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SUPERANNUATION LEGISLATION AMENDMENT ACT (No. 2) 1986 No. 151, 1986 - SECT 32
32. After section 73 of the Principal Act the following section is inserted:
Reduction of invalidity pensions because of earnings
"73A. (1) In this section-
'earnings rate', in relation to an invalidity pensioner, means the amount per
annum last estimated by the Commissioner under sub-section (3) as the annual
rate of the personal earnings of the pensioner;
'invalidity pensioner' means a person to whom invalidity pension is payable
and who has not attained the age of 65 years;
'personal earnings', in relation to an invalidity pensioner, means salary,
wages, fees or other amounts received by the pensioner for services rendered,
or work performed, by the pensioner, and includes-
(a) remuneration paid to the pensioner as the director of a company; and
(b) commission received by the pensioner for canvassing, collecting or
similar activities;
'prescribed maximum rate' means-
(a) before the operation of sub-section (2)-$19,200 per annum increased by
the relevant percentage of that rate; or
(b) after the operation of that sub-section-the rate that is the
prescribed maximum rate by virtue of that sub-section;
'prescribed percentage', in relation to a prescribed year, means the
prescribed percentage in relation to that year for the purposes of section
148;
'prescribed year' means a prescribed year within the meaning of Part X, other
than a year commencing before 1 July 1988;
'relevant maximum rate', in relation to an invalidity pensioner, means-
(a) the prescribed maximum rate; or
(b) 75% of the amount per annum that the Commissioner, having regard to
any changes in the rates of remuneration that have occurred since the
pensioner ceased to be an eligible employee and any other matters that
the Commissioner considers relevant, determines would have been the
annual rate of salary of the pensioner if the pensioner had not ceased
to be an eligible employee and had continued to occupy the position
held immediately before so ceasing,
whichever is the greater;
'relevant pension rate', in relation to an invalidity pensioner, means-
(a) where the pensioner did not make an election under section 68 or
71-the annual rate of the invalidity pension of the pensioner; or
(b) where the pensioner made such an election-the rate that would have
been the annual rate of that pension if the pensioner had not made the
election;
'relevant percentage' means the percentage that represents A-B expressed as a
percentage of B, where-
A is the only, or earliest, all groups consumer price index number for the
weighted average of the 8 capital cities published by the Australian
Statistician in respect of the March quarter of 1987; and
B is the only, or earliest, all groups consumer price index number for the
weighted average of the 8 capital cities published by the Australian
Statistician in respect of the June quarter of 1986.
"(2) Where rates at which invalidity pensions were payable immediately before
the commencement of a prescribed year are increased in accordance with section
148, the rate that, immediately before that commencement, was (because of
paragraph (a) of the definition of 'prescribed maximum rate' or the previous
operation of this sub-section) the prescribed maximum rate is increased, with
effect from that commencement, by the prescribed percentage, in relation to
that prescribed year, of that rate.
"(3) Where an invalidity pensioner or a person acting on behalf of the
pensioner gives the Commissioner particulars of the pensioner's personal
earnings and an estimate of those earnings for the next 12 months (whether in
compliance with a notice under sub-section 74 (1) or otherwise), the
Commissioner shall estimate the amount per annum that is the annual rate of
the personal earnings of the pensioner.
"(4) Subject to sub-sections (5) and (6) but notwithstanding any other
provision of this Act, during any period during which the sum of the relevant
pension rate of an invalidity pensioner and the earnings rate of the pensioner
exceeds the relevant maximum rate for the pensioner, then-
(a) where the lesser of the excess or of that earnings rate is less than
the annual rate of the invalidity pension of the pensioner-the amount
of the fortnightly instalments of that pension shall be ascertained as
if the annual rate of the pension were reduced by the lesser of the
excess or of that earnings rate; or
(b) where the lesser of the excess or of that earnings rate is equal to or
exceeds the annual rate of that pension-the pension is suspended.
"(5) If, after making a calculation for the purposes of sub-section (4), the
Commissioner ascertains that an invalidity pensioner has been, or is being,
paid instalments of invalidity pension, that, by virtue of that sub-section,
should not have been, or be, paid or the amount of which should have been, or
be, lower, then, notwithstanding that sub-section, those instalments shall be
taken to have been, or be, lawfully paid.
"(6) If, after making a calculation for the purposes of sub-section (4), the
Commissioner ascertains that an invalidity pensioner has, because of a
previous calculation for those purposes, not been paid instalments of
invalidity pension that should have been paid or been paid instalments of
invalidity pension the amount of which should have been higher, that
invalidity pensioner is not entitled to be paid, but may be paid, the amount
of those instalments or of the balance of those instalments, as the case may
be.
"(7) Where an invalidity pensioner-
(a) is, on the commencement of this section, in receipt of personal
earnings; or
(b) begins, after the commencement of this section, to receive personal
earnings, the pensioner, or a person acting on behalf of the
pensioner, shall give the Commissioner particulars in writing of these
personal earnings and an estimate of the amount of the personal
earnings that the pensioner expects to receive in the next 12 months.
"(8) Where-
(a) an estimate of the personal earnings of an invalidity pensioner has
been given to the Commissioner under this Act; and
(b) the pensioner or a person acting on behalf of the pensioner revises
that estimate, the pensioner or the person acting on behalf of the
pensioner shall give to the Commissioner particulars in writing of the
personal earnings of the pensioner and an estimate of those earnings
for the next 12 months.
"(9) In ascertaining, for the purposes of this Act or of the superseded Act,
the annual rate of an invalidity pension or the rate at which an invalidity
pension is payable, any reduction or suspension under this section shall be
disregarded but nothing in this sub-section or in any other provision of this
Act or in any provision of the superseded Act shall be taken to imply that a
person is entitled to be paid an amount not paid because of such a reduction
or suspension.".
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