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Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Bill 2009

Schedule 1 Increased pension rates on 20 September 2009

Part 1 Increased maximum basic rate

Social Security Act 1991

1  At the end of Part 3.16

Add:

Division 7 Increase in maximum basic rate of some pensions on 20 September 2009

1206GE   Maximum basic rate of some single pensions increased on 20 September 2009

             (1)  This Act has effect as if, on 20 September 2009, each indexed amount of pension MBR that is described in subsection (2) and substituted under subsection 1192(1) (as affected by Division 3, if relevant) for another amount on that day were in turn replaced with an amount equal to the indexed amount plus $1,560.00.

Note:          For pension MBR see item 1 of the table in section 1190.

             (2)  Subsection (1) applies to the amounts of pension MBR specified in the following provisions:

                     (a)  column 3 of each of items 1, 3, 4 and 5 of the table in point 1064-B1;

                     (b)  column 3 of each of items 1, 3, 4 and 5 of the table in point 1065-B1;

                     (c)  point 1066-B1.



 

Part 2 Disability support pension for persons under 21 with dependent children

Division 1—Main amendments

Social Security Act 1991

2  Paragraphs 117(b) and (d)

Omit “and has not turned 21”, substitute “, has not turned 21 and does not have any dependent children”.

3  At the end of section 117

Add:

Note:          For dependent child see section 5.

4  Paragraph 1064(1)(b)

After “21”, insert “, or of a person who has not turned 21 and has one or more dependent children”.

5  At the end of subsection 1064(1)

Add:

Note 3:       For dependent child see section 5.

6  After paragraph 1065(1)(b)

Insert:

               and (c)  disability support pension payable to a person who:

                              (i)  is permanently blind; and

                             (ii)  has not turned 21; and

                            (iii)  has one or more dependent children;

7  Subsection 1065(1) (note)

Omit “Note:”, substitute “Note 1:”.

8  At the end of subsection 1065(1)

Add:

Note 2:       For dependent child see section 5.

9  Subsection 1066A(2)

Repeal the subsection, substitute:

             (2)  Subsection (1) does not apply if:

                     (a)  the person is permanently blind; or

                     (b)  the person has one or more dependent children.

Note 1:       The rate for a disability support pension payable to a person under 21 who is permanently blind is dealt with in section 1066B.

Note 2:       For dependent child see section 5.

Note 3:       The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1064 or 1065.

10  Point 1066A-B1

Omit “and whether the person has a dependent child”.

11  Point 1066A-B1 (table, column 3A)

Repeal the column.

12  Point 1066A-B1 (table, heading to column 3B)

Repeal the heading.

13  Point 1066A-B1 (table, column 4A)

Repeal the column.

14  Point 1066A-B1 (table, heading to column 4B)

Repeal the heading.

15  Point 1066A-B1 (note 2)

Omit “ dependent child and”.

16  Point 1066A-B1 (note 4)

Omit “columns 3A and 3B”, substitute “column 3”.

17  After subsection 1066B(1)

Insert:

          (1A)  Subsection (1) does not apply if the person has one or more dependent children.

Note 1:       The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1065.

Note 2:       For dependent child see section 5.

18  Point 1066B-B1

Omit “and whether the person has a dependent child”.

19  Point 1066B-B1 (table, column 3A)

Repeal the column.

20  Point 1066B-B1 (table, heading to column 3B)

Repeal the heading.

21  Point 1066B-B1 (table, column 4A)

Repeal the column.

22  Point 1066B-B1 (table, heading to column 4B)

Repeal the heading.

23  Point 1066B-B1 (note)

Omit “ dependent child and”.

24  Point 1066B-B1 (note 4)

Omit “columns 3A and 3B”, substitute “column 3”.

Division 2—Related amendments

Social Security Act 1991

25  Subsection 19D(5) (subparagraph (a)(ii) of the definition of maximum payment rate )

After “21”, insert “, or is under 21 and has one or more dependent children”.

26  Subsection 19D(5) (paragraph (b) of the definition of maximum payment rate )

After “21”, insert “, or is under 21 and has one or more dependent children”.

27  Subsection 19D(5) (paragraph (d) of the definition of maximum payment rate )

Omit “and not blind”, substitute “, is not blind and does not have any dependent children”.

28  Subsection 19D(5) (paragraph (e) of the definition of maximum payment rate )

Omit “and is blind”, substitute “, is blind and does not have any dependent children”.

29  Subsection 1061JU(4) (subparagraph (a)(ii) of the definition of maximum basic rate )

After “21”, insert “, or is under 21 and has one or more dependent children”.

30  Subsection 1061JU(4) (paragraph (b) of the definition of maximum basic rate )

After “21”, insert “, or is under 21 and has one or more dependent children”.

31  Subsection 1061JU(4) (paragraph (d) of the definition of maximum basic rate )

Omit “and not blind”, substitute “, is not blind and does not have any dependent children”.

32  Subsection 1061JU(4) (paragraph (e) of the definition of maximum basic rate )

Omit “and is blind”, substitute “, is blind and does not have any dependent children”.

33  Subsection 1061JU(4) (at the end of the definition of maximum basic rate )

Add:

Note:          For dependent child see section 5.

34  At the end of section 1070D

Add:

             (4)  Subsections (1), (2) and (3) do not apply if:

                     (a)  the person’s social security payment is disability support pension; and

                     (b)  the person has not turned 21.

Note:          The specific requirement for a person who is receiving disability support pension and has not turned 21 is in section 1070F.

35  Subsection 1070F(1)

Repeal the subsection, substitute:

             (1)  If:

                     (a)  the person’s social security payment is disability support pension; and

                     (b)  the person has not turned 21; and

                     (c)  the rate of the person’s social security payment is to be calculated in accordance with Pension Rate Calculator A or Pension Rate Calculator D;

the specific requirement applicable to the social security payment is that the person comply with subsection (2) or (3).

36  At the end of section 1070L

Add:

             (3)  Subsections (1) and (2) do not apply if:

                     (a)  the person’s social security payment is disability support pension; and

                     (b)  the person has not turned 21.

Note:          The rate of rent assistance for a person who is receiving disability support pension and has not turned 21 is worked out:

(a)    under section 1070N if the person has not turned 18; and

(b)    under section 1070P if the person has turned 18.

37  Subsection 1070N(1)

Repeal the subsection, substitute:

             (1)  The person’s rate of rent assistance is worked out under this section if:

                     (a)  the person is receiving disability support pension; and

                     (b)  the person has not turned 18; and

                     (c)  the rate of the person’s pension is to be calculated in accordance with Pension Rate Calculator A or Pension Rate Calculator D.

38  Subsection 1070P(1)

Repeal the subsection, substitute:

             (1)  The person’s rate of rent assistance is worked out under this section if:

                     (a)  the person is receiving disability support pension; and

                     (b)  the person has turned 18 but has not turned 21; and

                     (c)  the rate of the person’s pension is to be calculated in accordance with Pension Rate Calculator A or Pension Rate Calculator D.

39  Subsection 1188C(5) (definition of threshold ) (table item 3, column 4)

Omit “column 4B”, substitute “column 4”.

40  Subsection 1188C(5) (definition of threshold ) (table item 4, column 4)

Omit “column 4B”, substitute “column 4”.

41  Section 1190 (table item 1, column 2)

After “21”, insert “and has no dependent children”.

42  Section 1190 (table item 1A)

Repeal the item.

43  Section 1190 (table item 1B, column 4)

Omit “column 3B” (wherever occurring), substitute “column 3”.

44  Subparagraphs 1195(1)(a)(iv) and (v)

Repeal the subparagraphs.

45  Subparagraph 1195(1)(b)(ii)

Omit “column 3;”, substitute “column 3.”.

46  Subparagraphs 1195(1)(b)(iii) and (iv)

Repeal the subparagraphs.

47  Section 1198B (table items 1 and 2)

Repeal the items.

48  Section 1198B (table item 3, column 3)

Omit “column 3B”, substitute “column 3”.

49  Section 1198B (table item 4, column 3)

Omit “column 3B”, substitute “column 3”.

50  Section 1198B (table item 5, column 3)

Omit “column 3B”, substitute “column 3”.



 

Part 3 Other amendments

Social Security Act 1991

51  Subsection 17(8)

Repeal the subsection, substitute:

             (8)  For the purposes of the definition of income cut-out amount in subsection (1), the formula is as follows:

where:

maximum basic rate means the amount specified in column 3 of item 1 of the table in point 1064-B1.

ordinary free area limit means the amount specified in column 3 of item 1 in Table E-1 in point 1064-E4.

point 1064-BA3 amount means the pension supplement amount worked out under point 1064-BA3 for a person who is not a member of a couple:

                     (a)  whether or not the person for whom the income cut-out amount is being worked out is a member of a couple; and

                     (b)  whether or not that point applies to the person for whom the income cut-out amount is being worked out.

52  Section 93H

Repeal the section, substitute:

93H   Annual pension rate

Application

             (1)  This section sets a person’s annual pension rate for the purposes of this Division if the start day for the age pension is on or after 20 September 2009.

Note:          See clause 144 of Schedule 1A if the start day is before 20 September 2009.

If person is not permanently blind

             (2)  If the person is not permanently blind, the person’s annual pension rate is the rate that would be the person’s provisional annual payment rate under step 11 of the method statement in point 1064-A1, worked out as at the start day for the age pension, if the maximum payment rate under step 4 of the method statement were the total of:

                     (a)  the person’s maximum basic rate under point 1064-B1; and

                     (b)  the amount worked out for the person using the table in subsection (4).

If person is permanently blind

             (3)  If the person is permanently blind, the person’s annual pension rate is the sum of the following, worked out as at the start day for the age pension:

                     (a)  the person’s maximum basic rate in the table in point 1065-B1;

                     (b)  the amount worked out for the person using the table in subsection (4).

Amount for paragraphs (2)(b) and (3)(b)

             (4)  For the purposes of paragraphs (2)(b) and (3)(b), the table is as follows:

 

Amount for paragraphs (2)(b) and (3)(b)

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount

1

Not member of a couple

$507.00

2

Partnered

$423.80

3

Member of illness separated couple

$507.00

4

Member of respite care couple

$507.00

5

Partnered (partner in gaol)

$507.00

Note 1:       For member of a couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

Note 2:       The amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

53  Section 1190 (after table item 36)

Insert:

 

Pension bonus

 

 

37.

Pension supplement component for pension bonus

Pension supplement component for pension bonus

[subsection 93H(4)—all amounts]

54  Subsection 1191(1) (after table item 26)

Insert:

 

 

Pension bonus

 

 

 

 

27.

Pension supplement component for pension bonus

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June or December quarter before reference quarter (but not earlier than June quarter 2008)

$2.60



 

Part 4 Application of amendments

55  Application of amendments

The amendments made by this Schedule apply for the purposes of working out the rates of social security payments for days on or after 20 September 2009.

Note:       After applying those amendments, different rates for some social security payments may be worked out under Schedule 1A to the Social Security Act 1991 .