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Clean Energy (Household Assistance Amendments) Bill 2011

Schedule 3 Clean energy payments under the Veterans’ Entitlements Act

Part 1 Clean energy advances

Veterans’ Entitlements Act 1986

1  Section 5 (index of definitions)

Insert:

clean energy advance

5Q(1)

clean energy bonus

5Q(1)

clean energy payment

5Q(1)

clean energy underlying payment

5Q(1)

2  Subsection 5Q(1)

Insert:

clean energy advance means an advance described in Subdivision A or C of Division 1 of Part IIIE.

3  Subsection 5Q(1)

Insert:

clean energy bonus under an Act or scheme means any of the following that is provided for by the Act or scheme:

                     (a)  a payment known as a clean energy advance;

                     (c)  an increase that is described using the phrase “clean energy” and affects the rate of another payment that is provided for by the Act or scheme.

4  Subsection 5Q(1)

Insert:

clean energy payment means:

                     (a)  clean energy advance; or

5  Subsection 5Q(1)

Insert:

clean energy underlying payment means:

                     (a)  a pension under Part II or IV at a rate determined under or by reference to Division 4 of Part II; or

                     (b)  a pension under Part II or IV at a rate determined under or by reference to subsection 30(1); or

                     (c)  service pension; or

                     (d)  seniors supplement.

6  After Part IIID

Insert:

Part IIIE Clean energy payments

Division 1 Clean energy advances

Subdivision A Eligibility for clean energy advances

61A   Persons receiving clean energy underlying payments

Eligibility for days before 1 July 2012

             (1)  The Commission may, on a day during the period starting on 14 May 2012 and ending on 30 June 2012, determine that a person is eligible for a clean energy advance for a clean energy underlying payment if, on that day:

                     (a)  the person receives the payment; and

                     (b)  the person’s rate of the payment is greater than nil; and

                     (c)  the person is in Australia.

Note:          For clean energy underlying payment see subsection 5Q(1).

Eligibility for days in period 1 July 2012-19 March 2013

             (2)  The Commission may determine that a person is eligible for a clean energy advance for a clean energy underlying payment if, on a day in the period starting on 1 July 2012 and ending on 19 March 2013:

                     (a)  the person receives the payment; and

                     (b)  the person’s rate of the payment is greater than nil; and

                     (c)  the person is in Australia.

Note:          For clean energy underlying payment see subsection 5Q(1).

             (3)  A determination under subsection (2) must specify the first day during the period set out in that subsection for which the person:

                     (a)  satisfies paragraphs (2)(a) and (b); and

                     (b)  is in Australia, disregarding any temporary absence from Australia for a continuous period not exceeding 13 weeks.

Disregard nil rate in certain circumstances

             (4)  For the purposes of subsections (1) and (2), a person is taken to receive a clean energy underlying payment at a rate greater than nil even if the person’s rate would be nil, or pension would not be payable, merely because:

                     (a)  the rate is reduced, or pension is not payable, under Division 4, 5 or 5A of Part II or section 74; or

                     (b)  an election by the person under subsection 60A(1) (Quarterly pension supplement) is in force.

Only one determination for a particular person and clean energy underlying payment

             (5)  The Commission must not make a determination under subsection (2) relating to a person and a clean energy underlying payment if the Commission has made a determination under subsection (1) or (2) relating to the same person and clean energy underlying payment.

61B   One advance for each clean energy underlying payment

                   A separate clean energy advance is payable to a person for each clean energy underlying payment for which the Commission has determined that the person is eligible for a clean energy advance.

Note:          This section is subject to section 65A (multiple entitlement exclusions).

Subdivision B Amount of a clean energy advance

61C   Amount of a clean energy advance

             (1)  On the day (the decision day ) that the Commission determines that a person is eligible for a clean energy advance for a clean energy underlying payment, the Commission must work out the amount of the advance.

Note:          The advance will be paid in a lump sum as soon as is reasonably practicable: see section 61G.

             (2)  The amount of the advance is the result of the following formula rounded up to the nearest multiple of $10:

where:

clean energy advance daily rate is worked out under section 61D.

number of advance days is worked out under section 61E.

61D   Clean energy advance daily rate

For pension at rate affected by Division 4 of Part II

             (1)  The clean energy advance daily rate for a person’s pension under Part II or IV at a rate determined under or by reference to subsection 22(3), 22(4), 23(4) or 24(4), but not under or by reference to section 27, is worked out by:

                     (a)  working out 1.7% of the rate for 1 July 2012 specified in whichever one of those subsections is relevant; and

                     (b)  adding 20 cents to the result of paragraph (a); and

                     (c)  rounding the result of paragraph (b) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

                     (d)  dividing the result of paragraph (c) by 14.

             (2)  The clean energy advance daily rate for a person’s pension under Part II or IV at a rate determined under or by reference to section 27, is worked out by:

                     (a)  working out 1.7% of the rate for 1 July 2012 specified in the subsection mentioned in column 2 of whichever item of the following table is relevant; and

                     (b)  adding 20 cents to the result of paragraph (a); and

                     (c)  rounding the result of paragraph (b) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

                     (d)  dividing the result of paragraph (c) by 14.

 

Relevant subsection for working out clean energy advance daily rate

 

Column 1

Rate of the person’s pension under section 27 on 1 July 2012 (assuming the person received the pension then):

Column 2

Subsection

1

Not more than the rate then specified in subsection 22(3)

22(3)

2

Both:

(a) more than the rate then specified in subsection 22(3); and

(b) not more than the rate then specified in subsection 22(4)

22(4)

3

Both:

(a) more than the rate then specified in subsection 22(4); and

(b) not more than the rate then specified in subsection 23(4)

23(4)

4

More than the rate then specified in subsection 23(4)

24(4)

             (3)  Ignore subsections 23(5) and (6), sections 25A and 26, Division 5A of Part II and section 74 for the purposes of working out the rate of the person’s pension under section 27 for use in the table in subsection (2) of this section.

For pension at rate affected by subsection 30(1)

             (4)  The clean energy advance daily rate for a person’s pension under Part II or IV at a rate determined under or by reference to subsection 30(1) is worked out by:

                     (a)  working out 1.7% of the rate for 1 July 2012 specified in that subsection; and

                     (b)  adding 20 cents to the result of paragraph (a); and

                     (c)  rounding the result of paragraph (b) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents); and

                     (d)  dividing the result of paragraph (c) by 14.

For service pension and seniors supplement

             (5)  The clean energy advance daily rate for a person’s service pension or seniors supplement is worked out by:

                     (a)  working out 1.7% of the total of:

                              (i)  double the maximum basic rate under point SCH6-B1 of the Rate Calculator, worked out for 1 July 2012 for a person who is partnered; and

                             (ii)  the combined couple rate of pension supplement for 1 July 2012; and

                     (b)  rounding the result of paragraph (a) up or down to the nearest multiple of $5.20 (rounding up if that result is not a multiple of $5.20 but is a multiple of $2.60); and

                     (c)  adding $5.20 to the result of paragraph (b); and

                     (d)  applying the applicable percentage in the following table to the result of paragraph (c); and

                     (e)  rounding the result of paragraph (d) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30); and

                      (f)  dividing the result of paragraph (e) by 364.

 

Percentage to be applied

Item

Person’s family situation

Use this %

1

Not a member of a couple

66.33%

2

Partnered

50%

3

Member of an illness separated couple

66.33%

4

Member of a respite care couple

66.33%

Note:          For member of a couple , partnered , illness separated couple and respite care couple see subsections 5E(1) and (5) and 5R(5) and (6) respectively.

             (6)  For the purposes of the table in subsection (5) (and of paragraph (5)(d)), a person’s family situation is to be determined as at whichever of the following days is relevant:

                     (a)  the day the Commission determines under subsection 61A(1) that the person is eligible for the clean energy advance for service pension or seniors supplement;

                     (b)  the day specified under subsection 61A(3) in a determination under subsection 61A(2) that the person is eligible for the clean energy advance for service pension or seniors supplement.

61E   Number of advance days

                   The person’s number of advance days is the number of days in the period:

                     (a)  starting on 1 July 2012 or, if the person is eligible for the clean energy advance because of a determination under subsection 61A(2), the day specified under subsection 61A(3) in the determination; and

                     (b)  ending on 19 March 2013.

Subdivision C Top-up payments of clean energy advance

61F   Top-up payments of clean energy advance

             (1)  The Commission may by legislative instrument determine that persons:

                     (a)  who have been paid the amount (the original payment ) of a specified clean energy advance for a clean energy underlying payment (the original underlying payment ) worked out under Subdivision B; and

                     (b)  whose circumstances change, within a period specified in the instrument, in a way that is specified in the instrument and is covered by subsection (2) or (3);

are eligible for a further payment, of the amount worked out in accordance with the instrument, of the clean energy advance.

             (2)  This subsection covers a person’s circumstances changing in a way such that:

                     (a)  immediately after the change the Commission could still have determined that the person would have been eligible for a clean energy advance for the original underlying payment, had the Commission not already made such a determination; and

                     (b)  had the amount of the original payment been worked out by reference to the person’s circumstances immediately after the change, the clean energy advance daily rate that would have been used for working out that amount would have been greater than the rate actually used for working out that amount.

             (3)  This subsection covers a change in a person’s circumstances that, apart from a multiple entitlement exclusion, would (if any necessary administrative decisions were made) entitle the person to a clean energy bonus, under an Act or a scheme, relating to a payment other than the original underlying payment.

             (4)  For the purposes of subsection (3), a multiple entitlement exclusion is an instrument that:

                     (a)  provides a person is not entitled to a clean energy bonus under an Act or a scheme because of the person’s entitlement to or receipt of the original payment or the original underlying payment; and

                     (b)  is made under:

                              (i)  section 65A; or

                             (ii)  section 424L of the MRCA; or

                            (iii)  section 918 of the Social Security Act;

                            or is an instrument establishing entitlements to a clean energy bonus under a scheme.

             (5)  An instrument under subsection (1) may provide for:

                     (a)  different periods for changes in circumstances depending on different changes in circumstances; and

                     (b)  different ways of working out further amounts of the original payment depending on different changes in circumstances.

Subdivision D Payment of clean energy advance

61G   Payment of clean energy advance

             (1)  An amount of clean energy advance for which a person is eligible is payable in a single lump sum on the day that the Commission considers to be the earliest day on which it is reasonably practicable for the amount to be paid.

             (2)  However, the clean energy advance is not payable if the Commission is aware that the person has died.

Subdivision E Debts

61H   Debts relating to clean energy advances

             (1)  This section applies if:

                     (a)  a person has been paid a clean energy advance for a clean energy underlying payment; and

                     (b)  after the advance was paid, one of the following events happens to a determination that directly or indirectly affected the payability or amount of the clean energy advance paid to the person:

                              (i)  the determination is changed, revoked or set aside;

                             (ii)  the determination is superseded by another determination; and

                     (c)  the event happened wholly or partly because the person knowingly made a false or misleading statement or knowingly provided false information; and

                     (d)  had the event happened on or before the day the advance was paid:

                              (i)  the advance would not have been paid; or

                             (ii)  the advance would have been reduced.

Note 1:       Examples of determinations directly affecting the payability or amount of the clean energy advance include:

(a)    a determination relating to the person’s eligibility for the clean energy underlying payment to which the advance related; and

(b)    the determination of the person’s eligibility for the clean energy advance.

Note 2:       An example of a determination indirectly affecting the amount of the advance is a determination relating to a change in circumstances that results in the person becoming eligible for a further payment of the advance under an instrument made under section 61F.

Creation and amount of debt

             (2)  The advance is a debt due to the Commonwealth by the person if subparagraph (1)(d)(i) applies.

             (3)  The amount by which the advance would have been reduced is a debt due to the Commonwealth by the person if subparagraph (1)(d)(ii) applies.

Relationship with other sections

             (4)  The other provisions of this Act under which debts arise do not apply in relation to clean energy advances to which this section applies.

             (5)  A debt that arises under this section is a recoverable amount within the meaning of subsection 205(8).

Division 5 Multiple entitlement exclusions

65A   Multiple entitlement exclusions

             (1)  The Commission may by legislative instrument determine that persons in circumstances specified in the instrument are not entitled to a clean energy bonus under this Act that is specified in the instrument.

Note:          For clean energy bonus see subsection 5Q(1).

             (2)  Those circumstances must relate to persons’ entitlement to or receipt of one or more of the following:

                     (a)  another clean energy bonus under this Act;

                     (b)  a clean energy bonus under the MRCA;

                     (c)  a clean energy bonus under the Social Security Act;

                     (d)  a clean energy bonus under a scheme (however described), whether or not the scheme is provided for by or under an Act.

             (3)  An instrument under subsection (1) has effect according to its terms, despite any other provision of this Act.



 

Part 2 Clean energy supplements and quarterly clean energy supplement

Veterans’ Entitlements Act 1986

7  Section 5 (index of definitions)

Insert:

CES 22(3) rate

5GB(1)

CES 22(4) rate

5GB(2)

CES 23(4) rate

5GB(3)

CES 24(4) rate

5GB(4)

CES 30(1) rate

5GB(5)

8  Section 5 (index of definitions)

Insert:

clean energy pension rate

5GB(6)

clean energy supplement

5Q(1)

9  Section 5 (index of definitions)

Insert:

quarterly clean energy supplement

5Q(1)

10  After section 5GA

Insert:

5GB   Clean energy supplement rate definitions

             (1)  The CES 22(3) rate is, subject to section 198, the rate worked out by:

                     (a)  working out 1.7% of the rate specified in subsection 22(3) on 20 March 2013 (taking account of any indexation on that day); and

                     (b)  rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents).

Note:          Section 198 provides for indexation.

             (2)  The CES 22(4) rate is, subject to section 198, the rate worked out by:

                     (a)  working out 1.7% of the rate specified in subsection 22(4) on 20 March 2013 (taking account of any indexation on that day); and

                     (b)  rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents).

Note:          Section 198 provides for indexation.

             (3)  The CES 23(4) rate is, subject to section 198, the rate worked out by:

                     (a)  working out 1.7% of the rate specified in subsection 23(4) on 20 March 2013 (taking account of any indexation on that day); and

                     (b)  rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents).

Note:          Section 198 provides for indexation.

             (4)  The CES 24(4) rate is, subject to section 198, the rate worked out by:

                     (a)  working out 1.7% of the rate specified in subsection 24(4) on 20 March 2013 (taking account of any indexation on that day); and

                     (b)  rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents).

Note:          Section 198 provides for indexation.

             (5)  The CES 30(1) rate is, subject to section 198, the rate worked out by:

                     (a)  working out 1.7% of the rate specified in subsection 30(1) on 20 March 2013 (taking account of any indexation on that day); and

                     (b)  rounding the result of paragraph (a) up or down to the nearest multiple of 10 cents (rounding up if that result is not a multiple of 10 cents but is a multiple of 5 cents).

Note:          Section 198 provides for indexation.

             (6)  The clean energy pension rate for a person is, subject to sections 59B, 59C, 59D and 59E, the rate worked out by:

                     (a)  working out 1.7% of the total of:

                              (i)  double the maximum basic rate under the Rate Calculator, worked out for 20 March 2013 (taking account of any indexation on that day) for a person who is partnered; and

                             (ii)  the combined couple rate of pension supplement for 20 March 2013 (taking account of any indexation on that day); and

                     (b)  rounding the result of paragraph (a) up or down to the nearest multiple of $5.20 (rounding up if that result is not a multiple of $5.20 but is a multiple of $2.60).

Note:          Sections 59B, 59C, 59D and 59E provide for indexation.

11  Subsection 5Q(1) (after paragraph (a) of the definition of clean energy bonus )

Insert:

                     (b)  a payment known as a clean energy supplement or a quarterly clean energy supplement;

12  Subsection 5Q(1) (after paragraph (a) of the definition of clean energy payment )

Insert:

                     (b)  any of the following:

                              (i)  clean energy supplement under section 62A (for pension under Part II or IV at a rate determined under or by reference to Division 4 of Part II);

                             (ii)  clean energy supplement under section 62B (for pension under Part II or IV at a rate determined under or by reference to subsection 30(1));

                            (iii)  quarterly clean energy supplement for service pension; or

13  Subsection 5Q(1)

Insert:

clean energy supplement means:

                     (a)  clean energy supplement payable under section 62A (for pension under Part II or IV at a rate determined under or by reference to Division 4 of Part II); or

                     (b)  clean energy supplement payable under section 62B (for pension under Part II or IV at a rate determined under or by reference to subsection 30(1)); or

                     (c)  clean energy supplement added to a person’s maximum basic rate of service pension under the Rate Calculator.

14  Subsection 5Q(1)

Insert:

quarterly clean energy supplement for service pension means the separate payment described in section 62E.

15  After subsection 58A(5)

Insert:

             (6)  If:

                     (a)  either or both of the following amounts are added to a person’s maximum basic rate for a particular day in working out the amount of an instalment of a service pension:

                              (i)  a pension supplement amount more than the person’s pension supplement basic amount;

                             (ii)  clean energy supplement; and

                     (b)  there is no election by the person under subsection 60A(1) in force on that day; and

                     (c)  apart from this subsection, the portion of the instalment corresponding to that day would be less than 1 / 364 of the total of the amounts added to the person’s maximum basic rate for the day as described in paragraph (a), but more than a nil amount;

the amount of that portion of the instalment is to be increased to 1 / 364 of that total.

16  Paragraph 58A(7)(a)

Omit “service pension or”.

17  Subsection 58A(7)

Omit “the person’s minimum daily rate” (wherever occurring), substitute “ 1 / 364 of the person’s minimum pension supplement amount”.

18  Subsection 58A(8)

Repeal the subsection.

19  Paragraph 59Q(7)(b) (formula)

Repeal the formula, substitute:

20  Paragraph 59Q(7)(b)

Insert:

                            point SCH6-BB3 amount means the clean energy supplement worked out under point SCH6-BB3 of Schedule 6 for a person who is not a member of a couple (whether or not the person for whom the lump sum preclusion period is being worked out is a member of a couple and whether or not that point applies to the person for whom the lump sum preclusion period is being worked out).

21  After Division 1 of Part IIIE

Insert:

Division 2 Clean energy supplements

Subdivision A Clean energy supplements for pensions under Parts II and IV

62A   Clean energy supplement for disability pension

             (1)  This section applies to a person for a day if:

                     (a)  the person receives for the day a pension under Part II or IV at a rate determined under or by reference to section 22, 23, 24 or 27; and

                     (b)  the person’s rate of the pension is greater than nil; and

                     (c)  the person is residing in Australia on the day; and

                     (d)  on the day the person either:

                              (i)  is in Australia; or

                             (ii)  is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Note:          Section 62C may affect whether a person meets the conditions in paragraphs (1)(a) and (b) of this section.

Clean energy supplement payable

             (2)  The Commonwealth is liable to pay the person for the day clean energy supplement for the person’s pension.

Note 1:       The supplement is a payment separate from the pension.

Note 2:       Section 65A may affect the person’s entitlement to the clean energy supplement.

Rate of clean energy supplement

             (3)  The fortnightly rate of clean energy supplement for the pension is the rate worked out using the table. For this purpose, ignore subsections 23(5) and (6), sections 25A and 26, Division 5A of Part II and section 74 in working out the rate of the person’s pension under section 27 if that section is relevant.

 

Fortnightly rate of clean energy supplement

 

Column 1

If the rate of the person’s pension:

Column 2

Rate of clean energy supplement

1

Is worked out under or by reference to subsection 22(3) but not section 27

CES 22(3) rate

2

Is worked out under or by reference to subsection 22(4) but not section 27

CES 22(4) rate

3

Is worked out under or by reference to subsection 23(4) but not section 27

CES 23(4) rate

4

Is worked out under or by reference to subsection 24(4) but not section 27

CES 24(4) rate

5

Is worked out under or by reference to section 27 and is not more than the rate specified in subsection 22(3)

CES 22(3) rate

6

Is worked out under or by reference to section 27 and is:

(a) more than the rate specified in subsection 22(3); and

(b) not more than the rate specified in subsection 22(4)

CES 22(4) rate

7

Is worked out under or by reference to section 27 and is:

(a) more than the rate specified in subsection 22(4); and

(b) not more than the rate specified in subsection 23(4)

CES 23(4) rate

8

Is worked out under or by reference to section 27 and is more than the rate specified in subsection 23(4)

CES 24(4) rate

Note:          For CES 22(3) rate , CES 22(4) rate , CES 23(4) rate and CES 24(4) rate see section 5GB.

62B   Clean energy supplement for war widow/war widower pension

             (1)  This section applies to a person for a day if:

                     (a)  the person receives for the day a pension under Part II or IV at a rate determined under or by reference to subsection 30(1); and

                     (b)  the person’s rate of the pension is greater than nil; and

                     (c)  the person is residing in Australia on the day; and

                     (d)  on the day the person either:

                              (i)  is in Australia; or

                             (ii)  is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Note:          Section 62C may affect whether a person meets the conditions in paragraphs (1)(a) and (b) of this section.

Clean energy supplement payable

             (2)  The Commonwealth is liable to pay the person for the day clean energy supplement for the person’s pension.

Note 1:       The supplement is a payment separate from the pension.

Note 2:       Section 65A may affect the person’s entitlement to the clean energy supplement.

Rate of clean energy supplement

             (3)  The fortnightly rate of clean energy supplement for the pension is the CES 30(1) rate.

62C   Disregard nil rate in certain circumstances

                   For the purposes of sections 62A and 62B, a person is taken to receive a pension under Part II or IV at a rate greater than nil even if the person’s rate would be nil, or pension would not be payable, merely because the rate is reduced, or pension is not payable, under Division 4, 5 or 5A of Part II or section 74.

62D   Electing for quarterly payment of clean energy supplement for pension under Part II or IV

Election

             (1)  A person may, in a manner or way approved by the Commission, make an election to be paid quarterly instalments of:

                     (a)  the person’s clean energy supplement under section 62A; or

                     (b)  the person’s clean energy supplement under section 62B.

Note 1:       If the person is receiving both kinds of pension under Part II or IV, he or she may make an election relating to one kind but not the other or make separate elections for each kind.

Note 2:       If a person does not make an election to be paid quarterly instalments of the clean energy supplement for one of those kinds of pensions, the supplement for that kind of pension will be paid in instalments under section 121.

             (2)  The election:

                     (a)  comes into force as soon as practicable after it is made; and

                     (b)  ceases to be in force if the pension ceases to be payable to the person; and

                     (c)  may be revoked by the person, in a manner or way approved by the Commission, with effect as soon as practicable after the revocation is made.

Quarterly payment

             (3)  If the election is in force on a day in the 3 months starting on 20 March, 20 June, 20 September or 20 December, an instalment of the clean energy supplement is to be paid to the person on, or as soon as reasonably practicable after, the day after the end of that period.

             (4)  The amount of the instalment is the total amount of the clean energy supplement payable to the person for the days in that period on which the election was in force. For this purpose, the rate of the clean energy supplement payable for a day is 1 / 14 of the fortnightly rate of the supplement that applied on that day.

Subdivision B Quarterly clean energy supplement for service pension

62E   Quarterly clean energy supplement for service pension

             (1)  Quarterly clean energy supplement for service pension that a person is receiving is payable, as a separate payment, to the person for each day for which an election by the person is in force under subsection 60A(1).

Note 1:       There is no provision for quarterly clear energy supplement for seniors supplement, because seniors supplement is always paid quarterly (see section 118PC).

Note 2:       Section 65A may affect the person’s entitlement to quarterly clean energy supplement.

             (2)  If the election is in force on a day in the 3 months starting on 20 March, 20 June, 20 September or 20 December, an instalment of quarterly clean energy supplement is to be paid to the person on, or as soon as reasonably practicable after, the day after the end of that period.

             (3)  The amount of the instalment is the total amount of the quarterly clean energy supplement payable to the person for the days in that period on which the election was in force.

             (4)  For the purposes of subsection (3), the rate of quarterly clean energy supplement payable for a day is 1 / 364 of what would be the person’s clean energy supplement under the Rate Calculator for the day apart from this section.

Reductions

             (5)  This section is subject to subclause 4(5) of Schedule 6.

             (6)  If:

                     (a)  an election by the person under subsection 60A(1) is in force on a particular day; and

                     (b)  apart from this subsection, the portion of the instalment of the person’s quarterly clean energy supplement that corresponds to that day would be reduced under subclause 4(5) of Schedule 6, but not reduced to a nil amount;

the amount of that portion of the instalment is not to be reduced under subclause 4(5) of Schedule 6.

22  Section 64A

After “clean energy payment”, insert “, except quarterly clean energy supplement,”.

23  Subsections 64C(3) and 64D(1) and (2)

After “clean energy payment”, insert “(except quarterly clean energy supplement)”.

24  Section 118PB

Repeal the section, substitute:

118PB   Rate of seniors supplement

             (1)  The person’s daily rate of seniors supplement, for a particular day, is 1 / 364 of the total of:

                     (a)  the amount worked out by:

                              (i)  applying the applicable percentage in the following table to the combined couple rate of minimum pension supplement; and

                             (ii)  rounding the result of subparagraph (i) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30); and

                     (b)  if subsection (2) applies to the person on the day—the amount worked out by:

                              (i)  applying the applicable percentage in the following table to the clean energy pension rate; and

                             (ii)  rounding the result of subparagraph (i) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30).

 

Percentage to be applied

Item

Person’s family situation

Use this %

1

Not a member of a couple

66.33%

2

Partnered

50%

3

Member of an illness separated couple

66.33%

4

Member of a respite care couple

66.33%

Note 1:       For combined couple rate of minimum pension supplement see subsection 5GA(2).

Note 2:       For clean energy pension rate see subsection 5GB(6).

Note 3:       For member of a couple , partnered , illness separated couple and respite care couple see subsections 5E(1) and (5) and 5R(5) and (6) respectively.

Note 4:       Section 65A may affect the person’s entitlement to the increase in rate of seniors supplement as a result of paragraph (1)(b).

When clean energy pension rate affects seniors supplement rate

             (2)  This subsection applies to a person on a day if on that day the person is residing in Australia and either:

                     (a)  is in Australia; or

                     (b)  is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks; and

25  Subsection 118PC(3)

Repeal the subsection, substitute:

             (3)  The amount of the instalment is worked out by:

                     (a)  working out the person’s amount of seniors supplement for each day during the test period on which the person was qualified for seniors supplement (using the daily rate of the supplement for that day); and

                     (b)  adding up the amounts resulting from paragraph (a).

26  After subsection 121(6A)

Insert:

Special rules for clean energy supplement payable under section 62A or 62B

          (6B)  For clean energy supplement payable under section 62A or 62B:

                     (a)  this section has effect subject to section 62D (which is about quarterly payment of clean energy supplement); and

                     (b)  subsection (2) of this section has effect as if clean energy supplement covered by an election in force under section 62D by a person on a day were not payable to the person for the day.

27  Subsection 121(7) (definition of pension )

After “includes”, insert “clean energy supplement payable under section 62A or 62B,”.

28  After subparagraph 30(4)(a)(i) of Schedule 5

Insert:

                            (ia)  the person’s clean energy supplement (if any) worked out using Module BB of the Rate Calculator; and

29  At the end of subclause 30(4) of Schedule 5

Add:

Note 7:       Section 65A may affect the inclusion of the clean energy supplement described in subparagraph (4)(a)(ia).

30  At the end of clause 34 of Schedule 5

Add:

Clean energy supplement

             (5)  If subclause 31(1) or (2) is relevant to the person, this Act applies in relation to the person’s service pension as if the person’s clean energy supplement (if any) resulting from Module BB of the Rate Calculator were used to work out the rate of the person’s service pension.

Note 1:       This clean energy supplement is included in the total worked out under paragraph 30(4)(a) (see subparagraph 30(4)(a)(ia)).

Note 2:       Subclause (5) causes section 62E to apply. If quarterly clean energy supplement is payable, then no clean energy supplement will be available to be included in the total worked out under paragraph 30(4)(a) (see point SCH6-BB2 of the Rate Calculator).

Note 3:       Other effects of subclause (5) include:

(a)    the possibility of the minimum amount of fortnightly instalments of the pension being affected under section 58A; and

(b)    clause 4 of Schedule 6 affecting the operation of reductions of the maximum payment rate because of the ordinary/adjusted income test and assets test.

31  Subclause 1(1) of Schedule 6 (note 1)

After “pension supplement”, insert “, clean energy supplement”.

32  Subclause 4(1) of Schedule 6 (after table item 4)

Insert:

4A

the amount of any increase under Module BB

33  Subclause 4(1) of Schedule 6 (note)

Repeal the note, substitute:

Note 1:       Table item 4A will not apply if an election by the person under subsection 60A(1) is in force, as there will not be any increase under Module BB (see point SCH6-BB2 of the Rate Calculator).

Note 2:       Table item 5 will not apply if an election by the person under subsection 60A(1) is in force, as the rate would have already been reduced to nil.

34  At the end of clause 4 of Schedule 6

Add:

Quarterly clean energy supplement for service pension

             (5)  If:

                     (a)  the rate (the main rate ) of a person’s service pension is to be reduced as described in subclause (1) (applying of its own force or as affected by subclause (2)); and

                     (b)  an election by the person under subsection 60A(1) is in force;

the person’s quarterly clean energy supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person’s clean energy supplement would be reduced under subclause (1) were the election not in force.

Note:          The reduction will be disregarded unless the person’s quarterly clean energy supplement is reduced to nil (see subsection 62E(6)).

35  Subpoint SCH6-A1(2) of Schedule 6 (method statement, after step 1A)

Insert:

Step 1B. Work out the amount of clean energy supplement (if any) using Module BB below.

36  Subpoint SCH6-A1(2) of Schedule 6 (method statement, step 4)

After “1A”, insert “, 1B”.

37  Subpoint SCH6-A1(2) of Schedule 6 (method statement, at the end of step 4)

Add:

                   Note:             Section 65A may affect whether the amount obtained in step 1B is added.

38  Subpoint SCH6-A1(3) of Schedule 6 (method statement, after step 2A)

Insert:

Step 2B. Work out the amount of clean energy supplement (if any) using Module BB below.

39  Subpoint SCH6-A1(3) of Schedule 6 (method statement, step 4)

Omit “and 2A”, substitute “, 2A and 2B”.

40  Subpoint SCH6-A1(3) of Schedule 6 (method statement, at the end of step 4)

Add:

                   Note:             Section 65A may affect whether the amount obtained in step 2B is added.

41  Subpoint SCH6-A1(4) of Schedule 6 (method statement, step 1)

After “Method statement 1”, insert “, except step 1B of that method statement,”.

42  Schedule 6 (after Module BA)

Insert:

Module BB Clean energy supplement

When clean energy supplement is to be added

SCH6-BB1  A clean energy supplement is to be added to the person’s maximum basic rate (of service pension) if the person is residing in Australia and:

                     (a)  is in Australia; or

                     (b)  is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Note:          Section 65A may affect the addition of the clean energy supplement.

SCH6-BB2  However, this Module does not apply if quarterly clean energy supplement for service pension is payable to the person.

Amount of clean energy supplement

SCH6-BB3  The person’s clean energy supplement is worked out by:

                     (a)  applying the applicable percentage in the following table to the clean energy pension rate; and

                     (b)  rounding the result of paragraph (a) up or down to the nearest multiple of $2.60 (rounding up if that result is not a multiple of $2.60 but is a multiple of $1.30).

 

Percentage to be applied

Item

Person’s family situation

Use this %

1

Not a member of a couple

66.33%

2

Partnered

50%

3

Member of an illness separated couple

66.33%

4

Member of a respite care couple

66.33%

Note 1:       For clean energy pension rate see subsection 5GB(6).

Note 2:       For member of a couple , partnered , illness separated couple and respite care couple see subsections 5E(1) and (5) and 5R(5) and (6) respectively.



 

Part 3 Indexation

Veterans’ Entitlements Act 1986

43  Section 59A (after table item 2B)

Insert:

 

Clean energy pension rate

 

 

2C.

clean energy pension rate

clean energy pension rate

subsection 5GB(6)

44  Section 59A (note)

After “Note”, insert “1”.

45  At the end of section 59A

Add:

Note 2:       Indexing clean energy pension rate will also result in the indexation of seniors supplement (see section 118PB).

46  Subsection 59B(1) (after table item 1C)

Insert:

 

Clean energy pension rate

 

 

 

 

2.

clean energy pension rate

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June or December quarter before reference quarter (but not earlier than June quarter 2011)

$5.20

47  After subsection 59C(2AB)

Insert:

       (2AC)  The first indexation of the rate under item 2 of the CPI Indexation Table in subsection 59B(1) is to take place on 20 September 2013.

48  Subsection 59D(1)

After “(3)”, insert “and section 198MA”.

49  Subsection 59EAB(1)

After “(6)”, insert “and section 198MB”.

50  Section 198 (heading)

Repeal the heading, substitute:

198   Variation of rates of certain pensions and clean energy supplements

51  Subsection 198(1)

Insert:

brought-forward CPI indexation amount for a relevant period means 0.007 less any reduction made under paragraph (5)(c) in relation to an earlier relevant period.

52  At the end of subsection 198(5)

Add:

               ; or (c)  if the relevant period starts on or after 20 March 2013 and the brought-forward CPI indexation amount for the period is more than 0—is the number worked out under paragraph (a) or (b) of this subsection reduced by that amount, but not below 1.

53  After subsection 198(8A)

Insert:

Indexation of rates relating to clean energy supplements

             (9)  This Act has effect as if, on each adjustment day on or after 20 September 2013, there were substituted, for each of the following rates:

                     (a)  CES 22(3) rate;

                     (b)  CES 22(4) rate;

                     (c)  CES 23(4) rate;

                     (d)  CES 24(4) rate;

                     (e)  CES 30(1) rate;

the rate worked out by multiplying the appropriate rate immediately before that day by the factor (the CES indexation factor ) worked out under subsection (9A) and rounding the product to the nearest $0.10 a fortnight (rounding up if the product is not a multiple of $0.10 but is a multiple of $0.05).

          (9A)  The CES indexation factor is:

                     (a)  the result of the following formula, rounded to 3 decimal places (rounding up if the number in the fourth decimal place is greater than 4); or

                     (b)  1 if the result of paragraph (a) is less than 1.

where:

base quarter means the June quarter or December quarter that:

                     (a)  occurs before the most recent reference quarter before the adjustment day but not before the June quarter of 2011; and

                     (b)  has the highest index number of all the June quarters and December quarters covered by paragraph (a).

reference quarter means June quarter or December quarter.

54  At the end of section 198

Add:

           (11)  If this Act has effect as if another rate were substituted on an adjustment day for a rate mentioned in paragraph (9)(a), (b), (c), (d) or (e), the substitution affects each instalment of clean energy supplement due on or after that day, except an instalment that:

                     (a)  is payable because of the grant of a pension after that day with effect before that day; and

                     (b)  is for a period starting before that day.

55  Subsection 198D(1)

Insert:

brought-forward CPI indexation amount for a year commencing on or after 20 September 2013 means 0.007 less any reduction made under paragraph (5)(d) for an earlier year.

56  At the end of subsection 198D(5)

Add:

               ; or (d)  if:

                              (i)  the year commences on or after 20 September 2013; and

                             (ii)  the factor is for multiplying a rate specified in item 7, 8, 9, 10, 11, 12, 13, 14 or 15 in the table in subsection 27(1); and

                            (iii)  the brought-forward CPI indexation amount for the year is more than 0;

                            the number worked out under paragraph (b) or (c) of this subsection reduced by that amount, but not below 1.

57  After section 198M

Insert:

198MA   Adjustment of indexation factor under section 59D for limited time on and after 20 March 2013 for certain purposes

Application

             (1)  This section applies for purposes connected with the following payments on or after 20 March 2013:

                     (a)  a service pension;

                     (b)  seniors supplement;

                     (c)  a pension under Part II or IV at a rate determined under or by reference to Division 4 of Part II or subsection 30(1);

                     (d)  Special Rate Disability Pension under the MRCA;

                     (e)  compensation under Division 2 (Compensation for member’s death for wholly dependent partners) of Part 2 of Chapter 5 of the MRCA.

Note 1:       Section 198 of the MRCA sets Special Rate Disability Pension by reference to the rate of pension under section 24 of this Act (so indexation of amounts affecting that rate also affects that pension).

Note 2:       Division 2 of Part 2 of Chapter 5 of the MRCA sets compensation under that Division by reference to the rate of pension under subsection 30(1) of this Act (so indexation of amounts affecting that rate also affects the compensation).

Adjustment of indexation factor

             (2)  An indexation factor that:

                     (a)  is worked out under section 59D on a day that is on or after 20 March 2013; and

                     (b)  is directly or indirectly relevant to the indexation of an amount provided for by:

                              (i)  subsection 5GA(1) (which provides for the PS rate mentioned in table item 2 of section 59A); or

                             (ii)  subsection 5GA(2) (which provides for the PS minimum rate mentioned in table item 2A of section 59A); or

                            (iii)  subsection 5GA(4) (which provides for the PS basic rate mentioned in table item 2B of section 59A); or

                            (iv)  subsection 22(3) or (4), 23(4) or 24(4); or

                             (v)  paragraph 30(1)(a) or (b); or

                            (vi)  table item 2 of point SCH6-B1 of the Rate Calculator (which provides for the pension MBR mentioned in table item 1 of section 59A);

is, for the purposes of the indexation of such an amount on that day, to be reduced by the brought-forward CPI indexation amount, but not below 1.

Note 1:       An indexation factor worked out under section 59D is indirectly relevant to the indexation of an amount provided for by subsection 22(3) or (4), 23(4) or 24(4) or paragraph 30(1)(b). This is because:

(a)    section 198 provides for indexation of such an amount by reference to the pension MBR factor worked out under section 59LA; and

(b)    the pension MBR factor depends on the increase in the single pension rate MBR amount, which in turn depends (under section 59G) on indexation of the pension MBR amount under section 59C, which involves the indexation factor worked out under section 59D.

Note 2:       An indexation factor worked out under section 59D is indirectly relevant to the indexation of an amount provided for by paragraph 30(1)(a). This is because that amount is affected by indexation under section 59G, which in turn depends on indexation under section 59C.

Note 3:       Once the brought-forward CPI indexation amount becomes 0, there will be no further reduction of the indexation factor.

Example:    Assume that the indexation factor worked out under section 59D on 20 March 2013 is 1.005. The brought-forward CPI indexation amount in relation to 20 March 2013 is 0.007 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.

                   Further assume that on 20 September 2013 the indexation factor is 1.010. The brought-forward CPI indexation amount in relation to 20 September 2013 is 0.002. That indexation factor is reduced to 1.008 on 20 September 2013.

                   The brought-forward CPI indexation amount in relation to later indexation days is now 0 so there is no further reduction of the indexation factor.

Definition of brought-forward CPI indexation amount

             (3)  In this section:

brought-forward CPI indexation amount for a day means:

                     (a)  0.007 less any reduction made under subsection (2) for an earlier day; or

                     (b)  0 if the brought-forward PBLCI indexation amount for the day under section 198MB is 0.

198MB   Adjustment of living cost indexation factor for limited time on and after 20 March 2013 for certain purposes

Application

             (1)  This section applies for purposes connected with the following payments on or after 20 March 2013:

                     (a)  a service pension;

                     (b)  a pension under Part II or IV at a rate determined under or by reference to section 22, 23 or 24 or subsection 30(1);

                     (c)  Special Rate Disability Pension under the MRCA;

                     (d)  compensation under Division 2 (Compensation for member’s death for wholly dependent partners) of Part 2 of Chapter 5 of the MRCA.

Note 1:       Section 198 of the MRCA sets Special Rate Disability Pension by reference to the rate of pension under section 24 of this Act (so indexation of amounts affecting that rate also affects that pension).

Note 2:       Division 2 of Part 2 of Chapter 5 of the MRCA sets compensation under that Division by reference to the rate of pension under subsection 30(1) of this Act (so indexation of amounts affecting that rate also affects the compensation).

Adjustment of living cost indexation factor

             (2)  A living cost indexation factor that:

                     (a)  is worked out under section 59EAB on a day that is on or after 20 March 2013; and

                     (b)  is directly or indirectly relevant to the indexation of an amount provided for by:

                              (i)  subsection 22(3) or (4), 23(4) or 24(4); or

                             (ii)  paragraph 30(1)(a) or (b); or

                            (iii)  table item 2 of point SCH6-B1 of the Rate Calculator (which provides for the pension MBR mentioned in table item 1 of section 59A);

is, for the purposes of the indexation of such an amount on that day, to be reduced by the brought-forward PBLCI indexation amount, but not below 1.

Note 1:       A living cost indexation factor worked out under section 59EAB is indirectly relevant to the indexation of an amount provided for by subsection 22(3) or (4), 23(4) or 24(4) or paragraph 30(1)(b). This is because:

(a)    section 198 provides for indexation of such an amount by reference to the pension MBR factor worked out under section 59LA; and

(b)    the pension MBR factor depends on the increase in the single pension rate MBR amount, which in turn depends (under section 59G) on indexation of the pension MBR amount under section 59C, which may involve the living cost indexation factor worked out under section 59EAB.

Note 2:       A living cost indexation factor worked out under section 59EAB is indirectly relevant to the indexation of an amount provided for by paragraph 30(1)(a). This is because that amount is affected by indexation under section 59G, which in turn depends on indexation under section 59C.

Note 3:       Once the brought-forward PBLCI indexation amount becomes 0, there will be no further reduction of the living cost indexation factor.

Example:    Assume that the living cost indexation factor worked out under section 59EAB on 20 March 2013 is 1.005. The brought-forward PBLCI indexation amount in relation to 20 March 2013 is 0.007 (as there has been no previous reduction). That living cost indexation factor is reduced to 1 on 20 March 2013.

                   Further assume that on 20 September 2013 the living cost indexation factor is 1.010. The brought-forward PBLCI indexation amount in relation to 20 September 2013 is 0.002. That living cost indexation factor is reduced to 1.008 on 20 September 2013.

                   The brought-forward PBLCI indexation amount in relation to later indexation days is now 0 so there is no further reduction of the indexation factor.

Definition of brought-forward PBLCI indexation amount

             (3)  In this section:

brought-forward PBLCI indexation amount for a day means:

                     (a)  0.007 less any reduction made under subsection (2) for an earlier day; or

                     (b)  0 if the brought-forward CPI indexation amount for the day under section 198MA is 0.

58  At the end of Part 5 of Schedule 5

Add:

35   Special rules for indexation of rates payable under clause 30

             (1)  This clause applies if clause 30 affects the rate at which service pension is payable to a person for a day on or after 20 March 2013.

             (2)  Subsection 198MA(2), and the definition of brought forward CPI indexation amount (except paragraph (b) of that definition) in subsection 198MA(3), apply in relation to the amount described in subparagraph 30(4)(a)(i) of this Schedule for the person in the same way as they apply in relation to the person’s PS minimum rate.

             (3)  The following provisions do not affect the rate of the person’s service pension worked out under clause 30 or an amount worked out in relation to the person’s pension because of clause 34:

                     (a)  subparagraph 198MA(2)(b)(vi);

                     (b)  section 198MB.