Commonwealth Numbered Acts

PRIMARY INDUSTRIES AND ENERGY LEGISLATION AMENDMENT ACT (No. 2) 1997 No. 94, 1997 - SCHEDULE 9

Schedule 9-Amendment of the Social Security Act 1991 1 After section 1227
Insert: 1227A Debts arising under the Farm Household Support Act 1992 in
respect of drought relief payment

(1) A debt that is recoverable under section 56 of the Farm  Household Support
Act 1992 in respect of an amount of drought relief payment is also a debt that
is due to, and recoverable by, the Commonwealth under this Act.

(2) The debt may be recovered by the Commonwealth by means of:

   (a)  if the person liable to pay the debt is receiving a drought relief
        payment under the Farm Household Support Act 1992-deductions from that
        person's drought relief payment; or

   (b)  if the person liable to pay the debt is receiving a social security
        payment under this Act-deductions from that person's social security
        payment; or

   (c)  if section 1234A applies to another person who is receiving a social
        security payment under this Act-deductions from that other person's
        social security payment; or

   (d)  legal proceedings; or

   (e)  garnishee notice. Note 1: For deductions see sections 1231, 1231A and
        1234A. Note 2: For legal proceedings see section 1232. Note 3: For
        garnishee notice see section 1233. Note 4: If the person does not pay
        the debt within 3 months after receiving a notice of the amount of the
        debt, the amount of the debt will increase under section 1229. 2
        Section 1230B
After "1227", insert ", 1227A". 3 Section 1231AA
Omit "Sections 1231", substitute "Sections 1231, 1231A". 4 Paragraph 1231AA(a)
Omit "section 1231", substitute "sections 1231 and 1231A". 5 After paragraph
1231(1)(a)
Insert:

   (aa) a debt recoverable under section 1227A; 6 After section 1231
Insert: 1231A Deductions from debtor's drought relief payment

(1) If:

   (a)  a person is liable to pay a debt under section 56 of the Farm 
        Household Support Act 1992 ; and

   (b)  the person is receiving drought relief payment under that Act; the
        debt is to be deducted from the person's drought relief payment in the
        following way:
Method statement Step 1. Take the amount, decided under subsection (2), by
which each instalment of the person's drought relief payment is to be reduced.
Step 2. Each instalment of the person's drought relief payment is to be
reduced by that amount, until the sum of those amounts is equal to the debt.

(2) The Secretary is to decide in each case the amount by which each
instalment of the person's drought relief payment is to be reduced, and may
vary the amount from time to time.

(3) The debt must be deducted in accordance with this section unless:

   (a)  the Secretary takes action under Part 5.4 (write off and waiver) in
        relation to the amount; or

   (b)  the amount is otherwise recovered by the Commonwealth under another
        provision of this Chapter.

(4) A claim under this section for the recovery of a debt is not to be
commenced after the end of the period of 6 years starting on the day on which
the debt arose. 7 Subsection 1233(1)
After "section" (second occurring), insert "1227A or". 8 Application
The amendments of the Social Security Act 1991 made by this Schedule apply to
any debt that is recoverable under section 56 of the Farm  Household Support
Act 1992 in respect of an amount of drought relief payment, whether the debt
arose before the commencement of the amendments or not.

[Minister's second reading speech made in-
House of Representatives on 26 March 1997
Senate on 16 June 1997]