FURTHER 1998 BUDGET MEASURES LEGISLATION AMENDMENT (SOCIAL SECURITY) ACT 1999 NO. 152, 1999 - SCHEDULE 3 - Amendments relating to special employment advance

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FURTHER 1998 BUDGET MEASURES LEGISLATION AMENDMENT (SOCIAL SECURITY) ACT 1999 NO. 152, 1999 - SCHEDULE 3

- Amendments relating to special employment advance

Social Security Act 1991

1 Section 3 (index)

Insert the following entry in its appropriate alphabetical position, determined on a letter-by-letter basis:

special employment advance qualifying entitlement
23(1)

2 Subsection 23(1)

Insert:

special employment advance qualifying entitlement means:

(a): an austudy payment; or
(b): a carer payment; or
(c): a disability support pension; or
(d): a mature age allowance; or
(e): a mature age partner allowance; or
(f): a newstart allowance; or
(g): a pension PP (single); or
(h): a widow B pension; or
(i): a widow allowance; or
(j): a wife pension; or
(k): a youth allowance.

3 Paragraph 129(1)(b)

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

4 Subparagraph 129(1)(b)(ii)

Omit "and".

5 At the end of paragraph 129(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of disability support pension payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

6 Subsection 129(2) (method statement, step 1)

Omit "or advance payment of disability support pension", substitute ", advance payment of disability support pension or special employment advance of disability support pension".

7 Paragraph 171(1)(b)

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

8 Subparagraph 171(1)(b)(ii)

Omit "and".

9 At the end of paragraph 171(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of wife pension payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

10 Subsection 171(2) (method statement, step 1)

Omit "or advance payment of wife pension", substitute ", advance payment of wife pension or special employment advance of wife pension".

11 Paragraph 221(1)(b)

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

12 Subparagraph 221(1)(b)(ii)

Omit "and".

13 At the end of paragraph 221(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of carer payment payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

14 Subsection 221(2) (method statement, step 1)

Omit "or advance payment of carer payment", substitute ", advance payment of carer payment or special employment advance of carer payment".

15 Paragraph 388(1)(b)

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

16 Subparagraph 388(1)(b)(ii)

Omit "and".

17 At the end of paragraph 388(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of widow B pension payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

18 Subsection 388(2) (method statement, step 1)

Omit "or advance payment of widow B pension", substitute ", advance payment of widow B pension or special employment advance of widow B pension".

19 Paragraph 408HB(1)(b)

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

20 Subparagraph 408HB(1)(b)(ii)

Omit "and".

21 At the end of paragraph 408HB(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of widow allowance payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

22 Subsection 408HB(2) (method statement, step 1)

Omit "or advance payment of widow allowance", substitute ", advance payment of widow allowance or special employment advance of widow allowance".

23 Paragraph 505A(1)(b)

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

24 Subparagraph 505A(1)(b)(ii)

Omit "and".

25 At the end of paragraph 505A(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of parenting payment payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

26 Subsection 505A(2) (method statement, step 1)

Omit "or advance payment of parenting payment", substitute ", advance payment of parenting payment or special employment advance of parenting payment".

27 Paragraph 560A(1)(b)

Repeal the paragraph, substitute:

(b): either or both of the following apply:

(i): instalments of youth allowance payable to the person are being paid (whether on the person's own behalf or not) to the credit of the account;
(ii): a special employment advance of youth allowance payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

28 Subsection 560A(2) (method statement, step 1)

After "youth allowance", insert "or special employment advance of youth allowance".

29 Paragraph 585A(1)(b)

Repeal the paragraph, substitute:

(b): either or both of the following apply:

(i): instalments of austudy payment payable to the person are being paid (whether on the person's own behalf or not) to the credit of the account;
(ii): a special employment advance of austudy payment payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

30 Subsection 585A(2) (method statement, step 1)

After "austudy payment", insert "or special employment advance of austudy payment".

31 Paragraph 655(1)(b)

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

32 Subparagraph 655(1)(b)(ii)

Omit "and".

33 At the end of paragraph 655(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of newstart allowance payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

34 Subsection 655(2) (method statement, step 1)

Omit "or advance payment of newstart allowance", substitute ", advance payment of newstart allowance or special employment advance of newstart allowance".

35 Paragraph 660XHB(1)(b)

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

36 Subparagraph 660XHB(1)(b)(ii)

Omit "and".

37 At the end of paragraph 660XHB(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of mature age allowance or mature age partner allowance payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

38 Subsection 660XHB(2) (method statement, step 1)

Omit "or advance payment of mature age allowance or mature age partner allowance", substitute ", advance payment of mature age allowance or mature age partner allowance or special employment advance of mature age allowance or mature age partner allowance".

39 Paragraph 660YHB(1)(b)

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

40 Subparagraph 660YHB(1)(b)(ii)

Omit "and".

41 At the end of paragraph 660YHB(1)(b)

Add:

(iii): a special employment advance, or an instalment of special employment advance, of mature age allowance payable to the person (whether on the person's own behalf or not) has been paid to the credit of the account; and

42 Subsection 660YHB(2) (method statement, step 1)

Omit "or advance payment of mature age allowance", substitute ", advance payment of mature age allowance or special employment advance of mature age allowance".

43 At the end of section 665

Add:

(4): A person is not qualified for an employment entry payment under this Part if the person is qualified for a special employment advance under Part 2.22A and has made a claim under section 1061EP in respect of the same employment.

44 After Part 2.22

Insert:

Part 2.22A—Special employment advances Division 1—Qualification for special employment advance 1061EM Qualification for special employment advance

(1): Subject to section 1061EO, a person is qualified for a special employment advance at a particular time (the relevant time ) only if:

(a): the person is qualified for a special employment advance qualifying entitlement at the relevant time; and
(b): the person has been receiving an income support payment for a continuous period of 3 months immediately before the day on which the person's application for the special employment advance is made; and
(c): either of the following applies:

(i): the person or, if the person is a member of a couple, the person's partner has earned from casual work in Australia, but has not received, income (the unreceived income );
(ii): the Secretary is satisfied that the person has received a definite offer of employment in Australia (the offered employment ) for a period of not less than 6 weeks and needs financial assistance from the Commonwealth to enable him or her to take up the employment; and

(d): subsection (2) or (3), as the case requires, applies for the purpose of determining whether the person is qualified for a special employment advance at the relevant time; and
(e): where subparagraph (c)(i) applies—the person is in severe financial hardship; and
(f): the Secretary is satisfied that the person will not suffer financial hardship as a result of the recovery by the Commonwealth of the special employment advance.

(2): This subsection applies for the purpose of determining whether a person is qualified for a special employment advance at the relevant time only where:

(a): the person's application for the advance was based on the effect of the unreceived income on the person's special employment advance qualifying entitlement; and
(b): the person is not a CDEP Scheme participant; and
(c): either of the following subparagraphs applies:

(i): if the person were qualified for the special employment qualifying entitlement on the next payday for the entitlement at a rate equal to the maximum basic rate of the entitlement, the rate of the entitlement on that payday would be reduced by at least 50% as a result of the person or the person's partner having earned the unreceived income;
(ii): subparagraph (i) does not apply in respect of the person but, if the person were qualified for the special employment qualifying entitlement on 2 or more paydays for the entitlement at a rate equal to the maximum basic rate of the entitlement, the average of the rates of the entitlement on those paydays would be reduced by at least 50% as a result of the person or the person's partner having earned the unreceived income.

(3): This subsection applies for the purpose of determining whether a person is qualified for a special employment advance at the relevant time only where the person's application for the advance was based on the person's need for financial assistance from the Commonwealth to enable him or her to take up the offered employment and:

(a): if the person were qualified for the special employment qualifying entitlement on each of the paydays for the entitlement that occur in the period of 6 weeks referred to in subparagraph (1)(c)(ii) at a rate equal to the maximum basic rate of the entitlement, the average of the rates of the entitlement on those paydays:

(i): would be reduced by at least 50% as a result of the person having taken up the offered employment; or
(ii): would be so reduced if Module J of the Youth Allowance Rate Calculator in section 1067G or Module E of the Austudy Payment Rate Calculator were disregarded; or

(b): the person would cease to be qualified for the special employment advance qualification upon his or her taking up the offered employment.

1061EN Meaning of in severe financial hardship

(1): For the purposes of paragraph 1061EM(1)(e) as it applies to a person who makes a claim for special employment advance, the person is in severe financial hardship if:

(a): where the person is not a member of a couple—the value of the person's liquid assets (within the meaning of subsection 14A(1)) is less than the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the person; or
(b): where the person is a member of a couple—the value of the person's liquid assets (within the meaning of subsection 14A(2)) is less than twice the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the person.

(2): If the person referred to in subsection (1) is a CDEP Scheme participant, then, in determining for the purposes of that subsection the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement payable to the person, the person's maximum basic rate is taken to be the rate that would be that maximum basic rate if sections 408CG, 500W, 552C, 614A, 660YCH and 771HK had not been enacted.

1061EO Person not qualified in certain circumstances

(1): A person is not qualified for a special employment advance if:

(a): the person is qualified for an employment entry payment under Part 2.13 and has made a claim under section 665 in respect of the offered employment; or
(b): the lump sum amount, or the total of the amounts of the instalments, as the case may be, of the special employment advance to which the person would be entitled under Division 4 is less than $50; or
(c): the person owes a debt to the Commonwealth (whether arising under this Act or not) and the debt is recoverable under Part 5.2 by means of deductions from the person's social security payment; or
(d): where subparagraph 1061EM(1)(c)(ii) applies in respect of the person—the person is participating in a program for the placing of people in employment and the program has been declared by the Secretary, in writing, to be a program to which this paragraph applies.

(2): A declaration under paragraph (1)(d) is a disallowable instrument.

Division 2—Claim for special employment advance 1061EP Claim

(1): A person who wants a special employment advance under this Part must make a proper claim for the advance in accordance with this Division.
(2): To be a proper claim, a claim must be made in writing and must be in accordance with a form approved by the Secretary.
(3): The claimant must specify the amount of special employment advance sought.

1061EQ Lodgment of claim

(1): To be a proper claim, a claim must be lodged:

(a): at an office of the Department; or
(b): at a place approved for the purpose by the Secretary; or
(c): with a person approved for the purpose by the Secretary.

(2): A place or person approved under subsection (1) must be a place or person in Australia.
(3): The claimant must be in Australia when the claim is lodged.

1061ER Provisions relating to claims

(1): Subject to subsection (2), if a claim based on the effect of the unreceived income on the claimant's special employment advance qualifying entitlement is lodged before the first payday for that entitlement on which an instalment of that entitlement is not payable or is reduced as a result of the claimant, or the claimant's partner, having earned the income, the claim is taken to have been made on that payday.
(2): If:

(a): the claimant's special employment advance qualifying entitlement referred to in subsection (1) is an entitlement in respect of which the Secretary has determined that this subsection applies; and
(b): the claim is lodged before the payday referred to in subsection (1);

the Secretary may treat the claim as having been made on a day earlier than that payday that the Secretary considers appropriate having regard to the kind of entitlement concerned.

(3): A claim based on the need for financial assistance from the Commonwealth to take up the offered employment must set out:

(a): particulars (including the duration) of the employment; and
(b): the way in which the financial assistance is to be expended to enable the claimant to take up the employment.

(4): This section has effect subject to section 1061ES.

1061ES Person contacting Department before lodging claim

(1): If:

(a): a person contacts the Department in relation to his or her claiming a special employment advance; and
(b): the person is, on the day on which he or she contacts the Department, qualified for the special employment advance; and
(c): the person lodges a claim for the special employment advance within 14 days after the day on which he or she contacts the Department; and
(d): the Department has a record of the person contacting the Department;

the person is taken to have made a claim for the special employment advance on the later of the following days:

(e): the day on which the person contacted the Department;
(f): the day on which the claim would, apart from this section, be taken under section 1061ER to be made.

(2): In this section:

contacts the Department includes contacts the Department by post or telephone or by the transmission of a message by the use of facsimile, computer equipment or any other electronic means.

1061ET Claim may be withdrawn

(1): A claimant for a special employment advance or a person acting on behalf of a claimant may withdraw a claim that has not been determined.
(2): A claim that is withdrawn is taken not to have been made.
(3): A withdrawal may be made orally or in writing.

Division 3—Determination of claim and payment of special employment advance 1061EU Secretary to determine claim

(1): The Secretary must determine the claim in accordance with this Act.
(2): Subject to subsection (3), the Secretary must grant the claim if the Secretary is satisfied that the claimant is qualified for the special employment advance.
(3): Subject to subsection (4), the Secretary must refuse a claim that is based on the effect of the unreceived income on the claimant's special employment advance qualifying entitlement if the Secretary is satisfied that the income will be received within 2 days after the claim is lodged.
(4): Subsection (3) does not apply if the Secretary considers that the claimant's financial needs are such that the claim should be granted.

1061EV Payment of special employment advance

If the claim is granted, the special employment advance is to be paid:

(a): subject to paragraph (b), in a lump sum as soon as practicable after the claim is granted; or
(b): if the Secretary considers that it is appropriate for the advance to be paid by instalments—by instalments at such times and in such amounts as the Secretary determines.

Division 4—Amount of special employment advance 1061EW Where claim based on effect of unreceived income on special employment advance qualifying entitlement

(1): This section applies where the claim was based on the effect of the unreceived income on the claimant's special employment advance qualifying entitlement.
(2): Subject to section 1061EY, the total amount of the special employment advance payable to the claimant is to be the smallest of the following amounts:

(a): the amount sought in the claim for the advance;
(b): the amount by which the instalment, or the sum of the amounts by which the instalments, of the claimant's special employment advance qualifying entitlement is or will be reduced because of the unreceived income;
(c): $500;
(d): if an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth—the difference between that amount and $500.

1061EX Where claim based on claimant's need for financial assistance to take up offered employment

(1): This section applies where the claim was based on the claimant's need for financial assistance to take up offered employment.
(2): Subject to the following provisions of this section and section 1061EY, the total amount of the special employment advance payable to the claimant is to be the smallest of the following amounts:

(a): the amount sought in the claim for the advance;
(b): the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;
(c): $500.

(3): If:

(a): an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth; and
(b): the sum of:

(i): the amount referred to in paragraph (a); and
(ii): the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;

is not more than $500;

the total amount of the special employment advance payable to the claimant is the amount referred to in subparagraph (b)(ii).

(4): If:

(a): an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth; and
(b): the sum of:

(i): the amount referred to in paragraph (a); and
(ii): the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;

is more than $500;

the following paragraphs have effect:

(c): where the amount referred to in paragraph (a) is less than $500 and the claimant satisfies the Secretary that the claimant would have sufficient financial resources to enable him or her to take up the offered employment if the total amount of the special employment advance payable were an amount equal to the difference between $500 and the amount referred to in paragraph (a)—the total amount of the special employment advance payable to the claimant is an amount equal to that difference;
(d): where paragraph (c) does not apply—no amount of special employment advance is payable to the claimant.

(5): If:

(a): the claimant is not a member of a couple; and
(b): the value of the claimant's liquid assets (within the meaning of subsection 14A(1)) exceeds the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the claimant;

the total amount of the special employment advance that, apart from this subsection, would be payable to the claimant under subsections (2) to (4) is reduced by the amount of the excess.

(6): If:

(a): the claimant is a member of a couple; and
(b): the value of the claimant's liquid assets (within the meaning of subsection 14A(2)) exceeds twice the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the claimant;

the total amount of the special employment advance that, apart from this subsection, would be payable to the claimant under subsections (2) to (4) is reduced by the amount of the excess.

(7): In determining for the purposes of subsection (5) or (6) the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to a claimant who is a CDEP Scheme participant, the claimant's maximum basic rate is taken to be the rate that would be that maximum basic rate if sections 408CG, 500W, 552C, 614A, 660YCH and 771HK had not been enacted.

1061EY Reduction of special employment advance by amount of any employment entry payment

If:

(a): a person claims a special employment advance; and
(b): an employment entry payment has been paid, or is payable, to the person in respect of the employment referred to in subparagraph 1061EM(1)(c)(i) or (ii);

the total amount of the special employment advance that, apart from this section, would be payable to the person is reduced by the amount of the employment entry payment.

Division 5—Payment of special employment advance 1061EZ Special employment advance to be paid to person or nominee

(1): Subject to subsection (3), an amount that is payable to a person under this Part is to be paid to the person.
(2): The Secretary may direct that the whole or a part of an amount that is payable to a person under this Part is to be paid to someone else on behalf of the person.
(3): If the Secretary gives a direction under subsection (2), the amount is to be paid in accordance with the direction.

1061EZA How payment is to be made

(1): An amount that is to be paid to a person under section 1061EZ may only be paid in accordance with this section.
(2): Subject to this section, the amount is to be paid to the credit of a bank account nominated and maintained by the person.
(3): The account may be an account that is maintained by the person either alone or jointly or in common with another person.
(4): If the person has not nominated an account for the purposes of subsection (2), then, subject to subsections (5) and (6), the amount is not to be paid.
(5): If:

(a): an amount has not been paid because of subsection (4); and
(b): the person nominates an account for the purposes of subsection (2);

the amount is to be paid under subsection (2).

(6): The Secretary may permit amounts payable under this Part to be paid to people or to particular classes of people in a different way or in different ways from that provided for by subsection (2).

Division 6—Protection of special employment advance 1061EZB Special employment advance to be absolutely inalienable

(1): Subject to this section and section 1359, a special employment advance is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

: Note: The effect of a garnishee order on a special employment advance is dealt with in the Part of this Chapter that deals with the relevant special employment advance qualifying entitlement. For example, the effect of a garnishee order on a special employment advance that has been paid to an account with a financial institution maintained by a person who is entitled to a disability support pension is dealt with in Part 2.3 (which deals with disability support pension).

(2): The Secretary may make deductions from an amount payable to a person under this Part if the recipient asks the Secretary:

(a): to make the deductions; and
(b): to pay the amounts to be deducted to the Commissioner of Taxation.

: Note: The Secretary must make deductions from a person's social security payment if requested by the Commissioner of Taxation (see section 1359).

(3): The Secretary may make deductions from an amount payable to a person under this Part if the recipient consents under section 1234A to the Secretary making the deductions.

: Note: Section 1234A enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a social security payment.

Division 7—Repayment of special employment advance 1061EZC Repayment of special employment advance

(1): If a person receives a special employment advance or an instalment of a special employment advance under this Part, the person must repay the special employment advance or instalment to the Commonwealth by one or more of the following methods:

(a): deductions from the person's special employment advance qualifying entitlement under Chapter 3 (General provisions relating to payability and rates);
(b): a method provided for by Chapter 5 (Overpayments and debt recovery);
(c): a method (other than a method described in paragraph (a) or (b)) that is acceptable to both the person and the Secretary.

(2): Subsection (1) does not affect the Secretary's powers and duties under Part 5.4 (Non-recovery of debts) if the amount of the special employment advance or instalment that has not been repaid becomes a debt due to the Commonwealth.

45 Part 3.2 (Pension Rate Calculator A, Module A, point 1064-A1, method statement, step 12 )

Repeal the step, substitute:

Step 12. The rate of pension is the amount obtained by:

(a) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and
(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and
(c) adding any amount payable by way of remote area allowance (see Module H).

46 Part 3.3 (Pension Rate Calculator B, Module A, point 1065-A1, method statement, step 5 )

Repeal the step, substitute:

Step 5. Work out the non-income/assets tested rate by:

(a) subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and
(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and
(c) adding any amount payable by way of remote area allowance (see Module E).

47 Part 3.4 (Pension Rate Calculator C, Module A, point 1066-A1, method statement, step 12)

Repeal the step, substitute:

Step 12. The rate of pension is the amount obtained by:

48 Part 3.4A (Pension Rate Calculator D, Module A, point 1066A-A1, method statement, step 13)

Repeal the step, substitute:

Step 13. The rate of pension is the amount obtained by:

49 Part 3.4B (Pension Rate Calculator E, Module A, point 1066B-A1, method statement, step 6)

Repeal the step, substitute:

Step 6. Work out the non-income/assets tested rate by:

50 Part 3.5 (Youth Allowance Rate Calculator, Module A, point 1067G-A1, method statement, step 14)

Repeal the step, substitute:

Step 14. The rate of allowance is the amount obtained by:

(a) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and
(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and
(c) except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of allowance is being worked out, adding any amount payable by way of remote area allowance (see Module K).

51 Part 3.5A (Austudy Payment Rate Calculator, Module A, point 1067L-A1, method statement, step 6)

Repeal the step, substitute:

Step 6. The rate of payment is the amount obtained by:

52 Part 3.6 (Benefit Rate Calculator B, Module A, point 1068-A1, method statement, step 7)

Repeal the step, substitute:

Step 7. The rate of benefit is the amount obtained by:

(a) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and
(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and
(c) except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of benefit is being worked out, adding any amount payable by way of remote area allowance (see Module J).

53 Part 3.6A (Pension PP (Single) Rate Calculator, Module A, point 1068A-A1, method statement, step 7)

Repeal the step, substitute:

Step 7. The rate of pension PP (single) is the amount obtained by:

54 After Part 3.16A

Insert:

Part 3.16B—Special employment advance deductions

1206Q Special employment advance deduction

(1): Subject to subsection (2) and section 1206T, a special employment advance deduction is to be made from the rate of a social security entitlement that is payable to a person if:

(a): the person has received a special employment advance or an instalment of a special employment advance; and
(b): the person has not yet repaid the whole of the special employment advance or instalment; and
(c): the amount of the special employment advance or instalment that has not been repaid is not a debt under section 1224EA.

: Note: For social security entitlement see subsection 23(1).

(2): A special employment advance deduction may be made from a person's rate on:

(a): if the special employment advance is paid as a lump sum—the payday next following the day on which the lump sum is paid; or
(b): if the special employment advance is paid by instalments—the payday next following the day on which the last instalment of the special employment advance is paid;

or on any later payday.

(3): In this section:

social security entitlement includes a PP (partnered).

1206R Amount of special employment advance deduction—basic calculation

Subject to sections 1206S, 1206T, 1206U and 1206V, a special employment advance deduction is such amount as the Secretary determines.

1206S Person may request larger special employment advance deduction

(1): Subject to subsection (2) and sections 1206T, 1206U and 1206V, a person's special employment advance deduction is increased to a larger amount if the person asks the Secretary in writing for the special employment advance deduction to be the larger amount.
(2): Subsection (1) does not apply if the Secretary is satisfied that the person would suffer severe financial hardship if the special employment advance deduction were the larger amount.

1206T Reduction of special employment advance deduction in cases of severe financial hardship

(1): Subject to subsection (2) and sections 1206U and 1206V, if:

(a): a person applies in writing to the Secretary for a special employment advance deduction to be decreased, or to be stopped, because of severe financial hardship; and
(b): the Secretary is satisfied that:

(i): the person's circumstances are exceptional and could not reasonably have been foreseen at the time of the person's claim for the special employment advance; and
(ii): the person would suffer severe financial hardship if the special employment advance deduction that would otherwise apply were to continue;

the Secretary may determine in writing that, for the period stated in the determination, the special employment advance deduction is to be a lesser amount (which may be a nil amount) stated in the determination.

(2): At any time while the determination is in force, the Secretary may:

(a): vary the determination so as to require to be deducted from the person's rate a special employment advance deduction larger than the deduction (if any) previously applying under the determination, but smaller than the deduction applying immediately before the determination; or
(b): revoke the determination;

but only if the Secretary is satisfied that the person would not suffer severe financial hardship because of the variation or revocation.

(3): A variation or revocation of a determination must be in writing.

1206U The final special employment advance deduction

(1): If a special employment advance deduction that would otherwise be deducted from a person's rate exceeds the part of the special employment advance that the person has not yet repaid (by previous deductions under this Part or otherwise), the amount of that special employment advance deduction is to be equal to the part that the person has not yet repaid.
(2): This section has effect subject to section 1206V.

1206V Provisional payment rate insufficient to cover special employment advance deduction

(1): If the provisional payment rate referred to in the relevant Rate Calculator is less than the special employment advance deduction would be apart from this subsection, the special employment advance deduction is taken to be equal to the provisional payment rate.
(2): If:

(a): a person's rate of pension is the notional income/assets tested rate referred to in the Method statement in point 1065-A1 in Pension Rate Calculator B; and
(b): the provisional payment rate worked out for the person using Pension Rate Calculator A in accordance with Step 1 of the Method statement in point 1065-A1 in Pension Rate Calculator B is less than the special employment advance deduction would be apart from this subsection;

the special employment advance deduction is taken to be equal to the provisional payment rate referred to in paragraph (b).

(3): If:

(a): a person's rate of pension is the non-income/assets tested rate referred to in the Method statement in point 1065-A1 in Pension Rate Calculator B; and
(b): the maximum payment rate for the person worked out in Step 4 of that Method statement is less than the special employment advance deduction would be apart from this subsection;

the special employment advance deduction is taken to be equal to the maximum payment rate referred to in paragraph (b).

(4): If:

(a): a person's rate of pension is the notional income/assets tested rate referred to in the Method statement in point 1066B-A1 in Pension Rate Calculator E; and
(b): the provisional payment rate worked out for the person using Pension Rate Calculator D in accordance with Step 1 in the Method statement in point 1066B-A1 in Pension Rate Calculator E is less than the special employment advance deduction would be apart from this subsection;

the special employment advance deduction is taken to be equal to the provisional payment rate referred to in paragraph (b).

(5): If:

(a): a person's rate of pension is the non-income/assets tested rate referred to in the Method statement in point 1066B-A1 in Pension Rate Calculator E; and
(b): the maximum payment rate for the person worked out in Step 5 of that Method statement is less than the special employment advance deduction would be apart from this subsection;

the special employment advance deduction is taken to be equal to the maximum payment rate referred to in paragraph (b).

1206W Rounding of amounts

Amounts worked out under this Part must be rounded to the nearest cent (rounding 0.5 cent upwards).

55 After section 1224E

Insert:

1224EA Debts arising from special employment advances of special employment advance qualifying entitlements

If:

(a): a person has received a special employment advance of a special employment advance qualifying entitlement (the first entitlement ) or an instalment of such an advance; and
(b): the first entitlement ceases to be payable to the person; and
(c): when the first entitlement ceases to be payable, the person has not repaid the whole of the advance or instalment; and
(d): the person does not receive another special employment advance qualifying entitlement or PP (partnered) immediately after the first entitlement ceases to be payable;

the amount that has not been repaid is a debt due to the Commonwealth.

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