Commonwealth Numbered Acts

SOCIAL SECURITY (BUDGET AND OTHER MEASURES) LEGISLATION AMENDMENT ACT 1993 No. 121, 1993 - SCHEDULE 2

                            SCHEDULE 2              Section 8

AMENDMENTS CONSEQUENTIAL UPON DIVISION 3 OF PART 2
PART 1-AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 1. Paragraph 577(2)(a): Omit
"or 583", substitute ", 583 or 583AA". 2. After section 583: Insert: Automatic
rate reduction-failure to inform Department of payment for remunerative work
where earnings credit account balance available "583AA. If:

   (a)  a person who is receiving job search allowance is given a notice under
        section 574; and

   (b)  the notice requires the person to inform the Department of income for
        remunerative work undertaken by the person or the person's partner;
        and

   (c)  the person fails to notify the Department of income of that kind in
        accordance with the notice; and

   (d)  the person has an earnings credit account balance for the purposes of
        Division 5 of Part 3.10; the allowance becomes payable to the person
        at the reduced rate from the first payday after the day on which the
        person's earnings credit account balance is reduced to nil.". 3.
        Paragraph 660(2)(a): Insert ", 660E or 660FAA" after "660F". 4. After
        section 660F: Insert: Automatic rate reduction-failure to inform
        Department of payment for remunerative work where earnings credit
        account balance available "660FAA. If:

   (a)  a person who is receiving newstart allowance is given a notice under
        section 657; and

   (b)  the notice requires the person to inform the Department of income for
        remunerative work undertaken by the person or the person's partner;
        and

   (c)  the person fails to notify the Department of income of that kind in
        accordance with the notice; and

   (d)  the person has an earnings credit account balance for the purposes of
        Division 5 of Part 3.10; the allowance becomes payable to the person
        at the reduced rate from the first payday after the day on which the
        person's earnings credit account balance is reduced to nil.". 5.
        Paragraph 728B(2)(a): Omit "or 728H", substitute ", 728H or 728HAA".
        6. After section 728H: Insert: Automatic rate reduction-failure to
        inform Department of payment for remunerative work where earnings
        credit account balance available "728HAA. If:

   (a)  a person who is receiving sickness allowance is given a notice under
        section 727; and

   (b)  the notice requires the person to inform the Department of income for
        remunerative work undertaken by the person or the person's partner;
        and

   (c)  the person fails to notify the Department of income of that kind in
        accordance with the notice; and

   (d)  the person has an earnings credit account balance for the purposes of
        Division 5 of Part 3.10; the allowance becomes payable to the person
        at the reduced rate from the first payday after the day on which the
        person's earnings credit account balance is reduced to nil.". 7.
        Section 1064 (Pension Rate Calculator A-point 1064-E1- Note 2-last dot
        point): Omit the dot point, substitute the following:

". pensions earnings credit (sections 1113 to 1115);
. benefits earnings credit (sections 1115A to 1115C);
. VEA earnings credit (point 1064-E2A).". 8. Section 1064 (Pension Rate
Calculator A): After point 1064-E2, insert: Partner's VEA earnings credit to
be taken into account "1064-E2A. If:

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

   (b)  the person's partner is receiving a service pension; and

   (c)  an amount earned by the partner is disregarded under section 49 of the
        Veterans' Entitlements Act; that amount is also to be disregarded in
        working out the ordinary income of the person for the purposes of
        point 1064-E2.". 9. Section 1066 (Pension Rate Calculator C-point
        1066-E1- Note 2-last dot point): Omit the dot point, substitute the
        following:
    " .     pensions earnings credit (sections 1113 to 1115);

      .     benefits earnings credit (sections 1115A to 1115C);

      .     VEA earnings credit (point 1066-E2A).".
10. Section 1066 (Pension Rate Calculator C): After point 1066-E2, insert:
Partner's VEA earnings credit to be taken into account "1066-E2A. If:

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

   (b)  the person's partner is receiving a service pension; and

   (c)  an amount earned by the partner is disregarded under section 49 of the
        Veterans' Entitlements Act; that amount is also to be disregarded in
        working out the ordinary income of the person for the purposes of
        point 1066-E2.". 11. Section 1066A (Pension Rate Calculator D-point
        1066A-F1- Note 2-last dot point): Omit the dot point, substitute the
        following:

". pensions earnings credit (sections 1113 to 1115);
. benefits earnings credit (sections 1115A to 1115C);
. VEA earnings credit (point 1066A-F2AA).". 12. Section 1066A (Pension Rate
Calculator D): After point 1066A-F2, insert: Partner's VEA earnings credit to
be taken into account "1066A-F2AA. If:

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

   (b)  the person's partner is receiving a service pension; and

   (c)  an amount earned by the partner is disregarded under section 49 of the
        Veterans' Entitlements Act; that amount is also to be disregarded in
        working out the ordinary income of the person for the purposes of
        point 1066A-F2.". 13. Section 1067 (Benefit Rate Calculator A-point
        1067-H1- Note 3): Insert after the last dot point:

". pensions earnings credit (sections 1113 to 1115);
. benefits earnings credit (sections 1115A to 1115C);
. VEA earnings credit (point 1067-H3).". 14. Section 1067 (Benefit Rate
Calculator A-point 1067-H3): Omit, substitute: Partner's VEA earnings credit
to be taken into account "1067-H3. If:

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

   (b)  the person's partner is receiving a service pension; and

   (c)  an amount earned by the partner is disregarded under section 49 of the
        Veterans' Entitlements Act; that amount is also to be disregarded in
        working out the ordinary income of the person for the purposes of
        point 1067-H2.". 15. Section 1068 (Benefit Rate Calculator B-point
        1068-G1- Note 3): Insert after the last dot point:

". pensions earnings credit (sections 1113 to 1115);
. benefits earnings credit (sections 1115A to 1115C);
. VEA earnings credit (point 1068-G3).". 16. Section 1068 (Benefit Rate
Calculator B-point 1068-G3): Omit, substitute: Partner's VEA earnings credit
to be taken into account "1068-G3. If:

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

   (b)  the person's partner is receiving a service pension; and

   (c)  an amount earned by the partner is disregarded under section 49 of the
        Veterans' Entitlements Act; that amount is also to be disregarded in
        working out the ordinary income of the person for the purposes of
        point 1068-G2.". 17. Heading to Division 4 of Part 3.10: Add at the
        end "(pensions)". 18. Section 1113:

   (a)  Omit "the ordinary income test to the person", substitute "an ordinary
        income test to the person or the person's partner".

   (b)  Add at the end the following Note:

"Note: For 'ordinary income test' see:
. Pension Rate Calculator A (Module E);
. Pension Rate Calculator C (Module E);
. Pension Rate Calculator D (Module F);
. Benefit Rate Calculator A (Module H);
. Benefit Rate Calculator B (Module G).". 19. Section 1115 (Earnings Credit
Account Balance Calculator-heading): Add at the end "A". 20. Section 1115
(Earnings Credit Account Balance Calculator): After point 1115-B3 insert in
Module B: Transferees from social security benefit "1115-B4. If:

   (a)  a person commences to receive a social security pension; and

   (b)  immediately before commencing to receive the pension, the person was
        receiving a social security benefit and had an earnings credit account
        balance under this Act; and

   (c)  either:

        (i)    the person is not a member of a couple; or

        (ii)   the person is a member of a couple but the person's partner
               does not have an earnings credit account under this Division;
               the opening balance of the person's earnings credit account is
               the amount of that account balance. "1115-B5. If:

   (a)  a person commences to receive a social security pension; and

   (b)  immediately before commencing to receive the pension, the person was
        receiving a social security benefit and had an earnings credit account
        balance under this Act; and

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

   (d)  the person and the person's partner have a joint earnings credit
        account; the amount of that benefits earnings credit account balance
        is to be added to the opening balance of the joint earnings credit
        account. Preservation of benefits earnings credit account balances for
        13 weeks "1115-B6. If:

   (a)  a person commences to receive a social security pension; and

   (b)  within the period of 13 weeks immediately before the person commences
        to receive the social security pension, the person was receiving a
        social security benefit; and

   (c)  immediately before the person ceased to receive the social security
        benefit, the person had an earnings credit account balance that was
        greater than nil; the opening balance of the person's earnings credit
        account balance is the closing balance of the earlier earnings credit
        account.".
PART 2-AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 21. Section 41
(Service Pension Rate Calculator Where There Are No Dependent Children-point
41-D1-Note 2-last dot point): Omit, substitute:

". earnings credit under this Act (section 49);
. earnings credit under the Social Security Act (see point 41-D2A).". 22.
Section 41 (Service Pension Rate Calculator Where There Are No Dependent
Children): After point 41-D2, insert: Partner's DSS earnings credit to be
taken into account "41-D2A. If:

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

   (b)  the person's partner is receiving a social security pension or
        benefit; and

   (c)  an amount earned by the partner is disregarded under section 1113 or
        1115A of the Social Security Act; that amount is also to be
        disregarded in working out the ordinary income of the person for the
        purposes of point 41-D2.". 23. Section 42 (Service Pension Rate
        Calculator Where There Are Dependent Children-point 42-E1-Note 2-last
        dot point): Omit, substitute:

". earnings credit under this Act (section 49);
. earnings credit under the Social Security Act (see point 42-E2A).". 24.
Section 42 (Service Pension Rate Calculator Where There Are Dependent
Children): After point 42-E2, insert: Partner's DSS earnings credit to be
taken into account "42-E2A. If:

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

   (b)  the person's partner is receiving a social security pension or
        benefit; and

   (c)  an amount earned by the partner is disregarded under section 1113 or
        1115A of the Social Security Act; that amount is also to be
        disregarded in working out the ordinary income of the person for the
        purposes of point 42-E2.". 25. Section 44 (Service Pension Rate
        Calculator For Widows, Widowers and Non-illness Separated
        Spouses-point 44-D1-Note 2 -last dot point): Omit, substitute:

". earnings credit under this Act (section 49);
. earnings credit under the Social Security Act (see point 44-D2A).". 26.
Section 44 (Service Pension Rate Calculator For Widows, Widowers and
Non-illness Separated Spouses): After point 44-D2, insert: Partner's DSS
earnings credit to be taken into account "44-D2A. If:

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

   (b)  the person's partner is receiving a social security pension or
        benefit; and

   (c)  an amount earned by the partner is disregarded under section 1113 or
        1115A of the Social Security Act; that amount is also to be
        disregarded in working out the ordinary income of the person for the
        purposes of point 44-D2.".