2004-2005 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 (Family and Community Services) A Bill for an Act to amend the law relating to family assistance, and for related purposes [Page Break] 1 Short title.......................................................................................1 2 Commencement .............................................................................1 3 Schedule(s)....................................................................................3 Schedule 1--Method of calculating Part B rate for those who return to paid work after the birth of a child etc. 4 A New Tax System (Family Assistance) Act 1999 4 A New Tax System (Family Assistance) (Administration) Act 1999 10 Schedule 2--Maternity payment 12 Part 1--Amendments 12 A New Tax System (Family Assistance) Act 1999 12 A New Tax System (Family Assistance) (Administration) Act 1999 12 Part 2--Application, transitional and other provisions 13 Schedule 3--Family assistance amendments 15 A New Tax System (Family Assistance) Act 1999 15 A New Tax System (Family Assistance) (Administration) Act 1999 15 Schedule 4--Rent assistance 22 Part 1--Duplicate rent assistance payments 22 Division 1--Amendments 22 A New Tax System (Family Assistance) Act 1999 22 Social Security Act 1991 27 Social Security (Administration) Act 1999 31 Veterans' Entitlements Act 1986 32 Division 2--Application of amendments 35 Part 2--Rent certificates 36 A New Tax System (Family Assistance) (Administration) Act 1999 36 Social Security (Administration) Act 1999 37 i Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] 2 family assistance, and for related purposes 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the Family and Community Services 6 Legislation Amendment (Family Assistance and Related Measures) 7 Act 2005. 8 2 Commencement 9 (1) Each provision of this Act specified in column 1 of the table 10 commences, or is taken to have commenced, in accordance with 11 column 2 of the table. Any other statement in column 2 has effect 12 according to its terms. 13 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 1 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day on which this Act receives the and anything in Royal Assent. this Act not elsewhere covered by this table 2. Schedule 1 1 July 2005. 1 July 2005 3. Schedule 2, 1 July 2005. 1 July 2005 items 1 to 6 4. Schedule 2, The day on which this Act receives the item 7 Royal Assent. 5. Schedule 3, The day on which this Act receives the item 1 Royal Assent. 6. Schedule 3, 1 July 2005. 1 July 2005 items 2 and 3 7. Schedule 3, 1 January 2005. 1 January 2005 item 4 8. Schedule 3, 1 January 2006. 1 January 2006 items 5 to 10 9. Schedule 3, The day on which this Act receives the items 11 to 13 Royal Assent. 10. Schedule 3, 1 January 2006. 1 January 2006 items 14 to 17 11. Schedule 4, The later of: Part 1 (a) the day on which this Act receives the Royal Assent; and (b) 1 July 2005. 12. Schedule 4, The day on which this Act receives the Part 2 Royal Assent. 1 Note: This table relates only to the provisions of this Act as originally 2 passed by the Parliament and assented to. It will not be expanded to 3 deal with provisions inserted in this Act after assent. 4 (2) Column 3 of the table contains additional information that is not 5 part of this Act. Information in this column may be added to or 6 edited in any published version of this Act. 2 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] 2 Each Act that is specified in a Schedule to this Act is amended or 3 repealed as set out in the applicable items in the Schedule 4 concerned, and any other item in a Schedule to this Act has effect 5 according to its terms. Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 3 [Page Break] the birth of a child etc. 1 2 Schedule 1--Method of calculating Part B rate 3 for those who return to paid work after 4 the birth of a child etc. 5 6 A New Tax System (Family Assistance) Act 1999 7 1 Subsection 3(1) 8 Insert: 9 paid work (other than in paragraph 15(1)(a)) has the meaning given 10 by section 3B. 11 2 Subsection 3(1) 12 Insert: 13 passive employment income of an individual, in respect of a 14 period, means: 15 (a) income that is earned by the individual in respect of the 16 period as a result of the individual being on paid leave for the 17 period; or 18 (b) a payment of compensation, or a payment under an insurance 19 scheme, in respect of the individual's inability to earn, derive 20 or receive income from paid work during the period; or 21 (c) if the individual stops paid work as a self-employed 22 individual--income that is derived by the individual in 23 respect of the period from an interest, or from investments, 24 held in connection with the individual's previous 25 self-employment. 26 3 Subsection 3(1) 27 Insert: 28 returns to paid work has the meaning given by section 3B. 29 4 Subsection 3(1) 30 Insert: 31 secondary earner of a couple, in respect of an income year, means: 4 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] child etc. Schedule 1 1 (a) unless paragraph (b) applies: 2 (i) the member of the couple who has the lower adjusted 3 taxable income for the year; or 4 (ii) if both members of the couple have the same adjusted 5 taxable income for the year--the member of the couple 6 who returns to paid work first during the year; or 7 (b) if the rate of family tax benefit for a member of the couple is 8 determined on the basis of an estimate of adjusted taxable 9 income for the year, and only one member of the couple 10 returns to paid work during the year--the member of the 11 couple whose original estimate of adjusted taxable income is 12 the lower estimate for the couple for the year (disregarding 13 subclause 3(2) of Schedule 3). 14 5 At the end of Division 1 of Part 2 15 Add: 16 3B Meaning of paid work and returns to paid work 17 Meaning of paid work 18 (1) Paid work (other than in paragraph 15(1)(a)) means any work for 19 financial gain or any other reward (whether as an employee, a 20 self-employed individual or otherwise) that involves a substantial 21 degree of personal exertion on the part of the individual concerned. 22 Note: The ordinary meaning of paid work applies to paragraph 15(1)(a). 23 Meaning of returns to paid work 24 (2) An individual returns to paid work during an income year if: 25 (a) the individual is neither engaging in paid work, nor receiving 26 passive employment income, during that year; and 27 (b) the individual later engages in paid work for an average of at 28 least 10 hours per week for 4 consecutive weeks that start 29 during that year. 30 (3) An individual returns to paid work during an income year if: 31 (a) the individual is neither engaging in paid work, nor receiving 32 passive employment income, during that year; and Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 5 [Page Break] the birth of a child etc. 1 (b) the individual later engages in paid work during that year, but 2 not for an average of at least 10 hours per week for 4 3 consecutive weeks that start during that year; and 4 (c) during the income year following that year, the Secretary is 5 notified in writing in accordance with subsection (4) that the 6 individual returned to paid work during that year. 7 (4) For the purposes of subsection (3), if the individual is a member of 8 a couple at any time, during the income year, before the individual 9 engages in paid work as mentioned in paragraph (3)(b), the 10 Secretary is notified in accordance with this subsection if the 11 Secretary is notified by: 12 (a) if: 13 (i) both members of the couple are eligible for family tax 14 benefit at any time, during that income year, before the 15 individual engages in paid work (whether the members 16 of the couple are eligible at the same time or at different 17 times); and 18 (ii) the individual is a member of the same couple at the 19 time of the notification; 20 both members of the couple; and 21 (b) if: 22 (i) both members of the couple are eligible for family tax 23 benefit at any time, during that income year, before the 24 individual engages in paid work (whether the members 25 of the couple are eligible at the same time or at different 26 times); and 27 (ii) the individual is no longer a member of the same couple 28 at the time of the notification; 29 the individual who engages in the paid work; and 30 (c) if at all times, during that income year, before the individual 31 engages in paid work, only one member of the couple is 32 eligible for family tax benefit--the member of the couple 33 who is eligible for family tax benefit. 34 6 Before clause 29 of Schedule 1 35 Insert: 6 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] child etc. Schedule 1 1 Subdivision A--General method of calculating Part B rate 2 7 At the end of subclause 29(2) of Schedule 1 3 Add: 4 Note: An individual who is a member of a couple works out his or her Part 5 B rate under Subdivision B if the secondary earner of the couple 6 returns to paid work after the birth of a child etc. 7 Note: The heading to clause 29 of Schedule 1 is altered by omitting "Method" and 8 substituting "General method". 9 8 At the end of Division 1 of Part 4 of Schedule 1 10 Add: 11 Subdivision B--Method of calculating Part B rate for those 12 who return to paid work after the birth of a child etc. 13 29A Method of calculating Part B rate for those who return to paid 14 work after the birth of a child etc. 15 Application of clause 16 (1) The Part B rate that an individual is eligible for in respect of a day 17 in an income year is worked out under subclause (2) if: 18 (a) the individual is a member of a couple on the day; and 19 (b) the conditions in subclauses (3) to (7) of this clause are met; 20 and 21 (c) the conditions in clause 29C are met in respect of the day. 22 Method of calculating Part B rate 23 (2) The Part B rate that the individual is eligible for in respect of the 24 day is the amount worked out by adding the following amounts: 25 (a) the individual's standard rate under Division 2 in respect of 26 the day (clauses 30 and 31); 27 (b) the individual's FTB Part B supplement under Division 2A in 28 respect of the day (clause 31A). Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 7 [Page Break] the birth of a child etc. 1 Conditions 2 (3) During a period during the income year in which the day occurs, 3 the secondary earner of the couple (who might be the individual 4 mentioned in subclause (1)): 5 (a) is not engaging in paid work; and 6 (b) is not receiving passive employment income in respect of 7 that period. 8 (4) Later during that income year, the secondary earner returns to paid 9 work for the first time since a child became an FTB child of the 10 secondary earner. 11 (5) The conditions in clause 29B are met in respect of that child. 12 (6) The individual mentioned in subclause (1) has satisfied the FTB 13 reconciliation conditions under section 32B of the Family 14 Assistance Administration Act for all of the same-rate benefit 15 periods in that income year. 16 (7) Either or both of the following apply: 17 (a) the individual notifies the Secretary of the secondary earner's 18 return to paid work before the end of the income year 19 following the income year in which the secondary earner 20 returns to paid work; 21 (b) the Secretary becomes aware of the secondary earner's return 22 to paid work before the end of the income year following the 23 income year in which the secondary earner returns to paid 24 work. 25 29B Conditions to be met in respect of an FTB child 26 (1) For the purpose of subclause 29A(5), the conditions in this clause 27 are met in respect of a child if the conditions in subclauses (2) and 28 (3) of this clause are met in respect of the child on any single day 29 that meets the conditions in clause 29C. 30 Conditions in respect of FTB child 31 (2) Of all the FTB children of the secondary earner, either: 32 (a) the child most recently became an FTB child of the 33 secondary earner; or 8 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] child etc. Schedule 1 1 (b) if all of the children became FTB children of the secondary 2 earner at the same time--the child is the youngest FTB child 3 of the secondary earner. 4 Generally, only one individual calculates Part B rate under 5 clause 29A 6 (3) No other individual's Part B rate has been calculated under 7 clause 29A as a result of the conditions in this clause being met in 8 respect of the child. 9 Exception--section 59 determination (shared care) 10 (4) If another individual's Part B rate has been calculated as mentioned 11 in subclause (3), the condition in that subclause is taken to be met 12 in respect of the child if: 13 (a) on the day on which the other individual or his or her partner 14 returns to paid work, the child is covered by a determination 15 under subsection 59(1); and 16 (b) the secondary earner is not a member of the same couple as 17 the other individual on either: 18 (i) the day mentioned in paragraph (a); or 19 (ii) the day on which the secondary earner returns to paid 20 work. 21 Exception--section 28 and 29 determinations (members of a 22 couple in a blended family or members of a separated couple) etc. 23 (5) If another individual's Part B rate has been calculated as mentioned 24 in subclause (3), the condition in that subclause is taken to be met 25 in respect of the child if: 26 (a) at some time during the income year, the other individual is 27 the partner of: 28 (i) the secondary earner; or 29 (ii) the individual mentioned in subclause 29A(1) (if he or 30 she is not the secondary earner); and 31 (b) the other individual's Part B rate has been calculated under 32 clause 29A in respect of the same return to paid work, and 33 the same FTB child, of the secondary earner. Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 9 [Page Break] the birth of a child etc. 1 29C Conditions to be met in respect of a day 2 (1) For the purposes of paragraph 29A(1)(c) and clause 29B, the 3 conditions in this clause are met in respect of a day in an income 4 year if: 5 (a) the day falls in the period that starts on the latest of the 6 following days: 7 (i) 1 July of the income year; 8 (ii) the day after the secondary earner stops paid work; 9 (iii) the day after the secondary earner stops receiving 10 passive employment income in respect of a period; 11 and ends immediately before the day on which the secondary 12 earner returns to paid work; and 13 (b) the secondary earner is not receiving passive employment 14 income in respect of the day. 15 (2) For the purpose of subclause (1), the day on which an individual 16 returns to paid work is: 17 (a) if the individual returns to paid work because of subsection 18 3B(2)--the first day of the 4 week period mentioned in that 19 subsection on which the individual is engaging in paid work; 20 and 21 (b) if the individual returns to paid work because of subsection 22 3B(3)--the first day on which the individual is engaging in 23 paid work. 24 (3) To avoid doubt, the first and last days of the period mentioned in 25 paragraph (1)(a) fall in that period. 26 9 Subclauses 31A(1) and (3) of Schedule 1 27 After "clause 29", insert "or 29A". 28 A New Tax System (Family Assistance) (Administration) Act 29 1999 30 10 After paragraph 32A(2)(bb) 31 Insert: 32 (bba) paragraph 29A(2)(b) of Schedule 1 to the Family Assistance 33 Act; 10 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] child etc. Schedule 1 1 11 After subparagraph 105A(2)(a)(iib) 2 Insert: 3 (iiba) paragraph 29A(2)(b) of Schedule 1 to the Family 4 Assistance Act; 5 12 Application of amendments 6 The amendments made by this Schedule apply in respect of the 7 2005-2006 income year and later income years. Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 11 [Page Break] Part 1 Amendments 1 2 Schedule 2--Maternity payment 3 Part 1--Amendments 4 A New Tax System (Family Assistance) Act 1999 5 1 Paragraph 36(5)(b) 6 Omit "not more than 26 weeks of age", substitute "aged under 2". 7 2 After paragraph 36(5)(b) 8 Insert: 9 (ba) if the child arrives in Australia from overseas as part of the 10 process for the adoption of the child--the child is aged under 11 2 when the child arrives in Australia; and 12 A New Tax System (Family Assistance) (Administration) Act 13 1999 14 3 Paragraph 39(2)(b) 15 Repeal the paragraph, substitute: 16 (b) if the circumstances covered by the claim involve eligibility 17 under subsection 36(5) of the Family Assistance Act and the 18 child mentioned in that subsection arrives in Australia from 19 overseas as part of the process for the adoption of the child-- 20 the time the child arrives in Australia; or 21 (c) if the circumstances covered by the claim involve eligibility 22 under subsection 36(5) of the Family Assistance Act and the 23 child mentioned in that subsection does not arrive in 24 Australia from overseas as part of the process for the 25 adoption of the child--the time the child is entrusted to the 26 care of the claimant. 12 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Application, transitional and other provisions Part 2 1 2 Part 2--Application, transitional and other 3 provisions 4 4 Definition of commencement 5 In this Part: 6 commencement means the commencement of the amendments made by 7 Part 1 of this Schedule. 8 5 Application of amendments made by Part 1 9 The amendments made by Part 1 of this Schedule apply in relation to 10 any child: 11 (a) who is, as part of the process for the adoption of the child by 12 an individual, entrusted to the care of the individual on or 13 after 1 July 2004; and 14 (b) in respect of whom maternity payment has not already been 15 paid. 16 6 Transitional extension of claim deadline 17 (1) This item applies to a claim for payment of maternity payment in 18 normal circumstances if: 19 (a) before commencement, a child is entrusted to the care of the 20 claimant, as part of the process for the adoption of the child 21 by the claimant; and 22 (b) if the child arrives in Australia from overseas as part of the 23 process for the adoption--the child arrives in Australia 24 before commencement. 25 (2) Paragraphs 39(2)(b) and (c) of the A New Tax System (Family 26 Assistance) (Administration) Act 1999 do not apply in relation to the 27 claim. 28 (3) The claim is not effective if made later than 26 weeks after 29 commencement. 30 (4) The reference in subsection 39(3) of the A New Tax System (Family 31 Assistance) (Administration) Act 1999 to the period of 26 weeks 32 mentioned in subsection (2) is taken to be a reference to the period of 26 33 weeks mentioned in subitem (3). Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 13 [Page Break] Part 2 Application, transitional and other provisions 1 7 No maternity payment if maternity allowance already paid 2 in respect of child 3 (1) An individual is not eligible for maternity payment in respect of a child 4 if: 5 (a) after this item commences, the child is entrusted to the 6 individual's care, as part of the process for the adoption of 7 the child by the individual; and 8 (b) maternity allowance has been paid to any person in respect of 9 the child. 10 (2) In this item: 11 maternity allowance means maternity allowance under Division 2 of 12 Part 3 of the A New Tax System (Family Assistance) Act 1999, as in 13 force before item 1 of Schedule 2 to the Family Assistance Legislation 14 Amendment (More Help for Families--Increased Payments) Act 2004 15 commenced. 14 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] 1 2 Schedule 3--Family assistance amendments 3 4 A New Tax System (Family Assistance) Act 1999 5 1 Subsection 3(1) 6 Insert: 7 member of the same couple has the same meaning as member of a 8 couple has. 9 2 Paragraph 13(2)(a) of Schedule 1 10 Omit "the income year", substitute "the first or second income year". 11 3 Application of item 2 12 The amendment made by item 2 applies in respect of a past period that 13 occurs in the 2003-2004 income year or a later income year. 14 4 Subclause 29(2) of Schedule 1 (at the end of step 3 of the 15 method statement) 16 Add "(taking away so much of the individual's standard rate, and then 17 so much (if any) of the individual's FTB Part B supplement, as equals 18 the reduction)". 19 A New Tax System (Family Assistance) (Administration) Act 20 1999 21 5 Paragraph 28(3)(a) 22 After "subsection (2)", insert "or (6)". 23 6 After paragraph 28(3)(b) 24 Insert: 25 and (ba) subsection (4) (which is about when the claimant and the 26 claimant's partner separate after the determination is varied) 27 does not apply; 28 7 Paragraph 28(3)(c) 29 Omit "cancellation year", substitute "cancellation income year". Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 15 [Page Break] 1 8 At the end of section 28 2 Add: 3 Consequence where claimant and partner separate after 4 determination varied 5 (4) After the Secretary varies the determination under subsection (2) or 6 (6), the Secretary must again vary the determination if the 7 following conditions are met: 8 (a) the claimant and the partner mentioned in 9 subparagraph (1)(b)(iii) (the ex-partner) ceased to be 10 members of the same couple during the income year (the 11 later income year) that began 2 years after the beginning of 12 the cancellation income year; 13 (b) at the time when the Secretary would vary the determination 14 under this subsection, the claimant and the ex-partner are not 15 members of the same couple; 16 (c) if the claimant was required to lodge an income tax return for 17 the cancellation income year--an assessment is or has been 18 made under the Income Tax Assessment Act 1936 of the 19 claimant's taxable income for the cancellation income year; 20 (d) in any case--the ex-partner was required to lodge an income 21 tax return for the cancellation income year but still had not 22 done so by: 23 (i) if paragraph (c) applies--the later of the time when the 24 claimant and the ex-partner last ceased to be members 25 of the same couple and the time when the assessment of 26 the claimant's taxable income is made; or 27 (ii) otherwise--the time when the claimant and the 28 ex-partner last ceased to be members of the same 29 couple; 30 (e) the Secretary is satisfied that the claimant was eligible for an 31 amount (the recalculated amount) of family tax benefit for 32 the cancellation days. 33 (5) The Secretary must vary the determination under subsection (4) so 34 that it has the effect that, for the cancellation days, the claimant is 35 entitled to be paid: 36 (a) if: 37 (i) the claimant was required to lodge an income tax return 38 for the cancellation income year and the claimant 16 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] 1 lodged the return with the Commissioner of Taxation 2 before the end of the later income year; or 3 (ii) the claimant was not required to lodge an income tax 4 return for the cancellation income year; 5 the recalculated amount; or 6 (b) in any other case--the lesser of: 7 (i) the recalculated amount; and 8 (ii) the amount that the claimant was entitled to be paid 9 before the variation under subsection (2) or (6) was 10 made. 11 Consequence where claimant and ex-partner reconcile after 12 separation 13 (6) If: 14 (a) after the Secretary varies the determination under 15 subsection (4), the claimant and the ex-partner become 16 members of the same couple again; and 17 (b) the ex-partner has still not lodged an income tax return for 18 the cancellation income year by the time when the claimant 19 and the ex-partner become members of the same couple; 20 the Secretary must vary the determination so that it has the effect 21 that the claimant is not, and never was, entitled to family tax 22 benefit for the cancellation days. 23 9 Application and transitional provisions relating to items 5, 24 6 and 8 25 Application of items 5, 6 and 8 26 (1) The amendments made by items 5, 6 and 8 apply in respect of a 27 cancellation income year that is the 2001-2002 income year or a later 28 income year. 29 Transitional provisions 30 (2) If a claimant has received an act of grace payment under section 33 of 31 the Financial Management and Accountability Act 1997 of the 32 difference between: 33 (a) the recalculated amount; and Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 17 [Page Break] 1 (b) the amount that the claimant was entitled to be paid before a 2 variation under subsection 28(2) of the A New Tax System 3 (Family Assistance) (Administration) Act 1999 was made for 4 the cancellation income year; 5 then the claimant is not entitled to be paid that amount again under 6 subsection 28(5) of that Act. 7 (3) Sections 107 and 109E of the A New Tax System (Family Assistance) 8 (Administration) Act 1999 do not limit the date of effect of a review 9 decision that is made on or before 30 June 2006 that results in a 10 decision under subsection 28(4) of that Act, in respect of the 11 2001-2002, 2002-2003 or 2003-2004 income year. 12 10 Subsection 33(1A) 13 Repeal the subsection, substitute: 14 (1A) This subsection applies to an individual who, on the advance 15 assessment day, owes a debt to the Commonwealth (whether 16 arising under this Act or not) that is: 17 (a) recoverable under Part 4 by means of deductions from the 18 individual's instalments of family tax benefit under 19 section 84; or 20 (b) being recovered by deductions from the individual's 21 instalments of family tax benefit under section 227. 22 11 Subsection 33(2) 23 Omit "An individual's", substitute "Subject to subsection (2A), an 24 individual's". 25 12 After subsection 33(2) 26 Insert: 27 (2A) If an individual's request to the Secretary for the payment of a 28 family tax benefit advance for a standard advance period is made 29 after the start of that period, the individual's advance assessment 30 day for that period is the day on which the individual made the 31 request. 32 13 Subsection 60D(1) 33 Repeal the subsection, substitute: 18 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] 1 (1) If: 2 (a) a determination of entitlement under section 51B is in force 3 in respect of a claimant who is an individual and a particular 4 income year; and 5 (b) any of the following people: 6 (i) the claimant; 7 (ii) the claimant's partner at the end of the second income 8 year (the later income year) following the particular 9 income year (if he or she was also the claimant's partner 10 in the particular income year); 11 (iii) both the claimant and the claimant's partner (as 12 described in subparagraph (ii)); 13 are required to lodge an income tax return for the particular 14 income year but have not done so by the end of the later 15 income year; and 16 (c) by the end of the later income year, an assessment has not 17 been made under the Income Tax Assessment Act 1936 of the 18 taxable income for the particular income year for everyone to 19 whom paragraph (b) applies; 20 the Secretary may vary the determination. 21 14 Subsection 95(1) 22 Repeal the subsection, substitute: 23 (1) The Secretary may, on behalf of the Commonwealth, decide to 24 write off a debt for a stated period or otherwise, but only if 25 subsection (2), (4A) or (4B) applies. 26 15 Subsection 95(2) 27 Omit ", and only if". 28 Note: The following heading to subsection 95(2) is inserted "Secretary may write off debt if 29 debt irrecoverable or debt will not be repaid etc.". 30 16 After subsection 95(4) 31 Insert: Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 19 [Page Break] 1 Secretary may write off subsection 28(2) or (6) debt if claimant 2 and partner separate 3 (4A) The Secretary may, under subsection (1), decide to write off a debt 4 arising because of subsection 28(2) or (6) (which deal with when 5 income tax returns have not been lodged) if the following 6 conditions are met: 7 (a) the claimant and the partner mentioned in subparagraph 8 28(1)(b)(iii) (the ex-partner) ceased to be members of the 9 same couple after the end of the income year (the later 10 income year) that began 2 years after the beginning of the 11 cancellation income year mentioned in subsection 28(1); 12 (b) if the claimant was required to lodge an income tax return for 13 the cancellation income year--an assessment is or has been 14 made under the Income Tax Assessment Act 1936 of the 15 claimant's taxable income for the cancellation income year; 16 (c) in any case--the ex-partner was required to lodge an income 17 tax return for the cancellation income year but still had not 18 done so by the time when the claimant and the ex-partner 19 ceased to be members of the same couple. 20 Secretary may write off subsection 60D(2) debt if claimant and 21 partner separate 22 (4B) The Secretary may, under subsection (1), decide to write off a debt 23 arising because of subsection 60D(2) (which deals with when 24 income tax returns have not been lodged) if the following 25 conditions are met: 26 (a) the claimant and the partner mentioned in paragraph 27 60D(1)(b) (the ex-partner) ceased to be members of the same 28 couple after the end of the second income year following the 29 particular income year mentioned in paragraph 60D(1)(a); 30 (b) if the claimant was required to lodge an income tax return for 31 the particular income year--an assessment is or has been 32 made under the Income Tax Assessment Act 1936 of the 33 claimant's taxable income for the particular income year; 34 (c) in any case--the ex-partner was required to lodge an income 35 tax return for the particular income year but still had not done 36 so by the time when the claimant and the ex-partner ceased to 37 be members of the same couple. 20 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] 1 Note 1: The following heading to subsection 95(5) is inserted "When decision under 2 subsection (1) takes effect". 3 Note 2: The following heading to subsection 95(6) is inserted "Debt that has been written off 4 may be recovered". 5 17 Application of items 14 to 16 6 (1) The amendments made by items 14 to 16 apply in respect of a 7 cancellation income year or a particular income year (as the case 8 requires), that is the 2000-2001 income year or a later income year. 9 (2) However, the amendments made by those items apply in respect of the 10 2000-2001 income year as if paragraphs 95(4A)(a) and (c) of the A New 11 Tax System (Family Assistance) (Administration) Act 1999 referred to 12 the income year that began immediately after the cancellation income 13 year mentioned in subsection 28(1) of that Act (instead of the income 14 year that began 2 years after the beginning of the cancellation income 15 year). Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 21 [Page Break] Part 1 Duplicate rent assistance payments 1 2 Schedule 4--Rent assistance 3 Part 1--Duplicate rent assistance payments 4 Division 1--Amendments 5 A New Tax System (Family Assistance) Act 1999 6 1 Subsection 3(1) 7 Insert: 8 income support supplement has the same meaning as in the Social 9 Security Act 1991. 10 2 Clause 3 of Schedule 1 11 Omit "clause 5", substitute "clauses 4A, 4B and 5". 12 3 After clause 4 of Schedule 1 13 Insert: 14 4A Offsetting for duplicate rent assistance under family assistance 15 and social security law 16 When this clause applies 17 (1) This clause applies if: 18 (a) a decision (the social security decision) was made that rent 19 assistance was to be included when calculating an 20 individual's, or an individual's eligible partner's, rate of 21 social security payment for a day; and 22 (b) when the social security decision was made, no decision (the 23 family assistance decision) to make a determination that 24 includes, or to vary a determination to include, rent 25 assistance when calculating the individual's Part A rate of 26 family tax benefit for that day had been made; and 27 (c) after the social security decision was made, the family 28 assistance decision was made; and 29 (d) the day mentioned in paragraphs (a) and (b) comes before the 30 day on which the family assistance decision was made. 22 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Duplicate rent assistance payments Part 1 1 Note: For the definition of eligible partner see subclause (5). 2 Part A rate to be reduced 3 (2) The individual's Part A rate for that day (as calculated or 4 recalculated because of the making of the family assistance 5 decision) is to be reduced: 6 (a) first, by the individual's annual social security RA amount 7 for that day (see subclause (3)); and 8 (b) then, by the individual's eligible partner's annual social 9 security RA amount for that day (see subclause (4)). 10 However, it is not to be reduced to less than: 11 (c) if it has been calculated for the first time under clause 3 12 because of the making of the family assistance decision--nil; 13 and 14 (d) if it has been recalculated under clause 3 because of the 15 making of the family assistance decision--the Part A rate as 16 it was immediately before the recalculation. 17 (3) The individual's annual social security RA amount for that day is 18 the amount worked out as follows: 19 Method statement 20 Step 1. Work out the rate (if any) of social security payment (the 21 actual payment) that was payable to the individual for 22 that day. 23 Step 2. Work out the rate (if any) of social security payment (the 24 notional payment) that would have been payable to the 25 individual for that day if rent assistance were not 26 included when calculating the rate of the individual's 27 social security payment for that day. 28 Step 3. Subtract the notional payment from the actual payment. 29 The difference is the individual's daily social security 30 RA amount for that day. 31 Step 4. Multiply the individual's daily social security RA amount 32 for that day by 365. The result is the individual's annual 33 social security RA amount for that day. Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 23 [Page Break] Part 1 Duplicate rent assistance payments 1 (4) The individual's eligible partner's annual social security RA 2 amount for that day is the amount worked out as follows: 3 Method statement 4 Step 1. Work out the rate (if any) of social security payment (the 5 actual payment) that was payable to the individual's 6 eligible partner for that day. 7 Step 2. Work out the rate (if any) of social security payment (the 8 notional payment) that would have been payable to the 9 eligible partner for that day if rent assistance were not 10 included when calculating the rate of the eligible 11 partner's social security payment for that day. 12 Step 3. Subtract the notional payment from the actual payment. 13 The difference is the eligible partner's daily social 14 security RA amount for that day. 15 Step 4. Multiply the eligible partner's daily social security RA 16 amount for that day by 365. The result is the individual's 17 eligible partner's annual social security RA amount for 18 that day. 19 (5) For the purposes of this clause, an individual is the eligible partner 20 of another individual if both individuals are members of a couple 21 (other than an illness separated couple, a respite care couple or a 22 temporarily separated couple). 23 4B Offsetting for duplicate rent assistance under family assistance 24 and veterans' entitlements law 25 When this clause applies 26 (1) This clause applies if: 27 (a) a decision (the veterans' entitlements decision) was made 28 that rent assistance was to be included when calculating an 29 individual's, or an individual's eligible partner's, rate of 30 service pension or income support supplement for a day; and 31 (b) when the veterans' entitlements decision was made, no 32 decision (the family assistance decision) to make a 24 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Duplicate rent assistance payments Part 1 1 determination that includes, or to vary a determination to 2 include, rent assistance when calculating the individual's Part 3 A rate of family tax benefit for that day had been made; and 4 (c) after the veterans' entitlements decision was made, the family 5 assistance decision was made; and 6 (d) the day mentioned in paragraphs (a) and (b) comes before the 7 day on which the family assistance decision was made. 8 Note: For the definition of eligible partner see subclause (5). 9 Part A rate to be reduced 10 (2) The individual's Part A rate for that day (as calculated or 11 recalculated because of the making of the family assistance 12 decision and as reduced (if at all) under clause 4A) is to be 13 reduced: 14 (a) first, by the individual's annual veterans' entitlements RA 15 amount for that day (see subclause (3)); and 16 (b) then, by the individual's eligible partner's annual veterans' 17 entitlements RA amount for that day (see subclause (4)). 18 However, it is not to be reduced to less than: 19 (c) if it has been calculated for the first time under clause 3 20 because of the making of the family assistance decision--nil; 21 and 22 (d) if it has been recalculated under clause 3 because of the 23 making of the family assistance decision--the Part A rate as 24 it was immediately before the recalculation. 25 (3) The individual's annual veterans' entitlements RA amount for 26 that day is the amount worked out as follows: 27 Method statement 28 Step 1. Work out the rate (if any) of service pension or income 29 support supplement (the actual payment) that was 30 payable to the individual for that day. 31 Step 2. Work out the rate (if any) of service pension or income 32 support supplement (the notional payment) that would 33 have been payable to the individual for that day if rent 34 assistance were not included when calculating the rate of Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 25 [Page Break] Part 1 Duplicate rent assistance payments 1 the individual's service pension or income support 2 supplement for that day. 3 Step 3. Subtract the notional payment from the actual payment. 4 The difference is the individual's provisional veterans' 5 entitlements RA amount for that day. 6 Step 4. Divide the individual's provisional veterans' entitlements 7 RA amount for that day by 364, then multiply it by 365. 8 The result is the individual's annual veterans' 9 entitlements RA amount for that day. 10 (4) The individual's eligible partner's annual veterans' entitlements 11 RA amount for that day is the amount worked out as follows: 12 Method statement 13 Step 1. Work out the rate (if any) of service pension or income 14 support supplement (the actual payment) that was 15 payable to the individual's eligible partner for that day. 16 Step 2. Work out the rate (if any) of service pension or income 17 support supplement (the notional payment) that would 18 have been payable to the eligible partner for that day if 19 rent assistance were not included when calculating the 20 amount of the eligible partner's service pension or 21 income support supplement for that day. 22 Step 3. Subtract the notional payment from the actual payment. 23 The difference is the eligible partner's provisional 24 veterans' entitlements RA amount for that day. 25 Step 4. Divide the eligible partner's provisional veterans' 26 entitlements RA amount for that day by 364, then 27 multiply it by 365. The result is the individual's eligible 28 partner's annual veterans' entitlements RA amount for 29 that day. 30 (5) For the purposes of this clause, an individual is the eligible partner 31 of another individual if both individuals are members of a couple 32 (other than an illness separated couple or a respite care couple). 26 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Duplicate rent assistance payments Part 1 1 4 Subclause 5(1) of Schedule 1 2 After "Part A rate", insert "(as reduced (if at all) under clauses 4A and 3 4B)". 4 5 Clause 17 of Schedule 1 5 Omit "or a service pension or is receiving income support supplement 6 under Part IIIA of the Veterans' Entitlements Act 1986", substitute ", a 7 service pension or income support supplement". 8 Social Security Act 1991 9 6 Subsection 23(1) 10 Insert: 11 Part A rate of family tax benefit is the Part A rate of family tax 12 benefit worked out under Part 2 or 3 of Schedule 1 to the Family 13 Assistance Act. 14 7 Subsection 1070D(3) 15 Repeal the subsection, substitute: 16 (3) The specific requirement is that: 17 (a) in a paragraph (2)(a) case, either of the following is satisfied: 18 (i) the person's maximum Part A rate of family tax benefit 19 does not include rent assistance; 20 (ii) the person's maximum Part A rate of family tax benefit 21 includes rent assistance and clause 4A of Schedule 1 to 22 the Family Assistance Act applies to reduce the person's 23 Part A rate of family tax benefit; and 24 (b) in a paragraph (2)(b) case, either of the following is satisfied: 25 (i) the person's, or the person's partner's, maximum Part A 26 rate of family tax benefit does not include rent 27 assistance; 28 (ii) the person's, or the person's partner's, maximum Part A 29 rate of family tax benefit includes rent assistance and 30 clause 4A or 4B of Schedule 1 to the Family Assistance 31 Act applies to reduce the person's, or the person's 32 partner's, Part A rate of family tax benefit. 33 8 Section 1070E Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 27 [Page Break] Part 1 Duplicate rent assistance payments 1 Omit all the words after "is that", substitute: 2 either of the following is satisfied: 3 (c) the person's maximum Part A rate of family tax benefit 4 does not include rent assistance; 5 (d) the person's maximum Part A rate of family tax benefit 6 includes rent assistance and clause 4A of Schedule 1 to 7 the Family Assistance Act applies to reduce the person's 8 Part A rate of family tax benefit. 9 9 Paragraph 1070F(2)(c) 10 Omit "the person's maximum Part A rate of family tax benefit does not 11 include rent assistance; and", substitute: 12 either of the following is satisfied: 13 (iii) the person's maximum Part A rate of family tax benefit 14 does not include rent assistance; 15 (iv) the person's maximum Part A rate of family tax benefit 16 includes rent assistance and clause 4A of Schedule 1 to 17 the Family Assistance Act applies to reduce the person's 18 Part A rate of family tax benefit; and 19 10 Paragraph 1070F(2)(d) 20 Omit "the maximum Part A rate of family tax benefit of the person, or 21 the person's partner, does not include rent assistance.", substitute: 22 either of the following is satisfied: 23 (iii) the person's, or the person's partner's, maximum Part A 24 rate of family tax benefit does not include rent 25 assistance; 26 (iv) the person's, or the person's partner's, maximum Part A 27 rate of family tax benefit includes rent assistance but 28 clause 4A or 4B of Schedule 1 to the Family Assistance 29 Act applies to reduce the person's, or the person's 30 partner's, Part A rate of family tax benefit. 31 11 Paragraph 1070F(3)(c) 32 Omit "the person's maximum Part A rate of family tax benefit does not 33 include rent assistance; and", substitute: 34 either of the following is satisfied: 35 (iii) the person's maximum Part A rate of family tax benefit 36 does not include rent assistance; 28 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Duplicate rent assistance payments Part 1 1 (iv) the person's maximum Part A rate of family tax benefit 2 includes rent assistance and clause 4A of Schedule 1 to 3 the Family Assistance Act applies to reduce the person's 4 Part A rate of family tax benefit; and 5 12 Paragraph 1070F(3)(d) 6 Omit "the maximum Part A rate of family tax benefit of the person, or 7 the person's partner, does not include rent assistance.", substitute: 8 either of the following is satisfied: 9 (iii) the person's, or the person's partner's, maximum Part A 10 rate of family tax benefit does not include rent 11 assistance; 12 (iv) the person's, or the person's partner's, maximum Part A 13 rate of family tax benefit includes rent assistance but 14 clause 4A or 4B of Schedule 1 to the Family Assistance 15 Act applies to reduce the person's, or the person's 16 partner's, Part A rate of family tax benefit. 17 13 Paragraph 1070G(1)(c) 18 Omit "the person's maximum Part A rate of family tax benefit does not 19 include rent assistance; and", substitute: 20 either of the following is satisfied: 21 (iii) the person's maximum Part A rate of family tax benefit 22 does not include rent assistance; 23 (iv) the person's maximum Part A rate of family tax benefit 24 includes rent assistance and clause 4A of Schedule 1 to 25 the Family Assistance Act applies to reduce the person's 26 Part A rate of family tax benefit; and 27 14 Paragraph 1070G(1)(d) 28 Omit "the maximum Part A rate of family tax benefit of the person, or 29 the person's partner, does not include rent assistance.", substitute: 30 either of the following is satisfied: 31 (iii) the person's, or the person's partner's, maximum Part A 32 rate of family tax benefit does not include rent 33 assistance; 34 (iv) the person's, or the person's partner's, maximum Part A 35 rate of family tax benefit includes rent assistance but 36 clause 4A or 4B of Schedule 1 to the Family Assistance Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 29 [Page Break] Part 1 Duplicate rent assistance payments 1 Act applies to reduce the person's, or the person's 2 partner's, Part A rate of family tax benefit. 3 15 Paragraph 1070H(2)(c) 4 Omit "the person's maximum Part A rate of family tax benefit does not 5 include rent assistance; and", substitute: 6 either of the following is satisfied: 7 (iii) the person's maximum Part A rate of family tax benefit 8 does not include rent assistance; 9 (iv) the person's maximum Part A rate of family tax benefit 10 includes rent assistance and clause 4A of Schedule 1 to 11 the Family Assistance Act applies to reduce the person's 12 Part A rate of family tax benefit; and 13 16 Paragraph 1070H(2)(d) 14 Omit "the maximum Part A rate of family tax benefit of the person, or 15 the person's partner, does not include rent assistance.", substitute: 16 either of the following is satisfied: 17 (iii) the person's, or the person's partner's, maximum Part A 18 rate of family tax benefit does not include rent 19 assistance; 20 (iv) the person's, or the person's partner's, maximum Part A 21 rate of family tax benefit includes rent assistance but 22 clause 4A or 4B of Schedule 1 to the Family Assistance 23 Act applies to reduce the person's, or the person's 24 partner's, Part A rate of family tax benefit. 25 17 Paragraph 1070J(b) 26 Omit "the person's maximum Part A rate of family tax benefit does not 27 include rent assistance; and", substitute: 28 either of the following is satisfied: 29 (iii) the person's maximum Part A rate of family tax benefit 30 does not include rent assistance; 31 (iv) the person's maximum Part A rate of family tax benefit 32 includes rent assistance and clause 4A of Schedule 1 to 33 the Family Assistance Act applies to reduce the person's 34 Part A rate of family tax benefit; and 35 18 Paragraph 1070J(c) 30 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Duplicate rent assistance payments Part 1 1 Omit "the maximum Part A rate of family tax benefit of the person, or 2 the person's partner, does not include rent assistance.", substitute: 3 either of the following is satisfied: 4 (iii) the person's, or the person's partner's, maximum Part A 5 rate of family tax benefit does not include rent 6 assistance; 7 (iv) the person's, or the person's partner's, maximum Part A 8 rate of family tax benefit includes rent assistance but 9 clause 4A or 4B of Schedule 1 to the Family Assistance 10 Act applies to reduce the person's, or the person's 11 partner's, Part A rate of family tax benefit. 12 Social Security (Administration) Act 1999 13 19 After subsection 118(12) 14 Insert: 15 (12A) If: 16 (a) a decision (the social security decision) was made that rent 17 assistance (the social security rent assistance) was to be 18 included when calculating a person's rate of social security 19 payment for each day in a period; and 20 (b) the condition in subsection (12B) is met for each day in that 21 period (which is about rent assistance also being included in 22 family tax benefit); and 23 (c) because the inclusion of the social security rent assistance 24 was contrary to Part 3.7 of the 1991 Act, an adverse 25 determination is made to reduce the rate of, or cancel, the 26 person's social security payment for each day in that period; 27 the adverse determination takes effect on the first day of that 28 period. 29 (12B) The condition in this subsection is met for each day in a period if: 30 (a) both of the following apply: 31 (i) the person was a member of a couple (other than an 32 illness separated couple, a respite care couple or a 33 temporarily separated couple) on each day in the period; 34 (ii) when the social security decision was made, a 35 determination under the family assistance law was in 36 force that included rent assistance when calculating the Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 31 [Page Break] Part 1 Duplicate rent assistance payments 1 person's, or the person's partner's, Part A rate of family 2 tax benefit for each day in the period; or 3 (b) both of the following apply: 4 (i) the person was not a member of a couple, or was a 5 member of an illness separated couple, a respite care 6 couple, or a temporarily separated couple, on each day 7 in the period; 8 (ii) when the social security decision was made, a 9 determination under the family assistance law was in 10 force that included rent assistance when calculating the 11 person's Part A rate of family tax benefit for each day in 12 the period; or 13 (c) all of the following apply: 14 (i) when the social security decision was made, no 15 determination of a kind mentioned in 16 subparagraph (a)(ii) or (b)(ii) (as the case requires) was 17 in force; 18 (ii) after the social security decision was made, such a 19 determination was made; 20 (iii) each day in the period either is, or comes after, the day 21 on which the determination was made. 22 Veterans' Entitlements Act 1986 23 20 Section 5 (index of definitions) 24 Insert the following entry in its appropriate alphabetical position, as 25 determined on a letter-by-letter basis: maximum Part A rate of family tax benefit 5F(1) 26 21 Subsection 5F(1) 27 Insert: 28 maximum Part A rate of family tax benefit is the maximum rate 29 worked out in step 1 of the method statement in clause 3 of 30 Schedule 1 to the Family Assistance Act. 31 22 Subsection 56H(3) 32 Omit "and (8)", substitute ", (8) or (9)". 33 23 At the end of section 56H 32 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Duplicate rent assistance payments Part 1 1 Add: 2 Duplicate payments of rent assistance 3 (9) If: 4 (a) a decision (the veterans' entitlements decision) was made 5 that rent assistance (the veterans' entitlements rent 6 assistance) was to be included when calculating a person's 7 rate of service pension or income support supplement for 8 each day in a period; and 9 (b) the condition in subsection (10) is met for each day in that 10 period (which is about rent assistance also being included in 11 family tax benefit); and 12 (c) because the inclusion of the veterans' entitlements rent 13 assistance was contrary to Module C of the Rate Calculator, 14 an adverse determination is made to reduce the rate of, or 15 cancel, the person's service pension or income support 16 supplement for each day in that period; 17 the day specified under paragraph (2)(b) must be the first day of 18 that period and may be earlier than the day on which the 19 determination is made. 20 (10) The condition in this subsection is met for each day in a period if: 21 (a) both of the following apply: 22 (i) the person was a member of a couple (other than an 23 illness separated couple or a respite care couple) on 24 each day in the period; 25 (ii) when the veterans' entitlements decision was made, a 26 determination under the family assistance law was in 27 force that included rent assistance when calculating the 28 person's, or the person's partner's, Part A rate of family 29 tax benefit for each day in that period; or 30 (b) both of the following apply: 31 (i) the person was not a member of a couple, or was a 32 member of an illness separated couple, or a respite care 33 couple, on each day in the period; 34 (ii) when the veterans' entitlements decision was made, a 35 determination under the family assistance law was in 36 force that included rent assistance when calculating the 37 person's Part A rate of family tax benefit for each day in 38 that period; or Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 33 [Page Break] Part 1 Duplicate rent assistance payments 1 (c) all of the following apply: 2 (i) when the veterans' entitlements decision was made, no 3 determination of a kind mentioned in 4 subparagraph (a)(ii) or (b)(ii) (as the case requires) was 5 in force; 6 (ii) after the veterans' entitlements decision was made, such 7 a determination was made; 8 (iii) each day in the period either is, or comes after, the day 9 on which the determination was made. 10 24 Paragraph SCH6-C3(f) of Schedule 6 11 Repeal the paragraph, substitute: 12 (f) the person satisfies either point SCH6-C3A or SCH6-C3B. 13 25 After point SCH6-C3 of Schedule 6 14 Insert: 15 SCH6-C3A A person satisfies this point if: 16 (a) the person is not a member of a couple, or is a member of an 17 illness separated couple or a respite care couple, and is 18 entitled to be paid a family tax benefit; and 19 (b) either: 20 (i) the person's maximum Part A rate of family tax benefit 21 does not include rent assistance; or 22 (ii) the person's maximum Part A rate of family tax benefit 23 includes rent assistance and clause 4B of Schedule 1 to 24 the Family Assistance Act applies to reduce the person's 25 Part A rate of family tax benefit. 26 SCH6-C3B A person satisfies this point if: 27 (a) the person is a member of a couple (other than an illness 28 separated couple or a respite care couple) and the person, or 29 the person's partner, is entitled to be paid family tax benefit; 30 and 31 (b) either: 32 (i) the person's, or the person's partner's, maximum Part A 33 rate of family tax benefit does not include rent 34 assistance; or 35 (ii) the person's, or the person's partner's, maximum Part A 36 rate of family tax benefit includes rent assistance and 34 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Duplicate rent assistance payments Part 1 1 clause 4A or 4B of Schedule 1 to the Family Assistance 2 Act applies to reduce the person's, or the person's 3 partner's, Part A rate of family tax benefit. 4 Division 2--Application of amendments 5 26 Application of items 2 to 4 6 The amendments made by items 2 to 4 of this Schedule apply in relation 7 to a decision, made after the commencement of this item, to make a 8 determination that includes, or to vary a determination to include, rent 9 assistance when calculating an individual's Part A rate of family tax 10 benefit for a day that occurs before or after that commencement. 11 27 Application of items 7 to 18 12 The amendments made by items 7 to 18 of this Schedule apply in 13 relation to a decision, made after the commencement of this item, 14 calculating the rate of a social security payment for a day that occurs 15 before or after that commencement. 16 28 Application of item 19 17 The amendment made by item 19 applies in relation to an adverse 18 determination, made after the commencement of this item, to reduce the 19 rate of, or cancel, a person's social security payment for a day that 20 occurs after that commencement. 21 29 Application of items 22 and 23 22 The amendments made by items 22 and 23 apply in relation to an 23 adverse determination, made after the commencement of this item, to 24 reduce the rate of, or cancel, a person's service pension or income 25 support supplement for a day that occurs after that commencement. 26 30 Application of items 24 and 25 27 The amendments made by items 24 and 25 of this Schedule apply in 28 relation to a decision, made after the commencement of this item, 29 calculating the rate of service pension or income support supplement for 30 a day that occurs before or after that commencement. Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 35 [Page Break] Part 2 Rent certificates 1 2 Part 2--Rent certificates 3 A New Tax System (Family Assistance) (Administration) Act 4 1999 5 31 After subsection 29(2) 6 Insert: 7 (2A) Without limiting subsection (2), if the information or documents 8 required relate to: 9 (a) the claimant's eligibility for rent assistance; or 10 (b) the amount of rent assistance to be added in calculating the 11 claimant's rate of family tax benefit; 12 the Secretary may vary the determination so as to establish a 13 different rate of family tax benefit that does not have the amount of 14 rent assistance added for any day, on which the determination was 15 or will be in force, after the end of the last instalment period before 16 the variation takes place or from a later day determined by the 17 Secretary. 18 Note: The heading to subsection 29(2) is altered by omitting "Consequence" and substituting 19 "Consequences". 20 32 Subsection 29(3) 21 After "subsection (2)" (wherever occurring), insert "or (2A)". 22 33 Subsection 31(3) 23 Repeal the subsection, substitute: 24 Sections 27, 27A, 28, 28A, 28B, 30, 30A and 30B and subsection 25 29(2) variations prevail 26 (3) If: 27 (a) when the variation under this section takes place, a variation 28 of the determination is in force under section 27, 27A, 28, 29 28A, 28B, 30, 30A or 30B or subsection 29(2); and 30 (b) the variation under that section or subsection has effect for 31 any period when the variation under this section would have 36 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Rent certificates Part 2 1 the effect that the claimant is entitled to be paid family tax 2 benefit; 3 the variation under that section or subsection prevails over the 4 variation under this section. 5 34 Subsection 31A(3) 6 Repeal the subsection, substitute: 7 (3) If: 8 (a) when the variation under this section takes place, a variation 9 of the determination is in force under section 27, 27A, 28, 10 28A, 28B, 30, 30A or 30B or subsection 29(2); and 11 (b) the variation under that section or subsection has effect for 12 any period when the variation under this section would have 13 the effect that the claimant is entitled to be paid family tax 14 benefit; 15 the variation under that section or subsection prevails over the 16 variation under this section. 17 35 Subsection 31B(3) 18 Repeal the subsection, substitute: 19 (3) If: 20 (a) when the variation under this section takes place, a variation 21 of the determination is in force under section 27, 27A, 28, 22 28A, 28B, 30, 30A or 30B or subsection 29(2); and 23 (b) the variation under that section or subsection has effect for 24 any period when the variation under this section would have 25 the effect that the claimant is entitled to be paid family tax 26 benefit; 27 the variation under that section or subsection prevails over the 28 variation under this section. 29 Social Security (Administration) Act 1999 30 36 After section 81 31 Insert: Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 37 [Page Break] Part 2 Rent certificates 1 81A Rate reduction determination for non-compliance with notice 2 relating to rent assistance 3 (1) Without limiting section 81, if: 4 (a) an amount of rent assistance is being added to a person's 5 maximum basic rate of social security payment; and 6 (b) the person has been given: 7 (i) a notice under section 67 or 68 that requires the person 8 to give the Department a statement; or 9 (ii) a notice embodying a requirement under Division 1 of 10 Part 5; and 11 (c) any statement, information or document required by the 12 notice relates to: 13 (i) whether the person qualifies for rent assistance; or 14 (ii) the amount of the person's rent assistance; and 15 (d) the person does not comply with the requirement of the 16 notice; 17 the Secretary may determine that the person's rate of social 18 security payment is to be reduced by not adding the amount of rent 19 assistance to the person's maximum basic rate. 20 (2) The determination must also specify the new rate of social security 21 payment. 22 (3) Subsection (1) does not authorise the Secretary to make a 23 determination if: 24 (a) another provision of the social security law provides that the 25 rate at which the social security payment is payable to the 26 person is to be reduced by not adding the amount of rent 27 assistance to the person's maximum basic rate; and 28 (b) the determination would take effect at or after the time at 29 which the reduction referred to in paragraph (a) would take 30 effect. 31 37 At the end of Subdivision A of Division 7 of Part 3 32 Add: 33 85A Rate increase determination following rate reduction for 34 non-compliance with notice relating to rent assistance 35 (1) If: 38 Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 [Page Break] Rent certificates Part 2 1 (a) the Secretary reduces a person's rate of social security 2 payment under section 81A by not adding an amount of rent 3 assistance to the person's maximum basic rate; and 4 (b) the Secretary reconsiders the decision; and 5 (c) as a result of the reconsideration, the Secretary is satisfied 6 that, because of the decision, the rate at which social security 7 payment is being, or has been, paid is less than the rate 8 provided for by the social security law; 9 the Secretary must determine that the rate is to be increased to the 10 rate provided for by the social security law. 11 (2) The determination must also specify the new rate of social security 12 payment. 13 (3) The reconsideration referred to in paragraph (1)(b) may be a 14 reconsideration on an application under section 129 or a 15 reconsideration on the Secretary's own initiative. 16 38 Subdivision B of Division 9 of Part 3 (heading) 17 Repeal the heading, substitute: 18 Subdivision B--Determinations under section 78, 81A, 85 or 19 85A 20 39 Section 108 (definition of favourable determination) 21 Omit "or 85", substitute ", 85 or 85A". 22 40 Section 117 (definition of adverse determination) 23 After ", 81", insert ", 81A". 24 41 Paragraph 123(3)(a) 25 Omit "or 79", substitute ", 79, 81A or 85A". Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Bill 2005 No. , 2005 39