Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT (PARENTING AND OTHER MEASURES) ACT 1997 NO. 197, 1997 - SCHEDULE 4

Social Security Act 1991

1 Section 3 (index)

Insert in their appropriate alphabetical position, determined on a letter-by-letter basis:

in severe financial hardship	19C(2)
unavoidable or reasonable expenditure	19C(4)

2 After section 19B

Insert:

SECT 19C Severe financial hardship (ordinary waiting periods and liquid assets test waiting periods) definitions Application of definitions in this section

(1) The definitions in this section relate to ordinary waiting periods and liquid assets test waiting periods.

Note: A person who makes a claim for one of the following allowances, may have to serve an ordinary waiting period before the person can be paid the allowance:

(a) newstart allowance;

(b) sickness allowance;

(c) youth allowance.

A person who makes a claim for sickness allowance, newstart allowance or youth allowance may also have to serve a liquid assets test waiting period before the person can be paid the allowance.

(2) A person who is not a member of a couple and who makes a claim for one of the following allowances:

(a) newstart allowance;

(b) sickness allowance;

(c) youth allowance;

Note: For maximum payment rate see subsection (8).

(3) A member of a couple who makes a claim for one of the following allowances:

(a) newstart allowance;

(b) sickness allowance;

(c) youth allowance;

Note: For maximum payment rate see subsection (8).

(4) Unavoidable or reasonable expenditure , in relation to a person who is serving a liquid assets test waiting period, includes, but is not limited to, the following expenditure:

(a) the reasonable costs of living the person is taken, under subsection (6) or (7), to have incurred in respect of so much of the period that the person has already served;

(b) the costs of repairs to, or replacement of, essential whitegoods situated in the person's home;

(c) school expenses;

(d) funeral expenses;

(e) essential expenses arising on the birth of the person's child or the adoption of a child by the person;

(f) expenditure to buy replacement essential household goods because of loss of those goods through theft or natural disaster when the cost of replacement is not the subject of an insurance policy;

(g) the costs of essential repairs to the person's car or home;

(h) premiums in respect of vehicle or home insurance;

(i) expenses in respect of vehicle registration;

(j) essential medical expenses;

(k) any other costs that the Secretary determines are unavoidable or reasonable expenditure in the circumstances in relation to a person.

Meaning of reasonable costs of living

(5) The reasonable costs of living of a person include, but are not limited to, the following costs:

(a) food costs;

(b) rent or mortgage payments;

(c) regular medical expenses;

(d) rates, water and sewerage payments;

(e) gas, electricity and telephone bills;

(f) costs of petrol for the person's vehicle;

(g) public transport costs;

(h) any other cost that the Secretary determines is a reasonable cost of living in relation to a person.

(6) For the purposes of paragraph (4)(a), the amount of reasonable costs of living that a person who:

(a) is not a member of a couple; and

(b) is serving a liquid assets test waiting period;

What is the amount of reasonable costs of living a person who is a member of a couple is taken to have incurred during a liquid assets test waiting period?

(7) For the purposes of paragraph (4)(a), the amount of reasonable costs of living that a person who:

(a) is a member of a couple; and

(b) is serving a liquid assets test waiting period;

Meaning of maximum payment rate

(8) For the purposes of subsection (3), maximum payment rate :

(a) in relation to sickness allowance--means the rate worked out at Step 4 of the Method statement in Module A of the applicable rate calculator; or

(b) in relation to newstart allowance--means the rate worked out at Step 4 of the Method statement in Module A of the applicable rate calculator; or

(c) in relation to youth allowance--means the youth allowance rate.

Note 1: The Sickness Benefit Rate Calculator, Benefit Rate Calculator A and Benefit Rate Calculator B apply to the calculation of sickness allowance depending on the circumstances of the person claiming the allowance.

Note 2: Benefit Rate Calculator A (under 18) and Benefit Rate Calculator B (over 18) apply to the calculation of newstart allowance.

(9) In this section:

youth allowance means:

(a) if this Act makes provision for the payment of an allowance called youth allowance--that allowance; or

(b) if paragraph (a) does not apply--youth training allowance under Part 8 of the Student and Youth Assistance Act 1973 .

(a) if this Act makes provision for the payment of an allowance called youth allowance--the maximum payment rate in relation to that allowance; or

(b) if paragraph (a) does not apply--the rate worked out at Step 4 of Module A of Schedule 1 to the Student and Youth Assistance Act 1973 .

(10) If the Secretary makes a determination in relation to a person under paragraph (4)(k) or paragraph (5)(h), the Secretary must give written notice of the determination to the person.

Note: The heading to section 19B is altered by omitting " provisions " and substituting " (Carer payment and Family payment) ".

Repeal the subsection, substitute:

(5) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Omit "would suffer severe financial hardship if the person were subject to the ordinary waiting period", substitute "is in severe financial hardship".

5 At the end of section 620

Add:

Note 9: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Repeal the subsection, substitute:

(7) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Omit "would suffer severe financial hardship if the person were subject to the ordinary waiting period", substitute "is in severe financial hardship".

8 At the end of section 693

Add:

Note 5: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and 19C(3) (person who is a member of a couple).

Part 2--Amendments commencing on 1 July 1999

Social Security Act 1991

9 Subsection 19C(1)

Omit "and liquid assets test waiting periods", insert ", liquid assets test waiting periods and income maintenance periods".

Note: The heading to section 19C is altered by omitting " and liquid assets test waiting periods " and substituting " , liquid assets test waiting periods and income maintenance periods ".

Add:

Similarly, an income maintenance period may apply to a person who makes a claim for parenting payment or one of the following allowances:

(a) newstart allowance;

(b) partner allowance;

(c) widow allowance;

(d) mature age allowance;

(e) sickness allowance;

(f) youth allowance.

If an income maintenance period applies to the person then, for the duration of the period:

(a) the payment or allowance claimed may not be payable; or

(b) the amount of the payment or allowance payable may be reduced.

Repeal the subsection, substitute:

(2) A person who is not a member of a couple who makes a claim for parenting payment or one of the following allowances:

(a) newstart allowance;

(b) widow allowance;

(c) mature age allowance;

(d) sickness allowance;

(e) youth allowance;

(f) if the person's claim were granted; and

(g) in the case of a person to whom an income maintenance period applies, if that period did not apply.

Repeal the subsection, substitute:

(3) A member of a couple who makes a claim for parenting payment or one of the following allowances:

(a) newstart allowance;

(b) partner allowance;

(c) mature age allowance;

(d) sickness allowance;

(e) youth allowance;

(f) if the person's claim were granted; and

(g) in the case of a person to whom an income maintenance period applies, if that period did not apply.

After "waiting period,", insert "or to whom an income maintenance period applies,".

14 Paragraph 19C(4)(a)

Repeal the paragraph, substitute:

(a) the reasonable costs of living the person is taken, under subsection (6) or (7), to have incurred in respect of:

(i) if the person is serving a liquid assets test waiting period--so much of the period that the person has already served; or

(ii) if an income maintenance period applies to the person--so much of the period that has already applied to the person;

Repeal the subsections, substitute:

(6) For the purposes of paragraph (4)(a), the amount of reasonable costs of living that a person who is not a member of a couple is taken to have incurred, may not exceed:

(a) in the case of a person who is serving a liquid assets test waiting period--the amount of allowance that would have been payable to the person during that part of the waiting period that the person has already served, if the person were not subject to the period; or

(b) in the case of a person to whom an income maintenance period applies--the amount of allowance or parenting payment (as the case may be) that would have been payable to the person during that part of the income maintenance period that has already applied to the person, if the period did not apply to the person.

Note: The heading to subsection 19C(6) is altered by inserting " or an income maintenance period " after " period ".

(a) in the case of a person who is serving a liquid assets test waiting period--twice the amount of allowance that would have been payable to the person during that part of the waiting period that the person has already served, if the person were not subject to the period; or

(b) in the case of a person to whom an income maintenance period applies--twice the amount of allowance or parenting payment (as the case may be) that would have been payable to the person during that part of the income maintenance period that has already applied to the person, if the period did not apply to the person.

Note: The heading to subsection 19C(7) is altered by inserting " or an income maintenance period " after " period ".

Add at the end:

; or (d) in relation to widow allowance, partner allowance and mature age allowance under Part 2.12B--means the rate worked out at Step 4 of the Method statement in Module A of Benefit Rate Calculator B; or

(e) in relation to pension PP (single)--means the rate worked out in Step 4 of the Method statement in point 1068A-A1 in Module A of the Pension PP Rate Calculator; or

(f) in relation to PP (partnered) means the rate worked out at Step 4 of the Method statement in point 1068B-B7 in Module B of the PP (Partnered) Rate Calculator.

Repeal the point, substitute:

1067-H5M If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the allowance claimed may not be payable to the person; or

(b) the amount of the allowance payable to the person may be reduced.

Repeal the point, substitute:

1067E-G6M If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the allowance claimed may not be payable to the person; or

(b) the amount of the allowance payable to the person may be reduced.

Repeal the point, substitute:

1068-G7AM If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the allowance claimed may not be payable to the person; or

(b) the amount of the allowance payable to the person may be reduced.

Repeal the point, substitute:

1068A-E9 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the pension PP (single) claimed may not be payable to the person; or

(b) the amount of the pension PP (single) payable to the person may be reduced.

Repeal the point, substitute:

1068B-D15 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the PP (partnered) claimed may not be payable to the person; or

(b) the amount of the PP (partnered) payable to the person may be reduced.

Part 3--Amendment of the Student and Youth Assistance Act 1973 that commences on 1 July 1998

22 Application

The following item has effect if, and only if, Part 8 of the Student and Youth Assistance Act 1973 is in force on 1 July 1998.

23 Subsection 72(11)

Repeal the subsection, substitute:

(11) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

Note 1: For in severe financial hardship see subsection 19C(2) of the Social Security Act (person who is not a member of a couple) and subsection 19C(3) of the Social Security Act (person who is a member of a couple)

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4) of the Social Security Act.

Note: The heading to subsection 72(11) is replaced by the heading " Secretary may determine that a person does not have to serve a waiting period " .

Part 4--Amendment of the Student and Youth Assistance Act 1973 that commences on 1 July 1999

24 Application

The following item has effect if, and only if, Schedule 1 of the Student and Youth Assistance Act 1973 is in force on 1 July 1999.

25 Point G6G of Schedule 1

Repeal the point, substitute:

G6G If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) of the Social Security Act (person who is not a member of a couple) and subsection 19C(3) of the Social Security Act (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4) of the Social Security Act.

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the allowance claimed may not be payable to the person; or

(b) the amount of the allowance payable to the person may be reduced.