Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1068B

  (1)   If a person is a member of a couple, the person's rate of parenting payment is the benefit PP (partnered) rate.

  (2)   The benefit PP (partnered) rate is worked out in accordance with the rate calculator at the end of this section.

Note:   For member of a couple see section   4.

Method of calculating rate--general

  1068B - A1   The rate of benefit PP (partnered) is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14. There are 2 ways of working out the fortnightly rate:

  (a)   one for a person who is not a partner of a non - independent YA recipient (see point 1068B - A2); and

  (b)   one for a person who is a partner of a non - independent YA recipient (see point 1068B - A3).

Note:   For partner of a non - independent YA recipient see subsection   23(1).

Method of calculating rate for person who is not a partner of a non - independent YA recipient

  1068B - A2   If a person is not the partner of a non - independent YA recipient, the fortnightly rate of benefit PP (partnered) for the person is worked out as follows:

Note 1:   For partner of a non - independent YA recipient see subsection   23(1).

Note 2:   If a person's rate is reduced under step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section   1210 (maximum basic rate first, then rent assistance).

Method of calculating rate for partner of a non - independent YA recipient

  1068B - A3   If a person is the partner of a non - independent YA recipient, the fortnightly rate of benefit PP (partnered) for the person is worked out as follows:

Note 1:   For partner of a non - independent YA recipient see subsection   23(1).

Note 2:   If a person's rate is reduced under step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section   1210 (maximum basic rate first, then rent assistance).

Maximum basic rate

  1068B - C2   A person's maximum basic rate is worked out using Table C. Work out the person's family situation. The maximum basic rate is the corresponding amount in Column 3.

Note 1:   For illness separated couple , respite care couple and partnered (partner in gaol) see section   4.

Note 2:   The rates are indexed 6 monthly in line with CPI increases (see sections   1191 to 1194).

Effect of income on maximum payment rate

  1068B - D1   This is how to work out the effect of a person's ordinary income, and the ordinary income of the person's partner, on the person's maximum payment rate:

Note 1:   For ordinary income see section   8.

Note 2:   See point 1068B - A2 (step 6) for the significance of the person's income reduction.

Note 3:   The application of the ordinary income test is affected by provisions concerning the following:

(a)   the general concept of ordinary income and the treatment of certain income amounts (Division   1 of Part   3.10);

(b)   business income (sections   1074 and 1075);

(c)   income from financial assets (including income streams (short term) and certain income streams (long term)) (Division   1B of Part   3.10);

(d)   income from income streams not covered by Division   1B of Part   3.10 (Division   1C of Part   3.10);

(e)   disposal of income (sections   1106 to 1111).

Ordinary income of members of certain couples

  1068B - D2   If a person's partner is receiving a social security pension, a service pension, income support supplement or a veteran payment, the person's ordinary income is taken to be one half of the sum of:

  (a)   the amount that would be the person's ordinary income if he or she were not a member of a couple; and

  (b)   the amount that would be the ordinary income of the person's partner if the partner were not a member of a couple.

Board and lodging

  1068B - D6   A person's ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.

Lump sum payments arising from termination of employment

  1068B - D7   Subject to points 1068B - D8 to 1068B - D18 (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.

Directed termination payments excluded

  1068B - D8   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; and

  (c)   the payment, or part of the payment, is a directed termination payment within the meaning of section   82 - 10F of the Income Tax (Transitional Provisions) Act 1997 ;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

Certain leave payments taken to be ordinary income--employment continuing

  1068B - D9   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 the 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 termination payments taken to be ordinary income

  1068B - D10   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

  1068B - D11   If:

  (a)   the person is covered by point 1068B - D10; 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

  1068B - D12   If the person is covered by point 1068B - D9, 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

  1068B - D13   If the person is covered by point 1068B - D10, the income maintenance period starts, subject to point 1068B - D14, on the day the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

  1068B - D14   If a person who is covered by point 1068B - D10 is subject to an income maintenance period (the first period ) and the person is paid another termination payment during that period (the second leave payment ), the income maintenance period for the second termination payment commences the day after the end of the first period.

  1068B - D15   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(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 benefit PP (partnered) claimed may not be payable to the person; or

(b)   the amount of the benefit PP (partnered) payable to the person may be reduced.

When a person receives a leave payment or a termination payment

  1068B - D16   For the purposes of points 1068B - D8 to 1068B - D15 (inclusive), a person (the first person ) is taken to receive a leave payment or termination payment if the payment is made to another person:

  (a)   at the direction of the first person or a court; or

  (b)   on behalf of the first person; or

  (c)   for the benefit of the first person; or

the first person waives or assigns the first person's right to receive the payment.

Single payment in respect of different kinds of termination payments

  1068B - D17   If a person who is covered by point 1068B - D10 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1068B - D9 to 1068B - D16 (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions

  1068B - D18   In points 1068B - D9 to 1068B - D18 (inclusive):

"leave payment" includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.

"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 termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) 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 termination 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 termination 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" includes a payment in lieu of notice, but does not include a directed termination payment within the meaning of section   82 - 10F of the Income Tax (Transitional Provisions) Act 1997 .

"termination payment" includes:

  (a)   a redundancy payment; and

  (b)   a leave payment relating to a person's employment that has been terminated; and

  (c)   any other payment that is connected with the termination of a person's employment.

Period over which ordinary income taken into account

  1068B - D19   Subject to points 1068B - D8 to 1068B - D18 (inclusive), a person's ordinary income (except employment income) is to be taken into account over such period, not exceeding 52 weeks, as the Secretary determines.

Note 1:   This point, in conjunction with point 1068B - D20, enables the Secretary to determine the person's fortnightly income amount that best represents the person's income situation.

Note 2:   See Division   1AA of Part   3.10 for the treatment of employment income.

Fortnightly rate of ordinary income

  1068B - D20   For the purposes of this Module, the person's ordinary income (except employment income) for such a period is to be reduced to a fortnightly rate rounded to the nearest cent (rounding 0.5 cents downwards).

Payment of arrears of periodic compensation payments

  1068B - D21   If:

  (a)   at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving a compensation affected payment; and

  (b)   in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive, on each day in the periodic payments period, an amount calculated by dividing the amount received by the number of days in the periodic payments period.

Note:   For compensation affected payment and periodic payments period see section   17.

Partner income free area

  1068B - D22   The partner income free area for a person is:

  (a)   if the person's partner is not receiving a social security benefit and has not turned 22--the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full - time study (see section   541B); or

  (b)   if the person's partner is not receiving a social security benefit and has turned 22--the amount of income of the partner (rounded up to the nearest dollar) beyond which jobseeker payment would not be payable to the partner if the partner were qualified for a jobseeker payment; or

  (c)   if the person's partner is receiving a social security benefit--the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.

  1068B - D22A   For the purposes of paragraph   1068B - D22(a), disregard steps 2, 2A and 3 of the method statement in point 1067G - A1.

  1068B - D22B   For the purposes of paragraph   1068B - D22(b), disregard steps 2 and 3 of the method statement in point 1068 - A1.

Partner income excess

  1068B - D23   If:

  (b)   the person's partner is not receiving a social security pension, a service pension, income support supplement or a veteran payment; and

  (c)   the partner's ordinary income exceeds the partner income free area for the partner;

the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area. Otherwise, the person's partner income excess is nil.

Partner income reduction

  1068B - D24   If a person has a partner income excess, the person's partner income reduction is an amount equal to 60% of the part of the partner's ordinary income that exceeds the partner income free area.

Ordinary income free area

  1068B - D27   A person's ordinary income free area is $150.

Note:   The income free area is used in the ordinary income test in relation to fortnightly income.

Ordinary income excess

  1068B - D28   If a person's ordinary income exceeds the person's ordinary income free area:

  (a)   the person has an ordinary income excess; and

  (b)   the person's ordinary income excess is the amount by which the person's ordinary income exceeds the person's ordinary income free area.

Ordinary income reduction

  1068B - D29   If a person has an ordinary income excess, the person's ordinary income reduction is the sum of:

  (a)   the person's lower range reduction (see point 1068B - D30); and

  (b)   the person's upper range reduction (if any) (see point 1068B - D31).

Lower range reduction

  1068B - D30   The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed $106.

Upper range reduction

  1068B - D31   The person's upper range reduction is an amount equal to 60% of the part (if any) of the person's ordinary income excess that exceeds $106.

Pension supplement

  1068B - DA1   A pension supplement amount is to be added to the person's maximum basic rate if the person is residing in Australia, has reached pension age and:

  (a)   is in Australia; or

  (b)   is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

  1068B - DA2   The person's pension supplement amount is:

  (a)   if an election by the person under subsection   1061VA(1) is in force--the amount worked out under point 1068B - DA4; and

  (b)   otherwise--the amount worked out under point 1068B - DA3.

Amount if no election in force

  1068B - DA3   The person's pension supplement amount is the amount worked out by:

  (a)   applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

  (b)   dividing the result by 26; and

  (c)   if:

  (i)   the person is not partnered; and

  (ii)   the amount resulting from paragraph   (b) is not a multiple of 10 cents;

    rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of 10 cents but is a multiple of 5 cents).

Note:   For combined couple rate of pension supplement , see subsection   20A(1).

Amount if election in force

  1068B - DA4   The person's pension supplement amount is the amount worked out as follows:

  (a)   work out the amount for the person under point 1068B - DA3 as if the election were not in force;

  (b)   from that amount, subtract 1 / 26 of the person's minimum pension supplement amount.

  1068B - DB1   An energy supplement is to be added to the person's (the recipient's ) maximum basic rate if the recipient is residing in Australia and:

  (a)   is in Australia; or

  (b)   is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note:   Section   918 may affect the addition of the energy supplement.

Recipient has reached pension age

  1068B - DB2   If the recipient has reached pension age, the recipient's energy supplement is the amount worked out using the following table:

Recipient has not reached pension age

  1068B - DB3   If the recipient has not reached pension age, the recipient's energy supplement is the amount worked out using the following table:

Qualification for pharmaceutical allowance

  1068B - E1   Subject to points 1068B - E1A, 1068B - E2, 1068B - E3, 1068B - E4 and 1068B - E6, an additional amount by way of pharmaceutical allowance is to be included in a person's maximum payment rate in points 1068B - A2 and 1068B - A3 if:

  (b)   the person is an Australian resident, or has a qualifying residence exemption for parenting payment; and

  (d)   one or more of the following applies:

  (i)   the person has turned 55, and has been receiving income support payments in respect of a continuous period of at least 9 months (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this paragraph);

  (ii)   the person is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section   40L of the Administration Act and that has been made because of the circumstance referred to in paragraph   40L(5)(a) of that Act;

  (iii)   the person has a partial capacity to work.

Note 1:   For income support payment see subsection   23(1).

Note 2:   For the determination of the continuous period in respect of which a person received income support payments see section   38B.

Note 3:   For Australian resident and qualifying residence exemption see section   7.

Note 4:   For partial capacity to work see section   16B.

No pharmaceutical allowance if person receiving pension supplement

  1068B - E1A   Pharmaceutical allowance is not to be added to a person's maximum basic rate if a pension supplement amount has been added to that rate.

No pharmaceutical allowance if person receiving certain supplements under other Acts

  1068B - E2   Pharmaceutical allowance is not to be included in a person's maximum basic rate if the person is receiving:

  (a)   veterans supplement under section   118A of the Veterans' Entitlements Act; or

  (b)   MRCA supplement under section   300 of the Military Rehabilitation and Compensation Act; or

  (c)   pharmaceutical supplement under Part   3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 ; or

  (d)   pharmaceutical supplement under Part   4 of the Treatment Benefits (Special Access) Act 2019 .

No pharmaceutical allowance if partner receiving certain supplements under other Acts

  1068B - E3   Pharmaceutical allowance is not to be included in a person's maximum basic rate if:

  (a)   the person is a member of a couple; and

  (b)   the person's partner is receiving:

  (i)   veterans supplement under section   118A of the Veterans' Entitlements Act; or

  (ii)   MRCA supplement under section   300 of the Military Rehabilitation and Compensation Act; or

  (iii)   pharmaceutical supplement under Part   3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 ; or

  (iv)   pharmaceutical supplement under Part   4 of the Treatment Benefits (Special Access) Act 2019 ; and

  (c)   the person's partner is not receiving a service pension or a veteran payment.

No pharmaceutical allowance before advance payment period ends

  1068B - E4   Pharmaceutical allowance is not to be included in a person's provisional payment rate if:

  (a)   the person has received an advance pharmaceutical allowance under Part   2.23 of this Act; and

  (b)   the person's advance payment period has not ended.

Note:   For advance payment period see point 1068B - E5.

Advance payment period

  1068B - E5(1)   A person's advance payment period starts on the day on which the advance pharmaceutical allowance is paid to the person.

  1068B - E5(2)   The period ends after the number of paydays worked out using the following formula have passed:

where:

"amount of advance" is the amount of the advance paid to the person.

"pharmaceutical allowance rate" is the fortnightly amount of pharmaceutical allowance which would be included in the person's maximum payment rate in working out the benefit PP (partnered) instalment for the day on which the advance is paid if parenting payment were payable to the person and pharmaceutical allowance were to be included in the person's maximum payment rate. (The person's maximum payment rate is the maximum payment rate at step 4 of whichever of the method statements in points 1068B - A2 and 1068B - A3 is applicable to the person.)

Note:   The person may have commenced receiving parenting payment after having been a pension recipient and have received an advance while a pension recipient.

No pharmaceutical allowance if annual limit reached

  1068B - E6   Pharmaceutical allowance is not to be included in a person's provisional payment rate if:

  (a)   the person has received an advance pharmaceutical allowance during the current calendar year; and

  (b)   the total amount paid to the person for that year by way of:

  (i)   pharmaceutical allowance; and

  (ii)   advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1:   For the amount paid to a person by way of pharmaceutical allowance see subsections   19A(2) to (7).

Note 2:   The annual limit is affected by:

(a)   how long during the calendar year the person was on pension or benefit; and

(b)   whether the person's rate of pharmaceutical allowance varies during the calendar year.

Amount of pharmaceutical allowance

  1068B - E8   The amount of pharmaceutical allowance is the amount per fortnight worked out using Table E.

Note 1:   For illness separated couple , respite care couple and partnered (partner in gaol) see section   4.

Note 2:   The amounts in Column 3 are indexed or adjusted annually in line with CPI increases (see sections   1191 to 1194 and 1206A).

Remote area allowance--person physically in remote area

  1068B - G1   An amount by way of remote area allowance is to be added in step 7 of the method statements in points 1068B - A2 and 1068B - A3 to a person's rate of benefit PP (partnered) if:

  (b)   any of the following subparagraphs applies:

  (i)   apart from this point, the person's rate of benefit PP (partnered) would be greater than nil;

  (ii)   apart from this point, the person's rate of benefit PP (partnered) would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part   2.23 of this Act;

  (iii)   apart from this point, the person's rate of benefit PP (partnered) would be nil merely because an election by the person under subsection   1061VA(1) is in force;

  (iv)   apart from this point, the person's rate of benefit PP (partnered) would be nil merely because of both of the matters mentioned in subparagraphs   (ii) and (iii); and

  (c)   the person's usual place of residence is in a remote area; and

  (d)   the person is physically present in the remote area.

Note 1:   For remote area see subsection   14(1).

Note 2:   A person may be considered to be physically present in a remote area during temporary absences--see subsection   14(2).

Rate of remote area allowance

  1068B - G2   The rate of remote area allowance payable to a person is worked out using Table G. Work out which family situation in the table applies to the person. The rate of remote area allowance is the corresponding amount in Column 3 plus the additional corresponding amount in Column 4 for each FTB child, and each regular care child, of the person.

Note:   For illness separated couple, respite care couple and partnered (partner in gaol) see section   4.

Meaning of remote area allowance

  1068B - G3   In point 1068B - G2, remote area allowance means:

  (a)   an amount added to a person's social security pension or benefit by way of remote area allowance; or

  (b)   a remote area allowance payable under point SCH6 - G1 of the VEA.

FTB or regular care child must be present in Australia

  1068B - G4   Additional allowance is not payable for an FTB child, or a regular care child, unless the child is physically present in Australia.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child

  1068B - G5   If:

  (a)   an amount of remote area allowance is to be added to the person's rate; and

  (b)   the person's partner has an FTB child or a regular care child; and

  (c)   the person's partner is not receiving an additional amount of remote area allowance for the child;

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

  1068B - G6   If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note:   This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.