Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT ACT (No. 2) 1992 No. 229, 1992 - SECT 78

78. Benefit Rate Calculator A in section 1067 is amended:

   (a)  by inserting after Step 2 in the Method statement in point 1067-A1 the
        following Step:

"Step 3. Work out the amount per year (if any) of pharmaceutical allowance
using MODULE D below.";

   (b)  by inserting after Module C the following Module:

"MODULE D - PHARMACEUTICAL ALLOWANCE Qualification for pharmaceutical
allowance

"1067-D1. Subject to points 1067-D3, 1067-D4, 1067-D5 and 1067-D7, an
additional amount by way of pharmaceutical allowance is to be added to a
person's maximum basic rate if:

   (a)  the person is an Australian resident; and

   (b)  the person is in Australia; and

   (c)  either:

        (i)    the person is receiving sickness allowance; or

        (ii)   the person is receiving job search allowance and point 1067-D2
               (incapacity for work) applies to the person. Incapacity for
               work

"1067-D2. This point applies to a person if:

   (a)  the person is incapacitated for work; and

   (b)  subsection 514(2) applies to the person. Note: subsection 514(2)
        provides that in some circumstances a person who is incapacitated for
        work can continue to receive JSA. No pharmaceutical allowance if
        person receiving pharmaceutical allowance under the Veterans'
        Entitlements Act

"1067-D3. Pharmaceutical allowance is not to be added to a person's maximum
basic rate if the person is receiving pharmaceutical allowance under the
Veterans' Entitlements Act. No pharmaceutical allowance if partner receiving
pharmaceutical allowance under the Veterans' Entitlements Act and not a
service pensioner

"1067-D4. Pharmaceutical allowance is not to be added to a person's maximum
basic rate if:

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

   (b)  the person's partner is receiving pharmaceutical allowance under the
        Veterans' Entitlements Act; and

   (c)  the person's partner is not receiving a service pension. Note: if
        paragraphs (a), (b) and (c) apply to the person's partner, the partner
        is receiving pharmaceutical allowance under the VEA at the higher rate
        (rather than the person and the person's partner each receving
        pharmaceutical allowance at the lower rate). No pharmaceutical
        allowance before advance payment period ends

"1067-D5. Pharmaceutical allowance is not to be added to a person's maximum
basic rate if:

   (a)  the person has received an advance pharmaceutical allowance under:

        (i)    Part 2.23 of this Act; or

        (ii)   Division 2 of Part VIIA of the Veterans' Entitlements Act; and

   (b)  the person's advance payment period has not ended. Note: for 'advance
        payment period' see point 1067-D6. Advance payment period

"1067-D6. A person's advance payment period:

   (a)  starts on the day on which the advance pharmaceutical allowance is
        paid to the person; and

   (b)  ends after the number of paydays worked out using the following
        formula have passed:
amount of advance X 26
pharmaceutical allowance rate where:
'amount of advance' is the amount of the advance paid to the person;
'pharmaceutical allowance rate' is the fortnightly amount of pharmaceutical
allowance which would be added to the person's maximum basic rate in working
out the social security benefit instalment for the day on which the advance is
paid if a social security benefit were payable to the person and
pharmaceutical allowance were to be added to the person's maximum basic rate
on that day. Note: the person may have come on to social security benefit
after having been a pension recipient and have received an advance while a
pension recipient. No pharmaceutical allowance if annual limit reached

"1067-D7. Pharmaceutical allowance is not to be added to a person's maximum
basic rate if:

   (a)  the person has received an advance pharmaceutical allowance during the
        current calendar year; and

   (b)  the total amount paid to the person for that year by way of:

        (i)    pharmaceutical allowance; and

        (ii)   advance pharmaceutical allowance; equals the total amount of
               pharmaceutical allowance that would have been paid to the
               person during that year if the person had not received any
               advance pharmaceutical allowance. Note 1: for the amount 'paid'
               to a person by way of pharmaceutical allowance see subsections
               19A(2) to (6). Note 2: the annual limit is affected by:
. how long during the calendar year the person was on pension or benefit;
. the rate of pharmaceutical allowance the person attracts at various times
depending on the person's family situation. VEA payments taken into account

"1067-D8. In points 1067-D6 and 1067-D7:
'advance pharmaceutical allowance' includes advance pharmaceutical allowance
under the Veterans' Entitlements Act;
'pharmaceutical allowance' includes pharmaceutical allowance under the
Veterans' Entitlements Act. Amount of pharmaceutical allowance

"1067-D9. The amount of pharmaceutical allowance is the amount per fortnight
worked out using the following Table:
PHARMACEUTICAL ALLOWANCE AMOUNT TABLE
    column 1         column 2                    column 3

amount per
    item       person's family situation         fortnight

    1.   Not member of a couple                  $5.20

    2.   Partnered                               $2.60

    3.   Member of an illness separated or       $5.20

respite care couple
    4.   Partnered (partner getting              $2.60

service pension) Note: the amounts in column 3 are indexed or adjusted
annually in line with CPI increases (see sections 1191 to 1194 and 1206A).".