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Social Security and Other Legislation Amendment Bill 2011

Schedule 5 Asset-test exempt income streams

Part 1 Amendments

Social Security Act 1991

1  Paragraph 9A(1)(b)

Omit “and (1C)”, substitute “, (1C) and (1D)”.

2  Paragraph 9A(1)(b)

Omit “in the actuary’s opinion”, substitute “the actuary is of the opinion that, for the financial year in which the certificate is given,”.

3  At the end of subsection 9A(1)

Add:

Note:          For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901 .

4  Subsection 9A(1C)

Repeal the subsection, substitute:

Exception to paragraph (1)(b)

          (1C)  If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1)(b) is in force in relation to an income stream, then paragraph (1)(b) does not apply in relation to the next financial year (the later year ) for the period:

                     (a)  beginning on 1 July of the later year; and

                     (b)  ending at the earlier of the following:

                              (i)  the start of the first day in the later year on which any actuarial certificate is given to the Secretary in relation to that income stream;

                             (ii)  the end of the period of 26 weeks beginning on 1 July of the later year.

5  After subsection 9A(1C)

Insert:

One certificate a financial year

          (1D)  For the purposes of paragraph (1)(b), if an actuarial certificate is given to the Secretary in a financial year in relation to an income stream, then any actuarial certificate given to the Secretary later in that financial year in relation to that income stream has no effect.

6  Paragraph 9B(1A)(b)

Omit “subsection (1C)”, substitute “subsections (1C), (1D) and (1E)”.

7  Paragraph 9B(1A)(b)

Omit “in the actuary’s opinion”, substitute “the actuary is of the opinion that, for the financial year in which the certificate is given,”.

8  At the end of subsection 9B(1A)

Add:

Note:          For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901 .

9  Subsection 9B(1C)

Repeal the subsection, substitute:

Exception to paragraph (1A)(b)

          (1C)  If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1A)(b) is in force in relation to an income stream, then paragraph (1A)(b) does not apply in relation to the next financial year (the later year ) for the period:

                     (a)  beginning on 1 July of the later year; and

                     (b)  ending at the earlier of the following:

                              (i)  the start of the first day in the later year on which any actuarial certificate is given to the Secretary in relation to that income stream;

                             (ii)  the end of the period of 26 weeks beginning on 1 July of the later year.

Note:       The following heading to subsection 9B(1D) is inserted “ Guidelines relating to actuarial certificates ”.

10  After subsection 9B(1D)

Insert:

One certificate a financial year

          (1E)  For the purposes of paragraph (1A)(b), if an actuarial certificate is given to the Secretary in a financial year in relation to an income stream, then any actuarial certificate given to the Secretary later in that financial year in relation to that income stream has no effect.

Veterans’ Entitlements Act 1986

11  Paragraph 5JA(1)(b)

Omit “and (1C)”, substitute “, (1C) and (1D)”.

12  Paragraph 5JA(1)(b)

Omit “in the actuary’s opinion”, substitute “the actuary is of the opinion that, for the financial year in which the certificate is given,”.

13  At the end of subsection 5JA(1)

Add:

Note:          For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901 .

14  Subsection 5JA(1C)

Repeal the subsection, substitute:

Exception to paragraph (1)(b)

          (1C)  If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1)(b) is in force in relation to an income stream, then paragraph (1)(b) does not apply in relation to the next financial year (the later year ) for the period:

                     (a)  beginning on 1 July of the later year; and

                     (b)  ending at the earlier of the following:

                              (i)  the start of the first day in the later year on which any actuarial certificate is given to the Commission in relation to that income stream;

                             (ii)  the end of the period of 26 weeks beginning on 1 July of the later year.

15  After subsection 5JA(1C)

Insert:

One certificate a financial year

          (1D)  For the purposes of paragraph (1)(b), if an actuarial certificate is given to the Commission in a financial year in relation to an income stream, then any actuarial certificate given to the Commission later in that financial year in relation to that income stream has no effect.

16  Paragraph 5JB(1A)(b)

Omit “and (1D)”, substitute “, (1D) and (1E)”.

17  Paragraph 5JB(1A)(b)

Omit “in the actuary’s opinion”, substitute “the actuary is of the opinion that, for the financial year in which the certificate is given,”.

18  At the end of subsection 5JB(1A)

Add:

Note:          For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901 .

19  Subsection 5JB(1D)

Repeal the subsection, substitute:

Exception to paragraph (1A)(b)

          (1D)  If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1A)(b) is in force in relation to an income stream, then paragraph (1A)(b) does not apply in relation to the next financial year (the later year ) for the period:

                     (a)  beginning on 1 July of the later year; and

                     (b)  ending at the earlier of the following:

                              (i)  the start of the first day in the later year on which any actuarial certificate is given to the Commission in relation to that income stream;

                             (ii)  the end of the period of 26 weeks beginning on 1 July of the later year.

20  After subsection 5JB(1D)

Insert:

One certificate a financial year

          (1E)  For the purposes of paragraph (1A)(b), if an actuarial certificate is given to the Commission in a financial year in relation to an income stream, then any actuarial certificate given to the Commission later in that financial year in relation to that income stream has no effect.



 

Part 2 Application and transitional provisions

21  Application and transitional provisions

(1)       The amendments made by items 2, 5, 7, 10, 12, 15, 17 and 20 apply in relation to the financial year beginning on 1 July 2012 and all later financial years.

(2)       The amendments made by items 4, 9, 14 and 19 apply in relation to the financial year ending on 30 June 2012 and all later financial years.

(3)       For the purposes of subitem (2), in relation to the financial year ending on 30 June 2012:

                     (a)  a reference in subsection 9A(1C) of the Social Security Act 1991 to an actuarial certificate referred to in paragraph (1)(b); and

                     (b)  a reference in subsection 9B(1C) of the Social Security Act 1991 to an actuarial certificate referred to in paragraph (1A)(b); and

                     (c)  a reference in subsection 5JA(1C) of the Veterans’ Entitlements Act 1986 to an actuarial certificate referred to in paragraph (1)(b); and

                     (d)  a reference in subsection 5JB(1D) of the Veterans’ Entitlements Act 1986 to an actuarial certificate referred to in paragraph (1A)(b);

is a reference to an actuarial certificate referred to in that paragraph, as that paragraph was in force immediately before the commencement of this item.