Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 -- Amendment of Pension Rate Calculator A
1 Point 1064 - A1 (method statement, after step 5)
Insert:
Note: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.
2 Point 1064 - E1 (method statement, step 1, note)
Repeal the note, substitute:
Note 1: F or the treatment of the ordinary income of members of a couple see point 1064 - E2.
Note 2: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.
3 At the end of point 1064 - E2
Add:
Note: For the purposes of working out a person's disability support pension rate under this Rate Calculator, Module F applies to working out the ordinary incomes of both members of the couple.
4 Section 1064 (after Module E)
Insert:
Module F -- Ordinary income for the purposes of disability support pension
Application of this Module
1064 - F1 This Module applies only for the purposes of working out the rate of disability support pension payable to a person. It so applies to that person and, if the person is a member of a couple, to the person's partner.
Lump sum payments arising from termination of employment
1064 - F2 Subject to points 1064 - F3 to 1064 - F14 (inclusive), if:
(a) a person's employment has been terminated; and
(b) as a result the person is entitled to a lump sum payment from the person's former employer;
the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.
Rolling over lump sum payments
1064 - F3 If:
(a) a person's employment has been terminated; and
(b) as a result the person is entitled to a lump sum termination payment from the person's former employer; and
(c) the person rolls over the lump sum termination payment into an approved deposit fund, a superannuation fund or a deferred annuity;
the lump sum termination payment is to be disregarded in working out the ordinary income of the person for the purposes of Module E.
Certain leave payments taken to be ordinary income--employment continuing
1064 - F4 If:
(a) a person is employed; and
(b) the person is on leave for a period; and
(c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;
the person is taken to have received ordinary income for a period (the income maintenance period ) equal to the leave period to which the leave payment entitlement relates.
Certain payments taken to be ordinary income--employment terminated
1064 - F5 If:
(a) a person's employment has been terminated; and
(b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);
the person is taken to have received ordinary income for a period (the income maintenance period ) equal to the period to which the payment relates.
More than one termination payment on a day
1064 - F6 If:
(a) a person is covered by point 1064 - F5; and
(b) the person receives more than one termination payment on a day;
the income maintenance period is worked out by adding the periods to which the payments relate.
Start of income maintenance period--employment continuing
1064 - F7 If a person is covered by point 1064 - F4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.
Start of income maintenance period--employment terminated
1064 - F8 If a person is covered by point 1064 - F5, the income maintenance period starts, subject to point 1064 - F9, on the day on which the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment
1064 - F9 If:
(a) a person who is covered by point 1064 - F5 is subject to an income maintenance period (the first period ); and
(b) the person is paid another termination payment during that period (the second termination payment );
the income maintenance period for the second termination payment starts on the day after the end of the first period.
Leave payments or termination payments in respect of periods longer than a fortnight
1064 - F10 If:
(a) a person receives a leave payment or termination payment; and
(b) the payment is in respect of a period longer than a fortnight;
the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:
(c) dividing the amount received by the number of days in the period to which the payment relates (the daily rate ); and
(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.
1064 - F11 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.
Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).
Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).
Note 3: If an income maintenance period applies to a person, then, during that period:
(a) the pension claimed may not be payable to the person; or
(b) the amount of the pension payable to the person may be reduced.
When a person receives a leave payment or a termination payment
1064 - F12 For the purposes of points 1064 - F3 to 1064 - F11 (inclusive), a person (the first person ) is taken to receive a leave payment or termination payment if:
(a) the payment is made to another person:
(i) at the direction of the first person or a court; or
(ii) on behalf of the first person; or
(iii) for the benefit of the first person; or
(b) the first person waives or assigns his or her right to receive the payment.
Single payment in respect of different kinds of termination payments
1064 - F13 If a person who is covered by point 1064 - F5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1064 - F3 to 1064 - F12 (inclusive):
(a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and
(b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
Definitions
1064 - F14 In this Module:
"leave payment" includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.
"payment fortnight" means a fortnight in respect of which a disability support pension is paid, or would be paid apart from the application of an income maintenance period, to a person.
"period to which the payment relates" means:
(a) if the payment is a leave payment--the leave period to which the payment relates; or
(b) if the payment is a redundancy payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the redundancy) have received from the employment that was terminated--the period for which the person would have received that amount of ordinary income; or
(c) if the payment is a redundancy payment and paragraph ( b) does not apply--the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the redundancy payment if:
(i) the person's employment had continued; and
(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
"redundancy payment" does not include a qualifying eligible termination payment within the meaning of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936 .
"roll" -over , in relation to a lump sum leave payment or a lump sum redundancy payment, has the meaning that roll-over has in section 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.
"termination payment" means:
(a) a leave payment relating to a person's employment that has been terminated; or
(b) a redundancy payment.
Part 2 -- Amendment of Pension Rate Calculator D
5 Point 1066A - A1 (method statement, after step 5)
Insert:
Note: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.
6 Point 1066A - F1 (method statement, step 1, note)
Repeal the note, substitute:
Note 1: F or the treatment of the ordinary income of members of a couple see point 1066A - F2.
Note 2: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.
7 Section 1066A (after Module F)
Insert:
Module G -- Payments taken to be ordinary income
Application of this Module
1066A - G1 This Module applies to a person and, if the person is a member of a couple, the person's partner.
Lump sum payments arising from termination of employment
1066A - G2 Subject to points 1066A - G3 to 1066A - G14 (inclusive), if:
(a) a person's employment has been terminated; and
(b) as a result the person is entitled to a lump sum payment from the person's former employer;
the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.
Rolling over lump sum payments
1066A - G3 If:
(a) a person's employment has been terminated; and
(b) as a result the person is entitled to a lump sum termination payment from the person's former employer; and
(c) the person rolls over the lump sum termination payment into an approved deposit fund, a superannuation fund or a deferred annuity;
the lump sum termination payment is to be disregarded in working out the ordinary income of the person for the purposes of Module F.
Certain leave payments taken to be ordinary income--employment continuing
1066A - G4 If:
(a) a person is employed; and
(b) the person is on leave for a period; and
(c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;
the person is taken to have received ordinary income for a period (the income maintenance period ) equal to the leave period to which the leave payment entitlement relates.
Certain payments taken to be ordinary income--employment terminated
1066A - G5 If:
(a) a person's employment has been terminated; and
(b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);
the person is taken to have received ordinary income for a period (the income maintenance period ) equal to the period to which the payment relates.
More than one termination payment on a day
1066A - G6 If:
(a) a person is covered by point 1066A - G5; and
(b) the person receives more than one termination payment on a day;
the income maintenance period is worked out by adding the periods to which the payments relate.
Start of income maintenance period--employment continuing
1066A - G7 If a person is covered by point 1066A - G4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.
Start of income maintenance period--employment terminated
1066A - G8 If a person is covered by point 1066A - G5, the income maintenance period starts, subject to point 1066A - G9, on the day on which the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment
1066A - G9 If:
(a) a person who is covered by point 1066A - G5 is subject to an income maintenance period (the first period ); and
(b) the person is paid another termination payment during that period (the second termination payment );
the income maintenance period for the second termination payment starts on the day after the end of the first period.
Leave payments or termination payments in respect of periods longer than a fortnight
1066A - G10 If:
(a) a person receives a leave payment or termination payment; and
(b) the payment is in respect of a period longer than a fortnight;
the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:
(c) dividing the amount received by the number of days in the period to which the payment relates (the daily rate ); and
(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.
1066A - G11 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.
Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).
Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).
Note 3: If an income maintenance period applies to a person, then, during that period:
(a) the pension claimed may not be payable to the person; or
(b) the amount of the pension payable to the person may be reduced.
When a person receives a leave payment or a termination payment
1066A - G12 For the purposes of points 1066A - G3 to 1066A - G11 (inclusive), a person (the first person ) is taken to receive a leave payment or termination payment if:
(a) the payment is made to another person:
(i) at the direction of the first person or a court; or
(ii) on behalf of the first person; or
(iii) for the benefit of the first person; or
(b) the first person waives or assigns his or her right to receive the payment.
Single payment in respect of different kinds of termination payments
1066A - G13 If a person who is covered by point 1066A - G5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1066A - G3 to 1066A - G12 (inclusive):
(a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and
(b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
Definitions
1066A - G14 In this Module:
"leave payment" includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.
"payment fortnight" means a fortnight in respect of which a disability support pension is paid, or would be paid apart from the application of an income maintenance period, to a person.
"period to which the payment relates" means:
(a) if the payment is a leave payment--the leave period to which the payment relates; or
(b) if the payment is a redundancy payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the redundancy) have received from the employment that was terminated--the period for which the person would have received that amount of ordinary income; or
(c) if the payment is a redundancy payment and paragraph ( b) does not apply--the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the redundancy payment if:
(i) the person's employment had continued; and
(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
"redundancy payment" does not include a qualifying eligible termination payment within the meaning of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936 .
"roll" -over , in relation to a lump sum leave payment or a lump sum redundancy payment, has the meaning that roll-over has in section 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.
"termination payment" means:
(a) a leave payment relating to a person's employment that has been terminated; or
(b) a redundancy payment.
8 Application provision
The amendments made by this Schedule apply in relation to termination payments or leave payments to which a person becomes entitled, or that a person receives, on or after 20 September 2006.