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This is a Bill, not an Act. For current law, see the Acts databases.
1998-99
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Youth
Allowance Consolidation Bill 1999
No. ,
1999
(Family and Community
Services)
A Bill for an Act to amend
various Acts in relation to youth allowance and austudy payment, and for related
purposes
ISBN: 0642 389330
Contents
Social Security Act
1991 5
Part 1—Amendments commencing on Royal
Assent 22
Social Security Act
1991 22
Part 2—Amendments commencing on 1 July
1999 105
Social Security Act
1991 105
Social Security Act
1991 106
Part 1—Amendments commencing on Royal
Assent 124
Social Security Act
1991 124
Part 2—Amendments commencing on 1 July
1998 141
Social Security Act
1991 141
Part 3—Amendment commencing on 20 September
1998 149
Social Security Act
1991 149
Part 4—Amendments commencing on 1 January
1999 150
Social Security Act
1991 150
Part 5—Amendment commencing on 1 July
1999 152
Social Security Act
1991 152
Part 6—Amendments commencing on 1 July
2000 153
Social Security Act
1991 153
Part 1—Amendments commencing on Royal
Assent 154
Data-matching Program (Assistance and Tax) Act
1990 154
Income Tax Assessment Act
1936 154
Taxation (Interest on Overpayments and Early Payments) Act
1983 155
Part 2—Amendments commencing on 1 July
1998 156
Farm Household Support Act
1992 156
Taxation Administration Act
1953 156
Part 3—Amendment commencing on 1 July
1999 158
Taxation Administration Act
1953 158
A Bill for an Act to amend various Acts in relation to
youth allowance and austudy payment, and for related
purposes
The Parliament of Australia enacts:
This Act may be cited as the Youth Allowance Consolidation Act
1999.
(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Part 2 of Schedule 2 and Part 5 of Schedule 4 commence, or are taken
to have commenced, on 1 July 1999.
(3) Items 30 to 35, 45, 46, 47, 49, 50, 59 to 73 and 75 to 79 of Schedule
4 and Part 2 of Schedule 5 are taken to have commenced on 1 July 1998.
(4) Item 36 of Schedule 4 is taken to have commenced on 1 July 1998,
immediately after the commencement of section 540A of the Social Security Act
1991, which was inserted in that Act by item 6 of Schedule 1 to the
Social Security Legislation Amendment (Youth Allowance) Act
1998.
(5) Item 37 of Schedule 4 is taken to have commenced on 1 July 1998,
immediately after the commencement of subsection 543A(2) of the Social
Security Act 1991, which was inserted in that Act by item 6 of Schedule 1 to
the Social Security Legislation Amendment (Youth Allowance) Act
1998.
(6) Item 38 of Schedule 4 is taken to have commenced on 1 July 1998,
immediately after the commencement of section 550A of the Social Security Act
1991, which was inserted in that Act by item 6 of Schedule 1 to the
Social Security Legislation Amendment (Youth Allowance) Act
1998.
(7) Items 39 and 40 of Schedule 4 are taken to have commenced on 1 July
1998, immediately after the commencement of section 552A of the Social
Security Act 1991, which was inserted in that Act by item 6 of Schedule 1 to
the Social Security Legislation Amendment (Youth Allowance) Act
1998.
(8) Items 41 to 44 and 58 of Schedule 4 are taken to have commenced on 1
July 1998, immediately after the commencement of Schedule 1 to the Social
Security Legislation Amendment (Youth Allowance Consequential and Related
Measures) Act 1998.
(9) Items 47 and 48 of Schedule 4 are taken to have commenced on 1 July
1998, immediately after the commencement of item 199 of Schedule 9 to the
Social Security Legislation Amendment (Youth Allowance Consequential and
Related Measures) Act 1998.
(10) Items 51 to 57 of Schedule 4 are taken to have commenced on 1 July
1998, immediately after the commencement of Schedule 2 to the Social Security
Legislation Amendment (Youth Allowance) Act 1998.
(11) Item 74 of Schedule 4 is taken to have commenced on 1 July 1998,
immediately after the commencement of Schedule 7 to the Social Security
Legislation Amendment (Youth Allowance Consequential and Related Measures) Act
1998.
(12) Item 80 of Schedule 4 is taken to have commenced on 1 July 1998,
immediately after the commencement of Schedule 2 to the Social Security and
Veterans’ Affairs Legislation Amendment (Budget and Other Measures) Act
1998.
(13) Item 81 of Schedule 4 is taken to have commenced on 1 July 1998,
immediately after the commencement of item 2 of Schedule 10 to the Social
Security Legislation Amendment (Youth Allowance Consequential and Related
Measures) Act 1998.
(14) Part 3 of Schedule 4 is taken to have commenced on 20 September 1998,
immediately after the commencement of Schedule 3 to the Social Security and
Veterans’ Affairs Legislation Amendment (Budget and Other Measures) Act
1998.
(15) Part 4 of Schedule 4 is taken to have commenced on 1 January 1999,
immediately after the commencement of subsections 543A(2A) and (2B) of the
Social Security Act 1991, which were inserted in that Act by item 6 of
Schedule 1 to the Social Security Legislation Amendment (Youth Allowance) Act
1998.
(16) Part 6 of Schedule 4 commences on 1 July 2000.
(17) Part 3 of Schedule 5 commences, or is taken to have commenced, on 1
July 1999, immediately after the commencement of item 351 of Schedule 1 to the
Taxation Laws Amendment Act (No. 3) 1999.
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 of
definitions)
Omit:
|
independent |
5(1), 1067A |
substitute:
|
independent |
5(1), 19AA(2), 1067A |
2 Section 3 (index of
definitions)
Insert the following entries in their appropriate alphabetical positions,
determined on a letter-by-letter basis:
|
activity test |
19AA(2) |
|
approved course |
19AA(2) |
|
approved tertiary course |
19AA(2) |
|
external student |
19AA(2) |
|
permanent home |
19AA(3) to (6) |
|
public transport |
19AA(2) |
|
relevant educational institution |
19AA(2) |
|
required to live away from his or her permanent home |
19AA(7) |
|
Social Security (Fares Allowance) Rules 1998 |
23(1) |
|
study year |
19AA(2) |
|
undertaking qualifying study |
569A, 1061PB |
3 Subsection 4(6A) (note)
Before “Part 3.10”, insert “Part 2.26 (Fares
allowance),”.
4 Subsection 4(6A) (after item 11 in the
table)
Insert:
|
11A |
Part 2.26 |
Fares allowance |
5 After section 19A
Insert:
(1) This section has effect for the purposes of Part 2.26.
(2) Unless the contrary intention appears:
activity test means the test set out in section
541.
approved course has the meaning given by subsection
1061ZAAA(1).
approved tertiary course means a course of education or study
that is determined, under section 5D of the Student Assistance Act 1973,
to be a tertiary course for the purposes of that Act.
external student, in relation to an approved course at a
relevant educational institution, means a student enrolled for the course who is
subject to a requirement, being a requirement that is a compulsory component of
the course, to attend the institution for a period of time.
independent has the same meaning as in Parts 2.11 and 3.5
(see section 1067A).
permanent home has the meaning given by subsections (3) to
(6).
public transport does not include a taxi.
relevant educational institution has the meaning given by
subsection 1061ZAAA(1).
required to live away from his or her permanent home has the
meaning given by subsection (7).
study year means the period in which one complete year of an
approved tertiary course (as defined by this subsection) starts and
finishes.
(3) Subject to subsection (5), if a person is receiving youth allowance,
and is not independent, the person’s permanent home is the
home of the parent whose income components are assessed under Submodule 4 of
Module F of the Youth Allowance Rate Calculator in section 1067G.
(4) Subject to subsection (5), if subsection 1061ZAAA(5) applies to a
person, the person’s permanent home is the home of the
parent whose income components were assessed, immediately before the person
became independent, under Submodule 4 of Module F of the Youth Allowance Rate
Calculator in section 1067G.
(5) If the parent uses more than one home, the person’s
permanent home is:
(a) the home that the parent uses most frequently; or
(b) if the parent uses more than one home for equal periods, the home that
the person nominates.
(6) The permanent home of a person to whom none of the
preceding subsections apply is the person’s usual place of
residence.
(7) A person is taken to be required to live away from his or her
permanent home in order to undertake an approved tertiary course of
education or study if:
(a) the person is not independent; and
(b) the person does not live at the person’s permanent home;
and
(c) the Secretary determines that the person needs to live away from the
person’s permanent home in order to undertake the course.
6 Subsection 23(1) (definition of fares
allowance)
Repeal the definition, substitute:
fares allowance means fares allowance under Part 2.26 or
under the Social Security (Fares Allowance) Rules 1998, as the case may
be.
7 Subsection 23(1)
Insert:
Social Security (Fares Allowance) Rules 1998, in relation to
a time after the commencement of Schedule 1 to the Youth Allowance
Consolidation Act 1999, means those Rules as they continue in force under
clause 126 of Schedule 1A.
8 Part 2.26
Repeal the Part, substitute:
(1) A person is qualified for fares allowance for a journey by the person
if:
(a) during a period (the relevant period) that is the whole
or a part of a study year the person undertakes an approved tertiary course (the
approved course) at an educational institution in Australia (the
relevant educational institution); and
(b) during the relevant period the person is receiving one or more of the
following forms of financial assistance:
(i) youth allowance because the person satisfies the activity test by
undertaking full-time study;
(ii) youth allowance where the only term of the relevant Youth Allowance
Activity Agreement is a term to the effect that the person has to undertake an
approved course of education or study under subsection 541B(5);
(iii) austudy payment;
(iv) pensioner education supplement; and
(c) during the relevant period the person’s permanent home is in
Australia; and
(d) either:
(i) subsection (2) or (3) applies in respect of the person for the study
year; or
(ii) subsection (4) or (5) applies in respect of the person in relation to
the journey; and
(e) either section 1061ZAAB or 1061ZAAC applies in respect of the journey;
and
(f) the journey has been made or, if it has not been made, the Secretary
is satisfied that:
(i) the person intends to make the journey; and
(ii) the person’s means of travel for the journey will be provided
by a commercial operator.
Note: A person is taken to be receiving a form of financial
assistance referred to in paragraph (b) even though the person has traded in, or
traded back, the assistance to obtain a financial supplement.
(2) This subsection applies in respect of the person for the study year
if, during the relevant period, the person:
(a) has a partner, or a dependent child, living at the person’s
permanent home; and
(b) is required to live away from his or her permanent home in order to
undertake the approved course.
(3) This subsection applies in respect of the person for the study year
if, during the relevant period, the person is enrolled as an external student
for the approved course.
(4) This subsection applies in respect of the person in relation to the
journey if:
(a) during the relevant period, the person:
(i) is receiving youth allowance as referred to in subparagraph (1)(b)(i)
or (ii); and
(ii) is required to live away from home within the meaning of Part 3.5
(see section 1067D); and
(b) the person is not independent when the journey is made.
(5) This subsection applies in respect of the person in relation to the
journey if:
(a) during the relevant period, the person:
(i) is receiving youth allowance as referred to in subparagraph (1)(b)(i)
or (ii); and
(ii) is required to live away from home within the meaning of Part 3.5
(see section 1067D); and
(b) during the study year and before the journey was made the person
became independent because of subsection 1067A(4) or (10); and
(c) if the journey had been made in the study year before the person
became independent, subsection (4) would have applied in respect of the person
in relation to the journey.
Note: A person is not qualified for a fares allowance in
respect of a journey made before the commencement of this section (see clause
126 of Schedule 1A).
If the person is enrolled for the approved course as a student other than
an external student, this section applies in respect of a journey only if the
journey is one of the following:
(a) a journey from the person’s permanent home to the relevant
educational institution to start the course;
(b) a journey made, in the study year or before 1 April in the next year,
from the relevant educational institution to the person’s permanent home
after the person has finished or discontinued the course;
(c) a return journey during the study year between the relevant
educational institution and the person’s permanent home where the
person:
(i) has, during the study year and before the making of the journey,
received one or more of the forms of financial assistance referred to in
paragraph 1061ZAAA(1)(b) for a total period of 6 months (whether continuous or
not); and
(ii) is receiving one of those forms of financial assistance when the
journey is made.
If the person is enrolled for the approved course as an external student,
this section applies only in respect of one return journey by the person during
the study year between the person’s permanent home and the relevant
educational institution in order to attend the institution for a period under a
requirement that is a compulsory component of the course.
A person who wants fares allowance for a journey must make a proper claim
for the allowance.
To be a proper claim, a claim must be made in writing and must be in
accordance with a form approved by the Secretary.
(1) To be a proper claim, a claim must be lodged:
(a) at an office of the Department; or
(b) at a place in Australia approved for the purpose by the Secretary;
or
(c) with a person in Australia approved for the purpose by the
Secretary.
(2) If:
(a) a person contacts the Department in relation to his or her claiming
fares allowance; and
(b) the person is, on the day on which he or she contacts the Department,
qualified for fares allowance; and
(c) the person lodges a claim for fares allowance within 14 days after the
day on which he or she contacts the Department; and
(d) the Department has a record of the person contacting the
Department;
the person is taken to have lodged a claim for fares allowance on the day
on which the person contacted the Department.
(3) In this section:
contacts the Department includes contacts the Department by
post or telephone or by the transmission of a message by the use of facsimile,
computer equipment or any other electronic means.
(1) Subject to this section, to be a proper claim, the claim must be
lodged in the study year concerned or before 1 April next following the end of
that year (the final date).
(2) A claim lodged on or after the final date is a proper claim if the
Secretary is satisfied that the claimant took reasonable steps to ensure that it
would be lodged before the final date.
(3) Also, a claim lodged on or after the final date is a proper claim if
the Secretary is satisfied that:
(a) circumstances beyond the claimant’s control prevented the
claimant from taking reasonable steps to lodge the claim before the final date;
and
(b) the claimant lodged the claim as soon as practicable after the
circumstances stopped.
(1) A claimant for fares allowance, or a person on behalf of a claimant,
may withdraw a claim that has not been determined.
(2) A claim that is withdrawn is taken not to have been made.
(3) A withdrawal may be made orally or in writing.
(1) The Secretary is to determine a person’s claim for fares
allowance.
(2) The Secretary is to determine that the claim is to be granted if the
Secretary is satisfied that the person is qualified for the fares allowance to
which the claim relates.
(1) If the Secretary is satisfied that it is practicable for the person to
make the entire journey by public transport, the amount of fares allowance for
the entire journey is worked out using this section.
(2) If the Secretary is satisfied that it is practicable for the person to
make part of the journey by public transport, the amount of fares allowance for
that part of the journey is worked out using this section.
(3) The amount of fares allowance is the cost of making the journey, or
the part of the journey, using a reasonable route and the least expensive form
of public transport that is reasonable.
(4) The cost is to be based on the cost of any concessional fare available
to the person.
(5) The cost of a sleeping berth is to be included only if it is
reasonable for the person to travel by rail and for the person to have the
berth.
(6) In deciding what is practicable or reasonable for the purposes of this
section, the period of time needed for the entire journey, and any illness or
incapacity of the person, must be taken into account.
(7) The amount of fares allowance to be paid is to be worked out using
this section whether or not the person chooses to make the journey, or the part
of the journey, in the way described in this section.
(1) If the Secretary is satisfied that it is not practicable for the
person to make any part of the journey by public transport, the amount of fares
allowance for the entire journey is worked out using this section.
(2) If the Secretary is satisfied that it is not practicable for the
person to make a part of the journey by public transport, the amount of fares
allowance for that part of the journey is worked out using this
section.
(3) If the person makes the journey, or the part of the journey, by taxi,
the fares allowance is 63 cents per kilometre travelled by taxi.
(4) If the person makes the journey, or the part of the journey, by
another vehicle, the fares allowance is worked out in accordance with the
following table:
|
Table of rates of allowance |
|||
|---|---|---|---|
|
Item |
Kind of engine in the vehicle the person
uses |
Capacity of the vehicle’s engine |
Allowance per kilometre |
|
1 |
Rotary |
not more than 800 |
45.7 |
|
2 |
Rotary |
more than 800 but not more than 1,300 |
51.9 |
|
3 |
Rotary |
more than 1,300 |
53.8 |
|
4 |
Not rotary |
not more than 1,600 |
45.7 |
|
5 |
Not rotary |
more than 1,600 but not more than 2,600 |
51.9 |
|
6 |
Not rotary |
more than 2,600 |
53.8 |
(5) If the Secretary is satisfied that:
(a) it is unreasonable for the person to make the journey or the part of
the journey by taxi or another vehicle because of abnormal travel hazards (for
example, bushfire or flood); and
(b) the person makes the journey or the part of the journey by another
form of transport that is reasonable because of the distance travelled and the
cost of the transport;
the amount of fares allowance for the journey or that part of the journey
is the actual cost to the person of making the journey or that part of the
journey.
(6) In deciding what is practicable or reasonable for the purposes of this
section, the period of time needed for the entire journey, and any illness or
incapacity of the person, must be taken into account.
(7) For the purposes of this section, a vehicle that is registered as a
taxi in a State or Territory is to be taken to be a taxi only while it is used
in the State or Territory.
(8) The Minister may make written determinations:
(a) varying the amount referred to in subsection (3); or
(b) amending the table in subsection (4) or omitting that table and
substituting another table.
(9) A determination under subsection (8) is a disallowable
instrument.
(1) Subject to subsection (2), fares allowance for a journey by a person
is to be paid as a reimbursement after the journey is made.
(2) If the journey has not been made, the fares allowance for the journey
is to be paid before the journey is made.
(1) Subject to subsection (4), if the person is or was receiving youth
allowance at the time of the making of the journey, fares allowance is to be
paid to the person to whom instalments of the youth allowance are or were being
paid under section 559D or 559E.
(2) Subject to subsection (4), if the person is or was receiving austudy
payment at the time of the making of the journey, fares allowance is to be paid
to the person to whom instalments of the austudy payment are or were being paid
under section 584D.
(3) Subject to subsection (4), if the person is or was receiving pensioner
education supplement at the time of the making of the journey, fares allowance
is to be paid to the person to whom instalments of the pensioner education
supplement are or were being paid under section 1061PZK.
(4) If the fares allowance is to be paid as referred to in subsection
1061ZAAL(2), it is to be paid, on behalf of the person, to the commercial
operator who provides the person’s means of travel.
(5) This section has effect subject to section 1061ZAAO.
(1) If an amount of fares allowance is to be paid to a person, it is to be
paid in the way described by this section.
(2) Subject to this section, fares allowance is to be paid to the credit
of the bank account into which payments of youth allowance, austudy payment or
pensioner education supplement are or were made.
(3) If a payment referred to in subsection (2) is not paid into an account
referred to in that section, because of a direction given under subsection
559F(4), 584E(4) or 1061PZL(4), then, subject to subsection (5), fares allowance
is to be paid to the credit of a bank account nominated and maintained by the
person.
(4) The person’s account may be maintained by the person alone or
jointly or in common with someone else.
(5) The Secretary may direct that all or part of the amount is to be paid
in a different way than to the credit of the bank account and, if the Secretary
does so, the amount is to be paid in accordance with the direction.
(1) If:
(a) a person (the student) has died; and
(b) fares allowance was payable to the student at the time of his or her
death; and
(c) the allowance was not paid before that time;
a person may apply to receive the allowance.
(2) Without limiting the effect that paragraph (1)(b) has apart from this
subsection, fares allowance is taken for the purposes of that paragraph to have
been payable to the student at the time of his or her death if:
(a) at that time the student was qualified for the fares allowance but had
not made a proper claim for the allowance; and
(b) a person has applied at a later time to receive the allowance;
and
(c) if the student had not died and had made a claim for the allowance at
the later time, the claim would have been a proper claim.
(3) If one or more people apply to receive the allowance, the Secretary
may pay the allowance to the applicant who, in the Secretary’s opinion, is
best entitled to it.
(4) However, an application to receive the allowance is to be
made:
(a) within 6 months after the student died; or
(b) within a longer period allowed by the Secretary in special
circumstances.
(5) If the Secretary pays an amount of fares allowance under subsection
(3), the Commonwealth has no liability to anyone else for the amount.
A payment of fares allowance is absolutely inalienable, whether by way
of, or in consequence of, sale, assignment, charge, execution, bankruptcy or
otherwise.
(1) This section applies if:
(a) a person has an account with a financial institution (whether the
account is maintained by the person alone, or jointly or in common with someone
else); and
(b) a court order in the nature of a garnishee order comes into force for
the account; and
(c) an amount of fares allowance has been paid to the credit of the
account in the 4 weeks immediately before the court order came into
force.
(2) The court order does not apply to the saved amount (if any) in the
account.
(3) The saved amount is the amount worked out using the
following Method statement.
Method statement
Step 1. Work out the amount of fares allowance paid to the credit of
the account in the 4 weeks.
Step 2. Subtract the total amount withdrawn from the account in the
4 weeks.
The saved amount is the amount left.
9 Section 1222A
After “1947 Act,”, insert “or by way of fares allowance
under the Social Security (Fares Allowance) Rules 1998,”.
10 Paragraph 1222A(a)
After “1947 Act”, insert “, the Social Security (Fares
Allowance) Rules 1998”.
11 Subsection 1223(1)
After “social security payment” (wherever occurring), insert
“or fares allowance”.
12 Paragraph 1223(2A)(a)
After “payment”, insert “or by way of fares allowance for
a journey”.
13 Paragraph 1223(2A)(b)
After “instalment”, insert “or journey”.
14 Paragraph 1223(5)(a)
After “1997”, insert “or by way of fares
allowance”.
15 Paragraph 1223(5)(b)
After “calculator”, insert “or other provision for
calculating the amount”.
16 Paragraph 1223(5)(b)
After “payment”, insert “or fares
allowance”.
17 Paragraph 1224(1)(a)
After “payment”, insert “or fares
allowance”.
18 Subparagraph
1224(1)(b)(ii)
Omit “or the 1947 Act”, substitute “, the 1947 Act or the
Social Security (Fares Allowance) Rules 1998”.
19 Paragraph 1224AA(1)(a)
After “payment”, insert “or an amount of fares
allowance”.
20 Paragraph 1224AB(1)(a)
After “this Act”, insert “or the Social Security (Fares
Allowance) Rules 1998”.
21 After subparagraph
1229(1)(b)(i)
Insert:
(ia) owes a debt to the Commonwealth under the Social Security (Fares
Allowance) Rules 1998; or
22 After subparagraph
1229A(1)(b)(i)
Insert:
(ia) a debt to the Commonwealth under the Social Security (Fares
Allowance) Rules 1998; or
23 After paragraph
1231(1)(d)
Insert:
(e) a debt under the Social Security (Fares Allowance) Rules
1998;
24 After paragraph
1232(1)(b)
Insert:
or (c) the Social Security (Fares Allowance) Rules 1998;
25 Subsection 1233(1)
Omit “or under the 1947 Act”, substitute “, under the
1947 Act or under the Social Security (Fares Allowance) Rules
1998”.
26 At the end of subsection
1234(3)
Add:
; or (c) a debt under the Social Security (Fares Allowance) Rules
1998.
27 Paragraph 1234A(1)(a)
Omit “or the Farm Household Support Act 1992”,
substitute “, the Farm Household Support Act 1992 or the Social
Security (Fares Allowance) Rules 1998”.
28 At the end of section
1235
Add:
; or (c) a debt under the Social Security (Fares Allowance) Rules
1998.
29 Paragraph 1304(1)(ca)
Repeal the paragraph, substitute:
(ca) whether a person who has made a claim under the Social Security
(Fares Allowance) Rules 1998 was eligible for fares allowance; or
30 Paragraph 1307(1)(b)
Repeal the paragraph, substitute:
(b) verifying the qualification of persons who have made claims for social
security payments under this Act, or the eligibility of persons who have made
claims for fares allowance under the Social Security (Fares Allowance) Rules
1998, for the payments or allowance.
31 Section 1347
After “eligible”, insert “or qualified, as the case may
be”.
32 Schedule 1A
Insert in its appropriate position (determined on a numerical order
basis):
(1) Part 2.26 applies only in respect of claims for fares allowance made
after the commencement of that Part for journeys made after that
commencement.
(2) The Social Security (Fares Allowance) Rules 1998 made under section
1061ZAAA as in force immediately before the commencement of Part 2.26 continue
in force as if that section were still in force but apply only in respect of
claims made, whether before or after that commencement, for journeys made before
that commencement.
(3) If:
(a) a person has, before the commencement of Part 2.26, made a journey in
a study year; and
(b) the person is eligible, under the Rules referred to in subclause (2),
as they continue in force under that subclause (the continuing
Rules) for fares allowance in respect of the journey; and
(c) the person makes a claim under Part 2.26 for fares allowance in
respect of a journey made, or to be made, after the commencement of that Part in
the same study year;
the claim is not to be determined until the person has made a claim under
the continuing Rules in respect of the journey referred to in paragraph (a) and
the claim has been finally dealt with in accordance with those
Rules.
Part
1—Amendments commencing on
Royal Assent
1 Section 3 (index of
definitions)
Insert the following entries in their appropriate alphabetical positions,
determined on a letter-by-letter basis:
|
accumulated FS debt |
19AB(2) |
|
adjusted accumulated FS debt |
19AB(2) |
|
amount notionally repaid |
19AB(2) |
|
amount outstanding |
19AB(2) |
|
amount repaid |
19AB(2) |
|
approved course of education or study |
19AB(2), 541B(1) |
|
austudy payment general rate |
19AB(3) |
|
AWE |
19AB(2) |
|
category 1 student |
19AB(2) |
|
category 2 student |
19AB(2) |
|
Commissioner |
19AB(2) |
|
Commissioner of Taxation |
19AB(2) |
|
contract period |
19AB(2) |
|
cooling off period |
19AB(2) |
|
discount |
19AB(2) |
|
earlier date |
19AB(2) |
|
eligibility period |
19AB(2) |
|
financial corporation |
19AB(2) |
|
financial supplement contract |
19AB(2) |
|
FS assessment debt |
19AB(2) |
|
FS debt |
19AB(2) |
|
index number |
19AB(2) |
|
intending to undertake a course |
19AB(5) |
|
interest subsidy |
19AB(2) |
|
intermediate prescribed amount |
19AB(2) |
|
later date |
19AB(2) |
|
maximum amount of financial supplement |
19AB(2) |
|
maximum prescribed amount |
19AB(2) |
|
minimum amount of financial supplement |
19AB(2) |
|
minimum prescribed amount |
19AB(2) |
|
office |
19AB(2) |
|
original amount |
19AB(2) |
|
overpayment |
19AB(2) |
|
participating corporation |
19AB(2) |
|
principal sum |
19AB(2) |
|
relevant debt |
19AB(2) |
|
revised amount |
19AB(2) |
|
saved amount |
19AB(2) |
|
short course |
19AB(2) |
|
Social Security Student Financial Supplement Scheme 1998 |
19AB(2) |
|
supplement entitlement notice |
19AB(2) |
|
termination date |
19AB(2) |
|
termination notice |
19AB(2) |
|
tertiary course |
19AB(2) |
|
trade back |
19AB(2) |
|
trade in |
19AB(2) |
|
undertaking a course |
19AB(5) |
|
weekday |
19AB(2) |
|
wrongly paid supplement |
19AB(2) |
|
year |
19AB(2) |
|
year of income |
19AB(2) |
|
youth allowance general rate |
19AB(4) |
2 Before section 19B
Insert:
(1) This section has effect for the purposes of Chapter 2B.
(2) Unless the contrary intention appears:
accumulated FS debt has the meaning given by section
1061ZZEQ.
adjusted accumulated FS debt has the meaning given by section
1061ZZES.
amount notionally repaid has the meaning given by subsection
1061ZZCN(5) or (7), as applicable.
amount outstanding has the meaning given by section 1061ZZCG
or 1061ZZCH, as applicable.
amount repaid has the meaning given by subsection
1061ZZCJ(3), as affected by section 1061ZZCL.
approved course of education or study has the same meaning as
in subsection 541B(5).
Note: This expression is used, with the same meaning, in
sections 569B and 1061PC.
austudy payment general rate has the meaning given by
subsection (3).
AWE has the meaning given by section 1061ZZFF.
category 1 student has the meaning given by section
1061ZZ.
category 2 student has the meaning given by section
1061ZZA.
Commissioner means Commissioner of Taxation.
Commissioner of Taxation includes a Second Commissioner of
Taxation and a Deputy Commissioner of Taxation.
contract period of a financial supplement contract has the
meaning given by subsection 1061ZZAX(7) or 1061ZZAY(3).
cooling off period means a period referred to in section
1061ZZBD.
discount has the meaning given by section 1061ZZCM.
earlier date has the meaning given by paragraph
1061ZZEQ(2)(b).
eligibility period for a person means an eligibility period
under section 1061ZY and includes an eligibility period for the purposes of the
Social Security Student Financial Supplement Scheme 1998.
financial corporation means:
(a) a foreign corporation within the meaning of paragraph 51(xx) of the
Constitution whose sole or principal business activities in Australia are the
borrowing of money and the provision of finance; or
(b) a financial corporation within the meaning of that
paragraph;
and includes a bank.
financial supplement contract means a contract referred to in
subsection 1061ZZAX(2) or 1061ZZAY(1).
FS assessment debt means an amount that is required to be
paid in respect of an accumulated FS debt under section 1061ZZEZ and is included
in an assessment made under Division 7 of Part 2B.3 or under the corresponding
provision of the Social Security Student Financial Supplement Scheme 1998 or of
the Student Assistance Act 1973 as in force at a time before 1 July
1998.
FS debt has the meaning given by section 1061ZZEO.
index number for a quarter means the All Groups Consumer
Price Index number, being the weighted average of the 8 capital cities,
published by the Australian Statistician for the quarter.
intending to undertake a course: see subsection
(5).
interest subsidy, in relation to financial supplement paid to
a person by a participating corporation under a financial supplement contract,
means the part of any subsidy paid by the Commonwealth to the corporation,
without cost to the person, in respect of the supplement under the agreement
entered into with the corporation under section 1061ZZAG, that is in lieu of
interest.
intermediate prescribed amount has the meaning given by
section 1061ZZFD.
later date has the meaning given by paragraph 1061ZZEQ(1)(a)
or (2)(a), as the case requires.
maximum amount of financial supplement has the meaning given
by section 1061ZZAK or 1061ZZAO, as the case requires, as affected by section
1061ZZAQ.
maximum prescribed amount has the meaning given by section
1061ZZFE.
minimum amount of financial supplement has the meaning given
by section 1061ZZAP.
minimum prescribed amount has the meaning given by section
1061ZZFC.
office means a branch office but does not include an agency
or administrative office.
original amount has the meaning given by subsection
1061ZZCW(1).
overpayment, for a person in relation to an eligibility
period, means either of the following:
(a) a debt or overpayment that is to be recovered under Chapter 5 from the
person during the eligibility period;
(b) an amount the person is liable to pay to the Commonwealth under
section 1061ZZDE, 1061ZZDL, 1061ZZDV or 1061ZZEE that the Secretary has decided
is to be recovered during the eligibility period.
participating corporation has the meaning given by subsection
1061ZZAG(3).
principal sum, at a time during the contract period of a
financial supplement contract, means the total of the amounts of financial
supplement paid under the contract before that time by the participating
corporation to the other party to the contract.
relevant debt has the meaning given by section
1061ZZFB.
revised amount has the meaning given by subsection
1061ZZCW(1).
saved amount means an amount referred to in subsection
1061ZZBO(3).
short course means a tertiary course that is designed to be
completed in, at most, 30 weeks (including vacations).
Social Security Student Financial Supplement Scheme 1998
means the scheme of that name established by the Minister under Chapter 2B of
this Act as in force before the commencement of this section.
supplement entitlement notice given to a person means a
notice given to the person under subsection 1061ZZAC(3) or 1061ZZAD(4), or a
notice referred to in subsection 1061ZZAE(3).
termination date of a financial supplement contract means the
date set out in the contract under subsection 1061ZZAX(6) or as mentioned in
subsection 1061ZZAY(2).
termination notice means a notice given under section
1061ZZCQ or under the corresponding provision of the Social Security Student
Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as
in force at a time before 1 July 1998.
tertiary course means a tertiary course that is an approved
course of education or study.
trade back has the meaning given by section
1061ZZAT.
trade in has the meaning given by section 1061ZZAR.
undertaking a course: see subsection (5).
weekday means a day from Monday to Friday (inclusive),
whether or not the day is a public holiday.
wrongly paid supplement has the meaning given by subsections
1061ZZDB(4), 1061ZZDI(4), 1061ZZDS(4) and 1061ZZEC(4).
year means a calendar year.
year of income has the same meaning as in the Income Tax
Assessment Act 1936.
youth allowance general rate has the meaning given by
subsection (4).
(3) A person’s austudy payment general rate is the
rate of austudy payment that would be payable to the person if the rate were
worked out:
(a) using the Austudy Payment Rate Calculator; and
(b) not including any amount as pharmaceutical allowance or remote area
allowance.
(4) A person’s youth allowance general rate is the
rate of youth allowance that would be payable to the person if the rate were
worked out:
(a) using the Youth Allowance Rate Calculator; and
(b) not including any amount as pharmaceutical allowance, rent assistance
or remote area allowance.
(5) The question whether a person is intending to undertake a
course or is undertaking a course is to be determined, so
far as practicable and with any necessary changes, in the same way as the
question whether a person is intending to undertake study or is undertaking
study, as the case may be, is determined under section 541B.
3 Subsection 23(1) (definition of financial
supplement)
Repeal the definition, substitute:
financial supplement means a loan that has been or may be
made under a financial supplement contract as defined by section 19AB.
4 Subsection 23(1) (at the end of the definition
of recipient notification notice)
Add:
; or (s) section 1061ZZBR.
5 Subsection 23(1) (at the end of the definition
of recipient statement notice)
Add:
; or (s) section 1061ZZBY.
6 Chapter 2B
Repeal the Chapter, substitute:
The object of this Chapter is to establish a Student Financial Supplement
Scheme enabling certain tertiary students to obtain a repayable financial
supplement by entering into a contract for that purpose with a financial
corporation that participates in the scheme.
(1) The scheme provides for the reduction of the rate of youth allowance,
austudy payment or pensioner education supplement payable to a person who
obtains financial supplement.
(2) The scheme contains provisions under which the amount of supplement
that the person is eligible to obtain depends on the total rate of youth
allowance, austudy payment or pensioner education supplement that the person
chooses to receive. Those provisions allow the person to choose to repay some or
all of the youth allowance, austudy payment or pensioner education supplement,
or to receive a lower rate of payment of such an allowance, payment or
supplement, in order to receive a higher amount of financial
supplement.
(3) The scheme provides that the person is not liable to pay interest to
the financial corporation in respect of financial supplement received by the
person, but provides for payment by the Commonwealth, without cost to the
person, to the financial corporation of a subsidy that includes an amount in
lieu of interest.
(4) The scheme provides for the amount of the financial supplement that
has to be repaid under a contract to be indexed on 1 June in the year next
following the year in which the contract is entered into, and on 1 June in each
later year. The amount by which the supplement is increased by indexation is
owed by the person to the Commonwealth and not to the financial
corporation.
(5) Under the scheme, the person is entitled, but not required, to make
early repayments in respect of the supplement during the period of the contract.
The scheme provides for a discount for any repayments made before the end of
that period.
(6) The scheme provides that, if financial supplement paid to a person is
not repaid in full before the end of the period of the contract, the obligation
to repay the outstanding amount of the supplement is transferred to the
Commonwealth, and the indexed amount is repayable by the person to the
Commonwealth through the taxation system when the person’s income reaches
a specified level.
A person is eligible to obtain financial supplement for a period (an
eligibility period) that is a year or a part of a year
if:
(a) the person is undertaking, or intending to undertake, a tertiary
course at an educational institution throughout the period; and
(b) the person does not undertake a course of primary or secondary
education at any time during the period; and
(c) the person is a category 1 student or a category 2 student in respect
of the period; and
(d) the amount of financial supplement that the person is eligible to
obtain under Division 6 for the year is not less than the minimum amount of
financial supplement.
(1) A person is a category 1 student in respect of a period
if, throughout the period, one or more of the payments referred to in this
section are payable to the person.
(2) The payment may be youth allowance if:
(a) the person’s youth allowance general rate is more than zero;
and
(b) the youth allowance is payable because the person is undertaking
full-time study.
(3) The payment may be austudy payment if the person’s austudy
payment general rate is more than zero.
(4) The payment may be pensioner education supplement.
(1) A person is a category 2 student in respect of a period
if:
(a) the person is not a category 1 student in respect of the period;
and
(b) throughout the period the person is undertaking full-time study;
and
(c) throughout the period youth allowance at the youth allowance general
rate is not payable to the person, and is not so payable only because of the
operation of:
(i) Module F (the parental income test) of the Youth Allowance Rate
Calculator in section 1067G; or
(ii) Module G (the family actual means test) of that Calculator;
and
(d) where throughout the period youth allowance at the youth allowance
general rate is not payable to the person only because of the operation of
Module F of that Calculator—the person’s combined parental income
for the appropriate tax year under Submodule 4 of that Module is throughout the
period less than the person’s modified parental income free area;
and
(e) where throughout the period youth allowance at the youth allowance
general rate is not payable to the person only because of the operation of
Module G of that Calculator—the actual means of the person’s family
under that Module is throughout the period less than the person’s modified
parental income free area; and
(f) neither section 1061ZZAA nor 1061ZZAB applies to the person.
(2) For the purposes of paragraphs (1)(d) and (e), the person’s
modified parental income free area is the indexed amount that
would be the person’s parental income free area under point 1067G-F22 if
the amount of $23,400 that was specified in paragraph 1067G-F22(a) when that
paragraph was enacted had been $54,949.
(1) This section applies to a person if:
(a) the Secretary has requested the person under section 1061ZZBP
to:
(i) give the Secretary a written statement of the person’s tax file
number; or
(ii) apply to the Commissioner of Taxation for a tax file number and give
the Secretary a written statement of the person’s tax file number after it
has been issued; and
(b) at the end of 28 days after the request is made, the person has
neither:
(i) given the Secretary a written statement of the person’s tax file
number; nor
(ii) given the Secretary an employment declaration and satisfied either
subsection (2) or (3).
(2) The person satisfies this subsection if:
(a) the employment declaration states that the person:
(i) has a tax file number but does not know what it is; and
(ii) has asked the Commissioner of Taxation to inform him or her of the
number; and
(b) the person has given the Secretary a document authorising the
Commissioner to tell the Secretary:
(i) whether the person has a tax file number; and
(ii) if the person has a tax file number—the tax file number;
and
(c) the Commissioner has not told the Secretary that the person has no tax
file number.
(3) The person satisfies this subsection if:
(a) the employment declaration states that the person has applied for a
tax file number; and
(b) the person has given the Secretary a document authorising the
Commissioner of Taxation to tell the Secretary:
(i) if a tax file number is issued to the person—the tax file
number; or
(ii) if the application is refused—that the application has been
refused; or
(iii) if the application is withdrawn—that the application has been
withdrawn; and
(c) the Commissioner has not told the Secretary that the person has not
applied for a tax file number; and
(d) the Commissioner has not told the Secretary that an application by the
person for a tax file number has been refused; and
(e) the application for a tax file number has not been
withdrawn.
(1) Subject to subsection (4), this section applies to a person
if:
(a) the person is requested under section 1061ZZBQ to give the Secretary a
written statement of the tax file number of a parent of the person;
and
(b) at the end of 28 days after the request is made the person has
neither:
(i) given the Secretary a written statement of the parent’s tax file
number; nor
(ii) given the Secretary a declaration by the parent in a form approved by
the Secretary and satisfied either subsection (2) or (3).
(2) The person satisfies this subsection if:
(a) the parent’s declaration states that the parent:
(i) has a tax file number but does not know what it is; and
(ii) has asked the Commissioner of Taxation to inform him or her of his or
her tax file number; and
(b) the person has given the Secretary a document signed by the parent
that authorises the Commissioner to tell the Secretary:
(i) whether the parent has a tax file number; and
(ii) if the parent has a tax file number—the tax file number;
and
(c) the Commissioner has not told the Secretary that the parent has no tax
file number.
(3) The person satisfies this subsection if:
(a) the parent’s declaration states that he or she has applied for a
tax file number; and
(b) the person has given the Secretary a document signed by the parent
that authorises the Commissioner of Taxation to tell the Secretary:
(i) if a tax file number is issued to the parent—the tax file
number; or
(ii) if the application is refused—that the application has been
refused; or
(iii) if the application is withdrawn—that the application has been
withdrawn; and
(c) the Commissioner has not told the Secretary that an application by the
parent for a tax file number has been refused; and
(d) the application for a tax file number has not been
withdrawn.
(4) The Secretary may waive the request for a statement of the
parent’s tax file number if the Secretary is satisfied that:
(a) the person does not know the parent’s tax file number;
and
(b) the person can obtain none of the following from the parent:
(i) the parent’s tax file number;
(ii) a statement of the parent’s tax file number;
(iii) a declaration by the parent under subparagraph (1)(b)(ii).
(1) If a person claims youth allowance, austudy payment or pensioner
education supplement, the Secretary must decide whether the person is eligible
to obtain financial supplement for a period that is the whole or a part of a
year.
(2) Also, if:
(a) the Secretary has made a decision in a year that a person is eligible
to obtain financial supplement for a period that is the whole or a part of that
year; and
(b) the person is likely to:
(i) continue to undertake the person’s tertiary course in the next
year; or
(ii) undertake a new tertiary course in the next year when enrolments in
the course are next accepted;
the Secretary must make a new decision, as early as practicable in the next
year, about whether the person is eligible to obtain financial supplement for a
period that is the whole or a part of that next year.
(3) If the Secretary decides that the person is eligible to obtain
financial supplement for a period, the Secretary must give the person a notice
(a supplement entitlement notice):
(a) stating that the person is eligible to obtain financial supplement for
that period; and
(b) specifying the minimum and maximum amounts of financial supplement
that the person can obtain.
(1) This section applies if:
(a) the Secretary has made a decision under section 1061ZZAC in relation
to a person; and
(b) the Secretary has given the person a supplement entitlement notice
under subsection 1061ZZAC(3) as a result of the decision; and
(c) after the notice was given the decision is reviewed under Chapter 6;
and
(d) as a result of the review, the decision is revoked or
varied.
(2) The revocation or variation revokes the supplement entitlement notice
and the notice ceases to be valid for the purpose of applying for financial
supplement.
(3) The Secretary must give the person a statement telling the
person:
(a) that the decision has been revoked, or has been varied in a manner set
out in the statement, as the case may be; and
(b) that the supplement entitlement notice has been revoked and ceases to
be valid for the purpose of applying for financial supplement.
(4) If the decision is varied and, after the variation, the person is or
becomes eligible to obtain financial supplement for a period, the Secretary must
give the person a notice (also a supplement entitlement
notice):
(a) stating that the person is eligible to obtain financial supplement for
that period; and
(b) specifying the minimum and maximum amounts of financial supplement
that the person can obtain.
(1) This section applies if, immediately before the commencement of this
Chapter, a person held a notice given under Part 3 of the Social Security
Student Financial Supplement Scheme 1998.
(2) If the person had not used the notice before that commencement in an
application for financial supplement under that Scheme, the person is eligible
to obtain financial supplement under this Chapter for the period to which the
notice related.
(3) The notice is taken to be a supplement entitlement
notice given under this Division.
A person may apply for financial supplement only to a participating
corporation.
(1) The Minister may enter into an agreement, on behalf of the
Commonwealth, with a financial corporation for the payment by the corporation
after the commencement of this Chapter, in the year in which this Chapter
commences or a later year, of financial supplement.
(2) An agreement referred to in subsection (1) does not have any effect
unless it:
(a) is expressed to have effect subject to this Chapter; and
(b) provides for the payment by the Commonwealth to the financial
corporation, in respect of each amount of financial supplement paid by the
corporation to a person that has not been repaid, or in respect of which the
rights of the corporation have been transferred to the Commonwealth, of a
subsidy of such amount or amounts, or at such rate or rates, and in respect of
such period or periods, as are stated in the agreement.
(3) If such an agreement is entered into, the corporation is a
participating corporation for the purposes of this Chapter in
respect of the year, or each year, concerned.
(4) The parties to an agreement referred to in subsection (2) (including
such an agreement as previously amended under this subsection) may enter into an
agreement amending or terminating it.
(5) The amendment or termination of an agreement does not affect any
financial supplement contract that was in force immediately before the amendment
or termination took effect.
(6) If an agreement was in force, immediately before the commencement of
this Chapter, between the Commonwealth and a financial corporation under section
1.7 of the Social Security Student Financial Supplement Scheme 1998, the
amendment or termination of the agreement, and the commencement of an agreement
under this section, do not affect any financial supplement contract made under
that Scheme.
(7) An agreement between the Commonwealth and a financial corporation is
not subject to any stamp duty or other tax under a law of a State or
Territory.
(8) An officer may disclose to a participating corporation any information
about a person that is relevant to the exercise or performance by the
corporation of any of its rights or obligations in respect of the person under
this Chapter.
(9) A participating corporation may disclose to an officer any information
about a person that is relevant to the exercise or performance of any rights,
powers or obligations conferred or imposed on an officer or on the Commonwealth
in respect of the person under this Chapter.
A person who is eligible to obtain financial supplement for an
eligibility period may apply to a participating corporation, during that period,
for financial supplement.
A person may only apply for financial supplement by:
(a) completing an application form approved by the Secretary;
and
(b) lodging it, with the person’s supplement entitlement notice, at
an office of a participating corporation.
A person who has applied for financial supplement for the eligibility
period may, at any time, lodge another application form approved by the
Secretary at an office of the participating corporation, telling the corporation
that the person requires for that period:
(a) a specified lesser amount of financial supplement, which must
be:
(i) not less than the total amount of financial supplement already paid to
the person for the period; and
(ii) not less than the minimum amount of financial supplement in respect
of the person for the year that constitutes, or includes, the eligibility
period; or
(b) a specified greater amount of financial supplement, which must be not
more than the maximum amount of financial supplement in respect of the person
for the period.
(1) If the relevant eligibility period of a person who is a category 1
student is a year, the maximum amount of financial supplement for
the period in respect of the person is the lesser of:
(a) $7,000; and
(b) the amount worked out using the following Method statement.
Method statement
Step 1. Work out the total amount of youth allowance general rate,
austudy payment general rate or pensioner education supplement that would be
payable to the person for the eligibility period if the person did not apply for
financial supplement.
Step 2. Work out the total amount of advance payment deductions (if
any) to be made from the person’s rate of youth allowance or austudy
payment, under Part 3.16A, in the eligibility period.
Subtract that total amount from the total amount worked out under Step
1.
Step 3. Work out the total amount of overpayments (if any) for the
eligibility period.
Subtract that total amount from the total amount worked out under Step
2.
Step 4. Work out the total amount of deductions (if any) that are to
be paid to the Commissioner of Taxation, under section 1359, for the eligibility
period.
Note: Section 1359 provides for the deduction and payment
to the Commissioner of Taxation of amounts of tax that a person is required to
pay.
Subtract that total amount from the total amount worked out under Step
3.
Step 5. Work out the total amount (if any) of youth allowance
general rate, austudy payment general rate or pensioner education supplement
that has already been paid for the eligibility period.
Ignore any amount that has already been dealt with under Step 2.
Ignore any amount that is taken never to have been paid because of section
1061ZZAW.
Subtract the total amount from the amount worked out under Step
4.
Step 6. Multiply the amount left by 2.
Step 7. If the result is not a number of whole dollars, round the
result up to the next number of whole dollars.
(2) If the relevant eligibility period of a person who is a category 1
student is less than a year, the maximum amount of financial supplement
for the period in respect of the person is the lesser of:
(a) the amount worked out using the Method statement in subsection (1);
and
(b) the amount worked out using the following Method statement.
Method statement
Step 1. Multiply $7,000 by the number of weekdays in the eligibility
period.
Step 2. Divide the result by the number of weekdays in the year in
which the eligibility period is included.
If the result is not a number of whole dollars, round the result up to the
next number of whole dollars.
(3) This section has effect subject to Subdivision C.
(1) The maximum amount of financial supplement in respect of a person who
is a category 2 student depends on the person’s eligibility
period.
(2) If the person is undertaking, or intends to undertake, a short course,
it is necessary to work out whether the person’s eligibility period is to
be changed under section 1061ZZAM.
(3) If the person is neither undertaking, nor intending to undertake, a
short course, it is necessary to work out whether the person’s eligibility
period is to be changed under section 1061ZZAN.
(1) This section explains whether, and how, to change the eligibility
period for a person who is undertaking, or intending to undertake, a short
course.
(2) Subject to subsection (3), the eligibility period that would have
applied to the person apart from this subsection (the eligibility period
otherwise applicable) must be changed if the person applied for
financial supplement more than 4 weeks after being given a supplement
entitlement notice.
(3) The Secretary may decide that the eligibility period otherwise
applicable is not to be changed if the Secretary is satisfied that:
(a) the person took reasonable steps to apply within 4 weeks after being
given a supplement entitlement notice; and
(b) circumstances beyond the person’s control prevented the person
from applying within the 4 weeks; and
(c) the person applied as soon as practicable after the circumstances
stopped.
(4) If the eligibility period otherwise applicable is to be changed, the
person’s new eligibility period is the period:
(a) starting on the later of:
(i) the day when the person applied; and
(ii) the start of the eligibility period otherwise applicable;
and
(b) ending when the eligibility period otherwise applicable would have
ended.
(1) This section explains whether, and how, to change the eligibility
period for a person who is neither undertaking, nor intending to undertake, a
short course.
(2) Subject to subsection (3), the eligibility period that would have
applied to the person apart from this subsection (the eligibility period
otherwise applicable) must be changed if the person applied for
financial supplement after 31 May in the year in which the period is
included.
(3) The Secretary may decide that the period is not to be changed if the
Secretary is satisfied that:
(a) the person took reasonable steps to apply within 4 weeks after being
given a supplement entitlement notice; and
(b) circumstances beyond the person’s control prevented the person
from applying within the 4 weeks; and
(c) the person applied as soon as practicable after the circumstances
stopped.
(4) If the eligibility period otherwise applicable is to be changed and
the person applied before 1 October in the year, the person’s new
eligibility period is the period:
(a) starting on the later of 1 July and the start of the eligibility
period otherwise applicable; and
(b) ending when the eligibility period otherwise applicable would have
ended.
(5) If the eligibility period otherwise applicable is to be changed and
the person applied on or after 1 October in the year, the person’s new
eligibility period is the period:
(a) starting on the later of:
(i) the day when the person applied; and
(ii) the start of the eligibility period otherwise applicable;
and
(b) ending when the eligibility period otherwise applicable would have
ended.
(1) If:
(a) the person is undertaking, or intending to undertake, a short course;
or
(b) the person is neither undertaking, nor intending to undertake, a short
course and the person’s eligibility period is less than a year;
the maximum amount of financial supplement for the
eligibility period in respect of the person is worked out using the following
Method statement.
Method statement
Step 1. Multiply $2,000 by the number of weekdays in the eligibility
period.
Step 2. Divide the result by the number of weekdays in the year that
includes the eligibility period.
If the result is not a number of whole dollars, round the result up to the
next number of whole dollars.
(2) If the person is neither undertaking, nor intending to undertake, a
short course, and the person’s eligibility period is a year, the
maximum amount of financial supplement for the eligibility period
in respect of the person is $2,000.
(3) This section has effect subject to Subdivision C.
The minimum amount of financial supplement in respect of a
person is $500.
(1) This section applies if a person undertakes, or intends to undertake,
more than one tertiary course in the same period in a year.
(2) The maximum amount of financial supplement for the
period in respect of the person is the maximum amount worked out under this
Division for the period in respect of the person for one of the
courses.
(1) Financial supplement will be paid to a person who is eligible to
obtain financial supplement at a rate determined by the person’s financial
supplement contract.
(2) If youth allowance, austudy payment or pensioner education supplement
is payable to the person, the payment of financial supplement will reduce the
rate at which the youth allowance, austudy payment or pensioner education
supplement is payable.
(3) The reduction of the rate of payment is a trade
in.
(4) The Division explains how trade in works.
(1) The period for which a payment of financial supplement will be made is
an instalment period.
(2) Subject to subsection (3), the rate of youth allowance, austudy
payment or pensioner education supplement that would have been payable to the
person in an instalment period is reduced by an amount equal to one-half of the
amount of financial supplement to be paid during the instalment period under the
financial supplement contract.
(3) If, apart from this subsection, the amount by which the rate would be
reduced is an amount including one-half of a cent, the amount is to be increased
by one-half of a cent.
(4) This section has effect despite any other provision of this
Act.
(1) If a person who is eligible to obtain financial supplement wishes to
obtain financial supplement, the person may repay an amount of youth allowance,
austudy payment or pensioner education supplement.
(2) If a person who is obtaining financial supplement wishes to increase
the amount of financial supplement, the person may repay an amount of youth
allowance, austudy payment or pensioner education supplement.
(3) The repayment of the youth allowance, austudy payment or pensioner
education supplement is a trade back.
(4) This Division explains how trade back works.
(5) This Division also sets out the effect of trade back.
(6) This Division does not affect the operation of Chapter 5.
(1) A person to whom youth allowance, austudy payment or pensioner
education supplement was payable during a payment period may elect to repay to
the Commonwealth some or all of the youth allowance, austudy payment or
pensioner education supplement.
(2) The person must make the election using the form approved under
paragraph 1061ZZAI(a).
(3) A payment period is:
(a) the part of a year starting on 1 January and ending on 31 May;
or
(b) the part of a year starting on 1 July and ending on 30
September.
(1) A person who is not obtaining financial supplement may, in order to
obtain financial supplement, repay to the Commonwealth youth allowance, austudy
payment or pensioner education supplement:
(a) while the person is eligible to obtain financial supplement;
and
(b) during the payment period.
(2) However, if the person does not repay youth allowance, austudy payment
or pensioner education supplement during the payment period, the person may, in
order to obtain financial supplement, repay youth allowance, austudy payment or
pensioner education supplement after that period if the Secretary is satisfied
that:
(a) the person took reasonable steps to repay it during the payment
period; and
(b) circumstances beyond the person’s control prevented the person
from repaying it during the period; and
(c) the person repays it as soon as practicable after the end of the
payment period and during the year that includes the payment period.
(3) A person who is obtaining financial supplement may, in order to
increase the amount of financial supplement, repay to the Commonwealth youth
allowance, austudy payment or pensioner education supplement:
(a) while the person is eligible to obtain financial supplement;
and
(b) during the year in which the youth allowance, austudy payment or
pensioner education supplement was paid.
If an amount is repaid by a person under this Division, the amount is
taken never to have been paid to the person.
(1) If a person applies to a participating corporation under Division 5
for the payment of financial supplement for an eligibility period, the
corporation must, as soon as practicable, accept the application by written
notice to the person.
(2) A contract is made when the corporation accepts the application by
giving the notice referred to in subsection (1). The contract is a
financial supplement contract.
(3) A financial supplement contract is a contract for the making of a loan
by the corporation to the person under this Division without any requirement on
the person to pay interest.
(4) The contract must be for the amount of financial supplement for which
the person from time to time asks, but the amount must not be less than the
minimum amount, or more than the maximum amount, of financial supplement that
the person is, from time to time, eligible to obtain under Division 6.
(5) The contract must also allow, but not compel, the person to make
repayments during the contract period under Division 13 of the amount
outstanding at any time under the contract.
(6) The contract must set out the termination date for the
contract. The date to be set out is the last day of the contract
period.
(7) The contract period is the period beginning on the day
when the contract is made and ending on 31 May in the year in which the last of
the periods referred to in paragraph 1061ZZCH(1)(b) ends.
(1) A contract is also a financial supplement contract if it
is a contract referred to in section 8.2 of the Social Security Student
Financial Supplement Scheme 1998.
(2) The termination date for the contract is the date set
out in the contract.
(3) The contract period is the period beginning on the day
when the contract was made and ending on 31 May in the year in which the last of
the periods referred to in paragraph 1061ZZCH(1)(b) ended or ends.
(1) A participating corporation may rely on advice given by the
Commonwealth to decide:
(a) whether it must pay financial supplement to a person; and
(b) the amount of financial supplement.
(2) An amount paid to a person by a corporation, relying on advice given
by the Commonwealth, is taken to be financial supplement paid under the contract
even though the person may not have been eligible to obtain the
amount.
(3) Subsection (2) does not affect the operation of Part 2B.2.
(1) The validity of a financial supplement contract with a person is not
affected merely because the person was not eligible to obtain financial
supplement when the contract was made, or ceases at a later time to be
eligible.
(2) The contract is not invalid, and is not voidable, under any other law
(whether written or unwritten) in force in a State or Territory.
(3) The contract is not invalid merely because the person is an
undischarged bankrupt when the contract is made.
(4) Bankruptcy does not release a person from his or her obligations under
the contract.
(1) A person who makes a financial supplement contract has a right to
cancel the contract.
(2) Subsection (1) does not affect the operation of section
1061ZZCU.
(3) If, under section 1061ZZBF, the person waives his or her right to
cancel the contract, sections 1061ZZBC to 1061ZZBE do not apply to the
contract.
(1) To exercise the right to cancel the contract, the person must give to
the participating corporation written notice that the person is withdrawing his
or her application for financial supplement
(2) The notice must be lodged at an office of the corporation.
The person’s right may be exercised within 14 days (the
cooling off period) after the day when the contract is made under
section 1061ZZAX.
(1) In the cooling off period, the participating corporation must not make
a payment to the person under the contract.
(2) If the corporation makes a payment to the person under the contract
within the cooling off period, the payment is taken not to be a payment of
financial supplement if the person repays to the corporation an amount equal to
the payment within 7 days after the date of the payment.
(3) If the corporation makes a payment to the person under the contract
after the cooling off period and the person has exercised the right to cancel
the contract, the payment is taken not to be a payment of financial supplement
if the person repays to the corporation an amount equal to the payment within 7
days after the date of the payment.
The person may waive the right to cancel the contract.
To waive the right to cancel the contract, the person must give to the
participating corporation written notice that he or she is waiving the right to
cancel the contract.
To exercise the right of waiver, the person must give the participating
corporation the notice referred to in section 1061ZZBG immediately after the
contract is made under section 1061ZZAX.
(1) A law of a State or Territory about giving credit or other financial
assistance does not apply to a financial supplement contract.
(2) An application for the payment of financial supplement, a financial
supplement contract, or an act or thing done or transaction entered into under
such a contract, is not taxable under any law of a State or Territory.
(1) Financial supplement is to be paid by instalments for periods
determined by the Secretary.
(2) Instalments of financial supplement are to be paid at times determined
by the Secretary.
If the amount of an instalment includes a fraction of a cent, the amount
is to be rounded to the nearest whole cent (0.5 cent being rounded
upwards).
(1) If a person who is a category 1 student is trading in, or trading
back, youth allowance, financial supplement must be paid to the person to whom
instalments of youth allowance are or were being paid under section 559D or
559E.
(2) If a person who is a category 1 student is trading in, or trading
back, austudy payment, financial supplement must be paid to the person to whom
instalments of austudy payment are or were being paid under section
584D.
(3) If a person who is a category 1 student is trading in, or trading
back, pensioner education supplement, financial supplement must be paid to the
person to whom instalments of pensioner education supplement are or were being
paid under section 1061PZK.
(4) If a person who is a category 2 student obtains financial supplement,
it must be paid to the person to whom instalments of youth allowance would be
paid under section 559D or 559E if youth allowance were payable to the
student.
(5) This section does not affect the liability of a person to make
repayments under Part 2B.3.
(1) If an amount of financial supplement is paid to a person, it must be
paid to the credit of a bank account nominated and maintained by the
person.
(2) The bank account may be maintained by the person alone or jointly or
in common with someone else.
Financial supplement is absolutely inalienable, whether by way of, or in
consequence of, sale, assignment, charge, execution, bankruptcy or
otherwise.
(1) This section applies if:
(a) a person has an account with a financial institution (whether the
account is maintained by the person alone, or jointly or in common with someone
else); and
(b) a court order in the nature of a garnishee order comes into force in
respect of the account; and
(c) an amount of financial supplement has been paid (whether on the
person’s own behalf or not) to the credit of the account in the 4 weeks
immediately before the court order came into force.
(2) The court order does not apply to the saved amount (if any) in the
account.
(3) The saved amount is the amount worked out using the
following Method statement.
Method statement
Step 1. Work out the amount of financial supplement paid to the
credit of the account in the 4 weeks.
Step 2. Subtract from that amount the total amount withdrawn from
the account in the 4 weeks.
The amount left is the saved amount.
Request for tax file number
(1) The Secretary may request, but not compel, a person who is a category
2 student and is obtaining financial supplement:
(a) if the person has a tax file number—to give the Secretary a
written statement of the person’s tax file number; or
(b) if the person does not have a tax file number:
(i) to apply to the Commissioner of Taxation for a tax file number;
and
(ii) to give the Secretary a written statement of the person’s tax
file number after the Commissioner has issued it.
Failure to satisfy request
(2) A person is not eligible to obtain financial supplement if, at the end
of 28 days after a request is made:
(a) the person has failed to satisfy the request; and
(b) the Secretary has not exempted the person from having to satisfy the
request.
Request for parent’s tax file number
(1) If:
(a) a person (the recipient) who is a category 2 student is
obtaining financial supplement; and
(b) the income of a parent of the recipient is required to be taken into
account for the purpose of working out the recipient’s eligibility for
financial supplement; and
(c) the parent is in Australia;
the Secretary may request, but not compel, the recipient to give the
Secretary a written statement of the parent’s tax file number.
Failure to satisfy request
(2) A recipient is not eligible to obtain financial supplement if, at the
end of 28 days after the request is made:
(a) the recipient has failed to satisfy the request; and
(b) the Secretary has not exempted the recipient from having to satisfy
the request.
(3) In this section:
parent has the same meaning as in paragraph (b) of the
definition of parent in subsection 5(1).
Note 1: In some cases the request can be satisfied in
relation to a parent by giving the Secretary a declaration by the parent about
the parent’s tax file number and an authority by the parent to the
Commissioner of Taxation to give the Secretary certain information relevant to
the parent’s tax file number (see subsections 1061ZZAB(2) and
(3).
Note 2: The Secretary may waive the requirement in some
cases (see subsection 1061ZZAB(4)).
(1) The Secretary may give a notice under this section to a person who is
a category 2 student if:
(a) financial supplement is paid to the person on the person’s own
behalf; or
(b) financial supplement is paid to someone else, on the person’s
behalf, under section 1061ZZBL.
(2) The notice must require the person to tell the Department
if:
(a) a stated event or change of circumstances happens; or
(b) the person becomes aware that a stated event or change of
circumstances is likely to happen.
An event or change of circumstances is not to be stated in a notice given
under section 1061ZZBR unless the event or change of circumstances might affect
the payment of financial supplement.
Subject to section 1061ZZBU, a notice under section 1061ZZBR:
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must state how the person is to give the information to the
Department; and
(d) must state the period in which the person is to give the information
to the Department; and
(e) must state that the notice is a recipient notification
notice given under this Act.
A notice under section 1061ZZBR is not invalid merely because it does not
comply with paragraph 1061ZZBT(c) or (e).
(1) Subject to this section, the period stated under paragraph 1061ZZBT(d)
must be the period of 14 days after:
(a) the day on which the event or change of circumstances happens;
or
(b) the day on which the person becomes aware that the event or change of
circumstances is likely to happen.
(2) If the Secretary is satisfied that there are special circumstances
related to the person to whom the notice under section 1061ZZBR is to be given,
the period to be stated under paragraph 1061ZZBT(d) is such period as the
Secretary directs in writing, being a period that ends not less than 15 days,
and not more than 28 days, after:
(a) the day on which the event or change of circumstances happens;
or
(b) the day on which the person becomes aware that the event or change of
circumstances is likely to happen.
(3) If the notice specifies an event consisting of the death of a person,
the period to be stated under paragraph 1061ZZBT(d) is a period of 28 days after
the day on which the event happens.
(4) If the notice requires the person to tell the Department of a proposal
by the person to leave Australia, subsection (1) does not apply to that
requirement.
(5) If the notice requires information about receipt of a compensation
payment, the period stated under paragraph 1061ZZBT(d) in relation to the
information must end at least 7 days after the day when the person becomes aware
that he or she has received, or is to receive, a compensation payment.
A person must not, without reasonable excuse, intentionally or recklessly
refuse or fail to comply with a notice under section 1061ZZBR to the extent that
the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows
a court that convicts an individual of an offence to impose a fine instead of,
or in addition to, a term of imprisonment. The maximum fine that a court can
impose on the individual is worked out by multiplying the maximum term of
imprisonment (in months) by 5, and then multiplying the amount of a penalty unit
by the resulting number. The amount of a penalty unit is stated in section 4AA
of that Act.
This Subdivision extends to:
(a) acts, omissions, matters and things outside Australia whether or not
in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
(1) The Secretary may give a notice under this section to a person who is
a category 2 student if:
(a) financial supplement is paid to the person on the person’s own
behalf; or
(b) financial supplement is paid to someone else, on the person’s
behalf, under section 1061ZZBL.
(2) The notice must require the person to give the Department a statement
about a matter that might affect the payment of financial supplement.
Subject to section 1061ZZCA, a notice under section 1061ZZBY:
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must state how the statement is to be given to the Department;
and
(d) must state the period within which the person is to give the statement
to the Department; and
(e) must state that the notice is a recipient statement
notice given under this Act.
A notice under section 1061ZZBY is not invalid merely because it does not
comply with paragraph 1061ZZBZ(c) or (e).
The period stated under paragraph 1061ZZBZ(d) must be at least 14 days
after the day on which the notice is given.
A statement given in response to a notice under section 1061ZZBY must be
in writing and in accordance with a form approved by the Secretary.
A person must not, without reasonable excuse, intentionally or recklessly
refuse or fail to comply with a notice under section 1061ZZBY to the extent that
the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows
a court that convicts an individual of an offence to impose a fine instead of,
or in addition to, a term of imprisonment. The maximum fine that a court can
impose on the individual is worked out by multiplying the maximum term of
imprisonment (in months) by 5, and then multiplying the amount of a penalty unit
by the resulting number. The amount of a penalty unit is stated in section 4AA
of that Act.
This Subdivision extends to:
(a) acts, omissions, matters and things outside Australia whether or not
in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
This Subdivision has effect subject to section 1061ZZEE.
(1) The amount outstanding under a financial supplement
contract at a time (the test time) before 1 June in the year
immediately after the year in which the contract was made is the amount worked
out using the formula:
(2) For the purpose of applying the formula in subsection (1) at the test
time:
amounts repaid means the total of the amounts repaid under
the contract before the test time.
discounts means the total of the discounts to which the
person became entitled before the test time.
principal sum means the principal sum at the test
time.
(1) Subject to subsections 1061ZZCN(6) and (7), the amount
outstanding under a financial supplement contract at a time (the
test time) during a period of 12 months (the test
period) referred to in either of the following paragraphs:
(a) the period of 12 months beginning on 1 June in the year immediately
after the year in which the contract was made; or
(b) any of the following 3 periods of 12 months;
is the amount worked out using the formula:
(2) For the purpose of applying the formula in subsection (1) at the test
time:
amounts repaid means the total of the amounts repaid under
the contract during the test period but before the test time.
discounts means the total of the discounts to which the
person became entitled during the test period but before the test
time.
indexation factor means the number worked out using the
method statement in subsection (3).
previous amount outstanding means the amount outstanding
under the contract immediately before the beginning of the test
period.
(3) The Method statement for the purposes of the definition of
indexation factor in subsection (2) is as follows:
Method statement
Step 1. Work out the total of the index number for the March quarter
in the later reference period and the index numbers for the 3 immediately
preceding quarters.
Step 2. Work out the total of the index number for the March quarter
in the earlier reference period and the index numbers for the 3 immediately
preceding quarters.
Step 3. Divide the total worked out under Step 1 by the total worked
out under Step 2.
Step 4. Round the result to 3 decimal places.
(4) In subsection (3):
earlier reference period means the period of 12 months
immediately before the later reference period.
later reference period means the period of 12 months
immediately before the test period.
(5) If an indexation factor worked out under subsection (3) would end with
a number greater than 4, were it to be worked out to 4 decimal places, the
indexation factor is increased by 0.001.
(6) If, apart from this subsection, an amount worked out under this
section would be an amount of dollars and cents, disregard the amount of the
cents.
(1) The Secretary must give to a person who is a party to a financial
supplement contract with a participating corporation a notice of an amount
outstanding under the contract that exists on:
(a) 1 June in the year following the year in which the contract was made;
or
(b) 1 June in any of the following 3 years.
(2) The notice must state the amount outstanding under the contract at
that date.
(1) Subject to sections 1061ZZDE, 1061ZZDL, 1061ZZDV and 1061ZZEE, a
person who is a party to a financial supplement contract with a participating
corporation is not required during the contract period to make a repayment of
the amount outstanding under the contract.
(2) Non-payment by the person during the contract period of the amount
outstanding is not a default under the contract for the purposes of any law of
the Commonwealth, of a State or of a Territory.
(3) However, the person may, at any time during the contract period, make
a repayment (an amount repaid) to the corporation of the whole or
a part of the amount outstanding at that time.
(4) Subsection (3) has effect subject to section 1061ZZCL.
If a person purports to make a repayment to a participating corporation
under a financial supplement contract by paying an amount under subsection
1061ZZCJ(3) that exceeds the amount that, having regard to the discount to which
the person is entitled, would be needed to pay in full the amount outstanding,
the excess:
(a) is taken not to be a repayment; and
(b) must be repaid by the corporation to the person.
If the person makes a repayment under subsection 1061ZZCJ(3), the amount
repaid is to be disregarded for the purposes of this Division:
(a) to the extent to which it relates to wrongly paid supplement;
or
(b) if it is repaid after the giving of a notice under section 1061ZZCZ,
1061ZZDG, 1061ZZDQ or 1061ZZEA.
(1) If, during the contract period, a person makes a repayment of an
amount that is less than the amount outstanding, the person is entitled, in
respect of the repayment, to a discount of an amount worked out
using the formula:
(2) If, during the contract period, a person makes a repayment of an
amount that is equal to the amount outstanding, the person is entitled, in
respect of the repayment, to a discount of an amount worked out
using the formula:
(3) If, apart from this subsection, an amount worked out under subsection
(1) or (2) would be an amount of dollars and cents, the amount is to be rounded
to the nearest number of whole dollars (rounding 50 cents upwards).
Application
(1) This section applies if a person, at a time (the repayment
time) during the contract period of a financial supplement contract made
by the person with a participating corporation, makes a repayment (the
relevant repayment) in respect of the amount outstanding under the
contract. For the purposes of this section, it is first necessary to work out
whether an indexation amount is taken to have existed in respect of the contract
immediately before the repayment time.
When an indexation amount is taken to have existed
(2) For the purposes of this section, an indexation amount
is taken to have existed in respect of the contract immediately before the
repayment time if:
(a) an amount outstanding under the contract existed immediately before
the repayment time under section 1061ZZCH; and
(b) that amount outstanding exceeds the amount worked out using the
formula:
Meaning of expressions used in formula
(3) For the purpose of applying the formula in subsection (2) immediately
before the repayment time:
amounts repaid means the total of the amounts repaid under
the contract before the repayment time.
amounts previously notionally repaid means the total of the
amounts notionally repaid under the contract before the repayment time because
of the application of this section in respect of previous repayments.
principal sum means the principal sum immediately before the
repayment time.
What constitutes indexation amount
(4) The indexation amount referred to in subsection (2) is the amount of
the excess referred to in paragraph (2)(b).
If no indexation amount
(5) If no indexation amount existed in respect of the contract immediately
before the repayment time, the person is taken to have repaid to the corporation
at the repayment time an amount (an amount notionally repaid)
equal to the discount to which the person is entitled in respect of the relevant
repayment.
If discount does not exceed indexation amount
(6) If:
(a) an indexation amount existed in respect of the contract immediately
before the repayment time; and
(b) the discount to which the person is entitled in respect of the
relevant repayment is equal to or less than the indexation amount;
the amount outstanding under the contract is taken to be reduced by the
discount.
If discount exceeds indexation amount
(7) If:
(a) an indexation amount existed in respect of the contract immediately
before the repayment time; and
(b) the discount to which the person is entitled in respect of the
relevant repayment exceeds the indexation amount;
the following paragraphs have effect:
(c) the amount outstanding under the contract is taken to be reduced by
the indexation amount;
(d) the person is taken to have repaid to the corporation at the repayment
time an amount (an amount notionally repaid) equal to the
excess.
Commonwealth to pay corporation amounts notionally repaid
(8) The Commonwealth must pay to the corporation an amount equal to any
amount notionally repaid.
(1) This section applies if, immediately after a repayment is made under a
financial supplement contract made by a participating corporation, the total of
the amounts repaid and the amounts notionally repaid is equal to or exceeds the
principal sum.
(2) The corporation’s rights under the contract are, by this
subsection, transferred to the Commonwealth immediately after the repayment is
made.
(3) If the total of the amounts repaid and the amounts notionally repaid
exceeds the principal sum, the corporation must pay the excess to the
Commonwealth.
(1) This section applies if, at the end of the contract period of a
financial supplement contract made by a participating corporation, the
corporation’s rights under the contract have not previously been
transferred to the Commonwealth.
(2) The corporation’s rights under the contract are, by this
subsection, transferred to the Commonwealth at the end of the contract
period.
(3) If the principal sum exceeds the total of the amounts repaid and the
amounts notionally repaid, the Commonwealth must pay the excess to the
corporation.
(1) As soon as practicable after the termination date of a financial
supplement contract made by a person with a participating corporation, the
Secretary must arrange for written notice (the termination notice)
to be given to the person if such a notice has not already been given under the
Social Security Student Financial Supplement Scheme 1998 or the Student
Assistance Act 1973 as in force at a time before 1 July 1998.
(2) The termination notice must:
(a) state that, at the end of the contract period, the person no longer
owes a debt to the corporation under the contract and will not receive a
discount for repayments made after that time; and
(b) state that, on a date referred to in the notice, being 1 June
immediately following the termination date, the person incurred or will incur an
FS debt or FS debts to the Commonwealth; and
(c) specify the amount of that debt or the amounts of those debts;
and
(d) state that the person is entitled at any time to make repayments in
respect of that debt or those debts and that so much of that debt or those debts
as is not voluntarily repaid by the person will be recovered through the
taxation system.
If, after a notice has been given to a person under this Division or
under the corresponding provision of the Social Security Student Financial
Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force
at a time before 1 July 1998 (including a notice previously given under this
section or under a provision of that Scheme or Act corresponding to this
section), the Secretary is satisfied that significant information in the notice
was not, or is no longer, correct, the Secretary must arrange for a further
written notice to be given to the person setting out the correct
information.
(1) If a person considers that a notice given to the person under this
Division or under the corresponding provision of the Social Security Student
Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as
in force at a time before 1 July 1998, was not, or is no longer, correct in a
significant respect, the person may, by writing, request the Secretary to
correct the notice.
(2) The person must make the request within 14 days after the date when
the notice was received by the person or within such further period as the
Secretary allows.
(3) A request must set out the information that is considered to be
incorrect and the grounds on which the person considers the information to be
incorrect.
(4) If a request is received by the Secretary, the Secretary must arrange,
as soon as practicable, for it to be considered and for written notice of the
decision on the request to be given to the person.
(1) A notice to a person under this Division or under the corresponding
provision of the Social Security Student Financial Supplement Scheme 1998 or of
the Student Assistance Act 1973 as in force at a time before 1 July 1998,
is intended only to give information to the person and an FS debt of the person
is not affected by a failure to give a notice or by any incorrect statement or
information in a notice given under this Division or that corresponding
provision.
(2) The making by a person of a request for a notice to be corrected does
not affect an FS debt of the person.
A person who is a party to a financial supplement contract with a
participating corporation may, by written notice to the corporation lodged at an
office of the corporation, tell the corporation that he or she does not want
further payments under the contract to be made after a day stated in the
notice.
(1) If a person gives a notice referred to in section 1061ZZCU, the
corporation is discharged from liability to make further payments to the person
under the contract from the end of the day stated in the notice.
(2) However, if the corporation continues to make payments to the person
after that day, any amounts paid after that day or the end of 4 weeks after the
day on which the notice was given to the corporation, whichever is the
later:
(a) are taken not to be payments of financial supplement made under the
contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt due to it by the
person.
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a
participating corporation; and
(b) the decision (the original decision) made in respect of
the person under section 1061ZZAC, or under Part 3 of the Social Security
Student Financial Supplement Scheme 1998, is reviewed under Chapter 6;
and
(c) the person remains eligible to obtain financial supplement for the
year or part of the year to which the contract relates; and
(d) because of the review, the original decision is varied so that the
maximum amount (the original amount) of financial supplement that
the person is eligible to obtain under the contract is reduced to another amount
(the revised amount); and
(e) the revised amount is equal to or less than the amount of financial
supplement that the person has already been paid under the contract.
(2) The Secretary must give written notice to the person and to the
corporation:
(a) stating:
(i) that this section applies to the contract; and
(ii) that the corporation must stop paying financial supplement to the
person; and
(b) specifying:
(i) the revised amount that the person is eligible to obtain;
and
(ii) the amount (if any) of financial supplement paid in excess of the
revised amount.
(1) If the Secretary gives a notice under section 1061ZZCW to the person
and the corporation, then, unless the decision on the review is set aside or
varied after a further review under Chapter 6, the following provisions have
effect.
(2) From the time when the notice is given to the corporation, the
corporation is discharged from liability to make further payments to the person
under the contract.
(3) However, if the corporation continues to make payments to the person
after that time, any amounts paid after the end of 4 weeks after the day on
which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the
contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt due to it by the
person.
This Subdivision has effect subject to sections 1061ZZFS and
1061ZZFT.
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a
participating corporation was given a notice under section 1061ZZCW;
and
(b) the person failed to tell the Secretary, in response to a notice under
section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about
becoming aware of the likely happening of, a stated event or change of
circumstances within the period prescribed for complying with the notice;
and
(c) the person was paid the original amount after the end of that period;
and
(d) the payment of the original amount after the end of that period
resulted from the person’s failure to comply with the notice referred to
in paragraph (b);
the Secretary may give to the person and the corporation a notice stating
that he or she is so satisfied and telling them that this Subdivision applies in
relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a
participating corporation was given a notice under section 14.5 of the Social
Security Student Financial Supplement Scheme 1998; and
(b) the person failed to tell the Secretary, in response to a notice under
section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme,
about the happening of, or about becoming aware of the likely happening of, a
stated event or change of circumstances within the period prescribed for
complying with the notice; and
(c) the person was paid the original amount after the commencement of this
Chapter; and
(d) the payment of the original amount after the commencement of this
Chapter resulted from the person’s failure to comply with the notice
referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating
that he or she is so satisfied and telling them that this Subdivision applies in
relation to them.
If the Secretary gives a notice under section 1061ZZCZ to the person and
the corporation, then, unless the decision to give the notice is set aside or
varied after a review under Chapter 6, the following provisions have
effect.
(1) On the giving of the notice to the corporation, the
corporation’s rights referred to in subsection (2) or (3), as the case may
be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZCZ(1), the rights
transferred are the corporation’s rights under the contract that relate to
payment of financial supplement during the period:
(a) beginning at the end of the period referred to in paragraph
1061ZZCZ(1)(b); and
(b) ending at the end of the period of 4 weeks referred to in subsection
1061ZZCX(3).
(3) If the notice was given under subsection 1061ZZCZ(2), the rights
transferred are the corporation’s rights under the contract that relate to
payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection
1061ZZCX(3).
(4) Financial supplement paid during the period referred to in subsection
(2) or (3), as the case requires, is wrongly paid
supplement.
Repayments of financial supplement made by the person before the notice
was given to the person under subsection 1061ZZCZ(1) or (2) are taken to have
been made:
(a) first, in or towards the repayment of the wrongly paid supplement;
and
(b) then, if those repayments exceed the amount of the wrongly paid
supplement, in or towards the repayment of the rest of the financial supplement
paid to the person under the contract.
The Commonwealth is liable to pay to the corporation the amount of any
wrongly paid supplement that has not been repaid.
(1) If the notice was given to the person under subsection 1061ZZCZ(1),
the person is liable to pay to the Commonwealth an amount equal to the total
of:
(a) the amount that the Commonwealth is liable to pay to the corporation
under section 1061ZZDD; and
(b) the interest subsidy for the period referred to in subsection
1061ZZDB(2).
(2) If the notice was given to the person under subsection 1061ZZCZ(2),
the person is liable to pay to the Commonwealth an amount equal to the total
of:
(a) the amount that the Commonwealth is liable to pay to the corporation
under section 1061ZZDD; and
(b) the interest subsidy for the period referred to in subsection
1061ZZDB(3).
This Subdivision does not affect the operation of Subdivision
A.
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a
participating corporation was given a notice under section 1061ZZCW;
and
(b) false or misleading information was given to the Commonwealth in
relation to the calculation of the original amount; and
(c) the payment of financial supplement in excess of the revised amount
resulted from the false or misleading information;
the Secretary may give to the person and the corporation a notice stating
that he or she is so satisfied and telling them that this Subdivision applies in
relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a
participating corporation was given a notice under section 14.5 of the Social
Security Student Financial Supplement Scheme 1998; and
(b) false or misleading information was given to the Commonwealth in
relation to the calculation of the original amount; and
(c) the payment of financial supplement in excess of the revised amount
resulted from the false or misleading information;
the Secretary may give to the person and the corporation a notice stating
that he or she is so satisfied and telling them that this Subdivision applies in
relation to them.
If the Secretary gives a notice under section 1061ZZDG to the person and
the corporation, then, unless the decision to give the notice is set aside or
varied after a review under Chapter 6, the following provisions have
effect.
(1) On the giving of the notice to the corporation, the
corporation’s rights referred to in subsection (2) or (3), as the case may
be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZDG(1), the rights
transferred are the corporation’s rights under the contract that relate to
payment of financial supplement during the period:
(a) beginning at the time when the person had been paid an amount equal to
the revised amount; and
(b) ending at the end of the period of 4 weeks referred to in subsection
1061ZZCX(3).
(3) If the notice was given under subsection 1061ZZDG(2), the rights
transferred are the corporation’s rights under the contract that relate to
payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection
1061ZZCX(3).
(4) Financial supplement paid during the period referred to in subsection
(2) or (3), as the case requires, is wrongly paid
supplement.
Repayments of financial supplement made by the person before the notice
was given to the person under subsection 1061ZZDG(1) or (2) are taken to have
been made:
(a) first, in or towards the repayment of the wrongly paid supplement;
and
(b) then, if those repayments exceed the amount of the wrongly paid
supplement, in or towards the repayment of the rest of the financial supplement
paid to the person under the contract.
The Commonwealth is liable to pay to the corporation the amount of any
wrongly paid supplement that has not been repaid.
(1) If the notice was given to the person under subsection 1061ZZDG(1),
the person is liable to pay to the Commonwealth an amount equal to the total
of:
(a) the amount that the Commonwealth is liable to pay to the corporation
under section 1061ZZDK; and
(b) the interest subsidy for the period referred to in subsection
1061ZZDI(2).
(2) If the notice was given to the person under subsection 1061ZZDG(2),
the person is liable to pay to the Commonwealth an amount equal to the total
of:
(a) the amount that the Commonwealth is liable to pay to the corporation
under section 1061ZZDK; and
(b) the interest subsidy for the period referred to in subsection
1061ZZDI(3).
This Subdivision does not affect the operation of Subdivision
A.
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a
participating corporation; and
(b) the decision (the original decision) made in respect of
the person under section 1061ZZAC or under Part 3 of the Social Security Student
Financial Supplement Scheme 1998 is reviewed under Chapter 6;
and
(c) because of the review, the original decision is varied so that the
person ceases to be eligible to obtain financial supplement.
(2) The Secretary must give written notice to the person and the
corporation:
(a) stating that the person ceased to be eligible; and
(b) specifying the date when the person ceased to be eligible.
(1) If the Secretary gives a notice under section 1061ZZDN to the person
and the corporation, then, unless the decision on the review is set aside or
varied after a further review under Chapter 6, the following provisions have
effect.
(2) From the time when the notice is given to the corporation, the
corporation is discharged from liability to make further payments to the person
under the contract.
(3) However, if the corporation continues to make payments to the person
after that time, any amounts paid after the end of 4 weeks after the day on
which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the
contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt payable to it by the
person.
This Subdivision has effect subject to sections 1061ZZFS and
1061ZZFT.
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a
participating corporation was given a notice under section 1061ZZDN;
and
(b) the person failed to tell the Secretary, in response to a notice under
section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about
becoming aware of the likely happening of, a stated event or change in
circumstances, within the period prescribed for complying with the notice;
and
(c) the person ceased to be eligible to obtain financial supplement
because of the event or change in circumstances; and
(d) the person was paid financial supplement after the end of the period
referred to in paragraph (b); and
(e) the payment of financial supplement after the end of that period
resulted from the person’s failure to comply with the notice referred to
in paragraph (b);
the Secretary may give to the person and the corporation a notice stating
that he or she is so satisfied and telling them that this Subdivision applies in
relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a
participating corporation was given a notice under section 14.24 of the Social
Security Student Financial Supplement Scheme 1998; and
(b) the person failed to tell the Secretary, in response to a notice under
section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme,
about the happening of, or about becoming aware of the likely happening of, a
stated event or change of circumstances within the period prescribed for
complying with the notice; and
(c) the person was paid financial supplement after the commencement of
this Chapter; and
(d) the payment of financial supplement after the commencement of this
Chapter resulted from the person’s failure to comply with the notice
referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating
that he or she is so satisfied and telling them that this Subdivision applies in
relation to them.
If the Secretary gives a notice under section 1061ZZDQ to the person and
the corporation, then, unless the decision to give the notice is set aside or
varied after a review under Chapter 6, the following provisions have
effect.
(1) On the giving of the notice to the corporation, the
corporation’s rights referred to in subsection (2) or (3), as the case may
be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZDQ(1), the rights
transferred are the corporation’s rights under the contract that relate to
payment of financial supplement during the period:
(a) beginning at the end of the period referred to in paragraph
1061ZZDQ(1)(b); and
(b) ending at the end of the period of 4 weeks referred to in subsection
1061ZZDO(3).
(3) If the notice was given under subsection 1061ZZDQ(2), the rights
transferred are the corporation’s rights under the contract that relate to
payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection
1061ZZDO(3).
(4) Financial supplement paid during the period referred to in subsection
(2) or (3), as the case requires, is wrongly paid
supplement.
Repayments of financial supplement made by the person before the notice
was given to the person under subsection 1061ZZDQ(1) or (2) are taken to have
been made:
(a) first, in or towards the repayment of the wrongly paid supplement;
and
(b) then, if those repayments exceed the amount of the wrongly paid
supplement, in or towards the repayment of the rest of the financial supplement
paid to the person under the contract.
The Commonwealth is liable to pay to the corporation the amount of any
wrongly paid supplement that has not been repaid.
(1) If the notice was given to the person under subsection 1061ZZDQ(1),
the person is liable to pay to the Commonwealth an amount equal to the total
of:
(a) the amount that the Commonwealth is liable to pay to the corporation
under section 1061ZZDU; and
(b) the interest subsidy for the period referred to in subsection
1061ZZDS(2).
(2) If the notice was given to the person under subsection 1061ZZDQ(2),
the person is liable to pay to the Commonwealth an amount equal to the total
of:
(a) the amount that the Commonwealth is liable to pay to the corporation
under section 1061ZZDU; and
(b) the interest subsidy for the period referred to in subsection
1061ZZDS(3).
This Subdivision does not affect the operation of Subdivision
A.
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a
participating corporation; and
(b) the decision (the original decision) made in respect of
the person under section 1061ZZAC or under Part 3 of the Social Security Student
Financial Supplement Scheme 1998 is reviewed under Chapter 6; and
(c) because of the review the original decision is varied so that the
statement in the supplement entitlement notice given to the person that the
person was eligible to obtain financial supplement during an eligibility period
was incorrect.
(2) The Secretary must give written notice to the person and the
corporation stating that the person had never been eligible to obtain financial
supplement.
(1) If the Secretary gives a notice under section 1061ZZDX to the person
and the corporation, then, unless the decision on the review is set aside or
varied after a further review under Chapter 6, the following provisions have
effect.
(2) From the time when the notice is given to the corporation, the
corporation is discharged from liability to make further payments to the person
under the contract.
(3) However, if the corporation continues to make payments to the person
after that time, any amounts paid after the end of 4 weeks after the day on
which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the
contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt payable to it by the
person.
This Subdivision has effect subject to sections 1061ZZFS and
1061ZZFT.
If the Secretary is satisfied that the incorrectness of a statement
referred to in section 1061ZZDX that was given to a person who is a party to a
financial supplement contract with a participating corporation resulted from
false or misleading information given to the Commonwealth about the person, the
Secretary may give notice to the person and the corporation stating that he or
she is so satisfied and that this Subdivision applies in relation to
them.
If the Secretary gives a notice under section 1061ZZEA to the person and
the corporation, then, unless the decision to give the notice is set aside or
varied after a review under Chapter 6, the following provisions have
effect.
(1) On the giving of the notice to the corporation, the
corporation’s rights referred to in subsection (2) or (3), as the case may
be, are transferred to the Commonwealth by this subsection.
(2) If the statement was in a supplement entitlement notice given under
subsection 1061ZZAC(3) or 1061ZZAD(4), the rights transferred are the
corporation’s rights under the contract that relate to payment of
financial supplement during the period:
(a) beginning at the start of the contract period; and
(b) ending at the end of the period of 4 weeks referred to in subsection
1061ZZDY(3).
(3) If the statement was in a supplement entitlement notice referred to in
subsection 1061ZZAE(3), the rights transferred are the corporation’s
rights under the contract that relate to payment of financial supplement during
the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection
1061ZZDY(3).
(4) Financial supplement paid during the period referred to in subsection
(2) or (3), as the case requires, is wrongly paid
supplement.
The Commonwealth is liable to pay to the corporation an amount worked
out, as at the end of the period of 4 weeks referred to in subsection
1061ZZDY(3), using the formula:
(1) No amount is taken to be outstanding under the contract after the
notice is given.
(2) However, the person is liable to pay to the Commonwealth an amount
worked out, as at the end of the period of 4 weeks referred to in subsection
1061ZZDY(3), using the formula:
In sections 1061ZZED and 1061ZZEE:
amounts notionally repaid means the total of the amounts
notionally repaid before the notice was given.
amounts repaid means the total of the amounts repaid under
the contract before the notice was given.
interest subsidy means the interest subsidy in relation to
financial supplement paid under the contract.
principal sum means the principal sum at the time when the
notice was given.
This Subdivision does not affect the operation of Subdivision
A.
If the Secretary becomes aware that a person who is a party to a
financial supplement contract with a participating corporation has died, the
Secretary may give written notice to the corporation stating that this Division
applies in respect of the contract.
If the Secretary gives a notice under section 1061ZZEH to the
corporation, the following provisions have effect.
(1) From the time when the notice is given to the corporation, the
corporation is discharged from liability to make further payments under the
contract.
(2) However, if the corporation continues to make payments under the
contract after that time, any amounts paid after the end of 4 weeks after the
day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the
contract; and
(b) are repayable from the person’s estate to the corporation;
and
(c) may be recovered by the corporation as a debt payable to it from the
person’s estate.
(1) The corporation’s rights referred to in subsection (2) are
transferred to the Commonwealth, by this subsection, at the earlier
of:
(a) the time when the corporation stopped making payments under the
contract; or
(b) the end of 4 weeks after the time when the notice was given.
(2) The rights transferred are the corporation’s rights under the
contract that relate to payment of financial supplement during the
period:
(a) beginning at the start of the contract period; and
(b) ending at the end of the period of 4 weeks referred to in paragraph
(1)(b).
(1) The Commonwealth is liable to pay to the corporation an amount worked
out, as at the earlier of:
(a) the time when the corporation stopped making payments under the
contract; or
(b) the end of the period of 4 weeks referred to in paragraph
1061ZZEK(1)(b);
using the formula:
(2) In this section:
amounts notionally repaid means the total of the amounts
notionally repaid before the notice was given.
amounts repaid means the total of the amounts repaid under
the contract before the notice was given.
principal sum means the principal sum at the time when the
notice was given.
The person’s liability to the Commonwealth under the contract as a
result of the transfer referred to in section 1061ZZEK is discharged by this
section.
This Part provides for the recovery through the taxation system of a
person’s debt in respect of financial supplement at the end of 4 years
beginning on 1 June in the year immediately after the year in which the relevant
financial supplement contract was made.
(1) If, at the termination date of a financial supplement contract made by
a person with a participating corporation, there was or is an amount outstanding
under the contract, the person owes an FS debt to the
Commonwealth.
(2) The FS debt is taken to have been incurred, or is incurred, as the
case may be, on 1 June immediately after the termination date.
(1) The FS debt is worked out using the formula:
(2) In subsection (1):
amount outstanding means the amount outstanding under the
contract at the termination date.
indexation factor means the factor worked out under section
1061ZZET.
(1) If:
(a) a person had or has an FS debt or FS debts on 1 June in a year (the
later date); and
(b) the debt was not or is not, or the debts did not or do not include, an
FS debt that existed on the previous 1 June;
the person is taken to have incurred, or incurs, as the case may be, an
accumulated FS debt to the Commonwealth on the later
date.
(2) If:
(a) a person had or has an FS debt or FS debts on 1 June in a year (the
later date); and
(b) the debt was or is, or the debts included or include, an FS debt that
existed on the previous 1 June (the earlier date);
the person is taken to have incurred, or incurs, as the case may be, an
accumulated FS debt to the Commonwealth on the later
date.
(1) A person’s accumulated FS debt referred to in
subsection 1061ZZEQ(1) is an amount equal to the FS debt or the total of the FS
debts referred to in that subsection.
(2) A person’s accumulated FS debt referred to in
subsection 1061ZZEQ(2) is an amount worked out using the formula:
(3) In subsection (2):
adjusted accumulated FS debt means the person’s
adjusted accumulated FS debt on the earlier date.
indexation factor means the factor worked out under section
1061ZZET.
later FS debts means any FS debt, or the total of any FS
debts, of the person that did not exist on the earlier date.
(1) A person’s adjusted accumulated FS debt on the
earlier date is the amount worked out using the formula:
(2) In this section:
accumulated FS debt means the person’s accumulated FS
debt on the earlier date as worked out under this Division as it previously
applied in respect of that date.
FSA debts means the total of:
(a) any FS assessment debt or FS assessment debts of the person, assessed
on or after the earlier date and before the later date, excluding any FS
assessment debt assessed because of a return lodged before the earlier date;
and
(b) any FS assessment debt or FS assessment debts of the person, assessed
on or after the later date because of a return lodged before the later
date.
increases in FSA debts means any amount, or the total of any
amounts, by which any FS assessment debt is increased by an amendment of the
relevant assessment (whether because of an increase in the person’s
taxable income or otherwise) where the amendment was made on or after the
earlier date and before the later date.
reductions in FSA debts means any amount, or the total of any
amounts, by which any FS assessment debt is reduced by an amendment of the
relevant assessment (whether as a result of a reduction in the person’s
taxable income or otherwise) where the amendment was made on or after the
earlier date and before the later date.
repayments means any amount, or the total of any amounts,
repaid, except in discharge of an FS assessment debt, on or after the earlier
date and before the later date in reduction of the accumulated FS debt on the
earlier date as worked out under this Division as it previously applied in
respect of that date.
(3) For the purposes of subsection (2), an assessment or an amendment of
an assessment is taken to have been made on the date stated in the notice of
assessment or notice of amended assessment, as the case may be, to be the date
of that notice.
(1) The indexation factor for the purpose of calculating a
person’s FS debt or accumulated FS debt at 1 June in a year (the
relevant year), is worked out using the following Method
statement.
Method statement
Step 1. Work out the total of the index number for the March quarter
in the relevant year and the index numbers for the 3 immediately preceding
quarters.
Step 2. Work out the total of the index number for the March quarter
immediately before the relevant year and the index numbers for the 3 immediately
preceding quarters.
Step 3. Divide the total worked out using Step 1 by the total worked
out using Step 2.
Step 4. Round the result to 3 decimal places.
(2) If an indexation factor worked out using the Method statement would
end with a number greater than 4 were it to be worked out to 4 decimal places,
the indexation factor is increased by 0.001.
(3) If, apart from this subsection, the amount of an FS debt or
accumulated FS debt worked out under this section would be an amount of dollars
and cents, disregard the amount of the cents.
(1) An accumulated FS debt that a person is taken to have incurred or
incurs on 1 June in a year (the relevant date) discharges, or
discharges the unpaid part of:
(a) an accumulated FS debt that the person incurred on the previous 1
June; and
(b) an FS debt that the person incurred on the relevant date.
(2) The accumulated FS debt also discharges the person’s liability
to pay the amount outstanding immediately before the relevant date.
(3) However, in applying sections 1061ZZEP to 1061ZZET, subsection (1) of
this section is disregarded.
If a person who has made a financial supplement contract with a
participating corporation has an FS debt immediately after the termination date
of the contract, the Secretary must, if such a notice has not already been given
under the corresponding provision of the Social Security Student Financial
Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force
at a time before 1 July 1998, give to the Commissioner of Taxation, as soon as
practicable after that date, a notice stating as many of the following matters
as the Secretary knows:
(a) the person’s name;
(b) the person’s identifying number;
(c) the person’s last-known address;
(d) the person’s tax file number;
(e) the amount of the FS debt or the amounts of the FS debts that the
person incurred on 1 June immediately following the termination date;
(f) any other information about the person that is reasonably required by
the Commissioner to administer this Part.
If the Secretary or an officer of the Department is convinced that
significant information in a notice referred to in section 1061ZZEV was not, or
is no longer, correct, the Secretary must give to the Commissioner of Taxation a
further notice setting out the correct information.
The Secretary must, if asked by the Commissioner of Taxation to do so,
give a written certificate to the Commissioner setting out a matter mentioned by
the Commissioner that was, or was required to be, set out in a notice under
section 1061ZZEV or 1061ZZEW.
(1) If a person has a debt to the Commonwealth under this Part, he or she
may at any time make a payment to reduce the debt.
(2) A payment under subsection (1) must be made to the Commissioner of
Taxation.
(1) Subject to subsection (2), a person is liable, in respect of each year
of income, to make payments, in accordance with this Part, to reduce the
person’s relevant debt until that debt is repaid.
(2) The person is liable to make a payment in respect of a year of income
only if:
(a) the person’s taxable income for the year of income is greater
than the minimum prescribed amount for the year of income; and
(b) the person had an accumulated FS debt on 1 June immediately before an
assessment of the person’s income is made for the year of
income.
The person is liable to pay, in respect of a year of income, an amount
equal to so much of the relevant debt as does not exceed:
(a) if the person’s taxable income for the year of income is not
greater than the intermediate prescribed amount for the year of income—2%
of the taxable income; or
(b) if the person’s taxable income for the year of income is greater
than the intermediate prescribed amount for the year of income but is not
greater than the maximum prescribed amount for the year of income—3% of
the taxable income; or
(c) if the person’s taxable income for the year of income is greater
than the maximum prescribed amount for the year of income—4% of the
taxable income.
(1) The person’s relevant debt is:
(a) if an amount or amounts have been paid to reduce the person’s
accumulated FS debt referred to in paragraph 1061ZZEZ(2)(b) or an amount or
amounts have been assessed under Division 7 or under the corresponding provision
of the Social Security Student Financial Supplement Scheme 1998 or of the
Student Assistance Act 1973 as in force at a time before 1 July 1998, to
be payable to reduce it—the amount remaining after deducting from that
accumulated FS debt the amount or the sum of the amounts so paid or assessed to
be payable; or
(b) otherwise—the person’s accumulated FS debt referred to in
that paragraph.
(2) An amount assessed under Division 7, or under the corresponding
provision of the Social Security Student Financial Supplement Scheme 1998 or of
the Student Assistance Act 1973 as in force at a time before 1 July 1998,
to be payable to reduce a person’s accumulated FS debt is, if the amount
has been increased or reduced by an amendment of the relevant assessment, taken
to be the increased or reduced amount.
(1) For the year of income that ended on 30 June 1998, the minimum
prescribed amount is $29,307.
(2) For a later year of income, the minimum prescribed
amount is the number of whole dollars in the amount worked out using the
formula:
(1) For the year of income that ended on 30 June 1998, the
intermediate prescribed amount is $33,305.
(2) For a later year of income, the intermediate prescribed
amount is the number of whole dollars in the amount worked out using the
formula:
(1) For the year of income that ended on 30 June 1998, the maximum
prescribed amount is $46,629.
(2) For a later year of income, the maximum prescribed
amount is the number of whole dollars in the amount worked out using the
formula:
(1) In sections 1061ZZFC, 1061ZZFD and 1061ZZFE:
AWE means:
(a) the average weekly earnings for all employees for the reference period
in the December quarter immediately before the year of income, as published by
the Australian Statistician; and
(b) the average weekly earnings for all employees for the reference period
in each of the 4 quarters immediately before that December quarter, as published
by the Australian Statistician.
(2) The reference period in a particular quarter in a year
is the period described by the Australian Statistician as the pay period ending
on or before the third Friday of the middle month of that quarter.
(1) Part IV, and Division 1 of Part VI, of the Income Tax Assessment
Act 1936, and Part IVC of the Taxation Administration Act 1953,
apply, so far as they can be applied and subject to this Part, to a
person’s FS assessment debt as if it were income tax assessed to be
payable by a taxpayer by an assessment made under Part IV of the Income Tax
Assessment Act 1936.
(2) Sections 222A to 222F, 222 and 226G to 226ZB of the Income Tax
Assessment Act 1936 apply as if a person’s FS assessment debt were
income tax payable by the person for the year of income for which the assessment
of that debt was made.
(1) The Commissioner of Taxation may make an assessment of:
(a) the amount of a person’s accumulated FS debt at 1 June
immediately before the assessment is made; and
(b) the amount required to be paid to reduce that debt under Division
5.
(2) To make an assessment, the Commissioner may use any information in his
or her possession, whether or not it came from a return.
If:
(a) the Commissioner of Taxation is required to serve on a person a notice
of assessment in respect of the person’s income of a year of income under
section 174 of the Income Tax Assessment Act 1936; and
(b) an assessment (the relevant assessment) has been made in
respect of the person of the amounts referred to in section 1061ZZFH but notice
of the relevant assessment has not been served on the person;
notice of the relevant assessment may be served by setting out the amounts
concerned in the notice referred to in paragraph (a).
(1) The Commissioner of Taxation may, on written application by a person
who has an accumulated FS debt, delay the making of an assessment under section
1061ZZFH.
(2) An assessment may be delayed if the Commissioner considers
that:
(a) were the assessment to be made, payment of the assessed amount would
cause serious hardship to the person; or
(b) there are other special reasons that make it fair and reasonable to
delay the assessment.
(3) The Commissioner may delay the assessment for a period that he or she
considers appropriate.
(1) The Commissioner of Taxation may, on written application by a person
who has an accumulated FS debt, amend an assessment made under section 1061ZZFH
so that no amount is payable under the assessment.
(2) The Commissioner may amend the assessment if he or she considers
that:
(a) payment of the assessed amount has caused or would cause serious
hardship to the person; or
(b) there are other special reasons that make it fair and reasonable to
make the amendment.
(1) If an application referred to in section 1061ZZFJ or 1061ZZFK is made,
the Commissioner of Taxation must, as soon as practicable:
(a) consider it; and
(b) give to the applicant written notice of his or her decision on the
application.
(2) A notice of the decision must:
(a) include a statement that, if the applicant is dissatisfied with the
decision of the Commissioner on the application, an application may, subject to
the Administrative Appeals Tribunal Act 1975, be made to the
Administrative Appeals Tribunal for review of the decision; and
(b) except if subsection 28(4) of that Act applies, also include a
statement to the effect that the applicant may ask for a statement under section
28 of that Act.
(3) A failure to comply with subsection (2) does not affect the validity
of the notice or of the decision to which the notice relates.
An applicant under section 1061ZZFJ or 1061ZZFK may apply to the
Administrative Appeals Tribunal for review of:
(a) a decision of the Commissioner of Taxation on the application referred
to in section 1061ZZFJ; or
(b) a decision by the Commissioner refusing to amend an assessment after
receiving the application referred to in section 1061ZZFK.
(1) An amount paid, or other benefit given, to a person under this Chapter
is not subject to taxation under a law of the Commonwealth unless a provision of
such a law expressly provides to the contrary.
(2) However, subsection (1) does not affect the liability to taxation of a
participating corporation for a subsidy or other amount paid to the corporation
under this Chapter.
An amount paid by a person to reduce the person’s debt to the
Commonwealth under this Part must be applied in accordance with the
person’s direction or, if there is no direction or the direction does not
adequately deal with the matter:
(a) first, to discharge or reduce the person’s FS assessment debts;
and
(b) then, to discharge or reduce the person’s accumulated FS
debt.
If a person dies owing a debt owing to the Commonwealth under this Part,
other than an FS assessment debt, the debt is discharged by force of this
section.
This Division applies if, after a person makes a financial supplement
contract with a participating corporation, whether before or after the
termination date:
(a) the person becomes bankrupt; or
(b) the person enters into a deed of assignment, a deed of arrangement or
a composition under Part X of the Bankruptcy Act 1966.
(1) A debt arising under or out of the contract is not a provable debt in
the bankruptcy or for the purposes of the deed of assignment, deed of
arrangement or composition.
(2) A right of the Commonwealth or of the corporation to bring an action
or other proceeding against the person in respect of the debt is not affected by
the bankruptcy, deed of assignment, deed of arrangement or
composition.
(3) The trustee of the estate of the bankrupt person or the trustee of the
deed of assignment, deed of arrangement or composition is not entitled to
recover under the Bankruptcy Act 1966 a payment made by the person to the
Commonwealth or to the corporation in respect of the debt.
(4) In this section:
debt arising under or out of the contract:
(a) includes, but is not limited to:
(i) an amount outstanding under the contract; and
(ii) an amount that the person is liable to pay under section 1061ZZDE,
1061ZZDL, 1061ZZDV or 1061ZZEE; and
(iii) an accumulated FS debt that discharges, or discharges the unpaid
part of, an FS debt; but
(b) does not include:
(i) a debt constituted by an obligation to repay the amount of a payment
that, because of paragraph 1061ZZCV(2)(a), 1061ZZCX(3)(a), 1061ZZDO(3)(a) or
1061ZZDY(3)(a), is not a payment of financial supplement; or
(ii) an FS assessment debt that is required to be paid to reduce an
accumulated FS debt.
(1) Subject to subsection (2), if a decision of the Secretary under this
Chapter is set aside after a review under Chapter 6, this Chapter has effect,
and is taken to have always had effect, as if the decision had not been
made.
(2) If the decision is set aside after a review under Chapter 6 and
another decision is substituted for the original decision, this Chapter has
effect, and is taken to have always had effect, as if the substituted decision
had been the original decision.
If a decision of the Secretary under this Chapter is varied after a
review under Chapter 6, this Chapter has effect, and is taken to have always had
effect, as if the decision as varied had been the original decision.
If any rights of a participating corporation to receive a payment from a
person under this Chapter are transferred to the Commonwealth, the Secretary
must, as soon as practicable, arrange for a written notice to be given to the
person:
(a) stating that the rights have been transferred; and
(b) identifying any future payments that, because of the transfer, are
required to be made to the Commonwealth.
A transfer to the Commonwealth under this Chapter of any of the
corporation’s rights under a financial supplement contract, or any other
act or thing done or transaction entered into under this Chapter, is not subject
to taxation under a law of a State or Territory.
7 After section 1361
Insert:
(1) A certificate given by the Secretary stating:
(a) that a specified amount was the principal sum at a particular time
under a specified financial supplement contract; or
(b) that a specified amount was the sum of the amounts repaid, or the sum
of the amounts notionally repaid, before a particular time or during a
particular period in respect of a specified financial supplement contract;
or
(c) that a specified amount was the amount, or the total of the amounts,
of subsidy paid by the Commonwealth to a specified participating corporation in
respect of a specified financial supplement contract in lieu of interest on the
principal sum or in lieu of interest on the principal sum in relation to a
specified period; or
(d) that a specified amount was, at a particular time, the amount
outstanding under a specified financial supplement contract; or
(e) that a specified amount was, at a particular time, the indexation
amount in relation to a specified financial supplement contract; or
(f) that the rights, or specified rights, of a specified participating
corporation in respect of a specified person under a specified financial
supplement contract were transferred by the corporation to the Commonwealth on a
specified date; or
(g) that, on a specified day, a person had an FS debt or FS debts to the
Commonwealth of a specified amount or specified amounts; or
(h) that, on a specified day, a notice, to a specified effect, under a
provision of Chapter 2B was given to a specified person by the
Secretary;
is prima facie evidence of the matters stated in the certificate.
(2) In any proceeding, a document purporting to be a certificate by the
Secretary under this section is taken, unless the contrary is established, to be
such a certificate and to have been duly given.
Part
2—Amendments commencing on 1
July 1999
8 Section 3 (index of
definitions)
Omit:
|
weekday |
19AB(2) |
9 Subsection 19AB(2) (definition of
weekday)
Repeal the definition.
10 Subsection 1061ZZAK(2) (steps 1 and 2 of the
method statement)
Omit “weekdays”, substitute “days”.
11 Subsection 1061ZZAO(2) (steps 1 and 2 of the
method statement)
Omit “weekdays”, substitute “days”.
1 Section 3 (index of
definitions)
Insert the following entries in their appropriate alphabetical positions,
determined on a letter-by-letter basis:
|
actual means |
10B(2) |
|
AIC scheme |
10B(2) |
|
appropriate tax year |
10B(2) |
|
base tax year |
10B(2) |
|
business |
10B(2) |
|
claimant/recipient |
10B(2) |
|
combined parental income |
10B(2) |
|
designated parent |
10B(3) |
|
family actual means free area |
10B(2) |
|
income assistance |
10B(4) |
|
independent employment |
10B(2) |
|
insolvent under administration |
10B(2) |
|
interest |
10B(2) |
|
liquid assets |
10B(2) |
|
net passive business loss |
10B(2) |
|
passive business |
10B(2) |
|
relevant person |
10B(2) |
|
savings |
10B(5) and (6) |
|
secondary course |
10B(2) |
|
secondary student |
10B(2) |
|
trust |
10B(2) |
|
unlisted public company |
10B(2) |
2 After section 10A
Insert:
(1) This section has effect for the purposes of Module G of the Youth
Allowance Rate Calculator at the end of section 1067G.
(2) Unless the contrary intention appears:
actual means has the meaning given by point
1067G-G8.
AIC scheme means the Commonwealth scheme known as the
Assistance for Isolated Children Scheme.
appropriate tax year has the meaning given by point
1067G-G4.
base tax year has the same meaning as in point
1067G-F5.
business has the meaning given by point 1067G-F19A.
claimant/recipient has the meaning given by point
1067G-G7.
combined parental income has the meaning given by point
1067G-F10.
designated parent has the meaning given by subsection
(3).
family actual means free area has the meaning given by point
1067G-G14.
income assistance has the meaning given by subsection
(4).
independent employment means employment engaged in by a
person that is not provided by:
(a) a family member of the person; or
(b) a proprietary company, an unlisted public company, a partnership, or a
trust, in which the person, or a family member of the person, has an
interest.
insolvent under administration has the same meaning as in the
Corporations Law.
interest in a trust:
(a) includes:
(i) the interest of a settlor in property subject to the trust;
and
(ii) a power of appointment under the trust; and
(iii) a power to rescind or vary a provision of, or to rescind or vary the
effect of the exercise of a power under, the trust; and
(iv) an interest that is conditional, contingent or deferred;
but
(b) does not include:
(i) the interest of a person as an agent or creditor of the trustee;
or
(ii) the interest of a person as a person employed by the
trustee.
liquid assets means assets that, under subsection 14A(1), are
liquid assets for Parts 2.11, 2.11A, 2.12 and 2.14.
net passive business loss, for the appropriate tax year,
means a loss that, under subpoint 1067G-F11(4), is a net passive business loss
for that year.
passive business means a business that, under point
1067G-F19A, is a passive business for the purposes of subpoint
1067G-F11(4).
relevant person has the meaning given by point
1067G-G7.
savings has the meaning given by subsection (5).
secondary course means a course that is determined, under
section 5D of the Student Assistance Act 1973, to be a secondary course
for the purposes of that Act.
secondary student means a person who is receiving youth
allowance and is undertaking full-time study in respect of a secondary
course.
trust does not include:
(a) a trust in relation to an account held in a bank only for the benefit
of a dependent child of the trustee; or
(b) a trust under which property of the estate of a deceased person, or of
a person who is an insolvent under administration, is distributed; or
(c) a trust in relation to a superannuation fund within the meaning of the
Superannuation Industry (Supervision) Act 1993 that is not an excluded
fund within the meaning of that Act; or
(d) a public unit trust in which units are held by 50 or more persons who
are not family members of the trustee, or are offered for subscription or
purchase by the public; or
(e) the trust constituted by a trust account that the trustee is required
by a law to establish; or
(f) a charitable trust; or
(g) a trust created by operation of law.
unlisted public company means a public company that is not
listed on a stock exchange.
(3) A parent of a person (the person concerned) is a
designated parent for a youth allowance payment period
if:
(a) within 10 years before 1 January in the calendar year in which the
youth allowance payment period ends, the parent first entered Australia under a
permanent visa or entry permit within the meaning of the Migration Act
1958 for the grant of which a criterion or requirement was that the parent
demonstrate skills in business; or
(b) the parent has an interest (the value of which is $2,500 or more) in
assets outside Australia and its external territories; or
(c) in the base tax year, the parent had an interest in:
(i) a proprietary company; or
(ii) an unlisted public company; or
(iii) a trust; or
(d) in the base tax year, the parent derived income of $2,500 or more from
a source outside Australia and its external territories (except Norfolk Island)
that does not consist only of income from a pension or similar payment, and was
either:
(i) ordinary income; or
(ii) an amount included in the person concerned’s combined parental
income; or
(e) the parent derived income from salary or wages in the base tax year
and has claimed, or will claim, a tax deduction for a business loss (whether for
that year or a previous year) that does not consist only of a net passive
business loss; or
(f) in the base tax year, the parent was a member of a partnership;
or
(g) in the base tax year, the parent:
(i) worked for gain or reward otherwise than under a contract of
employment or apprenticeship, whether or not the parent employed one or more
other persons; but
(ii) was not, in so working, wholly or mainly engaged in a primary
production business owned by him or her.
(4) A payment received by a person is income assistance if
it is:
(a) a youth allowance received by a person who is undertaking full-time
study; or
(b) an austudy payment; or
(c) a payment under this Act (except a family tax payment), or the
Veterans’ Entitlements Act 1986, that is exempt from income tax
under Division 1AA of Part 3 of the Income Tax Assessment Act 1936 or
Subdivision 52-A, 52-B or 52-C of the Income Tax Assessment Act 1997;
or
(d) a payment under:
(i) a Student Financial Supplement Scheme; or
(ii) the scheme known as the ABSTUDY scheme; or
(iii) the AIC scheme; or
(e) an AUSTUDY allowance; or
(f) a payment under a scholarship; or
(g) a payment by a State or Territory, or a State or Territory authority,
to assist the primary, secondary or tertiary education of a student.
(5) The savings of a person include the following
amounts:
(a) the person’s share in any profit retained by a company of which
the person is a director, or shareholder, who has a substantial influence over
whether company profit is distributed to:
(i) the person or a family member of the person; or
(ii) another company, or a partnership or trust, in which the person or a
family member of the person has an interest;
(b) the person’s share in any profit retained by a partnership of
which the person is a member who has a substantial influence over whether
partnership profit is distributed to:
(i) the person or a family member of the person; or
(ii) another partnership, or a company or trust, in which the person or a
family member of the person has an interest;
(c) any undistributed profit of a trust that is attributable to the
person;
(d) the total undistributed profit of a trust where:
(i) the person is a trustee or beneficiary of the trust; and
(ii) no part of that undistributed profit is attributable to the person;
and
(iii) the person controls the trust.
(6) For the purposes of subparagraph (5)(d)(iii), a person
controls a trust if the person has:
(a) a power of appointment under the trust; or
(b) a power to rescind or vary a provision of, or to rescind or vary the
effect of the exercise of a power under, the trust; or
(c) a substantial influence over whether trust profit is distributed
to:
(i) the person or a family member of the person; or
(ii) another trust, or a company or partnership, in which the person or a
family member of the person has an interest.
3 Section 1067G (Module G of the Youth Allowance
Rate Calculator)
Repeal the Module, substitute:
How to work out effect of actual means of a person’s family on
maximum payment rate
1067G-G1 This is how to work out the effect (if any) of the actual means
of a person’s family on the person’s maximum payment rate in respect
of a particular youth allowance payment period.
Method statement
Step 1. Work out whether the family actual means test applies to the
person using Submodule 2.
Step 2. If the family actual means test applies to the person,
identify the appropriate tax year in relation to the person using Submodule
3.
Step 3. Work out the actual means of the person’s family for
that year using Submodule 4.
Step 4. Work out the person’s family actual means free area
using Submodule 5.
Step 5. Work out the person’s reduction for family actual
means for that year using Submodule 6.
General provision
1067G-G2 Subject to point 1067G-G3, the family actual means test applies
to a person who:
(a) claims or receives youth allowance; and
(b) is not independent; and
(c) has a parent who is a designated parent.
Exceptions
1067G-G3(1) The family actual means test does not apply to a
person:
(a) while a family member of the person is receiving exceptional
circumstances relief payment; or
(b) for so much of the calendar year in which the relief payment is
received as follows the cessation of the relief payment.
(2) In subpoint (1):
exceptional circumstances relief payment means:
(a) exceptional circumstances relief payment under the Farm Household
Support Act 1992; or
(b) drought relief payment under that Act as in force immediately before
the commencement of the Farm Household Support Amendment (Restart and
Exceptional Circumstances) Act 1997.
Meaning of appropriate tax year
1067G-G4 The appropriate tax year in relation to a person
for a youth allowance payment period is:
(a) the base tax year for the period; or
(b) if a determination of a tax year is made by the Secretary under point
1067G-G6 in relation to the person in respect of the period—the tax year
specified in the determination.
Person who may request Secretary to determine appropriate tax
year
1067G-G5(1) This point applies to a person who claims or receives youth
allowance if the following conditions are satisfied.
(2) The first condition is that, except for this point, youth
allowance:
(a) would not be payable to the person because the rate of youth allowance
is calculated to be nil; or
(b) would be calculated to be payable at a reduced rate.
(3) The second condition is that the person gives to the Secretary, in
writing:
(a) evidence, or an estimate, that the amount of the actual means of the
person’s family for the tax year (the following tax year)
immediately after the base tax year is substantially less than it was in the
base tax year:
(i) because of a circumstance or event that is beyond the control of the
person and the person’s family members; or
(ii) because the person or a family member of the person is undertaking
full-time study in the following tax year; or
(iii) because a designated parent of the person has ceased to be a parent
of the kind referred to in paragraph 10B(3)(c), (d), (e), (f) or (g);
and
(b) if subparagraph (a)(i) applies—evidence of the circumstance or
event concerned;
and, if the person gives an estimate as referred to in paragraph (a), the
person agrees, in writing, to the person’s rate of youth allowance being
recalculated if the actual means of the person’s family for the following
tax year exceed the amount of the estimate.
(4) For the purposes of subparagraph (3)(a)(i), an expected decrease in
the profitability of a business is not ordinarily to be taken to be a
circumstance or event that is beyond the control of the person and the
person’s family members.
(5) The third condition is that the person’s family actual means are
unlikely to increase beyond the amount evidenced, or estimated, under paragraph
(3)(a) for the 2 years beginning on the later of the following days:
(a) 1
January in the following tax year; or
(b) the day on which the amount of the family’s actual means was
reduced.
Making of request
1067G-G6(1) A person to whom point 1067G-G5 applies may request the
Secretary, in accordance with a form approved by the Secretary, to make a
determination under this point in relation to a youth allowance payment
period.
(2) If:
(a) the person makes such a request; and
(b) the youth allowance payment period to which the request relates ends
on or after the later of:
(i) the day on which the request is made; or
(ii) 1 January in a year;
the Secretary must determine, subject to subpoint (3), that the appropriate
tax year for the person in relation to the youth allowance payment period is the
tax year immediately after the base tax year.
(3) If the request is based on an estimate,
the Secretary may make a determination only if he or she is satisfied that the
estimate is current and reasonable.
How to work out the actual means of person’s family
1067G-G7(1) To work out the actual means of the family of a person (the
claimant/recipient) for the appropriate tax year, first calculate,
in accordance with this Submodule, the actual means of the claimant/recipient
and the actual means of each family member of the claimant/recipient and then
apply the formula in subpoint 1067G-G13(1) using the results of those
calculations.
(2) A reference in any of the following provisions of this Submodule to a
relevant person is a reference to the claimant/recipient or a
family member of the claimant/recipient.
Meaning of actual means
1067G-G8(1) Subject to point 1067G-G9, the actual means of
a relevant person for the appropriate tax year is an amount equal to the total
spending and savings of the person in that tax year.
(2) An amount of spending or savings is taken to have been spent or saved
in the appropriate tax year if the Secretary considers that the amount should be
so taken.
Amounts not included in actual means of a relevant person
1067G-G9(1) This point applies in working out the actual means, for the
appropriate tax year, of a relevant person.
(2) The following amounts spent or saved in the appropriate tax year by
the person are not included in the actual means of the person:
(a) spending or savings from any income assistance received by the person
in that tax year;
(b) spending for the maintenance of:
(i) a child of the person if the person does not have legal responsibility
for the day-to-day care, welfare and development of the child; or
(ii) a former partner of the person;
(c) spending in boarding away from home a family member who qualified for
the boarding allowance under the AIC scheme—to the extent of the lesser
of:
(i) the amount of the spending; and
(ii) $5,274, less the amount of the boarding allowance;
(d) spending in boarding away from home a family member who:
(i) is a secondary student; and
(ii) is not independent; and
(iii) is required to live away from home;
to the extent of the lesser of:
(iv) the amount of the spending; and
(v) $5,274, less the amount of the person’s after-tax income
concession (if any) for the student under point 1067G-G11;
(e) if the person has a disability—spending to acquire, or modify,
property to assist the person to cope with the disability;
(f) spending or savings from any arm’s length loan received by the
person in that tax year;
(g) spending to repay a loan received by the person in that tax year that
is not an arm’s length loan, or to pay interest on the loan;
(h) spending or savings from the proceeds of any liquidation of assets of
the person that were held at the beginning of that year;
(i) spending or savings from the amount of any windfall gain that is not a
gift to the person;
(j) spending or savings, of not more than $6,000, from income that is
exempt income under item 1.4 of the table in section 51-5 of the Income Tax
Assessment Act 1997;
(k) spending or savings from any part of a lump sum compensation payment
made to the person on which tax is not payable under the Income Tax
Assessment Act 1936 or the Income Tax Assessment Act 1997.
(3) Also, the actual means of the person do not include the following
amounts:
(a) subject to subpoint (4), an amount equal to the amount of the income
or resources of a business of the person that is deductible under the Income
Tax Assessment Act 1936, or the Income Tax Assessment Act 1997
because the amount was, or will be, necessarily incurred in carrying on the
business;
(b) an amount equal to the amount of any reduction in liquid assets of the
person held at the beginning of the appropriate tax year and not accounted for
by spending of a kind referred to in subpoint (2).
(4) The reference in paragraph (3)(a) to the amount of the income or
resources of a business of the person that is deductible does not
include:
(a) the amount of any losses from the business that are carried forward
from a tax year earlier than the appropriate tax year; or
(b) the amount of a contribution to a superannuation fund, in relation to
the business, that exceeds:
(i) for an employee—the minimum contribution for the employee under
the Superannuation Guarantee (Administration) Act 1992; or
(ii) for a person engaged otherwise than as an employee—the lesser
of $3,000 and the total amount of the contributions for the person, and each
family member of the person, for the appropriate tax year.
Amounts not included in actual means of a family member of
claimant/recipient
1067G-G10 In working out the actual means, for the appropriate tax year,
of a family member of the claimant/recipient, being a family member of a kind
referred to in subparagraph 23(15)(b)(i), (ii) or (iii), spending or savings
from any income of the family member from independent employment (except so much
of such spending or savings as exceeds $6,000) is not included.
After-tax income concession for secondary student
1067G-G11(1) This point explains how a relevant person’s after-tax
income concession for a secondary student referred to in subparagraph
1067G-G9(2)(d)(v) is worked out.
(2) The purpose of the concession is to compensate the family of a
secondary student who is required to live away from home for the additional
expenditure incurred in maintaining the student while he or she is required to
live away from home. The compensation is effected by reducing the actual means
of the family by an amount calculated by reference to the additional amount of
youth allowance that is payable because the student is required to live away
from home.
(3) Accordingly, a relevant person’s after-tax income
concession is the amount worked out using the formula:
(4) In this section:
after-tax income means the amount calculated using the
formula:
income tax means the amount of income tax, before any
rebates, and without regard to any increase occurring in the tax free threshold
because of section 20C or 20D of the Income Tax Rates Act 1986, that
would be notionally payable by a person for the appropriate tax year if the
person’s taxable income were the amount obtained by dividing the parental
income by the number of parents whose income is included in the
claimant/recipient’s combined parental income.
medicare levy means the amount of medicare levy that would be
notionally payable by a married person for the appropriate tax year
if:
(a) the person’s taxable income were the amount obtained by dividing
the parental income by the number of parents whose income is included in the
claimant/recipient’s combined parental income; and
(b) the person were a parent of the student, and of all the family members
of the student who were children referred to in paragraph 23(15)(b);
and
(c) the student and each of those children had no separate net income,
within the meaning of section 159J of the Income Tax Assessment Act 1936,
in the appropriate tax year.
notional after-tax income means the amount calculated using
the formula:
notional income tax means the amount of income tax, before
any rebates, and without regard to any increase occurring in the tax free
threshold because of section 20C or 20D of the Income Tax Rates Act 1986,
that would be notionally payable by a person for the appropriate tax year if the
person’s taxable income were the amount obtained by dividing the notional
parental income by the number of parents whose income is included in the
claimant/recipient’s combined parental income.
notional medicare levy means the amount of medicare levy that
would be notionally payable by a married person for the appropriate tax year
if:
(a) the person’s taxable income were the amount obtained by dividing
the notional parental income by the number of parents whose income is included
in the claimant/recipient’s combined parental income; and
(b) the person were a parent of the student, and of all the family members
of the student who were children referred to in paragraph 23(15)(b);
and
(c) the student and each of those children had no separate net income,
within the meaning of section 159J of the Income Tax Assessment Act 1936,
in the appropriate tax year.
notional parental income means the minimum amount of the
combined parental income in relation to the student for the appropriate tax year
that would cause the student’s youth allowance rate to be reduced to nil
if the student’s maximum basic rate were the amount specified in column 3
of item 1 of Table BA in point 1067G-B2 as at 1 January of that year.
number of students means the number of persons who:
(a) are included in the group of persons constituted by the student and
his or her family members; and
(b) are secondary students; and
(c) receive youth allowance; and
(d) are not independent; and
(e) are required to live away from home.
parental income means the minimum amount of the combined
parental income in relation to the student for the appropriate tax year that
would cause the student’s youth allowance rate to be reduced to nil if the
student’s maximum basic rate were the amount specified in column 3 of item
3 of Table BA in point 1067G-B2 as at 1 January of that year.
Powers of Secretary to determine fair market value
1067G-G12(1) If the Secretary considers that an amount of spending that
would otherwise be included in the actual means of a relevant person does not
represent the fair market value of the matter or thing to which the spending
related:
(a) the Secretary must determine the fair market value of the matter or
thing; and
(b) an amount equal to the value so determined is taken to be the amount
of the spending.
(2) If the Secretary considers that spending by a person other than a
family member of a relevant person is spending for the benefit of the relevant
person:
(a) the Secretary must determine the fair market value of the matter or
thing to which the spending related; and
(b) an amount equal to the value so determined is taken to be an amount of
spending by the relevant person.
Actual means of family of claimant/recipient
1067G-G13(1) The actual means of the family of a claimant/recipient for
the appropriate tax year is the amount worked out using the formula:
(2) In this section:
after-tax income, in relation to a parent of the
claimant/recipient for the appropriate tax year, means the gross income of the
parent for that year less any income tax or medicare levy payable in respect of
the parent’s taxable income for that year.
GAM (gross actual means), in relation to the
claimant/recipient’s family for the appropriate tax year, means the total
of the amounts of the actual means, for that year, of the claimant/recipient and
of each of the family members of the claimant/recipient.
NITML (notional income tax/medicare levy), in relation to a
parent of the claimant/recipient for the appropriate tax year, means the sum
of:
(a) the amount of income tax, before any rebates, and without regard to
any increase occurring in the tax free threshold because of section 20C or 20D
of the Income Tax Rates Act 1986 that would be notionally payable by the
parent for that year; and
(b) the amount of medicare levy that would be notionally payable by the
parent for that year if none of the parent’s children who are children
referred to in paragraph 23(15)(b) had a separate net income within the meaning
of section 159J of the Income Tax Assessment Act 1936 in that
year;
that would result in the after-tax income of the parent for that year being
an amount equal to one-half of GAM of the claimant/recipient’s family for
that year.
NPBL (net passive business loss) means the sum of the net
passive business losses (if any) of each of the parents of the
claimant/recipient in the appropriate tax year.
TFTI (tax-free threshold increase) means 20% of the total of
the amounts calculated in respect of each of the parents of the
claimant/recipient for the appropriate tax year under section 20C (without
regard to section 20K) of the Income Tax Rates Act 1986.
TNITML (total notional income tax/medicare levy) means the
total of the amounts of NITML in relation to each of the parents of the
claimant/recipient for the appropriate tax year.
Family actual means free area
1067G-G14 A person’s family actual means free area is
the amount that is the person’s parental income free area worked out under
Submodule 5 of Module F.
Reduction for family actual means
1067G-G15(1) A person’s reduction for family actual
means for the appropriate tax year is the amount obtained by dividing by
26 the person’s family actual means excess for that year.
(2) A person’s family actual means excess for the
appropriate tax year is the amount worked out using the formula:
where:
actual family means means the actual means of the
person’s family for that year.
actual means free area means the person’s family actual
means free area.
(3) If the amount worked out under subsection (2) is an amount of dollars
and cents, disregard the amount of cents.
(4) If the amount worked out under subsection (2) is less than $1, the
amount is taken to be nil.
Part
1—Amendments commencing on
Royal Assent
1 Paragraphs 551C(1)(c) and
(d)
Repeal the paragraphs, substitute:
(c) the Secretary is of the opinion that the person should:
(i) attend an office of the Department; or
(ii) attend a particular place for a particular purpose; or
(iii) contact the Department; or
(iv) give information to the Secretary; and
(d) the Secretary gives the person a written notice stating that the
person is required, within a period of not less than 14 days stated in the
notice, to:
(i) attend the office; or
(ii) attend the place; or
(iii) contact the Department; or
(iv) give the information; and
2 Paragraph 552(b)
After “person”, insert “or to someone else in respect of
the person”.
3 After paragraph
552A(1)(a)
Insert:
(aa) the Assistance for Isolated Children Scheme; and
4 Subsection 561B(1)
Repeal the subsection, substitute:
(1) The Secretary may give to a person in respect of whom a youth
allowance is being paid a notice that requires the person to tell the Department
if:
(a) a stated event or change of circumstances occurs; or
(b) the person becomes aware that a stated event or change of
circumstances is likely to occur.
5 Subsection 561C(1)
Repeal the subsection, substitute:
(1) The Secretary may give to a person in respect of whom a youth
allowance is being paid a notice that requires the person to give the Department
a statement about a matter that might affect the payment of the allowance to the
person.
6 After Subdivision D of Division 9 of Part
2.11
Insert:
(1) If:
(a) in working out the rate of youth allowance payable to a person, regard
is had to the combined parental income of the person, or the actual means of the
family of the person, for a tax year; and
(b) the combined parental income of the person, or the actual means of the
family of the person, to which regard was had consisted of an amount estimated
by the person; and
(c) the combined parental income of the person, or the actual means of the
family of the person, for the tax year is more than the amount of the combined
parental income of the person, or the actual means of the family of the person,
as the case may be, on which the determination of the rate of youth allowance
was based;
the person’s rate of youth allowance is to be recalculated on the
basis of the combined parental income of the person or the actual means of the
family of the person, as the case may be.
(2) In subsection (1):
actual means of the family of a person has the same meaning
as in Submodule 4 of Module G of the Youth Allowance Rate Calculator in section
1067G.
combined parental income of a person has the same meaning as
in Submodule 4 of Module F of the Youth Allowance Rate Calculator in section
1067G.
If point 1067G-F6 applies to a person in respect of a youth allowance
payment period that ends after 30 September in a year, the person’s rate
of youth allowance is to be recalculated on the basis of the changed appropriate
tax year referred to in that point.
7 Paragraph 569D(4)(a)
After “Service”, insert “or an appropriate medical
practitioner who has a detailed knowledge of the person’s physical
condition”.
8 After subsection 569H(6)
Insert:
Current 25% concessional study-load students who have previously
undertaken courses on a different basis
(6A) If:
(a) a person is undertaking a course as a 25% concessional study-load
student; and
(b) the person has previously undertaken:
(i) part of that course; or
(ii) one or more than one other course at the same level as that
course;
in any of the following ways:
(iii) as a full-time student;
(iv) as a 66% concessional study-load student;
(v) on a part-time basis; and
(c) the time spent by the person undertaking the part of the course
referred to in subparagraph (b)(i), or the course or courses referred to in
subparagraph (b)(ii), (the previous study) is not to be
disregarded under subsection (7);
the time spent by the person undertaking the previous study is taken to
be:
(d) twice the time that the person took to complete the previous study;
or
(e) if the Secretary has approved, under subsection (4), a longer
allowable study time in relation to the person for the course—the time
taken by the person to complete the previous study multiplied by the factor used
by the Secretary for the purposes of the approval under that
subsection.
9 Point 1066A-B1 (table and
notes)
Repeal the table and notes, substitute:
|
Table B—Maximum basic rates |
|||||
|---|---|---|---|---|---|
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
||
|
|
|
Column 3A |
Column 3B |
Column 4A |
Column 4B |
|
1 |
Not a member of a couple and person: |
$9,105.20 |
$3,806.40 |
$350.20 |
$146.40 |
|
2 |
Not a member of a couple and person: |
$9,105.20 |
$6,952.40 |
$350.20 |
$267.40 |
|
3 |
Not a member of a couple and person: |
$9,105.20 |
$4,576.00 |
$350.20 |
$176.00 |
|
4 |
Not a member of a couple and person: |
$9,105.20 |
$6,952.40 |
$350.20 |
$267.40 |
|
5 |
Partnered |
$7,633.60 |
$6,952.40 |
$293.60 |
$267.40 |
|
6 |
Member of illness separated couple, member of respite care couple or
partnered (partner in gaol) |
$9,105.20 |
$6,952.40 |
$350.20 |
$267.40 |
Note 1: For member of a couple,
partnered, illness separated couple, respite
care couple, and partnered (partner in gaol) see section
4.
Note 2: For dependent child, homeless
person and independent young person see section
5.
Note 3: For living away from the person’s
parental home see subsection 23(4D).
Note 4: The rates in columns 3A and 3B are adjusted annually
in line with CPI changes (see section 1198B).
10 Point 1066B-B1 (table and
notes)
Repeal the table and notes, substitute:
|
Table B—Maximum basic rates |
|||||
|---|---|---|---|---|---|
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
||
|
|
|
Column 3A |
Column 3B |
Column 4A |
Column 4B |
|
1 |
Not a member of a couple and person: |
$9,105.20 |
$3,806.40 |
$350.20 |
$146.40 |
|
2 |
Not a member of a couple and person: |
$9,105.20 |
$6,952.40 |
$350.20 |
$267.40 |
|
3 |
Not a member of a couple and person: |
$9,105.20 |
$4,576.00 |
$350.20 |
$176.00 |
|
4 |
Not a member of a couple and person: |
$9,105.20 |
$6,952.40 |
$350.20 |
$267.40 |
|
5 |
Partnered |
$7,633.60 |
$6,952.40 |
$293.60 |
$267.40 |
|
6 |
Member of illness separated couple, member of respite care couple or
partnered (partner in gaol) |
$9,105.20 |
$6,952.40 |
$350.20 |
$267.40 |
Note 1: For member of a couple,
partnered, illness separated couple, respite
care couple, and partnered (partner in gaol) see section
4.
Note 2: For dependent child, homeless
person and independent young person see section
5.
Note 3: For living away from the person’s
parental home see subsection 23(4D).
Note 4: The rates in columns 3A and 3B are adjusted annually
in line with CPI changes (see section 1198B).
11 Paragraph 1067A(10)(a)
Omit “the preceding”, substitute “any period
of”.
12 Subsection 1067A(10)
Omit “However, the employment must not have involved work outside
Australia.”.
13 Paragraph 1067F(1)(b)
Repeal the paragraph.
14 Paragraph 1067F(2)(b)
Repeal the paragraph.
15 After paragraph (c) of point
1067G-B4
Insert:
; and (d) whether the person is a member of a couple (see section
4).
16 Point 1067G-B4 (table)
Repeal the table, substitute:
|
Table BC—Maximum basic rates (long term income support
students) |
||
|---|---|---|
|
Column 1 Item |
Column 2 Person’s situation |
Column 3 Rate |
|
1 |
Not independent, lives at home and not a member of a couple |
$216.10 |
|
2 |
Not independent, required to live away from home and not a member of a
couple |
$324.70 |
|
3 |
Accommodated independent person and not a member of a couple |
$216.10 |
|
4 |
Independent, not an accommodated independent person and not a member of a
couple |
$324.70 |
|
5 |
Member of a couple |
$293.60 |
Note: The rates in column 3 are indexed annually in line
with CPI increases (see sections 1191-1194).
17 Paragraph 1067K(1)(a)
Repeal the paragraph.
18 Paragraph 1067K(2)(a)
Repeal the paragraph.
19 Points 1067L-B2 and
1067L-B3
Repeal the points, substitute:
Person who is not a long term income support student
1067L-B2(1) If the person is not a long term income support student (see
section 1067K), work out:
(a) whether the person is a member of a couple (see section 4);
and
(b) whether the person has a dependent child (see subsections 5(2) to
(9)); and
(c) if the person is not a member of a couple, whether the person has a YA
child (see subpoint (2)).
The person’s maximum basic rate is the amount in column 3 of the
table that corresponds to the person’s situation as described in column 2
of the table.
|
Table BA—Maximum basic rates (persons who are not long term income
support students) |
|---|
|
Column 1 Item |
Column 2 Person’s situation |
Column 3 Rate |
|---|---|---|
|
1 |
Does not have a dependent child or a YA child |
$267.40 |
|
2 |
Is a member of a couple and has a dependent child |
$293.60 |
|
3 |
Is not a member of a couple and has a dependent child or YA child |
$350.20 |
Note: The rates in column 3 are indexed annually in line
with CPI increases (see sections 1191-1194).
(2) In this point:
YA child, in relation to a person who is not a member of a
couple, means a child who is receiving youth allowance, is under 18 years of age
and would be a dependent child of the person if he or she were not receiving the
allowance.
Person who is a long term income support student
1067L-B3 If the person is a long term income support student (see section
1067K), work out whether the person is a member of a couple (see section
4).
The person’s maximum basic rate is the amount in column 3 of the
table that corresponds to the person’s situation as described in column 2
of the table.
|
Table BB—Maximum basic rates (persons who are long term income
support students) |
||
|---|---|---|
|
Column 1 Item |
Column 2 Person’s situation |
Column 3 Rate |
|
1 |
Is a member of a couple |
$293.60 |
|
2 |
Is not a member of a couple |
$324.70 |
20 Subpoint 1069-F2(1)
Omit “(2) and (3)”, substitute “(2), (3) and
(4)”.
21 At the end of point
1069-F2
Add:
(4) An amount is not to be added to a person’s standard family
allowance rate under subpoint (1) unless that rate exceeds the person’s
minimum family allowance rate.
22 Paragraph 1069-H30(c)
After “who”, insert “is under 18 years of age
and”.
23 Paragraph 1123(2)(a)
After “partner”, insert “or someone else of whom the
person is a family member”.
24 After section 1126
Insert:
(1) Subject to this section, if:
(a) a person (the relevant person) has disposed of an asset;
and
(b) the relevant person is a family member of another person (the
other person) when the other person claims a youth allowance;
and
(c) the relevant person disposed of the asset during a pre-pension year of
the other person; and
(d) the amount of that disposition, or the sum of that amount and the
amounts (if any) of other dispositions of assets previously made by the relevant
person or the other person during that pre-pension year, exceeds
$10,000;
then, for the purpose of determining whether a youth allowance is payable
to the other person, there is to be included in the value of the other
person’s assets for the period of 5 years that starts on the day on which
the disposition took place:
(e) the amount by which the sum of the amount of the first-mentioned
disposition and of the amounts (if any) of other dispositions of assets
previously made by the relevant person or the other person during that
pre-pension year exceeds $10,000; or
(f) the amount of the first-mentioned disposition;
whichever is the lesser amount.
Note 1: For disposes of assets see section
1123.
Note 2: For amount of disposition see section
1124.
Note 3: For the effect of a transaction that constitutes
both a disposal of an asset and a disposal of ordinary income see section
1110.
(2) If:
(a) amounts are included under subsection (1) in the value of the other
person’s assets because of a disposition of an asset by the relevant
person; and
(b) the relevant person ceases to be a family member of the other
person;
any amount that was included in the value of the other person’s
assets because of the disposition ceases to be included in the value of those
assets.
(3) If:
(a) an amount is included under subsection (1) in the value of the assets
of the other person because of a disposition of an asset by the relevant person;
and
(b) the relevant person dies;
any amount that was included in the value of those assets because of the
disposition ceases to be included in the value of those assets.
(1) Subject to this section, if:
(a) a person (the relevant person) has disposed of an asset
during a pension year of another person (the other person) of whom
the relevant person is a family member; and
(b) the other person is receiving youth allowance; and
(c) the amount of that disposition, or the sum of that amount and the
amounts (if any) of other dispositions of assets previously made by the relevant
person or the other person during that pension year, exceeds $10,000;
then, for the purposes of this Act, there is to be included in the value of
the other person’s assets for the period of 5 years that starts on the day
on which the disposition took place:
(d) the amount by which the sum of the amount of the first-mentioned
disposition and of the amounts (if any) of other dispositions of assets
previously made by the relevant person or the other person during the pension
year exceeds $10,000; or
(e) the amount of the first-mentioned disposition;
whichever is the lesser amount.
Note 1: For disposes of assets see section
1123.
Note 2: For amount of disposition see section
1124.
Note 3: For the effect of a transaction that constitutes
both a disposal of an asset and a disposal of ordinary income see section
1110.
(2) If:
(a) amounts are included under subsection (1) in the value of the other
person’s assets because of a disposition of an asset by the relevant
person; and
(b) the relevant person ceases to be a family member of the other
person;
any amount that was included in the value of the other person’s
assets because of the disposition ceases to be included in the value of those
assets.
(3) If:
(a) an amount is included under subsection (1) in the value of the assets
of the other person because of a disposition of an asset by the relevant person;
and
(b) the relevant person dies;
any amount that was included in the value of those assets because of the
disposition ceases to be included in the value of those assets.
25 Section 1127
Repeal the section, substitute:
This Division does not apply to a disposition of an asset that took
place:
(a) more than 5 years before the time when:
(i) the person who disposed of the asset; or
(ii) if that person was, at the time when the disposition took place, a
member of a couple—the person’s partner; or
(iii) if that person was, at that time, a family member of another person
who is receiving or claiming youth allowance and is not independent—the
other person;
became qualified for a social security pension, a social security benefit
or family allowance; or
(b) less than 5 years before the time referred to in paragraph (a) and
before the time when the Secretary is satisfied that the person who disposed of
the asset could reasonably have expected that the person, the person’s
partner or the other person, as the case may be, would become qualified for such
a pension, benefit or allowance.
26 Section 1128
Repeal the section.
27 Section 1198A
Repeal the section.
28 Section 1198B
Repeal the section, substitute:
This Act (and any other Act that refers to this Act) have effect as if,
on 1 January each year, the amount worked out by applying the
formula:
to an amount identified in column 2 of an item in the following table were
substituted for the amount identified in column 3 of the item.
|
Adjustment of DSP (under 21) MBR table |
||
|---|---|---|
|
Column 1 Item |
Column 2 YA MBR amount |
Column 3 corresponding DSP (under 21) MBR amount |
|
|
Youth Allowance Rate Calculator—point 1067G-B3—Table
BB |
Pension Rate Calculator D—point 1066A-B1—Table B and Pension
Rate Calculator E—Point 1066B-B1—Table B |
|
1 |
column 3—item 6 |
column 3A—items 1, 2, 3, 4 and 6 |
|
2 |
column 3—item 7 |
column 3A—item 5 |
|
3 |
column 3—item 1 |
column 3B—item 1 |
|
4 |
column 3—item 5 |
column 3B—items 2, 4, 5 and 6 |
|
5 |
column 3—item 2 |
column 3B—item 3 |
29 Subsections 1223(3) and
(4)
Repeal the subsections, substitute:
(3) Subject to subsection (4), if:
(a) an amount (the received amount) has been paid to a
person by way of youth allowance or family allowance; and
(b) either of the following subparagraphs applies:
(i) the person’s rate of youth allowance is recalculated under
section 565F (underestimate of combined parental income or of actual means of
family) or 565G (increase in combined parental income);
(ii) the person’s rate of family allowance is recalculated under
section 884 (amendment of assessable income), 885 (underestimate of income) or
886 (failure to notify notifiable event);
(c) the received amount exceeds the amount (the correct
amount) of the youth allowance or family allowance, as the case may be,
payable to the person;
the excess is a debt due to the Commonwealth.
Note: For the date of effect of a determination made to take
account of an amendment of assessable income, see section 890.
(4) If:
(a) youth allowance or family allowance is paid to a person in a tax year;
and
(b) an amount of youth allowance or family allowance is recoverable under
subsection (3) from the person; and
(c) apart from this subsection the amount would be recoverable before the
end of the tax year;
the following paragraphs have effect:
(d) if the amount is an amount of youth allowance—it is recoverable
only after the end of the tax year;
(e) if the amount is an amount of family allowance that is recoverable
because of:
(i) an increase in the person’s income; or
(ii) an underestimate of the person’s income;
it is recoverable only after the end of the tax year.
Part
2—Amendments commencing on 1
July 1998
30 Section 3 (index of
definitions)
Omit:
|
receiving full-time education at a school, college or university |
5(10) |
31 Subsection 5(1) (definition of homeless
person)
Before “means”, insert “, in Part 3.4A (Pension Rate
Calculator D) and Part 3.4B (Pension Rate Calculator E),”.
32 Subsection 5(1) definition of independent
young person)
Before “means”, insert “, in Part 3.4A (Pension Rate
Calculator D) and Part 3.4B (Pension Rate Calculator E),”.
33 Subsection 5(1) (subparagraph (b)(ii) of the
definition of parent)
Omit “paragraph (a)”, substitute “subparagraph
(b)(i)”.
34 Subsection 5(1) (paragraphs (b) and (c) of
the definition of prescribed educational scheme)
Repeal the paragraphs, substitute:
(b) the ABSTUDY Scheme; or
35 Subsection 5(1) (definition of receiving
full-time education at a school, college or university)
Repeal the definition.
36 Paragraph 540A(1)(a)
Repeal the paragraph.
37 Subsection 543A(2)
Repeal the subsection, substitute:
(2) A person who satisfies paragraph (1)(a) or (b) but is not yet 18 years
old is not taken under subsection (1) to have attained the minimum age for youth
allowance unless the person:
(a) has completed the final year of secondary school, or an equivalent
level of education; or
(b) is undertaking full-time study; or
(c) has agreed to enter into a Youth Allowance activity
agreement.
38 Paragraph 550A(a)
After “fails”, insert “, without reasonable
excuse,”.
39 Paragraph 552A(1)(a)
Omit “Tertiary”.
40 Paragraph 552A(2)(b)
Repeal the paragraph, substitute:
(b) an application is made for a payment in respect of the person under
the ABSTUDY Scheme; and
41 Paragraph 569D(4)(c)
Omit “Australian Psychological Society”, substitute
“Board established under the law of a State or Territory that registers
psychologists”.
42 Paragraph 576A(a)
After “fails”, insert “, without reasonable
excuse,”.
43 Paragraph 578A(1)(a)
Omit “Tertiary”.
44 Paragraph 578A(2)(b)
Repeal the paragraph, substitute:
(b) an application is made for a payment in respect of the person under
the ABSTUDY Scheme; and
45 Paragraph 614(4)(a)
Omit “Tertiary”.
46 Paragraph 614(6)(c)
Repeal the paragraph, substitute:
(c) an application is made for a payment in respect of the person under
the ABSTUDY Scheme; and
47 Subparagraph
737(1)(b)(i)
Omit “18”, substitute “16”.
48 Subparagraph
738(1)(b)(i)
Omit “18”, substitute “16”.
49 Section 833
Repeal the section, substitute:
(1) Subject to subsection (2), a person who has reached the age of 16
years cannot be an FA child.
(2) A person who has reached the age of 16 years and is undertaking
full-time study in a secondary course within the meaning of section 541B may be
an FA child until:
(a) the end of the calendar year in which the person reaches the age of 18
years; or
(b) the person ceases to undertake that full-time study;
whichever first happens.
Note: For undertaking full-time study see
section 541B.
50 After subsection 887(5B)
Insert:
(5C) If:
(a) a person (the youth allowance claimant) makes a claim
for youth allowance (the initial claim); and
(b) on the day on which the initial claim is made, the youth allowance
claimant is an FA child of another person; and
(c) the other person afterwards requests that his or her rate of family
allowance be increased on the ground that the youth allowance claimant is an FA
child of the other person; and
(d) a favourable determination is made as a result of the request;
and
(e) the Secretary is satisfied that it is reasonable for this subsection
to apply to the other person;
the determination takes effect on a day specified in the determination (not
being a day before the day on which the initial claim was made).
51 Subparagraph
1067A(9)(a)(iii)
Repeal the subparagraph, substitute:
(iii) because the parent or parents are unable to provide the person with
a suitable home owing to a lack of stable accommodation; and
52 Paragraph 1067A(10)(c)
Repeal the paragraph, substitute:
(c) a period or periods of employment over an 18 month period since the
person last left secondary school, earning the person at least the equivalent of
75% of the maximum Commonwealth training award payment that applied at the start
of the period of the employment.
53 Paragraph 1067F(1)(d)
Omit “out of the preceding 39 weeks”, substitute “weeks
out of the period of 39 weeks that ended when the person commenced to undertake
the full-time study referred to in paragraph (c)”.
54 Point 1067G-F3
Omit “gets” (wherever occurring), substitute “is
receiving”.
55 Paragraph 1067G-F8(d)
Omit “for that tax year” (first occurring).
56 Section 1067G (table in Module L of the Youth
Allowance Rate Calculator)
Omit “gets” (wherever occurring), substitute “is
receiving”.
57 Section 1067G (at the end of the table in
Module L of the Youth Allowance Rate Calculator)
Add:
|
27 |
Austudy payment |
(Part 2.11A) |
58 Paragraph 1067K(1)(d)
Omit “out of the preceding 39 weeks”, substitute “weeks
in the period of 39 weeks that ended when the person commenced to undertake the
study referred to in paragraph (c)”.
59 Paragraphs 1068(1)(a) and
(b)
Repeal the paragraphs, substitute:
(a) newstart allowance; or
(b) sickness allowance; or
60 Point 1068-B1 (table items 1 and
2)
Repeal the items.
61 Point 1068-B1 (table item 3, paragraph (b) of
column 2)
Omit “has turned 21 but”.
62 Point 1068-B1 (table item 4A, paragraph (b)
of column 2)
Omit “has turned 21 but”.
63 Point 1068-B1 (table item
6)
Repeal the item.
64 Point 1068-B1 (table item
7)
Omit “and person has turned 21”.
65 Point 1068-B1 (table item
8)
Repeal the item.
66 Point 1068-B1 (table item
9)
Omit “and person has turned 21”.
67 Point 1068-B1 (table item
10)
Repeal the item.
68 Point 1068-B1 (table item
11)
Omit “and person has turned 21”.
69 Paragraph 1068-D2(a)
Repeal the paragraph.
70 Subsection 1132A(1BB) (subparagraph (a)(ii)
of the definition of FA child)
After “receiving”, insert “youth allowance
or”.
71 Subparagraph
1157E(1)(c)(ii)
Omit “or a sickness allowance”, substitute “, a sickness
allowance or a youth allowance”.
72 Subparagraph
1157F(1)(c)(iv)
Omit “or a sickness allowance”, substitute “, a sickness
allowance or a youth allowance”.
73 Section 1169
Repeal the section, substitute:
If:
(a) the rate of a person’s compensation affected payment is to be
reduced under this Part; and
(b) the person’s rate is reduced under the ordinary income test
Module, or the assets test Module, of a Rate Calculator or under the parental
income test in Module F, or the family actual means test in Module G, of the
Youth Allowance Rate Calculator;
the reduction under this Part is to apply to the person’s rate as
reduced as referred to in paragraph (b).
74 Section 1190 (table item 3B, column
4)
Omit “—Table BB—column 3—all
amounts”.
75 Section 1190 (table item 41, column
2)
Omit “ordinary”.
76 Subsection 1191(1) (after table item
21)
Insert:
|
21A |
benefit “single” non-homeowner AVL |
1 July |
December |
most recent December quarter before reference quarter |
$250.00 |
|
21B |
benefit “partnered” (item 2) homeowner AVL |
1 July |
December |
most recent December quarter before reference quarter |
$250.00 |
|
21C |
benefit “partnered” (item 2) non-homeowner AVL |
1 July |
December |
most recent December quarter before reference quarter |
$250.00 |
77 Subsection 1191(1) (table item 30, column
2)
After “parental”, insert “income”.
78 Subsection 1192(6)
Repeal the subsection.
79 Paragraph 1236(1B)(a)
Omit “from a person’s youth training
allowance”.
80 Clause 109 of Schedule 1A (the clause 109
inserted by item 14 of Schedule 2 to the Social Security and Veterans’
Affairs Legislation Amendment (Budget and Other Measures) Act
1998)
Renumber as clause 109A.
81 Subclause 111A(2) of Schedule
1A
Omit “AUSTUDY age”, substitute “austudy
age”.
Part
3—Amendment commencing on 20
September 1998
82 Clause 110 of Schedule 1A (the clause 110
inserted by item 43 of Schedule 3 to the Social Security and Veterans’
Affairs Legislation Amendment (Budget and Other Measures) Act
1998)
Renumber as clause 120A.
Part
4—Amendments commencing on 1
January 1999
83 Subsection 543A(2)
Omit “A person”, substitute “Subject to subsections (2A)
and (2B), a person”.
84 Paragraphs 543A(2)(ba) and
(c)
Repeal the paragraphs, substitute:
(c) the person has agreed to enter into a Youth Allowance activity
agreement.
85 Subsection 543A(2A)
Omit all the words before paragraph (a), substitute:
(2A) Subject to subsection (2B), subsection (2) does not apply to the
person if the Secretary considers that the person does not have the capacity to
undertake full-time study or training because he or she:
86 Subsection 543A(2B)
Repeal the subsection, substitute:
(2B) If the following circumstances exist in relation to the person in
respect of a period (the qualifying period):
(a) except for paragraph 540(b), the person would be qualified for a youth
allowance in respect of the qualifying period;
(b) the person is taken to have attained the minimum age for youth
allowance in respect of the qualifying period only because one or more of the
grounds (the precluding grounds) referred to in subsection (2A)
preclude subsection (2) from applying to the person;
the person is qualified for youth allowance under section 540 only in
respect of so much of the qualifying period as does not exceed:
(c) if the only precluding ground is the ground referred to in paragraph
(2A)(c) or (d)—6 weeks; or
(d) if the only precluding ground is the ground referred to in paragraph
(2A)(h) or (j)—2 weeks; or
(e) if the only precluding ground is the ground referred to in paragraph
(2A)(l)—the period for which the work, education or training lasts;
or
(f) if the only precluding grounds are 2 or more of the grounds referred
to in paragraphs (2A)(c), (d), (h), (j) and (l)—the longer or longest
period prescribed by paragraphs (c), (d) and (e) of this subsection in relation
to those precluding grounds; or
(g) otherwise—13 weeks or such longer period as the Secretary
approves.
Part
5—Amendment commencing on 1
July 1999
87 Section 584A
Repeal the section, substitute:
(1) Austudy payment is to be paid:
(a) in arrears; and
(b) by instalments relating to such periods (not exceeding 14 days) as the
Secretary determines.
(2) Instalments of austudy payment are to be paid at such times as the
Secretary determines.
(3) The amount that is to be paid to a person as an instalment of austudy
payment in relation to a period is the total of the amounts of austudy payment
(calculated by reference to the daily rate of payment applicable to each day)
payable to the person for the days in that period on which austudy payment was
payable to the person.
(4) Each of the periods determined by the Secretary under subsection (1)
is an instalment period in relation to austudy payment.
Part
6—Amendments commencing on 1
July 2000
88 After paragraph
552A(1)(d)
Insert:
(da) the scheme known as the Ready Reserve Education Assistance Scheme;
and
89 After paragraph
578A(1)(d)
Insert:
(da) the scheme known as the Ready Reserve Education Assistance Scheme;
and
Part
1—Amendments commencing on
Royal Assent
Data-matching
Program (Assistance and Tax) Act 1990
1 Subsection 3(1) (paragraph (cb) of the
definition of personal assistance)
Repeal the paragraph, substitute:
(cb) a payment of financial supplement under:
(i) Chapter 2B of the Social Security Act 1991; or
(ii) the Student Financial Supplement Scheme established under Chapter 2B
of the Social Security Act 1991 as in force before the commencement of
Schedule 2 to the Youth Allowance Consolidation Act 1999; or
Income
Tax Assessment Act 1936
2 Subsection 163B(10) (paragraphs (a) and (b) of
the definition of FS assessment debt)
Repeal the paragraphs, substitute:
(a) subsection 19AB(2) of the Social Security Act 1991;
or
(b) the Student Assistance Act 1973 as in force at a time on or
after 1 July 1998.
3 Paragraph 202(ha)
Repeal the paragraph, substitute:
(ha) to facilitate the administration of:
(i) Part 2B.3 of the Social Security Act 1991; or
(ii) a provision of an instrument under Chapter 2B of the Social
Security Act 1991 (as in force before the commencement of Schedule 2 to the
Youth Allowance Consolidation Act 1999) establishing a Student Financial
Supplement Scheme, being a provision relating to the recovery through the
taxation system of a student’s outstanding indebtedness in respect of
financial supplement paid to the student in accordance with the Scheme;
and
4
Subsection 221ZY(1) (paragraphs (a) and (b) of the definition of
FS assessment
debt)
Repeal the paragraphs, substitute:
(a) subsection 19AB(2) of the Social Security Act 1991;
or
(b) the Student Assistance Act 1973 as in force at a time on or
after 1 July 1998.
Taxation
(Interest on Overpayments and Early Payments) Act 1983
5 Subsection 3(1) (paragraphs (a) and (b) of the
definition of FS assessment debt)
Repeal the paragraphs, substitute:
(a) subsection 19AB(2) of the Social Security Act 1991;
or
(b) the Student Assistance Act 1973 as in force at a time on or
after 1 July 1998.
Part
2—Amendments commencing on 1
July 1998
Farm
Household Support Act 1992
6 Paragraph 24A(1)(a)
Repeal the paragraph, substitute:
(a) the fortnightly rate at which:
(i) if the person is of youth allowance age—youth allowance would be
payable to the person if he or she were entitled to receive youth allowance;
or
(ii) if the person is not of youth allowance age—newstart allowance
would be payable to the person if he or she were entitled to receive newstart
allowance;
7 Subsection 24A(1A) (paragraph (b) of the
definition of income support payment rate)
After “newstart allowance”, insert “or youth
allowance”.
8 Paragraph 24B(1)(a)
Repeal the paragraph, substitute:
(a) the fortnightly rate at which:
(i) if the person is of youth allowance age—youth allowance would be
payable to the person if he or she were entitled to receive youth allowance;
or
(ii) if the person is not of youth allowance age—newstart allowance
would be payable to the person if he or she were entitled to receive newstart
allowance; and
9 Subsection 24B(2) (paragraph (b) of the
definition of income support payment rate)
After “newstart allowance”, insert “or youth
allowance”.
Taxation
Administration Act 1953
10 Paragraph 8WA(1)(b)
Repeal the paragraph, substitute:
(b) the first-mentioned person requires or requests the number to be
quoted in connection with that person exercising powers or performing functions
under or in relation to, or complying wth an obligation imposed by, a taxation
law or a law of the Commonwealth of the kind referred to in paragraph 202(c),
(d), (g), (h), (ha), (i) or (j) of the Income Tax Assessment Act 1936;
or
11 Paragraphs 8WB(1)(d) and
(e)
After “(h),”, insert “(ha),”.
Part
3—Amendment commencing on 1
July 1999
Taxation
Administration Act 1953
12 Section 8AAZA (definition of FS assessment
debt)
Repeal the definition, substitute:
FS assessment debt means an FS assessment debt
under:
(a) subsection 19AB(2) of the Social Security Act 1991;
or
(b) the Student Assistance Act 1973 as in force at a time on or
after 1 July 1998.