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Further 1998 Budget Measures Legislation Amendment (Social Security) Bill 1999
Schedule 1 Amendments relating to special maintenance income

   

Social Security Act 1991

1  Section 3 (index)

Repeal:

special maintenance income

10(1)

2  Subsection 10(1) (definition of non-cash housing maintenance ) (note)

Omit “and section 1117”.

3  Subsection 10(1) (definition of special maintenance income )

Repeal the definition and the note.

4  Point 1069-J1 (method statement, step 1, note 2)

Repeal the note.

5  Point 1069-J1 (method statement, step 6, note)

Repeal the note, substitute:

Note:          The application for the maintenance income test is affected by section 1116 (apportionment of capitalised maintenance income).

6  Point 1069-J3

Repeal the point.

7  Points 1069-J6 and 1069-J7

Repeal the points.

8  Section 1117

Repeal the section.



 

Schedule 2 Amendments relating to CDEP

   

Social Security Act 1991

1  Section 3 (index of definitions)

Insert the following entries in their appropriate alphabetical positions, determined on a letter-by-letter basis:

CDEP Scheme

23(1)

CDEP Scheme participant

23(1)

CDEP Scheme payment

23(1)

CDEP Scheme quarter

23(1)

2  Section 3 (index of definitions)

Omit:

Commonwealth funded employment program

23(1)

3  After section 3

Insert:

3A   Power of Secretary to make determinations etc.

                   If:

                     (a)  a provision of this Act refers to a determination made, approval given or other act done by the Secretary; and

                     (b)  there is no other provision of this Act expressly conferring power on the Secretary to make the determination, give the approval or do the act;

the Secretary has power by this section to make such a determination, give such an approval or do such an act, as the case requires.

4  Subsection 23(1)

Insert:

CDEP Scheme means the scheme known as the Community Development Employment Projects Scheme.

5  Subsection 23(1)

Insert:

CDEP Scheme participant has the meaning given by section 1188B.

6  Subsection 23(1)

Insert:

CDEP Scheme payment means a payment (expressed as a fortnightly rate) made from the wages component grant under the CDEP Scheme.

7  Subsection 23(1)

Insert:

CDEP Scheme quarter means:

                     (a)  such period (if any) as the Secretary determines in respect of the provision in which the expression occurs; or

                     (b)  in relation to a provision in respect of which there is no determination by the Secretary in force under paragraph (a)—a quarter within the meaning of the CDEP Scheme.

8  Subsection 23(1) (definition of Commonwealth funded employment program )

Repeal the definition.

9  Subsection 23(1) (at the end of the definition of social security recipient status )

Add (but not as part of paragraph (b)):

; and includes status held on or after 20 September 1999 as a CDEP Scheme participant receiving the CDEP Scheme Participant Supplement.

10  Paragraph 408CA(1)(h)

Repeal the paragraph.

11  Section 408CG

Repeal the section, substitute:

408CG   Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

                   The maximum basic rate, and the remote area allowance, of widow allowance for a period are not payable to a woman who is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1:       For remote area allowance see Module J of Benefit Rate Calculator B.

Note 2:       For CDEP Scheme participant see subsection 23(1).

12  At the end of Division 6 of Part 2.8A

Add:

408GI   CDEP Scheme participant may accumulate widow allowance

             (1)  A person who is a CDEP Scheme participant in respect of the whole or a part of a quarter may, by written notice given to the Secretary, choose to accumulate the amounts of any widow allowance that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

             (2)  If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

                     (a)  unless paragraph (b) applies, the last day of the quarter; or

                     (b)  if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

             (3)  In this section:

quarter means a CDEP Scheme quarter.

Note 1:       For CDEP Scheme participant see section 1188B.

Note 2:       For CDEP Scheme quarter see subsection 23(1).

13  Paragraph 500I(1)(g)

Repeal the paragraph.

14  Section 500W

Repeal the section, substitute:

500W   Maximum basic rate and remote area allowance not payable to CDEP Scheme participant who is a member of a couple

                   The maximum basic rate, and the remote area allowance, of a parenting payment for a period is not payable to a person who is a member of a couple and is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1:       For CDEP Scheme participant see subsection 23(1).

Note 2:       For remote area allowance see Module G of PP (partnered) Rate Calculator.

15  At the end of Division 5 of Part 2.10

Add:

504N   CDEP Scheme participant may accumulate parenting payment

             (1)  A person who is a member of a couple, and is a CDEP Scheme participant in respect of the whole or a part of a quarter, may, by written notice given to the Secretary, choose to accumulate the amounts of any parenting payment that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

             (2)  If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

                     (a)  unless paragraph (b) applies, the last day of the quarter; or

                     (b)  if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

             (3)  In this section:

quarter means a CDEP Scheme quarter.

Note 1:       For CDEP Scheme participant see section 1188B.

Note 2:       For CDEP Scheme quarter see subsection 23(1).

16  At the end of Division 9 of Part 2.10

Add:

Subdivision D Bereavement payment in respect of a person who was a CDEP Scheme participant

514FA   Calculation of bereavement payment in respect of former CDEP Scheme participant

                   If a benefit becomes payable under this Division in respect of a person who was a CDEP Scheme participant in respect of the day on which the benefit becomes payable, the amount of the benefit is to be the amount that would have been the amount of the benefit if section 500W had not been enacted.

Note:          For CDEP Scheme participant see section 1188B.

17  Section 540

Omit all the words before paragraph (b), substitute:

                   Subject to this Subdivision, a person is qualified for a youth allowance in respect of a period if:

                     (a)  either of the following applies:

                              (i)  throughout the period the person satisfies the activity test (see Subdivision B) or is not required to satisfy the activity test (see Subdivision C);

                             (ii)  the person is a CDEP Scheme participant (see section 1188B) in respect of the period;

18  Paragraphs 540(b), (c) and (d)

Before “the person” (first occurring), insert “throughout the period”.

19  At the beginning of paragraph 546(1)(c)

Insert “except where the person is a CDEP Scheme participant in respect of the period,”.

20  Paragraphs 552(c) and (d)

Repeal the paragraphs, substitute:

                     (c)  an assurance of support applies to the person (see section 552B).

21  At the end of Subdivision E of Division 2 of Part 2.11

Add:

552C   Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

                   The maximum basic rate, and the remote area allowance, of youth allowance for a period are not payable to a person who is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1:       For remote area allowance see Module K of the Youth Allowance Rate Calculator.

Note 2:       For CDEP Scheme participant see subsection 23(1).

22  At the end of Division 6 of Part 2.11

Add:

559J   CDEP Scheme participant may accumulate youth allowance

             (1)  A person who is a CDEP Scheme participant in respect of the whole or a part of a quarter may, by written notice given to the Secretary, choose to accumulate the amounts of any youth allowance that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

             (2)  If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

                     (a)  unless paragraph (b) applies, the last day of the quarter; or

                     (b)  if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

             (3)  In this section:

quarter means a CDEP Scheme quarter.

Note 1:       For CDEP Scheme participant see section 1188B.

Note 2:       For CDEP Scheme quarter see subsection 23(1).

23  At the end of Division 10 of Part 2.11

Add:

567F   Calculation of bereavement payment in respect of former CDEP Scheme participant

                   If a benefit becomes payable under this Division in respect of a person who was a CDEP Scheme participant in respect of the day on which the benefit becomes payable, the amount of the benefit is to be the amount that would have been the amount of the benefit if section 552C had not been enacted.

Note:          For CDEP Scheme participant see section 1188B.

24  Paragraphs 593(1)(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  the person satisfies the Secretary that:

                              (i)  throughout the period the person is unemployed; or

                             (ii)  the person is a CDEP Scheme participant in respect of the period; and

Note:       For CDEP Scheme participant see section 1188B.

                     (b)  in the case of a person to whom subparagraph (a)(i) applies—throughout the period, or for each period within the period, the person:

                              (i)  satisfies the activity test; or

                             (ii)  is not required to satisfy the activity test; and

25  At the beginning of paragraph 600(1)(c)

Insert “except where the person is a CDEP Scheme participant in respect of the period,”.

26  Paragraph 608(1)(da)

Repeal the paragraph.

27  Section 614A

Repeal the section, substitute:

614A   Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

                   The maximum basic rate, and the remote area allowance, of newstart allowance for a period are not payable to a person who is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1:       For remote area allowance see Module J of Benefit Rate Calculator B.

Note 2:       For CDEP Scheme participant see subsection 23(1).

28  At the end of Division 5 of Part 2.12

Add:

653A   CDEP Scheme participant may accumulate newstart allowance

             (1)  A person who is a CDEP Scheme participant in respect of the whole or a part of a quarter may, by written notice given to the Secretary, choose to accumulate the amounts of any newstart allowance that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

             (2)  If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

                     (a)  unless paragraph (b) applies, the last day of the quarter; or

                     (b)  if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

             (3)  In this section:

quarter means a CDEP Scheme quarter.

Note 1:       For CDEP Scheme participant see section 1188B.

Note 2:       For CDEP Scheme quarter see subsection 23(1).

29  At the end of Subdivision AA of Division 9 of Part 2.12

Add:

660LG   Calculation of bereavement payment in respect of former CDEP Scheme participant

                   If a benefit becomes payable under this Division in respect of a person who was a CDEP Scheme participant in respect of the day on which the benefit becomes payable, the amount of the benefit is to be the amount that would have been the amount of the benefit if section 614A had not been enacted.

Note:          For CDEP Scheme participant see section 1188B.

30  Paragraph 660XCA(1)(e)

Repeal the paragraph.

31  Section 660XCH

Repeal the section.

32  At the end of subsection 660YBA(5)

Add:

Note:          For CDEP Scheme participant see section 1188B.

33  Paragraph 660YCA(1)(e)

Repeal the paragraph.

34  Section 660YCH

Repeal the section, substitute:

660YCH   Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

                   The maximum basic rate, and the remote area allowance, of mature age allowance for a period are not payable to a person who is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1:       For remote area allowance see Module J of Benefit Rate Calculator B.

Note 2:       For CDEP Scheme participant see subsection 23(1).

35  At the end of Division 7 of Part 2.12B

Add:

660YGI   CDEP Scheme participant may accumulate mature age allowance

             (1)  A person who is a CDEP Scheme participant in respect of the whole or a part of a quarter may, by written notice given to the Secretary, choose to accumulate the amounts of any mature age allowance that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

             (2)  If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

                     (a)  unless paragraph (b) applies, the last day of the quarter; or

                     (b)  if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

             (3)  In this section:

quarter means a CDEP Scheme quarter.

Note 1:       For CDEP Scheme participant see section 1188B.

Note 2:       For CDEP Scheme quarter see subsection 23(1).

36  At the end of Division 11 of Part 2.12B

Add:

Subdivision D Bereavement payment in respect of former CDEP Scheme participant

660YKH   Calculation of bereavement payment in respect of former CDEP Scheme participant

                   If a benefit becomes payable under this Division in respect of a person who was a CDEP Scheme participant in respect of the day on which the benefit becomes payable, the amount of the benefit is to be the amount that would have been the amount of the benefit if section 660YCH had not been enacted.

Note:          For CDEP Scheme participant see section 1188B.

37  At the end of section 686

Add:

             (7)  Sickness allowance is not payable to a person in respect of a period if the person is a CDEP Scheme participant in respect of the whole or any part of the period.

38  Paragraph 771HC(1)(e)

Repeal the paragraph.

39  Section 771HK

Repeal the section, substitute:

771HK   Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

                   The maximum basic rate, and the remote area allowance, of partner allowance for a period are not payable to a person who is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1:       For remote area allowance see Module J of Benefit Rate Calculator B.

Note 2:       For CDEP Scheme participant see subsection 23(1).

40  At the end of Division 5 of Part 2.15A

Add:

771KN   CDEP Scheme participant may accumulate partner allowance

             (1)  A person who is a CDEP Scheme participant in respect of the whole or a part of a quarter may, by written notice given to the Secretary, choose to accumulate the amounts of any partner allowance that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

             (2)  If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

                     (a)  unless paragraph (b) applies, the last day of the quarter; or

                     (b)  if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

             (3)  In this section:

quarter means a CDEP Scheme quarter.

Note 1:       For CDEP Scheme participant see section 1188B.

Note 2:       For CDEP Scheme quarter see subsection 23(1).

41  At the end of Division 9 of Part 2.15A

Add:

Subdivision D Bereavement payment in respect of former CDEP Scheme participant

771NZAA   Calculation of bereavement payment in respect of former CDEP Scheme participant

                   If a benefit becomes payable under this Division in respect of a person who was a CDEP Scheme participant in respect of the day on which the benefit becomes payable, the amount of the benefit is to be the amount that would have been the amount of the benefit if section 771HK had not been enacted.

Note:          For CDEP Scheme participant see section 1188B.

42  Point 1067G-A1 (method statement, step 14)

After “plus”, insert “, except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of allowance is being worked out,”.

43  Point 1067G-B1

Omit “A person’s maximum basic rate”, substitute “The maximum basic rate of a person other than a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out”.

44  At the end of point 1067G-B1

Add (but not as part of paragraph (c)):

The maximum basic rate of a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is nil (see section 552C).

45  Point 1068-A1 (method statement, step 7)

After “plus”, insert “, except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of benefit is being worked out,”.

46  Point 1068-B1

Omit “A person’s maximum basic rate”, substitute “The maximum basic rate of a person other than a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out”.

47  Point 1068-B1 (after the third sentence)

Insert “The maximum basic rate of a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is nil (see sections 408CG, 614A, 660YCH and 771HK).”.

48  Point 1068B-A3 (method statement, step 8)

After “plus”, insert “, except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of payment is being worked out,”.

49  Point 1068B-A3A (method statement, step 7)

After “plus”, insert “, except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of payment is being worked out,”.

50  Point 1068B-C1

After “payable to a person”, insert “other than a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out”.

51  Point 1068B-C2

After “payable to a person”, insert “other than a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out”.

52  Section 1068B (at the end of Module C in the PP (partnered) Rate Calculator)

Add:

Maximum basic rate—CDEP Scheme participant

  1068B-C3  The maximum basic rate of a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is nil (see section 500W).

53  After Part 3.15

Insert:

Part 3.15A Community Development Employment Projects Scheme

Division 1 Preliminary

1188A   General effect of Part

             (1)  This Part has the effect, in certain circumstances, of reducing a person’s social security entitlement in respect of a period in respect of which the person is a CDEP Scheme participant.

             (2)  This Part also provides, in certain circumstances, a supplement for a person for a period in respect of which the person is a CDEP Scheme participant.

1188B   CDEP Scheme participants

             (1)  A person is, or is taken to have been, a CDEP Scheme participant in respect of a particular day (the relevant day ) on or after 20 March 1999 if:

                     (a)  the person’s name appeared on the latest CDEP Scheme Participant Schedule, approved on or before the relevant day, and there is no certificate in force, given, after the approval of that Schedule, by an authorised officer stating that the person ceased on or before the relevant day to be a person participating in the CDEP Scheme; or

                     (b)  the person’s name did not appear on that Schedule but a certificate is in force, given, after the approval of that Schedule, by an authorised officer stating that the person began to participate in the CDEP Scheme on or before the relevant day and there is no certificate in force, given, after the issue of the first-mentioned certificate, by an authorised officer stating that the person ceased on or before the relevant day to participate in the CDEP Scheme.

             (2)  Subsection (1) does not apply in relation to a person in respect of a particular day if the Secretary believes, on reasonable grounds, that, on that day:

                     (a)  the person was no longer participating in the program constituted by the CDEP Scheme; or

                     (b)  the person was sick or incapacitated and was not receiving sickness benefits under the CDEP Scheme.

             (3)  In this section:

ATSIC means the Aboriginal and Torres Strait Islander Commission.

authorised officer , in relation to a certificate, means a person authorised by the Chief Executive Officer of ATSIC to give such a certificate.

CDEP Scheme Participant Schedule means a schedule of the names of people participating in the CDEP Scheme that has been approved by ATSIC for the purposes of that Scheme.

relevant day has the meaning given by subsection (1).

Division 2 Reduction in rate of pension or allowance

1188C   Reductions in rate of payments under this Act if recipient or partner also receiving payments under CDEP Scheme

             (1)  If:

                     (a)  an instalment of any of the following:

                              (i)  age pension;

                             (ii)  disability support pension;

                            (iii)  wife pension;

                            (iv)  carer payment;

                             (v)  parenting payment at the rate applicable for a person who is not a member of a couple;

                            (vi)  bereavement allowance;

                           (vii)  widow B pension;

                           (viii)  special benefit;

                            (ix)  special needs pension;

                             (x)  mature age allowance under Part 2.12A;

                            (xi)  mature age partner allowance;

                            is payable to a person in respect of a payment period or in respect of a pension payday; and

                     (b)  a CDEP Scheme payment is payable to the person or the person’s partner in respect of the whole or a part of that payment period or in respect of that pension payday, as the case may be;

the following provisions have effect:

                     (c)  if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person exceeds the person’s threshold:

                              (i)  the amount of the instalment is reduced by the part of the CDEP Scheme payment that does not exceed the person’s threshold; and

                             (ii)  the ordinary income of the person includes the part of the CDEP Scheme payment that exceeds the person’s threshold;

                     (d)  if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person does not exceed the person’s threshold:

                              (i)  the amount of the instalment is reduced by the amount of the CDEP Scheme payment; and

                             (ii)  the CDEP Scheme payment is not ordinary income of the person;

                     (e)  if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person’s partner exceeds the partner’s threshold:

                              (i)  the part of the CDEP Scheme payment that does not exceed the partner’s threshold is not ordinary income of the person or of the person’s partner; and

                             (ii)  the ordinary income of the person’s partner includes the part of the CDEP Scheme payment that exceeds the partner’s threshold;

                      (f)  if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person’s partner does not exceed the partner’s threshold, the CDEP Scheme payment is not ordinary income of the person or of the person’s partner.

             (2)  If a person who had been receiving instalments of a pension payment, allowance or benefit referred to in paragraph (1)(a) dies, then, in calculating any bereavement payment in respect of the person, any deductions made from the amounts of the instalments under subparagraph (1)(c)(i), (d)(i) or (e)(i) are to be disregarded.

             (3)  If:

                     (a)  a payment of any of the following:

                              (i)  widow allowance;

                             (ii)  newstart allowance;

                            (iii)  youth allowance;

                            (iv)  parenting payment at the rate applicable for a person who is a member of a couple;

                             (v)  partner allowance;

                            (vi)  mature age allowance under Part 2.12B;

                            is payable to a person in respect of a payment period; and

                     (b)  a CDEP Scheme payment is payable to the person in respect of the whole or a part of that period;

the following provisions have effect:

                     (c)  if the CDEP Scheme payment referred to in paragraph (b) exceeds the person’s threshold, the ordinary income of the person includes the part of the CDEP Scheme payment that exceeds the person’s threshold;

                     (d)  if the CDEP Scheme payment referred to in paragraph (b) does not exceed the person’s threshold, the CDEP Scheme payment is not ordinary income of the person.

             (4)  This section applies in respect of payment periods beginning on or after 20 September 1999.

             (5)  In this section:

threshold :

                     (a)  in relation to a person, means the amount referred to in column 4 of Table A in this subsection that is applicable in relation to the person having regard to the type of pension, allowance, benefit or payment referred to in column 2 of that table that would be payable to the person if the person were not a CDEP Scheme participant and the situation (if any) referred to in column 3 of that table that is applicable to the person; or

                     (b)  in relation to the partner of a person, means:

                              (i)  if the partner is not receiving any pension, allowance, benefit or other payment under this Act—the amount specified in item 7 of column 3B of Table B in point 1068-B1; or

                             (ii)  if the partner is receiving a pension, allowance, benefit or other payment under this Act—the amount that would be applicable under the appropriate item in Table A in this subsection if that table applied to the partner, having regard to the type of pension, allowance, benefit or other payment referred to in column 2 of that table that is payable to the partner and the situation (if any) referred to in column 3 of that table that is applicable to the partner.

 

Table A—Threshold amounts

Column 1

Item

Column 2

Type of pension, allowance, benefit or payment

Column 3

Situation

Column 4

Person’s threshold

1

Age pension

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

2

Age pension

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

3

Disability support pension

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the amount specified in column 4B of the item of Table B in point 1066A-B1 that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

4

Disability support pension

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the amount specified in column 4B of the item in Table B in point 1066A-B1 that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

5

Wife pension

 

The amount specified in column 3B of item 7 of Table B in point 1068-B1

6

Carer payment

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

7

Carer payment

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

8

Bereavement allowance

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

9

Bereavement allowance

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

10

Widow B pension

 

The amount specified in column 3B of item 4A of Table B in point 1068-B1

11

Special needs pension

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

12

Special needs pension

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

13

Mature age allowance under Part 2.12A

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

14

Mature age allowance under Part 2.12A

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

15

Mature age partner allowance

 

The amount specified in column 3B of item 7 of Table B in point 1068-B1

16

Newstart allowance

Not member of a couple and is under the age of 60

The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

17

Newstart allowance

Not member of a couple, is over the age of 60, and has been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit or a service pension

The amount specified in column 3B of item 5 of Table B in point 1068-B1

18

Newstart allowance

Not member of a couple, is over the age of 60, and has not been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit or a service pension

The amount specified in column 3B of item 4B of Table B in point 1068-B1

19

Newstart allowance

Not member of a couple and has a dependent child

The amount specified in column 3A of item 4A of Table B in point 1068-B1

20

Newstart allowance

Member of illness separated couple, whether or not the person has a dependent child

The amount specified in column 3B of item 9 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

21

Newstart allowance

Member of a couple whether or not the person has a dependent child

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

22

Newstart allowance

Member of a couple but partner in gaol

The amount specified in column 3B of item 11 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

23

Widow allowance

Under the age of 60

The amount specified in column 3B of item 4A of Table B in point 1068-B1

24

Widow allowance

Over the age of 60 and has been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit or a service pension

The amount specified in column 3B of item 5 of Table B in point 1068-B1

25

Widow allowance

Over the age of 60 and has not been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit or a service pension

The amount specified in column 3B of item 4B of Table B in point 1068-B1

26

Special benefit

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

27

Special benefit

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

28

Partner allowance

 

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

29

Mature age allowance under Part 2.12B

Not member of a couple

The amount specified in column 3B of item 5A of Table B in point 1068-B1

30

Mature age allowance under Part 2.12B

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1

31

Parenting payment

Not member of a couple

The amount specified in column 3B of item 4A of Table B in point 1068-B1

32

Parenting payment

Member of a couple

The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser

33

Youth allowance

Not independent

The amount specified in column 3 of the item of Table BA in point 1067G-B2 that would apply to the person if the person were not a CDEP Scheme participant

34

Youth allowance

Independent

The amount specified in column 3 of the item of Table BB in point 1067G-B3 that would apply to the person if the person were not a CDEP Scheme participant

Note:          For CDEP Scheme payment see subsection 23(1).

Division 3 CDEP Scheme Participant Supplement

1188D   Entitlement to Supplement: people receiving pension-type payments on or after 20 March 1999

             (1)  This section applies in respect of:

                     (a)  payment periods beginning on or after 20 March 1999; and

                     (b)  pension paydays occurring on or after that date.

             (2)  This section applies to a person in respect of a payment period (the relevant payment period ) or in respect of a pension payday (the relevant pension payday ) if:

                     (a)  an instalment of any of the following:

                              (i)  age pension;

                             (ii)  disability support pension;

                            (iii)  wife pension;

                            (iv)  carer payment;

                             (v)  parenting payment at the rate applicable for a person who is not a member of a couple;

                            (vi)  bereavement allowance;

                           (vii)  widow B pension;

                           (viii)  special needs pension;

                            (ix)  mature age allowance under Part 2.12A;

                             (x)  mature age partner allowance;

                            is payable to a person in respect of the relevant payment period or the relevant pension payday; and

                     (b)  the person meets the requirements of subsection (3) or (4).

             (3)  The requirements of this subsection are:

                     (a)  that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday; and

                     (b)  that a CDEP Scheme payment is payable to the person in respect of the relevant payment period or the relevant pension payday.

             (4)  The requirements of this subsection are:

                     (a)  that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday; and

                     (b)  that a CDEP Scheme payment was payable to the person:

                              (i)  in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period; or

                             (ii)  in respect of the 3 pension paydays immediately before the relevant pension payday.

             (5)  If this section applies to the person in respect of the relevant payment period or the relevant pension payday, then, subject to subsection (6), a CDEP Scheme Participant Supplement of $20 is payable to the person in respect of that period or payday.

Note:          For CDEP Scheme payment see subsection 23(1).

             (6)  A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.

1188E   Entitlement to Supplement between 20 March 1999 and 19 September 1999: people not covered by section 1188D

             (1)  This section applies in respect of:

                     (a)  payment periods beginning on or after 20 March 1999 and not later than 19 September 1999; or

                     (b)  pension paydays occurring on or after 20 March 1999 and not later than 19 September 1999.

             (2)  This section applies to a person in respect of a payment period (the relevant payment period ) or in respect of a pension payday (the relevant pension payday ) if the person meets the requirements of subsections (3) and (4).

             (3)  The requirements of this subsection are:

                     (a)  that a CDEP Scheme payment is payable to the person in respect of the relevant payment period or the relevant pension payday; or

                     (b)  that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday and a CDEP Scheme payment was payable to the person:

                              (i)  in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period; or

                             (ii)  in respect of the 3 pension paydays immediately before the relevant pension payday.

             (4)  The requirement of this subsection is that the person satisfies the CDEP Scheme Participant Supplement income test in respect of the relevant payment period, or in respect of the payment period in which the relevant pension payday occurs, as mentioned in subsection (5) or (6), as the case requires.

             (5)  This is how to work out whether a person who is not a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement

Step 1 .   If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2 .   Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3 .   Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4 .   Assume that the person’s maximum basic rate is the sum of:

               (a)     the amount specified in column 3B of item 4A of Table B in point 1068-B1; and

               (b)     the amount specified in column 4 of item 1 of Table F in point 1068-F15.

Step 5 .   Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3 and 4.

Step 6 .   The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 5 is greater than zero.

             (6)  This is how to work out whether a person who is a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement

Step 1 .   If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2 .   Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3 .   Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4 .   Work out the total amount of any CDEP Scheme payments payable to the person’s partner in respect of the period.

Step 5 .   Assume that the person’s partner’s ordinary income worked out on a fortnightly basis is increased by the total amount worked out under Step 4.

Step 6 .   Assume that the person’s maximum basic rate is the sum of:

               (a)     the amount specified in column 3B of item 7 of Table B in point 1068-B1; and

               (b)     the amount specified in column 4 of item 2 of Table F in point 1068-F15.

Step 7 .   Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3, 5 and 6.

Step 8 .   The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 7 is greater than zero.

             (7)  If this section applies to the person in respect of the relevant payment period or the relevant pension payday then, subject to subsections (8) and (9), a CDEP Scheme Participant Supplement of $20 is payable to the person in respect of that period or payday.

             (8)  A CDEP Scheme Participant Supplement is not payable to a person under subsection (7) if:

                     (a)  the Secretary has made a request of the person in respect of the tax file number of the person or of his or her partner; and

                     (b)  the person has failed to satisfy the request; and

                     (c)  the Secretary has not exempted the person from having to satisfy the request.

Note 1:       CDEP Scheme participant see subsection 23(1).

Note 2:       For CDEP Scheme payment see subsection 23(1).

             (9)  A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.

1188F   Entitlement to Supplement on or after 20 September 1999: people not covered by section 1188D

             (1)  This section applies in respect of:

                     (a)  payment periods beginning on or after 20 September 1999; or

                     (b)  pension paydays occurring on or after that date.

             (2)  Subject to subsection (3), this section applies to a person:

                     (a)  in respect of a payment period (the relevant payment period ) if the person is qualified in respect of that period for any of the following:

                              (i)  widow allowance;

                             (ii)  newstart allowance;

                            (iii)  youth allowance;

                            (iv)  special benefit;

                             (v)  parenting payment at the rate applicable for a person who is a member of a couple;

                            (vi)  partner allowance;

                           (vii)  mature age allowance under Part 2.12B; or

                     (b)  in respect of a payment period (also the relevant payment period ) or in respect of a pension payday (the relevant pension payday ) if the person is qualified in respect of that period or payday for any of the following:

                              (i)  age pension;

                             (ii)  disability support pension;

                            (iii)  wife pension;

                            (iv)  carer payment;

                             (v)  parenting payment at the rate applicable for a person who is not a member of a couple;

                            (vi)  bereavement allowance;

                           (vii)  widow B pension;

                           (viii)  special needs pension;

                            (ix)  mature age allowance under Part 2.12A;

                             (x)  mature age partner allowance;

                            but the pension, payment or allowance for which the person is qualified under this paragraph is not payable to the person in respect of that period or payday.

             (3)  This section does not apply to a person in respect of the relevant payment period or the relevant pension payday unless the person meets the requirements of subsections (4), (5), (6) and (7) in respect of the relevant payment period or the relevant pension payday, as the case may be.

             (4)  The requirements of this subsection are:

                     (a)  that a CDEP Scheme payment is payable to the person in respect of the relevant payment period or the relevant pension payday; or

                     (b)  that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday and a CDEP Scheme payment was payable to the person:

                              (i)  in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period; or

                             (ii)  in respect of the 3 pension paydays immediately before the relevant pension payday.

             (5)  The requirement of this subsection is that the person satisfies the CDEP Scheme Participant Supplement income test in respect of the relevant payment period, or in respect of the payment period in which the relevant pension payday occurs, as mentioned in subsection (8) or (9), as the case requires.

             (6)  The requirement of this subsection is that the relevant payment period or relevant pension payday does not fall within:

                     (a)  a waiting period; or

                     (b)  a liquid assets test waiting period; or

                     (c)  a lump sum preclusion period; or

                     (d)  a compensation preclusion period (see Part 3.14).

             (7)  The requirement of this subsection is that the relevant payment period occurs within a period in respect of which the relevant allowance, benefit or payment referred to in paragraph (2)(a) is not payable, or the relevant pension payday is a day on which the relevant pension referred to in paragraph (2)(b) would not be payable, to the person because of the operation of a provision of this Act relating to:

                     (a)  seasonal or intermittent workers; or

                     (b)  the value of the assets of the person or of his or her partner.

             (8)  This is how to work out whether a person who is not a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement

Step 1 .   If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2 .   Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3 .   Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4 .   Assume that the person’s maximum basic rate is the sum of:

               (a)     the amount specified in column 3B of item 4A of Table B in point 1068-B1; and

               (b)     the amount specified in column 4 of item 1 of Table F in point 1068-F15.

Step 5 .   Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3 and 4.

Step 6 .   The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 5 is greater than zero.

             (9)  This is how to work out whether a person who is a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement

Step 1 .   If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2 .   Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3 .   Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4 .   Work out the total amount of any CDEP Scheme payments payable to the person’s partner in respect of the period.

Step 5 .   Assume that the person’s partner’s ordinary income worked out on a fortnightly basis is increased by the total amount worked out under Step 4.

Step 6 .   Assume that the person’s maximum basic rate is the sum of:

               (a)     the amount specified in column 3B of item 7 of Table B in point 1068-B1; and

               (b)     the amount specified in column 4 of item 2 of Table F in point 1068-F15.

Step 7 .   Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3, 5 and 6.

Step 8 .   The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 7 is greater than zero.

           (10)  If this section applies to the person in respect of the relevant payment period or the relevant pension payday then, subject to subsections (11) and (12), a CDEP Scheme Participant Supplement of $20 is payable to the person in respect of that period or payday.

           (11)  A CDEP Scheme Participant Supplement is not payable to a person under subsection (10) if:

                     (a)  the Secretary has made a request of the person in respect of the tax file number of the person or of his or her partner; and

                     (b)  the person has failed to satisfy the request; and

                     (c)  the Secretary has not exempted the person from having to satisfy the request.

Note 1:       CDEP Scheme participant see subsection 23(1).

Note 2:       For CDEP Scheme payment see subsection 23(1).

           (12)  A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.

1188G   Notification of periods in respect of which a CDEP Scheme payment is not payable

                   If:

                     (a)  section 1188F applies to a person; and

                     (b)  a CDEP Scheme payment is payable to the person in respect of a payment period beginning on or after 20 September 1999; and

                     (c)  a CDEP Scheme payment is not payable to the person in respect of the next following payment period;

the person must notify the Secretary, as soon as practicable after section 1188F ceases to apply to the person, that a CDEP Scheme payment is not payable to the person in respect of that following payment period.

1188H   Person receiving CDEP Scheme Participant Supplement to be taken to be in receipt of a social security benefit or pension

                   A person who receives a CDEP Scheme Participant Supplement in respect of a payment period or pension payday is taken, for the purposes of this Act, to be in receipt of the social security benefit or social security pension for which the person is qualified in respect of that period.

1188J   CDEP Scheme participant may accumulate supplement

             (1)  A person who is a CDEP Scheme participant in respect of the whole or a part of a quarter may, by written notice given to the Secretary, choose to accumulate the amounts of any supplement that became or become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

             (2)  A person who was a CDEP Scheme participant in respect of a payment period that ended, or a pension payday that occurred, before 20 September 1999, is taken to have made a choice under subsection (1) in respect of the amounts of any supplement that became payable to him or her in respect of that period or payday.

             (3)  If a person makes, or is taken to have made, a choice under subsection (1), the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

                     (a)  unless paragraph (b) applies—the last day of the quarter or 19 September 1999, whichever is the later; or

                     (b)  if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases or 19 September 1999, whichever is the later.

             (4)  In this section:

quarter means a CDEP Scheme quarter.

Note 1:       For CDEP Scheme participant see section 1188B.

Note 2:       For CDEP Scheme quarter see subsection 23(1).

1188K   Need for a claim

             (1)  A person who wants to be granted a CDEP Scheme Participant Supplement must make a proper claim for the supplement.

             (2)  To be a proper claim, a claim must be made in such manner, and within such period, as the Secretary determines.

Division 4 Transitional

1188L   Existing CDEP Scheme participants to be treated as long-term social security recipients

                   A person who, if this Part had been in force on 19 September 1999, would have been a CDEP Scheme participant in respect of that day for the purposes of this Part is taken, for the purposes of the definition of long-term social security recipient in subsection 23(1), to have had social security recipient status continuously for the period of 52 weeks ending on that day.

1188M   Certain people receiving CDEP Scheme Participant Supplement to be taken to have been receiving social security benefit for 9 months

                   A person who receives CDEP Scheme Participant Supplement:

                     (a)  in respect of both 19 September 1999 (the first qualifying day ) and the following day (the second qualifying day ); or

                     (b)  in respect of both the payment period in which the first qualifying day occurs and the payment period in which the second qualifying day occurs;

is taken, for the purposes of the definition of pensioner in subsection 4(1) of the National Health Act 1953 , to have been receiving the social security benefit on the first qualifying day for a continuous period of 9 months.

54  After subsection 1231A(1A)

Insert:

          (1B)  If the person concerned elects in writing that this subsection is to apply in relation to him or her, the Secretary may decide under subsection (1A) that the amount by which each payment of the person’s social security payment is to be reduced is such amount as results in reducing the payment to nil.



 

Schedule 3 Amendments relating to special employment advance

Part 1 Amendments introducing a special employment advance for certain persons

Social Security Act 1991

1  Section 3 (index)

Insert the following entry in its appropriate alphabetical position, determined on a letter-by-letter basis:

special employment advance qualifying entitlement

23(1)

2  Subsection 23(1)

Insert:

special employment advance qualifying entitlement means:

                     (a)  an austudy payment; or

                     (b)  a carer payment; or

                     (c)  a disability support pension; or

                     (d)  a mature age allowance; or

                     (e)  a mature age partner allowance; or

                      (f)  a newstart allowance; or

                     (g)  a pension PP (single); or

                     (h)  a widow B pension; or

                      (i)  a widow allowance; or

                      (j)  a wife pension; or

                     (k)  a youth allowance.

3  Paragraph 129(1)(b)

Omit “either or both”, substitute “any one or more”.

4  Subparagraph 129(1)(b)(ii)

Omit “and”.

5  At the end of paragraph 129(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of disability support pension payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

6  Subsection 129(2) (method statement, step 1)

Omit “or advance payment of disability support pension”, substitute “, advance payment of disability support pension or special employment advance of disability support pension”.

7  Paragraph 171(1)(b)

Omit “either or both”, substitute “any one or more”.

8  Subparagraph 171(1)(b)(ii)

Omit “and”.

9  At the end of paragraph 171(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of wife pension payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

10  Subsection 171(2) (method statement, step 1)

Omit “or advance payment of wife pension”, substitute “, advance payment of wife pension or special employment advance of wife pension”.

11  Paragraph 221(1)(b)

Omit “either or both”, substitute “any one or more”.

12  Subparagraph 221(1)(b)(ii)

Omit “and”.

13  At the end of paragraph 221(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of carer payment payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

14  Subsection 221(2) (method statement, step 1)

Omit “or advance payment of carer payment”, substitute “, advance payment of carer payment or special employment advance of carer payment”.

15  Paragraph 388(1)(b)

Omit “either or both”, substitute “any one or more”.

16  Subparagraph 388(1)(b)(ii)

Omit “and”.

17  At the end of paragraph 388(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of widow B pension payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

18  Subsection 388(2) (method statement, step 1)

Omit “or advance payment of widow B pension”, substitute “, advance payment of widow B pension or special employment advance of widow B pension”.

19  Paragraph 408HB(1)(b)

Omit “either or both”, substitute “any one or more”.

20  Subparagraph 408HB(1)(b)(ii)

Omit “and”.

21  At the end of paragraph 408HB(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of widow allowance payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

22  Subsection 408HB(2) (method statement, step 1)

Omit “or advance payment of widow allowance”, substitute “, advance payment of widow allowance or special employment advance of widow allowance”.

23  Paragraph 505A(1)(b)

Omit “either or both”, substitute “any one or more”.

24  Subparagraph 505A(1)(b)(ii)

Omit “and”.

25  At the end of paragraph 505A(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of parenting payment payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

26  Subsection 505A(2) (method statement, step 1)

Omit “or advance payment of parenting payment”, substitute “, advance payment of parenting payment or special employment advance of parenting payment”.

27  Paragraph 560A(1)(b)

Repeal the paragraph, substitute:

                     (b)  either or both of the following apply:

                              (i)  instalments of youth allowance payable to the person are being paid (whether on the person’s own behalf or not) to the credit of the account;

                             (ii)  a special employment advance of youth allowance payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

28  Subsection 560A(2) (method statement, step 1)

After “youth allowance”, insert “or special employment advance of youth allowance”.

29  Paragraph 585A(1)(b)

Repeal the paragraph, substitute:

                     (b)  either or both of the following apply:

                              (i)  instalments of austudy payment payable to the person are being paid (whether on the person’s own behalf or not) to the credit of the account;

                             (ii)  a special employment advance of austudy payment payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

30  Subsection 585A(2) (method statement, step 1)

After “austudy payment”, insert “or special employment advance of austudy payment”.

31  Paragraph 655(1)(b)

Omit “either or both”, substitute “any one or more”.

32  Subparagraph 655(1)(b)(ii)

Omit “and”.

33  At the end of paragraph 655(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of newstart allowance payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

34  Subsection 655(2) (method statement, step 1)

Omit “or advance payment of newstart allowance”, substitute “, advance payment of newstart allowance or special employment advance of newstart allowance”.

35  Paragraph 660XHB(1)(b)

Omit “either or both”, substitute “any one or more”.

36  Subparagraph 660XHB(1)(b)(ii)

Omit “and”.

37  At the end of paragraph 660XHB(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of mature age allowance or mature age partner allowance payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

38  Subsection 660XHB(2) (method statement, step 1)

Omit “or advance payment of mature age allowance or mature age partner allowance”, substitute “, advance payment of mature age allowance or mature age partner allowance or special employment advance of mature age allowance or mature age partner allowance”.

39  Paragraph 660YHB(1)(b)

Omit “either or both”, substitute “any one or more”.

40  Subparagraph 660YHB(1)(b)(ii)

Omit “and”.

41  At the end of paragraph 660YHB(1)(b)

Add:

                            (iii)  a special employment advance, or an instalment of special employment advance, of mature age allowance payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account; and

42  Subsection 660YHB(2) (method statement, step 1)

Omit “or advance payment of mature age allowance”, substitute “, advance payment of mature age allowance or special employment advance of mature age allowance”.

43  After Part 2.22

Insert:

Part 2.22A Special employment advances

Division 1 Qualification for special employment advance

1061EM   Qualification for special employment advance

             (1)  Subject to section 1061EO, a person is qualified for a special employment advance at a particular time (the relevant time ) only if:

                     (a)  the person is qualified for a special employment advance qualifying entitlement at the relevant time; and

                     (b)  the person has been receiving an income support payment for a continuous period of 3 months immediately before the day on which the person’s application for the special employment advance is made; and

                     (c)  either of the following applies:

                              (i)  the person or, if the person is a member of a couple, the person’s partner has earned from casual work in Australia, but has not received, income (the unreceived income );

                             (ii)  the Secretary is satisfied that the person has received a definite offer of employment in Australia (the offered employment ) for a period of not less than 6 weeks and needs financial assistance from the Commonwealth to enable him or her to take up the employment; and

                     (d)  subsection (2) or (3), as the case requires, applies for the purpose of determining whether the person is qualified for a special employment advance at the relevant time; and

                     (e)  where subparagraph (c)(i) applies—the person is in severe financial hardship; and

                      (f)  the Secretary is satisfied that the person will not suffer financial hardship as a result of the recovery by the Commonwealth of the special employment advance.

             (2)  This subsection applies for the purpose of determining whether a person is qualified for a special employment advance at the relevant time only where:

                     (a)  the person’s application for the advance was based on the effect of the unreceived income on the person’s special employment advance qualifying entitlement; and

                     (b)  the person is not a CDEP Scheme participant; and

                     (c)  either of the following subparagraphs applies:

                              (i)  if the person were qualified for the special employment qualifying entitlement on the next payday for the entitlement at a rate equal to the maximum basic rate of the entitlement, the rate of the entitlement on that payday would be reduced by at least 50% as a result of the person or the person’s partner having earned the unreceived income;

                             (ii)  subparagraph (i) does not apply in respect of the person but, if the person were qualified for the special employment qualifying entitlement on 2 or more paydays for the entitlement at a rate equal to the maximum basic rate of the entitlement, the average of the rates of the entitlement on those paydays would be reduced by at least 50% as a result of the person or the person’s partner having earned the unreceived income.

             (3)  This subsection applies for the purpose of determining whether a person is qualified for a special employment advance at the relevant time only where the person’s application for the advance was based on the person’s need for financial assistance from the Commonwealth to enable him or her to take up the offered employment and:

                     (a)  if the person were qualified for the special employment qualifying entitlement on each of the paydays for the entitlement that occur in the period of 6 weeks referred to in subparagraph (1)(c)(ii) at a rate equal to the maximum basic rate of the entitlement, the average of the rates of the entitlement on those paydays:

                              (i)  would be reduced by at least 50% as a result of the person having taken up the offered employment; or

                             (ii)  would be so reduced if Module J of the Youth Allowance Rate Calculator in section 1067G or Module E of the Austudy Payment Rate Calculator were disregarded; or

                     (b)  the person would cease to be qualified for the special employment advance qualification upon his or her taking up the offered employment.

1061EN   Meaning of in severe financial hardship

             (1)  For the purposes of paragraph 1061EM(1)(e) as it applies to a person who makes a claim for special employment advance, the person is in severe financial hardship if:

                     (a)  where the person is not a member of a couple—the value of the person’s liquid assets (within the meaning of subsection 14A(1)) is less than the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the person; or

                     (b)  where the person is a member of a couple—the value of the person’s liquid assets (within the meaning of subsection 14A(2)) is less than twice the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the person.

             (2)  If the person referred to in subsection (1) is a CDEP Scheme participant, then, in determining for the purposes of that subsection the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement payable to the person, the person’s maximum basic rate is taken to be the rate that would be that maximum basic rate if sections 408CG, 500W, 552C, 614A, 660YCH and 771HK had not been enacted.

1061EO   Person not qualified in certain circumstances

             (1)  A person is not qualified for a special employment advance if:

                     (a)  the lump sum amount, or the total of the amounts of the instalments, as the case may be, of the special employment advance to which the person would be entitled under Division 4 is less than $50; or

                     (b)  the person owes a debt to the Commonwealth (whether arising under this Act or not) and the debt is recoverable under Part 5.2 by means of deductions from the person’s social security payment; or

                     (c)  where subparagraph 1061EM(1)(c)(ii) applies in respect of the person—the person is participating in a program for the placing of people in employment and the program has been declared by the Secretary, in writing, to be a program to which this paragraph applies.

             (2)  A declaration under paragraph (1)(c) is a disallowable instrument.

Division 2 Claim for special employment advance

1061EP   Claim

             (1)  A person who wants a special employment advance under this Part must make a proper claim for the advance in accordance with this Division.

             (2)  To be a proper claim, a claim must be made in writing and must be in accordance with a form approved by the Secretary.

             (3)  The claimant must specify the amount of special employment advance sought.

1061EQ   Lodgment of claim

             (1)  To be a proper claim, a claim must be lodged:

                     (a)  at an office of the Department; or

                     (b)  at a place approved for the purpose by the Secretary; or

                     (c)  with a person approved for the purpose by the Secretary.

             (2)  A place or person approved under subsection (1) must be a place or person in Australia.

             (3)  The claimant must be in Australia when the claim is lodged.

1061ER   Provisions relating to claims

             (1)  Subject to subsection (2), if a claim based on the effect of the unreceived income on the claimant’s special employment advance qualifying entitlement is lodged before the first payday for that entitlement on which an instalment of that entitlement is not payable or is reduced as a result of the claimant, or the claimant’s partner, having earned the income, the claim is taken to have been made on that payday.

             (2)  If:

                     (a)  the claimant’s special employment advance qualifying entitlement referred to in subsection (1) is an entitlement in respect of which the Secretary has determined that this subsection applies; and

                     (b)  the claim is lodged before the payday referred to in subsection (1);

the Secretary may treat the claim as having been made on a day earlier than that payday that the Secretary considers appropriate having regard to the kind of entitlement concerned.

             (3)  A claim based on the need for financial assistance from the Commonwealth to take up the offered employment must set out:

                     (a)  particulars (including the duration) of the employment; and

                     (b)  the way in which the financial assistance is to be expended to enable the claimant to take up the employment.

             (4)  This section has effect subject to section 1061ES.

1061ES   Person contacting Department before lodging claim

             (1)  If:

                     (a)  a person contacts the Department in relation to his or her claiming a special employment advance; and

                     (b)  the person is, on the day on which he or she contacts the Department, qualified for the special employment advance; and

                     (c)  the person lodges a claim for the special employment advance within 14 days after the day on which he or she contacts the Department; and

                     (d)  the Department has a record of the person contacting the Department;

the person is taken to have made a claim for the special employment advance on the later of the following days:

                     (e)  the day on which the person contacted the Department;

                      (f)  the day on which the claim would, apart from this section, be taken under section 1061ER to be made.

             (2)  In this section:

contacts the Department includes contacts the Department by post or telephone or by the transmission of a message by the use of facsimile, computer equipment or any other electronic means.

1061ET   Claim may be withdrawn

             (1)  A claimant for a special employment advance or a person acting on behalf of a claimant may withdraw a claim that has not been determined.

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

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

Division 3 Determination of claim and payment of special employment advance

1061EU   Secretary to determine claim

             (1)  The Secretary must determine the claim in accordance with this Act.

             (2)  Subject to subsection (3), the Secretary must grant the claim if the Secretary is satisfied that the claimant is qualified for the special employment advance.

             (3)  Subject to subsection (4), the Secretary must refuse a claim that is based on the effect of the unreceived income on the claimant’s special employment advance qualifying entitlement if the Secretary is satisfied that the income will be received within 2 days after the claim is lodged.

             (4)  Subsection (3) does not apply if the Secretary considers that the claimant’s financial needs are such that the claim should be granted.

1061EV   Payment of special employment advance

                   If the claim is granted, the special employment advance is to be paid:

                     (a)  subject to paragraph (b), in a lump sum as soon as practicable after the claim is granted; or

                     (b)  if the Secretary considers that it is appropriate for the advance to be paid by instalments—by instalments at such times and in such amounts as the Secretary determines.

Division 4 Amount of special employment advance

1061EW   Where claim based on effect of unreceived income on special employment advance qualifying entitlement

             (1)  This section applies where the claim was based on the effect of the unreceived income on the claimant’s special employment advance qualifying entitlement.

             (2)  Subject to section 1061EY, the total amount of the special employment advance payable to the claimant is to be the smallest of the following amounts:

                     (a)  the amount sought in the claim for the advance;

                     (b)  the amount by which the instalment, or the sum of the amounts by which the instalments, of the claimant’s special employment advance qualifying entitlement is or will be reduced because of the unreceived income;

                     (c)  $500;

                     (d)  if an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth—the difference between that amount and $500.

1061EX   Where claim based on claimant’s need for financial assistance to take up offered employment

             (1)  This section applies where the claim was based on the claimant’s need for financial assistance to take up offered employment.

             (2)  Subject to the following provisions of this section and section 1061EY, the total amount of the special employment advance payable to the claimant is to be the smallest of the following amounts:

                     (a)  the amount sought in the claim for the advance;

                     (b)  the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;

                     (c)  $500.

             (3)  If:

                     (a)  an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth; and

                     (b)  the sum of:

                              (i)  the amount referred to in paragraph (a); and

                             (ii)  the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;

                            is not more than $500;

the total amount of the special employment advance payable to the claimant is the amount referred to in subparagraph (b)(ii).

             (4)  If:

                     (a)  an amount of special employment advance previously paid to the claimant has not been repaid to, or recovered by, the Commonwealth; and

                     (b)  the sum of:

                              (i)  the amount referred to in paragraph (a); and

                             (ii)  the amount of financial assistance needed by the claimant from the Commonwealth to take up the offered employment;

                            is more than $500;

the following paragraphs have effect:

                     (c)  where the amount referred to in paragraph (a) is less than $500 and the claimant satisfies the Secretary that the claimant would have sufficient financial resources to enable him or her to take up the offered employment if the total amount of the special employment advance payable were an amount equal to the difference between $500 and the amount referred to in paragraph (a)—the total amount of the special employment advance payable to the claimant is an amount equal to that difference;

                     (d)  where paragraph (c) does not apply—no amount of special employment advance is payable to the claimant.

             (5)  If:

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

                     (b)  the value of the claimant’s liquid assets (within the meaning of subsection 14A(1)) exceeds the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the claimant;

the total amount of the special employment advance that, apart from this subsection, would be payable to the claimant under subsections (2) to (4) is reduced by the amount of the excess.

             (6)  If:

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

                     (b)  the value of the claimant’s liquid assets (within the meaning of subsection 14A(2)) exceeds twice the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to the claimant;

the total amount of the special employment advance that, apart from this subsection, would be payable to the claimant under subsections (2) to (4) is reduced by the amount of the excess.

             (7)  In determining for the purposes of subsection (5) or (6) the fortnightly amount of the maximum payment rate of the special employment advance qualifying entitlement that is payable to a claimant who is a CDEP Scheme participant, the claimant’s maximum basic rate is taken to be the rate that would be that maximum basic rate if sections 408CG, 500W, 552C, 614A, 660YCH and 771HK had not been enacted.

1061EY   Reduction of special employment advance by amount of any employment entry payment

                   If:

                     (a)  a person claims a special employment advance; and

                     (b)  an employment entry payment has been paid, or is payable, to the person in respect of the employment referred to in subparagraph 1061EM(1)(c)(i) or (ii);

the total amount of the special employment advance that, apart from this section, would be payable to the person is reduced by the amount of the employment entry payment.

Division 5 Payment of special employment advance

1061EZ   Special employment advance to be paid to person or nominee

             (1)  Subject to subsection (3), an amount that is payable to a person under this Part is to be paid to the person.

             (2)  The Secretary may direct that the whole or a part of an amount that is payable to a person under this Part is to be paid to someone else on behalf of the person.

             (3)  If the Secretary gives a direction under subsection (2), the amount is to be paid in accordance with the direction.

1061EZA   How payment is to be made

             (1)  An amount that is to be paid to a person under section 1061EZ may only be paid in accordance with this section.

             (2)  Subject to this section, the amount is to be paid to the credit of a bank account nominated and maintained by the person.

             (3)  The account may be an account that is maintained by the person either alone or jointly or in common with another person.

             (4)  If the person has not nominated an account for the purposes of subsection (2), then, subject to subsections (5) and (6), the amount is not to be paid.

             (5)  If:

                     (a)  an amount has not been paid because of subsection (4); and

                     (b)  the person nominates an account for the purposes of subsection (2);

the amount is to be paid under subsection (2).

             (6)  The Secretary may permit amounts payable under this Part to be paid to people or to particular classes of people in a different way or in different ways from that provided for by subsection (2).

Division 6 Protection of special employment advance

1061EZB  Special employment advance to be absolutely inalienable

             (1)  Subject to this section and section 1359, a special employment advance is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

Note:          The effect of a garnishee order on a special employment advance is dealt with in the Part of this Chapter that deals with the relevant special employment advance qualifying entitlement. For example, the effect of a garnishee order on a special employment advance that has been paid to an account with a financial institution maintained by a person who is entitled to a disability support pension is dealt with in Part 2.3 (which deals with disability support pension).

             (2)  The Secretary may make deductions from an amount payable to a person under this Part if the recipient asks the Secretary:

                     (a)  to make the deductions; and

                     (b)  to pay the amounts to be deducted to the Commissioner of Taxation.

Note:          The Secretary must make deductions from a person’s social security payment if requested by the Commissioner of Taxation (see section 1359).

             (3)  The Secretary may make deductions from an amount payable to a person under this Part if the recipient consents under section 1234A to the Secretary making the deductions.

Note:          Section 1234A enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a social security payment.

Division 7 Repayment of special employment advance

1061EZC   Repayment of special employment advance

             (1)  If a person receives a special employment advance or an instalment of a special employment advance under this Part, the person must repay the special employment advance or instalment to the Commonwealth by one or more of the following methods:

                     (a)  deductions from the person’s special employment advance qualifying entitlement under Chapter 3 (General provisions relating to payability and rates);

                     (b)  a method provided for by Chapter 5 (Overpayments and debt recovery);

                     (c)  a method (other than a method described in paragraph (a) or (b)) that is acceptable to both the person and the Secretary.

             (2)  Subsection (1) does not affect the Secretary’s powers and duties under Part 5.4 (Non-recovery of debts) if the amount of the special employment advance or instalment that has not been repaid becomes a debt due to the Commonwealth.

44  Part 3.2 (Pension Rate Calculator A, Module A, point 1064-A1, method statement, step 12 )

Repeal the step, substitute:

Step 12. The rate of pension is the amount obtained by:

               (a)     subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     adding any amount payable by way of remote area allowance (see Module H).

45  Part 3.3 (Pension Rate Calculator B, Module A, point 1065-A1, method statement, step 5 )

Repeal the step, substitute:

Step 5.    Work out the non-income/assets tested rate by:

               (a)     subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     adding any amount payable by way of remote area allowance (see Module E).

46  Part 3.4 (Pension Rate Calculator C, Module A, point 1066-A1, method statement, step 12)

Repeal the step, substitute:

Step 12. The rate of pension is the amount obtained by:

               (a)     subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     adding any amount payable by way of remote area allowance (see Module H).

47  Part 3.4A (Pension Rate Calculator D, Module A, point 1066A-A1, method statement, step 13)

Repeal the step, substitute:

Step 13. The rate of pension is the amount obtained by:

               (a)     subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     adding any amount payable by way of remote area allowance (see Module I).

48  Part 3.4B (Pension Rate Calculator E, Module A, point 1066B-A1, method statement, step 6)

Repeal the step, substitute:

Step 6.    Work out the non-income/assets tested rate by:

               (a)     subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     adding any amount payable by way of remote area allowance (see Module F).

49  Part 3.5 (Youth Allowance Rate Calculator, Module A, point 1067G-A1, method statement, step 14)

Repeal the step, substitute:

Step 14. The rate of allowance is the amount obtained by:

               (a)     subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of allowance is being worked out, adding any amount payable by way of remote area allowance (see Module K).

50  Part 3.5A (Austudy Payment Rate Calculator, Module A, point 1067L-A1, method statement, step 6)

Repeal the step, substitute:

Step 6.    The rate of payment is the amount obtained by:

               (a)     subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     adding any amount payable by way of remote area allowance (see Module F).

51  Part 3.6 (Benefit Rate Calculator B, Module A, point 1068-A1, method statement, step 7)

Repeal the step, substitute:

Step 7.    The rate of benefit is the amount obtained by:

               (a)     subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of benefit is being worked out, adding any amount payable by way of remote area allowance (see Module J).

52  Part 3.6A (Pension PP (Single) Rate Calculator, Module A, point 1068A-A1, method statement, step 7)

Repeal the step, substitute:

Step 7.    The rate of pension PP (single) is the amount obtained by:

               (a)     subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     adding any amount payable by way of remote area allowance (see Module F).

53  After Part 3.16A

Insert:

Part 3.16B Special employment advance deductions

   

1206Q   Special employment advance deduction

             (1)  Subject to subsection (2) and section 1206T, a special employment advance deduction is to be made from the rate of a social security entitlement that is payable to a person if:

                     (a)  the person has received a special employment advance or an instalment of a special employment advance; and

                     (b)  the person has not yet repaid the whole of the special employment advance or instalment; and

                     (c)  the amount of the special employment advance or instalment that has not been repaid is not a debt under section 1224EA.

Note:          For social security entitlement see subsection 23(1).

             (2)  A special employment advance deduction may be made from a person’s rate on:

                     (a)  if the special employment advance is paid as a lump sum—the payday next following the day on which the lump sum is paid; or

                     (b)  if the special employment advance is paid by instalments—the payday next following the day on which the last instalment of the special employment advance is paid;

or on any later payday.

             (3)  In this section:

social security entitlement includes a PP (partnered).

1206R   Amount of special employment advance deduction—basic calculation

                   Subject to sections 1206S, 1206T, 1206U and 1206V, a special employment advance deduction is such amount as the Secretary determines.

1206S   Person may request larger special employment advance deduction

             (1)  Subject to subsection (2) and sections 1206T, 1206U and 1206V, a person’s special employment advance deduction is increased to a larger amount if the person asks the Secretary in writing for the special employment advance deduction to be the larger amount.

             (2)  Subsection (1) does not apply if the Secretary is satisfied that the person would suffer severe financial hardship if the special employment advance deduction were the larger amount.

1206T   Reduction of special employment advance deduction in cases of severe financial hardship

             (1)  Subject to subsection (2) and sections 1206U and 1206V, if:

                     (a)  a person applies in writing to the Secretary for a special employment advance deduction to be decreased, or to be stopped, because of severe financial hardship; and

                     (b)  the Secretary is satisfied that:

                              (i)  the person’s circumstances are exceptional and could not reasonably have been foreseen at the time of the person’s claim for the special employment advance; and

                             (ii)  the person would suffer severe financial hardship if the special employment advance deduction that would otherwise apply were to continue;

the Secretary may determine in writing that, for the period stated in the determination, the special employment advance deduction is to be a lesser amount (which may be a nil amount) stated in the determination.

             (2)  At any time while the determination is in force, the Secretary may:

                     (a)  vary the determination so as to require to be deducted from the person’s rate a special employment advance deduction larger than the deduction (if any) previously applying under the determination, but smaller than the deduction applying immediately before the determination; or

                     (b)  revoke the determination;

but only if the Secretary is satisfied that the person would not suffer severe financial hardship because of the variation or revocation.

             (3)  A variation or revocation of a determination must be in writing.

1206U   The final special employment advance deduction

             (1)  If a special employment advance deduction that would otherwise be deducted from a person’s rate exceeds the part of the special employment advance that the person has not yet repaid (by previous deductions under this Part or otherwise), the amount of that special employment advance deduction is to be equal to the part that the person has not yet repaid.

             (2)  This section has effect subject to section 1206V.

1206V   Provisional payment rate insufficient to cover special employment advance deduction

             (1)  If the provisional payment rate referred to in the relevant Rate Calculator is less than the special employment advance deduction would be apart from this subsection, the special employment advance deduction is taken to be equal to the provisional payment rate.

             (2)  If:

                     (a)  a person’s rate of pension is the notional income/assets tested rate referred to in the Method statement in point 1065-A1 in Pension Rate Calculator B; and

                     (b)  the provisional payment rate worked out for the person using Pension Rate Calculator A in accordance with Step 1 of the Method statement in point 1065-A1 in Pension Rate Calculator B is less than the special employment advance deduction would be apart from this subsection;

the special employment advance deduction is taken to be equal to the provisional payment rate referred to in paragraph (b).

             (3)  If:

                     (a)  a person’s rate of pension is the non-income/assets tested rate referred to in the Method statement in point 1065-A1 in Pension Rate Calculator B; and

                     (b)  the maximum payment rate for the person worked out in Step 4 of that Method statement is less than the special employment advance deduction would be apart from this subsection;

the special employment advance deduction is taken to be equal to the maximum payment rate referred to in paragraph (b).

             (4)  If:

                     (a)  a person’s rate of pension is the notional income/assets tested rate referred to in the Method statement in point 1066B-A1 in Pension Rate Calculator E; and

                     (b)  the provisional payment rate worked out for the person using Pension Rate Calculator D in accordance with Step 1 in the Method statement in point 1066B-A1 in Pension Rate Calculator E is less than the special employment advance deduction would be apart from this subsection;

the special employment advance deduction is taken to be equal to the provisional payment rate referred to in paragraph (b).

             (5)  If:

                     (a)  a person’s rate of pension is the non-income/assets tested rate referred to in the Method statement in point 1066B-A1 in Pension Rate Calculator E; and

                     (b)  the maximum payment rate for the person worked out in Step 5 of that Method statement is less than the special employment advance deduction would be apart from this subsection;

the special employment advance deduction is taken to be equal to the maximum payment rate referred to in paragraph (b).

1206W   Rounding of amounts

                   Amounts worked out under this Part must be rounded to the nearest cent (rounding 0.5 cent upwards).

54  After section 1224E

Insert:

1224EA   Debts arising from special employment advances of special employment advance qualifying entitlements

                   If:

                     (a)  a person has received a special employment advance of a special employment advance qualifying entitlement (the first entitlement ) or an instalment of such an advance; and

                     (b)  the first entitlement ceases to be payable to the person; and

                     (c)  when the first entitlement ceases to be payable, the person has not repaid the whole of the advance or instalment; and

                     (d)  the person does not receive another special employment advance qualifying entitlement or PP (partnered) immediately after the first entitlement ceases to be payable;

the amount that has not been repaid is a debt due to the Commonwealth.



 

Part 2 Amendments to abolish the employment entry payment and modify the education entry payment

Social Security Act 1991

55  Part 2.13

Repeal the Part.

56  Saving

Despite the repeal of Part 2.13 effected by item 55, that Part continues to apply to a person who:

                     (a)  was qualified for an employment entry payment under that Part immediately before the day on which that item commences; and

                     (b)  makes a claim for payment of the employment entry payment within the period of 28 days starting on that day.

57  Sections 665M to 665ZF (inclusive)

Repeal the sections.

58  Sections 665ZG to 665ZK (inclusive)

Repeal the sections.

59  Sections 665ZQ to 665ZX (inclusive)

Repeal the sections.

60  Saving

Despite the repeals effected by items 57, 58 and 59, the repealed sections continue to apply to a person who:

                     (a)  was qualified for an education entry payment under any of those sections immediately before the day on which those items commence; and

                     (b)  makes a claim for payment of the education entry payment within the period of 28 days starting on that day.



 

Schedule 4 Introduction of crisis payment

   

Social Security Act 1991

1  Subsection 14A(1)

Omit “and 2.14”, substitute “, 2.14 and 2.23A”.

2  Subsection 14A(2)

Omit “and 2.14”, substitute “, 2.14 and 2.23A”.

3  After section 19C

Insert:

19D   Severe financial hardship—crisis payment definition

             (1)  The definition in this section relates to one of the qualifications for crisis payment (see sections 1061JG and 1061JH).

             (2)  A person who is not a member of a couple is in severe financial hardship for the purposes of qualifying for a crisis payment if the value of the person’s liquid assets (within the meaning of subsection 14A(1)) is less than the fortnightly amount at the maximum payment rate of the social security pension or the social security benefit that is payable to the person.

             (3)  A person who is a member of a couple is in severe financial hardship for the purposes of qualifying for a crisis payment if the value of the person’s liquid assets (within the meaning of subsections 14A(1) and (2)) is less than twice the fortnightly amount at the maximum payment rate of the social security pension or the social security benefit that is payable to the person.

             (4)  For the purposes of working out whether a CDEP Scheme participant is in severe financial hardship as defined in this section, the maximum payment rate of social security pension or social security benefit that would have been payable to the participant if he or she had not been a CDEP Scheme participant is taken to be payable to the participant.

Note:          For CDEP Scheme Participant see section 1188B.

             (5)  In this section:

maximum payment rate , in relation to each of the following social security payments, means (unless otherwise stated below) the rate worked out at Step 4 of the Method statement in Module A of the relevant Rate Calculator:

                     (a)  for the following pensions if the recipient is not blind:

                              (i)  age pension;

                             (ii)  disability support pension (recipient has turned 21);

                            (iii)  carer pension;

                            (iv)  wife pension;

                            the Rate Calculator at the end of section 1064; or

                     (b)  for age pension and disability support pension (recipient has turned 21) if the recipient is blind—the Rate Calculator at the end of section 1065; or

                     (c)  for widow B pension—the Rate Calculator at the end of section 1066; or

                     (d)  for disability support pension if the recipient is under 21 and not blind—Step 5 of the Method statement in Module A of the Rate Calculator at the end of section 1066A; or

                     (e)  for disability support pension if the recipient is under 21 and is blind—Step 5 of the Method statement in Module A of the Rate Calculator at the end of section 1066B; or

                      (f)  for the following allowances:

                              (i)  newstart allowance;

                             (ii)  widow allowance;

                            (iii)  sickness allowance;

                            (iv)  partner allowance;

                             (v)  mature age allowance granted under Part 2.12B;

                            the Rate Calculator at the end of section 1068; or

                     (g)  for mature age allowance granted under Part 2.12A—the Rate Calculator at the end of section 1064; or

                     (h)  for a pension PP (single)—the Rate Calculator at the end of section 1068A; or

                      (i)  for benefit PP (partnered)—point 1068B-A4; or

                      (j)  for mature age partner allowance—the Rate Calculator at the end of section 1064; or

                     (k)  for special benefit—section 746; or

                      (l)  for youth allowance—the Rate Calculator at the end of section 1067G; or

                    (m)  for austudy payment—Step 3 of the Method statement in Module A of the Rate Calculator at the end of section 1067L.

4  Section 408FA (note)

Repeal the note.

5  Section 643 (note)

Repeal the note.

6  Section 660YFA (note)

Repeal the note.

7  Subsection 746(2)

Omit “and section 1161 (release from gaol or from psychiatric confinement)”.

8  Subsection 746(2) (note 1)

Repeal the note.

9  Subsection 746(2) (note 2)

Omit “Note 2”, substitute “Note”.

10  Subsection 771KE(2)

Omit “and section 1161 (release from gaol)”.

11  Subsection 771KE(2) (note 1)

Repeal the note.

12  Subsection 771KE(2) (note 2)

Omit “Note 2”, substitute “Note”.

13  After Part 2.23

Insert:

Part 2.23A Crisis payment

Division 1 Qualification for crisis payment

1061JG   Qualification—release from gaol or psychiatric confinement

                   A person is qualified for a crisis payment if, after the commencement of this section:

                     (a)  the person is released from gaol, or from psychiatric confinement that the person was undergoing because he or she had been charged with committing an offence, after spending at least 14 days in gaol or such confinement; and

                     (b)  the person claims the crisis payment within 7 days after being released; and

                     (c)  on the day on which the claim for the crisis payment is made (including the day on which it is taken to have been made under subsection 1061JN(3):

                              (i)  the person is qualified for a social security pension or social security benefit; and

                             (ii)  the person is in severe financial hardship (see section 19D).

1061JH   Qualification—extreme circumstances forcing departure from home

             (1)  A person is qualified for a crisis payment if, after the commencement of this section:

                     (a)  the person has left, or cannot return to, his or her home because of an extreme circumstance; and

                     (b)  the extreme circumstance makes it unreasonable to expect the person to remain in, or return to, the home; and

                     (c)  the person has established, or intends to establish, a new home; and

                     (d)  at the time the extreme circumstance occurred, the person was in Australia; and

                     (e)  the person makes a claim for a crisis payment within 7 days after the extreme circumstance occurred; and

                      (f)  on the day on which the claim is made:

                              (i)  the person is in severe financial hardship (see section 19D); and

                             (ii)  the person has made a claim (whether on the same day or on an earlier day) for a social security pension or benefit and the person is qualified for the pension or benefit; and

                     (g)  during the 12 months immediately preceding the day on which the claim is made, no more than 3 crisis payments have been payable to the person.

Note:          Examples of extreme circumstances that would qualify a person for crisis payment are the person’s house being burnt down, or the person being subjected to domestic or family violence.

             (2)  A person is not qualified for a crisis payment in respect of an extreme circumstance if the Secretary is satisfied that the extreme circumstance is brought about with a view to obtaining a crisis payment.

1061JJ   Crisis payment not payable in addition to disaster relief payment

                   A crisis payment is not payable to a person in respect of an extreme circumstance if the person is qualified for a disaster relief payment (whether under this Act or otherwise) in respect of the same extreme circumstance.

1061JK   Crisis payment not payable if assurance of support in force

                   A person is not qualified for a crisis payment if the Secretary is satisfied that at the time the person would otherwise have been qualified for crisis payment:

                     (a)  an assurance of support was in force in respect of the person (the assuree ); and

                     (b)  the person who gave the assurance of support was willing and able to provide an adequate level of support to the assuree; and

                     (c)  it was reasonable for the assuree to accept that support.

Note:          For assurance of support see subsection 23(1).

Division 2 Claim for crisis payment

1061JL   Need for a claim

             (1)  A person who wants to be granted a crisis payment must make a proper claim for that payment.

             (2)  For the purposes of subsection (1), if:

                     (a)  a claim for a crisis payment is made by or on behalf of a person; and

                     (b)  the claim is based on the qualifications set out in section 1061JH; and

                     (c)  at the time when the claim is made, the claim cannot be granted because the person is not qualified for the payment;

the claim is taken not to have been made.

1061JM   Form of claim

                   To be a proper claim, a claim must be in writing and must be in accordance with a form approved by the Secretary.

1061JN   Lodgment of claim and day on which claim taken to be lodged

             (1)  To be a proper claim, a claim must be lodged:

                     (a)  at an office of the Department; or

                     (b)  at a place approved for the purpose by the Secretary; or

                     (c)  with a person approved for the purpose by the Secretary.

             (2)  A place or person approved under subsection (1) must be a place or person in Australia.

             (3)  If:

                     (a)  a person who is in gaol or in psychiatric confinement lodges a claim for a crisis payment; and

                     (b)  the person is not, on the day on which the claim is lodged, qualified for the crisis payment; and

                     (c)  the person becomes qualified for the crisis payment within 21 days after the day on which the claim is lodged;

the claim is taken to have been made on the first day the person becomes qualified for the crisis payment.

             (4)  If:

                     (a)  a person contacts the Department in relation to his or her claiming a social security payment; and

                     (b)  the person is, on the day on which he or she contacts the Department, qualified for crisis payment and in Australia; and

                     (c)  the person lodges a claim for crisis payment within 14 days after he or she contacts the Department; and

                     (d)  the Department has a record of the person contacting the Department;

the person is taken to have made a claim for crisis payment on the day on which he or she contacted the Department.

             (5)  In this section:

contacts the Department includes contacts the Department by post or telephone or by the transmission of a message by the use of facsimile, computer equipment or any other electronic means.

1061JP   Claimant must be in Australia

                   A claim by a person is not a proper claim unless the person is in Australia on the day on which the claim is lodged.

1061JQ   Claim may be withdrawn

             (1)  A claimant for a crisis payment or a person on behalf of a claimant may withdraw a claim that has not been determined.

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

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

Division 3 Determination of claim

1061JR   Secretary to determine claim

                   The Secretary must, in accordance with this Act, determine the claim.

1061JS   Grant of claim

                   The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

                     (a)  the person is qualified for a crisis payment; and

                     (b)  the crisis payment is payable.

1061JT   Date of effect of determination

             (1)  Subject to subsections (2), (3) and (4), a determination under section 1061JR takes effect on the day on which the determination is made or on such later day or earlier day as is specified in the determination.

             (2)  If:

                     (a)  a decision (the previous decision ) is made rejecting a person’s claim for crisis payment; and

                     (b)  a notice is given to the person advising the person of the making of the previous decision; and

                     (c)  the person applies to the Secretary under section 1240, within 3 months after the notice is given, for review of the previous decision; and

                     (d)  a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

             (3)  If:

                     (a)  a decision (the previous decision ) is made rejecting a person’s claim for crisis payment; and

                     (b)  a notice is given to the person advising the person of the making of the previous decision; and

                     (c)  the person applies to the Secretary under section 1240 more than 3 months after the notice is given, for review of the previous decision; and

                     (d)  a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the person sought the review.

             (4)  If:

                     (a)  a decision ( the previous decision ) is made rejecting a person’s claim for crisis payment; and

                     (b)  no notice is given to the person advising the person of the making of the previous decision; and

                     (c)  the person applies to the Secretary under section 1240 for review of the previous decision; and

                     (d)  a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Division 4 Amount of crisis payment

1061JU   Amount of payment

             (1)  Subject to subsection (2), the amount of a crisis payment payable to a person is half the fortnightly amount at the maximum basic rate of the social security pension or social security benefit that is payable to the person.

             (2)  If a person is a CDEP Scheme participant, the amount of a crisis payment payable to the person is half the fortnightly amount at the maximum basic rate of the social security pension or social security benefit that the person is taken to be receiving under section 1188H.

Note:          For CDEP Scheme participant see section 1188B.

             (3)  If, under section 1188H, the person is taken to be receiving more than one social security pension or social security benefit, the person is taken, for the purposes of subsection (2), to be receiving the pension or benefit with the higher maximum basic rate.

             (4)  In this section:

maximum basic rate , in relation to each of the following social security payments, means (unless otherwise stated below) the rate worked out at Module B of the relevant Rate Calculator:

                     (a)  for the following pensions if the recipient is not blind:

                              (i)  age pension;

                             (ii)  disability support pension (recipient has turned 21);

                            (iii)  carer pension;

                            (iv)  wife pension;

                            the Rate Calculator at the end of section 1064; or

                     (b)  for age pension and disability support pension (recipient has turned 21) if the recipient is blind—the Rate Calculator at the end of section 1065; or

                     (c)  for widow B pension—the Rate Calculator at the end of section 1066; or

                     (d)  for disability support pension if the recipient is under 21 and not blind—the Rate Calculator at the end of section 1066A; or

                     (e)  for disability support pension if the recipient is under 21 and is blind—the Rate Calculator at the end of section 1066B; or

                      (f)  for the following allowances:

                              (i)  newstart allowance;

                             (ii)  widow allowance;

                            (iii)  sickness allowance;

                            (iv)  partner allowance;

                             (v)  mature age allowance granted under Part 2.12B;

                            the Rate Calculator at the end of section 1068; or

                     (g)  for mature age allowance granted under Part 2.12A—the Rate Calculator at the end of section 1064; or

                     (h)  for a pension PP (single)—the Rate Calculator at the end of section 1068A; or

                      (i)  for benefit PP (partnered)—Module C of the Rate Calculator at the end of section 1068B; or

                      (j)  for mature age partner allowance—the Rate Calculator at the end of section 1064; or

                     (k)  for special benefit—section 746; or

                      (l)  for youth allowance—the Rate Calculator at the end of section 1067G; or

                    (m)  for austudy payment—Step 3 of the Method statement in Module A of the Rate Calculator at the end of section 1067L.

Division 5 Payment of crisis payment

1061JV   Payment into bank account

             (1)  An amount that is to be paid to a person under Division 4 is to be paid in the manner set out in this section.

             (2)  Subject to this section, the amount is to be paid to the credit of a bank account nominated and maintained by the person.

             (3)  The account may be an account that is maintained by the person either alone or jointly or in common with another person.

             (4)  The Secretary may direct that the whole or part of the amount be paid to the person in a different way from that provided for by subsection (2).

             (5)  If the Secretary gives a direction under subsection (2), the amount is to be paid in accordance with the direction.

Division 6 Protection of crisis payment

1061JW   Crisis payment to be absolutely inalienable

             (1)  Subject to subsections (2) and (3) and section 1359, a crisis payment is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

             (2)  The Secretary may make a deduction from a crisis payment payable to a person if the person asks the Secretary;

                     (a)  to make the deduction; and

                     (b)  to pay the amount to be deducted to the Commissioner of Taxation.

Note:          The Secretary must make a deduction from a person’s crisis payment if requested by the Commissioner of Taxation (see section 1359).

             (3)  The Secretary may make a deduction from a person’s crisis payment if the person consents under section 1234A to the Secretary making that deduction.

Note:          Section 1234A enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a social security payment.

1061JX   Effect of garnishee or attachment order

                   If:

                     (a)  a person has an account with a financial institution; and

                     (b)  a court order in the nature of a garnishee order comes into force in respect of the account; and

                     (c)  a crisis payment payable to the person (whether on the person’s own behalf or not) has been paid to the credit of the account during the 4-week period immediately before the court order came into force;

the court order does not apply to the amount of the crisis payment in the account.

14  Section 1158

Repeal the section (but not the notes), substitute:

1158   Some social security payments not payable during period in gaol or in psychiatric confinement following criminal charge

                   An instalment of a social security pension, a social security benefit, a parenting payment or a pensioner education supplement is not payable to a person in respect of a day on which the person is:

                     (a)  in gaol; or

                     (b)  undergoing psychiatric confinement because the person has been charged with an offence.

15  Divisions 2, 3 and 4 of Part 3.13

Repeal the Divisions.



 

Schedule 5 Amendments relating to newly arrived residents ’ waiting periods

Part 1 Amendments

Social Security Act 1991

1  Subsection 7(6AA)

After “pension PP (single)”, insert “, carer payment”.

2  Section 201AA (first occurring)

Renumber as section 201AAA.

3  Subsection 201AA(1)

Repeal the subsection (but not the note), substitute:

             (1)  A person is subject to a newly arrived resident’s waiting period if the person:

                     (a)  enters Australia on or after 4 March 1997; and

                     (b)  has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

4  Subsection 201AA(2)

Repeal the subsection, substitute:

             (2)  Subsection (1) does not apply to a person who has a qualifying residence exemption for a carer payment.

5  Paragraphs 201AA(3)(b) and (4)(b)

Repeal the paragraphs, substitute;

                     (b)  either a carer or a special need relative.

6  Subsection 201AA(5)

Repeal the subsection, substitute:

             (5)  Subsection (1) does not apply to a person if:

                     (a)  the person is already subject to a newly arrived resident’s waiting period; or

                     (b)  the person has already served a newly arrived resident’s waiting period; or

                     (c)  at the commencement of this subsection, the person has already been an Australian resident for a period of, or periods totalling, 104 weeks.

7  Subsection 201AA(6)

Repeal the subsection, substitute:

             (6)  In this section:

carer has the same meaning as in the Migration Regulations.

special need relative has the same meaning as in the Migration Regulations as in force on 30 November 1998.

8  Paragraphs 201AB(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  starts on the day the person first became an Australian resident; and

                     (b)  ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

9  Subparagraph 408BA(2)(d)(ia)

After “1 April 1996”, insert “and before the commencement day”.

10  After subparagraph 408BA(2)(d)(ia)

Insert:

                            (ib)  if the woman entered Australia on or after the commencement day—the woman has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks before the day she lodged the claim for the allowance; or

11  Subsection 408BA(2) (note 3)

Omit “the purposes of this section (see subsection (4))”, substitute “some purposes (see subsections (4) and (4A))”.

12  At the end of subsection 408BA(4A)

Add “or (2)(d)(ib)”.

13  At the end of section 408BA

Add:

             (6)  In this section:

commencement day means the day on which Schedule 5 to the Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999 commences.

14  Paragraph 623A(1)(b)

Repeal the paragraph, substitute:

                     (b)  has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks;

15  Subsection 623A(1) (note)

Repeal the note.

16  At the end of section 623A

Add:

             (6)  Subsection (1) does not apply to a person if:

                     (a)  the person is a New Zealand citizen; and

                     (b)  the person was an Australian resident on the day this subsection commences; and

                     (c)  when the person claimed newstart allowance the person had been:

                              (i)  an Australian resident for the 12 months immediately preceding the claim; or

                             (ii)  continuously present in Australia for the 6 months immediately preceding the claim.

17  Subsection 623B(1)

Repeal the subsection, substitute:

             (1)  If a person is subject to a newly arrived resident’s waiting period, the period starts on the day the person first became an Australian resident.

18  Subsection 623B(3)

Repeal the subsection, substitute:

             (3)  If subsection (2) does not apply, the newly arrived resident’s waiting period ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

Note:          This rule does not apply to people who were already subject to, or had already served, a newly arrived resident’s waiting period before the commencement of this rule. Clause 121 of Schedule 1A to this Act continues the application of the previous rules to those people.

19  Paragraph 660YCFA(1)(b)

Repeal the paragraph, substitute:

                     (b)  has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks;

20  Subsection 660YCFA(1) (note)

Repeal the note.

21  At the end of section 660YCFA

Add:

             (5)  Subsection (1) does not apply to a person if:

                     (a)  the person is a New Zealand citizen; and

                     (b)  the person was an Australian resident on the day this subsection commences.

22  Subsection 660YCFB(1)

Repeal the subsection, substitute:

             (1)  If a person is subject to a newly arrived resident’s waiting period, the period starts on the day the person first became an Australian resident.

23  Subsection 660YCFB(3)

Repeal the subsection, substitute:

             (3)  If subsection (2) does not apply, the newly arrived resident’s waiting period ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

Note:          This rule does not apply to people who were already subject to, or had already served, a newly arrived resident’s waiting period before the commencement of this rule. Clause 121 of Schedule 1A to this Act continues the application of the previous rules to those people.

24  Paragraph 696B(1)(b)

Repeal the paragraph, substitute:

                     (b)  has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks;

25  Subsection 696B(1) (note)

Repeal the note.

26  At the end of section 696B

Add:

             (6)  Subsection (1) does not apply to a person if:

                     (a)  the person is a New Zealand citizen; and

                     (b)  the person was an Australian resident on the day this subsection commences.

27  Subsection 696C(1)

Repeal the subsection, substitute:

             (1)  If a person is subject to a newly arrived resident’s waiting period, the period starts on the day the person first became an Australian resident.

28  Subsection 696C(3)

Repeal the subsection, substitute:

             (3)  If subsection (2) does not apply, the newly arrived resident’s waiting period ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

Note:          This rule does not apply to people who were already subject to, or had already served, a newly arrived resident’s waiting period before the commencement of this rule. Clause 121 of Schedule 1A to this Act continues the application of the previous rules to those people.

29  Paragraph 771HNA(1)(b)

Repeal the paragraph, substitute:

                     (b)  has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks;

30  Subsection 771HNA(1) (note)

Repeal the note.

31  At the end of section 771HNA

Add:

             (5)  Subsection (1) does not apply to a person if:

                     (a)  the person is a New Zealand citizen; and

                     (b)  the person was an Australian resident on the day this subsection commences.

32  Subsection 771HNB(1)

Repeal the subsection, substitute:

             (1)  If a person is subject to a newly arrived resident’s waiting period, the period starts on the day the person first became an Australian resident.

33  Subsection 771HNB(3)

Repeal the subsection, substitute:

             (3)  If subsection (2) does not apply, the newly arrived resident’s waiting period ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

Note:          This rule does not apply to people who were already subject to, or had already served, a newly arrived resident’s waiting period before the commencement of this rule. Clause 121 of Schedule 1A to this Act continues the application of the previous rules to those people.

34  Section 771HNA (second occurring)

Renumber as section 771HNC.

35  Paragraph 1039AA(1)(b)

Repeal the paragraph, substitute:

                     (b)  has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks;

36  Subsection 1039AA(1) (note)

Repeal the note.

37  At the end of section 1039AA

Add:

             (5)  Subsection (1) does not apply to a person if:

                     (a)  the person is a New Zealand citizen; and

                     (b)  the person was an Australian resident on the day this subsection commences.

38  Section 1039AB

Repeal the section (including the note), substitute:

1039AB   Duration of newly arrived resident’s waiting period

                   If a person is subject to a newly arrived resident’s waiting period, the period:

                     (a)  starts on the day the person first became an Australian resident; and

                     (b)  ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

39  Subsection 1061ZA(2)

Omit “and (4)”, substitute “, (4) and (7)”.

40  Paragraph 1061ZA(2)(b)

Repeal the paragraph, substitute:

                     (b)  has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks;

41  Subsection 1061ZA(2) (note)

Repeal the note.

42  At the end of section 1061ZA

Add:

             (7)  Subsection (2) does not apply to person if:

                     (a)  the person is a New Zealand citizen; and

                     (b)  the person was an Australian resident on the day this subsection commences.

43  Section 1061ZAA

Repeal the section, substitute:

1061ZAA   Duration of newly arrived resident’s waiting period

                   If a person is subject to a newly arrived resident’s waiting period, the period:

                     (a)  starts on the day the person first became an Australian resident; and

                     (b)  ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

44  At the end of Schedule IA

Add:

121   Changes to newly arrived resident’s waiting period

                   If a person is subject to a newly arrived resident’s waiting period immediately before the commencement of Schedule 5 to the Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999 (the amending Act ), this Act continues to apply to the person in relation to the waiting period as if the amendments made by the amending Act had not been made.

45  At the end of Schedule 4

Add:

Part D

Notes dated 2 July 1998 between the Government of Australia and the Government of New Zealand agreeing that Article 15 of the Agreement is to be deleted.

 

No. Legal 98/290

 

The Department of Foreign Affairs and Trade presents its compliments to the New Zealand High Commission and has the honour to refer to the Agreement between the Government of Australia and the Government of New Zealand on Social Security, signed at Wellington on 19 July 1994, as amended by the First and Second Protocols to the Agreement between the Government of Australia and the Government of New Zealand on Social Security of 7 September 1995 (“the Agreement”) and to recent discussions between the Department of Social Security of Australia and the Department of Social Welfare of New Zealand concerning the need to amend the Agreement, so as to remove the provisions relating to benefits for the unemployed.

 

The Department of Foreign Affairs and Trade now has the honour to propose the following amendment to the Agreement:

 

                        Article 15 of the Agreement shall be deleted.

 

If the foregoing proposal is acceptable to the Government of New Zealand, the Department of Foreign Affairs and Trade has the honour to propose that this Note and the New Zealand High Commission’s reply to that effect, shall constitute an Agreement between the Government of Australia and the Government of New Zealand which shall enter into force on the first day of September 1998 provided that prior to that date the Government of Australia and the Government of New Zealand have exchanged further notes through the diplomatic channel notifying each other that all other matters as are necessary to give effect to this Agreement have been finalised or if that notification has not been completed prior to 1 September 1998, on the first day of the second month after that notification has been completed.

 

The Department of Foreign Affairs and Trade avails itself of this opportunity to renew to the New Zealand High Commission the assurances of its highest consideration.

 

CANBERRA

2 July 1998

A/NZ/2/4/2

 

            The New Zealand High Commission presents its compliments to the Department of Foreign Affairs and Trade and has the honour to refer to the Department’s Note No Legal 98/290 of 2 July which reads as follows:

 

            The Department of Foreign Affairs and Trade presents its compliments to the New Zealand High Commission and has the honour to refer to the Agreement between the Government of Australia and the Government of New Zealand on Social Security, signed at Wellington on 19 July 1994, as amended by the First and Second Protocols to the Agreement between the Government of Australia and the Government of New Zealand on Social Security of 7 September 1995 (“the Agreement”) and to recent discussions between the Department of Social Security of Australia and the Department of Social Welfare of New Zealand concerning the need to amend the Agreement, so as to remove the provisions relating to benefits for the unemployed.

 

            The Department of Foreign Affairs and Trade now has the honour to propose the             following amendment to the Agreement:

 

                                    Article 15 of the Agreement shall be deleted.

 

            If the foregoing proposal is acceptable to the Government of New Zealand, the Department of Foreign Affairs and Trade has the honour to propose that this Note and the New Zealand High Commission’s reply to that effect, shall constitute an Agreement between the Government of Australia and the Government of Zealand which shall enter into force on the first day of September 1998 provided that prior to that date the Government of Australia and the Government of New Zealand have exchanged further notes through the diplomatic channel notifying each other that all other matters as are necessary to give effect to this Agreement have been finalised or if that notification has not been completed prior to 1 September 1998, on the first day of the second month after that notification has been completed.

 

            The New Zealand High Commission has further the honour to confirm that the above is acceptable to the Government of New Zealand and that the Department’s Note and this reply shall constitute an Agreement Between the Government of New Zealand and the Government of Australia which shall enter into force on the first day of September 1998 provided that prior to that date the Government of New Zealand and the Government of Australia have exchanged further notes through the diplomatic channel notifying each other that all other matters as are necessary to give effect to this Agreement have been finalised or that if notification has not been completed prior to 1 September 1998, on the first day of the second month after that notification has been completed.

 

            The New Zealand High Commission takes this opportunity to renew to the Department of Foreign Affairs and Trade the assurances of its highest consideration.

 

New Zealand High Commission

CANBERRA

2 July 1998

Health Insurance Act 1973

46  Paragraph 5BA(2)(c)

After “Australian resident”, insert “and in Australia”.

47  At the end of subsection 5BA(2)

Add:

               ; or (d)  before the commencement of this paragraph, has been an Australian resident for a period of, or periods totalling, 104 weeks.

48  Subsection 5BA(3)

Repeal the subsection, substitute:

             (3)  If a person is subject to a newly arrived disadvantaged low income resident’s waiting period, the period:

                     (a)  starts on the day the person first became an Australian resident; and

                     (b)  ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.



 

Part 2 Saving

49  Saving

If a person is subject to a newly arrived disadvantaged low income resident’s waiting period immediately before the commencement of this Schedule, the Health Insurance Act 1973 continues to apply to the person in relation to the waiting period as if the amendments made to that Act by this Schedule had not been made.



 

Schedule 6 Amendments relating to periods of overseas residence and travel

Part 1 Amendments relating to portability of pensions

Social Security Act 1991

1  Paragraphs 1220(1)(d), (e) and (f)

Repeal the paragraphs, substitute:

                     (d)  within the period of 12 months after the person again becomes an Australian resident, the person is granted, or is transferred to:

                              (i)  an age pension; or

                             (ii)  a disability support pension; or

                            (iii)  a bereavement allowance; and

                     (e)  after the pension or allowance is granted, or the person is transferred to the pension or allowance, as the case may be, but before the end of that period of 12 months, the person leaves Australia; and

2  Paragraphs 1220(2)(d), (e) and (f)

Repeal the paragraphs, substitute:

                     (d)  within the period of 12 months after the person arrives in Australia, the person is granted, or is transferred to:

                              (i)  an age pension; or

                             (ii)  a disability support pension; or

                            (iii)  a bereavement allowance; and

                     (e)  after the pension or allowance is granted, or the person is transferred to the pension or allowance, as the case may be, but before the end of that period of 12 months, the person leaves Australia; and



 

Part 2 Amendments relating to rates of pensions payable under portability provisions

Social Security Act 1991

3  After subsection 1220B(1)

Insert:

       (1AA)  If a person is transferred from one payment to another while the person is absent from Australia, this section has effect as if the transfer had occurred immediately before the person left Australia.

4  After point 1221-B8

Insert in Module B:

     1221-B9  If:

                     (a)  a person who is already receiving a social security payment (the former payment ) becomes qualified for another social security payment (the new payment ); and

                     (b)  point 1221-B6, 1221-B7 or 1221-B8 applied to the person in relation to the former payment;

that point continues to apply to the person in relation to the new payment.



 

Part 3 Amendments relating to the grant of pensions overseas

Social Security Act 1991

5  Subparagraph 1212(3)(c)(iii)

Repeal the subparagraph.

6  Subparagraph 1212(3)(c)(vi)

Repeal the subparagraph.

7  After subsection 1212(3)

Insert:

       (3AA)  If:

                     (a)  a person outside Australia becomes qualified for an age pension; and

                     (b)  if the person had been in Australia, subsection 48(3) would have applied to the person in relation to the age pension;

subsection (3) of this section applies to the person in relation to the age pension as if paragraph (d) were omitted.

8  Subsection 1212(4) (note 1)

After “transferees”, insert “(other than those covered by subsection (3AA))”.



 

Part 4 Amendments relating to the application of international agreements where persons transfer to another pension while overseas

Social Security Act 1991

9  At the end of section 43

Add:

             (3)  Subsection (1) has effect subject to subsection 1208(6) (continued operation of scheduled international social security agreement in relation to certain recipients of age pension).

10  At the end of section 1208

Add:

             (6)  If:

                     (a)  immediately before he or she reaches pension age, a person is receiving a social security payment (other than age pension) solely because of the operation of a scheduled international social security agreement; and

                     (b)  on reaching pension age, the person becomes qualified for age pension because of the operation of paragraph 43(1)(c);

the age pension is taken to be payable to the person under the agreement referred to in paragraph (a).



 

Part 5 Amendments relating to the waiver of debts arising under international agreements

Social Security Act 1991

11  At the end of section 1235

Add:

               ; or (c)  a debt due to the Commonwealth under a scheduled international social security agreement.



 

Part 6 Amendments relating to the transfer to age pension of persons temporarily overseas

Social Security Act 1991

12  At the end of point 1210-A1

Add:

Note 4:       Point 1210-A3 imposes a limit on the international agreement portability rate.

13  After point 1210-A2

Insert in Module A:

Limit on international agreement portability rate

    1210-A3  If a person’s international agreement portability rate as calculated under point 1210-A1 would exceed the rate (the notional rate) that would be the person’s notional agreement pension rate under that point if the person had a residence factor of 1, the person’s international agreement portability rate is the rate that equals the notional rate.



 

Schedule 7 Amendments relating to youth allowance and newstart allowance: unsuitable work

   

Social Security Act 1991

1  Subsection 541D(1)

Omit “For the purposes of”, substitute “Subject to subsections (1A) and (1B), for the purposes of”.

2  After subsection 541D(1)

Insert:

          (1A)  If:

                     (a)  a person seeks work in an area (the new area ) that is outside the area (the old area ) in which the person’s home is situated; and

                     (b)  the person is offered permanent full-time work (whether or not work of the kind sought) in the new area;

the work offered is not unsuitable for the person because of paragraph (1)(g), (ga) or (ha) unless:

                     (c)  the person is under the age of 18; or

                     (d)  the person or the person’s partner is pregnant; or

                     (e)  the person or the person’s partner has a severe medical condition and the condition makes it unreasonable for the person to accept the offer; or

                      (f)  the acceptance of the offer would jeopardise the current employment, or the employment prospects, of the person’s partner; or

                     (g)  the person or the person’s partner has a child under the age of 16 years who is living with them or is living somewhere else in the old area; or

                     (h)  the person or the person’s partner has significant caring responsibilities in the old area; or

                      (i)  the educational, cultural or religious background of the person makes it unreasonable for the person to accept the offer; or

                      (j)  it is more appropriate for the person to participate in education or training than to accept the offer; or

                     (k)  the person would suffer severe financial hardship if the person were to accept the offer.

          (1B)  Without affecting what would otherwise constitute a person seeking work outside the area in which the person’s home is situated, if a person, when seeking employment through an employment service provider, represents to the provider that the person is willing to undertake work outside the area in which the person’s home is situated, the person is taken for the purposes of subsection (1A) to seek work outside the area at the time when the representation is made.

3  Subsection 601(2A)

Omit “subsection (2AA)”, substitute “subsections (2AA) and (2AB)”.

4  Paragraph 601(2A)(i)

Omit “and subsection (2AB) applies to the person”.

5  After subsection 601(2A)

Insert:

       (2AA)  If:

                     (a)  a person seeks work in an area (the new area ) that is outside the area (the old area ) in which the person’s home is situated; and

                     (b)  the person is offered permanent full-time work (whether or not work of the kind sought) in the new area;

the work offered is not unsuitable for the person because of paragraph (2A)(g) or (i) unless:

                     (c)  the person is under the age of 18 or over the age of 50; or

                     (d)  the person or the person’s partner is pregnant; or

                     (e)  the person or the person’s partner has a severe medical condition and the condition makes it unreasonable for the person to accept the offer; or

                      (f)  the acceptance of the offer would jeopardise the current employment, or the employment prospects, of the person’s partner; or

                     (g)  the person or the person’s partner has a child under the age of 16 years who is living with them or is living somewhere else in the old area; or

                     (h)  the person or the person’s partner has significant caring responsibilities in the old area; or

                      (i)  the educational, cultural or religious background of the person makes it unreasonable for the person to accept the offer; or

                      (j)  it is more appropriate for the person to participate in education or training than to accept the offer; or

                     (k)  the person would suffer severe financial hardship if the person were to accept the offer.

        (2AB)  Without affecting what would otherwise constitute a person seeking work outside the area in which the person’s home is situated, if a person, when seeking employment through an employment service provider, represents to the provider that the person is willing to undertake work outside the area in which the person’s home is situated, the person is taken for the purposes of subsection (2AA) to seek work outside the area at the time when the representation is made.



 

Schedule 8 Amendments relating to claim made for youth or newstart allowance after moving to area of lower employment prospects

   

Social Security Act 1991

1  Subsection 553B(1)

Repeal the subsection, substitute:

             (1)  Subject to subsection (1B), if the Secretary considers that a person has reduced his or her employment prospects by moving to a new place of residence without sufficient reason, the person is subject to an employment-related exclusion for a period of 26 weeks.

          (1A)  Subsection (1) extends to a person who makes a claim for youth allowance on or after the day on which the person moved to the new place of residence and before the end of the period referred to in that subsection.

          (1B)  If a person who is subject to an employment-related exclusion under subsection (1) (including that subsection as it applies by subsection (1A)) does either of the following during the period of the exclusion:

                     (a)  moves back to the place of residence (the original place of residence ) the movement from which made him or her subject to the exclusion;

                     (b)  moves to another place of residence a movement to which from the original place of residence would not have made him or her subject to the exclusion;

the period of the exclusion ends at the time of the movement back to the original place of residence or the movement to the other place of residence, as the case may be.

2  Section 597

Repeal the section.

3  Subsection 634(1)

Omit “subsection (2)”, substitute “subsections (1B) and (2)”.

4  At the end of subsection 634(1)

Add:

          (1A)  Subsection (1) extends to a person who makes a claim for newstart allowance on or after the day on which the person moved to the new place of residence and before the end of the period referred to in that subsection.

          (1B)  If a person to whom a newstart allowance is not payable under subsection (1) for a period of 26 weeks (including that subsection as it applies by subsection (1A)) does either of the following during that period:

                     (a)  moves back to the place of residence (the original place of residence ) the movement from which resulted in newstart allowance not being payable to him or her;

                     (b)  moves to another place of residence a movement to which from the original place of residence would not have resulted in newstart allowance not being payable to him or her;

the period of 26 weeks ends at the time of the movement back to the original place of residence or the movement to the other place of residence, as the case may be.

5  At the end of subsection 634(3)

Add:

Note:          For family member see subsection 23(1).

6  Subsection 634(4) (note)

Repeal the note.



 

Schedule 9 Amendments relating to the liquid assets test waiting period

   

Social Security Act 1991

1  After section 593

Insert:

594   Persons in full-time study not unemployed while studying

             (1)  For the purposes of this Subdivision, a person who is enrolled in a full-time course of education or of vocational training (other than a course referred to in paragraphs 613(2)(a) and (b)) is not unemployed during the period of the course or training.

             (2)  If a person has deferred a full-time course of education or of vocational training, subsection (1) does not apply for the period of the deferment.

             (3)  For the purposes of subsection (1), the period of the course or training , in respect of a full-time course of education or of vocational training, is the period that:

                     (a)  starts when the person starts the course; and

                     (b)  finishes when the person:

                              (i)  completes the course; or

                             (ii)  abandons the course; or

                            (iii)  gives notice to the provider of the course that the person wishes to withdraw from the course or withdraw from such number of subjects that the person’s course will no longer be a full-time course; and

                     (c)  includes the periods of vacation.

2  At the end of subsection 598(1)

Add:

Note 5:       A person who is a full-time student cannot be unemployed while studying (see section 594).

3  At the end of subsection 676(4A)

Add:

Note:          For the purposes of paragraph (b), a person who is a full-time student cannot be unemployed while studying (see section 676A).

4  After section 676

Insert:

676A   Persons in full-time study not unemployed while studying

             (1)  For the purposes of paragraph 676(4A)(b), a person who is enrolled in a full-time course of education or of vocational training (other than a course referred to in paragraphs 613(2)(a) and (b) is not unemployed during the period of the course or training.

             (2)  If a person has deferred a full-time course of education or of vocational training, subsection (1) does not apply for the period of the deferment.

             (3)  For the purposes of subsection (1), the period of the course or training , in respect of a full-time course of education or of vocational training, is the period that:

                     (a)  starts when the person starts the course; and

                     (b)  finishes when the person:

                              (i)  completes the course; or

                             (ii)  abandons the course; or

                            (iii)  gives notice to the provider of the course that the person wishes to withdraw from the course or withdraw from such number of subjects that the person’s course will no longer be a full-time course; and

                     (c)  includes the periods of vacation.



 

Schedule 10 Amendment relating to pensioner education supplement

   

Social Security Act 1991

1  Section 1061PZG

Repeal the section, substitute:

1061PZG   Rate of pensioner education supplement

             (1)  If a person:

                     (a)  is a sub-50% concessional study-load student in respect of a course; and

                     (b)  is not receiving any of the following:

                              (i)  a disability support pension under this Act;

                             (ii)  an invalidity service pension under the Veterans’ Entitlements Act;

                            (iii)  an invalidity income support supplement under the Veterans’ Entitlements Act;

the pensioner education supplement fortnightly rate for the person is $30.00.

             (2)  The pensioner education supplement fortnightly rate for a person to whom subsection (1) does not apply is $60.00.

             (3)  The rate of pensioner education supplement for a person is a daily rate worked out by dividing the person’s fortnightly rate by 14.

             (4)  For the purposes of this section, a person is a sub-50% concessional study-load student in respect of a course if the person is a 25% concessional study-load student in respect of the course for the purposes of Subdivision B of Division 1 of this Part who is undertaking, or who intends to undertake, less than one half of the normal amount of full-time study, determined in accordance with section 1061PF, in respect of that course.



 

Schedule 11 Minor technical amendment

   

Health Insurance Act 1973

1  Paragraph 5BA(4)(a)

Omit “or”, substitute “and”.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10/99)