Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT ACT 1992 No. 81, 1992 - SECT 6

6. After Part 2.24 of the Principal Act the following Part is inserted in
Chapter 2:

"PART 2.25 - TELEPHONE ALLOWANCE

"Division 1 - Qualification for and payability of
telephone allowance Qualification for telephone allowance

"1061Q.(1) A person is qualified for a telephone allowance if:

   (a)  the person is receiving a social security pension; and

   (b)  either:

        (i)    the person satisfies the fringe benefits ordinary income test
               and the fringe benefits assets test; or

        (ii)   the person is permanently blind; and

   (c)  the person is a telephone subscriber. Note 1: for 'telephone
        subscriber' see subsection (5). Note 2: to work out whether a person
        satisfies the fringe benefits ordinary income test, use the Fringe
        Benefits Ordinary Income Test Calculator at the end of section 1071.
        Note 3: to work out whether a person satisfies the fringe benefits
        assets test, use the Fringe Benefits Assets Test Calculator at the end
        of section 1072.

"(2) A person is qualified for a telephone allowance if:

   (a)  the person is receiving newstart allowance; and

   (b)  the person has turned 60; and

   (c)  the person is a telephone subscriber. Note: for 'telephone subscriber'
        see subsection (5).

"(3) A person is qualified for a telephone allowance if:

   (a)  the person is receiving job search allowance or special benefit; and

   (b)  the person has been receiving:

        (i)    a social security pension; or

        (ii)   a social security benefit; or

        (iii)  a service pension; continuously for the last 12 months; and

   (c)  the person has turned 60; and

   (d)  the person is a telephone subscriber. Note: for 'telephone subscriber'
        see subsection (5).

"(4) A person is qualified for a telephone allowance if:

   (a)  the person is a person to whom any of the following provisions
        applies:

        (i)    paragraph (aaa) or (aab) of the definition of 'concessional
               beneficiary' in subsection 84(1) of the National Health Act 
               1953 ;

        (ii)   section 4AAA of the National Health Act 1953;

        (iii)  section 146T or 146U of this Act; and

   (b)  the person is a telephone subscriber. Note: for 'telephone subscriber'
        see subsection (5).

"(5) In this section: 'telephone subscriber' means:

   (a)  a person who has a telephone service connected in Australia in his or
        her name; or

   (b)  a person:

        (i)    to whom paragraph (a) does not apply; and

        (ii)   who is a member of a couple (other than an illness separated,
               temporarily separated or respite care couple); and

        (iii)  whose partner has a telephone service connected in Australia in
               the partner's name. Note: for 'member of a couple', 'illness
               separated couple', 'temporarily separated couple' and 'respite
               care couple' see section 4. Telephone allowance not payable in
               some circumstances

"1061R. Even though a person is qualified for a telephone allowance, the
allowance is not payable to the person:

   (a)  if the person is absent from Australia; or

   (b)  if the person is receiving a telephone allowance under the Veterans'
        Entitlements Act or the Seamen's War Pensions and Allowances Act 1940;
        or

   (c)  if:

        (i)    the person is a member of a couple (other than an illness
               separated, temporarily separated or respite care couple); and

        (ii)   the person's partner is receiving a telephone allowance because
               of:

                (A)  subsection 118Q(3) of the Veterans' Entitlements Act; or

                (B)  a determination under subsection 5R(1) of the Veterans'
                     Entitlements Act. Note 1: for 'member of a couple',
                     'illness separated couple', 'temporarily separated
                     couple' and 'respite care couple' see section 4. Note 2:
                     subsection 118Q(3) of the Veterans' Entitlements Act
                     covers certain categories of World War 1 veterans. Note
                     3: the relevant determination under subsection 5R(1) of
                     the Veterans' Entitlements Act provides eligibility for
                     telephone allowance to certain categories of World War 1
                     Australian mariners.

"Division 2 - Rate of telephone allowance Rate of telephone allowance

"1061S.(1) A person's rate of telephone allowance is worked out using the
following Table:
TELEPHONE ALLOWANCE RATE TABLE
    Column 1   Column 2                               Column 3

    Item       Person's Situation                     Rate Per

Year
    1.         Not member of a couple                    $51.80

    2.         Partnered (partner getting neither

social security pension nor social
security benefit) and person getting
               pension or benefit before 12 March 1992   $51.80

    3.         Partnered (partner getting neither

social security pension nor social
security benefit) and person not
getting pension or benefit before
               12 March 1992                             $25.90

    4.         Partnered (partner getting social

security pension or social security
benefit but not getting telephone
               allowance)                                $51.80

    5.         Partnered (partner getting social

security pension or social security
benefit and getting telephone allowance) $25.90
    6.         Member of an illness separated,

temporarily separated or respite
               care couple                               $51.80

    7.         Partnered (partner not getting

telephone allowance under the
               VEA or the SWPAA)                         $51.80

    8.         Partnered (partner getting telephone

               allowance under the VEA or the SWPAA)     $25.90
Note: the amounts in column 3 (except the item 2 amount) are indexed or
adjusted annually in line with CPI increases (see sections 1191 to 1194).

"(2) If item 7 or 8 applies to a person, neither item 2 nor 3 applies to the
person.

"(3) Item 2 does not apply to a person if the rate of telephone allowance that
would be payable to the person if item 2 applied is less than the rate that
would otherwise be payable. Note: because the item 2 rate is not indexed it
may eventually become a lower rate than other rates in the Table.

"(4) In this section:
'person getting pension or benefit before 12 March 1992' means a person to
whom clause 41 of Schedule 1A applies;
'person not getting pension or benefit before 12 March 1992' means a person to
whom clause 41 of Schedule 1A does not apply; Note: clause 41 of Schedule 1A
applies to people who were receiving social security pension or benefit before
12 March 1992 and who meet certain other conditions.
'SWPAA' means the Seamen's War Pensions and Allowances Act 1940.

"Division 3 - Payment of telephone allowance Commencement of telephone
allowance

"1061T. A telephone allowance becomes payable to a person on the first day on
which:

   (a)  the person is qualified for the allowance; and

   (b)  no provision of this Act makes the allowance not payable to the
        person. Note 1: for qualification see section 1061Q. Note 2: for the
        circumstances in which telephone allowance is not payable see section
        1061R. Payment by instalments

"1061U.(1) A full instalment of telephone allowance is payable to a person on
each telephone allowance payday on which:

   (a)  the person is qualified for the allowance; and

   (b)  the allowance is payable to the person.

"(2) In this section:
'telephone allowance payday' means:

   (a)  if the person is receiving a social security pension - the first
        pension payday that falls on or after:

        (i)    1 January; and

        (ii)   20 March; and

        (iii)  1 July; and

        (iv)   20 September; or

   (b)  if the person is receiving a social security benefit - the first
        payday on which an instalment of the benefit would normally be paid to
        the person that falls on or after:

        (i)    1 January; and

        (ii)   20 March; and

        (iii)  1 July; and

        (iv)   20 September. Calculation of amount of instalment

"1061V. The amount of an instalment of telephone allowance is the amount
worked out by dividing the amount of the annual rate of the telephone
allowance by 4. Instalments to be paid to person or nominee

"1061VA.(1) Subject to subsection (3), instalments of a person's telephone
allowance are to be paid to that person.

"(2) The Secretary may direct that the whole or part of the instalments of a
person's telephone allowance is to be paid to someone else on behalf of the
person.

"(3) If the Secretary gives a direction under subsection (2), the instalments
are to be paid in accordance with the direction. Payment into bank account
etc.

"1061VB.(1) An amount that is to be paid to a person under section 1061VA is
to be paid in the manner set out in this section.

"(2) Subject to this section, the amount is to be paid to the credit of a bank
account, credit union account or building society account nominated and
maintained by the person.

"(3) The account may be an account that is maintained by the person either
alone or jointly or in common with another person.

"(4) Where the person has not nominated an account for the purposes of
subsection (2), then, subject to subsections (5) and (7), the amount is not to
be paid.

"(5) Where:

   (a)  an amount has not been paid because of subsection (4); and

   (b)  the person nominates an account for the purposes of subsection (2);
        the amount is to be paid under subsection (2).

"(6) The Secretary may direct that the whole or part of the amount be paid to
the person in a different way from that provided for by subsection (2).

"(7) If the Secretary gives a direction under subsection (6), the amount is to
be paid in accordance with the direction. Where allowance payday would fall on
public holiday etc.

"1061VC. If the Secretary is satisfied that an amount of telephone allowance
that would normally be paid on a particular day cannot reasonably be paid on
that day (because, for example, it is a public holiday or a bank holiday), the
Secretary may direct that the amount be paid on an earlier day. Payment of
allowance after death

"1061VD.(1) If:

   (a)  a telephone allowance is payable to a person; and

   (b)  the person dies; and

   (c)  at the date of the person's death the person had not received an
        amount of telephone allowance payable to him or her; and

   (d)  another person applies to receive that amount; and

   (e)  the application is made:
    (i)   within 6 months after the death; or


        (ii)   within a further period allowed by the Secretary in special
               circumstances; the Secretary may pay the amount to the person
               who, in the Secretary's opinion, is best entitled to it.

"(2) If the Secretary pays an amount of telephone allowance under subsection
(1), the Commonwealth has no further liability to any person in respect of
that amount of telephone allowance.

"Division 4 - Protection of telephone allowance Telephone allowance to be
absolutely inalienable

"1061W.(1) Subject to subsections (2) and (3) and section 1359, telephone
allowance is absolutely inalienable, whether by way of, or in consequence of,
sale, assignment, charge, execution, bankruptcy or otherwise. Payments to
Commissioner of Taxation at recipient's request

"(2) The Secretary may make deductions from the instalments of telephone
allowance payable to a person where the recipient asks the Secretary:

   (a)  to make the deductions; and

   (b)  to pay the amounts to be deducted to the Commissioner of Taxation.
        Note: the Secretary must make deductions from a person's pension,
        benefit or allowance if requested by the Commissioner of Taxation (see
        section 1359). Deductions from instalments with recipient's consent

"(3) The Secretary may make deductions from the instalments of telephone
allowance payable to a person if the recipient consents under section 1234A to
the Secretary making the deductions. Note: section 1234A enables the Secretary
to recover a debt from a person other than the debtor if the person is
receiving a pension, benefit or allowance. Effect of garnishee or attachment
order

"1061X.(1) If:

   (a)  a person has an account with a financial institution; and

   (b)  instalments of telephone allowance payable to the person (whether on
        the person's own behalf or not) are being paid to the credit of that
        account; and

   (c)  a court order in the nature of a garnishee order comes into force in
        respect of the account; the court order does not apply to the saved
        amount (if any) in the account.

"(2) The saved amount is worked out as follows:
Method statement Step 1. Work out the amount (if any) of telephone allowance
payable to the person that has been paid to the credit of the account during
the 4 week period immediately before the court order came into force. Step 2.
Subtract from that amount the total amount withdrawn from the account during
the same 4 week period: the result is the saved amount.

"(3) This section applies to an account whether it is maintained by a person:

   (a)  alone; or

   (b)  jointly with another person; or

   (c)  in common with another person.

"Division 5 - Recipient obligations Secretary may require notice of the
happening of an event or a change in
circumstances   "1061Y.(1) The Secretary may give a person to whom a telephone
allowance is being paid a notice that requires the person to inform the
Department if:

   (a)  a specified event or change of circumstances occurs; or

   (b)  the person becomes aware that a specified event or change of
        circumstances is likely to occur.

"(2) An event or change of circumstances is not to be specified in a notice
under subsection (1) unless the occurrence of the event or change of
circumstances might affect the payment of the allowance.

"(3) A notice under subsection (1):

   (a)  must be in writing; and

   (b)  may be given personally or by post; and

   (c)  must specify how the person is to give the information to the
        Department; and

   (d)  must specify the period within which the person is to give the
        information to the Department; and

   (e)  must specify that the notice is a recipient notification notice given
        under this Act.

"(4) The period specified under paragraph (3)(d) must end at least 14 days
after:

   (a)  the day on which the event or change of circumstances occurs; or

   (b)  the day on which the person becomes aware that the event or change of
        circumstances is likely to occur.

"(5) If a notice requires the person to inform the Department of any proposal
by the person to leave Australia, subsection (4) does not apply to that
requirement.

"(6) A person must not, without reasonable excuse, refuse or fail to comply
with a notice under subsection (1) to the extent that the person is capable of
complying with the notice. Penalty: $1,000 or imprisonment for 6 months, or
both.

"(7) A person must not, in purporting to comply with a notice under subsection
(1), knowingly or recklessly give information that is false or misleading in a
material particular. Penalty: Imprisonment for 2 years. Note:
subsections 4B(2) and 4B(3) of the Crimes Act 1914 allow a court to impose an
appropriate fine instead of, or in addition to, a term of imprisonment.

"(8) This section extends to:

   (a)  acts, omissions, matters and things outside Australia whether or not
        in a foreign country; and

   (b)  all persons irrespective of their nationality or citizenship.
        Secretary may require recipient to give particular information
        relevant to payment of telephone allowance

"1061Z.(1) The Secretary may give a person to whom a telephone allowance is
being paid a notice that requires the person to give the Department a
statement about a matter that might affect the payment of the allowance to the
person.

"(2) A notice under subsection (1):

   (a)  must be in writing; and

   (b)  may be given personally or by post; and

   (c)  must specify how the person is to give the information to the
        Department; and

   (d)  must specify the period within which the person is to give the
        information to the Department; and

   (e)  must specify that the notice is a recipient statement notice given
        under this Act.

"(3) The period specified under paragraph (2)(d) must end at least 14 days
after the day on which the notice is given.

"(4) A statement given in response to a notice under subsection (1) must be in
writing and in accordance with a form approved by the Secretary.

"(5) A person must not, without reasonable excuse, refuse or fail to comply
with a notice under subsection (1) to the extent that the person is capable of
complying with the notice. Penalty: $1,000 or imprisonment for 6 months, or
both.

"(6) A person must not, in purporting to comply with a notice under subsection
(1), knowingly or recklessly give information that is false or misleading in a
material particular. Penalty: Imprisonment for 2 years. Note:
subsections 4B(2) and 4B(3) of the Crimes Act 1914 allow a court to impose an
appropriate fine instead of, or in addition to, a term of imprisonment.

"(7) This section extends to:

   (a)  acts, omissions, matters and things outside Australia whether or not
        in a foreign country; and

   (b)  all persons irrespective of their nationality or citizenship.".