Commonwealth Numbered Acts

ASSISTANCE FOR CARERS LEGISLATION AMENDMENT ACT 1999 - SCHEDULE 1--Carer

Social Security Act 1991

1 Section 3 (index)

Omit:

care	18A(1)
care receiver	23(1)
guardian	18A(1)
profoundly disabled child	18A(1)
severely handicapped person	18A(1)

2 Section 3 (index)

Insert in their appropriate alphabetical position, determined on a letter-by-letter basis:

Adult Disability Assessment Tool	197(1)
care	197(1)
care receiver	197(1)
disabled adult	197(1)
guardian	197(1)
higher ADAT score adult	197(1)
lower ADAT score adult	197(1)
profoundly disabled child	197(1)

3 Section 18A

Repeal the section.

4 Subsection 23(1) (definition of care receiver )

Repeal the definition.

5 After section 38B

Insert:

SECT 38C Adult Disability Assessment Tool (1) The Secretary may, by determination in writing:

(a) devise a test for assessing the disability, emotional state, behaviour and special care needs of a person aged 16 or more; and

(b) provide a method for rating the person by giving him or her, on the basis of the results of the test, a score in accordance with a scale of the kind described in subsection (2).

(3) The determination is, in this Act, referred to as the Adult Disability Assessment Tool .

(4) The determination is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

6 Before Division 1 of Part 2.5

Insert:

Division 1A--Interpretation SECT 197 Definitions (1) In this Part, unless the contrary intention appears:

Adult Disability Assessment Tool has the meaning given by subsection 38C(3).

care includes attention and supervision.

care receiver has the meaning given by subsection 198(2).

disabled adult means a person aged 16 or more who:

(a) has a physical, intellectual or psychiatric disability; and

(b) is likely to suffer from that disability permanently or for an extended period.

higher ADAT score adult means a disabled adult who is a care receiver because paragraph 198(2)(a) applies.

lower ADAT score adult means a disabled adult who is a care receiver because paragraph 198(2)(d) applies.

profoundly disabled child has the meaning given by subsection (2).

(2) A child is a profoundly disabled child if:

(a) the child has either:

(i) a severe multiple disability; or

(ii) a severe medical condition; and

(b) the child, because of that disability or condition, needs continuous personal care for:

(i) 6 months or more; or

(ii) if the child's condition is terminal and the child's life expectancy is less than 6 months--the remainder of the child's life; and

(c) the child's disability or condition includes 3 or more of the following circumstances:

(i) the child receives all food and fluids by nasogastric or percutaneous enterogastric tube;

(ii) the child has a tracheostomy;

(iii) the child must use a ventilator for at least 8 hours each day;

(iv) the child:

(B) if under 3 years of age, is expected to have faecal incontinence day and night at the age of 3;

(v) the child:

(B) if under 2 years of age, is expected to be unable to stand without support at the age of 2;

(vi) a medical practitioner has certified that the child has a terminal condition for which palliative care has replaced active treatment;

(vii) the child:

(B) if under 6 months of age, is expected to require care as described in sub-subparagraph (A) at the age of 6 months.

(3) A reference in this Part to a parent includes a reference to a guardian .

7 Section 198

Repeal the section, substitute:

SECT 198 Qualification for carer payment (1) A person is qualified for a carer payment if the requirements of this section are met.

Note: Sections 198AA, 198AB and 198AC allow the person to qualify in certain short-term circumstances where the requirements would not be met.

(2) The person must personally provide constant care for:

(a) either:

(i) if the person is the only person providing the constant care--a disabled adult (the care receiver ) who has been assessed and rated, and given a score of at least 25, under the Adult Disability Assessment Tool; or

(ii) if not--a disabled adult (the care receiver ) who has been assessed and rated, and given a score of at least 80, under the Adult Disability Assessment Tool; or

(b) a profoundly disabled child (the care receiver ) aged under 16; or

(c) 2 or more disabled children (the care receivers ) aged under 16; or

(d) a disabled adult and a dependent child of the adult (the care receivers ), where:

(i) the disabled adult has been assessed and rated, and given a score of at least 20, under the Adult Disability Assessment Tool; and

(ii) the child is aged under 16; and

(iii) if the child is aged 6 or more--carer allowance is payable for the child.

Note 1: In a paragraph (c) case, subsection (8) contains an additional requirement about care that must be satisfied.

Note 2: In a paragraph (d) case, subsection (9) deems certain supervision to constitute care.

(3) The care must be provided in a private residence that is the home of the care receiver or care receivers.

Carer in Australia

(4) The person must be in Australia, unless:

(a) the person is in a country in which carer payment may be granted to the person under a scheduled international social security agreement; and

(b) the scheduled international social security agreement entered into force on or before 24 December 1992.

(5) The care receiver or care receivers must:

(a) if the care receiver is a profoundly disabled child or the care receivers are 2 or more disabled children--require constant care; and

(b) subject to subsection (6), be Australian residents; and

Note: For Australian resident see section 7.

(c) subject to subsection (7), pass the income test under section 198A; and

(d) subject to subsection (7), either:

(i) pass the assets test under section 198D; or

(ii) be the subject of a decision in force under subsection 198N(2), (3) or (4) that subparagraph (i) does not disqualify the person providing the constant care from carer payment.

(6) Paragraph (5)(b) does not apply if:

(a) the care receiver is the higher ADAT score adult mentioned in paragraph (2)(a); and

(b) the adult is receiving a social security pension; and

(c) carer payment may be granted to another person for the adult under a scheduled international social security agreement.

(7) Paragraphs (5)(c) and (d) do not apply if the care receiver is the higher ADAT score adult mentioned in paragraph (2)(a) and the adult:

(a) is receiving a social security pension or benefit, a service pension or income support supplement; or

(b) would be receiving a social security or service pension or income support supplement if he or she had been an Australian resident for a long enough period.

(8) If the care receivers are the 2 or more disabled children mentioned in paragraph (2)(c), the Secretary must be of the opinion that the children require a level of care that is at least equivalent to the level of care required by a profoundly disabled child.

Deemed personal care of disabled adult and dependent child

(9) For the purposes of paragraph (2)(d) and other references in this Part that relate to that paragraph, if a disabled adult is providing care of a dependent child of the adult at a particular time and another person is supervising the provision of that care at that time, the other person is taken personally to provide care of the adult and child at that time.

SECT 198AA Qualification for carer payment--hospitalisation (1) If:

(a) a person (the carer ) is participating in the care of a disabled adult, a profoundly disabled child, a disabled child, or a dependent child of a disabled adult, (the hospitalised person ) in hospital; and

(b) it is reasonable to assume that, if the hospitalised person were not in hospital, the carer would qualify for carer payment for the hospitalised person or for the hospitalised person and another person or persons; and

(c) either:

(i) the hospitalised person is terminally ill; or

(ii) it is reasonable to expect that he or she will reside in his or her private home upon leaving hospital;

Limit on qualification under subsection (1)

(2) However, the period, or the sum of the periods, for which the person can be qualified under subsection (1) is 63 days in any calendar year.

SECT 198AB Effect of certain absences from Australia on carer payment Continuation of carer payment

(1) Subject to subsection (2), if:

(a) a person is qualified for carer payment because he or she is personally providing constant care for a care receiver or care receivers; and

(b) the care receiver or care receivers are temporarily absent from Australia for a period; and

(c) the person accompanies the care receiver or care receivers during their absence;

(d) the person is not in Australia; or

(e) constant care of the care receiver or care receivers is not provided in a private residence that is the home of the care receiver or care receivers.

(2) If, during a calendar year, the person has accompanied the care receiver or care receivers outside Australia on more than one occasion, the person ceases to be qualified for carer payment under subsection (1) in that calendar year after he or she has, during that calendar year, qualified for carer payment under that subsection for periods that together add up to 3 months.

SECT 198AC Effect of cessation of care etc. on carer payment Continuation of payment where temporary cessation of care

(1) Subject to subsection (3), if:

(a) a person is qualified for carer payment because the person is personally providing constant care for a care receiver or care receivers; and

(b) the person temporarily ceases to provide that care for the care receiver or care receivers;

(c) that cessation; or

(d) the person not being in Australia during that cessation.

(2) Subject to subsection (3), if:

(a) a person is qualified for carer payment under section 198AA because the person is participating in the care of an adult or child in hospital; and

(b) apart from this subsection, the person would later cease to be qualified for carer payment under that section; and

(c) the person would not cease to be qualified for carer payment if the person were providing constant care in Australia for the adult or child, or the adult or child and another person;

(d) the lack of provision of the constant care; or

(e) the person not being in Australia while that lack occurs.

(3) However, the period, or the sum of the periods, for which subsection (1) or (2), or a combination of those subsections, can apply is:

(a) 63 days in any calendar year; or

(b) another period that the Secretary, for any special reason in the particular case, decides to be appropriate.

(4) If:

(a) a person is qualified for carer payment because the person is personally providing constant care for a care receiver or care receivers; and

(b) the person temporarily ceases to provide that care in order to undertake training, education, unpaid voluntary work or paid employment; and

(c) the cessation does not exceed 20 hours per week;

Cessation of participation in hospital care in order to undertake training etc.

(5) If:

(a) a person is qualified for carer payment because the person is participating in the care of another person in hospital; and

(b) the person temporarily ceases to participate in the care in order to undertake training, education, unpaid voluntary work or paid employment; and

(c) the cessation does not exceed 20 hours per week;

8 Section 198A

Repeal the section, substitute:

SECT 198A Income test Passing the income test

(1) A care receiver or care receivers pass the income test if the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, worked out under section 198B for the appropriate tax year determined under section 198C is not more than $66,403 (the income ceiling ).

Income test failed where no taxable income for appropriate tax year

(2) A care receiver or care receivers do not pass the income test if any person (whether or not a care receiver) whose taxable income is required to be taken into account in applying section 198B does not have an assessed taxable income or an accepted estimated taxable income for the appropriate tax year.

9 Subsection 198B(1)

After "(1B),", insert "(1BA),".

10 Subsections 198B(1A) and (1B)

Repeal the subsections, substitute:

Taxable income of higher ADAT score adult

(1A) If a care receiver who is a higher ADAT score adult is a member of a couple, the care receiver's taxable income includes the taxable income of the care receiver's partner.

Taxable income of profoundly disabled child or disabled child

(1B) If a care receiver is a profoundly disabled child, or a disabled child, who lives with his or her parent, the taxable income of the care receiver includes the taxable income of the following people:

(a) the parent;

(b) if the parent is a member of a couple--the parent's partner;

(c) if the parent or the partner has one or more FA children--the FA children (other than any who are care receivers).

Taxable income of lower ADAT score adult

(1BA) If a care receiver is a lower ADAT score adult, the care receiver's taxable income includes the taxable income of the following people:

(a) if the adult is a member of a couple--the adult's partner and any FA child (except the other care receiver) of the adult or of the partner;

(b) in any other case--any FA child (except the other care receiver) of the adult.

Repeal the subsection, substitute:

(2) If:

(a) carer payment would not be payable to a person because the care receiver or care receivers would not pass the income test under subsection 198A(1) apart from this subsection; and

(b) the Secretary is given a written request to treat the care receiver or care receivers as if the tax year in which the request is given were the appropriate tax year; and

(c) the request is given to the Secretary by the person, any care receiver who is 16 or over or a parent of any care receiver who is under 16; and

(d) the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, for the tax year in which the request is made is likely to be less than the income ceiling;

Note 1: For taxable income see section 198B.

Note 2: For income ceiling see subsection 198A(1).

Omit "care recipient's".

13 Paragraph 198C(3)(e)

Repeal the paragraph, substitute:

(e) the care receiver's taxable income, or the sum of the taxable incomes of the care receivers, for the current tax year is less than the care receiver's taxable income, or the sum of the taxable incomes of the care receivers, for the base tax year;

Repeal the paragraphs, substitute:

(a) a notifiable event occurs in relation to a care receiver or any of 2 or more care receivers; and

(b) the care receiver's taxable income, or the sum of the taxable incomes of the care receivers, for the tax year in which the notifiable event occurs exceeds the income ceiling;

Omit "subsections 198B(1A) and (1B)", substitute "section 198B".

16 Subsection 198C(4) (note 4)

Omit "person mentioned in the subsection" (wherever occurring), substitute "care receiver or care receivers".

17 Paragraphs 198C(5)(a), (b) and (c)

Repeal the paragraphs, substitute:

(a) a notifiable event occurs in relation to a care receiver or any of 2 or more care receivers; and

(b) the care receiver's taxable income, or the sum of the taxable incomes of the care receivers, for the tax year in which the notifiable event occurs (the event tax year ) does not exceed the income ceiling; and

(c) the care receiver's taxable income, or the sum of the taxable incomes of the care receivers, for the tax year that follows the event tax year is likely to exceed the income ceiling;

Omit "subsections 198B(1A) and (1B)", substitute "section 198B".

19 Subsection 198D(1)

Omit "severely handicapped person", substitute "higher ADAT score adult".

Note: The heading to subsection 198D(1) is altered by omitting " Severely handicapped person " and substituting " Higher ADAT score adult ".

Omit "FP children" (wherever occurring), substitute "FA children".

21 Subsection 198D(1A)

Omit "$406,000", substitute "$410,000".

22 Subsection 198D(1A) (note)

Repeal the note.

23 Subsection 198D(1B)

After "Division", insert "(other than subsection (1A))".

24 After subsection 198D(1B)

Insert:

Disabled children passing the assets test

(1C) Care receivers who are 2 or more disabled children pass the assets test if the total value of the following assets is less than $410,000:

(a) the assets of all of the disabled children;

(b) if any of the disabled children lives with his or her parent:

(i) the assets of the parent;

(ii) if the parent is a member of a couple--the assets of the parent's partner;

(iii) if the parent or the partner has one or more FA children--the assets of those FA children.

(1D) For the purposes of this Division (other than subsection (1C)), if any of the disabled children lives with his or her parent, the disabled child's assets are taken to include the assets listed in paragraph (1C)(b) in relation to the child. However, assets of the same person are not to be included in the assets of more than one child.

Lower ADAT score adult and dependent child passing the assets test

(1E) Care receivers who are a lower ADAT score adult and a dependent child pass the assets test if the total value of the assets of the following people is less than $410,000:

(a) the adult;

(b) the dependent child;

(c) if the adult is a member of a couple--the adult's partner;

(d) if the adult or the partner has one or more FA children--the FA children.

Repeal the subsections.

26 Section 198E

Omit "198D(1) or (1A)", substitute "198D(1), (1A), (1C) or (1E)".

27 Subsection 198F(1A)

After "profoundly disabled child", insert ", a disabled child or a dependent child".

28 Subparagraphs 198F(1A)(a)(i), (ii) and (iii)

Omit "disabled".

29 Subparagraph 198F(1A)(b)(iii)

Omit "disabled".

30 Subsection 198F(1A) (note)

Repeal the note, substitute:

Note: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be the assets of the child.

Omit "severely handicapped person", substitute "higher ADAT score adult".

Note: The heading to section 198H is altered by omitting " severely handicapped persons " and substituting " higher ADAT score adults ".

Add "or care receivers each of whom is a disabled child".

Note: The heading to section 198HA is altered by adding at the end " or disabled children ".

Omit "disabled" (wherever occurring).

34 Subsection 198HA(2) (note 3)

Repeal the note, substitute:

Note 3: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

Add:

(3) In this section:

pre-pension year , in relation to a carer, means:

(a) the 12 months ending on the carer's provisional commencement day for carer payment; or

(b) any preceding period of 12 months.

Insert:

SECT 198HB Disposal of assets in pre-pension years--lower ADAT score adult and dependent child Application

(1) This section applies in determining whether a person (the carer ) qualifies for a carer payment when claiming it for caring for care receivers who are a lower ADAT score adult and a dependent child.

Increase in value of assets of lower ADAT score adult

(2) Subject to subsection (3), if:

(a) there has been a disposal, during a pre-pension year of the carer, of an asset of any of the following persons (a qualifying person ):

(i) the lower ADAT score adult;

(ii) the dependent child;

(iii) if the adult is a member of a couple--the adult's partner and any FA child of the adult or of the partner;

(iv) if the adult is not a member of a couple--any FA child of the adult; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets of any of the qualifying persons during the pre-pension year, exceeds $10,000;

(c) the amount of the first-mentioned disposition;

(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 of the qualifying persons during that pre-pension year exceeds $10,000.

Note 1: For disposition of assets see section 198F.

Note 2: For amount of disposition see section 198G.

(3) If:

(a) an amount is included under subsection (2) in the value of the assets of the lower ADAT score adult because of the disposition of an asset of any of the qualifying persons; and

(b) if the lower ADAT score adult is a member of a couple--either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FA children dies; and

(c) if the lower ADAT score adult is not a member of a couple--any of the FA children dies;

(d) in a subparagraph (b)(i) case--the partner and any FA child of the partner and any disposition of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case--the FA child and any disposition of his or her assets.

(4) In this section:

pre-pension year , in relation to a carer, means:

(a) the 12 months ending on the carer's provisional commencing day for the carer payment; or

(b) any preceding period of 12 months.

Omit "severely handicapped person", substitute "higher ADAT score adult".

Note: The heading to section 198J is altered by omitting " severely handicapped persons " and substituting " higher ADAT score adults ".

After "child", insert "or care receivers each of whom is a disabled child".

Note: The heading to section 198JA is altered by adding at the end " or disabled children ".

Omit "disabled" (wherever occurring).

40 Subsection 198JA(2) (note 3)

Repeal the note, substitute:

Note 3: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

Add:

(3) In this section:

pension year , in relation to a carer, means:

(a) the 12 months starting on the day the carer payment first became payable to the carer; or

(b) any preceding or following period of 12 months.

Insert:

SECT 198JB Disposal of assets--lower ADAT score adult and dependent child Application

(1) This section applies in determining whether a person (the carer ) who has been receiving a carer payment for caring for care receivers who are a lower ADAT score adult and a dependent child continues to qualify for the pension.

Increase in value of assets of lower ADAT score adult

(2) Subject to subsection (3), if:

(a) there has been a disposal, during a pension year of the carer, of an asset of any of the following persons (a qualifying person ):

(i) the lower ADAT score adult;

(ii) the dependent child;

(iii) if the adult is a member of a couple--the adult's partner and any FA child of the adult or of the partner;

(iv) if the adult is not a member of a couple--any FA child of the adult; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets of any of the qualifying persons during the pension year exceeds $10,000;

(c) the amount of the first-mentioned disposition;

(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 of the qualifying persons during that pension year exceeds $10,000.

Note 1: For disposition of assets see section 198F.

Note 2: For amount of disposition see section 198G.

(3) If:

(a) an amount is included under subsection (2) in the value of the assets of the lower ADAT score adult because of the disposition of an asset of any of the qualifying persons; and

(b) if the lower ADAT score adult is a member of a couple--either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FA children dies; and

(c) if the lower ADAT score adult is not a member of a couple--any of the FA children dies;

(d) in a subparagraph (b)(i) case--the partner and any FA child of the partner and any disposition of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case--the FA child and any disposition of his or her assets.

(4) In this section:

pension year , in relation to a carer, means:

(a) the 12 months starting on the day the carer payment first became payable to the carer; or

(b) any preceding or following period of 12 months.

Omit "severely handicapped person", substitute "higher ADAT score adult".

Note: The heading to section 198K is altered by omitting " severely handicapped persons " and substituting " higher ADAT score adults ".

Omit "severely handicapped person", substitute "higher ADAT score adult".

Note: The heading to section 198L is altered by omitting " severely handicapped persons " and substituting " higher ADAT score adults ".

After "care receiver", insert "or one of 2 or more care receivers".

46 Section 198MA

After "profoundly disabled child", insert ", a disabled child or a dependent child".

47 Paragraph 198MA(a)

Repeal the paragraph, substitute:

(a) more than 5 years before the carer became qualified for a carer payment because:

(i) the carer was providing care for the profoundly disabled child, and the child was a care receiver; or

(ii) the carer was providing care for the disabled child, and the child and one or more other disabled children were care receivers; or

(iii) the carer was providing care for the dependent child and a lower ADAT score adult and the dependent child and adult were care receivers; or

Omit "disabled".

49 Section 198MA (note)

Repeal the note, substitute:

Note: Subsections 198D(1B) and (1D) provide that if the profoundly disabled child or the disabled child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be the assets of the child.

Omit "198(1B)(f)(i)", substitute "198(5)(d)(i)".

51 Paragraph 198N(1)(a)

Omit "severely handicapped person", substitute "higher ADAT score adult".

Note: The heading to subsection 198N(1) is altered by omitting " severely handicapped person " and substituting " higher ADAT score adult ".

Repeal the paragraph, substitute:

(b) the higher ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the adult not be disqualified by that subparagraph; and

Omit "handicapped person's", substitute "higher ADAT score adult's".

54 Subsection 198N(1)

Omit "(5), (6) and (7)", substitute "(5) and (6)".

55 Subsections 198N(1A), (2), (3) and (4)

Repeal the subsections, substitute:

Application by parent or carer of profoundly disabled child or disabled child

(1A) If:

(a) subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for a care receiver who is a profoundly disabled child or care receivers each of whom is a disabled child; and

(b) the parent or the carer of the profoundly disabled child or of any of the disabled children lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

(c) the request includes a written estimate of the taxable income of the profoundly disabled child, or written estimates of the taxable incomes of the disabled children, for the current financial year under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4);

Application by lower ADAT score adult

(1B) If:

(a) subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for care receivers who are a lower ADAT score adult and a dependent child; and

(b) the lower ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

(c) the request includes written estimates of the taxable incomes of the lower ADAT score adult and the dependent child under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4);

Failing assets test but passing special income test

(2) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if:

(a) the value of the assets of the care receiver or the sum of the values of the assets of the care receivers is more than $410,000 but not more than $608,500; and

(b) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

(c) the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is less than the threshold amount worked out under subsection (6).

Note 1: The amounts specified in paragraph (2)(a) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

(3) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $410,000 and not more than $608,500 and:

(a) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is equal to or greater than the liquid assets limit; or

(b) the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is equal to or more than the threshold amount worked out under subsection (6).

Note 1: The amounts specified in subsection (3) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

(4) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if:

(a) the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $608,500; and

(b) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

(c) the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is less than the threshold amount worked out under subsection (6).

Note 1: The amount specified in paragraph (4)(a) is indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

Omit "severely handicapped person", substitute "higher ADAT score adult".

57 Subparagraph 198N(5)(a)(iii)

Omit "FP children" (wherever occurring), substitute "FA children".

58 Paragraphs 198N(5)(aa), (b) and (c)

Repeal the paragraphs, substitute:

(aa) the value of the liquid assets of a care receiver who is a profoundly disabled child or a disabled child is the sum of the values of the liquid assets of the following people:

(i) the care receiver;

(ii) if the care receiver lives with his or her parent--the parent;

(iii) if the parent with whom the care receiver lives is a member of a couple--the parent's partner;

(iv) if the parent with whom the care receiver lives or the parent's partner has one or more FA children--those FA children.

However, if the care receiver is one of 2 or more care receivers each of whom is a disabled child, liquid assets of the same person are not to be taken into account in respect of any of the other care receivers; and

(ab) the value of the liquid assets of a care receiver who is a lower ADAT score adult is the sum of the values of the liquid assets of the following people:

(i) the care receiver;

(ii) if the care receiver is a member of a couple--the care receiver's partner and any FA child (except the dependent child who is the other care receiver) of the care receiver or the care receiver's partner;

(iii) if the care receiver is not a member of a couple--any FA child (except the dependent child who is the other care receiver); and

Note: The value of the liquid assets of the dependent child who is the other care receiver is not adjusted by adding any other person's liquid assets.

(b) the liquid assets limit is $10,000 if the care receiver or any of the care receivers is a member of a couple, or $6,000 if not; and

(c) the taxable income of a care receiver or of any of 2 or more care receivers for a particular financial year is the taxable income of the care receiver for that year as worked out under section 198B.

Repeal the notes, substitute:

Note 2: Subsections 198D(1B) and (1D) provide that if a profoundly disabled or a disabled child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

Omit "severely handicapped person", substitute "higher ADAT score adult".

61 Subsection 198N(6) (at the end of the definition of FPC )

Add:

; or (d) in the case of care receivers who are 2 or more disabled children:

(i) if any of the children lives with his or her parent--the sum of the number of FA children of each such parent or of the partner (if the parent has a partner) of each such parent; or

(ii) in any other case--0; or

(e) in the case of care receivers who are a lower ADAT score adult and a dependent child--the number of FA children of the care receiver or the care receiver's partner (if the care receiver has a partner).

Omit "Note 1", substitute "Note".

63 Subsection 198N(6) (note 2)

Repeal the note.

64 Subsection 198N(7)

Repeal the subsection.

65 Subsection 198P(1)

Repeal the subsection, substitute:

Date of effect

(1) If the Secretary decides under subsection 198N(2), (3) or (4) that subparagraph 198(5)(d)(i) does not disqualify a person from carer payment, the day on which the decision takes effect is worked out under this section.

66 Paragraph 198P(3)(a)

After "care receiver", insert "or care receivers".

67 Subparagraph 198P(3)(b)(i)

Repeal the subparagraph, substitute:

(i) in the case of a care receiver who is a higher ADAT score adult--to the adult or the person caring for the adult; or

Omit "and".

69 At the end of paragraph 198P(3)(b)

Add:

or (iii) in the case of care receivers who are 2 or more disabled children--to the carer of the children or to the parent of any of the children; or

(iv) in the case of care receivers who are a lower ADAT score adult and a dependent child--to the lower ADAT score adult or the person caring for that adult; and

After "care receiver", insert "or care receivers".

71 Subsection 198P(3) (note)

Repeal the note.

72 Paragraph 198P(4)(a)

After "care receiver", insert "or care receivers".

73 Subparagraph 198P(4)(b)(i)

Repeal the subparagraph, substitute:

(i) in the case of a care receiver who is a higher ADAT score adult--to the adult or the person caring for the adult; or

Omit "and".

75 At the end of paragraph 198P(4)(b)

Add:

or (iii) in the case of care receivers who are 2 or more disabled children--to the carer of the children or to the parent of any of the children; or

(iv) in the case of care receivers who are a lower ADAT score adult and a dependent child--to the lower ADAT score adult or the person caring for that adult; and

After "care receiver", insert "or care receivers".

77 Subsection 198P(4) (note)

Repeal the note.

78 Paragraphs 198P(5)(a) and (d)

After "care receiver", insert "or care receivers".

79 Section 198Q

Repeal the section, substitute:

SECT 198Q Date of effect of adverse decision under section 198N If the Secretary decides under subsection 198N(2), (3) or (4) that subparagraph 198(5)(d)(i) disqualifies a person from carer payment, the decision takes effect:

(a) on the day on which the request under section 198N in respect of the care receiver or care receivers was lodged with the Department; or

(b) if the request was lodged after the Secretary rejected a claim for carer payment by a person caring for the care receiver or care receivers--on the day on which the decision to reject the claim took effect.

Repeal the subsection, substitute:

(1A) If a person is being paid a carer payment because he or she is providing constant care for a care receiver (other than one to whom subsection 198(7) applies) or care receivers, the Secretary may give a notice to:

(a) any care receiver who is 16 or more; or

(b) a parent of any care receiver who is under 16;

(c) a specified event or change of circumstances occurs; or

(d) he or she becomes aware that a specified event or change of circumstances is likely to occur.

Repeal the subsection, substitute:

(1) This section applies if:

(a) carer payment is payable to a person who has ordinarily been providing constant care for a care receiver or care receivers; and

(b) the person ceases to be qualified for the payment because he or she ceases to provide constant care for the care receiver or any of the care receivers as a result of the care receiver being admitted permanently to an institution where care is provided for the care receiver.

Omit "carer" (second and third occurring), substitute "person".

83 Paragraph 226(a)

Repeal the paragraph, substitute:

(a) a person is given a notice under subsection 222(1) or (1A); and

Repeal the note.

85 Paragraph 227(a)

Repeal the paragraph, substitute:

(a) a person is given a notice under subsection 222(1) or (1A); and

Repeal the note.

87 Subsections 234(8) to (11)

Repeal the subsections, substitute:

(8) If:

(a) the Secretary makes a determination (the earlier determination ) that a person (the carer ) is entitled to carer payment because the carer is providing care for a care receiver or care receivers; and

(b) the determination is based on an assessment of the taxable income of the care receiver, or any of the care receivers, for a tax year; and

(c) the assessment is subsequently amended by the Commissioner of Taxation, a tribunal or a court; and

(d) as a result of the amendment of the assessment, the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, is more than the income ceiling (under section 198A); and

(e) the Secretary makes a determination under section 231 cancelling or suspending the pension;

(9) If:

(a) the Secretary makes a determination (the earlier determination ) that a person (the carer ) is entitled to carer payment because the carer is providing care for a care receiver or care receivers; and

(b) in making the determination, the Secretary had regard to the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, for a tax year; and

(c) the taxable income of the care receiver or any of the care receivers is or includes an amount estimated by:

(i) in the case of a care receiver who is a higher ADAT score adult--the care receiver or the care receiver's partner; or

(ii) in the case of a care receiver who is a profoundly disabled child or a disabled child--the parent of the care receiver, the parent's partner (if the parent is a member of a couple), or the carer; or

(iii) in the case of a care receiver who is a lower ADAT score adult--the care receiver or the care receiver's partner; or

(iv) in the case of a care receiver who is a dependent child of a lower ADAT score adult--the carer or the care receiver's parent; and

(d) the Commissioner of Taxation subsequently makes an assessment of that taxable income; and

(e) as a result of the assessment, the taxable income of the care receiver or the sum of the taxable incomes of the care receivers is more than the income ceiling (under section 198A); and

(f) the Secretary makes a determination under section 231 cancelling or suspending the carer payment;

(10) If:

(a) on the basis of the taxable income for a tax year of a care receiver who is a higher ADAT score adult, the Secretary makes a determination that a person (the carer ) is entitled to carer payment because the carer is providing care for the care receiver; and

(b) the care receiver's taxable income for a later tax year exceeds the income ceiling (under section 198A); and

(c) the Secretary makes a determination under section 231 cancelling or suspending the carer's carer payment;

(d) if the Secretary made the determination under section 231 after the carer or care receiver informed the Department that the care receiver's taxable income exceeded the income ceiling--on the day on which the carer or care receiver informed the Department; or

(e) if the Department has not been informed by the carer or the care receiver that the care receiver's taxable income exceeded the income ceiling when the Secretary made the determination under section 231--on the day on which the care receiver's income exceeded the income ceiling.

(a) on the basis of the taxable income for a tax year of a care receiver who is a profoundly disabled child, the Secretary makes a determination that a person (the carer ) is entitled to carer payment because the carer is providing care for the care receiver; and

(b) the care receiver's taxable income for a later tax year exceeds the income ceiling (under section 198A); and

(c) the Secretary makes a determination under section 231 cancelling or suspending the carer's carer payment;

(d) if the Secretary made the determination under section 231 after the parent or carer of the disabled child informed the Department that the care receiver's taxable income exceeded the income ceiling--on the day on which the parent or carer informed the Department; or

(e) if the Department has not been informed by the parent or carer that the care receiver's taxable income exceeded the income ceiling when the Secretary made the determination under section 231--on the day on which the care receiver's income exceeded the income ceiling.

(a) on the basis of the sum of the taxable incomes for a tax year of care receivers who are disabled children, the Secretary makes a determination that a person (the carer ) is entitled to carer payment because the carer is providing care to the care receivers; and

(b) the sum of the taxable incomes of the care receivers for a later tax year exceeds the income ceiling (under section 198A); and

(c) the Secretary makes a determination under section 231 cancelling or suspending the carer's carer payment;

(d) if the Secretary made the determination under section 231 after the parent or carer of any of the disabled children informed the Department that the sum of the taxable incomes exceeded the income ceiling--on the day on which the parent or carer informed the Department; or

(e) if the Department has not been informed by the parent or carer that the sum of the taxable incomes exceeded the income ceiling when the Secretary made the determination under section 231--on the day on which the sum of the taxable incomes of the care receivers exceeded the income ceiling.

(a) on the basis of the sum of the taxable incomes for a tax year of care receivers who are a lower ADAT score adult and a dependent child, the Secretary makes a determination that a person (the carer ) is entitled to carer payment because the carer is providing care to the care receivers; and

(b) the sum of the taxable incomes of the care receivers for a later tax year exceeds the income ceiling (under section 198A); and

(c) the Secretary makes a determination under section 231 cancelling or suspending the carer's carer payment;

(d) if the Secretary made the determination under section 231 after the carer, the lower ADAT score adult or a parent of the dependent child informed the Department that the sum of the taxable incomes exceeded the income ceiling--on the day on which the Department was so informed; or

(e) if the Department has not been informed by the carer, the lower ADAT score adult or a parent of the dependent child that the sum of the taxable incomes exceeded the income ceiling when the Secretary made the determination under section 231--on the day on which the sum of the taxable incomes of the care receivers exceeded the income ceiling.

(a) on the day on which it is made; or

(b) if a later day is specified in the determination, on that day.

Repeal the subsection, substitute:

(1) If:

(a) a person is receiving carer payment because he or she ordinarily cares for a care receiver or care receivers; and

(b) the person is caring for the care receiver or care receivers or has temporarily ceased to care for the care receiver or care receivers; and

(c) the care receiver or any of the care receivers dies; and

(d) the care receiver who dies is not the person's partner; and

(e) because of the death, the person would, apart from this subsection, cease to be qualified for the carer payment;

(1A) If:

(a) a person (the carer ) is receiving a carer payment only because section 198AA or subsection 198AC(2) applies; and

(b) the death occurs of:

(i) the person or any of the persons for whom the person would qualify for carer payment as mentioned in paragraph 198AA(1)(b); or

(ii) the person or any of the persons for whom the constant care mentioned in paragraph 198AC(2)(c) is assumed to be provided; and

(c) the person who dies is not the carer's partner;

89 Subsection 236A(1)

Repeal the subsection, substitute:

(1) A lump sum is payable to a person under this section if:

(a) the person remains qualified for carer payment because subsection 235(1) or (1A) applies; and

(b) immediately before the death of the person mentioned in that subsection, the person who died was not a member of a couple, or was a member of a couple and his or her partner:

(i) was not receiving a social security pension; and

(ii) was not receiving a social security benefit; and

(iii) was not receiving a service pension or income support supplement.

Note: If the partner of the person who died was receiving a social security pension or benefit or a service pension, the partner would receive bereavement payments in respect of the death of the person.

90 Subsection 236A(3) (definition of partnered MBR )

Omit "being cared for".

91 Subsection 236A(4) (definition of carer's current instalment )

Omit "cared for".

92 After section 236A

Insert:

SECT 236B Subdivision not to apply in certain cases involving simultaneous death If:

(a) a lower ADAT score adult and a dependent child of the adult die at the same time; and

(b) apart from this subsection and section 243, because of those deaths, a person would continue to qualify for carer payment under section 235 and would be qualified for payments under Subdivision B; and

(c) the sum of the carer payments for which the person would continue to qualify under section 235 and any lump sum payable to the person under section 236A is less than the sum of the amounts payable to the person under Subdivision B;

93 Subdivision B of Division 9 of Part 2.5 (heading)

Repeal the heading, substitute:

Subdivision B--Death of partner 94 Paragraph 237(1)(d)

Repeal the paragraph, substitute:

(d) immediately before the partner died, the partner:

(i) was receiving a social security pension; or

(ii) was receiving a service pension or income support supplement; or

(iii) was a long-term social security recipient; and

Omit "pension" (first occurring), substitute "person's".

96 After subsection 237(1A)

Insert:

(1B) Subsection (1) or (1A) does not apply if:

(a) the person is receiving carer payment under section 235 because of the death of a care receiver who is a dependent child of a lower ADAT score adult; and

(b) the person's partner is the lower ADAT score adult.

Add:

(5) For the purposes of this section, a person is a long-term social security recipient if:

(a) the person is receiving a social security benefit; and

(b) in respect of the previous 12 months, the person:

(i) was receiving a social security pension; or

(ii) was receiving a social security benefit; or

(iii) was receiving a youth training allowance; or

(iv) was receiving a service pension or income support supplement.

(a) the person was receiving one or a combination of the payments referred to in that paragraph for a continuous period of 12 months; or

(b) the person was receiving one or a combination of the payments referred to in that paragraph for 46 weeks of the previous 52.

After "social security pension", insert "or social security benefit".

99 At the end of subsection 238(1)

Add:

Note: For bereavement rate continuation period see section 21 .

Omit " pensioner couple ".

101 Section 239 (Lump Sum Calculator, step 5)

Omit "pensioner couple".

102 Section 241 (Lump Sum Calculator, step 3)

Omit " pensioner couple ".

103 Section 241 (Lump Sum Calculator, step 5)

Omit "pensioner couple".

104 Section 241 (Lump Sum Calculator, step 7)

Omit "Step 4", substitute "Step 6".

105 After section 242

Insert:

SECT 243 Subdivision not to apply in certain cases involving simultaneous death If:

(a) a lower ADAT score adult and a dependent child of the adult die at the same time; and

(b) apart from this subsection and section 236B, because of those deaths a person would be qualified for payments under this Subdivision and would continue to qualify for carer payment under section 235; and

(c) the sum of the amounts payable to the person under this Subdivision is less than or equal to the sum of the carer payments for which the person would continue to qualify under section 235 and any lump sum payable to the person under section 236A;

106 Subsection 1118(1)

Omit "sections 198J and 198L", substitute "sections 198H, 198HA, 198HB, 198J, 198JA, 198JB, 198K and 198L".

107 Subsection 1118A(2)

Omit "198J or 198L", substitute "198H, 198HA, 198HB, 198J, 198JA, 198JB, 198K or 198L".

108 Subsection 1118B(1)

Omit "198J or 198L", substitute "198H, 198HA, 198HB, 198J, 198JA, 198JB, 198K or 198L".

109 Paragraph 1150(3)(e)

Omit "section 198J", substitute "sections 198H, 198HA, 198HB, 198J, 198JA and 198JB".

110 Paragraph 1151(3)(e)

Omit "section 198L", substitute "sections 198K and 198L".

111 Paragraph 1152(3)(e)

Omit "section 198L", substitute "sections 198K and 198L".

112 Subparagraph 1152(5)(e)(iii)

Omit "section 198L", substitute "sections 198K and 198L".

113 Subparagraph 1153(3)(c)(iii)

Omit "section 198L", substitute "sections 198K and 198L".

114 Paragraph 1154(4)(e)

Omit "section 198L", substitute "sections 198K and 198L".

115 Section 1190 (table item 27A)

Omit "[Subsections 198D(1) and (1A)]", substitute "[Subsections 198D(1), (1A), (1C) and (1E)]".

116 Paragraph 1223(1B)(a)

After "care receiver", insert "or care receivers (as defined in subsection 197(1))".

117 Subparagraphs 1223(1B)(b)(i) and (ii)

Omit "care receiver's income", substitute "income of the care receiver or any of the care receivers".

118 Subparagraph 1223(1B)(b)(iii)

Repeal the subparagraph, substitute:

(iii) because of the occurrence, or the likelihood of the occurrence, of an event in respect of which the Department had not been informed in accordance with a requirement in a notice under subsection 222(1A);

Omit "care receiver's".

120 Paragraph 1223(1C)(b)

Omit "of the care receiver's income".

121 Paragraph 1223(1C)(c)

Repeal the paragraph, substitute:

(c) the Department should have been informed in respect of the event in accordance with the requirement in the notice.

Part 2--Technical amendments of the income tax law commencing on 1 July 1997

Income Tax Assessment Act 1997

122 Section 52-10 (table items 4.1, 4.2, 4.3 and 4.4)

Repeal the items, substitute:

4.1	Carer payment : you are pension age or over	Supplementary amount is exempt (see section 52-15)	Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
4.2	Carer payment : the severely handicapped person is pension age or over	Supplementary amount is exempt (see section 52-15)	Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
4.3	Carer payment : both you and the severely handicapped person are under pension age	Exempt	Exempt	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
4.4	Carer payment : you are under pension age and the severely handicapped person has died	Exempt	Exempt	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)

123 Section 52-15 (table item 1)

Omit "Carer pension", substitute "Carer payment".

124 Subsection 52-25(1) (table)

Omit "Carer pension", substitute "Carer payment".

125 Section 52-40 (table item 4)

Repeal the item, substitute:

4

Carer payment

Part 2.5

Sections 236A, 238, 241 and 246

Section 239

Income Tax Assessment Act 1936

126 Paragraph 202EA(5)(d)

Omit "carer pension", substitute "carer payment".

127 Subparagraph 202EB(5)(a)(iv)

Omit "carer pension", substitute "carer payment".

128 Application

The amendments made by this Part apply to assessments for the 1997-98 income year and later years.

Part 3--Amendments of the income tax law relating to carer payment for disabled children

Income Tax Assessment Act 1997

129 Section 52-10 (table items 4.2, 4.3 and 4.4)

Repeal the items, substitute:

4.2	Carer payment : the person being constantly cared for is a severely handicapped person who is pension age or over	Supplementary amount is exempt (see section 52-15)	Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
4.3	Carer payment : you are under pension age and: (a) the person being constantly cared for is a severely handicapped person who is under pension age; or (b) the person being constantly cared for is a profoundly disabled child; or (c) the persons being constantly cared for are 2 or more disabled children	Exempt	Exempt	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
4.4	Carer payment : you are under pension age and the severely handicapped person, the profoundly disabled child or any of the 2 or more disabled children constantly being cared for has died	Exempt	Exempt	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)

130 Subsection 52-35(1)

After "severely handicapped person", insert ", profoundly disabled child or any of the 2 or more disabled children".

131 Subsection 52-35(3) (paragraphs (a) and (b) of step 1 of the method statement)

After "severely handicapped person", insert ", profoundly disabled child or disabled child".

132 Subsection 52-35(3) (step 3 of the method statement)

After "severely handicapped person", insert ", profoundly disabled child or disabled child".

133 Application

The amendments made by this Part apply to assessments for the 1998-99 income year.

Part 4--Amendments of the income tax law relating to carer payment for disabled adult and dependent child

Income Tax Assessment Act 1997

134 Section 52-10 (table items 4.2, 4.3 and 4.4)

Repeal the items, substitute:

4.2	Carer payment: the care receiver or any of the care receivers is pension age or over	Supplementary amount is exempt (see section 52-15)	Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20)	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
4.3	Carer payment: both you and the care receiver or all of the care receivers are under pension age	Exempt	Exempt	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
4.4	Carer payment: you are under pension age and any of the care receivers has died	Exempt	Exempt	Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35)	Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)

135 Subsection 52-35(1)

Repeal the subsection, substitute:

(1) This section applies if a lump sum payment becomes due to you under section 236A of the Social Security Act 1991 because of the death of the care receiver or any of the care receivers.

136 Subsection 52-35(3)

Repeal the subsection, substitute:

(3) This is how to work out the tax-free amount :

Method statement

Step 1. Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if:

(a) the care receiver had not died; and

(b) the care receiver had been under pension age.

Step 2. Work out how much of those payments would have been exempt in those circumstances.

Step 3. Work out the payments under the Social Security Act 1991 that would have become due to the care receiver during the bereavement lump sum period if the care receiver had not died, even if the payments would not have been exempt.

Step 4. Total the payments worked out at Steps 2 and 3: the result is the tax-free amount .

137 Application

The amendments made by this Part apply to assessments for the 1999-2000 income year and later years.