CLEAN ENERGY (HOUSEHOLD ASSISTANCE AMENDMENTS) ACT 2011 (NO. 141, 2011) - SCHEDULE 1 Clean energy payments under the social security law

Part 2.18A -- Clean energy payments

1 After Part 2.18

Insert:

Division 1 -- Clean energy advances

Subdivision A -- Qualifying for clean energy advances

914 Recipients of certain social security payments

Qualification for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May 2012 and ending on 30 June 2012, determine that a person is qualified for a clean energy advance if, on that day:

(a) the person receives one of the social security payments set out in subsection (4); and

(b) the person's rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

Qualification for days 1 July 2012 to 19 March 2013

(2) The Secretary may determine that a person is qualified for a clean energy advance if, on a day during the period starting on 1 July 2012 and ending on 19 March 2013:

(a) the person receives one of the social security payments set out in subsection (4); and

(b) the person's rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

(3) A determination under subsection (2) must specify the first day during the period set out in that subsection for which the person:

(a) satisfies paragraphs (2)(a) , (b) and (ba) ; and

(b) is in Australia, disregarding any temporary absence from Australia for a continuous period not exceeding 13 weeks.

Clean energy qualifying payments

(4) The social security payments (the clean energy qualifying payments ) are as follows:

(a) age pension;

(b) benefit PP (partnered);

(d) carer payment;

(e) disability support pension (other than for a person who is under 21 with no dependent children);

(f) newstart allowance;

(g) pension PP (single);

(h) partner allowance;

(i) seniors supplement;

(j) sickness allowance;

(k) special benefit, whose rate is worked out as if the person were qualified for newstart allowance;

(l) widow allowance;

(m) widow B pension;

(n) wife pension.

914A Recipients of austudy, youth allowance, some disability support pensions and some special benefits

Qualification for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May 2012 and ending on 30 June 2012, determine that a person is qualified for a clean energy advance if, on that day:

(a) the person receives one of the social security payments set out in subsection (5); and

(b) the person's rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

Qualification for days 1 July 2012 to 30 June 2013

(2) The Secretary may determine that a person is qualified for a clean energy advance if, on a day during the period starting on 1 July 2012 and ending on 30 June 2013:

(a) the person receives one of the social security payments set out in subsection (5); and

(b) the person's rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

Qualification for days 1 July 2013 to 31 December 2013

(3) The Secretary may determine that a person is qualified for a clean energy advance if, on a day during the period starting on 1 July 2013 and ending on 31 December 2013:

(a) the person receives one of the social security payments set out in subsection (5); and

(b) the person's rate of payment is greater than nil; and

(ba) the person is residing in Australia; and

First day of qualification under subsection (2) or (3)

(4) A determination under subsection (2) or (3) must specify the first day during the period set out in that subsection for which the person:

(a) satisfies paragraphs (a) , (b) and (ba) of that subsection; and

(b) is in Australia, disregarding any temporary absence from Australia for a continuous period not exceeding 13 weeks.

Clean energy qualifying payments

(5) The social security payments (the clean energy qualifying payments ) are as follows:

(a) austudy payment;

(b) disability support pension for a person who is under 21 with no dependent children;

(d) youth allowance.

914B Disregard nil rate in certain circumstances

(1) For the purposes of section 914 or 914A, a person is taken to receive a social security payment at a rate greater than nil even if the person's rate would be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in force; or

(b) the person has been paid an advance pharmaceutical allowance under the social security law.

(2) For the purposes of section 914 or 914A, if a social security payment is payable to a person because of subsection 23(1D), the person is taken to receive that payment at a rate greater than nil.

914C Limits on qualifying for multiple advances

(1) A person cannot qualify for more than one clean energy advance under section 914.

(2) A person can qualify for at most 2 clean energy advances under section 914A:

(a) one under either subsection 914A(1) or (2); and

(b) one under subsection 914A(3).

(3) A person who has qualified for a clean energy advance under subsection 914(1) or 914A(1) cannot qualify for a clean energy advance under the other of those subsections.

Note 1: Further limits may be determined under section 918.

Note 2: Top-up payments of clean energy advance may be payable under Subdivision C if the person's circumstances change during the person's clean energy advance period.

Subdivision B -- Amount of a clean energy advance

914D Amount of a clean energy advance

(1) On the day (the decision day ) that the Secretary determines that a person (the recipient ) is qualified for a clean energy advance, the Secretary must work out the amount of the advance.

Note: The advance will be paid in a lump sum as soon as is reasonably practicable (see section 47D of the Administration Act).

(2) The amount of the advance is the result of the following formula rounded up to the nearest multiple of $10:

914E Clean energy advance daily rate

(1) The recipient's clean energy advance daily rate is worked out as follows:

Working out the recipient's clean energy advance daily rate
	If the recipient's clean energy qualifying payment is:	Use this provision:
1	(a) age pension; or (b) bereavement allowance; or (c) disability support pension to which neither subsection 1066A(1) nor 1066B(1) applies; or (d) wife pension; or (e) carer payment; or (f) seniors supplement; or (g) widow B pension; or (h) another payment, and the recipient reached pension age on or before the decision day	subsection (2)
2	one of the following payments, and the recipient is under pension age on the decision day: (a) newstart allowance, if the recipient's maximum basic rate is worked out under point 1068-B5; (b) pension PP (single); (c) youth allowance, if the recipient's maximum basic rate is worked out under point 1067G-B3A	subsection (3)
3	one of the following payments, and the recipient is under pension age on the decision day: (a) newstart allowance, if the recipient's maximum basic rate is not worked out under point 1068-B5; (b) sickness allowance; (c) partner allowance; (d) widow allowance; (e) benefit PP (partnered); (f) special benefit, whose rate is worked out as if the recipient were qualified for newstart allowance	subsection (4)
4	disability support pension to which subsection 1066A(1) or 1066B(1) applies	subsection (5)
5	one of the following payments, and the recipient is under pension age on the decision day: (a) austudy payment; (b) youth allowance, if: (i) the recipient's maximum basic rate is not worked out under point 1067G-B3A; and (ii) the recipient's rate of youth allowance is not worked out by adding a youth disability supplement; (c) special benefit, whose rate is worked out as if the recipient were qualified for austudy payment or youth allowance	subsection (6)
6	youth allowance, whose rate is worked out by adding a youth disability supplement	subsection (7)

Note: For recipient and decision day , see subsection 914D(1).

Rate for payments set out in item 1 of the table

(2) The recipient's clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of:

(i) double the maximum basic rate under Pension Rate Calculator A, worked out for 1 July 2012 for a person who is partnered; and

(ii) the combined couple rate of pension supplement for 1 July 2012; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $5.20 (rounding up if that result is not a multiple of $5.20 but is a multiple of $2.60); and

(d) applying the applicable percentage in the following table to the result of paragraph (c); and

(e) rounding the result of paragraph (d) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30); and

(f) dividing the result of paragraph (e) by 364.

Percentage to be applied
Item	Recipient's family situation on the advance qualification day	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: This subsection covers payments covered by Pension Rate Calculator A, B or C, seniors supplement, recipients of other payments who have reached pension age and recipients of pensions covered by clause 146 of Schedule 1A.

Rate for payments set out in item 2 of the table

(3) The recipient's clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the pension supplement basic amount, for the clean energy qualifying payment, worked out:

(i) for 1 July 2012; and

(ii) for a person in circumstances the same as the recipient's on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30); and

(d) dividing the result of paragraph (c) by 364.

Rate for payments set out in item 3 of the table

(4) The recipient's clean energy advance daily rate is worked out by:

(a) working out 1.7% of the maximum basic rate for the clean energy qualifying payment, worked out:

(i) for 1 July 2012; and

(ii) for a person in circumstances the same as the recipient's on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Rate for payments set out in item 4 of the table

(5) The recipient's clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the youth disability supplement, for the clean energy qualifying payment, worked out:

(i) for the first day of the recipient's clean energy advance period; and

(ii) for a person in circumstances the same as the recipient's on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30); and

(d) dividing the result of paragraph (c) by 364.

Rate for payments set out in item 5 of the table

(6) The recipient's clean energy advance daily rate is worked out by:

(a) working out 1.7% of the maximum basic rate for the clean energy qualifying payment, worked out:

(i) for the first day of the recipient's clean energy advance period; and

(ii) for a person in circumstances the same as the recipient's on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

Rate for payments set out in item 6 of the table

(7) The recipient's clean energy advance daily rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the youth disability supplement, for the clean energy qualifying payment, worked out:

(i) for the first day of the recipient's clean energy advance period; and

(ii) for a person in circumstances the same as the recipient's on the advance qualification day; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

(d) dividing the result of paragraph (c) by 14.

914F Number of advance days

The recipient's number of advance days is the number of days in the recipient's clean energy advance period that are on or after:

(a) if the recipient qualifies for the clean energy advance before 1 July 2012--1 July 2012; or

(b) otherwise--the advance qualification day.

Subdivision C -- Top-up payments of clean energy advance

914G Top-up payments of clean energy advance

(1) The Minister may by legislative instrument determine that persons:

(a) who have been paid the amount (the original payment ) of a specified clean energy advance worked out under Subdivision B in relation to a clean energy qualifying payment (the original qualifying payment ); and

(b) whose circumstances change, within a period specified in the instrument, in a way that is specified in the instrument and is covered by subsection (2) or (3);

qualify for a further payment, of the amount worked out in accordance with the instrument, of clean energy advance.

(2) This subsection covers a person's circumstances changing in a way such that:

(a) on the day (the change day ) the change happens, the person was still receiving the original qualifying payment; and

(b) had the amount of the original payment been worked out by reference to the person's circumstances on the change day (rather than those on the advance qualification day), a greater clean energy advance daily rate would have been used for working out that amount than the rate actually used for working out that amount.

(3) This subsection covers a change in a person's circumstances that, apart from a multiple qualification exclusion, would (if any necessary administrative decisions were made) qualify the person for a clean energy bonus, under an Act or a scheme, relating to a payment other than the original qualifying payment.

(4) For the purposes of subsection (3), a multiple qualification exclusion is an instrument that:

(a) provides a person is not qualified for a clean energy bonus under an Act or a scheme because of the person's qualification for or receipt of the original payment or the original qualifying payment; and

(b) is made under:

(i) section 918; or

(ii) section 424L of the MRCA; or

(iii) section 65A of the Veterans' Entitlements Act;

or is an instrument establishing qualifications for a clean energy bonus under a scheme.

(5) An instrument under subsection (1) may provide for:

(a) different periods for changes in circumstances depending on different changes in circumstances; and

(b) different ways of working out further amounts of the original payment depending on different changes in circumstances.

Division 5 -- Multiple qualification exclusions

918 Multiple qualification exclusions

(1) The Minister may by legislative instrument determine that persons in circumstances specified in the instrument cannot qualify for a clean energy bonus under this Act that is specified in the instrument.

(2) Those circumstances must relate to persons' qualification for or receipt of one or more of the following:

(a) a clean energy bonus under this Act;

(b) a clean energy bonus under the MRCA;

(d) a clean energy bonus under a scheme (however described), whether or not the scheme is provided for, by or under an Act.

(3) An instrument under subsection (1) has effect according to its terms, despite any other provision of this Act.

Division 2--Other amendments

1224 Debts relating to clean energy advances

2 Subsection 23(1)

Insert:

"advance qualification day" means:

(a) for a person qualifying for a clean energy advance because of a determination made under subsection 914(1) or 914A(1)--the day that determination is made; or

(b) for a person qualifying for a clean energy advance because of a determination made under subsection 914(2)--the day specified in that determination because of subsection 914(3); or

(c) for a person qualifying for a clean energy advance because of a determination made under subsection 914A(2) or (3)--the day specified in that determination because of subsection 914A(4).

Note: The day specified in the determination because of subsection 914(3) or 914A(4) is the first day during the clean energy advance period for which the person satisfies the qualification requirements, disregarding any short temporary absence from Australia.

3 Subsection 23(1)

Insert:

"clean energy advance" means an advance described in Subdivision A or C of Division 1 of Part 2.18A.

4 Subsection 23(1)

Insert:

"clean energy advance daily rate" has the meaning given by section 914E.

5 Subsection 23(1)

Insert:

"clean energy advance period" means:

(a) for a person qualifying under section 914 for a clean energy advance--the period starting on 1 July 2012 and ending on 19 March 2013; or

(b) for a person qualifying under subsection 914A(1) or (2) for a clean energy advance--the period starting on 1 July 2012 and ending on 30 June 2013; or

(c) for a person qualifying under subsection 914A(3) for a clean energy advance--the period starting on 1 July 2013 and ending on 31 December 2013.

6 Subsection 23(1)

Insert:

"clean energy bonus" under an Act or scheme means any of the following that is provided for by the Act or scheme:

(a) a payment known as a clean energy advance;

(c) an increase that is described using the phrase "clean energy" and affects the rate of another payment that is provided for by the Act or scheme.

7 Subsection 23(1)

Insert:

"clean energy payment" means:

(a) clean energy advance; or

8 Subsection 23(1)

Insert:

"clean energy qualifying payment" , for a person, means:

(a) for a person qualifying under section 914 for a clean energy advance--the social security payment set out in subsection 914(4) that the person is receiving on the advance qualification day; or

(b) for a person qualifying under section 914A for a clean energy advance--the social security payment set out in subsection 914A(5) that the person is receiving on the advance qualification day.

9 Subsection 23(1)

Insert:

"number of advance days" has the meaning given by section 914F.

10 After section 1223ABE

Insert:

(1) This section applies if:

(a) an individual is paid a clean energy advance; and

(b) after the advance is paid, one of the following events happens to a determination that directly or indirectly affects the payability or amount of the advance paid to the individual:

(i) the determination is changed, revoked or set aside;

(ii) the determination is superseded by another determination; and

(c) the event happens wholly or partly because the individual knowingly made a false or misleading statement or knowingly provided false information; and

(d) had the event happened on or before the day the advance was paid:

(i) the advance would not have been paid; or

(ii) the advance would have been reduced.

Note 1: Examples of determinations directly affecting the payability or amount of the clean energy advance are as follows:

(a) a determination relating to the person's qualification for the clean energy qualifying payment to which the advance related;

(b) the determination of the person's qualification for the clean energy advance.

Note 2: An example of a determination indirectly affecting the amount of the advance is a determination relating to a change in circumstances that results in the person qualifying for a further payment of the advance under an instrument made under section 914G.

Creation and amount of debt

(2) The advance is a debt due to the Commonwealth by the individual if subparagraph (1)(d)(i) applies.

(3) The amount by which the advance would have been reduced is a debt due to the Commonwealth by the individual if subparagraph (1)(d)(ii) applies.

Relationship with other sections

(4) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to clean energy advances.

Part 2 -- Clean energy supplement

11 After section 12J

Insert:

12K Clean energy advance

A claim is not required for a clean energy advance.

Division 1--Supplement payable from 20 March 2013

20B Clean energy pension rate

12 After section 20A

Insert:

The clean energy pension rate is the rate worked out by:

(a) working out 1.7% of the total of:

(i) double the maximum basic rate under Pension Rate Calculator A, worked out for 20 March 2013 for a person who is partnered; and

(ii) the combined couple rate of pension supplement for 20 March 2013; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $5.20 (rounding up if that result is not a multiple of $5.20 but is a multiple of $2.60).

Note 1: This rate is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Note 2: This is an annual rate.

13 Subsection 23(1)

Insert:

"clean energy pension rate" has the meaning given by section 20B.

14 Subsection 23(1)

Insert:

"clean energy supplement" , for a person, means the addition under the clean energy supplement Module (if any) of the relevant Rate Calculator when working out the rate of the person's social security payment.

15 Subsection 23(1)

Insert:

"clean energy (under pension age) rate" , for a person, means the person's clean energy (under pension age) rate worked out under the clean energy supplement Module (if any) of the Rate Calculator for the person's social security payment.

16 Subsection 23(1)

Insert:

"clean energy (youth disability) rate" has the meaning given by point 1067G-BA6.

17 Section 1061UB

Repeal the section, substitute:

1061UB Rate of seniors supplement

The person's daily rate of seniors supplement, for a particular day, is 1 / 364 of the amount worked out by:

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

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30); and

(c) applying the applicable percentage in the following table to the clean energy pension rate if, on that day, the person is residing in Australia and:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks; and

(d) rounding the result of paragraph (c), if any, up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30); and

(e) totalling the results of paragraphs (b) and (d).

Percentage to be applied
Item	Person's family situation	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note 1: For combined couple rate of minimum pension supplement , see subsection 20A(2).

Note 2: For clean energy pension rate , see section 20B.

Note 3: Section 918 may affect the person's qualification for the increase in rate of seniors supplement as a result of paragraphs (c) and (d).

18 Point 1064-A1 (method statement, after step 1A)

Insert:

Step 1B. Work out the clean energy supplement (if any) using Module C below.

19 Point 1064-A1 (method statement, step 4)

After "1A", insert ", 1B".

20 Section 1064 (after Module BA)

Insert:

1064-C1 A clean energy supplement is to be added to the person's maximum basic rate if the person 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 13 weeks.

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

1064-C2 However, this Module does not apply if quarterly clean energy supplement is payable to the person.

1064-C3 The person's clean energy supplement is the amount worked out by:

(a) applying the applicable percentage in the following table to the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30).

Percentage to be applied
Item	Person's family situation	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For clean energy pension rate , see section 20B.

21 Point 1065-A1 (method statement, after step 2A)

Insert:

Step 3. Work out the clean energy supplement (if any) using Module C below.

22 Point 1065-A1 (method statement, step 4)

Omit "and 2A", substitute ", 2A and 3".

23 Section 1065 (after Module BA)

Insert:

1065-C1 A clean energy supplement is to be added to the person's maximum basic rate if the person 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 13 weeks.

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

1065-C2 However, this Module does not apply if quarterly clean energy supplement is payable to the person.

1065-C3 The person's clean energy supplement is the amount worked out by:

(a) applying the applicable percentage in the following table to the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30).

Percentage to be applied
Item	Person's family situation	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For clean energy pension rate , see section 20B.

24 Point 1066-A1 (method statement, after step 1A)

Insert:

Step 2. Work out the clean energy supplement (if any) using Module C below.

25 Point 1066-A1 (method statement, step 4)

After "1A", insert ", 2".

26 Section 1066 (after Module BA)

Insert:

1066-C1 A clean energy supplement is to be added to the person's maximum basic rate if the person 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 13 weeks.

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

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

1066-C2 The person's clean energy supplement is the amount worked out by:

(a) applying the applicable percentage in the following table to the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30).

Percentage to be applied
Item	Person's family situation	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For clean energy pension rate , see section 20B.

27 Point 1068-A1 (method statement, after step 1A)

Insert:

Step 1B. Work out the clean energy supplement (if any) using Module C below.

28 Section 1068 (after Module BA)

Insert:

Module BB -- Clean energy supplement

1068-C1 A clean 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 13 weeks.

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

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

Recipient has reached pension age

1068-C2 If the recipient has reached pension age and is not covered by point 1068-B5, the recipient's clean energy supplement is 1 / 26 of the amount worked out by:

(a) applying the applicable percentage in the following table to the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30).

Percentage to be applied
Item	Recipient's family situation	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For clean energy pension rate , see section 20B.

Recipient has not reached pension age

1068-C3 If the recipient has not reached pension age and is not covered by point 1068-B5, the recipient's clean energy supplement is the recipient's clean energy (under pension age) rate.

1068-C4 The recipient's clean energy (under pension age) rate is worked out by:

(a) working out 1.7% of the maximum basic rate, worked out:

(i) for 20 March 2013; and

(ii) for a person whose circumstances on that day were the same as the recipient's current circumstances; and

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

Note: This rate for those circumstances, and the rates for persons with different circumstances, are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Recipient covered by point 1068-B5

1068-C5 If the recipient is covered by point 1068-B5, the recipient's clean energy supplement is the rate worked out under Module BB of the Pension PP (Single) Rate Calculator as if the recipient were receiving parenting payment.

29 Point 1068A-A1 (method statement, after step 1A)

Insert:

Step 1B. Work out the clean energy supplement (if any) using Module BB below.

30 Point 1068A-A1 (method statement, step 4)

After "1A,", insert "1B,".

31 Section 1068A (after Module BA)

Insert:

1068A-BB1 A clean 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 13 weeks.

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

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

Recipient has reached pension age

1068A-BB2 If the recipient has reached pension age, the recipient's clean energy supplement is the amount worked out by:

(a) applying the applicable percentage in the following table to the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30).

Percentage to be applied
Item	Recipient's family situation	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For clean energy pension rate , see section 20B.

Recipient has not reached pension age

1068A-BB3 If the recipient has not reached pension age, the recipient's clean energy supplement is the recipient's clean energy (under pension age) rate.

1068A-BB4 The recipient's clean energy (under pension age) rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the pension supplement basic amount, worked out:

(i) for 20 March 2013; and

(ii) for a person whose circumstances on that day were the same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30).

Note: This rate for those circumstances, and the rates for persons with different circumstances, are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

32 Point 1068B-A2 (method statement, after step 2A)

Insert:

Step 2B. Work out the clean energy supplement (if any) using Module DB below.

33 Point 1068B-A3 (method statement, after step 2A)

Insert:

Step 2B. Work out the clean energy supplement (if any) using Module DB below.

34 Section 1068B (after Module DA)

Insert:

Module DB -- Clean energy supplement

1068B-DB1 A clean 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 13 weeks.

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

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

Recipient has reached pension age

1068B-DB2 If the recipient has reached pension age, the recipient's clean energy supplement is 1 / 26 of the amount worked out by:

(a) applying the applicable percentage in the following table to the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30).

Percentage to be applied
Item	Recipient's family situation	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For clean energy pension rate , see section 20B.

Recipient has not reached pension age

1068B-DB3 If the recipient has not reached pension age, the recipient's clean energy supplement is the recipient's clean energy (under pension age) rate.

1068B-DB4 The recipient's clean energy (under pension age) rate is worked out by:

(a) working out 1.7% of the maximum basic rate, worked out:

(i) for 20 March 2013; and

(ii) for a person whose circumstances on that day were the same as the recipient's current circumstances; and

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

Note: This rate for those circumstances, and the rates for persons with different circumstances, are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

35 After subparagraph 146(4)(a)(i) of Schedule 1A

Insert:

(ia) the person's clean energy supplement (if any) (see subclause 149(5)); and

36 At the end of clause 149 of Schedule 1A

Add:

Clean energy supplement

(5) If subclause 147(1) or (2) is relevant to the person, the social security law applies in relation to the person's pension as if:

(a) the clean energy supplement Module of the relevant Pension Rate Calculator were the same as Module C of Pension Rate Calculator A; and

(b) the person's clean energy supplement (if any) resulting from that Module were used to work out the rate of the person's pension.

Note 1: This clean energy supplement is included in the total worked out under paragraph 146(4)(a) (see subparagraph 146(4)(a)(ia)).

Note 2: This subclause causes Division 2 of Part 2.18A (Quarterly clean energy supplement) of this Act to apply. If quarterly clean energy supplement is payable, then no clean energy supplement will be available to be included in the total worked out under paragraph 146(4)(a) (see point 1064-C1 of this Act).

Note 3: Other effects of this subclause include:

(a) the possibility of the minimum amount of fortnightly instalments of the pension being affected under section 43 of the Administration Act; and

(b) that section 1210 will affect the operation of reductions of the maximum payment rate because of the income test and assets test.

Division 2--Supplement payable from 1 January 2014

37 Subsection 48B(3)

Repeal the subsection, substitute:

(3) The amount of the instalment is worked out by:

(a) working out the amount of the person's seniors supplement for each day during the test period on which the person was qualified for seniors supplement; and

(b) adding up the amounts resulting from paragraph (a).

Module BA -- Clean energy supplement

38 Point 1066A-A1 (method statement, after step 1)

Insert:

Step 1A. Work out the clean energy supplement (if any) using Module BA below.

39 Point 1066A-A1 (method statement, step 5)

After "1, ", insert "1A,".

40 Section 1066A (after Module B)

Insert:

1066A-BA1 A clean energy supplement is to be added to the person's maximum basic rate if the person 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 13 weeks.

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

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

1066A-BA2 The person's (the recipient's ) clean energy supplement is the recipient's clean energy (under pension age) rate.

1066A-BA3 For the purposes of point 1066A-BA2, the recipient's clean energy (under pension age) rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the youth disability supplement, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30).

Note: This rate for those circumstances, and the rates for persons with different circumstances, are indexed 12 monthly in line with CPI increases (see sections 1191 to 1194).

41 Point 1066B-A1 (method statement, after step 2)

Insert:

Step 2A. Work out the clean energy supplement (if any) using Module BA below.

42 Point 1066B-A1 (method statement, step 5)

After "2,", insert "2A,".

43 Section 1066B (after Module B)

Insert:

Module BA -- Clean energy supplement

1066B-BA1 A clean energy supplement is to be added to the person's maximum basic rate if the person 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 13 weeks.

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

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

1066B-BA2 The person's (the recipient's ) clean energy supplement is the recipient's clean energy (under pension age) rate.

1066B-BA3 For the purposes of point 1066B-BA2, the recipient's clean energy (under pension age) rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the youth disability supplement, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the same as the recipient's current circumstances; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30).

Note: This rate for those circumstances, and the rates for persons with different circumstances, are indexed 12 monthly in line with CPI increases (see sections 1191 to 1194).

44 Point 1067G-A1 (method statement, after step 1)

Insert:

Step 1A. Work out the clean energy supplement (if any) using Module BA below.

45 Section 1067G (after Module B)

Insert:

Module BA -- Clean energy supplement

1067G-BA1 A clean 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 13 weeks.

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

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

General case--recipient not covered by point 1067G-B3A and youth disability supplement not added

1067G-BA2 The recipient's clean energy supplement is the recipient's clean energy (under pension age) rate if:

(a) the recipient is not covered by point 1067G-B3A; and

(b) an amount of youth disability supplement is not added under Module D to the recipient's rate.

1067G-BA3 For the purposes of point 1067G-BA2, the recipient's clean energy (under pension age) rate is worked out by:

(a) working out 1.7% of the maximum basic rate, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the same as the recipient's current circumstances; and

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

Note: This rate for those circumstances, and the rates for persons with different circumstances, are indexed 12 monthly in line with CPI increases (see sections 1191 to 1194).

Recipient covered by point 1067G-B3A

1067G-BA4 If the recipient is covered by point 1067G-B3A, the recipient's clean energy supplement is the rate worked out under Module BB of the Pension PP (Single) Rate Calculator as if the recipient were receiving parenting payment.

Youth disability supplement added to the recipient's rate

1067G-BA5 If an amount of youth disability supplement is added under Module D to the recipient's rate, the recipient's clean energy supplement is the recipient's clean energy (youth disability) rate.

1067G-BA6 The recipient's clean energy (youth disability) rate is worked out by:

(a) working out 1.7% of the total of the maximum basic rate, and the youth disability supplement, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the same as the recipient's current circumstances; and

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

Note: This rate for those circumstances, and the rates for persons with different circumstances, are indexed 12 monthly in line with CPI increases (see sections 1191 to 1194).

46 Point 1067L-A1 (method statement, after step 1A)

Insert:

Step 1B. Work out the clean energy supplement (if any) using Module BB below.

47 Point 1067L-A1 (method statement, step 3)

After "1A,", insert "1B,".

48 Section 1067L (after Module BA)

Insert:

Module BB -- Clean energy supplement

1067L-BB1 A clean 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 13 weeks.

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

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

Recipient has reached pension age

1067L-BB2 If the recipient has reached pension age, the recipient's clean energy supplement is 1 / 26 of the amount worked out by:

(a) applying the applicable percentage in the following table to the clean energy pension rate; and

(b) rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that rate is not a multiple of $2.60 but is a multiple of $1.30).

Percentage to be applied
Item	Recipient's family situation	Use this %
1	Not a member of a couple	66.33%
2	Partnered	50%
3	Member of an illness separated couple	66.33%
4	Member of a respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For clean energy pension rate , see section 20B.

Recipient has not reached pension age

1067L-BB3 If the recipient has not reached pension age, the recipient's clean energy supplement is the recipient's clean energy (under pension age) rate.

1067L-BB4 The recipient's clean energy (under pension age) rate is worked out by:

(a) working out 1.7% of the maximum basic rate, worked out:

(i) for 1 January 2014; and

(ii) for a person whose circumstances on that day were the same as the recipient's current circumstances; and

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

Note: This rate for those circumstances, and the rates for persons with different circumstances, are indexed 12 monthly in line with CPI increases (see sections 1191 to 1194).

Part 3 -- Quarterly clean energy supplement

Division 1--Main amendments

Division 2 -- Quarterly clean energy supplement

49 After Division 1 of Part 2.18A

Insert:

915 When quarterly clean energy supplement is payable

Quarterly clean energy supplement is payable to a person for each day for which an election by the person under subsection 915A(1) or 1061VA(1) is in force in relation to a social security payment the person is receiving.

Note: Section 918 may affect the person's qualification for quarterly clean energy supplement.

915A Electing to receive quarterly clean energy supplement

(1) If:

(a) Part 2.25C (about quarterly pension supplement) does not apply to a person in relation to a social security payment the person is receiving; and

(b) clean energy supplement is used to work out the rate of that social security payment;

the person may, in a manner or way approved by the Secretary, make an election to receive the person's clean energy supplement under this Division as a separate social security payment.

Note: The person could make an election under subsection 1061VA(1) if Part 2.25C applies to the person in relation to the social security payment. That election would cause quarterly clean energy supplement to be payable (see section 915).

(2) An election comes into force as soon as practicable after it is made.

(3) An election ceases to be in force if the person ceases to receive a social security payment (a main payment ) calculated using a Rate Calculator that has a clean energy supplement Module.

(4) The person may, in a manner or way approved by the Secretary, revoke an election. A revocation takes effect as soon as practicable after it happens.

915B Rate of quarterly clean energy supplement

(1) The person's daily rate of quarterly clean energy supplement, for a particular day, is:

(a) if the Rate Calculator for the main payment received on that day produces an annual rate-- 1 / 364 of the amount that, apart from this Division, would be the person's clean energy supplement for that day; or

(b) if the Rate Calculator for the main payment received on that day produces a fortnightly rate-- 1 / 14 of the amount that, apart from this Division, would be the person's clean energy supplement for that day.

(2) This section has effect subject to subsection 1210(3A).

48D Payment of quarterly clean energy supplement

50 After section 48C

Insert:

(1) Quarterly clean energy supplement is to be paid by instalments.

(2) An instalment of quarterly clean energy supplement is to be paid to a person as soon as is reasonably practicable on or after the first supplement test day (the current test day ) that follows a day for which quarterly clean energy supplement is payable to the person.

Note: For when quarterly clean energy supplement is payable to the person, see section 915 of the 1991 Act.

(3) The amount of the instalment is worked out by:

(a) working out the amount of the person's quarterly clean energy supplement for each day during the test period for which quarterly clean energy supplement is payable to the person; and

(b) adding up the amounts resulting from paragraph (a).

(4) In this section:

"supplement test day" means:

(a) 20 March; or

(b) 20 June; or

(d) 20 December.

"test period" means the period:

(a) starting on the most recent supplement test day before the current test day; and

(b) ending on the day immediately before the current test day.

Division 2--Other amendments

51 Subsection 23(1) (after paragraph (a) of the definition of clean energy bonus )

Insert:

(b) a payment known as a clean energy supplement or a quarterly clean energy supplement;

52 Subsection 23(1) (after paragraph (a) of the definition of clean energy payment )

Insert:

(b) quarterly clean energy supplement; or

53 Subsection 23(1)

Insert:

"quarterly clean energy supplement" means the separate social security payment described in Division 2 of Part 2.18A.

54 Subsections 44(2), 98(2), 148(2), 199(2), 316(2) and 364(2)

Omit "subsection 1061VA(1)", substitute "subsection 915A(1) (about quarterly clean energy supplement) or 1061VA(1) (about quarterly pension supplement)".

55 Paragraphs 408CA(2)(a) and 500I(2)(a)

Omit "subsection 1061VA(1)", substitute "subsection 915A(1) (about quarterly clean energy supplement) or 1061VA(1) (about quarterly pension supplement)".

56 Subsection 547(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would be nil merely because:

(a) an election by the person under subsection 915A(1) (about quarterly clean energy supplement) is in force; or

(b) an advance pharmaceutical allowance has been paid to the person under the social security law.

57 Paragraphs 572(2)(a), 608(2)(a), 677(2)(a), 732(2)(a) and 771HC(2)(a)

Omit "subsection 1061VA(1)", substitute "subsection 915A(1) (about quarterly clean energy supplement) or 1061VA(1) (about quarterly pension supplement)".

12DB Quarterly clean energy supplement

58 After section 12DA

Insert:

A claim is not required for quarterly clean energy supplement.

59 Subsection 55(1)

After "48C", insert ", 48D".

Part 4 -- Indexation

Division 8 -- Adjustments relating to clean energy household assistance

60 Section 1190 (after table item 1AC)

Insert:

1AD	Clean energy pension rate	CEP rate	Section 20B
1AE	Clean energy (under pension age) rate 1	CEUPA rate1	Each rate worked out under point 1068-C4 or 1068B-DB4
1AF	Clean energy (under pension age) rate 2	CEUPA rate2	Each rate worked out under point 1068A-BB4
1AG	Clean energy (under pension age) rate 3	CEUPA rate3	Each rate worked out under point 1067G-BA3 or 1067L-BB4
1AH	Clean energy (under pension age) rate 4	CEUPA rate4	Each rate worked out under point 1066A-BA3 or 1066B-BA3
1AI	Clean energy (youth disability) rate	CEYD rate	Each rate worked out under point 1067G-BA6

61 Section 1190 (note)

Omit "Note", substitute "Note 1".

62 At the end of section 1190

Add:

Note 2: Indexing the CEP rate, CEUPA rate1, CEUPA rate2, CEUPA rate3, CEUPA rate4 and CEYD rate will result in the indexation of the rate of quarterly clean energy supplement (see Division 2 of Part 2.18A). Indexing the CEP rate will result in the indexation of the rate of seniors supplement (see section 1061UB).

63 Subsection 1191(1) (after table item 1C)

Insert:

1D	CEP rate	(a) 20 March (b) 20 September	(a) December (b) June	highest June or December quarter before reference quarter (but not earlier than June quarter 2011)	$5.20
1E	CEUPA rate1	(a) 20 March (b) 20 September	(a) December (b) June	highest June or December quarter before reference quarter (but not earlier than June quarter 2011)	$0.10
1F	CEUPA rate2	(a) 20 March (b) 20 September	(a) December (b) June	highest June or December quarter before reference quarter (but not earlier than June quarter 2011)	$2.60
1G	CEUPA rate3	1 January	June	highest June quarter before reference quarter (but not earlier than June quarter 2011)	$0.10
1H	CEUPA rate4	1 January	June	highest June quarter before reference quarter (but not earlier than June quarter 2011)	$2.60
1J	CEYD rate	1 January	June	highest June quarter before reference quarter (but not earlier than June quarter 2011)	$0.10

64 At the end of subsection 1192(2)

Add:

Note 3: On and after 20 March 2013, the indexation of certain amounts may be affected by Division 8.

65 After subsection 1192(3C)

Insert:

(3D) The first indexation of amounts under item 1D, 1E or 1F of the CPI Indexation Table in subsection 1191(1) is to take place on 20 September 2013.

(3E) The first indexation of amounts under item 1G, 1H or 1J of the CPI Indexation Table in subsection 1191(1) is to take place on 1 January 2015.

66 Subsection 1196(2) (note)

Omit "Note", substitute "Note 1".

67 At the end of subsection 1196(2)

Add:

Note 2: On and after 20 March 2013, the indexation of certain amounts may be affected by Division 8.

68 At the end of Part 3.16

Add:

1206GF Special rules for indexation of certain rates on or after 20 March 2013

(1) The indexation factor for an amount set out in subsection (2) on an indexation day on or after 20 March 2013 is to be reduced by the brought forward CPI indexation amount, but not below 1.

Note: Once the brought forward CPI indexation amount becomes 0, there will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.003. The brought forward CPI indexation amount in relation to 20 March 2013 is 0.007 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2013 is 0.004. That indexation factor is reduced to 1.006 on 20 September 2013.

The brought forward CPI indexation amount in relation to later indexation days is now 0 so there is no further reduction of the indexation factor.

(2) For the purposes of subsection (1), the amounts are as follows:

(a) pension MBR;

(b) PS rate;

(d) PS basic rate;

(e) benefit MBR (ordinary);

(f) pension supplement component for pension bonus;

(g) maximum transitional pension rates.

(3) The living cost indexation factor worked out under section 1197:

(a) for pension MBR, except to the extent that pension MBR covers the maximum basic rate for pension PP (single); and

(b) for each indexation day on or after 20 March 2013;

is to be reduced by the brought forward PBLCI indexation amount, but not below 1.

Note: Once the brought forward PBLCI indexation amount becomes 0, there will be no further reduction of the factor.

Example: Assume that the living cost indexation factor worked out under section 1197 on 20 March 2013 is 1.003. The brought forward PBLCI indexation amount in relation to 20 March 2013 is 0.007 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the living cost indexation factor is 1.010. The brought forward PBLCI indexation amount in relation to 20 September 2013 is 0.004. That indexation factor is reduced to 1.006 on 20 September 2013.

The brought forward PBLCI indexation amount in relation to later indexation days is now 0 so there is no further reduction of the living cost indexation factor.

(4) Neither paragraph (2)(a), nor subsection (3), affect:

(a) the rate of a payment worked out under clause 146 of Schedule 1A; or

(b) an amount worked out in relation to a pension because of clause 149 of that Schedule.

(5) In this section:

"brought forward CPI indexation amount" , in relation to a day, means:

(a) if subsection (3) applies for the amount, and the brought forward PBLCI indexation amount in relation to the day is 0--0; and

(b) otherwise--0.007 less any reduction made under subsection (1) for a previous day.

"brought forward PBLCI indexation amount" , in relation to a day, means:

(a) if the brought forward CPI indexation amount in relation to the day is 0--0; and

(b) otherwise--0.007 less any reduction made under subsection (3) for a previous day.

1206GG Special rules for indexation of certain rates on or after 1 January 2014

(1) The indexation factor for AP MBR or YA MBR on an indexation day on or after 1 January 2014 is to be reduced by the brought forward indexation amount, but not below 1.

(2) In this section:

"brought forward indexation amount" , in relation to a day, means 0.007 less any reduction made under this section for a previous day.

Note: Once the brought forward indexation amount becomes 0, there will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on 1 January 2014 is 1.003. The brought forward indexation amount in relation to 1 January 2014 is 0.007 (as there has been no previous reduction). That indexation factor is reduced to 1 on 1 January 2014.

Further assume that on 1 January 2015 the indexation factor is 1.010. The brought forward indexation amount in relation to 1 January 2015 is 0.004. That indexation factor is reduced to 1.006 on 1 January 2015.

The brought forward indexation amount in relation to later indexation days is now 0 so there is no further reduction of the indexation factor.

Part 5 -- Other amendments

69 Subsection 17(8)

Repeal the subsection, substitute:

(8) For the purposes of the definition of income cut-out amount in subsection (1), the formula is as follows:

where:

"clean energy supplement component" means the clean energy supplement worked out under point 1064-C3 for a person who is not a member of a couple:

(a) whether or not the person for whom the income cut-out amount is being worked out is a member of a couple; and

(b) whether or not that Module applies to the person for whom the income cut-out amount is being worked out.

"maximum basic rate" means the amount specified in column 3 of item 1 of the table in point 1064-B1.

"ordinary free area limit" means the amount specified in column 3 of item 1 in Table E-1 in point 1064-E4.

"pension supplement component" means the pension supplement amount worked out under point 1064-BA3 for a person who is not a member of a couple:

(a) whether or not the person for whom the income cut-out amount is being worked out is a member of a couple; and

(b) whether or not that point applies to the person for whom the income cut-out amount is being worked out.

70 Subsection 1061ECA(2) (method statement, at the end of step 2)

Add:

; and (c) the person's clean energy supplement (if any).

71 Point 1067L-A1 (method statement, step 5) (note)

Omit "(maximum basic rate first, then pharmaceutical allowance)".

72 Point 1068-A1 (note 1)

Omit "(maximum basic rate first, then rent assistance)".

73 Point 1068A-A1 (note 1)

Omit "(maximum basic rate first, then rent assistance, then pharmaceutical allowance)".

74 Section 1190 (table item 49C)

Omit "[Pension Rate Calculator A--point 1064-C8--Table--column 3--item 6] [Pension Rate Calculator B--point 1065-C8--Table--column 3--item 6]".

Note: This item omits references to table items that have been repealed.

75 Paragraph 1210(1)(a)

Omit "either", substitute "one or more".

76 After subparagraph 1210(1)(a)(i)

Insert:

(ia) the clean energy supplement Module (the CE Module );

77 Subsection 1210(1) (after table item 4)

Insert:

4A	the amount of any increase under the CE Module

78 Subsection 1210(1) (note)

Repeal the note, substitute:

Note 1: For table item 4A, the amount will be nil if quarterly clean energy supplement is payable to the person (for example, see point 1064-C2).

Note 2: Table item 5 will not apply if an election by the person under subsection 1061VA(1) is in force, as the rate would have already been reduced to nil.

79 After subsection 1210(3)

Insert:

(3A) If:

(a) quarterly clean energy supplement is payable to a person; and

(b) if quarterly clean energy supplement were not payable to the person:

(i) the rate (the main rate ) of the person's social security payment would be increased under the CE Module of the Rate Calculator; and

(ii) the main rate would be reduced as described in paragraph (1)(b);

the person's quarterly clean energy supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person's clean energy supplement would be reduced under subsection (1) were quarterly clean energy supplement not payable to the person.

Note: The reduction may be disregarded unless the person's quarterly clean energy supplement is reduced to nil (see subsection 43(5B) of the Administration Act).

80 Subsection 1210(4)

Repeal the subsection, substitute:

(4) The following table sets out details of the Modules relevant to subsection (1):

Relevant Modules
	Pension Rate Calculator	PS Module	PA Module	CE Module	Income test Module	Assets test Module
1	Pension Rate Calculator A, section 1064	BA	none	C	E	G
2	Pension Rate Calculator C, section 1066	BA	none	C	E	G
3	Pension Rate Calculator D, section 1066A	none	D	BA	F	H
4	Youth Allowance Rate Calculator, section 1067G	none	C	BA	H	none
5	Austudy Payment Rate Calculator, section 1067L	BA	C	BB	D	none
6	Benefit Rate Calculator B, section 1068	BA	D	C	G	none
7	Pension PP (Single) Rate Calculator, section 1068A	BA	C	BB	E	none
8	Benefit PP (partnered) Rate Calculator, section 1068B	DA	E	DB	D	none