Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT ACT (No. 1) 1995 No. 104, 1995 - SCHEDULE 16

                          SCHEDULE 16                   Section 4

AMENDMENTS RELATING TO COMPENSATION RECOVERY AND
RELATED MATTERS
PART 1-AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 COMMENCING
ON ROYAL ASSENT 1. Section 3 (Index): Insert in their respective appropriate
alphabetical positions (determined on a letter-by-letter basis):
"former payment type                               17(1)

invalid wife pension                               17(1)

special needs disability support wife pension      17(1)

special needs invalid wife pension                 17(1)".
2. Subsection 17(1) (paragraph (d) of the definition of "compensation affected
payment"): Omit the paragraph. 3. Subsection 17(1) (definition of
"compensation affected payment"): Add at the end: "or (k) a former payment
type;". 4. Subsection 17(1) (definition of "disability support wife pension"):
Omit "is receiving", substitute "receives". 5. Subsection 17(1): Insert the
following definitions: "'former payment type' means: (a) an invalid pension
under the 1947 Act; or (b) an invalid pension under this Act as previously in
force; or (c) a sheltered employment allowance under the 1947 Act; or (d) a
sheltered employment allowance under this Act as previously in force; or (e)
an unemployment benefit under the 1947 Act; or (f) a sickness benefit under
the 1947 Act; or (g) a special benefit under the 1947 Act; or (h) a sickness
benefit under this Act as previously in force; or (i) a rehabilitation
allowance under the 1947 Act payable in place of: (i) an invalid pension under
the 1947 Act; or (ii) a sheltered employment allowance under the 1947 Act; or
(iii) an unemployment benefit under the 1947 Act; or (iv) a sickness benefit
under the 1947 Act; or (v) a special benefit under the 1947 Act; or (j) a
rehabilitation allowance under this Act as previously in force payable in
place of: (i) a disability support pension; or (ii) an invalid pension under
this Act as previously in force; or (iii) a sheltered employment allowance
under this Act as previously in force; or (iv) a social security benefit; or
(v) a sickness benefit under this Act as previously in force; or (k) an
invalid wife pension under the 1947 Act; or (l) an invalid wife pension under
this Act as previously in force; or (m) a special needs invalid pension under
this Act as previously in force; or (n) a special needs invalid wife pension
under this Act as previously in force; 'invalid wife pension' means: (a) in
relation to the 1947 Act, a wife's pension under the 1947 Act for a woman
whose husband received an invalid pension under the 1947 Act; or (b) in
relation to this Act as previously in force, a wife pension for a woman whose
partner received an invalid pension under this Act as previously in force;
'special needs disability support wife pension' means a special needs wife
pension for a woman whose partner receives a special needs disability support
pension; 'special needs invalid wife pension' means a special needs wife
pension for a woman whose partner received a special needs invalid pension
under this Act as previously in force;". 6. Subsection 17(2): Omit "the whole
or part of". 7. After subsection 17(2A): Insert: "(2B) For the purposes of
this Act, if: (a) a person receives more than one lump sum payment, whether
simultaneously or at different times, in relation to one or more injuries
arising from the same event (see subsection (5A)); and (b) at least one of the
payments is made wholly or partly in respect of lost earnings or lost capacity
to earn; the person is taken to receive one lump sum compensation payment,
made wholly or partly in respect of lost earnings or lost capacity to earn, of
an amount equal to the sum of those lump sum payments. "(2C) A reference in
paragraph (2B)(a) to an injury includes a reference to a disease or
condition.". 8. Paragraph 17(4)(a): Omit "in respect of lost earnings or lost
capacity to earn". 9. Paragraph 17(4)(b): Omit "in respect of the lost
earnings or lost capacity to earn". 10. Subsection 17(5A): After "the purposes
of" insert "subsection (2B) of this section and". 11. Subsection 1163(1): Omit
the subsection, substitute: "(1) If a person is or may be entitled to or
receives compensation, payments of a compensation affected payment to the
person or the person's partner might be affected under this Part. Note: For
'compensation affected payment' see subsection 17(1).". 12. Subsection
1163(2): Omit "pension, benefit or allowance", substitute "compensation
affected payment". 13. Subsection 1163(3): Omit the subsection (but not the
Notes), substitute: "(3) If the compensation is a lump sum compensation
payment, the compensation affected payment might cease to be payable for a
period (based on the amount of the lump sum) and some or all of the payments
of the compensation affected payment might be repayable.". 14. Subsection
1163(4): Omit "pension, benefit or allowance", substitute "compensation
affected payment". 15. Subsections 1163(5) and (6): Omit the subsections
(including the Notes), substitute: "(5) Subject to subsection (6), payments of
a compensation affected payment will only be affected under this Part if: (a)
the compensation is received on or after 1 May 1987; and (b) either: (i) if
the compensation affected payment is a rehabilitation allowance under the 1947
Act-the rehabilitation allowance is payable in place of a compensation
affected payment that was claimed on or after 1 May 1987; or (ii) in any other
case-the claim for the compensation affected payment was made on or after 1
May 1987. "(6) Despite subsection (5), payments of a compensation affected
payment may be affected under this Part if it is: (a) a sickness benefit under
the 1947 Act; or (b) a rehabilitation allowance under the 1947 Act payable in
place of a sickness benefit under the 1947 Act. Note 1: Compensation received
before 1 May 1987 can affect a person's sickness benefit under the 1947 Act,
or a person's rehabilitation allowance under the 1947 Act if it was paid
instead of a sickness benefit-see clause 25A of Schedule 1A. Note 2:
Subsections (7), (8), (8A) and (10) further limit the effect of this Part on
sole parent pension, carer pension, mature age allowance, mature age partner
allowance and partner allowance.". 16. Subsection 1164(1): Omit the
subsection. 17. Paragraph 1164(2)(a): Omit "is qualified for", substitute
"receives or claims". 18. Subsections 1164(4) and (4A): Omit the subsections.
19. Subsections 1164(5), (5A) and (6): Omit the subsections, substitute: "(5)
If, under subsection (2), the Secretary requires a person who receives or
claims a compensation affected payment to take action to claim or obtain
compensation, the compensation affected payment is not to be granted and is
not payable to the person unless the person complies with the requirement.
"(6) If, under subsection (2), the Secretary requires the partner of a person
who receives or claims a compensation affected payment to take action to claim
or obtain compensation, the compensation affected payment is not to be granted
and is not payable to the person unless the partner complies with the
requirement.". 20. Paragraph 1165(1)(a): Omit "is qualified for", substitute
"receives or claims". Note: The heading to section 1165 is replaced by the
heading "Compensation affected payment not payable during lump sum preclusion
period". 21. Paragraph 1165(1)(c): Omit the paragraph, substitute: "(c) the
person receives a lump sum compensation payment (whether before or after the
person receives or claims the compensation affected payment);". 22. Subsection
1165(1): Omit "a pension, benefit or allowance", substitute "a compensation
affected payment". 23. Subsection 1165(1) (Note): Omit the Note, substitute:
"Note 1: For 'lump sum preclusion period' see subsections (3) to (5). "Note 2:
A series of lump sum payments can be taken to be one lump sum compensation
payment under subsection 17(2B).". 24. Paragraph 1165(2)(a): Omit "is
qualified for", substitute "receives or claims". 25. Paragraph 1165(2)(c):
Omit the paragraph, substitute: "(c) the person, or the person's partner,
receives a lump sum compensation payment (whether before or after the person
receives or claims the compensation affected payment);". 26. Subsection
1165(2) (Note): Omit the Note, substitute: "Note 1: For 'lump sum preclusion
period' see subsections (3) to (5). "Note 2: A series of lump sum payments can
be taken to be one lump sum compensation payment under subsection 17(2B).".
27. Subsection 1165(3B): Omit the subsection. 28. Subsection 1165(3C): Omit
"none of subsections (3), (3A) and (3B)", substitute "neither subsection (3)
nor (3A)". 29. Paragraph 1166(1)(a): Omit "compensation in the form of a lump
sum", substitute "a lump sum compensation payment". Note: The heading to
section 1166 is altered by omitting "pension, benefit or allowance payments"
and substituting "payments of compensation affected payment". 30. Subsection
1166(1) (Note): Omit the Note, substitute: "Note 1: For 'lump sum preclusion
period' see subsections 1165(3) to (5). "Note 2: A series of lump sum payments
can be taken to be one lump sum compensation payment under subsection
17(2B).". 31. Subsections 1166(2), (3) and (4): Omit the subsections,
substitute: "(2) Subject to subsection (5), the amount specified in the notice
is the recoverable amount and is worked out under subsections (3), (4) and
(4A). "(3) If the person is not a member of a couple, the recoverable amount
is equal to the smaller of the following amounts: (a) the compensation part of
the lump sum compensation payment; (b) the sum of the payments of the
compensation affected payment made to the person for the lump sum preclusion
period. "(4) If: (a) the person is a member of a couple; and (b) the person's
partner does not receive a compensation affected payment or a youth training
allowance for the lump sum preclusion period; the recoverable amount is equal
to the smaller of the following amounts: (c) the compensation part of the lump
sum compensation payment; (d) the sum of the payments of the compensation
affected payment made to the person for the lump sum preclusion period. "(4A)
If: (a) the person is a member of a couple; and (b) the person's partner
receives a compensation affected payment or a youth training allowance for the
lump sum preclusion period; the recoverable amount is equal to the smaller of
the following amounts: (c) the compensation part of the lump sum compensation
payment; (d) the sum of: (i) the payments of the compensation affected payment
made to the person for the lump sum preclusion period; and (ii) the payments
of the compensation affected payment and (if applicable) the payments of youth
training allowance made to the person's partner for the lump sum preclusion
period.". 32. Paragraph 1166(5)(a): Omit "pension, benefit or allowance",
substitute "a compensation affected payment". 33. Section 1166 (Lump sum
recoverable amount and preclusion period examples-Example 1): Omit "item 1 in
the Table", substitute "subsection 1166(3),". 34. Section 1166 (Lump sum
recoverable amount and preclusion period examples-Example 2): Omit "item 3 in
the Table", substitute "subsection 1166(4A)". 35. Section 1167: Repeal the
section, substitute: Lump sum compensation not counted as ordinary income
"1167. If an amount per fortnight of a compensation affected payment is not
payable to a person under section 1165 because of a lump sum compensation
payment, that lump sum compensation payment is not to be regarded as ordinary
income of either the person or the person's partner for the purposes of this
Act (apart from Module D of the Family Payment Rate Calculator and section
710, and section 5B of the Health Insurance  Act 1973 ). Note 1: For 'ordinary
income' see section 8. Note 2: Module D of the Family Payment Rate Calculator
deals with additional family payment. Note 3: Section 710 deals with
limitations on the amount of sickness allowance payable. Note 4: Section 5B of
the Health Insurance Act 1973 deals with the Disadvantaged Persons Health
Scheme.". 36. Paragraph 1168(1)(b): Omit "is qualified for", substitute
"receives or claims". Note: The heading to section 1168 is altered by omitting
"pensions, benefits and allowances" and substituting "compensation affected
payments". 37. Subsection 1168(1): Omit "pension, benefit or allowance is to
be reduced, under subsection (3)", substitute "compensation affected payment
is to be reduced, in accordance with this section". 38. Subsection 1168(3):
Omit the subsection (but not the Rate Reduction Examples), substitute: "(2) If
the rate of a person's compensation affected payment is to be reduced under
subsection (1), subsections (3), (3A) and (3B) are to be used to work out the
person's reduced rate. Note 1: If the fortnightly rate of periodic
compensation is higher than the fortnightly rate of the compensation affected
payment, the compensation affected payment will be reduced to nil for the
periodic payments period. Note 2: If a person's rate is reduced under
subsection (1), the order in which the reduction is to be made against the
components of the maximum payment rate is laid down by section 1207 (maximum
basic rate first, then rent assistance). "(3) If the person is not a member of
a couple, the person's fortnightly rate of the compensation affected payment
is reduced by the fortnightly rate of periodic compensation. "(3A) If: (a) the
person is a member of a couple; and (b) the person's partner does not receive
or claim a compensation affected payment or a youth training allowance; the
person's fortnightly rate of the compensation affected payment is reduced by
the fortnightly rate of periodic compensation. "(3B) If: (a) the person is a
member of a couple; and (b) the person's partner receives or claims a
compensation affected payment or a youth training allowance; the person's
fortnightly rate of the compensation affected payment is reduced by half the
fortnightly rate of the periodic compensation.". 39. Section 1168 (Rate
reduction examples-Example 1): Omit "item 1 in the Table", substitute
"subsection 1168(3)". 40. Section 1168 (Rate reduction examples-Example 2):
Omit "item 4 in the Table", substitute "subsection 1168(3B)". 41. Paragraph
1169(a): Omit "pension, benefit or allowance", substitute "compensation
affected payment". 42. Subsection 1170(1) (Note): Omit "pension, benefit or
allowance", substitute "compensation affected payment". Note: The heading to
section 1170 is altered by omitting "pension, benefit or allowance payments"
and substituting "payments of compensation affected payment". 43. Subsections
1170(2), (3) and (4): Omit the subsections, substitute: "(2) The amount
specified in the notice is the recoverable amount and is worked out under
subsections (3), (4) and (4A). "(3) If the person is not a member of a couple,
the recoverable amount is equal to the smaller of the following amounts: (a)
the sum of the periodic compensation payments; (b) the sum of the payments of
the compensation affected payment made to the person for the periodic payments
period. "(4) If: (a) the person is a member of a couple; and (b) the person's
partner does not receive a compensation affected payment or a youth training
allowance for the periodic payments period; the recoverable amount is equal to
the smaller of the following amounts: (c) the sum of the periodic compensation
payments; (d) the sum of the payments of the compensation affected payment
made to the person for the periodic payments period. "(4A) If: (a) the person
is a member of a couple; and (b) the person's partner receives a compensation
affected payment or a youth training allowance for the periodic payments
period; the recoverable amount is equal to the smaller of the following
amounts: (c) the sum of the periodic compensation payments; (d) the sum of:
(i) the payments of the compensation affected payment made to the person for
the periodic payments period; and (ii) the payments of the compensation
affected payment and (if applicable) the payments of youth training allowance
made to the person's partner for the periodic payments period.". 44. Section
1170 (Periodic payments recoverable amount examples- Example 1): Omit "item 1
in the Table", substitute "subsection 1170(3)". 45. Section 1170 (Periodic
payments recoverable amount examples- Example 2): Omit "item 3 in the Table",
substitute "subsection 1170(4A)". 46. Section 1171: Repeal the section,
substitute: Periodic compensation not counted as ordinary income "1171. If an
amount per fortnight of a compensation affected payment payable to a person is
reduced under section 1168 because of a series of periodic compensation
payments, those payments are not to be regarded as ordinary income of either
the person or the person's partner for the purposes of this Act (apart from
Module D of the Family Payment Rate Calculator and section 710, and section 5B
of the Health Insurance Act  1973 ). Note 1: For 'ordinary income' see section
8. Note 2: Module D of the Family Payment Rate Calculator deals with
additional family payment. Note 3: Section 710 deals with limitations on the
amount of sickness allowance payable. Note 4: Section 5B of the
Health Insurance Act 1973 deals with the Disadvantaged Persons Health
Scheme.". 47. Paragraph 1172(1)(a): Omit "in respect of", substitute "wholly
or partly in respect of". 48. Paragraph 1174(4)(a): Omit "pension, benefit or
allowance payments", substitute "payments of the compensation affected
payment". 49. Paragraph 1174(5)(c): Omit "pension, benefit or allowance
payments", substitute "payments of the compensation affected payment". 50.
Paragraph 1174(6)(c): Omit the paragraph, substitute: "(c) the sum of: (i) the
payments of the compensation affected payment payable to the person; and (ii)
the payments of the compensation affected payment and (if applicable) amounts
of youth training allowance payable to the person's partner; for the periodic
payments period or the lump sum preclusion period;". 51. Paragraph
1174(6A)(a): Omit "pension, benefit or allowance", substitute "the
compensation affected payment". 52. Paragraph 1177(1)(a): Omit "in respect
of", substitute "wholly or partly in respect of". 53. Paragraph 1179(1)(a):
Omit "in respect of", substitute "wholly or partly in respect of". 54.
Paragraph 1179(4)(a): Omit "pension, benefit or allowance payments",
substitute "payments of the compensation affected payment". 55. Paragraph
1179(5)(c): Omit "pension, benefit or allowance payments", substitute
"payments of the compensation affected payment". 56. Paragraph 1179(6)(c):
Omit the paragraph, substitute: "(c) the sum of: (i) the payments of the
compensation affected payment payable to the person; and (ii) the payments of
the compensation affected payment and (if applicable) amounts of youth
training allowance payable to the person's partner; for the periodic payments
period or the lump sum preclusion period;". 57. Paragraph 1179(6A)(a): Omit
"pension, benefit or allowance", substitute "the compensation affected
payment". 58. Paragraph 1184(2)(a): Omit "is qualified for", substitute
"receives or claims". 59. Paragraph 1184(2)(c): Omit "qualification for the
set of compensation affected payment", substitute "receipt of or claim for the
compensation affected payment". 60. After section 1184: Insert: Application to
review compensation decision-disability support pension and disability wage
supplement "1184A.(1) This section applies if a person claims a disability
support pension or disability wage supplement and: (a) the Secretary decides
under section 1164 that the disability support pension or disability wage
supplement is not to be granted or is not payable; or (b) the Secretary
decides under section 1165 that the disability support pension or disability
wage supplement is not payable; or (c) the Secretary decides that, if the
person were qualified for the disability support pension or disability wage
supplement, the fortnightly rate of the disability support pension or
disability wage supplement would be reduced to nil under section 1168. "(2)
If: (a) an application is made for a review of that decision to the Social
Security Appeals Tribunal under section 1247; and (b) at the time of the
application the Secretary has not taken the necessary steps to satisfy himself
or herself as to whether the person is qualified for the disability support
pension or disability wage supplement; and (c) the person who claimed the
disability support pension or disability wage supplement requests the
Secretary, in writing, to take those steps; the Secretary must take those
steps as soon as practicable after the request is made.".
PART 2-AMENDMENTS OF THE SOCIAL SECURITY (PARENTING 
ALLOWANCE AND OTHER MEASURES) LEGISLATION AMENDMENT ACT 1994  61. Item 75 of
Schedule 1: Omit the item. 62. Items 78 and 79 of Schedule 1: Omit the items,
substitute: "78. Subsection 1164(6): Omit 'If', substitute 'Subject to
subsection (7), if'. 79. After subsection 1164(6): Insert: '(7) Subsection (6)
does not prevent a parenting allowance being granted to the person unless the
person's maximum basic rate of parenting allowance exceeds the maximum basic
component of parenting allowance. Note: For the maximum basic component of
parenting allowance see point 1068A-B6 of the Parenting Allowance Rate
Calculator at the end of section 1068A.'.". 63. Items 82 to 99 (inclusive) of
Schedule 1: Omit the items, substitute: "90. After subsection 1166(4A):
Insert: '(4B) If: (a) the person is a member of a couple; and (b) the person's
partner receives a parenting allowance for some or all of the lump sum
preclusion period; the recoverable amount is equal to the smaller of the
following amounts: (c) the compensation part of the lump sum compensation
payment; (d) the sum of: (i) the payments of the compensation affected payment
made to the person for the lump sum preclusion period; and (ii) the payments
of any compensation affected payment (excluding any payments of parenting
allowance) and (if applicable) payments of youth training allowance made to
the person's partner for the lump sum preclusion period; and (iii) any
payments of parenting allowance in excess of the maximum basic component of
parenting allowance made to the person's partner during the lump sum
preclusion period. Note 1: For the maximum basic component of parenting
allowance see point 1068A-B6 of the Parenting Allowance Rate Calculator at the
end of section 1068A. Note 2: If the partner of a compensation recipient
receives or claims parenting allowance, parenting allowance during the lump
sum preclusion period may be reduced under subsection 1165(2B).'.". 64. Items
101 to 109 (inclusive) of Schedule 1: Omit the items, substitute: "109. After
subsection 1170(4A): Insert: '(4B) If: (a) the person is a member of a couple;
and (b) the person's partner receives a parenting allowance for some or all of
the periodic payments period; the recoverable amount is equal to the smaller
of the following amounts: (c) the sum of the periodic compensation payments;
(d) the sum of: (i) the payments of the compensation affected payment made to
the person for the periodic payments period; and (ii) the payments of any
compensation affected payment (excluding any payments of parenting allowance)
and (if applicable) payments of youth training allowance made to the person's
partner for the periodic payments period; and (iii) any payments of parenting
allowance in excess of the maximum basic component of parenting allowance made
to the person's partner during the periodic payments period. Note 1: For the
maximum basic component of parenting allowance see point 1068A-B6 of the
Parenting Allowance Rate Calculator at the end of section 1068A. Note 2: If
the partner of a compensation recipient receives or claims parenting
allowance, parenting allowance during the periodic payments period may be
reduced under subsection 1168(6).'.". 65. Items 27 to 31 (inclusive) of
Schedule 2: Omit the items. Note: The heading to item 32 of Schedule 2 is
replaced by the heading "After subsection 1168(3B):". 66. Item 33 of Schedule
2: Omit the item. 67. Item 34 of Schedule 2 (proposed Example 2 to
section 1168 of the Social Security Act 1991): Omit "covered by the
subsection", substitute "covered by subsection (3B)".
PART 3-AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 COMMENCING
IMMEDIATELY AFTER THE COMMENCEMENT OF SCHEDULES 1 AND 2 TO
THE SOCIAL SECURITY (PARENTING ALLOWANCE AND OTHER 
MEASURES) LEGISLATION AMENDMENT ACT 1994  68. Paragraph 1165(2A)(a): Omit "is
qualified for", substitute "receives or claims". 69. Paragraph 1165(2A)(b):
Omit the paragraph, substitute:"(b) the person receives a lump sum
compensation payment (whether before or after the person receives or claims
the allowance);". 70. Paragraph 1165(2B)(a): Omit "is qualified for",
substitute "receives or claims". 71. Paragraph 1165(2B)(b): Omit the
paragraph, substitute: "(b) the person's partner receives a lump sum
compensation payment (whether before or after the person receives or claims
the allowance);". 72. Subsection 1166(2): Omit "and (4A)", substitute ", (4A)
and (4B)". 73. Paragraph 1166(4A)(b): After "compensation affected payment"
insert "(other than parenting allowance)". 74. Subparagraph 1166(4A)(d)(ii):
After "compensation affected payment" insert "(excluding any payments of
parenting allowance)". 75. Paragraphs 1168(4)(b) and (c): Omit "is qualified
for", substitute "receives or claims". 76. Paragraph 1168(6)(a): Omit "is
qualified for", substitute "receives or claims". 77. Paragraph 1168(7)(a):
Omit "is qualified for", substitute "receives or claims". 78. Subsection
1170(2): Omit "and (4A)", substitute ", (4A) and (4B)". 79. Paragraph
1170(4A)(b): After "compensation affected payment" insert "(other than
parenting allowance)". 80. Subparagraph 1170(4A)(d)(ii): After "compensation
affected payment" insert "(excluding any payments of parenting allowance)".
PART 4-AMENDMENTS OF THE HEALTH INSURANCE ACT 1973 81. Subsection 5B(12)
(paragraphs (a), (aa), (ab), (b) and (c) of the definition of "income"): Add
at the end "and". 82. Subsection 5B(12) (definition of "income"): Add at the
end: "and (f) a payment of compensation within the meaning of section 17 of
the Social Security Act 1991;".
PART 5-AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 83. Paragraph
59U(2)(c): Omit "subsection 1168(3)", substitute "section 1168".