Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT ACT 1992 No. 81, 1992 - SECT 34

34. After Subdivision A of Division 9 of Part 2.15 of the Principal Act the
following Subdivision is inserted:

"Subdivision AB - Death of recipient (bereavement
payments for benefit increase partner) Deceased recipient and surviving
partner

"771A. If:

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

   (b)  the person dies; then, for the purposes of this Subdivision:

   (c)  the person is the deceased recipient; and

   (d)  the person's partner is the surviving partner. Qualification for
        payments under this Subdivision

"771B.(1) If:

   (a)  immediately before the deceased recipient dies, the recipient:

   (i)  was receiving a special benefit; and

   (ii) was a long-term social security recipient; and

   (b)  the surviving partner was a benefit increase partner in relation to
        the recipient's special benefit; the partner is qualified for payments
        under this Subdivision to cover the bereavement period. Note: for
        'long-term social security recipient' see subsection 23(1).

"(2) The surviving partner may choose not to receive payments under this
Subdivision.

"(3) An election under subsection (2):

   (a)  must be made by written notice to the Secretary; and

   (b)  may be made after the surviving partner has been paid an amount or
        amounts under this Subdivision; and

   (c)  cannot be withdrawn after the Department has taken all the action
        required to give effect to that election. Continued payment of
        deceased recipient's allowance

"771C. If the surviving partner is qualified for payments under this
Subdivision, there is payable to the partner:

   (a)  on each of the deceased recipient's paydays in the bereavement rate
        continuation period an amount equal to the amount that would have been
        payable to the recipient if the recipient had not died; and

   (b)  on each of what would have been the recipient's paydays in the
        bereavement lump sum period an amount equal to the amount that would
        be payable to the partner if:

   (i)  the partner was not a member of a couple; and

   (ii) the partner was receiving special benefit. Note: a surviving partner
        who is receiving payments under this section is taken to be receiving
        special benefit (see subsection 23(4AB)). Lump sum payable in some
        circumstances

"771D. If:

   (a)  the surviving partner is qualified for payments under this Subdivision
        in relation to the deceased recipient's death; and

   (b)  the first available bereavement adjustment payday occurs before the
        end of the bereavement period; there is payable to the partner as a
        lump sum an amount worked out using the lump sum calculator at the end
        of this section.
LUMP SUM CALCULATOR This is how to work out the amount of the lump sum:
Method statement Step 1. Take the amount that, if the deceased recipient had
not died, would have been payable to the recipient on the recipient's payday
immediately before the first available bereavement adjustment payday: the
result is called the notional combined rate. Step 2. Take the amount of
special benefit that, if the surviving partner was not a member of a couple
and was receiving special benefit, would have been payable to the partner on
the recipient's payday immediately before the first available bereavement
adjustment payday: the result is called the surviving partner's individual
rate. Step 3. Take the surviving partner's individual rate away from the
notional combined rate: the result is called the deceased recipient's
instalment component. Step 4. Work out the number of the deceased recipient's
paydays in the lump sum bereavement period. Step 5. Multiply the deceased
recipient's instalment component by the number obtained in Step 4: the result
is the amount of the lump sum payable to the partner under this section.
Effect of death of person entitled to payments under this Subdivision

"771E. If:

   (a)  the surviving partner is qualified for payments under this
        Subdivision; and

   (b)  the surviving partner dies within the bereavement period; and

   (c)  the Secretary does not become aware of the deceased recipient's death
        before the partner dies; there is payable, to such person as the
        Secretary thinks appropriate, as a lump sum, an amount worked out
        using the lump sum calculator at the end of this section.
LUMP SUM CALCULATOR This is how to work out the amount of the lump sum:
Method statement Step 1. Work out the amount that, if neither the surviving
partner nor the deceased recipient had died, would have been payable to the
recipient on the recipient's payday immediately after the day on which the
recipient dies: the result is called the notional combined rate. Step 2. Work
out the number of the deceased recipient's paydays in the period that
commences on the day after the partner dies and ends on the day on which the
bereavement period ends. Step 3. Multiply the notional combined rate by the
number obtained in Step 2: the result is the amount of the lump sum payable
under this section. Matters affecting payments under this Subdivision

"771F.(1) If:

   (a)  the surviving partner is qualified for payments under this
        Subdivision; and

   (b)  after the deceased recipient died, an amount to which the recipient
        would have been entitled if the recipient had not died has been paid
        under this Act or under Part III of the Veterans' Entitlements Act;
        and

   (c)  the Secretary is not satisfied that the partner has not had the
        benefit of that amount; the following provisions have effect:

   (d)  the amount referred to in paragraph (b) is not recoverable from the
        partner or from the recipient's personal representative, except to the
        extent (if any) that the amount exceeds the amount payable to the
        partner under this Subdivision;

   (e)  the amount payable to the partner under this Subdivision is to be
        reduced by the amount referred to in paragraph (b).

"(2) If:

   (a)  the surviving partner is qualified for payments under this
        Subdivision; and

   (b)  the amount to which the deceased recipient would have been entitled if
        the recipient had not died has been paid under this Act or under Part
        III of the Veterans' Entitlements Act, within the bereavement period,
        into an account with a bank, credit union or building society (in this
        subsection called the 'financial institution'); and

   (c)  the financial institution pays to the partner, out of the account, an
        amount not exceeding the total of the amounts paid as mentioned in
        paragraph (b); the financial institution is, in spite of anything in
        any other law, not liable to any action, claim or demand by the
        Commonwealth, the recipient's personal representative or anyone else
        in respect of the payment of that money to the partner.".