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FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS AND OTHER LEGISLATION AMENDMENT (BUDGET AND OTHER MEASURES) ACT 2011 (NO. 34, 2011) - SCHEDULE 6

Pension reform measures

   

Social Security Act 1991

1  Paragraph 8(1A)(b)

Repeal the paragraph, substitute:

                     (b)  that includes, but is not limited to:

                              (i)  salary, wages, commissions and employment-related fringe benefits that are so earned, derived or received or taken to have been so earned, derived or received; and

                             (ii)  if the person is engaged on a continuing basis in that employer/employee relationship--a leave payment to the person;

2  Paragraph 8(1A)(e)

Repeal the paragraph, substitute:

                     (e)  if the person is not engaged on a continuing basis in that employer/employee relationship--a leave payment to the person; or

3  Subsection 8(1C)

Omit "paragraph (1A)(e)", substitute "subsection (1A)".

4  Paragraph 8(1C)(a)

Omit "sick leave", substitute "personal/carer's leave".

5  Subsection 1073AA(6)

Repeal the subsection (not including the examples), substitute:

             (6)  If the person is a member of a couple, apply this section in relation to the person, and to the person's partner, before applying point 1064-E2 or point 1066-E2 (whichever is relevant).

6  Subsection 1073AA(6) (example 1)

After "couple", insert "and subsection (1) applies to David and Amy".

7  Subsection 1073AA(6) (example 2)

After "couple", insert "and subsection (1) applies to Ian and Simone".

8  At the end of section 1073AA

Add:

             (7)  In working out a person's employment income for the purposes of this section, disregard subsection 8(1B).

             (8)  If:

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

                     (b)  the person's partner has an amount (the exempt amount ) of employment income (within the meaning of section 46AB of the Veterans' Entitlements Act 1986 ) disregarded under section 46AA of that Act;

then, in applying point 1064-E2 or point 1066-E2 (whichever is relevant), the ordinary income of the person's partner is to be reduced by an amount equal to the exempt amount.

Veterans' Entitlements Act 1986

9  Subsection 46AA(5)

Repeal the subsection (not including the examples), substitute:

Interpretation

             (5)  If the person is a member of a couple, apply this section in relation to the person, and to the person's partner, before applying Point SCH6-E3 of Schedule 6.

10  Subsection 46AA(5) (example 1)

After "couple", insert "and subsection (1) applies to David and Amy".

11  Subsection 46AA(5) (example 2)

After "couple", insert "and subsection (1) applies to Ian and Simone".

12  After subsection 46AA(5)

Insert:

          (5A)  If:

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

                     (b)  the person's partner has an amount (the exempt amount ) of employment income (within the meaning of the Social Security Act 1991 ) disregarded under section 1073AA of that Act;

then, in applying Point SCH6-E3 of Schedule 6, the ordinary/adjusted income of the person's partner is to be reduced by an amount equal to the exempt amount.

13  Paragraph 46AB(1)(b)

Repeal the paragraph, substitute:

                     (b)  that includes, but is not limited to:

                              (i)  salary, wages, commissions and employment-related fringe benefits that are so earned, derived or received or taken to have been so earned, derived or received; and

                             (ii)  if the person is engaged on a continuing basis in that employer/employee relationship--a leave payment to the person;

14  Paragraph 46AB(1)(e)

Repeal the paragraph, substitute:

                     (e)  if the person is not engaged on a continuing basis in that employer/employee relationship--a leave payment to the person; or

15  Subsection 46AB(2)

Omit "paragraph (1)(e)", substitute "subsection (1)".

16  Paragraph 46AB(2)(a)

Omit "sick leave", substitute "personal/carer's leave".


 



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