4   Definitions

                   In this Part, unless the contrary intention appears:

annual retirement income has the meaning given by sections 5 and 6.

annual savings and investment income has the meaning given by sections 5 and 6.

Australian resident has the same meaning as in the Social Security Act 1991 .

bereavement allowance has the same meaning as in the Social Security Act 1991 .

carer service pension has the same meaning as in the Veterans’ Entitlements Act 1986 .

deprived asset has the same meaning as in the Social Security Act 1991 .

disqualifying payment means any of the following:

                     (a)  a social security pension (other than a bereavement allowance);

                     (b)  a social security benefit;

                     (c)  a service pension;

                     (d)  a carer service pension;

                     (e)  an income support supplement.

Family and Community Services customer has the meaning given by section 7.

financial asset has the same meaning as in the Social Security Act 1991 .

financial investment has the same meaning as in the Social Security Act 1991 .

income support supplement has the same meaning as in the Veterans’ Entitlements Act 1986 .

income tax return has the same meaning as in the Income Tax Assessment Act 1997 .

income year has the same meaning as in the Income Tax Assessment Act 1997 .

member of a couple has the same meaning as in the Social Security Act 1991 .

partner has the same meaning as in the Social Security Act 1991 .

proper claim has the meaning given by section 7.

qualifying year means the year commencing on 1 July 1998 or the year commencing on 1 July 1999.

savings and investments includes financial investments.

Secretary means the Secretary to the Department.

service pension has the same meaning as in the Veterans’ Entitlements Act 1986 .

social security benefit has the same meaning as in the Social Security Act 1991 .

social security pension has the same meaning as in the Social Security Act 1991 .

5   Annual retirement income and annual savings and investment income—customers with previous calculation of ordinary income on a yearly basis

             (1)  This section applies to a Family and Community Services customer if, on one or more occasions in the period covered by the 2 qualifying years, the Secretary was required to work out the customer’s ordinary income on a yearly basis for the purpose of determining the customer’s entitlement to any payment under the Social Security Act 1991 .

             (2)  If the Secretary was required to work out the amount on only one such occasion, the customer’s annual retirement income and annual savings and investment income for the purposes of this Part are worked out in accordance with subsections (3) and (4).

             (3)  The customer’s annual retirement income is the amount of the ordinary income on a yearly basis that would have been required to be worked out on the occasion if:

                     (a)  any pension under Part II or IV, or a payment by way of allowance under Part VI, of the Veterans’ Entitlements Act 1986 paid to the customer were disregarded; and

                     (b)  any application of section 1171 of the Social Security Act 1991 were disregarded; and

                     (c)  any payment under the Social Security Act 1991 , to the extent that it was not exempt from income tax under the Income Tax Assessment Act 1997 , were included in ordinary income; and

                     (d)  any amount taken by Division 1B of Part 3.10 of the Social Security Act 1991 to be ordinary income on a financial asset that is a deprived asset were disregarded; and

Note:       Any actual return on the deprived asset is also disregarded: see subsection 1083(1) of the Social Security Act 1991 .

                     (e)  the customer were not a member of a couple.

             (4)  The customer’s annual savings and investment income is worked out as follows:

             (5)  If the Secretary was required to work out the customer’s ordinary income on a yearly basis on 2 or more occasions during the period covered by the 2 qualifying years, the customer’s annual retirement income and annual savings and investment income for the purposes of this Part are worked out as follows:

6   Annual retirement income and annual savings and investment income—customers with no previous calculation of ordinary income on a yearly basis

             (1)  If section 5 does not apply to a Family and Community Services customer, the customer’s annual retirement income and annual savings and investment income for the purposes of this Part are worked out in accordance with this section.

             (2)  The customer’s annual retirement income is the customer’s ordinary income on a yearly basis worked out:

                     (a)  on the basis of the customer’s circumstances at the time the Secretary first determines the customer’s entitlement to a bonus payment under this Part; and

                     (b)  by making the assumptions in paragraphs 5(3)(a) to (e).

             (3)  The customer’s annual savings and investment income is worked out as follows:

7   Making a proper claim

             (1)  An individual who wants to be paid a bonus payment under this Part must make a proper claim for the payment.

             (2)  A claim by an individual for a bonus payment under this Part is a proper claim if:

                     (a)  he or she is not required to lodge an income tax return for the 1999-2000 income year; and

                     (b)  at the time of making the claim, he or she has not lodged an income tax return for that income year; and

                     (c)  in the claim, he or she states that he or she does not intend to lodge an income tax return for that income year; and

                     (d)  on 1 July 2000, he or she is not receiving a service pension, a carer service pension or an income support supplement; and

                     (e)  the claim is made after 30 June 2000 and before 1 July 2001; and

                      (f)  the claim is given to the Secretary in a form (which may be an electronic form), and in a manner, approved by the Secretary.

             (3)  An individual who makes a proper claim is a Family and Community Services customer .

8   Proper claim can be withdrawn

             (1)  A Family and Community Services customer can withdraw a proper claim that has not been determined.

             (2)  A proper claim that is withdrawn is taken not to have been made.

             (3)  A withdrawal may be made orally or in writing.

9   No further proper claim can be made

                   A Family and Community Services customer cannot make more than one proper claim for a bonus payment under this Part.

10   Qualification for bonus payment

                   A Family and Community Services customer is qualified for a bonus payment under this Part if the customer is qualified for:

                     (a)  only the aged persons savings bonus component of the bonus payment; or

                     (b)  the aged persons savings bonus component, and the self-funded retirees supplementary bonus component, of the bonus payment.

11   Qualification for components of bonus payment

Aged persons savings bonus component

             (1)  A Family and Community Services customer is qualified for the aged persons savings bonus component of a bonus payment if:

                     (a)  he or she is aged 60 or more on 1 July 2000; and

                     (b)  he or she is an Australian resident on 1 July 2000; and

                     (c)  his or her annual retirement income is less than $30,000 and he or she has annual savings and investment income; and

Note:       The customer’s annual retirement income and annual savings and investment income are worked out based on 2 qualifying years or the customer’s circumstances at the time his or her bonus entitlement is determined under this Part: see sections 5 and 6.

                     (d)  the amount of the component, worked out under subsection 15(2), is greater than nil.

Self-funded retirees supplementary bonus component

             (2)  A Family and Community Services customer is qualified for the self-funded retirees supplementary bonus component of a bonus payment if:

                     (a)  he or she is qualified for the aged persons savings bonus component of the bonus payment; and

                     (b)  on 1 July 2000, he is aged 65 or more or she is aged 61 1 / 2 or more; and

                     (c)  at least one of the following applies:

                              (i)  he or she did not receive a disqualifying payment at any time during the period from the start of 1 April 2000 until the end of 1 July 2000;

                             (ii)  he or she received a disqualifying payment during the period from the start of 1 April 2000 until the end of 30 June 2000, his or her partner died during that period and he or she is not receiving a disqualifying payment on 1 July 2000;

                            (iii)  he or she received a disqualifying payment during the period from the start of 1 April 2000 until the end of 1 July 2000 in a circumstance prescribed by the regulations for the purposes of this subparagraph; and

                     (d)  his or her annual savings and investment income is more than $1,000; and

Note:       The customer’s annual savings and investment income is worked out based on either of 2 qualifying years or the customer’s circumstances at the time his or her bonus entitlement is determined under this Part: see sections 5 and 6.

                     (e)  the amount of the self-funded retirees supplementary bonus component, worked out under subsection 15(3), is greater than nil.

12   Secretary to determine proper claim

                   The Secretary must, in accordance with this Part, determine whether or not a proper claim is to be granted.

13   Grant of proper claim

             (1)  The Secretary must determine that a proper claim is to be granted if the Secretary is satisfied that the Family and Community Services customer is qualified for a bonus payment under this Part.

             (2)  The Secretary must give written notice of the determination to the customer. The notice must:

                     (a)  state that he or she is qualified for a bonus payment; and

                     (b)  specify the amount of the bonus payment and how it was worked out; and

                     (c)  include a statement to the effect that he or she may apply for a review of the determination under section 1240 of the Social Security Act 1991 , as applied by this Act.

Note:          A determination that a Family and Community Services customer is qualified for a bonus payment under this Part is treated in the same way as a determination that a person is qualified for a pension bonus under the Social Security Act 1991 : see section 18.

14   Refusal of proper claim

                   If the Secretary determines that a proper claim is not to be granted, the Secretary must give written notice of the determination to the Family and Community Services customer. The notice must:

                     (a)  state that he or she is not qualified for a bonus payment; and

                     (b)  state the reasons for the Secretary’s determination; and

                     (c)  include a statement to the effect that he or she may apply for a review of the determination under section 1240 of the Social Security Act 1991 , as applied by this Act.

Note:          A determination that a Family and Community Services customer is not qualified for a bonus payment under this Part is treated in the same way as a determination that a person is not qualified for a pension bonus under the Social Security Act 1991 : see section 18.

15   Amount of bonus payment

             (1)  The amount of a Family and Community Services customer’s bonus payment is:

                     (a)  if he or she is qualified for only the aged persons savings bonus component of the bonus payment—the amount of that component; or

                     (b)  if he or she is qualified for both the aged persons savings bonus component and the self-funded retirees supplementary bonus component of the bonus payment—the sum of those components.

Aged persons savings bonus component

             (2)  The aged persons savings bonus component of a bonus payment is worked out in accordance with the following table:

Example:    David has annual retirement income of $23,000 and annual savings and investment income of $1,500.

                   David’s aged persons savings bonus component is worked out as follows.

                   David’s annual savings and investment income of $1,500 exceeds the maximum of $1,000, so only $1,000 is potentially allowable.

                   The phasing out fraction of the $1,000 then needs to be subtracted. The fraction is:

                   Therefore 3 / 10 of $1,000 (i.e. $300) needs to be subtracted. This leaves an aged persons savings bonus component of $700.

Self-funded retirees supplementary bonus component

             (3)  The self-funded retirees supplementary bonus component of a bonus payment is worked out in accordance with the following table:

Example:    Kath has annual retirement income of $24,000 and annual savings and investment income of $5,000.

                   Kath’s self-funded retirees supplementary bonus component is worked out as follows.

                   Kath’s annual savings and investment income of $5,000 exceeds the lower limit of $1,000 by $4,000, but this is only allowable up to a maximum of $2,000.

                   The phasing out fraction of the $2,000 then needs to be subtracted. The fraction is:

                   Therefore 4 / 10 of $2,000 (i.e. $800) needs to be subtracted. This leaves a self-funded retirees supplementary bonus component of $1,200.

                   Kath is also entitled to an aged persons savings bonus component of $600: worked out under subsection (2).

                   Kath is entitled to a bonus payment of $1,800.

Bonus payments less than $1 rounded up to $1

             (4)  If the amount of a Family and Community Services customer’s bonus payment worked out under this section is greater than nil and less than $1, the amount is rounded up to $1.

Phasing out fraction

             (5)  In this section:

phasing out fraction means the following fraction:

16   Making of bonus payment

                   If the Secretary determines that a Family and Community Services customer’s claim for a bonus payment is to be granted, the Secretary must, on behalf of the Commonwealth, make the bonus payment to the customer at such time, and in such manner, as the Secretary determines.

Note:          Under the Income Tax Assessment Act 1997 , a bonus payment is exempt from income tax.

17   General administration of Part

                   The Secretary has the general administration of this Part.

18   Application of Social Security Act

             (1)  Except to the extent that provision is made in this Part, the Social Security Act 1991 applies to:

                     (a)  the making of a determination about whether to grant a proper claim for a bonus payment under this Part; and

                     (b)  the making of any payment as a result of such a determination; and

                     (c)  any other matter relating to such a determination or payment;

in the same way as that Act applies to the making of determinations about, and payments of, pension bonus under that Act.

             (2)  For the purposes of so applying the Social Security Act 1991 :

                     (a)  references in that Act to that Act itself are taken to include references to this Act; and

                     (b)  any modifications of that Act that are prescribed by the regulations for the purposes of this section apply.

Note:          This section means that the provisions of the Social Security Act 1991 dealing with matters such as the following will apply:

·        review of determinations;

·        recovery of overpayments;

·        delegation;

·        information gathering;

·        offences relating to false statements;

·        evidentiary matters.