures) Bill
1997
No. ,
1997
(Veterans’
Affairs)
A Bill for an Act to amend the law
relating to veterans’ affairs, and for related
purposes
9705420 1,325/24.3.1997 (54/97) Cat. No.. 96 7496 9 ISBN 0644 500220
Contents
A Bill for an Act to amend the law relating to
veterans’ affairs, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Veterans’ Affairs Legislation
Amendment (Budget and Simplification Measures) Act 1997.
(1) Subject
to this section, this Act commences on the day on which it receives the Royal
Assent.
(2) Schedules 1, 2 and 3 commence on 1 January 1998.
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Act is amended or repealed as set out in the applicable items in the Schedule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 5 (Index)
Insert in their appropriate alphabetical positions, determined on a
letter-by-letter basis:
|
dependent child |
5F(1) |
|
FP child |
5F(1) |
|
Rate Calculator |
5Q(1) |
|
war widow/war widower—pensioner |
5Q(1) |
2 Section 5 (Index)
Repeal:
|
additional amounts for dependent children |
5Q(1) |
|
compensation affected component |
5NB(1) |
|
dependent child |
5F(2), (3), (4) and (5) |
|
dependent child add-on |
5Q(1) |
|
dependent child component |
5NB(1) |
|
guardian allowance |
5Q(1) |
|
pension increase child |
5F(1) |
|
prescribed educational scheme |
5F(1) |
|
prescribed student child |
5F(1) |
|
student child |
5F(1) |
3 Subsection 5F(1) (definition of dependent
child)
Repeal the definition, substitute:
dependent child has the same meaning as in the Social
Security Act.
4 Subsection 5F(1)
Insert:
FP child has the same meaning as in the Social Security
Act.
5 Subsection 5F(1) (definition of pension
increase child)
Repeal the definition.
6 Subsection 5F(1) (definition of prescribed
educational scheme)
Repeal the definition.
7 Subsection 5F(1) (definition of prescribed
student child)
Repeal the definition.
8 Subsection 5F(1) (definition of student
child)
Repeal the definition.
9 Subsection 5F(1) (note)
Repeal the note.
10 Subsections 5F(2) to (4)
Repeal the subsections, substitute:
When a person becomes a dependent child
(2) A person becomes a dependent child at the time when the person would
become a dependent child for the purposes of the Social Security Act if that Act
applied in respect of the person.
When a person becomes an FP child
(3) A person becomes an FP child at the time when the person becomes an FP
child for the purposes of the Social Security Act.
11 Subsection 5F(6)
Repeal the subsection.
12 Subsection 5NB(1) (definition of
compensation affected component)
Repeal the definition.
13 Subsection 5NB(1) (definition of dependent
child component)
Repeal the definition.
14 Subsection 5Q(1) (definition of additional
amounts for dependent children)
Repeal the definition.
15 Subsection 5Q(1) (definition of dependent
child add-on)
Repeal the definition.
16 Subsection 5Q(1) (definition of guardian
allowance)
Repeal the definition.
17 Subsection 5Q(1) (definition of
pension)
After “IIIC”, insert “and Schedule 6,”.
18 Subsection 5Q(1)
Insert:
Rate Calculator means the Rate Calculator in Part 2 of
Schedule 6.
19 Subsection 5Q(1)
Insert:
war widow/war widower—pensioner means a person who is
receiving a pension under Part II or IV at a rate determined under or by
reference to subsection 30(1).
20 Subsections 5R(9) and
(10)
Repeal the subsections.
21 Paragraph 5R(11)(b)
Repeal the paragraph, substitute:
(b) the person’s remote area allowance includes an amount for an FP
child; and
22 Subsection 5R(11) (note
1)
Repeal the note, substitute:
Note 1: For an FP child see subsection
5F(1).
23 Paragraph 5R(12)(d)
Repeal the paragraph, substitute:
(d) immediately before the person’s rate ceases to include remote
area allowance, the remote area allowance includes an amount for an FP child;
and
24 Subsection 5R(12)
Omit “a pensioner add-on child or an income support supplement add-on
child (as the case may be)”, substitute “an FP
child”.
25 Subsection 5R(12) (note
1)
Repeal the note, substitute:
Note 1: For an FP child see subsection
5F(1).
26 Paragraph 35(1)(b)
Omit “respectively); and”, substitute
“respectively).”.
27 Paragraph 35(1)(c)
Repeal the paragraph.
28 Paragraphs 35(2)(c) and
(d)
Repeal the paragraphs, substitute:
(c) rates provisions (how much the payment will be).
29 Subsection 36A(2) (note)
Omit “relevant Pension”.
30 Section 36N
Repeal the section, substitute:
A veteran’s age service pension rate is worked out in accordance
with section 41.
31 Subsection 37A(2) (note)
Omit “relevant Pension”.
32 Section 37N
Repeal the section, substitute:
A veteran’s invalidity service pension rate is worked out in
accordance with section 41.
33 Subsection 38A(2) (note)
Omit “relevant Pension”.
34 Section 38N
Repeal the section, substitute:
A person’s partner service pension rate is worked out in accordance
with section 41.
35 Division 7 of Part III
Repeal the Division, substitute:
(1) The rate of:
(a) age service pension; or
(b) invalidity service pension; or
(c) partner service pension;
is, subject to subsection (2), to be calculated in accordance with the Rate
Calculator.
Note 1: Module A of the Rate Calculator establishes the
overall rate calculation process and the remaining Modules provide for the
calculation of the component amounts used in the overall rate
calculation.
Note 2: The rate obtained by applying the Rate Calculator
may be reduced because of the receipt of payments under the New Enterprise
Incentive Scheme (see Division 9 of Part IIIB).
Reduced rate if social security pension was payable to person in the
previous week
(2) If:
(a) a service pension becomes payable to a person on a pension payday (the
service pension payday); and
(b) a social security pension was payable to the person on the pension
payday (within the meaning of the Social Security Act) immediately before the
service pension payday;
the rate at which the service pension is payable to the person on the
service pension payday is to be worked out by using the following
formula:
(3) In this section:
pharmaceutical allowance means the amount of pharmaceutical
allowance taken into account in working out the rate of the person’s
service pension under the relevant Method statement in Module A of the Rate
Calculator.
reduced annual rate means the rate that would be the rate of
the person’s service pension if:
(a) it were worked out by using the Rate Calculator; and
(b) the pharmaceutical allowance were nil.
36 Subdivision A of Division 5 of Part IIIA
(heading)
Repeal the heading.
37 Section 45S
Repeal the section, substitute:
(1) The rate of income support supplement is, subject to subsections (2)
and (3), to be calculated in accordance with the Rate Calculator.
Limit if partner not receiving pension or benefit
(2) If:
(a) the person is a member of a couple; and
(b) the person’s partner is not receiving a service pension, an
income support supplement or a social security pension or benefit;
the rate of the person’s income support supplement is not to exceed
twice the rate at which income support supplement would be payable to the person
if the person’s partner were receiving a service pension, an income
support supplement, a social security pension or a social security
benefit.
Reduced rate if social security pension was payable to person in the
previous week
(3) If:
(a) income support supplement becomes payable to a person on a pension
payday (the income support supplement payday); and
(b) a social security pension was payable to the person on the pension
payday (within the meaning of the Social Security Act) immediately before the
income support supplement payday;
the rate at which income support supplement is payable to the person on the
income support supplement payday is to be worked out by using the
formula:
(4) In this section:
pharmaceutical allowance means the amount of pharmaceutical
allowance taken into account in working out the rate of the person’s
income support supplement under the relevant Method statement in Module A of the
Rate Calculator.
reduced annual rate means the rate that would be the rate of
the person’s income support supplement if:
(a) it were worked out by using the Rate Calculator; and
(b) the pharmaceutical allowance were nil.
38 Sections 45T, 45U, 45V and
45W
Repeal the sections.
39 Subdivisions B and C of Division 5 of Part
IIIA
Repeal the Subdivisions.
40 Subsection 47(3)
Repeal the subsection, substitute:
(3) This Division applies for the purposes of the Rate
Calculator.
41 Division 10 of Part IIIB
(heading)
Repeal the heading, substitute:
42 Paragraph 52Z(6)(b)
Repeal the paragraph, substitute:
(b) despite section 41 (calculation of rate of service pension) and
section 45S (calculation of rate of income support supplement).
43 Subsection 52ZAAA(1) (definition of
adjusted income reduced rate)
Repeal the definition, substitute:
adjusted income reduced rate, in relation to an income
support supplement, means the rate worked out in relation to that supplement at
Step 6 of Method statement 5 in Module A of the Rate Calculator.
44 Subsection 52ZAAA(1) (definition of assets
reduced rate)
Repeal the definition, substitute:
assets reduced rate, in relation to a service pension or an
income support supplement, means the rate worked out in relation to that pension
or supplement at Step 8 of Method statement 1 or Step 8 of Method statement 5,
as the case may be, in Module A of the Rate Calculator.
45 Subsection 52ZAAA(1) (definition of income
reduced rate)
Repeal the definition, substitute:
income reduced rate, in relation to a service pension, means
the rate worked out in relation to that pension at Step 6 of Method
statement 1 in Module A of the Rate Calculator.
46 Subsection 52ZAAA(1) (definition of
maximum payment rate)
Repeal the definition, substitute:
maximum payment rate, in relation to a service pension or an
income support supplement, means the rate worked out in relation to that pension
or supplement at Step 4 of Method statement 1, Step 4 of Method statement 2 or
Step 4 of Method statement 5, as the case may be, in Module A of the Rate
Calculator.
47 Point 53F-2 (note)
Repeal the note, substitute:
Note: For a person’s annual rate of ordinary
income see Module E of the Rate Calculator as it applies in calculating
the rate of service pension.
48 Point 53F-4 (note 2)
Repeal the note, substitute:
Note 2: For a person’s annual rate of ordinary
income see Module E of the Rate Calculator as it applies in calculating
the rate of service pension.
49 Subsection 53M(3)
Omit “if section 41, 42 or 43 (whichever is appropriate) had applied
in working out the rate of the pension and section 45 had not applied”,
substitute “if Method statement 1 or Method statement 2 (whichever is
appropriate) in Module A of the Rate Calculator had applied in working out the
rate of the pension and Method statement 3 or Method statement 4, as the case
may be, in that Module had not applied”.
50 Paragraph 53M(4)(a)
Omit “, or adjusted ceiling rate, as the case may
be,”.
51 Paragraph 53M(4)(b)
Repeal the paragraph, substitute:
(b) in respect of a partner who was permanently blind—the maximum
basic rate.
52 Paragraphs 53R(b) and
(c)
Repeal the paragraphs, substitute:
(b) a dependent child dies.
53 Subsection 55B(2) (including the
note)
Repeal the subsection (including the note), substitute:
(2) While a person to whom this Subdivision applies is an inmate of the
benevolent home, the person’s pension is to be dealt with under section
55D.
54 Section 55C
Repeal the section.
55 Subsection 55D(1)
Omit all the words before paragraph (a), substitute “While a person
is an inmate of a benevolent home:”.
Note: The heading to section 55D is altered by omitting
“—other cases”
56 Subsection 56G(2) (note)
Omit “the maintenance income test”, substitute
“maintenance income”.
57 Section 56GA
Repeal the section, substitute:
If a determination under section 56C is made after a person tells the
Department that the person has a child, or an additional child, that is a
dependent child, the determination takes effect on the first pension payday
after the day on which the child is taken to have become a dependent
child.
Note: The day is determined by reference to the Social
Security Act (see subsection 5F(2)).
58 Paragraph 56H(7)(a)
Omit “point 41-D2B or 42-E2B”, substitute “point
SCH6-E4”.
59 Paragraph 56H(8)(a)
Omit “point 41-D2B or 42-E2B”, substitute “point
SCH6-E4”.
60 Subsection 58K(1) (note)
Omit “points 41-CA1A, 42-DA1A, 43-DA1A, 44-CA1A”, substitute
“point SCH6-D2”.
61 Section 59A (table item 1, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-B1—Table B—column 3—all
amounts”.
62 Section 59A (table items 2, 3, 4 and
5)
Repeal the items.
63 Section 59A (table item 6, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-C8—Table C-2—column 4—all
amounts”.
64 Section 59A (table item 6A, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-C6—Table C-1—column 3—all
amounts”.
65 Section 59A (table items 7 and 7AAA, column
4)
Repeal the items, substitute:
|
7. |
Ordinary/adjusted income free area |
Pension free area |
*Rate Calculator—point SCH6-E6—Table E-1—column
3—all amounts |
66 Section 59A (table item 7AA, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-C15—Table C-3—column 3—all
amounts”.
67 Section 59A (table items 7A and
7B)
Repeal the items.
68 Section 59A (table item 9, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-F3—Table F-1—column 3A—item
1”.
69 Section 59A (table item 10, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-F3—Table F-1—column 3B—item
1”.
70 Section 59A (table item 11, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-F3—Table F-1—column 3A—item
2”.
71 Section 59A (table item 12, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-F3—Table F-1—column 3B—item
2”.
72 Section 59A (table item 18, column
4)
Omit everything in the column, substitute “*Rate
Calculator—point SCH6-D7—Table D—column 3—all
amounts”.
73 Section 59B (CPI Indexation Table items 4A
and 4B)
Repeal the items.
74 Subsection 59EA(1)
Repeal the subsection, substitute:
(1) In this section:
category A amount means an amount set out in column 3 of item
1 of Table B in point SCH6-B1.
category B amount means an amount set out in column 3 of item
2 of Table B in point SCH6-B1.
75 Sections 59F and 59G
Repeal the sections.
76 Subsection 59L(1)
Omit “Social Security Act 1991”, substitute
“Social Security Act”.
77 Subsection 59L(2)
Omit “Part VII”, substitute “Part VIIA”.
78 Subsection 59L(2)
Omit “Social Security Act 1991”, substitute
“Social Security Act”.
79 Subsection 59M(2)
Omit “or (if the pension has a dependent child component) the
compensation affected component of the pension”.
80 Subsection 59M(3)
Omit “or (if the pension has a dependent child component) the
compensation affected component of the pension”.
81 Subsection 59M(4)
Omit “or (if the pension has a dependent child component) the
compensation affected component of the pension”.
82 Subsection 59P(6)
Omit “or (if the pension has a dependent child component) the
compensation affected component of the pension”.
83 Subsection 59P(6) (note)
Repeal the note.
84 Subsection 59P(7)
Omit “or (if the pension has a dependent child component) the
compensation affected component of the pension”.
85 Subsection 59P(7) (note)
Repeal the note.
86 Subsection 59Q(1)
Omit “or (if the pension has a dependent child component) the
compensation affected component of the pension”.
87 Subsection 59Q(1) (note
1)
Omit “, dependent child component and
compensation affected component”.
88 Paragraph 59Q(2)(d)
Omit “or (if the pension has a dependent child component) the
compensation affected component of the pension”.
89 Paragraph 59Q(2)(e)
Omit “or (if that pension has a dependent child component) the
compensation affected component of that pension”.
90 Subsection 59Q(2) (note
1)
Omit “, dependent child component and
compensation affected component”.
91 Subsection 59Q(2A)
Omit “, or (if the pension has a dependent child component) the
compensation affected component of the pension,”.
92 Subsection 59Q(2A) (note
1)
Omit “, dependent child component and
compensation affected component”.
93 Subsection 59Q(7) (definition of OIFA
(ordinary income free area))
Omit “Table D-1 in point 41-D4”, substitute “Table E-1 in
point SCH6-E6”.
94 Subsection 59Q(7) (definition of MBR
(maximum basic rate))
Omit “41-B1”, substitute “SCH6-B1”.
95 Subsection 59Q(7) (definition of RPA
(rate of pharmaceutical allowance))
Omit “calculated as set out in point 41-CA7”, substitute
“set out in column 3 of item 1 in Table D in point
SC6-D7”.
96 Paragraph 59R(3)(d)
Omit “, or (if the person’s pension has a dependent child
component) of the compensation affected components of the pension
payments,”.
97 Paragraph 59R(4)(d)
Omit “, or (if the person’s pension has a dependent child
component) the compensation affected component of the pension
payments,”.
98 Subparagraph
59R(4)(d)(i)
Omit “, or (if the partner’s pension has a dependent child
component) the compensation affected components of the pension
payments,”.
99 Paragraph 59R(5)(b)
Omit “, or (if the person’s pension has a dependent child
component) of the compensation affected components of the pension
payments,”.
100 Subsection 59T(1)
Omit “or (if the person’s pension has a dependent child
component) the compensation affected component of the pension”.
101 Subsection 59T(1) (note
1)
Repeal the note, substitute:
Note 1: For periodic payments period and
compensation affected pension see subsection
5NB(1).
102 Subsection 59T(5)
(note)
Repeal the note, substitute:
Note: If a person’s pension is reduced under this
section, the order in which the reduction is to be made against the components
of the maximum payment rate is provided by clause 4 of Part 1 of Schedule
6.
103 Section 59T (example 3)
Repeal the example.
104 Subsection 59U(1)
Omit “or (if the person’s pension has a dependent child
component) the compensation affected component of the person’s
pension”.
105 Subsection 59U(2)
Omit “or (if the person’s pension has a dependent child
component) the compensation affected component of the person’s
pension”.
106 Paragraph 59V(b)
Repeal the paragraph, substitute:
(b) the rate of the person’s pension is reduced under the
ordinary/adjusted income test Module or the assets test Module of the Rate
Calculator;
107 Section 59V
Omit “ordinary income” (last occurring), substitute
“ordinary/adjusted income”.
108 Paragraph 59W(3)(d)
Omit “, or if the person’s pension has a dependent child
component) of the compensation affected components of the pension
payments,”.
109 Paragraph 59W(4)(d)
Omit “, or (if the person’s pension has a dependent child
component) the compensation affected components of the pension
payments,”.
110 Subparagraph
59W(4)(d)(i)
Omit “, or (if the partner’s pension has a dependent child
component) the compensation affected components of the pension
payments,”.
111 Section 59W (example 3)
Repeal the example.
112 Paragraph 59ZA(4)(c)
Omit “, or (if the person’s pension has a dependent child
component) of the compensation affected components of the pension
payments,”.
113 Paragraph 59ZA(5)(c)
Omit “, or (if the person’s pension has a dependent child
component) the compensation affected components of the pension
payments,”.
114 Subparagraph
59ZA(5)(c)(i)
Omit “, or (if the partner’s pension has a dependent child
component) the compensation affected components of the pension
payments,”.
115 Paragraph 59ZG(4)(c)
Omit “, or (if the person’s pension has a dependent child
component) of the compensation affected components of the pension
payments,”.
116 Paragraph 59ZG(5)(c)
Omit “, or (if the person’s pension has a dependent child
component) the compensation affected components of the pension
payments,”.
117 Subparagraph
59ZG(5)(c)(i)
Omit “, or (if the partner’s pension has a dependent child
component) the compensation affected components of the pension
payments,”.
118 Subsection 67C(3) (definition of annual
payment rate)
Omit “payable under the relevant Pension Rate Calculator to the
person on the last pension payday”, substitute “last determined by
the Commission to be the rate of pension payable to the person”.
119 Subsection 67C(5)
Repeal the subsection, substitute:
Amount of advance—Service pensioners who are war widows/war
widowers—pensioners
(5) If service pension calculated in accordance with Method statement 3 or
4 in Module A of the Rate Calculator is payable to a person, the maximum amount
of the advance payment to the person is $500.
120 Section 67J
Repeal the section, substitute:
(1) If the rate of pension (excluding any amount payable by way of remote
area allowance) is less than the amount that would be the advance payment
deduction apart from this section, the advance payment deduction is taken to be
equal to that rate of pension.
(2) This section has effect subject to sections 67JA and 67JB.
121 Subsection 67JA(1)
Repeal the subsection, substitute:
(1) This section applies to a person whose rate of service pension is
calculated in accordance with Method statement 3 or 4 in Module A of the Rate
Calculator.
122 Subsection 67JA(2)
Omit “provisional rate referred to in the Rate Calculator”,
substitute “person’s rate of pension”.
123 Subsection 67JB(2)
Omit “person’s conditional payment rate (if any) referred to in
the relevant Rate Calculator in Part IIIA”, substitute “rate of the
person’s pension that is payable (excluding any amount payable by way of
remote area allowance)”.
124 Subsection 67JB(2)
(note)
Repeal the note.
125 Section 67JC (example)
Omit “the Service Pension Rate Calculator for ‘Frozen
Rate’ Widows and Widowers”, substitute “Method statement 3 in
Module A of the Rate Calculator”.
126 After subparagraph
118A(1)(a)(i)
Insert:
(ia) an income support supplement; or
127 Subsection
118A(1)(note)
Omit “118B(2)”, substitute “118B(1A)”.
128 Subsection 118B(1A)
After “Part III”, insert “, or an income support
supplement under Part IIIA,”.
129 Section 118L (note)
Repeal the note, substitute:
Note: Pharmaceutical allowance rates are to be found
at:
(a) point SCH6-D7 of the Rate Calculator;
and
(b) section 118C.
130 Subsection 118ZAD(1) (definition of
pensioner unpartnered maximum basic rate)
Repeal the definition, substitute:
pensioner unpartnered maximum basic rate means the current
figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount
applicable, under item 1 in column 3 of Table B in point SCH6-B1 of the
Rate Calculator.
131 Subsection 118ZAD(1) (definition of
pensioner unpartnered income free area)
Repeal the definition, substitute:
pensioner unpartnered income free area means the current
figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount
applicable, under item 1 in column 3 of Table E-1 in point SCH6-E6 of the Rate
Calculator.
132 Subsection 118ZAD(2) (definition of
pensioner partnered maximum basic rate)
Repeal the definition, substitute:
pensioner partnered maximum basic rate means the current
figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount
applicable, under item 2 in column 3 of Table B in point SCH6-B1 of the Rate
Calculator.
133 Subsection 118ZAD(2) (definition of
pensioner partnered income free area)
Repeal the definition, substitute:
pensioner partnered income free area means the current
figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount
applicable, under item 2 in column 3 of Table E-1 in point SCH6-E6 of the Rate
Calculator.
134 Subsection 118ZAD(3) (definition of
pensioner illness separated couple maximum basic
rate)
Repeal the definition, substitute:
pensioner illness separated couple maximum basic rate means
the current figure, as at that 1 January, 20 March, 1 July or 20 September, for
the amount applicable, under item 1 in column 3 of Table B in point SCH6-B1 of
the Rate Calculator.
135 Subsection 118ZAD(3) (definition of
pensioner illness separated couple income free area)
Repeal the definition, substitute:
pensioner illness separated couple income free area means the
current figure, as at that 1 January, 20 March, 1 July or 20 September, for the
amount applicable, under item 2 in column 3 of Table E-1 in point SCH6-E6 of the
Rate Calculator.
136 Subsection 118ZAD(4) (definition of
pensioner respite care couple maximum basic rate)
Repeal the definition, substitute:
pensioner respite care couple maximum basic rate means the
current figure, as at that 1 January, 20 March, 1 July or 20 September, for the
amount applicable, under item 1 in column 3 of Table B in point SCH6-B1 of the
Rate Calculator.
137 Subsection 118ZAD(4) (definition of
pensioner respite care couple income free area)
Repeal the definition, substitute:
pensioner respite care couple income free area means the
current figure, as at that 1 January, 20 March, 1 July or 20 September, for the
amount applicable, under item 2 in column 3 of Table E-1 in point SCH6-E6 of the
Rate Calculator.
138 Section 198E
Repeal the section.
139 Subclause 1(1) of Schedule
5
Omit “sections 41, 42 and 43”, substitute “section
41”.
140 At the end of Schedule
5
Add:
(1) If:
(a) a determination is made on or after 1 January 1998 that a claim for a
service pension or income support supplement is to be granted; and
(b) because of section 36M or 45R, the determination takes effect before
that date; and
(c) had the amendments made by Schedule 1 to the Veterans’
Affairs Legislation Amendment (Budget and Simplification Measures) Act 1997
not been made, an instalment of the pension or supplement that was payable on a
pension pay-day that occurred before that date would have included a
child-related amount;
the instalment is to include that amount.
(2) If the amount of an instalment of a service pension or income support
supplement that was payable on a pension pay-day before 1 January 1998 would,
had the amendments made by Schedule 1 to the Veterans’ Affairs
Legislation Amendment (Budget and Simplification Measures) Act 1997 not been
made, be taken to have been increased so as to include a child-related amount,
the instalment is taken to have been so increased.
(3) In this section:
child-related amount, at any relevant time, means an amount
that was required at that time to be included in a service pension under Module
C or Module D (as Module C or Module D was affected by Module DAA) of the
Service Pension Rate Calculator at the end of section 42, or in an income
support supplement under Module F or Module G (as Module F or Module G was
affected by Module H) of the Income Support Supplement Rate Calculator at the
end of section 45Y, of the Veterans’ Entitlements Act 1986 as in
force at that time.
(1) This section applies to a person if:
(a) immediately before 1 January 1998 a service pension or income support
supplement was payable to the person at a rate that included one or more
pension/supplement child-related amounts in respect of a child or children;
and
(b) the Commission determines on or before 31 March 1998, or after that
date as a result of an application made by the person to the Commission on or
before that date, that, on 1 January 1998, the person’s notional
pension/supplement child-related amount was or will be greater than the notional
family payment child-related amount in relation to the person or the
person’s partner.
(2) The rate of service pension or income support supplement payable to
the person includes the person’s notional pension/supplement child-related
amount until the time (the cessation time) when that amount ceases
to be greater than the notional family payment child-related amount in relation
to the person or the person’s partner.
(3) The rate of service pension or income support supplement payable to
the person at any time after the cessation time does not include the
person’s notional pension/supplement child-related amount even though that
amount may again become greater than the notional family payment child-related
amount in relation to the person or the person’s partner.
(4) In this section:
notional family payment child-related amount, in relation to
a person or a person’s partner at any time, means the amount by which the
rate of family payment that would be payable to the person or the person’s
partner at that time under the Social Security Act except for point 1069-B8 of
that Act would be more than the minimum family payment rate.
notional pension/supplement child-related amount, in relation
to a person at any time, means the total of the pension/supplement child-related
amounts that would have been included at that time in the rate of the service
pension or income support supplement payable to the person in respect of any
child or children referred to in paragraph (1)(a) if the amendments made by
Schedule 1 to the Veteran’s Affairs Legislation Amendment (Budget and
Simplification Measures) Act 1997 had not been made.
pension/supplement child-related amount, at any relevant
time, means an amount that was or would be required at that time to be included
in a service pension under Module C or Module D (as Module C or Module D was
affected by Module DAA) of the Service Pension Rate Calculator at the end of
section 42, or in an income support supplement under Module F or Module G (as
Module F or Module G was affected by Module H) of the Income Support Supplement
Rate Calculator at the end of section 45Y, of the Veterans’
Entitlements Act 1986 as in force immediately before 1 January
1998.
141 At the end of the Act
Add:
(1) The following are the usual steps in the rate calculation
process:
(a) start with a maximum basic rate;
(b) add any additional amounts that are subject to income or assets
testing;
(c) apply the income and assets tests;
(d) add any additional amounts that are not subject to income or assets
testing.
Note 1: The additional amounts referred to in paragraph (b)
are amounts for rent assistance and pharmaceutical allowance.
Note 2: The only additional amount for the purposes of
paragraph (d) at this time is remote area allowance.
(2) The overall rate calculation process is described in the relevant
Method statement in Module A of the Rate calculator.
(1) The Rate Calculator uses the following standard categories of family
situations:
(a) not member of a couple;
(b) member of a couple or partnered;
(c) member of an illness separated couple;
(d) member of a respite care couple;
(e) partnered (partner getting neither pension nor benefit);
(f) partnered (partner getting pension);
(g) partnered (partner getting benefit).
Note: See sections 5E and 5R for definitions of those
terms.
(2) If it is necessary to distinguish between the members of
sub-categories of these standard categories, further words of description are
added to the standard category label.
(1) The Rate Calculator is divided into Modules (for example, Module A).
(2) A Module of the Rate Calculator is divided into points.
(3) The points in a Module are identified by:
(a) the letters and number SCH6 (followed by a dash), which
indicate that the Module is in the Rate Calculator in this Schedule;
and
(b) a letter that is the letter allocated to the Module in which the point
occurs; and
(c) a number that identifies the order of the point within the
Module.
Example: Point SCH6-E8 is the eighth point in Module E of
the Rate Calculator in this Schedule.
(4) A point in a Module may be divided into subpoints.
(1) If:
(a) the rate of a service pension or income support supplement applicable
to a person is increased under Module C (rent assistance) or Module D
(pharmaceutical allowance) of the Rate Calculator; and
(b) the rate of the pension is to be reduced under Module E
(ordinary/adjusted income test) or Module F (assets test) of the Rate
Calculator;
the reduction is to be applied:
(c) first, to the rate of the pension apart from any increase under Module
C (rent assistance) or Module D (pharmaceutical allowance); and
(d) then, to the amount of any increase under Module C (rent assistance);
and
(e) finally, to the amount of any increase under Module D (pharmaceutical
allowance).
(2) If:
(a) the rate of a service pension or income support supplement applicable
to a person is increased under Module C (rent assistance) or Module D
(pharmaceutical allowance) of the Rate Calculator; and
(b) an amount of the pension is to be reduced under section 59T
(compensation recovery);
the reduction is to be applied:
(c) first, to that part of the amount that does not include any increase
under Module C (rent assistance) or Module D (pharmaceutical allowance);
and
(d) then, to the amount of any increase under Module C (rent assistance);
and
(e) finally, to the amount of any increase under Module D (pharmaceutical
allowance).
(3) If the following circumstances apply to a person:
(a) the person is permanently blind;
(b) a service pension is payable to the person;
(c) the rate of the person’s pension is calculated using Method
statement 4 in Module A of the Rate Calculator;
(d) if the person were not permanently blind and the rate of the
person’s pension were calculated using Method statement 1 in Module A of
the Rate Calculator, the person would be eligible to have an amount of rent
assistance added to his or her maximum basic rate under that Method
statement;
the person’s ceiling rate for the purposes of Method statement 4 in
Module A of the Rate Calculator is taken to include an amount for rent
assistance worked out under Module C of the Rate Calculator.
(4) If the following circumstances apply to a person:
(a) the person is permanently blind;
(b) income support supplement is payable to the person;
(c) if the person were not permanently blind (i.e. if the rate of income
support supplement were calculated using Method statement 5, instead of Method
statement 6, in Module A of the Rate Calculator), the person would be eligible
to have an amount of rent assistance added to his or her maximum basic rate
under Method statement 5;
the person’s ceiling rate for the purposes of Method statement 6 in
Module A of the Rate Calculator is taken to include an amount for rent
assistance worked out under Module C of the Rate Calculator.
(1) The amounts and rates set out in the Rate Calculator at the time of
commencement of this Schedule (the commencing time) are the same
as the corresponding amounts and rates that applied under this Act as in force
on 1 January 1997.
(2) However, each amount or rate so set out that is subject to indexation
or adjustment under Division 18 of Part IIIB is taken to be replaced immediately
after the commencing time by the amount or rate that would have been in force at
that time as a result of the application of that Division if this Schedule had
commenced on 1 January 1997.
Rate to be an annual rate
SCH6-A1(1) The rate of pension is an annual rate (fortnightly amounts are
provided for information only).
Method statement 1 (service pension, not blind, not war widow/war
widower—pensioner)
(2) The rate of service pension for a person who:
(a) is not permanently blind; and
(b) is not a war widow/war widower—pensioner;
is worked out in accordance with Method statement 1.
Note: For war widow/war
widower—pensioner see subsection 5Q(1).
Method statement 1
Step 1. Work out the person’s maximum basic
rate using MODULE B below.
Step 2. Work out the amount per year (if any) by way of rent
assistance using MODULE C below.
Step 3. Work out the amount per year (if any) of pharmaceutical
allowance using MODULE D below.
Step 4. Add up the amounts obtained in Steps 1, 2 and 3: the result
is called the maximum payment rate.
Step 5. Apply the ordinary/adjusted income test using MODULE E below
to work out the reduction for ordinary/adjusted income.
Step 6. Take the reduction for ordinary/adjusted income away from
the maximum payment rate: the result is called the income reduced
rate.
Step 7. Apply the assets test using MODULE F below to work out the
reduction for assets.
Step 8. Take the reduction for assets away from the maximum payment
rate: the result is called the assets reduced
rate.
Step 9. Compare the income reduced rate and the assets reduced rate:
the lower of the 2 rates, or the income reduced rate if the rates are equal, is
the provisional payment rate.
Step 10. Work out the amount per year (if any) payable by way of
remote area allowance using MODULE G below.
Step 11. Add any amount obtained in Step 10 to the person’s
provisional payment rate (see Step 9). The result is the person’s
rate of service pension.
Note 1: For ordinary/adjusted income see
point SCH6-E1.
Note 2: If a person’s assets reduced rate is less
than the person’s ordinary/adjusted income reduced rate, the person may be
able to take advantage of provisions dealing with financial hardship (sections
52Y and 52Z).
Note 3: If a person’s rate is, or is to be, an income
reduced rate or an assets reduced rate, and at least one of those reduced rates
is not a nil rate, the person may be able to take advantage of provisions
dealing with the pension loans scheme (sections 52ZAAA to 52ZM).
Note 4: If a person’s rate is reduced under
step 9, the order in which the reduction is to be made against the
components of the maximum payment rate is laid down by clause 4 of
Part 1 (maximum basic rate first, then rent assistance and finally
pharmaceutical allowance).
Note 5: The rate calculation for a member of a couple is
affected by the operation of point SCH6-A2.
Note 6. The amount of a fortnightly instalment of service
pension will be rounded off to the nearest multiple of 10 cents (see subsections
58A(2) and (3)).
Note 7: For the minimum amount of a fortnightly instalment
of service pension, see subsection 58A(4).
Note 8: An amount of remote area allowance is to be added
under Step 11 only if the person’s rate of service pension is greater
than nil or, apart from section 36A, 37A or 38A, the person’s rate of
service pension would be nil.
Note 9: The amount of a fortnightly instalment of service
pension may be reduced by an advance payment deduction (see Division 6 of
Part IIID).
Method statement 2 (service pension, blind, not war widow/war
widower—pensioner)
(3) The rate of service pension for a person who:
(a) is permanently blind; and
(b) is not a war widow/war widower—pensioner;
is worked out in accordance with Method statement 2.
Note: For war widow/war
widower—pensioner see subsection 5Q(1).
Method statement 2
Step 1. Work out what would be the person’s rate of service
pension if Method statement 1 applied to the person: the result is called the
notional income/assets tested rate.
Note: This is the only situation in which a blind
person’s pension can be made subject to an income test or assets test (see
point SCH6-A3).
Step 2. Work out the person’s maximum basic
rate using MODULE B below.
Step 3. Work out the amount per year (if any) for pharmaceutical
allowance using MODULE D below.
Step 4. Add up the amounts obtained in Steps 2 and 3: the result is
called the maximum payment rate.
Step 5. Work out the amount per year (if any) payable by way of
remote area allowance using MODULE G below.
Step 6. Add:
(a) the maximum payment rate; and
(b) any amount obtained under Step 5.
The result is called the non-income/assets tested
rate.
Step 7. Compare the notional income/assets tested rate and the
non-income/assets tested rate: whichever is the greater is the person’s
rate of service pension.
Note 1: The amount of a fortnightly instalment of service
pension will be rounded off to the nearest multiple of 10 cents (see subsections
58A(2) and (3)).
Note 2: For the minimum amount of a fortnightly instalment
of service pension, see subsection 58A(4).
Note 3: The amount of a fortnightly instalment of service
pension may be reduced by an advance payment deduction (see Division 6 of
Part IIID).
Method statement 3 (service pension, not blind, war widow/war
widower—pensioner)
(4) The rate of service pension for a person who:
(a) is not permanently blind; and
(b) is a war widow/war widower—pensioner;
is worked out in accordance with Method statement 3.
Note: For war widow/war
widower—pensioner see subsection 5Q(1).
Method statement 3
Step 1. Work out what would be the person’s rate of service
pension if Method statement 1 applied to the person: the result is called the
provisional rate.
Step 2. Work out the person’s ceiling rate in
accordance with points SCH6-A4 and SCH6-A5.
Step 3. Work out the amount per year (if any) of pharmaceutical
allowance using MODULE D below.
Step 4. Work out the amount per year (if any) payable by way of
remote area allowance using MODULE G below.
Step 5. Add:
(a) the ceiling rate; and
(b) any amount obtained under Step 3; and
(c) any amount obtained under Step 4.
The result is the revised ceiling rate.
Step 6. Compare the provisional rate and the revised ceiling rate:
the person’s rate of service pension is:
(a) the provisional rate if it is lower than the revised ceiling rate;
or
(b) the revised ceiling rate if it is lower than or equal to the
provisional rate.
Note: The amount of a fortnightly instalment of service
pension may be reduced by an advance payment deduction (see Division 6 of
Part IIID).
Method statement 4 (service pension, blind, war widow/war
widower—pensioner)
(5) The rate of service pension for a person who:
(a) is permanently blind; and
(b) is a war widow/war widower—pensioner;
is worked out in accordance with Method statement 4.
Note: For war widow/war
widower—pensioner see subsection 5Q(1).
Method statement 4
Step 1. Work out the person’s ceiling rate in
accordance with points SCH6-A4 and SCH6-A5.
Step 2. Work out the amount per year (if any) of pharmaceutical
allowance using MODULE D below.
Step 3. Work out the amount per year (if any) payable by way of
remote area allowance using MODULE G below.
Step 4. Add:
(a) the ceiling rate; and
(b) any amount obtained under Step 2; and
(c) any amount obtained under Step 3.
The result is the person’s rate of service
pension.
Note: The amount of a fortnightly instalment of service
pension may be reduced by an advance payment deduction (see Division 6 of
Part IIID).
Method statement 5 (income support supplement, not blind)
(6) The rate of income support supplement for a person who is not
permanently blind is worked out in accordance with Method statement 5.
Method statement 5
Step 1. Work out the amount of the person’s maximum
basic rate using MODULE B below.
Step 2. Work out the amount per year (if any) for rent assistance
using MODULE C below.
Step 3. Work out the amount per year (if any) of the pharmaceutical
allowance using MODULE D below.
Step 4. Add up the amounts obtained in Steps 1, 2 and 3: the result
is called the maximum payment rate.
Step 5. Apply the ordinary/adjusted income test using MODULE E below
to work out the reduction for ordinary/adjusted income.
Step 6. Take the reduction for ordinary/adjusted income away from
the maximum payment rate: the result is called the income reduced
rate.
Step 7. Apply the assets test using MODULE F below to work out the
reduction for assets.
Step 8. Take the reduction for assets away from the maximum payment
rate: the result is called the assets reduced rate.
Step 9. Work out the person’s ceiling rate in accordance with
points SCH6-A4 to SCH6-A9, and add any amount per year of pharmaceutical
allowance (see Step 3); the result is called the increased ceiling
rate.
Step 10. Compare the income reduced rate (see Step 6), the assets
reduced rate (see Step 8) and the increased ceiling rate (see Step 9): the
person’s provisional payment rate is equal to:
(a) whichever is the lowest of those rates; or
(b) if 2 of those rates are the same and the third one is higher—the
lower rate; or
(c) if the 3 rates are the same—the income reduced rate.
Step 11. Work out the amount per year (if any) payable by way of
remote area allowance using MODULE G below.
Step 12. Add any amount obtained in Step 11 to the person’s
provisional payment rate (see Step 10): the result is the person’s
rate of income support supplement.
Note 1: For ordinary/adjusted income see
point SCH6-E1.
Note 2: If a person’s assets reduced rate is less
than the person’s adjusted income reduced rate, the person may be able to
take advantage of provisions dealing with financial hardship (sections 52Y and
52Z).
Note 3: If a person’s rate is, or is to be, an
adjusted income reduced rate or an assets reduced rate, and at least one of
those reduced rates is not a nil rate, the person may be able to take advantage
of provisions dealing with the pension loans scheme (sections 52ZAAA to 52ZM).
Note 4: If a person’s rate is reduced under
Step 10, the order in which the reduction is to be made against the
components of the maximum payment rate is laid down by clause 4 of
Part 1 (maximum basic rate first, then rent assistance and finally
pharmaceutical allowance).
Note 5: The rate calculation for a member of a couple is
affected by the operation of point SCH6-A2.
Note 6. The amount of a fortnightly instalment of income
support supplement will be rounded off to the nearest multiple of 10 cents (see
subsections 58A(2) and (3)).
Note 7: For the minimum amount of a fortnightly instalment
of income support supplement, see subsection 58A(4).
Note 8: The amount of a fortnightly instalment of income
support supplement may be reduced by an advance payment deduction (see Division
6 of Part IIID).
Method statement 6 (income support supplement, blind)
(7) The rate of income support supplement for a permanently blind person
is worked out in accordance with Method statement 6.
Method statement 6
Step 1. Work out the person’s ceiling rate in
accordance with points SCH6-A4 and SCH6-A5.
Step 2. Work out the amount per year (if any) of the pharmaceutical
allowance using MODULE D below.
Step 3. Work out the amount per year (if any) payable by way of
remote area allowance using MODULE G below.
Step 4. Add:
(a) the ceiling rate; and
(b) any amount obtained under Step 2; and
(c) any amount obtained under Step 3.
The result is the person’s rate of income support
supplement.
Note: The amount of a fortnightly instalment of income
support supplement may be reduced by an advance payment deduction (see Division
6 of Part IIID).
Members of couple
SCH6-A2 If 2 people are members of a couple, they will be treated as
pooling their resources (income and assets) and sharing those resources on a
50/50 basis (see points SCH6-E3 and SCH6-F2 below). They will also be
treated as sharing expenses (eg for rent) on a 50/50 basis (see
points SCH6-C10 and SCH6-C11 below).
Ordinary/adjusted income test and assets test generally not to apply to
permanently blind people
SCH6-A3 Except for the purposes of Step 1 in Method statement 2
(applicable in respect of permanently blind service pensioners who are not war
widows/war widowers—pensioners), a permanently blind person’s
pension is not subject to an ordinary/adjusted income test (compare Module E) or
an assets test (compare Module F).
Ceiling rate
SCH6-A4 The ceiling rate for a war widow/war widower—pensioner is
$3,122.60 unless point SCH6-A5 applies to him or her.
SCH6-A5 If:
(a) a person became a war widow/war widower—pensioner before
1 November 1986; and
(b) immediately before that day the person was receiving a social security
pension at a rate (the pre-November 1986 rate) equal to or more
than $3,122.60; and
(c) since that day the person has been continuously receiving the social
security pension or income support supplement;
his or her ceiling rate is equal to the pre-November 1986 rate.
SCH6-A6 However, if:
(a) a war widow/war widower—pensioner is a person:
(i) to whom income support supplement is payable; and
(ii) who is not permanently blind; and
(b) the person’s pension under Part II or IV is compensation
reduced;
the ceiling rate for the war widow/war widower—pensioner is the sum
of:
(c) the rate applying under point SCH6-A4 or SCH6-A5, as the case may be;
and
(d) the amount of the reduction in the pension under Part II or IV worked
out under points SCH6-A7 to SCH6-A9.
Compensation reduced pension under Part II or IV
SCH6-A7 A pension under Part II payable to a war widow/war
widower—pensioner is compensation reduced if that pension
has been reduced:
(a) by taking into account (under subsection 30(3)) the rate, or amount,
of any payment that he or she is entitled to receive under the law of a State or
of a foreign country; or
(b) by taking into account (under Division 5A of that Part) the rate at
which any compensation is payable to him or her.
SCH6-A8 A pension under Part IV payable to a war widow/war
widower—pensioner is compensation reduced if that pension
has been reduced by taking into account (under Division 4 of that Part) the rate
at which any compensation is payable to him or her.
SCH6-A9 The amount of the reduction in the pension under Part II or
IV is worked out by using the formula:
where:
full pension rate means the amount per annum that would have
been the annual rate of the pension under Part II or IV if it had not been
reduced.
compensation reduced rate means the annual rate of pension
under Part II or IV payable after that pension has been reduced.
Note: For war widow/war
widower—pensioner see subsection 5Q(1).
Maximum basic rate
SCH6-B1 A person’s maximum basic rate depends on the person’s
family situation. Work out which family situation in Table B applies to the
person. The maximum basic rate is the corresponding amount in column
3.
|
Table B |
|||
|---|---|---|---|
|
column 1 |
column 2 |
column 3 |
column 4 |
|
1. |
Not a member of a couple |
9,006.40 |
346.40 |
|
|
A member of an illness separated couple |
|
|
|
|
A member of a respite care couple |
|
|
|
2. |
Partnered |
7,511.40 |
288.90 |
Note 1: For member of a couple and
partnered see section 5E, and for illness separated couple
and respite care couple see subsections 5R(5) and
(6).
Note 2: The maximum basic rates are indexed 6 monthly in
line with CPI increases (see sections 59B to 59E).
Income support supplement recipient who is partnered (partner getting
neither pension nor benefit)
SCH6-B2 An income support supplement recipient who is partnered (partner
getting neither pension nor benefit) is taken not to be a member of a couple for
the purposes of Table B.
Note: For partnered (partner getting neither
pension or benefit) see subsection 5E(5).
Application
SCH6-C1 Points SCH6-C2 to SCH6-C11 apply to a person who is in receipt of
a service pension or an income support supplement. Points SCH6-C13 to SCH6-C15
apply only to a person who is in receipt of a service pension.
Rent assistance
SCH6-C2 Rent assistance is an amount that may be added to the maximum
basic rate to help cover the cost of rent. Subject to points SCH6-C13 to
SCH6-C15 (which apply only to a person who is in receipt of a service pension) a
person who is eligible for rent assistance under point SCH6-C3 can have added to
his or her maximum basic rate the amount applying to that person under Table
C-2.
Eligibility for rent assistance
SCH6-C3 Rent assistance is to be added to a person’s maximum basic
rate if:
(a) the person is not someone (other than someone in approved respite
care) in respect of whom, under the Aged Care Act 1997, residential care
subsidy is paid to an approved provider; and
(b) the person is not an ineligible property owner; and
(c) the person pays, or is liable to pay, rent (other than Government
rent); and
(d) the rent is payable at a rate of more than the rent threshold rate;
and
(e) the person is in Australia; and
(f) either of the following subparagraphs applies:
(i) neither the person nor the person’s partner has an FP
child;
(ii) the person is a member of an illness separated couple or a respite
care couple and is the partner of a person who is receiving family payment in
respect of an FP child.
Note 1: For approved respite care see
subsection 5Q(1).
Note 2: For rent, Government rent
and ineligible property owner see section
5N.
Note 3: For rent threshold rate see point
SCH6-C6.
Note 4: For illness separated couple and
respite care couple see subsections 5R(5) and (6).
No rent assistance if partner getting incentive allowance under the
Social Security Act
SCH6-C4 If a person is a member of a couple and the person’s partner
is living with the person in their home, an additional amount is not to be added
to the person’s maximum basic rate under point SCH6-C3 if an amount by way
of incentive allowance is being added to the maximum basic rate of the
person’s partner.
Note: For incentive allowance see subsection
5Q(1); the provisions of the Social Security Act relating to incentive allowance
were repealed with effect from 12 November 1991 but the allowance continues to
be paid to certain existing recipients under clause 36 of Schedule 1A to that
Act.
Partner with rent increased pension
SCH6-C5 A person has a partner with a rent increased
pension, for the purposes of this Module, if:
(a) the partner is living with the person in their home; and
(b) the partner is receiving a service pension or social security pension;
and
(c) either of the following applies:
(i) the partner is receiving a service pension the rate of which is
increased to take account of rent paid or payable by the partner;
(ii) the partner is receiving a social security pension and is also
receiving family payment at a rate which is more than the minimum family payment
rate and which includes an amount to take account of rent paid or payable by the
partner.
Note 1: Social security pension includes a
rehabilitation allowance.
Note 2: For minimum family payment rate see
subsection 6(1) of the Social Security Act.
Note 3: For the treatment of rent paid by a member of a
couple see points SCH6-C10 and SCH6-C11.
Rent threshold rate
SCH6-C6 A person’s rent threshold rate depends on the person’s
family situation. Work out which family situation in Table C-1 applies to the
person. The rent threshold rate is the corresponding amount in column
3.
|
Table C-1 |
|||
|---|---|---|---|
|
column 1 |
column 2 |
column 3 |
column 4 |
|
1. |
Not a member of a couple |
1,856.40 |
71.40 |
|
|
A member of an illness separated couple |
|
|
|
|
A member of a respite care couple |
|
|
|
|
Partnered—partner without a rent increased pension |
|
|
|
2. |
Partnered—partner with a rent increased pension |
1,510.60 |
58.10 |
Note 1: For member of a couple and
partnered see section 5E.
Note 2: For partner with a rent increased
pension see point C5.
Note 3: The column 3 amounts are indexed 6 monthly in line
with CPI increases (see sections 59B to 59E).
Factors affecting rate of rent assistance
SCH6-C7 The rate of rent assistance depends on:
(a) the annual rent paid or payable by the person; and
(b) whether or not the person has a partner with a rent increased pension;
and
(c) whether or not the person, or the person’s partner, receives a
disability pension.
Rate of rent assistance
SCH6-C8(1) The rate of rent assistance is whichever is the lesser of rate
A and rate B applicable to the person in accordance with Table C-2.
|
Table C-2 |
|||
|---|---|---|---|
|
column 1 |
column 2 |
column 3 |
column 4 |
|
1. |
Not a member of a couple |
3 4 |
1,939.60 |
|
|
A member of an illness separated couple |
|
|
|
|
A member of a respite care couple |
|
|
|
|
Partnered—partner without a rent increased pension |
|
|
|
2. |
Partnered—partner with a rent increased pension |
3 8 |
915.20 |
Note 1: For member of a couple and
partnered see section 5E.
Note 2: For partner with a rent increased
pension see point C5.
Note 3: The column 4 amounts are indexed 6 monthly in line
with CPI increases (see sections 59B to 59E).
(2) In Table C-2:
AR means annual rent as provided by points SCH6-C9 to
SCH6-C11.
RTR means the rent threshold rate applicable under column 3
of Table C-1 in point SCH6-C6.
Annual rent
SCH6-C9 Annual rent is the annual rent paid or payable by the person whose
service pension rate or income support supplement rate is being
calculated.
Rent paid by a member of a couple
SCH6-C10 If a person is a member of a couple and the person’s
partner is living with the person in their home, any rent that the
person’s partner pays or is liable to pay in respect of the home is to be
treated as paid or payable by the person.
Note: For member of a couple see section
5E.
Rent paid by a member of an illness separated or respite care
couple
SCH6-C11 If a person is a member of an illness separated couple or a
respite care couple, any rent that the person’s partner pays or is liable
to pay in respect of the premises occupied by the person is to be treated as
paid or payable by the person.
Note: For illness separated couple and
respite care couple see subsections 5R(5) and
(6).
Application
SCH6-C12 Points SCH6-C13 to SCH6-C15 apply only to a person who is in
receipt of a service pension. If such a person or the partner of such a person
receives disability pension, the amount of rent assistance worked out under
Table C-2 may be reduced under point SCH6-C13.
Note: For disability pension see section
5Q.
Effect of disability pension on rate of rent assistance
SCH6-C13 This is how to work out the effect of a person’s disability
pension on the person’s rate of rent assistance:
Method statement
Step 1. Work out the annual rate of the person’s disability
pension: the result is the person’s disability pension
income.
Note 1: For disability pension see section
5Q.
Note 2: For the treatment of the amount of disability
pension of members of a couple see point SCH6-C14.
Step 2. Work out the person’s rent assistance free area (see
point SCH6-C15 below).
Step 3. Work out whether the person’s disability pension
income exceeds the person’s rent assistance free area.
Step 4. If the person’s disability pension income does not
exceed the person’s rent assistance free area, the person’s rate of
rent assistance worked out under Table C-2 is not affected.
Step 5. If the person’s disability pension income exceeds the
person’s rent assistance free area, take the person’s rent
assistance free area away from the person’s disability pension income: the
result is the person’s disability pension income
excess.
Step 6. Halve the person’s disability pension income excess:
the result is the rent assistance reduction amount.
Step 7. Take the person’s rent assistance reduction amount
away from the rate of rent assistance worked out under Table C-2: the result is
the person’s rate of rent assistance.
Members of couples receiving disability pension
SCH6-C14 If a person is a member of a couple and the person’s
partner also receives disability pension, add the couple’s annual rates of
disability pension and divide by 2 to work out the amount of the disability
pension income of each of them for the purposes of this Module.
Note: For disability pension see section
5Q.
How to calculate a person’s rent free area
SCH6-C15 A person’s rent assistance free area is worked out using
Table C-3. Work out which family situation in Table C-3 applies to the
person.
|
Table C-3 |
|||
|---|---|---|---|
|
column 1 |
column 2 |
column 3 $ |
column 4 |
|
1. |
Not a member of a couple |
2,548 |
98 |
|
2. |
Partnered |
2,236 |
86 |
Note 1: For member of a couple and
partnered see section 5E.
Note 2: Item 2 of Table C-3 applies to members of illness
separated and respite care couples.
Note 3: The free areas are adjusted annually (see section
59GA).
Note: The following examples are based on the amounts and
rates set out in this Module at the commencement of this Schedule (see clause 5
of Part 1 of this Schedule).
Example 1:
Facts: Ross is a single service pensioner without children.
Ross does not receive any disability pension and pays $120 per week
rent.
Result: Item 1 in Table C-2 applies to
Ross.
Rate A for Ross is $3,287.70 calculated as
follows:
Rate B for Ross is $1,939.60.
As the maximum rate of rent assistance is the lesser of
Rates A and B, Ross’s rate of rent assistance is 1,939.60 per year. Ross
will receive $74.60 per fortnight.
Example 2:
Facts: Ted and Pam are members of a pensioner couple without
children. They rent a house for $160 per week. Ted receives 100% disability
pension ($6,255.60 per year). Pam receives the wife’s component of
disability pension ($210.60 per year).
Result: Item 2 in Table C-2 applies to Ted and
Pam.
Rate A for Ted is $2,553.50 calculated as
follows:
Rate B for Ted is $915.20.
As the lesser rate is $915.20, this is the maximum rent
assistance that Ted can receive. However, as both Ted and Pam receive disability
pension, the Rent Assistance Income Test in point SCH6-C13
applies.
Ted’s disability pension income
is:
Item 2 of Table C-3 applies. Ted’s disability pension
income excess is the disability pension income less the rent assistance free
area:
The reduction in rent assistance is:
The rent assistance Ted will receive per year is Rate B
less amount of rent reduction:
Ted will receive $16.03 per fortnight.
The same calculation applies to Pam’s rate of rent
assistance.
Eligibility for pharmaceutical allowance
SCH6-D1 Subject to this Module, an additional amount by way of
pharmaceutical allowance is to be added to a person’s maximum basic
rate.
No pharmaceutical allowance during certain periods of
absence
SCH6-D2(1) If a person:
(a) has told the Department that he or she will be absent from Australia
for a period of 12 months or more; or
(b) has been absent from Australia for a period of 12 months or
more;
the person is not eligible to receive pharmaceutical allowance for the
period:
(c) beginning on the 1 January that first occurs after the person has left
Australia; and
(d) ending on the day before:
(i) the day on which the person returns to Australia; or
(ii) the day on which the person tells the Department of his or her return
to Australia;
whichever is the later.
(2) Subpoint (1) does not apply to a person who:
(a) after telling the Department that he or she will be absent from
Australia for a period of 12 months or more, returns to Australia before the 1
January that first occurs after the person has left Australia; and
(b) has told the Department of his or her return to Australia before that
1 January.
No pharmaceutical allowance if person receiving pharmaceutical allowance
under the Social Security Act.
SCH6-D3 Pharmaceutical allowance is not to be added to a person’s
maximum basic rate if the person is receiving pharmaceutical allowance under the
Social Security Act.
No pharmaceutical allowance before advance payment period
ends
SCH6-D4 Pharmaceutical allowance is not to be added to a person’s
maximum basic rate if:
(a) the person has received an advance pharmaceutical allowance
under:
(i) Division 2 of Part VIIA of this Act; or
(ii) Part 2.23 of the Social Security Act; and
(b) the person’s advance payment period has not ended.
Note: For advance payment period see point
SCH6-D5.
Advance payment period
SCH6-D5(1) A person’s advance payment period:
(a) starts on the day on which the advance pharmaceutical allowance is
paid to the person; and
(b) ends after the number of advance paydays have passed.
(2) In this point:
advance pharmaceutical allowance includes advance
pharmaceutical allowance under the Social Security Act;
amount of advance means the amount of the advance paid to the
person.
number of advance paydays means the number of paydays worked
out using the following formula:
pharmaceutical allowance includes pharmaceutical allowance
under the Social Security Act.
pharmaceutical allowance rate means the yearly amount of
pharmaceutical allowance which would be added to the person’s maximum
basic rate in working out the instalment for the day on which the advance is
paid if pharmaceutical allowance were to be added to the person’s maximum
basic rate on that day.
No pharmaceutical allowance if annual limit reached
SCH6-D6 Pharmaceutical allowance is not to be added to a person’s
maximum basic rate if the addition of the amount would contravene section
118M.
Amount of pharmaceutical allowance
SCH6-D7 The amount of pharmaceutical allowance depends on the
person’s family situation. Work out which family situation in Table D
applies to the person. The amount of pharmaceutical allowance per year is the
corresponding amount in column 3.
|
Table D |
|||
|---|---|---|---|
|
column
1 |
column 2 |
column 3 $ |
column 4 $ |
|
1. |
Not a member of a couple |
140.40 |
5.40 |
|
|
A member of an illness separated couple |
|
|
|
|
A member of a respite care couple |
|
|
|
|
Partnered—partner not eligible for pharmaceutical allowance |
|
|
|
|
A war widow/war widower—pensioner |
|
|
|
2. |
Partnered—partner eligible for pharmaceutical allowance |
70.20 |
2.70 |
Note 1: For member of a couple and
partnered see section 5E.
Note 2: For illness separated couple and
respite care couple see subsections 5R(5) and
(6).
Note 3: For war widow/war
widower—pensioner see subsection 5Q(1).
Note 4: The column 3 amounts are adjusted annually (see
section 59L).
Definition
SCH6-E1 In this Module:
ordinary/adjusted income means:
(a) for the purpose of the calculation of the rate of service
pension—ordinary income; or
(b) for the purpose of the calculation of the rate of income support
supplement—adjusted income.
Note: For ordinary income and adjusted
income see section 5H.
Effect of income on maximum payment rate
SCH6-E2 This is how to work out the effect of a person’s
ordinary/adjusted income on the person’s maximum payment rate:
Method statement
Step 1. Work out the annual rate of the person’s
ordinary/adjusted income.
Note: For the treatment of the ordinary/adjusted income of
members of a couple see point SCH6-E3.
Step 2. Work out the person’s ordinary/adjusted income free
area (see points SCH6-E6 to SCH6-E10 below).
Note: A person’s ordinary/adjusted income free area
is the maximum amount of ordinary/adjusted income the person can have without
affecting the person’s pension rate.
Step 3. Work out whether the person’s ordinary/adjusted income
exceeds the person’s ordinary/adjusted income free area.
Step 4. If the person’s ordinary/adjusted income does not
exceed the person’s ordinary/adjusted income free area, the person’s
ordinary/adjusted income excess is nil.
Step 5. If the person’s ordinary/adjusted income exceeds the
person’s ordinary/adjusted income free area, the person’s
ordinary/adjusted income excess is the person’s ordinary/adjusted income
less the person’s ordinary/adjusted income free area.
Step 6. Use the person’s ordinary/adjusted income excess to
work out the person’s reduction for ordinary/adjusted income using point
SCH6-E11 below.
Note 1: See the Method statements in point SCH6-A1 for the
significance of the person’s reduction for ordinary/adjusted
income.
Note 2: The application of the ordinary/adjusted income
test is affected by provisions about the following:
(a) the general concept of ordinary income (sections 46 and
46A);
(b) business income (sections 46B and
46C);
(c) deemed income from financial assets (sections 46D to
46M);
(d) income from retirement funds and annuities (sections
46Q to 46U);
(e) disposal of income (sections 48-48E).
Ordinary/adjusted incomes of members of couples
SCH6-E3 If a person is a member of a couple, add the annual rates of the
couple’s ordinary/adjusted incomes and divide by 2 to work out the amount
of the person’s ordinary/adjusted income for the purposes of this
Module.
Payment of arrears of periodic compensation payments
SCH6-E4 If:
(a) at the time of an event that gives rise to an entitlement of a person
to compensation, the person is receiving a compensation affected pension;
and
(b) in relation to the entitlement, the person receives a payment (an
arrears payment) of arrears of periodic compensation;
the person is taken to receive on each day in the periodic payments period
an amount calculated by dividing the amount of the arrears payment by the number
of days in the periodic payments period.
Note: For event that gives rise to an entitlement to
compensation, compensation affected pension and
periodic payments period see section 5NB.
Ordinary/adjusted income free area
SCH6-E5 A person’s ordinary/adjusted income free area is the amount
of ordinary/adjusted income the person can have without any deduction being made
from the person’s maximum payment rate.
How to calculate a person’s ordinary/adjusted free
area
SCH6-E6 A person’s ordinary/adjusted income free area is worked out
using Table E-1. Work out which family situation in Table E-1 applies to the
person. The ordinary/adjusted income free area is the corresponding amount in
column 3 plus an additional corresponding amount in column 5 for each dependent
child of the person.
|
Table E-1 |
|||||
|---|---|---|---|---|---|
|
column
1 |
column 2 |
column 3 |
column 4 |
column 5 |
column 6 |
|
1. |
Not member of a couple |
2,548 |
98 |
624 |
24 |
|
2. |
Partnered (partner getting neither pension nor benefit) |
2,236 |
86 |
624 |
24 |
|
3. |
Partnered (partner getting pension) |
2,236 |
86 |
312 |
12 |
Note 1: For member of a couple,
partnered (partner getting neither pension nor benefit),
partnered (partner getting benefit) and partnered (partner
getting pension) see section 5E.
Note 2: For dependent child see section
5F.
Note 3: Items 2 and 3 of Table E-1 apply to members of
illness separated and respite care couples.
Note 4: The basic free area is indexed annually in line with
CPI increases (see sections 59B to 59E).
No additional free area for certain prescribed student
children
SCH6-E7 No additional free area is to be added for a dependent child
who:
(a) has reached the age of 18 years; and
(b) is a prescribed student child within the meaning of the Social
Security Act;
unless the person whose rate is being calculated, or the person’s
partner, receives child disability allowance under the Social Security Act for
the child.
Reduction of additional free area for dependent children
SCH6-E8 The additional free area for a dependent child of a person to whom
items 1 and 2 of Table E-1 apply is reduced by the annual amount of any payment
received by the person or the person’s partner for or in respect of that
particular child. The payments referred to in point SCH6-E10 do not result in a
reduction.
SCH6-E9 The additional free area for a dependent child of a person to whom
item 3 of Table E-1 applies is reduced by 50% of the annual amount of any
payment received by the person or the person’s partner for or in respect
of that particular child. The payments referred to in point SCH6-E10 do not
result in a reduction.
SCH6-E10 No reduction is to be made under point SCH6-E8 or SCH6-E9 for a
payment:
(a) under this Act; or
(b) of maintenance income; or
(c) under the Social Security Act; or
(d) under the AUSTUDY scheme; or
(e) under an Aboriginal study assistance scheme; or
(f) under the Assistance for Isolated Children Scheme.
Note: For Aboriginal study assistance scheme
see section 5F.
Ordinary/adjusted
income free area examples
Example 1:
Facts: Wayne and Mary are members of a couple. They both
receive pensions. They have 2 dependent children—Max and Angela. Angela is
being fostered by Wayne and Mary and they receive $15 per week from the NSW
Government by way of a foster care payment in respect of
Angela.
Result: The annual rate of foster care payment
is:
As point SCH6-E9 applies to Wayne and Mary (they are
covered by item 3 of Table E-1 in point SCH6-E6), the reduction is at the 50%
rate (i.e. $390 per year). The possible additional amounts for Angela ($312) are
therefore reduced to nil.
The amount that Wayne gets for Max is not subject to
reduction and is $312 per year. Mary gets $312 for Max as well.
Wayne’s ordinary/adjusted income free area
is:
Mary’s ordinary income free area is the
same.
Example 2:
If Wayne and Mary received only $10 per week ($520 per
year) foster care payment for Angela, the amount each of them would be allowed
for Angela would be:
Then each would have an ordinary income/adjusted free area
of:
Pension reduction for ordinary/adjusted income in excess of
ordinary/adjusted income free area
SCH6-E11(1) A person’s reduction for ordinary/adjusted income is
one-half of the person’s ordinary/adjusted income excess.
(2) In this point:
ordinary/adjusted income excess, in relation to a person,
means the person’s ordinary/adjusted income less the person’s
ordinary/adjusted income free area.
Effect of assets on maximum payment rate
SCH6-F1 This is how to work out the effect of a person’s assets on
the person’s maximum payment rate:
Method statement
Step 1. Work out the value of the person’s assets.
Note 1: For the treatment of the assets of members of a
couple see point SCH6-F2.
Note 2: For the assets that are to be disregarded in
valuing a person’s assets see section 52.
Note 3: For the valuation of an asset that is subject to a
charge or encumbrance see sections 52C and 52CA.
Step 2. Work out the person’s assets value limit (see point
SCH6-F3 below).
Note: A person’s assets value limit is the maximum
value of assets the person can have without affecting the person’s pension
rate.
Step 3. Work out whether the value of the person’s assets
exceeds the person’s assets value limit.
Step 4. If the value of the person’s assets does not exceed
the person’s assets value limit, the person’s assets excess is
nil.
Step 5. If the value of the person’s assets exceeds the
person’s assets value limit, the person’s assets excess is the value
of the person’s assets less the person’s assets value
limit.
Step 6. Use the person’s assets excess to work out the
person’s reduction for assets using point SCH6-F4 below.
Note 1: See the Method statements in point SCH6-A1 for the
significance of the person’s reduction for assets.
Note 2: The application of the assets test is affected by
provisions about the following:
(a) disposal of assets (sections 52E -
52J);
(b) special residences (sections 52KA -
52X);
(c) financial hardship (sections 52Y and
52Z);
(d) the pensions loans scheme (sections 52ZAAA -
52ZM.
Value of assets of members of couples
SCH6-F2 For the purposes of this Module:
(a) the value of the assets of a member of a couple is taken to be 50% of
the sum of:
(i) the value of the person’s assets; and
(ii) the value of the person’s partner’s assets; and
(b) the value of the assets of a particular kind of a member of a couple
is taken to be 50% of the sum of:
(i) the value of the person’s assets of that kind; and
(ii) the value of the person’s partner’s assets of that
kind.
Assets value limit
SCH6-F3 A person’s assets value limit is worked out using Table F-1.
Work out the person’s family situation and property ownership situation.
The assets value limit is the corresponding amount in column 3.
|
Table F-1 |
|||
|---|---|---|---|
|
column 1 |
column 2 |
column 3 |
|
|
|
|
column 3A |
column 3B |
|
1. |
Not member of a couple |
124,000 |
212,500 |
|
2. |
Partnered |
88,000 |
132,250 |
Note 1: For member of a couple and
partnered see section 5E.
Note 2: For property owner see section
5L.
Note 3: Item 2 applies to members of illness separated and
respite care couples.
Note 4: The assets value limit in column 3B of item 1 is
adjusted annually in line with CPI increases (see section 59H). The other assets
value limits are indexed annually in line with CPI increases (see sections 59B
to 59E).
Pension reduction for assets in excess of assets value
limit
SCH6-F4(1) A person’s reduction for assets is worked out by using
the formula:
where:
assets excess means the value of the person’s assets
less the person’s assets value limit.
(2) In calculating a person’s assets excess under subpoint (1),
disregard any part of the excess that is not a multiple of $250.
Remote area allowance
SCH6-G1 An amount by way of remote area allowance is to be included in a
person’s rate of pension if:
(a) one of the following subparagraphs applies:
(i) the person’s rate of pension apart from this point is greater
than nil; or
(ii) the person’s rate of pension apart from this point is nil
merely because an advance pharmaceutical allowance has been paid to the person
under Division 2 of Part VIIA of this Act or under Part 2.23 of the Social
Security Act; or
(iii) the person’s rate of pension apart from this point is nil
merely because of the operation of Part IIID; and
(b) the person’s usual place of residence is situated in the remote
area; and
(c) the person is physically present in the remote area.
Note: For remote area and physically
present in the remote area see section 5Q.
Rate of remote area allowance
SCH6-G2 The rate of remote area allowance payable to a person is worked
out using Table G. Work out which family situation in the table applies to the
person. The rate of remote area allowance is the corresponding amount in column
3 plus an additional corresponding amount in column 5 for each FP child of the
person.
|
Table G |
|||||
|---|---|---|---|---|---|
|
column
1 |
column 2 |
column 3 |
column 4 |
column 5 |
column 6 |
|
1. |
Not member of a couple |
455.00 |
17.50 |
182.00 |
7.00 |
|
|
A member of an illness separated couple |
|
|
|
|
|
|
A member of a respite care couple |
|
|
|
|
|
|
Partnered—partner not receiving remote area allowance |
|
|
|
|
|
2. |
Partnered (partner receiving remote area allowance) |
390.00 |
15.00 |
182.00 |
7.00 |
Note 1: For FP child see subsection
5F(1).
Note 2: For member of a couple and
partnered see section 5E.
Note 3: For illness separated couple and
respite care couple see subsections 5R(5) and
(5A).
FP children must be physically present in Australia
SCH6-G3 Additional allowance is not payable for an FP child unless the
child is physically present in Australia.
Special rule where partner has an FP child but is not receiving a
pension, benefit or allowance
SCH6-G4 If:
(a) a person who is a member of a couple is qualified for an amount by way
of remote area allowance; and
(b) the person’s partner is not receiving a service pension, an
income support supplement, a social security pension, a social security benefit
or a youth training allowance; and
(c) the person’s partner has an FP child;
the child is taken, for the purposes of this Module, to be an FP child of
the person.
Special rule where partner has an FP child but is not receiving
additional allowance for the FP child
SCH6-G5 If:
(a) a person who is a member of a couple is qualified for an amount by way
of remote area allowance; and
(b) the person’s partner has an FP child; and
(c) the person’s partner is not receiving additional allowance for
the FP child;
the child is taken, for the purposes of this Module, to be an FP child of
the person.
1 Subsection 44-20(2)
Omit “Module D of the Rate Calculator at the end of section 41
of”, substitute “Module E of the Rate Calculator in Schedule 6
to”.
2 Subsection 44-20(3)
Omit “Module E of the Rate Calculator at the end of section 45X
of”, substitute “Module E of the Rate Calculator in Schedule 6
to”.
3 Subsection 44-22(2)
Omit “points 41-D3 and 41-D4 of the Rate Calculator at the end of
section 41 of”, substitute “points SCH6-E5 and SCH6-E6 of the Rate
Calculator in Schedule 6 to”.
4 Subsection 44-22(3)
Omit “points 45X-E4 and 45X-E5 of the Rate Calculator at the end of
section 45X of”, substitute “points SCH6-E5 and SCH6-E6 of the Rate
Calculator in Schedule 6 to”.
1 Subsection 7(2)
Omit “Module D of the Rate Calculator at the end of section 41
of”, substitute “Module E of the Rate Calculator in Schedule 6
to”.
2 Subsection 7(3)
Omit “Module E of the Rate Calculator at the end of section 45X
of”, substitute “Module E of the Rate Calculator in Schedule 6
to”.
(AR-RTR)